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Optimal allocation of sugarcane bagasse for producing bioelectricity and second generation ethanol in Brazil: Scenarios of cost reductions

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  • Carpio, Lucio Guido Tapia
  • Simone de Souza, Fábio

Abstract

The consolidation of second generation ethanol will provide a greater amount of ethanol without increasing sugarcane acreage, but two technologies have emerged that use sugarcane bagasse as a feedstock: the generation of bioelectricity and second generation ethanol. As a result, a new discussion has arisen for the future configuration of the sugarcane industry: should bagasse be used to generate bioelectricity or produce second generation ethanol? Due to the high volatility of prices, for both electricity and anhydrous ethanol, the decision is complex, and higher volatility of price is associated with greater risk in this decision. This article presents a bi-objective optimization model to decide efficiently the percentage of the available sugarcane bagasse that should be allocated to each of these options in order to maximize the average return and, at the same time, minimize the risk inherent in price level volatilities. The results for four possible scenarios are presented; it is concluded that the scenario that presents a bioelectricity production cost of US$ 50/MWh and a cost of second generation ethanol production of US$ 0.30/liter has a higher return and lower risk to the investor. In this scenario, the allocation of bagasse for second generation ethanol production is 84%.

Suggested Citation

  • Carpio, Lucio Guido Tapia & Simone de Souza, Fábio, 2017. "Optimal allocation of sugarcane bagasse for producing bioelectricity and second generation ethanol in Brazil: Scenarios of cost reductions," Renewable Energy, Elsevier, vol. 111(C), pages 771-780.
  • Handle: RePEc:eee:renene:v:111:y:2017:i:c:p:771-780
    DOI: 10.1016/j.renene.2017.05.015
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    Cited by:

    1. Hiloidhari, Moonmoon & Vijay, Vandit & Banerjee, Rangan & Baruah, D.C. & Rao, Anand B., 2021. "Energy-carbon-water footprint of sugarcane bioenergy: A district-level life cycle assessment in the state of Maharashtra, India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    2. Souza, Simone Pereira & Nogueira, Luiz Augusto Horta & Martinez, Johan & Cortez, Luis Augusto Barbosa, 2018. "Sugarcane can afford a cleaner energy profile in Latin America & Caribbean," Renewable Energy, Elsevier, vol. 121(C), pages 164-172.
    3. Smith Lewin, Caroline & Fonseca de Aguiar Martins, Ana Rosa & Pradelle, Florian, 2020. "Modelling, simulation and optimization of a solid residues downdraft gasifier: Application to the co-gasification of municipal solid waste and sugarcane bagasse," Energy, Elsevier, vol. 210(C).
    4. Mutran, Victoria M. & Ribeiro, Celma O. & Nascimento, Claudio A.O. & Chachuat, Benoît, 2020. "Risk-conscious optimization model to support bioenergy investments in the Brazilian sugarcane industry," Applied Energy, Elsevier, vol. 258(C).
    5. Chen, Zhengyu & Wang, Huan & Wei, Weiqi & Yuan, Zhaoyang, 2021. "Enhancing bagasse enzymatic hydrolysis through combination of ball-milling and LiCl/DMSO dissolution and regeneration," Renewable Energy, Elsevier, vol. 171(C), pages 994-1001.
    6. Copa Rey, José Ramón & Tamayo Pacheco, Jorge Jadid & António da Cruz Tarelho, Luís & Silva, Valter & Cardoso, João Sousa & Silveira, José Luz & Tuna, Celso Eduardo, 2021. "Evaluation of cogeneration alternative systems integrating biomass gasification applied to a Brazilian sugar industry," Renewable Energy, Elsevier, vol. 178(C), pages 318-333.
    7. Nicodème, Thibault & Berchem, Thomas & Jacquet, Nicolas & Richel, Aurore, 2018. "Thermochemical conversion of sugar industry by-products to biofuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 151-159.
    8. Zhang, Weiwei & Zhang, Xiankun & Lei, Fuhou & Jiang, Jianxin, 2020. "Co-production bioethanol and xylooligosaccharides from sugarcane bagasse via autohydrolysis pretreatment," Renewable Energy, Elsevier, vol. 162(C), pages 2297-2305.
    9. Nogueira, Karoline Maria Vieira & Mendes, Vanessa & Carraro, Cláudia Batista & Taveira, Iasmin Cartaxo & Oshiquiri, Letícia Harumi & Gupta, Vijai K. & Silva, Roberto N., 2020. "Sugar transporters from industrial fungi: Key to improving second-generation ethanol production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    10. Tamás Mizik, 2021. "Economic Aspects and Sustainability of Ethanol Production—A Systematic Literature Review," Energies, MDPI, vol. 14(19), pages 1-25, September.
    11. Mizik, Tamás, 2022. "A bioetanol-termelés gazdasági és fenntarthatósági vetületei [Economic and sustainability aspects of bioethanol production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1213-1241.
    12. Lyrio de Oliveira, Lucas & García Kerdan, Iván & de Oliveira Ribeiro, Celma & Oller do Nascimento, Claudio Augusto & Rego, Erik Eduardo & Giarola, Sara & Hawkes, Adam, 2020. "Modelling the technical potential of bioelectricity production under land use constraints: A multi-region Brazil case study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    13. Vandenberghe, L.P.S. & Valladares-Diestra, K.K. & Bittencourt, G.A. & Zevallos Torres, L.A. & Vieira, S. & Karp, S.G. & Sydney, E.B. & de Carvalho, J.C. & Thomaz Soccol, V. & Soccol, C.R., 2022. "Beyond sugar and ethanol: The future of sugarcane biorefineries in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    14. Sara Restrepo-Valencia & Arnaldo Walter, 2023. "CO 2 Capture in a Thermal Power Plant Using Sugarcane Residual Biomass," Energies, MDPI, vol. 16(12), pages 1-19, June.
    15. Tinôco, Daniel & Genier, Hugo Leonardo André & da Silveira, Wendel Batista, 2021. "Technology valuation of cellulosic ethanol production by Kluyveromyces marxianus CCT 7735 from sweet sorghum bagasse at elevated temperatures," Renewable Energy, Elsevier, vol. 173(C), pages 188-196.
    16. Tapia Carpio, Lucio Guido, 2021. "Mitigating the risk of photovoltaic power generation: A complementarity model of solar irradiation in diverse regions applied to Brazil," Utilities Policy, Elsevier, vol. 71(C).
    17. Neto, Abel F.G. & Marques, Francisco C. & Amador, Adriana T. & Ferreira, Amanda D.S. & Neto, Antonio M.J.C., 2019. "DFT and canonical ensemble investigations on the thermodynamic properties of Syngas and natural gas/Syngas mixtures," Renewable Energy, Elsevier, vol. 130(C), pages 495-509.
    18. Pighinelli, Anna L.M.T. & Schaffer, Mark A. & Boateng, Akwasi A., 2018. "Utilization of eucalyptus for electricity production in Brazil via fast pyrolysis: A techno-economic analysis," Renewable Energy, Elsevier, vol. 119(C), pages 590-597.
    19. Cervi, Walter Rossi & Lamparelli, Rubens Augusto Camargo & Seabra, Joaquim Eugênio Abel & Junginger, Martin & van der Hilst, Floor, 2020. "Spatial assessment of the techno-economic potential of bioelectricity production from sugarcane straw," Renewable Energy, Elsevier, vol. 156(C), pages 1313-1324.
    20. Fonseca, G.C. & Costa, C.B.B. & Cruz, A.J.G., 2020. "Economic analysis of a second-generation ethanol and electricity biorefinery using superstructural optimization," Energy, Elsevier, vol. 204(C).
    21. Sattar Jabbar Murad Algayyim & Talal Yusaf & Naseer H. Hamza & Andrew P. Wandel & I. M. Rizwanul Fattah & Mohamd Laimon & S. M. Ashrafur Rahman, 2022. "Sugarcane Biomass as a Source of Biofuel for Internal Combustion Engines (Ethanol and Acetone-Butanol-Ethanol): A Review of Economic Challenges," Energies, MDPI, vol. 15(22), pages 1-17, November.

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