Feasibility study - localised production of rapeseed oil for combustion

Abstract

1. A large potential market exists for rapeseed oil as a combustion fuel if it can be sold at a price of about £130/tonne in the UK, or possibly at higher prices in mainland Europe where different tax regimes apply.

2. Combustion of crude rapeseed oil should be feasible but preheating to 65°C will be necessary for most burner types. This will increase burner capital cost.

3. Localised extraction of rapeseed oil on farms is technically feasible. The variable cost of processing will be about £13/tonne of seed processed. The capital cost will be about £60/acre of rapeseed under cultivation.

4. An economic assessment is provided which concludes that investment in the equipment required for localised extraction of rapeseed will give a payback time of less than one year. A number of assumptions regarding subsidies and CAP rules are made in this assessment. These rules may be subject to change or variations in interpretation following the GATT negotiations.

Growers will have to judge for themselves the commercial viability of rapeseed oil extraction and combustion given the technical information provided in this report.