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Greenhouse Gas Abatement Potentials and Economics of Selected Biochemicals in Germany

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  • Frazer Musonda

    (Department of Bioenergy, Helmholtz Centre for Environmental Research–UFZ Permoserstraße 15, 04318 Leipzig, Germany
    Institute for Infrastructure and Resources Management, University Leipzig, Grimmaische Str. 12, 04109 Leipzig, Germany)

  • Markus Millinger

    (Department of Bioenergy, Helmholtz Centre for Environmental Research–UFZ Permoserstraße 15, 04318 Leipzig, Germany)

  • Daniela Thrän

    (Department of Bioenergy, Helmholtz Centre for Environmental Research–UFZ Permoserstraße 15, 04318 Leipzig, Germany
    Institute for Infrastructure and Resources Management, University Leipzig, Grimmaische Str. 12, 04109 Leipzig, Germany
    DBFZ Deutsches Biomasseforschungszentrum gemeinnützige GmbH, Torgauer Straße 116, 04347 Leipzig, Germany)

Abstract

In this paper, biochemicals with the potential to substitute fossil reference chemicals in Germany were identified using technological readiness and substitution potential criteria. Their greenhouse gas (GHG) emissions were quantified by using life cycle assessments (LCA) and their economic viabilities were determined by comparing their minimum selling prices with fossil references’ market prices. A bottom up mathematical optimization model, BioENergy OPTimization (BENOPT) was used to investigate the GHG abatement potential and the corresponding abatement costs for the biochemicals up to 2050. BENOPT determines the optimal biomass allocation pathways based on maximizing GHG abatement under resource, capacity, and demand constraints. The identified biochemicals were bioethylene, succinic acid, polylactic acid (PLA), and polyhydroxyalkanoates (PHA). Results show that only succinic acid is economically competitive. Bioethylene which is the least performing in terms of economics breaks even at a carbon price of 420 euros per ton carbon dioxide equivalent (€/tCO 2 eq). With full tax waivers, a carbon price of 134 €/tCO 2 eq is necessary. This would result in positive margins for PHA and PLA of 12% and 16%, respectively. From the available agricultural land, modeling results show high sensitivity to assumptions of carbon dioxide (CO 2 ) sequestration in biochemicals and integrated biochemicals production. GHG abatement for scenarios where these assumptions were disregarded and where they were collectively taken into account increased by 370% resulting in a 75% reduction in the corresponding GHG abatement costs.

Suggested Citation

  • Frazer Musonda & Markus Millinger & Daniela Thrän, 2020. "Greenhouse Gas Abatement Potentials and Economics of Selected Biochemicals in Germany," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2230-:d:331845
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    References listed on IDEAS

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    1. Codina Gironès, Víctor & Moret, Stefano & Peduzzi, Emanuela & Nasato, Marco & Maréchal, François, 2017. "Optimal use of biomass in large-scale energy systems: Insights for energy policy," Energy, Elsevier, vol. 137(C), pages 789-797.
    2. Paul B. Thompson, 2012. "The Agricultural Ethics of Biofuels: The Food vs. Fuel Debate," Agriculture, MDPI, vol. 2(4), pages 1-20, November.
    3. Bentsen, Niclas Scott & Jack, Michael W. & Felby, Claus & Thorsen, Bo Jellesmark, 2014. "Allocation of biomass resources for minimising energy system greenhouse gas emissions," Energy, Elsevier, vol. 69(C), pages 506-515.
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    1. Julia Wenger & Stefan Pichler & Annukka Näyhä & Tobias Stern, 2022. "Practitioners’ Perceptions of Co-Product Allocation Methods in Biorefinery Development—A Case Study of the Austrian Pulp and Paper Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    2. Louw, Jeanne & Dogbe, Eunice S. & Yang, Bin & Görgens, Johann F., 2023. "Prioritisation of biomass-derived products for biorefineries based on economic feasibility: A review on the comparability of techno-economic assessment results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    3. Sören Richter & Nora Szarka & Alberto Bezama & Daniela Thrän, 2022. "What Drives a Future German Bioeconomy? A Narrative and STEEPLE Analysis for Explorative Characterisation of Scenario Drivers," Sustainability, MDPI, vol. 14(5), pages 1-32, March.

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