Exploring profitability of bioeconomy paths: Dimethyl ether from biogas as case study. (15th June 2021)

• Record Type: Journal Article
• Authors: Baena-Moreno, Francisco M.; Gonzalez-Castaño, Miriam; Arellano-García, Harvey; Reina, T.R.
• Is Part Of: Energy. Volume 225(2021)
• Publication Date: 2021-06-15
• Subjects: Biomethane production -- Biogas upgrading -- CO2 utilization -- Green energy production -- Waste valorization -- Dimethyl ether; Power resources -- Periodicals; Power (Mechanics) -- Periodicals; Energy consumption -- Periodicals; 333.7905
• DOI: 10.1016/j.energy.2021.120230
• Languages: English
• ISSNs: 0360-5442

Abstract

Abstract: Herein a novel path is analysed for its economic viability to synergize the production of biomethane and dimethyl ether from biogas. We conduct a profitability analysis based on the discounted cash flow method. The results revealed an unprofitable process with high cost/revenues ratios. Profitable scenarios would be reached by setting prohibitive DME prices (1983–5566 €/t) or very high feed-in tariffs subsidies (95.22 €/MWh in the best case scenario). From the cost reduction side, the analysis revealed the need of reducing investment costs. For this purpose, we propose a percentage of investment as incentive scheme. Although the size increase benefits cost/revenues ratio, only the 1000 m 3 /h biogas plant size will reach profitability if 90% of the investment is subsidized. A sensitivity analysis to check the influence of some important economical parameters is also included. Overall this study evidences the big challenge that our society faces in the way towards a circular economy. Highlights: Novel alternative for synergizing bio-methane and dimethyl ether production. Profitability analysis for four different plant sizes. The effect of dimethyl ether price and subsidies is studied. The analysis revealed a technically viable but financially unprofitable process. Evidence of the need of a strong green policy-making strategy.