Biodiesel Idea Interesting, But the Editorial Left Out a Key Production Fact

Dear Editor,
Your editorial on biodiesel caught my interest. Please be more
complete in your reporting.
Dear Editor,

Your editorial on biodiesel caught my interest. Please be more complete in your reporting. You state the capacity of this venture as 500,000 gallons. It makes a big difference if that is per hour, per day, per month or per year. I can guess that 500,000 gallons per day and selling for $1 per gallon wholesale the gross would be $182.5 million. This would be enough to cover capital return, $10 million payroll for the 100 employees (with overhead), raw material cost and operating expenses. Perhaps some profit, too.

I guess the question is how many stops at McDonald’s have to be made each day or week to pick up the used oil for processing and how much will be paid per gallon once it becomes a valuable commodity. Is there that much used oil available?

John Herren, Gilroy

Editor’s note: Our apologies, the editorial omitted what the story reported: “Biofuels Distribution, will open a production facility with a minimum capacity of 500,000 gallons a year somewhere in South County in the coming months,” according to John Varela.

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