Quick Answer
Savings from using biodiesel can be calculated by comparing the cost of biodiesel to diesel fuel, then considering any tax incentives or rebates that may apply. For a typical diesel vehicle, biodiesel can save around 20-30 cents per gallon. This translates to significant annual fuel costs savings.
Calculating Fuel Costs
To calculate the savings from using biodiesel, begin by determining the cost difference between biodiesel and diesel fuel. For example, if the local price of diesel is $3.50 per gallon and biodiesel is $2.50 per gallon, the fuel cost savings is $1.00 per gallon. If a diesel vehicle consumes 10 gallons per day, the daily savings would be $10. Assuming an 8-hour workday, the annual fuel cost savings would be approximately $18,250 ($10 x 365 days).
Biodiesel Blends and Conversion Costs
When calculating the savings from biodiesel, consider the conversion costs, which vary depending on the type and quantity of the conversion. Biodiesel typically comes in blends of 5, 10, 20, or 100 percent. A 20 percent blend (B20) is a common starting point for diesel engines, and it often requires a minor engine tune-up. If the conversion cost for a B20 blend is $500, it would take approximately 3,750 gallons of fuel ($1,875, assuming $0.50 per gallon savings) to break even.
Considerations for Off-Grid Diesel Vehicles
Off-grid diesel vehicles often operate in remote areas with limited access to fueling stations. In these situations, the benefits of biodiesel are amplified due to reduced transportation costs and increased energy independence. When calculating the savings from biodiesel, also consider the environmental benefits, such as reduced greenhouse gas emissions and decreased dependence on fossil fuels. This can lead to lower operating costs and improved sustainability for off-grid diesel vehicles.
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