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Economic evaluation of the conversion of industrial paper sludge to ethanol

Author

Listed:
  • Chen, Hui
  • Venditti, Richard
  • Gonzalez, Ronalds
  • Phillips, Richard
  • Jameel, Hasan
  • Park, Sunkyu

Abstract

The conversion of industrial paper sludge to ethanol was simulated using engineering process simulation software loaded with laboratory generated conversion data and financially analyzed. In one scenario, sludge is fractionated to remove ash, generating a higher concentration carbohydrate stream for separate hydrolysis and fermentation (SHF). In a second scenario, non-fractionated sludge is processed with only pH adjustment. Four primary sludges from mills producing either virgin or recycled paper were analyzed and the experimental conversion results used to inform the simulations. Financial analysis was conducted assuming ethanol wholesale price of US$ 0.608 per liter. The most profitable case was fractionated virgin sludge (from a virgin paper mill) to ethanol (F-VK1) with a net present value (NPV) of US$ 11.4million, internal rate of return (IRR) of 28%, payback period of 4.4years and minimum ethanol revenue (MER) of US$ 0.32 per liter. Risk analysis showed that the F-VK1 case obtained a near 100% probability of business success with both central and bearish (pessimistic) assumptions.

Suggested Citation

  • Chen, Hui & Venditti, Richard & Gonzalez, Ronalds & Phillips, Richard & Jameel, Hasan & Park, Sunkyu, 2014. "Economic evaluation of the conversion of industrial paper sludge to ethanol," Energy Economics, Elsevier, vol. 44(C), pages 281-290.
    • Handle: RePEc:eee:eneeco:v:44:y:2014:i:c:p:281-290
    DOI: 10.1016/j.eneco.2014.04.018
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    References listed on IDEAS

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    1. Kierulff, Herbert, 2008. "MIRR: A better measure," Business Horizons, Elsevier, vol. 51(4), pages 321-329.
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    Cited by:

    1. Bousios, Spyridon & Worrell, Ernst, 2017. "Towards a Multiple Input-Multiple Output paper mill: Opportunities for alternative raw materials and sidestream valorisation in the paper and board industry," Resources, Conservation & Recycling, Elsevier, vol. 125(C), pages 218-232.
    2. Robus, Charles L.L. & Gottumukkala, Lalitha Devi & van Rensburg, Eugéne & Görgens, Johann F., 2016. "Feasible process development and techno-economic evaluation of paper sludge to bioethanol conversion: South African paper mills scenario," Renewable Energy, Elsevier, vol. 92(C), pages 333-345.
    3. Shona M. Duncan & Malek Alkasrawi & Raghu Gurram & Fares Almomani & Amy E Wiberley-Bradford & Eric Singsaas, 2020. "Paper Mill Sludge as a Source of Sugars for Use in the Production of Bioethanol and Isoprene," Energies, MDPI, vol. 13(18), pages 1-12, September.
    4. Zabed, H. & Sahu, J.N. & Suely, A. & Boyce, A.N. & Faruq, G., 2017. "Bioethanol production from renewable sources: Current perspectives and technological progress," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 475-501.

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    More about this item

    Keywords

    Paper sludge; Mechanical fractionation; Enzymatic hydrolysis; Fermentation; Process simulation; Economic analysis;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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