Monday, April 22, 2013

Economic Thoughts on How to Make Diesel Fuel From Vegetable Oil

(5) 21st Century Entrepreneur


·         Olanrewaju Afolayan
·         How to Make Diesel Fuel From Vegetable Oil
By Charles Mathewson 

Adding methanol (paint thinner) and lye (drain cleaner) to vegetable oil will produce diesel fuel--called biodiesel--but of exceedingly poor quality. Producing something you would want to put in an engine requires high-quality ingredients and precise measuring. Several communities exist online (see References and Resources below) to guide beginner diesel fuel brewers.
·         How to Make Diesel Fuel From Vegetable Oil
By Charles Mathewson 

Adding methanol (paint thinner) and lye (drain cleaner) to vegetable oil will produce diesel fuel--called biodiesel--but of exceedingly poor quality. Producing something you would want to put in an engine requires high-quality ingredients and precise measuring. Several communities exist online (see References and Resources below) to guide beginner diesel fuel brewers.
·         Like ·  · Unfollow Post · Yesterday at 12:13am

Olanrewaju Afolayan Pour the methanol into the 1/2-liter container using a funnel. The lye can be potassium (KOH) or sodium (NaOH) hydroxide. This recipe uses KOH. Measure it according to its purity: 5.8 grams for 85 percent pure, 5.5 grams for 90 percent, 5.3 grams for 92 percent. Pour the lye into the container using a clean funnel. Swirl the container until the mixture is clear. The result is methoxide.

Heat the oil in a pan until the thermometer shows 130 F. Pour it into the blender. Carefully add the methoxide and mix on low speed for 30 minutes. Pour it into one of the soda bottles and let settle for 12 to 24 hours.

Glycerine, a 20 percent byproduct, will separate and fall to the bottom. Decant the top 80 percent into a clean soda bottle. Don't allow any glycerine in.

Test the quality of the fuel. Pour 1/2 liter of water into it. Shake vigorously. Let it settle. If the fuel completely separates from the water within 30 minutes, it's good. Decant the fuel from the water into a clean soda bottle. But if it continues to look like mayonnaise, start over with more-precise measurements.

Wash any remaining impurities from the biodiesel. Washing is done by forcing air bubbles through the fuel or, easier for home brewers, mixing it with water. Pour 1/2 liter of water into the fuel. Roll the bottle on a flat surface until the two liquids...See More

Let the fuel settle. When it turns completely translucent, it's ready to use.

Ensure cleanliness of all equipment.

This recipe uses pure plant oil (PPO). It will work with waste vegetable oil (WVO), but with the added steps of filtering non-oil materials and titration to adjust the amount of lye.

This process uses two chemical...See More
·         
Bruce Birkett What is interesting and even more interesting about this recipe is what it perhaps contains underneath it with respect to any economy that inhibits, limits (or perhaps prohibits) specialization to make this product.

 I think of Portugal where a 23% VAT rate would immediately raise the cost to the consumer and pressure the manufacturer with a lower gross profit margin.

Also, likely the permitting would be impossible and then the government would rapidly increase the tax rate on the income earned to pay down the capital that was borrowed to fund the business.

And, oh yes and of course, the capital cost of setting up the operation is 23% more to have an expert make the bio-diesel than if everyone tries it themselves.

So, the end result is the Portuguese economy - starved for growth and bled for taxes. And, all the young can do is ask how to get a job out-of-the country.

Saturday, April 13, 2013

Portugal, Ireland Get More Time to Repay Loans - WSJ.com

Portugal, Ireland Get More Time to Repay Loans - WSJ.com


One wonders how growth can take place?

1) You earn a good living - so taxes are high and you can't accumulate capital or earn after-tax income to replace borrowed capital.

2) You want to borrow, but the banks are stuffed with sovereign debt and, of course, there are lots of special charges and taxes to further increase the net cost of capital.

3) You have a capital investment idea and are comparing countries. With VAT in Portugal at 23%, you investment costs have risen.

or,

You look at all the costs of other services you might want, attorneys, etc. - there again, they are having to pay at 23% VAT to the government.

Oh yes, labor costs are low - but, you need information type labor and, gee whiz, all those people have left the country to get better jobs and pay elsewhere.

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Could there be something wrong with the government's thinking?