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Cost-effectiveness analysis of algae energy production in the EU

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  • Kovacevic, Vujadin
  • Wesseler, Justus

Abstract

Today's society relies heavily on fossil fuels as a main energy source. Global energy demand increase, energy security and climate change are the main drivers of the transition towards alternative energy sources. This paper analyses algal biodiesel production for the EU road transportation and compares it to the fossil fuels and 1st generation biofuels. A cost-effectiveness analysis was used to aggregate private and external costs and derive the social cost of each fuel. The following externalities were internalized: emissions (GHG and non-GHG), food prices impact, pesticides/fertilizers use and security of supply. Currently the social cost of producing algal biodiesel at 52.3Â [euro]Â GJ-1 is higher than rapeseed biodiesel (36.0Â [euro]Â GJ-1) and fossil fuels (15.8Â [euro]Â GJ-1). Biotechnology development, high crude oil prices and high carbon value are the key features of the scenario where algal biodiesel outcompetes all other fuels. A substantial investment into the biotechnology sector and comprehensive environmental research and policy are required to make that scenario a reality.

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  • Kovacevic, Vujadin & Wesseler, Justus, 2010. "Cost-effectiveness analysis of algae energy production in the EU," Energy Policy, Elsevier, vol. 38(10), pages 5749-5757, October.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:5749-5757
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    4. Takeshita, Takayuki, 2011. "Competitiveness, role, and impact of microalgal biodiesel in the global energy future," Applied Energy, Elsevier, vol. 88(10), pages 3481-3491.
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    8. Sun, Jun & Xiong, Xiaoqian & Wang, Mudan & Du, Hua & Li, Jintao & Zhou, Dandan & Zuo, Jian, 2019. "Microalgae biodiesel production in China: A preliminary economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 296-306.
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    12. Goh, Brandon Han Hoe & Ong, Hwai Chyuan & Cheah, Mei Yee & Chen, Wei-Hsin & Yu, Kai Ling & Mahlia, Teuku Meurah Indra, 2019. "Sustainability of direct biodiesel synthesis from microalgae biomass: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 107(C), pages 59-74.
    13. Loan T. Le, 2016. "Biofuel Production in Vietnam: Cost-Effectiveness, Energy and GHG Balances," EEPSEA Research Report rr20160315, Economy and Environment Program for Southeast Asia (EEPSEA), revised Mar 2016.
    14. Piloto-Rodríguez, Ramón & Sánchez-Borroto, Yisel & Melo-Espinosa, Eliezer Ahmed & Verhelst, Sebastian, 2017. "Assessment of diesel engine performance when fueled with biodiesel from algae and microalgae: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 833-842.
    15. Chamkalani, A. & Zendehboudi, S. & Rezaei, N. & Hawboldt, K., 2020. "A critical review on life cycle analysis of algae biodiesel: current challenges and future prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    16. Thomassen, Gwenny & Van Dael, Miet & Lemmens, Bert & Van Passel, Steven, 2017. "A review of the sustainability of algal-based biorefineries: Towards an integrated assessment framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 876-887.
    17. Zhang, Yi & Kang, Xihui & Wang, Zhongming & Kong, Xiaoying & Li, Lianhua & Sun, Yongming & Zhu, Shunni & Feng, Siran & Luo, Xinjian & Lv, Pengmei, 2018. "Enhancement of the energy yield from microalgae via enzymatic pretreatment and anaerobic co-digestion," Energy, Elsevier, vol. 164(C), pages 400-407.
    18. Praveena, V. & Martin, Leenus Jesu & Matijošius, Jonas & Aloui, Fethi & Pugazhendhi, Arivalagan & Varuvel, Edwin Geo, 2024. "A systematic review on biofuel production and utilization from algae and waste feedstocks– a circular economy approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    19. Carriquiry, Miguel A. & Du, Xiaodong & Timilsina, Govinda R., 2011. "Second generation biofuels: Economics and policies," Energy Policy, Elsevier, vol. 39(7), pages 4222-4234, July.
    20. Martin Paul Jr. Tabe-Ojong & Naphtal Habiyaremye, 2017. "Economic Evaluation of Bioenergy Production from Bio-based plants in Germany: Implications for the bioeconomy?," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 10(6), pages 262-262, October.
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    22. Moslem Mousavi, Sayed & Bagheri Ghanbarabadi, Morteza & Bagheri Moghadam, Naser, 2012. "The competitiveness of wind power compared to existing methods of electricity generation in Iran," Energy Policy, Elsevier, vol. 42(C), pages 651-656.
    23. Wei, Yu & Zhang, Jiahao & Bai, Lan & Wang, Yizhi, 2023. "Connectedness among El Niño-Southern Oscillation, carbon emission allowance, crude oil and renewable energy stock markets: Time- and frequency-domain evidence based on TVP-VAR model," Renewable Energy, Elsevier, vol. 202(C), pages 289-309.
    24. Kim, Jiyong & Miller, James E. & Maravelias, Christos T. & Stechel, Ellen B., 2013. "Comparative analysis of environmental impact of S2P (Sunshine to Petrol) system for transportation fuel production," Applied Energy, Elsevier, vol. 111(C), pages 1089-1098.

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    Algae Biofuels Environment;

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