Are biofuels from seaweed a viable proposition? Bioeconomic modeling of biogas production and co-generation in an Australian context

Abstract

Background: The economic viability of the intensive land-based cultivation of Ulva lactuca for biofuels (biogas and co-generation) was ascertained using a bioeconomic model developed for the Australian context. The cost assumptions, technical variables and biological parameters were sourced extensively from published literature. Results: Biogas production and the sale of electricity as a standalone business model was unprofitable at the current feed-in tariff due to high electricity generation costs of US$0.44 kWh^-1 for even the largest macroalgal production facility size of 400 ha (AU$:US$ = 0.9369; 1 June 2011). Conclusion: As this is a prefeasibility study, it is largely literature based with some engineering estimates; therefore, this model needs validation with actual field data from a commercial-scale production facility.

Acknowledgements

The authors thank X Li, program leader (Aquaculture), for his comments, and the assistance of K Bott and M Braley from the Algal production Group at the South Australian Research Institute, Aquatic Sciences, for compiling some of the literature used for the validation of the models developed. Critical but constructive comments from the three reviewers are acknowledged.

Financial and competing interests disclosure

S Nayar from the South Australian Research Institute Aquatic Sciences and F Froese, formerly at the University of Freiburg, acknowledge funding support from the South Australian Department of Further Education, Employment, Science and Technology through the Premier’s Science and Research Round 8 Funding. The authors have no other relevant affiliations or financial involvement with any other organisations or entities with a financial interest in or financial conflict with the subject matter or aspects discussed in the manuscript apart from those disclosed.

No writing assistance was utilized in the production of this manuscript.