Feedstock loss from drought is a major economic risk for biofuel producers

High cost of technology is seen as the primary barrier to full commercialization of cellulosic biofuels. There is broad expectation that once conversion technology breakthroughs occur, policy support is only needed to accelerate cost reductions through “learning by doing” effects. In this study, we show that droughts pose a significant economic risk to biofuel producers and consumers regardless of the rate at which technology costs fall. We model a future switchgrass derived cellulosic biorefinery industry in Kansas based on spatially resolute historic (1996–2005) weather data, representing a rainfall regime that could reflect drought events predicted to occur throughout the U.S. Midwest by climatologists (Karl et al. (2009) U.S. Global Change Research Program USA). We find that droughts reduced modeled biorefinery capacity factors, on average, by 47%, raising biofuel production costs by 35% between a modeled dry and wet year. Interestingly, we find that two logical strategies to plan for drought; (1) building large biorefineries to source feedstock from a larger area and, (2) Storing switchgrass in good production years for use in drought years; are not very effective in reducing drought risks. Our findings should be of particular concern to low carbon fuel policies like California's Low Carbon Fuel Standard and the U.S. Second Renewable Fuel Standards (RFS2) whose costs of compliance may be much higher than expected.     

Techno-economic analysis of a bio-refinery process for producing Hydro-processed Renewable Jet fuel from Jatropha

HRJ (Hydro-processed Renewable Jet) conversion technology has been recently used to produce renewable jet fuel for commercial or military flights. In this study, a techno-economic analysis is carried out for evaluating the production of jatropha-derived HRJ fuel through a bio-refinery process. Each component of the chosen feedstock jatropha can be converted into valuable products. The bio-refinery process is split into 6 parts: (1) Fruit Dehulling; (2) Shell Combustion; (3) Oil Extraction; (4) Press Cake Pyrolysis; (5) Oil Upgrading; (6) Product Separation. The minimum jet fuel selling price (MJSP) from this fruit scenario is calculated to be $5.42/gal based on the plant capacity of 2400 metric tonne of feedstock per day. The co-products obtained from the process not only significantly deduct the production cost but make the entire process energy self-sustainable. We also discuss the oil scenario, which oil is the starting material and the process begins from Oil Upgrading section. The oil scenario offers the MJSP of $5.74/gal with lower capital but higher operating costs. The differences of MJSPs for fruit and oil scenarios are due to feedstock cost, refinery capital cost, co-product credits and energy cost. Based on the sensitivity analysis, the feedstock price, oil content, plant capacity, reactor construction and catalyst usage are important parameters that control the price of the produced fuel.     

Techno-economic evaluation of domestic solar water heating systems in India

The most wide spread thermal use of solar energy, so far, has been for water heating. Solar water heating systems have been commercialized in many counties in the world. Though the technical feasibility of domestic solar water heating systems (DSWHS) has long been established, their financial viability needs to be carefully examined, particularly in tropical countries with relatively lower annual capacity utilization and poor purchasing power of potential users.The potential number of Indian households who can invest in DSWHS have been estimated based on the income distribution in the country, the capital cost of solar water heating systems, interest rate charged on the loan provided for the purchase of DSWHS etc. Using the seasonal and diurnal variation of ambient temperatures at many locations in the country, the periods with annual hot water requirement have been identified. A simple framework for financial evaluation of DSWHS has also been presented. The results of some typical exemplifying calculations have been presented and discussed.     

Techno-economic and environmental aspects of the production of medium scale ligno-cellulosic ethanol under Egyptian conditions

As a result of actual pilot experimental data and guided by international and national reported estimates, this techno-economic study on a 20,000 ton/y ethanol production plant from rice straw has been conducted. The process essentially comprises preparation of the raw materials, alkaline pretreatment, simultaneous saccharification and fermentation (SSF) and dehydration. For the proposed capacity, costs have been estimated based on published information for the equipment as updated to 2013. Operating costs have been estimated according to experimental results of the research team and published information. Financial and sensitivity analyses have been conducted for optimistic and pessimistic scenarios for investment and operating costs and varying sales price of ethanol in the range $0.76/kg–$0.84/kg. Results indicate that positive present values have been obtained at the prevailing discount rate of 3%. The Internal Rate of Return (IRR) exceeds the discount rate considerably for the optimistic assumptions and is rather marginal for the pessimistic scenarios. In general, the process is considered technically and economically viable.     

A techno-economic analysis of decentralized electrolytic hydrogen production for fuel cell vehicles

Hydrogen from decentralized water electrolysis is one of the main fuelling options considered for future fuel cell vehicles. In this study, a model is developed to determine the key technical and economic parameters influencing the competitive position of decentralized electrolytic hydrogen. This model incorporates the capital, maintenance and energy costs of water electrolysis, as well as a monetary valuation of the associated greenhouse gas (GHG) emissions. It is used to analyze the competitive position of electrolytic hydrogen in three specific locations with distinct electricity mix: Vancouver, Los Angeles and Paris. Using local electricity prices and fuel taxes, electrolytic hydrogen is found to be commercially viable in Vancouver and Paris. Hydrogen storage comes out as the most important technical issue. But more than any technical issue, electricity prices and fuel taxes emerge as the two dominant issues affecting the competitive position of electrolytic hydrogen. The monetary valuation of GHG emissions, based on a price of $20/ton of CO₂, is found to be generally insufficient to tilt the balance in favor of electrolytic hydrogen.     

Hybrid solar water distillation system: A techno-economic study

The paper presents a techno-economic model to evaluate the performance of a hybrid solar still. For this, three different sources of auxiliary energy, namely electricity, kerosene, and liquefied petroleum gas (LPG) have been considered. To appreciate the model, numerical calculations have also been made using prevailing prices of different fuels in the Indian market for the climate of Delhi, India.     

Techno-economic assessment of a synthetic fuel production facility by hydrogenation of CO2 captured from biogas

In this study, a thermodynamic and economic analysis of a synthetic fuel production facility by utilizing the hydrogenation of CO₂ captured from biogas is carried out. It is aimed to produce methanol, a synthetic fuel by hydrogenation of carbon dioxide. A PEM electrolyzer driven by grid-tie solar PV modules is used to supply the hydrogen need of methanol. The CO₂ is captured from biogas produced in an actual wastewater treatment plant by a water washing unit which is a method of biogas purification. The required power which is generated by PV panels, in order to produce methanol, is found to be 2923 kW. Herein, the electricity consumption of 2875 kW, which is the main part of the total electricity generation, belongs to the PEM system. As a result of the study, the daily methanol production is found to be as 1674 kg. The electricity, hydrogen and methanol production costs are found to be $ 0.043 kWh^?1, $ 3.156 kg^?1, and $ 0.693 kg^?1, respectively. Solar availability, methanol yield from the reactor, and PEM overpotentials are significant factors effecting the product cost. The results of the study presents feasible methanol production costs with reasonable investment requirements. Moreover, the efficiency of the cogeneration plant could be increased via enriching the biogas while emissions are reduced.     

Techno-Economic Analysis for Production of L-Arabitol from L-Arabinose

The process design for synthesis of arabitol by hydrogenation of arabinose on a supported ruthenium catalyst is described. Aspen HYSYS software was used to design an arabitol production plant for subsequent generation of hydrogen through aqueous phase reforming (APR). The process design included hydrogen recycling requiring a flash drum and recompression. The total costs of arabitol were estimated to be substantially dependent on the feedstock costs and are closely related to arabinose feed cost. Feasible production of hydrogen using APR requires efficient extraction of hemicellulose from lignocellulosic biomass and subsequent hydrolysis.     

Techno-economic model of a solar still coupled with a solar flat-plate collector

In this paper, a techno-economic model has been developed for a solar still coupled with a flat-plate collector through a heat-exchanger. The model is based on the establishment of periodic steady-state conditions. The economic criterion used in the model is based on the least cost of a unit mass of distilled water evaluated from the life-cycle costing of the system. To evaluate the model, numerical calculations have been made corresponding to the climate of Delhi (India). It is concluded that the addition of a solar collector enhances the distillate yield; however, this is not always economical. This system therefore needs careful and economic system design.     

Economic analysis of solar systems

This paper presents a review of various economic strategies to evaluate solar energy systems. A techno-economic criterion for solar collectors has also been presented. The analysis has been illustrated with specific examples of solar drying and solar hot water systems.