Life-cycle costing: Analysis of biofuel production systems
College
Gokongwei College of Engineering
Department/Unit
Chemical Engineering
Document Type
Article
Source Title
Biofuels for a More Sustainable Future: Life Cycle Sustainability Assessment and Multi-Criteria Decision Making
First Page
227
Last Page
253
Publication Date
1-1-2019
Abstract
The economic feasibility of biofuels depends not only on investment costs but also on other costs incurred throughout the product life cycle. Such factors include agricultural inputs, which determine the cost of the feedstock, other raw materials, interest rates, labor cost, plant capacity, energy, transport, and administrative overhead. These factors depend on geographic location, time period, and even political decisions. In addition, the total cost relates to these input factors in a nonlinear manner and many of these factors interact with each other such that variations in cost can result in investment risks. To help decision makers, the volatility of these factors needs to be quantified such that their impact can be rapidly assessed. A design-of-experiments method has been demonstrated as an effective means of identifying the factors which are significant to the total cost. The method provides simple equations that capture the relationships between the variables. A case study shows how this method may be applied to biodiesel. © 2020 Elsevier Inc. All rights reserved.
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Digitial Object Identifier (DOI)
10.1016/B978-0-12-815581-3.00008-7
Recommended Citation
Razon, L. F., Khang, D. S., Tan, R. R., Aviso, K. B., Yu, K. S., & Promentilla, M. B. (2019). Life-cycle costing: Analysis of biofuel production systems. Biofuels for a More Sustainable Future: Life Cycle Sustainability Assessment and Multi-Criteria Decision Making, 227-253. https://doi.org/10.1016/B978-0-12-815581-3.00008-7
Disciplines
Chemical Engineering
Keywords
Life cycle costing; Biomass energy
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