Techno-Economic Analysis of the Stabilization of Bio-Oil Fractions for Insertion into Petroleum Refineries

This study investigates the costs and greenhouse gas (GHG) emissions of a commercial-scale, 2000 dry MT/day, red oak biorefinery designed to stabilize and upgrade pyrolysis oil into drop-in fuels. Stabilization improves the compatibility of bio-oil with crude refinery intermediate streams and equipment, but the costs of this process are not known. A discounted cash flow rate of return (DCFROR) analysis is conducted to evaluate the economic feasibility of the bio-oil stabilization biorefinery based on a 30-year plant life and 10% internal rate of return. Four economic scenarios representing different biorefinery configurations and byproducts are analyzed. The installed equipment cost for the stand-alone hydrocarbons (SH) is estimated as $277 million, and the minimum fuel-selling price (MFSP) for the SH scenario is evaluated as $2.85 per gallon. With mixed alcohols as a byproduct, the MFSP can be lowered to $2.77 per gallon or to $2.33 per gallon by colocating with a refinery. Sensitivity analysis of the system indicates that feedstock cost has the most significant impact on the MFSP followed by fixed capital cost, catalyst life, and product yield. Life-cycle analysis indicates that the GHG emission reduction potential of a bio-oil stabilization biorefinery is up to 66% compared to petroleum derived gasoline.