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Exploring profitability of bioeconomy paths: Dimethyl ether from biogas as case study

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  • Baena-Moreno, Francisco M.
  • Gonzalez-Castaño, Miriam
  • Arellano-García, Harvey
  • Reina, T.R.

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 m3/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.

Suggested Citation

  • Baena-Moreno, Francisco M. & Gonzalez-Castaño, Miriam & Arellano-García, Harvey & Reina, T.R., 2021. "Exploring profitability of bioeconomy paths: Dimethyl ether from biogas as case study," Energy, Elsevier, vol. 225(C).
    • Handle: RePEc:eee:energy:v:225:y:2021:i:c:s0360544221004795
    DOI: 10.1016/j.energy.2021.120230
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    1. Ashton Swartbooi & Kutemba K. Kapanji-Kakoma & Nicholas M. Musyoka, 2022. "From Biogas to Hydrogen: A Techno-Economic Study on the Production of Turquoise Hydrogen and Solid Carbons," Sustainability, MDPI, vol. 14(17), pages 1-14, September.
    2. Bose, A. & O'Shea, R. & Lin, R. & Long, A. & Rajendran, K. & Wall, D. & De, S. & Murphy, J.D., 2022. "Evaluation of a biomethane, food and biofertiliser polygeneration system in a circular economy system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 170(C).
    3. Marcello De Falco & Gianluca Natrella & Mauro Capocelli & Paulina Popielak & Marcelina Sołtysik & Dariusz Wawrzyńczak & Izabela Majchrzak-Kucęba, 2022. "Exergetic Analysis of DME Synthesis from CO 2 and Renewable Hydrogen," Energies, MDPI, vol. 15(10), pages 1-20, May.
    4. Frank K. Radosits & Amela Ajanovic & Michael Harasek, 2024. "The relevance of biomass‐based gases as energy carriers: A review," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 13(4), July.

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