Technoeconomic Analysis of Biorefinery Processes for Biofuel and Other Important Products

Abstract

In this chapter, a technoeconomic analysis of biofuels and other value-added chemicals production from lignocellulosic biomass is presented. Biofuel and other products derived from lignocellulosic biomass are also called second-generation products, which have energetic, economic, and environmental advantages in comparison to primary products such as starch or sugar. The conversion of feedstock into products is an energy-intensive process which requires various unit operations that require various forms of energy such as current, heat in the form of steam, cooling water, refrigeration, etc. The material and energy streams play a vital role in the estimation of process economy.

Technoeconomic evaluations allow organizations to decide on which projects to continue and how to optimize the design to maximize profits. In this chapter, we describe the technoeconomic modeling approach for the conversion of biomass into products. This approach is widely used in most of the case studies, although with a compact timeline and with further extrapolations relating to geographical areas. Discounted and nondiscounted cash flow probability criteria used for estimating rate of return, payback period, net present value, and minimum product selling price are discussed.