Adv Biochem Engin/Biotechnol (2007) 108: 303–327

DOI 10.1007/10_2007_063
© Springer-Verlag Berlin Heidelberg
Published online: 1 June 2007

Process Engineering Economics of Bioethanol Production

Mats Galbe1 · Per Sassner1 · Anders Wingren2 · Guido Zacchi1 (u)
1 Department of Chemical Engineering, Lund University, P.O. Box 124, 221 00 Lund,
Sweden
Guido.Zacchi@chemeng.lth.se
2 SEKAB E-Technology, P.O. Box 286, 891 26 Örnsköldsvik, Sweden

1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304

2 Flowsheeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
2.1 Simulation of Ethanol Production from Lignocellulosic Materials . . . . . . 310

3 Process Economics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311

3.1 Effect of Various Parameters on the Energy Demand and Production Cost 318
3.2 Lignocellulose versus Starch—a Comparison . . . . . . . . . . . . . . . . . 322
3.3 Co-location with other Plants . . . . . . . . . . . . . . . . . . . . . . . . . 325

4 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326

Abstract This work presents a review of studies on the process economics of ethanol
production from lignocellulosic materials published since 1996. Our objective was to
identify the most costly process steps and the impact of various parameters on the fi-
nal production cost, e.g. plant capacity, raw material cost, and overall product yield,
as well as process configuration. The variation in estimated ethanol production cost is
considerable, ranging from about 0.13 to 0.81 US$ per liter ethanol. This can be ex-
plained to a large extent by actual process differences and variations in the assumptions
underlying the techno-economic evaluations. The most important parameters for the
economic outcome are the feedstock cost, which varied between 30 and 90 US$ per
metric ton in the papers studied, and the plant capacity, which influences the capi-
tal cost. To reduce the ethanol production cost it is necessary to reach high ethanol
yields, as well as a high ethanol concentration during fermentation, to be able to de-
crease the energy required for distillation and other downstream process steps. Improved
pretreatment methods, enhanced enzymatic hydrolysis with cheaper and more effective
enzymes, as well as improved fermentation systems present major research challenges
if we are to make lignocellulose-based ethanol production competitive with sugar- and
starch-based ethanol. Process integration, either internally or externally with other types
of plants, e.g. heat and power plants, also offers a way of reducing the final ethanol
production cost.

Keywords Bioethanol production · Biomass · Flowsheeting · Process economics

304 M. Galbe et al.

1
Introduction

There is no single process design offering the most cost-efficient way to pro-
duce ethanol from biomass. Many factors that affect the desired product have
to be taken into consideration. Regarding ethanol production, some of the
most important parameters are the capital cost of the plant, the type and cost
of raw material, the utilization efficiency of the materials involved in the pro-
cess and the energy demand. The design of the plant, as well as its individual
process steps, must be based on accurate and reliable data. These comprise
both physical and chemical data and cost estimation data. It is naturally best
to use data gathered from the same or a similar type of plant as the intended
one. Most of the data required are available, or can be adapted and used for
a new plant design. This is not the situation when lignocellulosic materials are
considered as feedstock for ethanol production.
Ethanol has traditionally been produced from sugar cane and sugar
beet juice [1] or from various starch-containing materials, e.g. corn or
wheat [2–4]. Figure 1 shows a simplified flowsheet of an ethanol produc-
tion process based on starch-containing materials. Liquefaction of the starch
fraction is accomplished by adding hydrolytic enzymes (α-amylases) at tem-
peratures of around 90 ◦ C. After the liquefaction step the starch molecules
are further hydrolyzed by the addition of glucoamylases. This produces sug-
ars, which are readily fermented by yeast, e.g. Saccharomyces cerevisiae, to
ethanol. The main co-product is usually animal feed, consisting of the re-
maining fraction of the raw material, mainly proteins and fiber, which is
sometimes referred to as DDGS—distillers dried grains with solubles [5].
There is considerable experience in starch-based ethanol production, and the
technology can be considered mature. The design and cost estimates of new
plants are, therefore, rather accurate.
The availability of agricultural land for non-food crops and the limited
market for animal feed places a limit on the amount of ethanol that can be
produced from starch-based materials in a cost competitive way [6]. Ethanol
production from lignocellulosic raw materials, on the other hand, reduces the
potential conflict between land use for food (and feed) production and energy
feedstock production. The raw material is less expensive than conventional
agricultural feedstock and can be produced with lower inputs of fertilizers,
pesticides, and energy. Lignocellulosic materials contain about 50–60% car-
bohydrates in the form of cellulose (made up of glucose) and hemicellulose
(consisting of various pentose and hexose sugars), which may be fermented
to ethanol, and 20–35% lignin. The latter is the main co-product, which could
be used for the production of heat and electricity or, in the longer perspective,
for the production of specialty chemicals. There is thus no co-product limita-
tion on the use of lignocellulosic materials for ethanol production. The only
limitation is the availability of the raw material and, of course, the production