Used cooking oil, unlike most other waste streams, has a very high energy value. In fact, this waste oil is converted to biofuel or biochemical (biodiesel, bioglycerine, HVO, SAF, bionaphtha, biopropane). As a restaurant operator or organisation, you can have used cooking oil collected for a fee through a licensed and certified collector, such as Quatra. But what exactly determines the amount of that reimbursement?
The price for used cooking oil and cooking fat depends on a number of factors:
Wholesale price of used cooking oil
Volume
Quality
Logistics
Choice of partner
Wholesale price of used cooking oil
The demand for used-up cooking oil as a raw material largely determines the price. As this price rises, so does the reimbursement for the cooking oil collected from catering establishments. If this price falls, then the reimbursement will also fall.
The wholesale price is determined by:
Production costs for converting the used cooking oil into biofuel or biochemical
Diesel price, kerosene price and energy price
Price of fresh vegetable and animal oil (soybean, rapeseed, sunflower, palm, animal fat)
Market sentiment: the outlook for the market, micro and macro-economic
Local blending mandates that determine what percentage of waste should be part of our energy mix
In addition, there are many factors under your own control that affect your reimbursement.
Volume
The more cooking fat or oil that can be collected in one stop, the less this collection costs, which may lead to a higher reimbursement for the used cooking oil. Annualised volume also has an impact. The higher the annual volume, the better the pricing conditions will be.
Quality
The oil collected that is converted into a raw material always contains impurities and moisture. The less moisture and impurities found in the cooking oil used, the lower the acidity and consequently the better the yield and the reimbursement can be.
Logistics
If collecting the stored oil means a lot of work for the employee because it is difficult to access, is in a cellar, etc., then a collection will take more time. This extra time may affect the calculated collection cost.
Choice of partner
If your partner not only provides collection, but also does the recycling itself, this turns into economies of scale, which in turn can translate into greater reimbursement.
Partner size also plays a role. The larger the partner's logistics network, the more efficiently it can schedule collections, reducing the logistics cost and allowing greater reimbursement to be paid.
Conclusion
A great many factors affect the price of used cooking oil. Above all, remember that you are partly dependent on the wholesale price, but as a customer you also determine some of it yourself.
Do you think price is important, but also fast and reliable service? Then a large partner will play to your favour.
Would you like any more information or a price quote? Please feel free to get in touch with us, with no obligation.
Why choose Quatra?
Large logistics network
In-house processing of used cooking oil
ISCC-certified and approved collector
Years of experience
Easily reachable and well-trained customer service