Roadmap for Deployment of Modularized Hydrothermal Liquefaction: Understanding the Impacts of Industry Learning, Optimal Plant Scale, and Delivery Costs on Biofuel Pricing

Hydrothermal liquefaction (HTL) is a promising technology for converting abundant organic wastes into fuels. Previous techno-economic analyses (TEAs) of HTL have been used to estimate the minimum fuel selling price (MFSP) of biofuel products, but these analyses often assume a bespoke plant design where each plant operates under unique process conditions and neglect transportation costs. However, transportation costs must be included in realistic TEAs, and further, a mass-produced fixed-scale modular plant design approach may be more effective than case-by case plant design, provided that there is sufficient market capacity to benefit from modularization. This study estimates fuel price behavior in the presence of transportation costs and benefits stemming from modular plant design. This analysis indicates that a modular process capable of handling 60 dry tons per day (DTPD) is optimal, resulting in a similar to 25% reduction in MFSP (from $4.70/GGE, fully upgraded) at complete market feedstock utilization compared with case-by-case design. The associated cost reductions are attributable to learning benefits and modularization. Several HTL deployment roadmaps are then explored, with each roadmap consisting of different periods of case by-case design followed by adoption of a modularized approach. A period of nonmodular industry growth up to market saturation of similar to 7% followed by implementation of modular plant design strikes a balance between the investment risk and learned cost reductions associated with modular plant design. However, if bespoke plants built during this period of nonmodular growth saturate more than 23% of available feedstock, learned cost reductions are significantly diminished. This study points to the potential benefits of modularized and decentralized waste-to-energy processes when the modularization follows an optimal deployment strategy.

Automated summary

This study examines the application of hydrothermal liquefaction (HTL) technology in biofuel production and highlights the importance of transportation costs and modular plant design. The research findings indicate that a modular plant design capable of handling 60 dry tons per day can significantly reduce the fuel selling price.