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Microalgae biodiesel production in China: A preliminary economic analysis

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  • Sun, Jun
  • Xiong, Xiaoqian
  • Wang, Mudan
  • Du, Hua
  • Li, Jintao
  • Zhou, Dandan
  • Zuo, Jian

Abstract

Despite strong governmental support, microalgae biodiesel has failed to report rapid growth in China. Thus, it is imperative to conduct an economic analysis on microalgae biodiesel so that useful inputs could be provided for policy making. The analysis is based on a model with a 100-ha production facility. In addition, a sensitivity analysis is performed in this study to determine critical factors contributing to the economic feasibility of microalgae biodiesel. Furthermore, a learning curve is employed to predict the production cost from 2019 to 2022. The production cost is estimated as USD 2.29/kg, which is significantly higher than that of commercial diesel. The findings highlight that biodiesel projects lack economic feasibility and the main barriers are microalgae productivity, annual operating days and product benefits. According to the learning curve prediction, these issues cannot be alleviated within a short period, particularly considering the limitations associated with the current policies. The study concludes with policy implications e.g. a policy system to facilitate the development of microalgae biodiesel.

Suggested Citation

  • Sun, Jun & Xiong, Xiaoqian & Wang, Mudan & Du, Hua & Li, Jintao & Zhou, Dandan & Zuo, Jian, 2019. "Microalgae biodiesel production in China: A preliminary economic analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 296-306.
    • Handle: RePEc:eee:rensus:v:104:y:2019:i:c:p:296-306
    DOI: 10.1016/j.rser.2019.01.021
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    8. Vasistha, S. & Khanra, A. & Clifford, M. & Rai, M.P., 2021. "Current advances in microalgae harvesting and lipid extraction processes for improved biodiesel production: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    9. Polat, Ece & Yüksel, Ebubekir & Altınbaş, Mahmut, 2020. "Effect of different iron sources on sustainable microalgae-based biodiesel production using Auxenochlorella protothecoides," Renewable Energy, Elsevier, vol. 162(C), pages 1970-1978.
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    11. Mizik, Tamás & Gyarmati, Gábor, 2022. "A biodízel-termelés gazdasági és fenntarthatósági vizsgálata szakirodalom-elemzéssel [Systematic literature review on the economic dimension and sustainability aspects of biodiesel production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 643-669.
    12. Ferreira, G.F. & Ríos Pinto, L.F. & Maciel Filho, R. & Fregolente, L.V., 2019. "A review on lipid production from microalgae: Association between cultivation using waste streams and fatty acid profiles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 448-466.
    13. Tamás Mizik & Gábor Gyarmati, 2021. "Economic and Sustainability of Biodiesel Production—A Systematic Literature Review," Clean Technol., MDPI, vol. 3(1), pages 1-18, January.
    14. Chiu-Mei Kuo & Yu-Ling Sun & Cheng-Han Lin & Chao-Hsu Lin & Hsi-Tien Wu & Chih-Sheng Lin, 2021. "Cultivation and Biorefinery of Microalgae ( Chlorella sp.) for Producing Biofuels and Other Byproducts: A Review," Sustainability, MDPI, vol. 13(23), pages 1-30, December.
    15. Singh, Kripal & Ansari, Faiz Ahmad & Ingle, Kapilkumar Nivrutti & Gupta, Sanjay Kumar & Ahirwal, Jitendra & Dhyani, Shalini & Singh, Shraddha & Abhilash, P.C. & Rawat, Ismael & Byun, Chaeho & Bux, Fai, 2023. "Microalgae from wastewaters to wastelands: Leveraging microalgal research conducive to achieve the UN Sustainable Development Goals," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    16. Lim, Yi An & Ilankoon, I.M.S.K. & Chong, Meng Nan & Foo, Su Chern, 2023. "Improving microalgae growth and carbon capture through micro-size bubbles generation in flat-panel photobioreactors: Impacts of different gas sparger designs on mixing performance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    17. Avinash, A. & Sasikumar, P. & Pugazhendhi, Arivalagan, 2020. "Analysis of the limiting factors for large scale microalgal cultivation: A promising future for renewable and sustainable biofuel industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    18. Zhang, Long & Bai, Wuliyasu, 2021. "Sustainability of crop–based biodiesel for transportation in China: Barrier analysis and life cycle ecological footprint calculations," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    19. Teng, Sin Yong & Loy, Adrian Chun Minh & Leong, Wei Dong & How, Bing Shen & Chin, Bridgid Lai Fui & Máša, Vítězslav, 2019. "Catalytic thermal degradation of Chlorella Vulgaris: Evolving deep neural networks for optimization," MPRA Paper 95772, University Library of Munich, Germany.

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