Chapter 18 - Economics of Fermentation Processes

Abstract

This chapter discusses the economics of fermentation processes. Relatively high efficiency, coupled with availability and cost of agricultural raw materials, allows use of biological systems to produce needed chemical products. Prior to commercialization of a fermentation process, extensive economic evaluation is necessary. Process design follows both conventional engineering needs as well as those derived from unique biochemical inputs from laboratory and pilot plant data. The capital and gross operating cost of a conventional fermentation plant is roughly independent of the product produced. The fermentation operating costs per unit volume and per unit time will vary somewhat but will hold generally within a reasonably narrow range. That is, barring use of an exotic raw material, the cost of labor, utilities, and materials would not vary greatly if put on a unit volume and unit cycle time basis. Also, processing or extraction can vary in complexity but, by and large, they too will hold to a reasonably narrow cost range. The capital and operating costs of all auxiliary operations for fermentation and extraction per se also exert a fly wheel effect relative to total installation cost and cost of operation. Thus, the unit cost of the bulk product is much a function of fermentation yield and fermentation cycle time.