China leading palm oil mill plant machine manufacturer and supplier

The core economic value of using palm oil for biodiesel lies in its high oil yield, stable raw material supply, strong policy support, substantial profits from by-products, and additional carbon gains. In Southeast Asia, it's processed as B50, and domestically it's exported and blended, with a net profit per ton typically ranging from 800 to 1200 yuan, far exceeding that of ordinary refined palm oil.

I. Raw Material Costs: Palm Oil is the "King of Cost-Effectiveness"

1. Consumption and Cost per Ton (Transesterification, BD100)

Crude Palm Oil CPO: 0.98 tons, CIF price 4800–5200 RMB/ton → 4700–5100 RMB

Methanol: 0.12 tons, 3000 RMB/ton → 360 RMB

Catalyst (NaOH): 20 RMB

Water/Electricity/Steam/Labor/Depreciation: 250–350 RMB

Total Total Cost: Approximately 5330–5850 RMB/ton

2. Comparison with Other Raw Materials (2026)

Gutter Oil/UCO: Cost 4500–5000 RMB, but unstable supply, fluctuating quality, and high refining costs

Soybean Oil: 6500–7000 RMB, too expensive, poor economic viability

PFAD (Palm Oil Refining By-product): 3500–4000 RMB Palm oil (containing PFAD) is currently the most balanced raw material: cheap, stable, and easily scalable. It offers the lowest cost and environmental benefits, but its production capacity is limited. II. Main Product Profit: Stable BD100 Price Spread and Policy Support.

1. Selling Price (May 2026)

Domestic BD100 Ex-factory Price: 6200–6800 RMB/ton

Export to EU (including ISCC certification): 7200–7800 RMB/ton (Premium of 1000 RMB+)

Indonesian B50 Domestic Sales: 6500–7000 RMB/ton (Mandatory procurement, no worries about sales)

2. Net Profit per Ton (excluding by-products)

Domestic: 6500 – 5600 = 900 RMB/ton

Export to EU: 7500 – 5600 = 1900 RMB/ton (High profits after certification)

Indonesian B50: 6800 – 5200 = 1600 RMB/ton (Local raw materials are cheaper)

3. Scale Profit (Small-scale plant: 20 tons/day, annual output...) 6000 tons)

Annual net profit: 6000 × 900 = 5.4 million yuan

Payment period: 1.5–2 years

By-products:

1. Crude glycerin (core by-product)

Output: 0.12 tons/ton biodiesel

Selling price: 3500–4000 yuan/ton

Value: 420–480 yuan/ton diesel

After refining (95%→99.5%): Pharmaceutical grade glycerin 7000–8000 yuan/ton, profit doubled

2. Palm kernel oil (linked value)

Palm oil plant supporting: kernel → palm kernel oil (12000 yuan/ton), used as a substitute for cocoa butter and daily chemicals

Added value: 50%+ higher than ordinary palm oil

3. Pomace/Palm kernel meal

For high-protein feed: 2000–2500 yuan/ton

Organic fertilizer: 1500 yuan/ton

4. PFAD (Refining By-product)

Directly used for biodiesel: Cost reduction of 30%, net profit per ton can reach 1500 RMB +

→ Main product + by-product = comprehensive net profit per ton 1300–1800 RMB, far higher than simply selling palm oil (300–500 RMB/ton).

Direct Palm Oil Sales vs. Biodiesel Production

Model | Net Profit per Ton | Payback Period | Market Stability | By-product Revenue

Selling Refined Palm Oil | 300–500 RMB | 3–4 years | Average (high price fluctuations) | Low (only a small amount of soapstock)

Making Biodiesel | 800–1200 RMB | 1.5–2 years | High (policy support) | High (glycerin + PFAD + palm oil)

→ Biodiesel is the "ultimate high-value-added solution" for palm oil.