Techno-Economic Analysis of Camelina-Derived Hydroprocessed Renewable Jet Fuel and its Implications on the Aviation Industry
Abstract
Although the aviation industry contributes toward global economic growth via transportation of passengers and cargo, the increasing demand for air transportation causes concern due to the corresponding increase in aircraft engine exhaust emissions. Use of alternative fuels is one pathway that has been explored for reducing emissions in the aviation industry. Hydroprocessed renewable jet (HRJ) (also known as Hydroprocessed Esters and Fatty Acids – HEFA) fuels have been approved for blending with traditional jet fuel up to 50% by volume to be used as drop-in fuels. However, limited information exists on the economic viability of these fuels. While techno-economic studies have been conducted on the HRJ production process using soybean oil, different vegetable oils possess different hydrocarbon structures that affect the yield of HRJ fuels. This study involves the techno-economic analysis of producing Camelina-derived HRJ fuel using the option of hydro-deoxygenation (HDO). The hydrodeoxygenation option requires extra hydrogen and hence affects the overall cost of HRJ fuel production. Similar studies have been conducted on the production of Camelina-derived HRJ fuels using the same path of hydrodeoxygenation with minor contributions from both decarbonylation and decarboxylation reactions. This study, however, employs the UOP Honeywell procedure using the hydrodeoxygenation chemical reaction to estimate the breakeven price of Camelina-derived HRJ fuel. In addition, the study treats the cultivation of Camelina oilseeds, extraction of oilseeds, and the conversion of HRJ fuel as separate entities. The production of Camelina oilseed, Camelina oil, and finally Camelina-derived HRJ fuel is modeled in order to estimate the breakeven price of the fuel. In addition, the information obtained from the techno-economic analysis is used to assess the breakeven carbon price. All costs are analyzed based on 2016 US dollars. The breakeven price of Camelina oilseeds is found to be $228.71 per MT assuming a yield of 2.3 MT/hectare and oilseed oil content of 35%. The nameplate capacities of the extraction and HRJ process facilities are 3000 MT/day and 378 MML per year respectively. Based on these assumptions, the breakeven price of Camelina oil for a centralized extraction facility is found to be $0.35 per liter for a 20-year operating plant, and $0.34/liter for a 30-year operating plant. The option of producing Jet A and diesel are each explored for plants operating for 20 years or 30 years. An additional scenario of investing in a hydrogen plant on site is explored. The deterministic breakeven price of HRJ fuel produced from plants that operate for 20 years is found to be $0.87 per liter for facilities using commercial hydrogen, and $1.01 per liter for facilities using self-produced hydrogen. If the plant operates for 30 years, the breakeven price of HRJ is found to be $0.85 per liter for a facility that uses utility hydrogen, and $0.99 per liter for a facility that uses self-produced hydrogen. Sensitivity analysis indicates that if the HRJ facility invests in hydrogen plant, the final breakeven price will range from $0.87 to $1.44 per liter while for the facility that uses commercial hydrogen, the breakeven price of HRJ fuel will be between $0.75 and $1.26 per liter. Investors have to pay at least additional $0.02 of capital investment cost per liter of HRJ fuel if they want to maximize the production of HRJ fuel instead of Hydroprocessed Renewable Diesel (HRD) fuel. The penalty for investing in a hydrogen plant on site ranges between $0.13 and $0.15 of capital cost per liter of fuel produced depending on the main fuel being produced and the duration of operation of the plant. Finally, the breakeven price of carbon is calculated by taking into account the difference between the calculated breakeven price of HRJ fuels and the five-year average of Jet A fuel. The range of breakeven carbon price is found to be between $109.63 and $177.53 per MT of CO2e. The results of this study serve as a preliminary assessment for investors who are interested in pursuing production of this fuel type. While the breakeven prices of the fuels may provide information to the potential investors, the breakeven carbon prices are also useful for exploring other policies regarding the establishment of aviation biofuels.
Degree
Ph.D.
Advisors
Johnson, Purdue University.
Subject Area
Alternative Energy|Agricultural economics|Aerospace engineering
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