1 s2.0 S0016236122028460 Main
1 s2.0 S0016236122028460 Main
1 s2.0 S0016236122028460 Main
Fuel
journal homepage: www.elsevier.com/locate/fuel
A R T I C L E I N F O A B S T R A C T
Keywords: The production of multiple products, in an integrated manner, encourages the full valorization of biomass
Multi-product feedstock and reduces waste streams. This may improve the economic outlook of the biorefinery and provide a
Biorefinery hedge for investors. There is limited understanding of the techno-economics of an integrated, multi-product
Techno-economic assessment
biorefinery. This study addresses this gap. In this study, we investigated an integrated, multi-product bio
Ethanol
refinery. In addition to bio-oil, the valuable products ethanol and hydrogen are produced from fast pyrolysis by-
Fermentation
Pyrolysis products. We developed process models for bio-oil, ethanol, and hydrogen production from spruce woodchips in
an integrated syngas fermentation and fast pyrolysis plant. Six scenarios set against a base fast pyrolysis plant
were investigated, and the economic performance of each scenario was evaluated based on the rate of return. The
scenarios differ in terms of the use of the non-condensable gases and the type of external fuel used for process
heat. In every scenario, biochar is used for ethanol production and bio-oil is assumed to be a final product. The
base case had a return rate of 7.0%, while the return rate ranged between 7.46 and 13.01% among the six
scenarios. The scenario producing hydrogen from hydrogen-rich non-condensable gases and ethanol from bio
char was the most profitable. The profitability was found to be most sensitive to product prices, capital cost, and
feedstock cost. The study’s results show that an integrated, multi-product approach to biorefining has the po
tential to improve the economics of biorefineries and biofuel production.
* Corresponding author at: 10-263 Donadeo Innovation Centre for Engineering, 9211-116 St, Edmonton, AB T6G 2H5, Canada.
E-mail address: Amit.Kumar@ualberta.ca (A. Kumar).
https://doi.org/10.1016/j.fuel.2022.126022
Received 2 June 2022; Received in revised form 30 August 2022; Accepted 13 September 2022
Available online 24 September 2022
0016-2361/© 2022 Elsevier Ltd. All rights reserved.
T. Giwa et al. Fuel 332 (2023) 126022
thermochemical technologies for biomass valorization. In gasification, predominantly from grains [20], though lignocellulosic feedstock is also
the production of multiple products relies solely on the conversion of the used. Both rely on the use of fermentable substrates derived from
syngas generated during the gasification process. In the fast pyrolysis biomass. However, this approach cannot be used to derive ethanol from
process, biomass is heated in an inert atmosphere to a temperature in the biochar. The gasification of biochar, however, allows ethanol to be
range of 400–550 ◦ C, producing bio-oil, non-condensable gases and produced from biochar as converts it to fermentable gases. The syngas
biochar [6]. In the case of pyrolysis (fast pyrolysis in particular), several produced through biochar gasification can then be used for the synthesis
products have been derived from bio-oil, the major product of interest in of ethanol. This synthesis can be either thermochemical or biochemical.
the fast pyrolysis process [6]. Bio-oil has been produced with the aim of Biochemical processes like syngas fermentation have some advantages
replacing heavy fuel oil (HFO) or coal, light fuel oil (LFO), gas oil, and over the thermochemical process. While fermentation occurs at near
vacuum gas oil [7]. Because bio-oil can significantly reduce carbon ambient temperature and pressure, the thermochemical process requires
emissions, the market for bio-oil, especially for use in boilers or furnaces elevated temperature and pressure [21,22]. Also, stringent gas cleaning
(in place of natural gas and heavy and light fuel oils), gas turbines, and is required in the thermochemical process as the catalysts are prone to
diesel engines, is expected to grow rapidly in the coming years (with deactivation by even very small levels of impurities in the gas stream.
North America dominating) [8]. Bio-oil is also likened to crude-oil and is Microbes, on the other hand, can cope under higher levels of impurities.
subjected to further processing for the simultaneous production of gas Another advantage to the use microbes in general is that there is no fixed
oline and diesel [9,10]. Another emerging approach is to fractionate the ratio for H2/CO as there is in the catalytic process [22].
bio-oil into different fractions based on the functional groups and po The gasification-syngas fermentation process has been modelled in
tential application and then further process each fraction into valuable the existing literature. Pardo-Planas et al. [23], using switchgrass as
end products [11]. Although this simultaneous production of gasoline feedstock, studied the impacts of the gas uptake rate and ethanol con
and diesel from bio-oil is a multi-product approach, it focuses solely on centration achieved in the fermentation unit on the volume of the
bio-oil and neglects the potential to valorize pyrolysis by-products into fermenter and the energy requirement of the system, respectively. De
valuable end products. Instead, the non-condensable gases and, in most Medeiros et al. [24] carried out the modelling and economic analysis of
cases, biochar produced in the fast pyrolysis process, in addition to bio- an energy self-sufficient gasification-syngas fermentation process with
oil, are usually used to generate process heat, although there are other sugarcane bagasse as feedstock. Ro et al. [25] assessed the economics of
suggested uses for biochar such as soil amendment [12], activated car ethanol production from syngas derived from wood chips, corn stover,
bon production [13], and carbon nanomaterial production [14,15]. wheat straw, swine manure mixed with wheat straw, and oil seed rape
However, these applications are not strategically integrated into the meal. In addition to a techno-economic assessment, Roy et al. [21]
existing biorefinery. Valuable products like ethanol, which fits strate calculated the GHG emissions of the process. They considered mis
gically into the product portfolio of a biorefinery, can be produced from canthus as the feedstock with four pretreatment options for an ethanol
biochar. Non-condensable gas streams are hydrogen-rich and can be production rate of 22 million liters per year. Benalcazar et al. [26]
purified to hydrogen. Converting pyrolysis by-products to value-added conducted environmental and techno-economic assessments of ethanol
products encourages new investments in pyrolysis plants, which face production from sugarcane bagasse, pine wood, corn stover, and euca
challenges due to the lack of standards for pyrolysis by-products [16]. lyptus wood in three countries, the Netherlands, Brazil, and the United
As an energy carrier hydrogen is very versatile, as it can be stored, States. Although these studies assessed the gasification-syngas fermen
used, and transported as gas or liquid and can produce electricity or fuel tation process from technical, economic, and environmental perspec
[17]. Hydrogen has many applications and is used globally in ammonia tives, they all considered standalone systems. There is no study, to the
production oil refining, chemical and fertilizer production, steel best of the authors’ knowledge, that has considered ethanol production
manufacturing, metallurgy, food processing, etc. Experts have advised from the fermentation of biochar-derived syngas integrated with fast
that meeting the goals of the Paris Agreement is not possible without pyrolysis.
green hydrogen, as eliminating emissions in some sector is difficult. The In this study, biochemical and thermochemical technologies were
infrastructure for hydrogen delivery exists in parts of the world such as integrated to increase the products in the portfolio of the fast pyrolysis
the U.S., where there are hydrogen pipelines, which is another advan biorefinery as a potential way to achieve more efficient use of the
tage for the large-scale production of hydrogen [17]. original biomass. Different scenarios of this integration were assessed to
Ethanol is versatile; it can serve as a solvent, beverage, antifreeze, produce ethanol and hydrogen from the non-condensable gases and
and fuel. Perhaps the most important application is as fuel. Today biochar, in addition to bio-oil, by evaluating the economic implications
ethanol serves as a blend for gasoline and improves its octane number, and comparing them with the conventional fast pyrolysis process. The
replacing tetraethyl lead. Apart from rising consumption of alcoholic following objectives were set:
beverages, several countries have mandated the use of ethanol in
transportation as a clean fuel, and this has led to a significant growth in • To develop process models of an integrated, multi-product bio
its demand [18,19]. The production of ethanol from biomass sources is refinery producing bio-oil, ethanol, and hydrogen.
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T. Giwa et al. Fuel 332 (2023) 126022
• To develop a techno-economic model to assess the rate of return for sub-scenarios each) were developed to carry out this assessment. The
each scenario and compare the results with conventional fast feedstock considered in this study is spruce woodchips and is processed
pyrolysis. at a rate of 2000 dry tonnes/day, in all cases. To have a good reference
• To assess six scenarios that consider different uses of non- point for the comparison of the pathways developed, the conventional
condensable gases (NCGs) and two types of external fuel (natural pyrolysis process (the base case) was also modelled. Fig. 1 (a) is a
gas and woodchips). simplified process flow diagram of the base case. The feedstock is dried
• To perform sensitivity analysis to understand the impact of input and ground to meet the requirements for pyrolysis. During pyrolysis,
parameters on the rate of return. bio-oil, biochar, and NCGs are produced. Bio-oil is considered a final
• To carry out uncertainty analysis to understand the effect of the product. NCGs are burned to satisfy process heat requirements, and
variability of the most impactful parameters on the rate of return. some of the produced biochar is used to supplement the heat demand. In
scenario 1, the production of ethanol from biochar through gasification
2. Method and subsequent syngas fermentation was assessed. NCGs are considered
in this scenario as fuel, and an external fuel (either natural gas or
This section discusses the approach used in this study. The scenarios woodchip) is used as a supplement. In every scenario, “a” indicates that
and the unit processes involved in the process modelling are described. natural gas is the supplemental fuel and “b” that woodchip is the sup
plemental fuel. The process flow diagram of scenario 1 is shown in Fig. 1
(b). Scenario 2 (see Fig. 1 (c)) is like scenario 1 in terms of the use of
2.1. Scenario description biochar, but here, the NCGs are combined with the syngas generated
from the gasification of biochar to produce more ethanol. Scenario 3 (see
This study examines the potential to improve the economics of the Fig. 1 (d)) also uses biochar for ethanol production like scenarios 1 and
pyrolysis process. Six process scenarios (three major scenarios with two
Fig. 1. (a) Simplified process flow diagram of the base case (conventional fast pyrolysis process), (b) Simplified process flow diagram of scenario 1 (in addition to
bio-oil, ethanol is produced from biochar), (c) Simplified process flow diagram of scenario 2 (in addition to bio-oil, ethanol is produced from biochar and NCGs), and
(d) Simplified process flow diagram of scenario 3 (in addition to bio-oil, ethanol is produced from biochar and hydrogen is produced from NCGs).
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T. Giwa et al. Fuel 332 (2023) 126022
Fig. 1. (continued).
2; however, the NCGs are purified for hydrogen production. Table 1 2.2. Description of process units and modelling
summarizes the scenarios.
The process modelling carried out in this study was done in Aspen
Plus and has three sections. The first is the modelling of the conventional
fast pyrolysis process to yield bio-oil (the main product), NCGs, and
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T. Giwa et al. Fuel 332 (2023) 126022
Table 1 The experimental yields used for this model are taken from an earlier
Description of scenarios. study [28]. The outputs of the pyrolyzer are volatile components and
Scenario Description biochar. The volatile component contains bio-oil compounds, which are
ID a liquid at room temperature, and NCGs, which are a gas at room tem
Base case Conventional fast pyrolysis process for production of bio-oil, biochar perature. These volatile compounds and the solid biochar particles were
and NCGs separated with the help of cyclones with a solid removal efficiency of 90
1a NCGs are combusted to generate process heat, and natural gas is used %. To extract the bio-oil, the volatile stream first needs to be cooled.
as supplemental fuel Cooling the volatiles from 490 ◦ C to 50 ◦ C condenses the bio-oil com
1b NCGs are combusted to generate process heat, and biomass is used as
supplemental fuel
pounds. This extracted heat was used to generate some of the steam
2a NCGs are converted to bioethanol, and natural gas is the sole fuel for required for the gasification process. Bio-oil is collected and stored, and
process heat generation NCGs are used for heat generation, ethanol production, or hydrogen
2b NCGs are converted to bioethanol, and biomass is the sole fuel for production, depending on the biorefinery scenario.
process heat generation
3a Hydrogen is produced from the NCGs, and natural gas is the sole fuel
for heat generation 2.2.3. Biochar gasification
3b Hydrogen is produced from the NCGs, and biomass is the sole fuel for The gasification of biochar was modelled through Gibbs energy
heat generation minimization. An RGibbs reactor was used to simulate the gasification
process and predict syngas composition. The gasification temperature
was 800 ◦ C and atmospheric pressure was considered [31]. The steam-
biochar. The pyrolysis section of the model, which is common to all
to-char ratio was set such that biochar conversion was 80 %, as re
scenarios, consists of feedstock pretreatment, the pyrolysis unit, and
ported by Chaudhari et al. [31]. Gasification was assumed to be carried
product separation. In this study, one of the major goals is to use the
out in an indirectly heated dual fluidized bed gasifier. This gasifier
biochar to produce ethanol that can be sold, thereby improving the
configuration has two reactors, a gasification reactor, and a combustion
economics of bio-oil production. The production of ethanol from biochar
reactor. Steam gasification, an endothermic reaction, takes place in the
is the second section of the modelling. This section, also common to all
gasification reactor. The heat required for steam gasification is supplied
scenarios, consists of biochar gasification to produce syngas, syngas
by the second reactor. A solid heat carrier, olivine, circulates between
fermentation to produce ethanol, and product separation for the con
the two reactors. The olivine circulation rating was taken as 12.3 kg/kg
centration of ethanol. The last section is the purification of pyrolysis gas
of bone-dry feed (biochar), as reported in an earlier study [32]. Biochar
or NCGs. For scenario 1, NCGs were burned in a combustor along with
is a non-conventional compound in Aspen Plus. Hence, it was specified
supplemental fuel to provide process heat. For scenario 2, NCGs were
as a non-conventional compound in the process model using its ultimate
mixed with biochar syngas to be fermented. For scenario 3, the sepa
analysis as in an earlier study [33].
ration of hydrogen from the NCGs using a pressure swing adsorption
system was considered. To ensure that the modelling developed in this
2.2.4. Syngas fermentation
study is accurate, each process unit was developed and validated with
Microorganisms capable of fermenting syngas are known as ace
results found in other studies. Gasification, syngas fermentation, and
togens [34]. Acetogens are anaerobic micro-organisms (including bac
ethanol purification were validated with Medeiros et al.’s work in terms
teria and archaea) that use the acetyl-CoA pathway to fix CO2 [35] and
of ethanol yield [24]. The rest of the unit processes including feedstock
other substrates like glucose [36]. The products from syngas fermenta
pretreatment and pyrolysis units were validated with the study by Patel
tion generally fall into two major categories: carboxylic acids and cor
et al. in terms of products (biochar, bio-oil, syngas) yield and compo
responding alcohols. Usually, carboxylic acid is readily produced, unlike
sition [6]. The following sections discuss the process units considered in
alcohol. Acetic acid, ethanol, butyric acid, butanol, hexanoic acid,
this study.
hexanol, and 2,3-butanediol can be produced from syngas fermentation
[34]. Of these, acetic acid and ethanol are the prominent ones [34]; both
2.2.1. Feedstock and pretreatment
are readily produced by many acetogens [36]. The production of ethanol
The feedstock studied here is spruce wood chips. Spruce is an
from syngas is shown by Eqs. (1) and (2), as given by Pardo-Planas et al.
important tree species globally and in Canada; it makes up about 47 % of
[23].
Canada’s total forest inventory [27]. The ultimate and proximate ana
lyses of the feedstock are taken from an earlier study [28]. 6CO + 3H2 O = C2 H5 OH + 4CO2 (1)
The particle sizes of the as-received feedstock is not suitable for the
pyrolysis process and contains 50 % moisture [28]. For fast pyrolysis, it 6H2 + 2CO2 = C2 H5 COOH + 3H2 O (2)
is recommended that the particle size is at most 2 mm [29]; this size was
The fermentation process was modelled, with Eqs. (1) and (2) as the
adopted in this study. Consequently, the feedstock was ground in a mill
stoichiometric equation inputs. The process conditions for syngas
to a particle size not more than 2 mm. The grinding operation was
fermentation were based on experimental data from the work by Gaddy
modelled using the crusher block in Aspen Plus. The grinding energy
et al. [37], who used Clostridium ljundhalii as the acetogen. Their work
consumption was taken as 33 kWh/t [30]. The grinding operation is
considered 20 scenarios with different process conditions to see which
followed by drying, modelled using a RStoic reactor and a flash sepa
process would produce the most ethanol. This study is based on the
rator. Rogers and Brammer recommend that the moisture content of the
approach that recirculates the bottom product (i.e., acetic acid and
feed entering the pyrolysis reactor be less than 10 wt% [29]. Drying the
water) of the ethanol purification stage into the fermenter, as demon
feedstock using the heat recovered from the flue gas was done to a 7 wt%
strated in earlier work by Gaddy et al. [38]. This approach eliminated
moisture content.
the need to separate the acetic acid produced during fermentation; the
water stream containing acetic acid can be recycled. Recycling the acetic
2.2.2. Pyrolysis
acid led to an equilibrium concentration in the system and thus the
The modelling of the pyrolysis process is based on previous experi
microbes did not produce more acetic acid. DeMedeiros et al. [24] used a
mental work conducted on the pyrolysis of spruce wood chips in a batch
similar approach. Off-gas from the fermentation unit was combusted to
fluidized bed pyrolysis reactor [28]. The process was carried out at a
generate process heat.
temperature of 490 ◦ C, under atmospheric pressure. The pyrolysis
reactor was modelled using the RYield block. This block requires py
2.2.5. Ethanol separation and purification
rolysis product yield and, with it, estimates process energy consumption.
The ethanol produced in the fermentation reactor is highly diluted
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T. Giwa et al. Fuel 332 (2023) 126022
6
T. Giwa et al. Fuel 332 (2023) 126022
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T. Giwa et al. Fuel 332 (2023) 126022
Table 8
Capital cost (costs are in million $) for a 2000 tonne per day biorefineries.
Base case Scenario 1a Scenario 1b Scenario 2a Scenario 2b Scenario 3a Scenario 3b
Total equipment cost $27.95 $54.19 $54.75 $72.08 $73.23 $71.72 $72.78
Total installed cost $84.41 $163.65 $165.34 $217.67 $221.14 $216.59 $219.80
Indirect cost $24.88 $48.23 $48.73 $64.15 $65.17 $63.83 $64.78
Total indirect cost $109.28 $211.88 $214.07 $281.82 $286.31 $280.41 $284.58
Contingency $21.86 $42.38 $42.81 $56.36 $57.26 $56.08 $56.92
Fixed capital investment $131.14 $254.26 $256.88 $338.18 $343.57 $336.50 $341.50
Location cost $13.11 $25.43 $25.69 $33.82 $34.36 $33.65 $34.15
Total capital investment $144.25 $279.69 $282.57 $372.00 $377.93 $370.15 $375.65
Fig. 2. Capital cost distribution of the base case and biorefinery scenarios (Scenario 1a: Ethanol from biochar; natural gas for supplementary heat | Scenario 1b:
Ethanol from biochar; woodchips for supplementary heat | Scenario 2a: Ethanol from biochar and NCG; natural gas for supplementary heat | Scenario 2b: Ethanol
from biochar and NCG; woodchips for supplementary heat | Scenario 3a: Ethanol from biochar; Hydrogen from NCG; natural gas for supplementary heat | Scenario
3b: Ethanol from biochar; Hydrogen from NCG; woodchips for supplementary heat).
about 39 % and 30 %, respectively. It also accounts for about 30 % of the are burnt instead. Furthermore, scenarios 1 and 3 share similar dollar
total capital cost in scenario 2. However, in scenario 2, the cost of the values for the fermentation and ethanol purification units (because they
fermentation unit is the largest cost contributor at about 42 %. The cost process the same amount of syngas), while those of scenario 2 are about
of the fermentation unit is also significant in scenarios 1 and 3, ac double the costs of scenarios 1 and 3.
counting for 28 % and 21 %, respectively. The fermentation cost is
higher (double) in scenario 2 than in scenarios 1 and 3 because a larger 3.2.2. Operating cost
amount of gases is processed into ethanol. Both scenarios 1 and 3 have a The total operating cost for each case is constituted by fixed and
gas input of 648 m3/min compared to 1323 m3/min in scenario 2. variable operating costs. Fig. 3 gives the operating costs of the scenarios
However, for scenario 3, the cost of the PSA unit is higher than that of and base case. It should be noted that the operating costs presented are
the fermentation unit, constituting nearly 24 % of the capital cost of for the first year of biorefinery operation. However, a yearly escalation
scenario 3. This high cost of the PSA unit is largely caused by the in each operating cost category was considered in the discounted cash
compression requirement of the PSA process, which needs expensive flow analysis.
compressors. As shown in Fig. 3, the base case has the lowest operating cost. This is
It is important to note the cost similarities and differences in the because in the six biorefinery scenarios there are additional costs to
scenarios. As shown in Fig. 2, the dollar contribution values of the py operate the extra equipment. The total delivered feedstock cost is the
rolysis and gasification units are the same in all scenarios. The pre parameter that most influences the operating cost; it is responsible for
processing cost values are the same in all cases where natural gas is about 74 % of the base case. The percentage contribution of the feed
burnt; however, it is slightly higher in the scenarios where woodchips stock cost in the operating cost is between 51 % and 64 % in the
8
T. Giwa et al. Fuel 332 (2023) 126022
Fig. 3. Base case and scenarios operating costs (Scenario 1a: Ethanol from biochar; natural gas for supplementary heat | Scenario 1b: Ethanol from biochar;
woodchips for supplementary heat | Scenario 2a: Ethanol from biochar and NCG; natural gas for supplementary heat | Scenario 2b: Ethanol from biochar and NCG;
woodchips for supplementary heat | Scenario 3a: Ethanol from biochar; Hydrogen from NCG; natural gas for supplementary heat | Scenario 3b: Ethanol from biochar;
Hydrogen from NCG; woodchips for supplementary heat).
Fig. 4. Internal rate of return of biorefinery scenarios (Scenario 1a: Ethanol from biochar; natural gas for supplementary heat | Scenario 1b: Ethanol from biochar;
woodchips for supplementary heat | Scenario 2a: Ethanol from biochar and NCG; natural gas for supplementary heat | Scenario 2b: Ethanol from biochar and NCG;
woodchips for supplementary heat | Scenario 3a: Ethanol from biochar; Hydrogen from NCG; natural gas for supplementary heat | Scenario 3b: Ethanol from biochar;
Hydrogen from NCG; woodchips for supplementary heat).
9
T. Giwa et al. Fuel 332 (2023) 126022
biorefinery scenarios. Following the feedstock cost, the costs of main has slightly lower capital and operating costs and higher revenue than
tenance and utilities are influential. The maintenance cost is more sig scenario 2. However, both scenarios 2 and 3 have higher profitability
nificant than the utility cost in the cases where natural gas is burnt, than 1, despite having higher capital and operating costs. This higher
while the cost of utilities is more significant when the fuel of choice is profitability is a result of higher net revenue.
biomass. The potential of the base case fast pyrolysis process matching the
The lower operating cost of the “a” sub-scenarios compared to the return rate of scenario 3a, in which ethanol and hydrogen were pro
“b” sub-scenarios is because natural gas is cheaper and has a higher duced in addition to bio-oil, was assessed, based on the sales of biochar.
heating value than biomass. The difference in operating costs for sub- It was derived that the base case could match this profitability of 13.01
scenarios “a” and “b” for all the scenarios considered is less pro % if biochar could be sold at $236/tonne. Hence, at this price point and
nounced for scenario 1 than scenarios 2 and 3. The cost differences above, the base case fast pyrolysis process is preferable to scenario 3a.
between “a” and “b” in all scenarios are about $7.61 M, $15.08 M, and Shabangu et al. [62] reported a breakeven selling price for biochar of
$13.01 M, for scenarios 1, 2, and 3, respectively. This cost difference is $280/tonne for a slow pyrolysis plant co-producing methanol at a dis
more pronounced in scenarios 2 and 3 because both cases are more count rate of 10 %. Although this was slow pyrolysis, their product
energy-intensive than scenario 1. distribution is near that of fast pyrolysis. It could be expected that at a
similar product distribution and discount rate, the result obtained in this
3.2.3. Rate of return study is reasonably within Shabangu et al.’s reported cost. Dickson et al.
The profitability of each scenario was also studied using rate of re [63] also cited biochar breakeven prices of $173-$320/tonne. The bio
turn as the metric. The rate of return for each scenario is presented in char market price is between $726 and $3,080 in the US market, the
Fig. 4. Generally, compared to the base case, the scenarios studied are European market, and globally [64–66]. These high prices seem
more profitable. This indicates that there is an economic benefit to attractive and suggest that biochar should be sold instead of further
producing valuable products from non-condensable gases and biochar. It processing it. However, the market for biochar is small. Market research
is important to point out the trend related to the fuel type. As shown, the puts the 2018 global demand for biochar at about 350 kt per year [67],
“a” scenarios, which use natural gas as a fuel, are more profitable than which could be easily met by four fast pyrolysis plants of the capacity
the “b” scenarios, in which woodchips are used as fuel. This difference in assumed in this study. The high market price may be due to the lower
profitability between the “a” and “b” scenarios is an indication of the scale of production, and prices should decline as supply gets higher.
lower projected net income (before taxes and depreciation) associated
with the use of woodchips for the same projected revenue. For instance, 3.2.4. Influence of scale on the capital cost per unit of processed biomass
the second year’s projected net incomes (before taxes and depreciation) The effect of capacity on the capital cost per unit of biomass pro
for scenario 1 with natural gas and woodchips as fuel are $12.5 and $4.6 cessed was assessed in this study. Fig. 5 gives the plot of the capital cost
million, respectively. It was also seen that the difference in the profit as a function of plant capacity for scenario 3a. Scenario 3a was chosen
ability of the “a” and “b” scenarios is higher in scenarios 2 and 3. These for brevity as it is the most profitable scenario. The capital cost increases
differences stem from the higher operating cost associated with burning with capacity, as expected. However, a diminishing trend in the increase
woodchips than natural gas, as pointed out in Section 2.2.2.2. was observed at a scale factor of 0.598. This diminishing trend is seen in
Furthermore, when natural gas is burnt, scenario 3 is the most the plot of capital cost per unit of processed biomass vs capacity, as
profitable scenario, with a return of about 13 %. Likewise, when shown in Fig. 6. The capital cost per unit capacity reduces as the capacity
woodchips are burnt, scenario 3 is the most profitable scenario. The increases, showing the presence of economies of scale. However, the
higher profitability of scenario 3 over scenario 2 is because scenario 3 slope of the curve decreases as the capacity is increased, indicating a
Fig. 5. Determination of scale factor for scenario 3a (scenario where ethanol is produced from biochar, hydrogen is produced from NCG, and woodchips is used for
supplementary heat supply).
10
T. Giwa et al. Fuel 332 (2023) 126022
Fig. 6. Influence of capacity on capital cost for scenario 3a (scenario where ethanol is produced from biochar, hydrogen is produced from NCG, and woodchips is
used for supplementary heat supply).
Fig. 7. Sensitivity analysis of scenario 3a (scenario where ethanol is produced from biochar, hydrogen is produced from NCG, and woodchips is used for supple
mentary heat supply).
11
T. Giwa et al. Fuel 332 (2023) 126022
diminishing return with added capacity. volume inside a single reactor are essential. In the case of the PSA unit,
the high cost is largely from the compression needed for the purification
3.3. Sensitivity analysis and uncertainty analysis process.
The analysis carried out in this study is deterministic in nature. In
Sensitivity analysis was conducted for scenario 3a for brevity and reality, the values of the input parameters would vary and are unpre
because it was the most profitable among the scenarios studied. The dictable and will result in variation in the output parameter (the rate of
profitability was assessed by varying most of the input parameters by return in this case). To determine the variability of the rate of return due
+/− 30 % of their base values, except the market prices of bio-oil and to the potential variation in the input parameter, an uncertainty analysis
ethanol. This range was chosen as preliminary estimates are reported to was conducted. 10,000 Monte Carlo simulations to derive the uncer
be in this range [68]. A range of +/− 50 % was used for the market prices tainty in the rate of return of scenario 3a were run. Uncertainty analysis
of bio-oil and ethanol because of the high uncertainty in the market was also conducted for the input parameters identified in the previous
prices. Fig. 7 presents the results of the Morris sensitivity analysis. The section as having the most impact on the rate of return. Fig. 8 is a his
horizontal axis of the plot gives the mean of the change in the rate of togram plot showing the range of the rate of return (between − 9% and
return as the input parameters change from their minimum to maximum 33 %).
values [59]. The higher a parameter’s mean, the greater its impact on
the rate of return. The standard deviation on the vertical axis indicates 4. Conclusion
the interaction of a parameter with other parameters or a nonlinear
influence on the rate of return [69]. As shown, bio-oil price, capital cost, In this study, the prospect of improving the profitability of bio
hydrogen price, feedstock cost, and ethanol price are the most important refineries was assessed through an integrated, multi-product approach,
parameters, in that order. The importance of the prices of the products where valuable products, ethanol and hydrogen, were produced from
emphasizes the importance of having a good market price for the the by-products (biochar and non-condensable gases) of a traditional
products, notwithstanding any process improvement. However, the fast pyrolysis biorefinery. Six scenarios, based on the NCG stream and
market for bio-oil is not yet established. Meanwhile, the hydrogen the type of external fuel (natural gas or biomass) used to supplement
market has gained traction recently. Compared to bio-oil and hydrogen, heat, were assessed. A fast pyrolysis biorefinery processing biomass at a
the market for ethanol is well established and can be expected to grow in rate of 2000 dry tonne/day was considered. A data-intensive techno-
future. Focus should be given in improving the yield of ethanol from the economic model was developed to assess the internal rate of return of
fermentation process as ethanol sales will also boost revenue. Further the scenarios relative to the base fast pyrolysis plant.
improvements in biomass harvesting and transportation are needed to It was observed that the production of valuable products like ethanol
reduce the delivered cost of the feedstock. For the capital investment, and hydrogen from the by-products of fast pyrolysis is a profitable
the pyrolysis, fermentation, and PSA units contribute significantly to venture, especially in an uncertain biochar market. This is because if
capital cost. As more pyrolysis projects are built and the learning rate biochar cannot be sold, the six scenarios assessed show a higher rate of
increases, the capital investment in the pyrolysis reactor is expected to return than the base case, which has a rate of return of 7.00 %. When
decrease. The maximum practical volume of a 1000 m3 fermentation natural gas is the external fuel, the internal rate of return is between 10
reactor does not show economies of scale. Increasing ethanol yield from and 13 %. When woodchips are burnt, the internal rate of return is be
the fermentation process and better reactor design to allow for a high tween 7.46 and 9.80 %. In every scenario, it is most profitable to use
Fig. 8. Uncertainty analysis of scenario 3a (scenario where ethanol is produced from biochar, hydrogen is produced from NCG, and woodchips is used for sup
plementary heat supply).
12
T. Giwa et al. Fuel 332 (2023) 126022
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