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Preliminary Feasibility Analysis For An Integrated Biomaterials And Ethanol Biorefinery Using Wheat Straw Feedstock

Author

Listed:
  • Leistritz, F. Larry
  • Senechal, Donald M.
  • Stowers, Mark D.
  • McDonald, William F.
  • Saffron, Chris M.
  • Hodur, Nancy M.

Abstract

Biobased products and fuels appear to have a very bright future. A consortium led by NDSU is currently engaged in a project that would use cellulose nanofibers derived from wheat straw to make a product that could substitute for fiberglass and plastics in many applications, including automotive parts. The work described here analyzes the economic value of producing cellulose nanowhiskers (CNW) as a co-product in an ethanol biorefinery. An ASPEN Plus-based process model was developed to evaluate ethanol production from wheat straw. The base case model generated 54.418 million gallons per year (MGPY) of denatured ethanol, using approximately 900,000 tons per year of wheat straw feedstock. The capital cost was estimated at $185 million. Total operating costs, excluding by-product credits, were $92.4 million per year. Revenue from sales was estimated at $98.0 million per year from ethanol and $7.5 million per year from electricity. The earnings before interest and income tax (EBIT) are $13.1 million per year providing a return on investment (ROI) of 7.06 percent. The production cost of ethanol including by-product credit was determined at $1.56 per gallon. When production of CNW was added to the base case model, the manufacturing cost of producing CNW from wheat straw was estimated to be $.57 per pound. Economic analysis indicated that production of CNW would be an enhancement to the economic performance of a wheat straw to ethanol mill.

Suggested Citation

  • Leistritz, F. Larry & Senechal, Donald M. & Stowers, Mark D. & McDonald, William F. & Saffron, Chris M. & Hodur, Nancy M., 2006. "Preliminary Feasibility Analysis For An Integrated Biomaterials And Ethanol Biorefinery Using Wheat Straw Feedstock," Agribusiness & Applied Economics Report 23500, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaae:23500
    DOI: 10.22004/ag.econ.23500
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    Cited by:

    1. Sorda, Giovanni & Madlener, Reinhard, 2012. "Cost-Effectiveness of Lignocellulose Biorefineries and their Impact on the Deciduous Wood Markets in Germany," FCN Working Papers 8/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Coon, Randal C. & Hodur, Nancy M. & Bangsund, Dean A., 2014. "Potential Availability and Cost of Flax Straw for Commercial Applications," Agribusiness & Applied Economics Report 187821, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. De Corato, Ugo & De Bari, Isabella & Viola, Egidio & Pugliese, Massimo, 2018. "Assessing the main opportunities of integrated biorefining from agro-bioenergy co/by-products and agroindustrial residues into high-value added products associated to some emerging markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 326-346.

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    Keywords

    Resource /Energy Economics and Policy;

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