Your costings are from ten years ago. They are out of date. I suspect that the costings from the
NREL report (page 66) are closer to current values but the players in algae biofuel industry will be the only ones who know what the costs are now and those projected into the future. That is the whole purpose of the DOE funding - to find ways to reduce costs further.
$this->bbcode_second_pass_quote('', 'T')he key cost and process assumptions used in calculating the results presented in this section are summarized in the appendix.
Figure 5-3 shows how these three different growth scenarios affect the land area required for open raceway ponds to produce 37.8 ML/yr of biodiesel.
The results in Figure 5-3 help illustrate the importance of identifying the right strain. The capital costs for the reactor system increase as the areal coverage increases, which means that not only will the current case strain cover a larger area (for reference, O‘Hare International Airport in Chicago covers just over 3,000 hectares), its capital cost to produce the same amount of fuel will be higher.
Figure 5-4 shows the cost for producing 46.9 ML/yr of lipids at each algae growth scenario and the significance of the capital cost is shown. Approximately 46.9
ML/yr of lipids is required to produce 37.8 ML/yr of biodiesel.
The cost of producing lipids ranges from approximately $5.80/litre of lipid on the high end to approximately $0.75/litre of lipid on the low end. Contrast this with the current selling cost of soybean oil (approximately $0.90/litre). The blue portion of the bar represents the capital cost, which are approximately equal to operating costs and represent the main cost elements. The cultivation system represents 25-30 percent of the total capital. The percentage contribution for the raceway pond decreases with increased productivity, because the model is established for a constant lipid output.
The technology for converting algal lipids into green diesel has only recently been developed, and the process costs are not well known. Production costs for
biodiesel from vegetable oil, on the other hand is well-established. The total fuel production cost for 37.8 ML/yr of biodiesel from an algae process is shown in Figure 5-5. Land area and water requirements for each case are shown in Table 5-2. Conversion of algal lipid to biodiesel adds only a small increment to the final cost because the overall yield of biodiesel from algal lipids is 96 percent and because capital costs for a biodiesel plant are relatively low
The most apparent conclusion from the plots in Figure 5-5 is that it will take the high productivity case to produce algal biodiesel at a cost comparable to that of petroleum diesel which is hovering around $0.53/litre (EIA as of 6/02/2010). It must be noted that the biodiesel costs shown in Figure 5-5 do not include
marketing and delivery costs, and it is clear that major challenges must be met to achieve the higher productivity under real process conditions.