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Exploring profitability of bioeconomy paths: Dimethyl ether from biogas as case study
- Source :
- Energy. 225:120230
- Publication Year :
- 2021
- Publisher :
- Elsevier BV, 2021.
-
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.
- Subjects :
- 020209 energy
Mechanical Engineering
Subsidy
02 engineering and technology
Building and Construction
Investment (macroeconomics)
Pollution
Industrial and Manufacturing Engineering
Cost reduction
Agricultural science
General Energy
020401 chemical engineering
Biogas
0202 electrical engineering, electronic engineering, information engineering
Economics
Production (economics)
Revenue
Profitability index
0204 chemical engineering
Electrical and Electronic Engineering
Civil and Structural Engineering
Discounted cash flow
Subjects
Details
- ISSN :
- 03605442
- Volume :
- 225
- Database :
- OpenAIRE
- Journal :
- Energy
- Accession number :
- edsair.doi...........e0d1f4abe597ed60a2342b2adc5e2c42