Bioethanol processing from wheat straw: investment appraisal of a full-scale UK biofuel refinery

Abstract

An indicative economic appraisal of a biorefinery investment has been undertaken for the case of an archetypal, full-scale process plant based on bioethanol production from wheat straw: a cellulosic co-product or ‘waste’ stream. A ‘life-cycle’, or ‘through-life’, biofuel chain was examined from the supply of wheat straw, through biochemical conversion processing, and distribution of product to fuel terminals for use in the transport network. The process technology investigated was dilute acid pre-treatment and enzymatic hydrolysis. Discounted cash flow (DCF) investment appraisal formed the key evaluation methodology, and the results were found to depend on the discount rate and lifespan of the biorefinery. Analysis of suitable UK locations, refinery scale or size, and logistics established potential low cost areas with good access to wheat straw. DCF investment appraisals of this type enable industrialists and policy makers to determine the implications of bioethanol production from wheat straw within a low carbon future.

Keywords:

• Lignocellulose biomass
• crop residues
• wheat straw
• full-scale bioethanol refinery
• investment appraisal

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.

Acknowledgements

The LACE consortium of which the present study formed part was led from the School of Biosciences at the University of Nottingham’s Sutton Bonington Campus by Prof. Katherine Smart [now at the University of Cambridge and co-founder of the Surrey Copper Distillery Ltd. (Cranleigh, Surrey, UK)] and Prof. Greg Tucker, whilst BSBEC overall was directed by Duncan Eggar (the BBSRC Bioenergy Champion). This study has utilised estimates of potential wheat straw availability for bioethanol production made by agricultural economics colleagues at the Sutton Bonington Campus (Dr Neryssa Glithero, Dr Stephen Ramsden and Prof. Paul Wilson), as part of a companion theme of the LACE Programme. Both co-authors are grateful to all these external colleagues for their role in associated research, co-ordination and development of the BSBEC and LACE consortia of university and other partners. This indicative evaluation of full-scale biorefinery investment appraisal was suggested to Prof. Hammond by Dr Richard Flavell [Chief Scientific Advisor of the biotechnology company Ceres, Inc. (Thousand Oaks, California, USA) and, at the time, Chair of the BSBEC Science and Impact Advisory Board (SIAB)]. The authors are also grateful for the early comments on this research study by one of their University of Bath colleagues and specialist in through-life cost engineering, Prof. Linda Newnes. However, the views expressed in this paper are those of the authors alone, and do not necessarily reflect the views of their collaborators or the policies of the funders.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 £1 (GBP) ≈ 1.198€(EUR) ≈ $1.359 (USD) at the beginning of 2022.

Additional information

Funding

The present research forms part of a programme at the University of Bath on the technology assessment of energy (including bioenergy and biofuel) systems supported by various research grants under the auspices of what is now the UK Research and Innovation (UKRI). In particular, Prof. Hammond was a Co-Investigator of the Biotechnology and Biological Sciences Research Council’s (BBSRC) Sustainable Bioenergy Centre (BSBEC), under the ‘Lignocellulosic Conversion to Ethanol’ (LACE) Programme [under Grant Ref: BB/G01616X/1].