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Understanding U.S. Biodiesel Industry Growth using System Dynamics Modeling

January 14th, 2007 | No Comments | Posted in Uncategorized

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Understanding U.S. Biodiesel Industry Growth using System Dynamics Modeling – Steven G. Bantz and Dr. Michael L. Deaton

Original paper here (2006) (PDF Format)

Abstract—The production capacity of the biodiesel industry is experiencing exponential growth. Demand is driven by environmental, social, and economic factors and helped along by government mandates and incentives. Suppliers are having difficulty keeping up with demand. The U.S. production capacity has grown by a factor of ten in the past two years, and between thirty and forty new plants are currently in or near construction phase. Continued strong growth of biodiesel production capacity depends on producer/supplier profitability, which will be influenced by several factors such as biomass oil feedstock prices, product/co-product prices, production technologies, and government regulations/incentives. How, why, and to what extent will the growth of the biodiesel industry be influenced by these factors? To explore possible answers to these questions, we describe the formulation of a system dynamics model of the U.S. biodiesel marketplace. The construction and use of this model will provide a framework for understanding the causal-loop/feedback structure and dynamics of this industry and how changes in key variables (e.g. feedstock price or change in government incentives) impact growth. Using system dynamics modeling, we envision and put into perspective the possible growth behavior scenarios for this industry over the next decade.

Oilgae – Oil & Biodiesel from Algae
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algOS – Biodiesel from Algae Open Source

About Oilgae – Oilgae – Oil & Biodiesel from Algae has a focus on biodiesel production from algae while also discussing alternative energy in general. Algae present an exciting possibility as a feedstock for biodiesel, and when you realise that oil was originally formed from algae – among other related plants – you think “Hey! Why not oil again from algae!”

To facilitate exploration of oil production from algae as well as exploration of other alternative energy avenues, Oilgae provides web links, directory, and related resources for algae-based biofuels / biodiesel along with inputs on new inventions, discoveries & breakthroughs in other alternative energy domains such as solar, wind, nuclear, hydro, geothermal, hydrogen & fuel cells, gravitational, geothemal, human-powered, ocean & wave / tidal energy. We hope Oilgae proves to be useful as a research information & inputs resources, and as a source of news & info for business & trade of algal oil, algal fuels & new alternative energy products – specially with regard to new feedstock / feedstocks, production processes and uses, and market info such as price / prices, data & statistics

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