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Assessing the cost of biofuel production with increasing penetration of the transport fuel market: A case study of gaseous biomethane in Ireland

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  • Browne, James
  • Nizami, Abdul-Sattar
  • Thamsiriroj, T
  • Murphy, Jerry D.

Abstract

Biomethane is an indigenously produced gaseous sustainable transport fuel that uses organic feedstock. Allowing for a realistic collection of organic residues and grass silage from 2.5% of pasture land would allow Ireland to generate 17% renewable energy supply in transport (RES-T) and surpass its 10% target for renewable transport energy by 2020. This would significantly lessen Ireland's dependence on imported fossil fuels, allow compliance with the EU Landfill Directive, and reduce pollution of waterways. Biomethane generated from the organic fraction of municipal solid waste (OFMSW) is the cheapest biomethane (€0.36/L diesel equivalent including for value added tax (VAT) of 21%) This is the least expensive fuel because of the associated gate fee of €70/t. If no gate fee were available the cost would be €1.35/L diesel equivalent including VAT: this underlines the importance of gate fee to what is primarily a waste treatment system. Biomethane from slaughter house waste (SHW) is estimated at €0.65/L diesel equivalent while biomethane produced from grass and slurry is more costly to produce (€1.40/L diesel equivalent). This is still in the cost range of petroleum derived transport fuels at the service station (diesel and petrol prices ranging from €1.38 to 1.45/L in February 2011). OFMSW and SHW can between them provide 1.4% RES-T at a minimum cost of €0.52/L. To achieve 10% RES-T biomethane will cost a minimum of €1.28/L diesel equivalent. Gaseous fuel can be more competitive by considering a blend of biomethane and natural gas (BioCNG) (e.g. 20% biomethane with 80% natural gas). If natural gas at approximately €0.7/L diesel equivalent is considered, BioCNG will cost €0.82/L at the 10% RES-T target.

Suggested Citation

  • Browne, James & Nizami, Abdul-Sattar & Thamsiriroj, T & Murphy, Jerry D., 2011. "Assessing the cost of biofuel production with increasing penetration of the transport fuel market: A case study of gaseous biomethane in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4537-4547.
    • Handle: RePEc:eee:rensus:v:15:y:2011:i:9:p:4537-4547
    DOI: 10.1016/j.rser.2011.07.098
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    References listed on IDEAS

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    1. Thamsiriroj, Thanasit & Murphy, Jerry D., 2011. "A critical review of the applicability of biodiesel and grass biomethane as biofuels to satisfy both biofuel targets and sustainability criteria," Applied Energy, Elsevier, vol. 88(4), pages 1008-1019, April.
    2. Asam, Zaki-ul-Zaman & Poulsen, Tjalfe Gorm & Nizami, Abdul-Sattar & Rafique, Rashad & Kiely, Ger & Murphy, Jerry D., 2011. "How can we improve biomethane production per unit of feedstock in biogas plants?," Applied Energy, Elsevier, vol. 88(6), pages 2013-2018, June.
    3. Singh, Anoop & Nizami, Abdul-Sattar & Korres, Nicholas E. & Murphy, Jerry D., 2011. "The effect of reactor design on the sustainability of grass biomethane," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1567-1574, April.
    4. Singh, Anoop & Smyth, Beatrice M. & Murphy, Jerry D., 2010. "A biofuel strategy for Ireland with an emphasis on production of biomethane and minimization of land-take," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(1), pages 277-288, January.
    5. Patterson, Tim & Esteves, Sandra & Dinsdale, Richard & Guwy, Alan, 2011. "An evaluation of the policy and techno-economic factors affecting the potential for biogas upgrading for transport fuel use in the UK," Energy Policy, Elsevier, vol. 39(3), pages 1806-1816, March.
    6. Smyth, Beatrice M. & Murphy, Jerry D. & O'Brien, Catherine M., 2009. "What is the energy balance of grass biomethane in Ireland and other temperate northern European climates?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2349-2360, December.
    7. Murphy, J. D. & McKeogh, E. & Kiely, G., 2004. "Technical/economic/environmental analysis of biogas utilisation," Applied Energy, Elsevier, vol. 77(4), pages 407-427, April.
    8. Nizami, Abdul-Sattar & Murphy, Jerry D., 2010. "What type of digester configurations should be employed to produce biomethane from grass silage?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(6), pages 1558-1568, August.
    9. Murphy, J.D. & McCarthy, K., 2005. "The optimal production of biogas for use as a transport fuel in Ireland," Renewable Energy, Elsevier, vol. 30(14), pages 2111-2127.
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