Biofuels and Bioenergy

Techno-Economic Analysis of Biofuels

Techno-economic analysis (TEA) of biofuels is essential for assessing their feasibility, cost-effectiveness, and long-term viability compared to fossil fuels and other renewable energy sources. This analysis integrates technical performance with economic considerations, including feedstock costs, production processes, capital investment, operating expenses, and market competitiveness. The choice of feedstock significantly influences the economic viability of biofuels, as first-generation biofuels from food crops often face price volatility, whereas second- and third-generation biofuels derived from lignocellulosic biomass and algae offer higher sustainability but require advanced processing technologies. Production costs depend on factors such as biomass availability, conversion efficiency, and energy input, with thermochemical (pyrolysis, gasification) and biochemical (fermentation, enzymatic hydrolysis) pathways affecting overall expenses.Capital investment in biofuel refineries, including infrastructure, equipment, and technology development, remains a major economic barrier. While large-scale biorefineries benefit from economies of scale, small and decentralized facilities face higher per-unit costs.