Techno-economic identification of production factors threatening the competitiveness of algae biodiesel

Abstract

The majority belief is that microalgae is the most promising potential feedstock for biodiesel production while it can also be used for treating wastewater. After the microalgae biodiesel is mixed with proper additives, it can even outperform some conventional fossil fuels, not to mention its environmentally friendly nature. Although the mainstream view is that microalgae production costs are small and will be even smaller once mass production is implemented, no reviewable reports are traceable to support these claims. Only a few studies are available that address the commercialization aspects of microalgae mass production and the economy of its subsequent refining into biodiesel. The prevailing view is that microalgae cultivation is fully mastered, while most production costs refer to energy consumption, where there is much room for optimization. The current review focuses on the financial aspects of microalgae production via bioreactors. Economic considerations are also given to the less common alternatives such as harvesting from natural habitats, production of biogas, or nutrient regeneration. Synergies from the combination of these methods are also taken into account. Our analysis confirmed that the cost-competitive microalgae biodiesel business strongly depends on the microalgae production cost, which is strongly defined by the running cost of the production technology. However, it is claimed that no technology could be found that was ready to be transformed into commercial dimensions and made it possible to produce microalgae at a price that creates at least a remote possibility of running profitable algae biodiesel business in the current state of the market.