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Techno-Economic and Environmental Assessment of Bioethanol Production From High Starch and Root Yield Sri Kanji 1 Cassava in Malaysia
Techno-Economic and Environmental Assessment of Bioethanol Production From High Starch and Root Yield Sri Kanji 1 Cassava in Malaysia
Energy Reports
journal homepage: www.elsevier.com/locate/egyr
Nomenclatures
Fig. 1. Production ethanol yield for various source of bioethanol feedstock (The
Symbol Descriptions Unit State of Food and Agriculture, 2008).
BC Bioethanol needed tons
BCC Carbon stock for bioethanol ton/ha
The major advantages of cassava over other crops are growth
cropland
tolerance to poor environmental condition, all year long planting
BFP Bioethanol fuel price $/litre
and harvesting, high root productivity, continuous development
BP By product credit $
of high yield-improved varieties, less input in planting and
CC Capital cost $
harvesting, high quantity and quality carbohydrate source, starchy
CDG Carbon dioxide generated tons
crop with highest energy content per acre and higher ethanol yield
CDP Carbon dioxide price $/ton
per acre (Kuakoon, 2011).
CLR Cropland required hectare
The main challenge to utilize Sri Kanji 1 cassava as raw material
CPP Carbon payback period year
for bioethanol production is the raw material supply capabilities.
CPW Compound present worth factor $
With current cultivation area for cassava is only 3000 hectare and
EC Energy content of gasoline fuel GJ/ton
most of it is used for starch industry, it would be insufficient for
EY Ethanol yield kg/ha
bioethanol production (FAO, 0000). This can be solved by increas-
FBC Final bioethanol unit cost $/litre
ing the cassava cultivation area as cassava can be cultivated in a
FC Feedstock cost $
marginal land. A new policy on cassava plantation for bioethanol
FP Feedstock price $
production needs to be considered to support the development of
FU Feedstock consumption tons
cassava bioethanol industry.
GC Gasoline consumption tons
The aim of this study is to conduct techno-economic and envi-
GR Gasoline replacement tons
ronmental analysis of ethanol production from Sri Kanji 1 cassava
HVB Heating value of bioethanol fuel MJ/kg
as gasoline replacement in road transport. The analysis consists of
HVG Heating value of gasoline fuel MJ/kg
the estimation of ethanol production cost in Malaysia, taxation and
i Project year year
LCC Life cycle cost $ subsidiary scenario, energy and environmental impact and ecosys-
LSC Carbon stock for natural forest ton/ha tem carbon payback period.
MC Maintenance cost $
MR Maintenance rate % 2. Methodology
NAE Net avoided emission tonsCO2 /tons
n Project life time year
2.1. Prediction of energy consumption
η Fossil gasoline replacement rate %
OC Operating cost $
OR Operating rate $/ton The polynomial curve fitting equation is used to evaluate and
PC Annual bioethanol production tons/year project long-term time series and to determine a smooth curve
capacity that best fits the data but does not necessarily pass through all
PP Payback period year the data points. Mathematically, a polynomial of order k in x is an
PV Present value – expression in the following form:
PWF Present worth factor –
y = c0 + c1 x + c2 x2 + · · · + ck c k . (1)
ρ Density kg/m3
r Discount rate % In this research, the forthcoming energy consumption is as-
RC Replacement cost $ sumed comparable to the pattern of past years by utilizing poly-
RM Ringgit Malaysia (currency) RM nomial curve fitting to evaluate long term time series for energy
SR Substitution ratio of bioethanol to – consumption pattern. Thus, Eq. (1) is used to estimate and forecast
gasoline fuel future energy consumption pattern.
SV Salvage value $
TAX Annual total tax $/year
TBS Annual total bioethanol sales $/year 2.2. Life cycle cost and payback period analysis
TCS Total carbon saving tons
TGS Total gasoline saving tons 2.2.1. Life cycle cost
TPC Annual total production cost $/year In this section, life cycle cost model for bioethanol production
TR Tax ratio % plant is established and clustered into six groupings as follows:
LCC = CC + OC + MC + FC − SV − BP . (2)
248 M. Hanif et al. / Energy Reports 2 (2016) 246–253
By applying the given approach, the present value model for the By product credit
life cycle cost is presented as follow: Carbon dioxide is the by-product of bioethanol production process
n n and usually compressed and sells to carbonated drink manufac-
OC i + MC i + FC i SV BP i
LCC = CC + − − . turer. Estimation is based on the price of carbon dioxide and its pro-
i=1 (1 + r )
i
(1 + r )n
i =1 (1 + r )i duction volume, which the by-product credit value over the plant
(3) life span is calculated as,
n
Present worth factor CDP × CDG
Present worth factor (PWF) is used to define the practicability of BP = . (15)
i=1 (1 + r )i
investment in bioethanol production plant for a particular discount
percentage. For year ‘‘i’’, the present worth factor is given as, Payback period
The payback period utilizes the ratio of capital cost over yearly
1
PWF = . (4) income as a method to observe the project. Taxes are comprised as
(1 + r )i a fraction of total bioethanol sales. The payback period is expressed
Summing this over a project period of n years yields the as,
compound present worth factor (CPW), CC
n
PP = . (16)
1 TBS − TPC − TAX
CPW = (5)
(1 + r )i Whereby,
i =1
BFP × PC
(1 + r )n − 1 TBS = (17)
CPW = . (6) ρ
r (1 + r )n
Capital cost LCC
TPC = 1.1 × (18)
Based on the research by Howell (Howell, 2005) the maximum, n
typical and minimum initial capital costs of biofuel plant based on TAX = (TBS − TPC ) × TR. (19)
production capability can be stated in the given equation:
Total bioethanol cost
CC high = −517.76 × PC 2 + 252 928 × PC + 3 446 300 (7) Final bioethanol costs consist of the total life cycle cost, distribution
cost and profit margin, which the sum of distribution cost and
CC avg = −430.13 × PC 2 + 205 235 × PC + 2 696 000 (8) profit margin are usually 10% of bioethanol production cost. The
CC low = −342.49 × PC + 157 542 × PC + 1 945 700.
2
(9) total bioethanol cost can be calculated by the following equation:
40000
35000
30000
25000
20000
15000
10000
5000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
n 18
TGS = GRi × EC . (25) 17
i 16
15
Potential environmental impact
The environmental impacts presented in this study are potential 14
Table 1
Gasoline consumption forecast for transportation sector from 2017 to 2036.
Year Gasoline consumption (ktoe) Gasoline consumption (million litres)
Table 2
Average cost of Sri Kanji 1 cassava production per hectare (NurulNahar and Tan, 2012).
Item Cost (RM)
Table 3
Summary of economic data and indicators.
Item Data
life cycle cost. Then, the total bioethanol production cost reduced
to $132 million USD by taking into consideration the CO2 credit.
Fig. 4. Distribution of bioethanol production life cycle cost. Furthermore, the cost to produce 1 L bioethanol from Sri Kanji
1 cassava is calculated to be $0.11 USD. The 54 ktons bioethanol
The life cycle cost is presented in present value assuming 8% production plant payback period was evaluated to be 0.66, which
discount rate. Bioethanol production life cycle cost and payback is smaller than one tenth of the 20 year life cycle, point out that the
period were summarized in Table 4. The total life cycle cost of project is economically feasible.
bioethanol production from cassava in Malaysia is $145 million Sensitivity analysis
USD without taken into account the byproduct credit. Feedstock The outcomes of sensitivity analysis for cassava bioethanol produc-
cost is the largest cost-effective aspect which accounted for 67.1% tion for four input variables are given in Fig. 5. As anticipated, de-
of the total production cost. The other essential costs are operating viation in the raw cassava price denotes the main influence on to-
a cost which contributes 32.2% of the total production cost. tal production cost. For example, raw cassava price of $10 USD/ton
Byproducts sales are a basis of earnings which covers 10.5% of total decreases the production cost to $79 million USD and increases to
M. Hanif et al. / Energy Reports 2 (2016) 246–253 251
Table 4
Summary of life cycle cost and payback period for bioethanol production.
Item Value ($ USD) Distribution (%) 0.40
Capital cost 12,524,430 9.5%
Operating cost 42,414,396 32.2%
Maintenance cost 2459,334 1.9% 0.20
Feedstock cost 88,363,326 67.1%
Salvage value 289,822 0.2%
By product credit 13,816,097 10.5% 0.00
LCC w/o byproduct 145,471,664 10 20 30 40 50 60 70 80 90 100
Total life cycle cost 131,655,567 Feedstock cost ($USD/ton)
Production unit cost ($/L) 0.11
Total tax examption 20% of taxation 39% price subsidy
Payback period 0.66
Table 5
Bioethanol taxation and subsidy scenarios at current production cost.
Cassava bioethanol Fossil gasoline
Total tax exemption 20% of taxation Subsidy 39% Subsidy 66%
Table 6
Cassava bioethanol and cropland needed, and total carbon saving.
Year Gasoline consumption (ton) Gasoline saving (ton) Bioethanol needed (ton) Cropland needed (ha) Carbon saving (ton)
Table 7
Impact of cropland, energy and CO2 saving for cassava bioethanol at various replacement rate.
Fossil gasoline replacement rate Fossil gasoline replaced Bioethanol needed Cropland needed Gasoline energy saving CO2 saving
(%) (ton) (ton) (ha) (GJ) (ton)