A report from the Korean Energy Economics Institute (KEEI) says, as early as 2011, biodiesel will cost less than its petroleum counterpart.

This story from the English-language version of Dong-A.com says the report is titled “Prospects on the Economic Feasibility of Biodiesel and Improving the Support System.” Right now in Korea, biodiesel costs about $.87 per liter to produce… compared to light oil at about $.64 per liter. But that is about to change:

It is estimated that the production cost of biodiesel will drop to ($.73) per liter by 2011, providing greater economic feasibility than light oil – the production cost of which will be ($.77). This prospect is based on the preposition that the price of oil will continue to rise, and that the amount of biodiesel supplied will increase from the current 0.5% of light oil consumption to 5.5% gradually by 2017.

“Biodiesel will become economically feasible between 2011 and 2015,” says Bae Jeong-hwan, a researcher at KEEI. “It is necessary to maintain its exemption from transportation taxes until 2010, and then begin lifting it gradually from 2011.”

Another report by KEEI says that ethanol won’t stay economically feasible if the price of a barrell of oil drops below $50.