Using Soybean Oil as Feedstock:

According to a recent market analysis, if soybeans are used to produce biodiesel on a small market scale, the fuel will cost approximately $0.66/liter ($2.50/gallon). Biodiesel produced at this cost is generally marketed as an additive to conventional diesel fuel and mixed to produce various biodiesel blends. The high cost (virgin oil) feedstock, such as soybean oil, is the main reason why even B10 and B20 mixtures are not as price-competitive with conventional diesel fuel, as soybean-based biodiesel producers would like. It takes about 7.3 pounds of soybean oil, which costs approximately 20 cents per pound, to produce a gallon of biodiesel. Feedstock costs alone, therefore, could be as high as $1.50 per gallon for soy biodiesel.