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Financial analyses of potential biojet fuel production technologies
Author(s) -
Pereira Lucas G.,
MacLean Heather L.,
Saville Brad A.
Publication year - 2017
Publication title -
biofuels, bioproducts and biorefining
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.931
H-Index - 83
eISSN - 1932-1031
pISSN - 1932-104X
DOI - 10.1002/bbb.1775
Subject(s) - jet fuel , production (economics) , biomass (ecology) , environmental science , aviation biofuel , greenhouse gas , business , cash flow , biofuel , finance , economics , engineering , bioenergy , waste management , ecology , oceanography , biology , macroeconomics , geology
Bio‐based jet fuels are projected by the International Civil Aviation Organization (ICAO) to play a major role in meeting greenhouse gas emissions reduction targets. Recent literature has identified promising pathways for biojet fuel production, including several pathways approved by the ASTM International. Despite the importance of this topic, only a few studies have examined the financial metrics of biojet production, and different assumptions make it difficult to compare results. This paper evaluates and compares the financial viability of six key biojet fuel production pathways using appropriate biomass feedstocks. The pathways were analyzed from a technical and financial perspective, utilizing a common discounted cash flow approach and Monte Carlo analysis, considering internal (e.g. scale‐up to commercial scale) and external (e.g. oil price) uncertainties. The hydroprocessed esters and fatty acids technology with oil feedstock had the most promising financial results, with an internal rate of return of over 26% and a 70% probability of exceeding the minimum attractive rate of return (MARR = 15%) even under the most pessimistic scenario. The next most attractive pathway was catalytic hydrothermolysis, which had favorable financial performance, but only under a scenario that assumed an oil price range of $93 to $140 per barrel. Pyrolysis and gasification with Fischer‐Tropsch synthesis presented high financial risk under an oil price range of $50 to $93 per barrel and low technical development scenarios, whereas the alcohol‐to‐jet and direct‐fermentation‐to‐jet technologies were found to be unlikely to achieve the MARR for any of the scenarios. © 2017 Society of Chemical Industry and John Wiley & Sons, Ltd