The purpose of this paper has been to assess the costs and profitability of producing oilseed rape (OSR) methyl esters and using them on own farmstead. The breakdown of costs involved in converting OSR into esters included the following stages: feedstock (raw material production, pressing oil from seeds and converting oil into fuel (estrification). The production costs were calculated per annum and the revenue derived from selling by-products was added. A field study was carried out on a farm covering 1,200 ha situated Warmia-Mazury Voivodship. The cost of making 1 liter of esters was 3.28 PLN, but when the by-product (rapeseed meal – pulp) was utilized, the cost dropped to 1.76 PLN. Production of esters based on purchased feedstock (the current price is 180 PLN·dt–1) is an unprofitable undertaking since the unit production cost is higher than the price of diesel oil. Ultimate values of the analyzed economic indices depended on the costs of growing feedstock (shaped by agritechnical treatments, type of seed material, fertilization rates and necessary plant protection treatments), the way the by-products are utilized (sale, valuable feed in animal nutrition, energy carrier). The biodiesel producer must take into account the alternative cost fuel production. The paper presents legal regulations pertaining to the production of biofuel for own use; additionally, costs of this alternative fuel versus conventional one were compared.

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