Economics biofuel production costs

The economics of biomass conversion needs to be considered as well, for the production costs of biofuels typically amount to 60-120 per barrel of oil equivalent. Influential factors include the cost of the biomass at the plant gate, the conversion efficiency, the scale of the process and the value of the product (e.g., fuel, electricity or chemicals). 

Various biomass sources as feedstock are a great opportunity and a major cost driver at the same time (Rude and Schirmer 2009). This refers mostly to the use of lignocellulosic biomass. In order to achieve economical and environmentally sustainable biofuel production, plant cellulose and hemiceUulose will have to be utilised more efficiently. This will require a better understanding of the cellulose-degrading multiprotein complex—the cellulosome (Kamm et al. 2011 Wackett 2008). 

Industrial processes cmivert low-value carbon into high value-added products. To be economically viable, the cost of the overall bioprocess must be significantly less than the selling price of the product. Many variables contribute to bioprocess costs, but for bulk biochemicals such as biofuels and industrial chemicals (which many isoprenoids are used for), the price of the feedstock is the primary cost driver (Rude and Schirmer 2009 WUlke and Vorlop 2008). Currently, carbohydrates from plant biomass are the most important carbon feedstock for fermentation. Plants accumulate simple sugars, cellulose or lipids, which bacteria can convert into energy, biomass and products. Popular model organisms exploited in industry (such as... 

With the growing industrial interest in the production of biofuels, the most important areas that need attention and research seem to be (i) scale-up, (ii) cost efficiency, (iii) better fuel properties, (iv) norms and standards for producers and end-users, (v) environment health and safety issues in biomass io el handling, transportation and usage, (vi) encouragement to implement thermo-chemical processes and applications, (vii) efficient utilization of byproducts for value-added chemical or material production, and (viii) information dissemination. The biomass conversion process can be economically viable if used in an integrated manner for generation of other marketable co-products in addition to the primary biofuel product, thus contributing to sustainable development. 

The authors stated that the sustainability assessment of biofuels shall be conducted through a multicriterial approach, and indicated a list of important issues to be investigated, such as the contribution to GHG emissions reduction land use and carbon stock changes induced by the growing demand for biofuels the efficiency of produced fertilizers the utilization of coproducts and residues the impact of biofuel production on water resources and soil, social, (e.g., food prices) and economic (i.e., production costs) issues. 

Typically, large scale processes are dominated by the cost of raw materials and the downstream processes are usually well understood. However, the treatment of effluent is a significant problem and can make an appreciable contribution to the cost of production. Surplus biomass, spent slurry, and either utilisation or disposal of feed residues represent problems that must be solved economically. This is the major problem associated with the production of biofuels. 

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