Advancing biofuel economics through piggyback integration and earned profit sharing

Biofuel production has the advantages of reduced dependence on fossil fuels and a lower environmental impact but has been hindered by high costs, infrastructure limitations, and market uncertainties. This study introduces a groundbreaking “piggyback” biorefinery model that uniquely integrates first-generation (1G), second-generation (2G), and third-generation (3G) biofuel technologies within a shared infrastructure framework. Unlike conventional integrated approaches, the novel method strategically leverages underutilized 1G capacity and seasonal downtime to host 2G and 3G operations, significantly reducing capital expenditures and carbon footprint while enhancing process efficiency. This study further advances the techno-economic analysis (TEA) methodology by incorporating earnings before interest, taxes, depreciation, and amortization (EBITDA) alongside breakeven pricing, enabling more accurate profitability assessments. The study also pioneers an earned profit sharing (EPS) mechanism to stabilize feedstock costs and align stakeholder incentives, offering a practical pathway to de-risk investment in biofuels. Using Belize in Central America as a case study, this TEA demonstrates up to 33 % cost reduction and substantial lifecycle emission savings compared with standalone facilities. The framework presented here establishes an interim benchmark for evaluating multi-generation integrated biorefineries and provides actionable insights for accelerating the commercial viability of sustainable biofuels.