Ethanol from beet: economic and management aspects of production

Abstract

New Zealand has considerable reserves of energy, although liquid fuels suitable for use in the transport sector must be imported, placing a considerable burden on the overseas account. This study looks at the potential for liquid fuel production from biomass in New Zealand as an alternative to imported fuels. The production and use of alternative biomass fuels is discussed, and it becomes clear that the production of ethanol from beet presents a likely source of liquid transport fuel. Technical aspects of this ethanol production system are detailed. To determine the feasibility of such a system, a deterministic skeleton simulation model was constructed. The model was used to determine the sensitivity of a proposed beet-to-ethanol production system to changes in various key parameters. The system is most sensitive to changes in three parameters. These parameters are; firstly, the amount of land within the collection area sown in beet, especially when the beet area is small; secondly, the size of the factory, especially when small factory sizes are being considered; and thirdly, the yield of the beet crop. A scenario was specified which represented an ethanol production system in Canterbury. The model was used to determine the cost of producing ethanol from beet under these specific conditions. Results showed that in the long run, ethanol production from beet is technically and economically feasible although in the short term, some difficulties may be experienced. These difficulties are due to the high cost of ethanol production in the development stages. It is concluded that market intervention would be necessary initially to establish the infant industry although once established, the industry would be capable of producing a liquid transport fuel at a price competitive with imported liquid fuels.