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Lack of supply and bad quality of what I could get is what put me out of the biodiesel business too. Up to the point I stopped, I had made over 1000 gallons on a home-built processor.
It is possible to build for less than $400, but it won't be pretty or easy. The nice cone-bottom tanks are the expensive bit, especially on the ready-made units. I also never messed with washing the biodiesel - If you don't add water to the mix, you don't have water to try and deal with later in the process. Clean the raw oil BEFORE doing anything to it, and your biodiesel will be clean too.
Don't want excess soap production? Well... You make soap by mixing the NaOH into the oil with WATER as the binder, not alcohol. So to avoid soap, don't have any water in the oil. I gravity filtered my oil for about a week (since I didn't have a flow centrifuge) and never pulled from the bottom 2 inches of the barrel. Oil floats on water and they don't mix well. Every once in a while, I would pump out that bottom sludge and do a real small batch to see what I had - had some glop, but not much.
The chemical process as I understand it is that the methoxide mix breaks the long molecule chains of the oil, and uses the alcohol molecules to plug the break creating shorter chains. This cuts the viscosity of the oil, so that it flows like diesel. The remaining chain is the glycerin, which sinks to the bottom b/c it is too heavy. When the reaction runs out of one of the three elements, it stops:
Not enough oil - I'm not sure this is even possible, b/c you should always be at about a 85% / 15% oil to alcohol. Not enough alcohol - The remaining lye in the mix will seek out any water, making soaps, and cloudy biodiesel. Not enough lye - The possibility of unreacted oil, but if you run with an excess of methanol (About 18-20% by volume to oil) then you should have plenty of alcohol to react the oil almost perfectly. As long as your measurement of the lye is close, the reaction should result successfully. If at the end of a few hours, you have smelly biodiesel (Smells like the alcohol) then you have an excess of methanol. This is good. Let it sit (or keep mixing it) until it quits smelling of the alcohol, OR try to distill the meth back out. I wasn't ever able to do that successfully, so I just let the excess evaporate away.
Let it settle for at least 5 hours, then drain from the bottom to get the glycerin out into a 5 gallon bucket until the color changes. Set that aside so gravity settle - You will get back even more bio from that! The rest... Filter it to 5 micron, and put it into clean storage for at least 24 hours. Don't pull from the very bottom of that tank just in case something else settles out, but its ready to go.
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