Cuong N.
Dao
*a,
Lope G.
Tabil‡
a,
Edmund
Mupondwa‡
b,
Tim
Dumonceaux‡
b,
Xue
Li‡
b and
Ajay K.
Dalai‡
a
aDepartment of Chemical and Biological Engineering, University of Saskatchewan, 57 Campus Drive, Saskatoon, SK S7N 5A9, Canada. E-mail: cuong.dao@usask.ca
bSaskatoon Research and Development Centre, Science and Technology Branch, Agriculture and Agri-Food Canada, 107 Science Place, Saskatoon, SK S7N 0X2, Canada
First published on 18th February 2025
This study proposes an innovative biorefinery concept, integrating microbial pretreatment (MBP), wet storage (WS), and mushroom cultivation to transform herbaceous biomass into high-value products, including biofuel pellets, Turkey tail mushrooms, and ethanol. This environmentally friendly approach reduces pretreatment times, economically delignifies lignocellulosic structures, and improves the durability and enzymatic digestibility of densified pellets. The biorefinery model includes five pellet-mushroom production facilities (Pellet Plant A) and one ethanol plant (Ethanol Plant A), strategically located approximately 140 km south of Saskatoon (50°53′16.1′′N, 106°42′15.5′′W) in the province of Saskatchewan, Canada, to minimize pellet transport distances. Pellet Plant A, with a capacity of 250000 t per year, incurs unit production costs (UPC) of US$201–242 per t, primarily driven by the cost of fungal liquid inoculum preparation. These costs exceed those of conventional steam-explosion pellet plants, such as natural gas-fired (US$181 per t) and biomass-fired systems (US$166 per t). Consequently, ethanol produced at Ethanol Plant A, using these pellets, costs US$1.32 per L, compared to US$0.89 per L for centralized MBP straw bales-to-ethanol plants and US$0.57 per L for conventional dilute acid pretreatment plants. The economic viability of this biorefinery concept requires a minimum ethanol selling price (MESP) of US$1.03 per L and at least 50% farmer participation to achieve a positive net present value (NPV) without mushroom credits. However, integrating revenue from Turkey tail mushroom production significantly enhances financial outcomes, increasing Pellet Plant A's NPV by up to US$10 billion. This enables a reduction in pellet selling prices, lowering the MESP to US$0.77 per L with a pellet purchasing cost of US$100 per t. These findings demonstrate the economic feasibility and sustainability of this innovative biorefinery model, emphasizing the potential of combining microbial pretreatment technologies with diversified revenue streams.
Sustainability spotlightOur work contributes to the United Nations' Sustainable Development Goals (SDGs) by promoting sustainable agriculture, affordable clean energy, and responsible production. By developing an integrated system that converts camelina straw into biofuel pellets, medicinal mushrooms, and bioethanol, this research supports SDG 7 (Affordable and Clean Energy) by creating renewable energy sources. The inclusion of microbial pretreatment and strategic plant placement minimizes waste and chemical/energy inputs and reduces transportation emissions, aligning with SDG 13 (Climate Action). Additionally, the economic viability of this model encourages sustainable agricultural practices and local economic growth, contributing to SDG 8 (Decent Work and Economic Growth) and SDG 12 (Responsible Consumption and Production). |
The Canadian prairie provinces of Alberta (AB), Saskatchewan (SK), and Manitoba (MB) possess vast grasslands, prairies, abundant farming areas, and natural resources.9 A significant portion of agricultural residues is generated in SK and AB.10 Saskatchewan has the largest share of Canadian farm area (39.2%) with 24.4 million hectares, followed by Alberta (32.0%) and Manitoba (11.1%).11–13 Camelina (Camelina sativa), an energy crop, holds promise for biofuel production due to its resilience, quick maturation cycle, and compatibility with existing machinery.14,15 Biodiesel from camelina boasts a net energy ratio of 1.47, reducing emissions compared to conventional diesel fuel.16 The leftover camelina straw (CS) can also be used for bio-ethanol or biofuel pellet production. The brown soil zone was chosen by researchers from Agriculture and Agri-Food Canada for growing camelina as a bioenergy crop.17 The most fertile area is in the dark brown soil zone, which has approximately 30 g kg−1 of organic matter.17
The sectors classified as “difficult-to-transition” including aviation, heavy-duty truck transportation, and maritime shipping, continue to pose challenges when it comes to adopting electric power, resulting in an ongoing reliance on combustion technologies of solid and liquid fuels.18 To counter the impact of burning fossil fuels and reduce greenhouse gas accumulation, incorporating renewable sources into existing energy infrastructure like co-firing solid biofuel pellets with coal and blending bio-ethanol with gasoline are practical strategies.19,20 Pelletization offers an effective strategy for utilizing agro-residues as bioenergy sources both domestically and internationally.21 The uniformity in size, shape, density, and durability of pellets, coupled with their excellent flow characteristics, low moisture content, high hydrophobicity, and elevated energy density, renders them well-suited for various applications.22 These include residential cookstoves, grills, home heating systems, and thermal power plants with fully automated control systems.23 The potential applications of ethanol extend to other “drop-in fuels” including renewable fuel oil for ships and hydrogen production.24 While ethanol cannot serve directly as aviation fuel due to the need for more complex hydrocarbons, it can serve as an intermediary for catalytic conversion to renewable aviation fuels.25 The alcohol-to-jet process using the ethanol pathway comprises four consecutive reactions: dehydration of ethanol, oligomerization, hydrogenation, and fractionation, resulting in the production of sustainable aviation fuel and renewable diesel.26,27
Given the recent surge in North American oil prices28 and projections of the global pellet market potentially doubling from US$11 billion in 2023 to US$20 billion in 2033,29 there is increasing interest in shifting from gasoline to bioethanol in vehicles and substituting solid biofuel pellets for coal/natural gas. Nevertheless, producing these biofuels necessitates thermo-physico-chemical pretreatments aimed at surmounting the resistance posed by lignocellulosic structures. These pretreatment steps augment solid biomass particle cohesion in pellet production30 and improve enzymatic accessibility during biochemical conversion.31 The increasing energy costs and the necessary pretreatment agents play a substantial role in driving up the overall pretreatment expenses.32 Consequently, this leads to an escalation in the total production costs of second-generation biofuels, especially when the expenses associated with input streams are on the rise.33
Recent studies highlight a growing interest in microbial biomass pretreatment (MBP) as an effective, economically viable approach for lignocellulosic biomass delignification.34 Biodegradation with white-rot fungi offers an environmentally sustainable strategy, facilitating the partial breakdown of complex lignocellulosic matrices.35 MBP has demonstrated improvements in both the physical robustness and enzymatic digestibility of densified biomass such as camelina straw and switchgrass pellets, achieving these enhancements with low energy and chemical requirements.36 Additionally, white-rot fungi pretreatment has been shown to improve the pellet properties of wheat straw37 and enhance pellet quality and enzymatic digestibility in switchgrass.38
To address the significant drawback of extended processing times associated with MBP, the concept of integrating indoor wet storage with fungal pretreatment is introduced as a viable approach. Rather than allowing straw bales to deteriorate in open fields or storing them in open warehouses, they can be placed in controlled environments with regulated humidity and temperature. This controlled storage enables the application and cultivation of microorganisms on the surfaces of the straw bales, optimizing conditions for fungal growth and biomass degradation.
To enhance the economic value of the biorefinery concept, we incorporated a specific white-rot fungal strain capable of developing into the edible mushroom, Trametes versicolor. T. versicolor m4D (TVm4D), a genetically modified strain that selectively degrades lignin while conserving cellulose in lignocellulosic substrates, facilitating efficient downstream sugar production.1,36,39,40 Notably, the tensile strength of camelina straw pellets increased from 2.0 MPa in untreated samples to 6.3 MPa following a 31-day treatment with TVm4D.36 The delignification capability of TVm4D facilitates the release of lignin from CS, which subsequently acts as a natural binder, enhancing the tensile strength of CS pellets and thereby reducing transportation and handling costs. Additionally, the improved enzymatic digestibility of microbially pretreated CS pellets reduces the severity of acid hydrolysis needed in upstream biorefinery processes, effectively lowering both associated costs and environmental impacts. Furthermore, the fruiting body of this strain, known as the Turkey tail mushroom, is a source of high-value medicinal compounds. T. versicolor produces nutritionally and medicinally valuable bioactive substances,41,42 including antioxidants.43,44 It also exhibits antimicrobial,45,46 anticancer,47 antidiabetic,48 and anti-obesity properties,47 alongside benefits for cardiovascular health,49 immunomodulatory effects,50 and acetylcholinesterase inhibition activity.43 Consequently, revenue generated from the sale of Turkey tail mushrooms is anticipated to lower the minimum selling price (MSP) of microbially pretreated CS pellets for local thermal power plants or biorefineries, thereby improving the overall economic viability of the proposed production concept.
To the best of the authors' knowledge, no studies have examined the pilot-to-large-scale implementation of microbial pretreatment combined with mushroom cultivation for producing solid biofuel pellets, bioethanol, and supplements. In one study, Slavens51 assessed the delignification and holocellulose degradation of 27 switchgrass bales treated with Pleurotus ostreatus (Oyster mushroom) over 81 days in a controlled moisture and temperature environment. Similarly, Li52 investigated the delignification and holocellulose degradation of rectangular and cylindrical switchgrass bales treated with P. ostreatus over nine months in a natural storage environment. Both studies focused solely on compositional analyses of treated biomass bales without evaluating the economic feasibility of food and biofuel production from these processes. Research on the technoeconomic analysis of microbial pretreatment of lignocellulosic materials for producing bioenergy and food remains scarce. Vasco-Correa and Shah53 conducted simulations to identify key technoeconomic barriers associated with fungal pretreatment of biomass sources, including perennial grasses, corn stover, agricultural residues, and hardwood. However, the study focused solely on producing fermentable sugars.
This study proposes and simulates the production of solid biofuel pellets and Turkey tail mushrooms through the pretreatment of camelina straw bales using Trametes versicolor m4D. The integrated mushroom-and-pellet production concept was applied across five locations in Saskatchewan, Canada, to supply Turkey tail mushrooms and biofuel pellets to local markets. Pellets were designated for delivery to a local cellulosic bioethanol plant for ethanol production, while the mushrooms were assumed to be marketed for supplemental and medicinal purposes. Two alternative pellet production designs-utilizing steam explosion pretreatment with camelina straw-fired and gas-fired steam boilers, respectively served as benchmark comparisons for pellet production efficiency. For ethanol production benchmarks, a centralized MBP pretreatment ethanol plant and a conventional acid pretreatment straw-to-ethanol plant were included. This study provides new insights into converting agricultural residues into biofuels and bioproducts, emphasizing reduced energy input and limited use of harmful chemicals. The scope of this analysis focuses on the domestic market within Saskatchewan, Canada.
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Fig. 1 Soil zones in southern Saskatchewan (source: Government of Saskatchewan) and the five proposed locations of the pellet plants within a 100 km radius (red circles). |
The plant capacity was plotted against the collection radius (refer to Fig. S1 in the ESI†) considering an average camelina yield of 1.967 t per ha per year as calculated from Table S1.† Assuming that a 100% farmer participation rate is impractical; a more realistic 10% participation rate was considered. The plant's feedstock collection was capped at a 100 km radius, leading to a chosen baseline capacity of 1270 t per day. Straw capacity, determined using a 1.00 to 1.66 straw-to-grain ratio,54 considers the lowest value for harvesting losses. The base-case assumes an operating time of 8400 h per year (350 days per annum), resulting in an annual feedstock requirement of approximately 444500 t per year. The relationship between feedstock supply capacity and collection area is described by using eqn (1).55
D = A·Y·F1·F2 | (1) |
The cost of CS for each pellet plant includes harvesting, baling, loading/unloading, transport, storage and fertilizers for soil preparation (refer to Table S2 in the ESI†). The transport cost was calculated based on the specific transport cost (Table S3 in the ESI†) and the total feedstock cost, as derived from previous studies (Table S4 in the ESI†). Radial and areal methods are commonly used to estimate the average transport distance.56–60 In practical applications, however, truck transportation distances deviate from straight-line measurements due to the tortuosity (τ) of the road network, which reflects its curvature and complexity.56,61 Consequently, the average transport distance can be mathematically described by using eqn (2).17 In this study, the location under consideration is Saskatchewan, home to Canada's largest croplands, facilitating efficient feedstock collection from points nearest to the processing center. Since the calculated average transportation distance inherently incorporates truck routing considerations, the influence of road tortuosity is disregarded in this analysis.
![]() | (2) |
The pellet feedstock cost at the ethanol plant's gate was calculated by adding the pellet's MSP at the pellet plant's gate to the transportation cost. This calculation considers that the pellet-specific transport cost is three times smaller than the straw bale-specific transport cost due to the higher bulk density of pellets (approximately 600 kg m−3) compared to straw bales (approximately 200 kg m−3) (refer to Table S5 in the ESI†). The distances between pellet plant locations and the ethanol plant were determined using ArcGIS Pro 3.0.1.
Three types of bioethanol plants were considered: (1) Ethanol Plant A: the microbially pretreated pellets were transported from the five Pellet Plant A sites to the plant located at the optimal location as per Section 2.1.2 to be converted to bioethanol. (2) Ethanol Plant B (Fig. S5†): the “microbially pretreated straw bale-to-ethanol” process involved the direct transportation of unprocessed CS bales from the five designated study areas to the bioethanol plant located at the same optimal point. In this scenario, a centralized MBP facility was integrated with the bioethanol plant, where the straw was stored and subjected to MBP for 30 days before being further processed at the ethanol plant. Notably, there was no densification step in this setup. (3) Ethanol Plant C (Fig. S6†): the “untreated straw bale-to-ethanol” process entailed the direct transport of untreated straw bales to the ethanol plant located at the same optimal point, without undergoing any prior MBP. In this scenario, the conventional pretreatment conditions were adjusted to align with the methods detailed in Humbird et al.64 For specific details regarding the determination of straw bale costs at the ethanol plant's entrance, please refer to Table S7 in the ESI.†
Pellet plants and bioethanol facilities were planned and simulated using SuperPro Designer software (Version 10.0, Build 7.0, Intelligen Inc., Scotch Plains, NJ, USA) with an assumed annual operational time of 8400 h (equivalent to 350 days per year) and full-capacity operation at 100%. Subsequent sections detail the design specifics for each process. Base-case and comparative scenarios for benchmarking pellet and ethanol production are illustrated in Fig. 2.
Cellulose, hemicellulose, and lignin contents of both untreated and treated samples were determined based on the two-step acid hydrolysis based on the NREL Laboratory Analytical Procedure (LAP).65 At the same time, their enzymatic saccharification was conducted in accordance with the LAP outlined by the NREL66 with details similar to those in the work from Dao et al.36. The higher heating value (HHV) of the untreated and treated CS was measured utilizing a 6400 Automatic Isoperibol calorimeter (Parr Instrument Company, Moline, IL, USA) in accordance with the guidelines outlined in ASTM D5865/D5865M-19.67 The ash content of the samples was obtained following the ASTM D7582-15.68 Feedstock characteristics of untreated CS and CS treated with TVm4D for 30 days are indicated in Table 1. As a result of MBP, the cellulose conversion of CS increased 4.7-fold, from 12.9% in untreated CS to 61.1% in CS treated with TVm4D, while the corresponding xylose yield improved 3.4-fold, from 14.6% to 50.1% (Table 2). Kinetics of reactions used for simulating solid-state fermentation MBP bioreactors are shown in Table S8 in the ESI.†
Component | Unit | Untreated CS | CS treated with TVm4D |
---|---|---|---|
a CS = camelina straw, TVm4D = T. versicolor m4D, and HHV = higher heating value. | |||
Cellulose | [wt%] | 34.2 | 19.8 |
Glucan | [wt%] | 34.2 | 19.8 |
Hemicellulose | [wt%] | 24.4 | 12.5 |
Xylan | [wt%] | 19.1 | 9.8 |
Arabinan | [wt%] | 2.4 | 1.3 |
Galactan | [wt%] | 1.5 | 0.8 |
Mannan | [wt%] | 1.3 | 0.7 |
Lignin | [wt%] | 37.3 | 23.6 |
Extractives | [wt%] | 2.8 | 3.8 |
Fungal biomass | [wt%] | 0.0 | 5.2 |
Ash content | [wt%] | 1.33 ± 0.04 | 0.96 ± 0.04 |
HHV | [MJ kg−1] | 18.59 ± 0.50 | 17.54 ± 0.40 |
Sample | Cellulose conversion* [%] | Hemicellulose conversion* [%] |
---|---|---|
a CS = camelina straw, TVm4D = T. versicolor m4D, and *: data are mean ± standard error (n = 3). | ||
Untreated CS | 12.88 ± 0.37 | 14.56 ± 0.84 |
CS treated by TVm4D | 61.13 ± 0.65 | 50.12 ± 0.75 |
Z1 processes pellet feedstock supplied by 5 Pellet Plant A from the 5 previously mentioned locations, amounting to 148.90 t per h (equivalent to 1250
760 t per year, base-case scenario). The pellets are ground to an appropriate size through mechanical comminution and mixed with water to achieve a biomass slurry with around 30% solids.
Z2 is responsible for converting the hemicellulose content of the feedstock into soluble sugars through hydrolysis reactions. It breaks down the cell wall structure, partially delignifies some lignin into soluble lignin, and reduces the cellulose crystallinity and carbohydrate lengths. The process includes a pre-steamer where the biomass slurry (30 wt%) undergoes pretreatment with low-pressure steam (100 °C and 1.02 bar).
It is anticipated that the partial delignification of microbially pretreated CS pellets would allow for a reduction in the operating conditions for subsequent dilute acid pretreatment within the bioethanol plant. This adjustment is reflected in the concentration of H2SO4 used in the acid mixer (P-1/MX-101) of Z2, with a reduced mixing ratio of 4.3 mg acid per dry g of substrate, compared to the 18 mg acid per dry g recommended by Humbird et al.64 As a result, a corresponding reduction in ammonia concentration is applied to neutralize the substrate slurry pH in the ammonia conditioner (P-19/V-103). Sulfuric acid (4.3 mg acid per dry g of feedstock) is added to the biomass stream before it enters the pretreatment reactor operating at 158 °C and 5.5 atm for 5 min. The contents of the pretreatment reactor are discharged into a flash tank to maintain a temperature of 130 °C. A secondary oligomer conversion reactor (operating at 130 °C under 5.7 atm) injects an additional 4.1 mg acid per dry g of feedstock, bringing the total acid loading to 8.4 mg acid per dry g of feedstock.
Z3 comprises a seed train system (Zymomonas mobilis), enzymatic hydrolysis reactors, and fermentation tanks. Cellulase enzyme from Z4 is mixed with pretreated hydrolysate in a specific ratio to convert cellulose to glucose. The seed train system produces Z. mobilis inoculum, which is then mixed with the main saccharified slurry along with corn steep liquor (CSL) and diammonium phosphate (DAP) before entering the fermentation tanks. Z4 involves submerged aerobic cultivation of a Trichoderma reesei-like fungus on a medium of glucose and distilled water. The bioreactors received glucose solution, nutrients, ammonia (NH3) and sulfur dioxide (SO2). The bioreactors were supplied with compressed-cooled air, corn oil for antifoam, and chilled water for maintaining the temperature.
Z5 separated the fermentation broth from Z3 into anhydrous ethanol, combustible solids, and water. Distillation took place using two distillation columns-the beer column discharges dissolved CO2 and most of the water, while the rectification column concentrated the ethanol to a near-azeotropic composition. The ethanol concentration was further increased to 99.9% using vapor-phase molecular sieve adsorption.
Z6 separated combustible substances and water for the co-generation plant (Z7) and process water system, respectively. The separated combustible substances were combined with other solid fuels (coal or biomass pellets) and natural gas and then burnt in a multi-fuel-fired furnace to supply heat for the steam boiler. The steam extracted from the steam turbine was used as high-pressure steam (H. P. steam) and low-pressure steam (L. P. steam) for the plant's operation, while the remaining steam drove the generators to produce electricity for the plant.
For Pellet Plant A, equipment purchase costs were primarily determined using the SuperPro Designer Built-In Cost Model, except for major equipment. Costs for storage tanks, seed fermentors, and the final fermentor were based on units recommended by Humbird et al.64 The indoor-wet-storage MBP combined with mushroom cultivation facility cost was estimated by calculating straw volume over a 30-day period, factoring in expenses for constructing a facility with insulation, ventilation, moisture, and lighting. Since the pellet mill was not standard in the software, the extrusion unit represented it, and its cost was sourced from vendors.
For the bioethanol plant, equipment costs were obtained from the SuperPro Designer Built-In Cost Model based on their capacities. Cost assumptions for both pellet and bioethanol plants are detailed in Table S6 (ESI).† Pellet Plant A considered minimum and maximum cost factors (A–L) for TCIs, while maximum factors were used for the ethanol plants, Pellet Plant B, and Pellet Plant C. Actual equipment costs were calculated using eqn (3).70
![]() | (3) |
![]() | (4) |
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Fig. 5 Total capital investment (TCI), total manufacturing cost (TMC), and unit production cost (UPC) of Pellet Plant A. (a) and (c) Scenario 1: cost assumption factors (A to L) were set to the minimum; (b) and (d) Scenario 2: cost assumption factors (A to L) were set to the maximum (see Table S6 in the ESI† for more details on cost scenarios). |
When examining conventional wood pellet plants, a wood pellet plant with a capacity of 22.5 t per h (equivalent to 180000 t per year) incurred costs ranging from US$18 million to US$20 million (in 2008 $), which translated to approximately US$100.8 per [t per year] to US$133.3 per [t per year].74 The specific capital investment for 250
000 t per year plants was estimated to be around US$140 [t per year]−1.75 As extrapolated from the study by Pantaleo et al.,76 the TCI of a 250
000 t per year wood pellet plant would be between US$72.3 million to US$90.7 million. Thus, considering a wood pellet plant with a capacity of 250
000 t per year (as envisioned in this study), the capital investment could amount to approximately US$36 million to US$90.7 million. Notably, these conventional plants utilized sawdust and woody biomass, which required minimal pretreatment and did not necessitate additional pretreatment facilities. On a different note, Pirraglia et al.77 presented a cost estimation of US$50 million (in 2013 $) for a torrified-wood pellet production facility with an annual capacity of 100
000 t. Extrapolating from this, a pellet plant with a capacity of 250
000 t per year would entail an estimated cost of approximately US$180 million. In summary, the TCI for a pellet plant with a capacity of 250
000 t per year, as proposed in this study, would fall within the range of US$36 million to US$180 million. The exact figure would be contingent on the pretreatment facility's cost and the prevailing market prices of equipment offered by vendors.
The HHV of CS pellets pretreated with TVm4D was 17.5 MJ kg−1 leading to a pellet UPC of US$11.5 per GJ and US$13.8 per GJ for Scenarios 1 and 2, respectively. The pellet UPC determined in this study was higher than that of torrefied-wood pellets. Specifically, the MSP of the torrefied-wood pellets at the plant gate was calculated to be US$207 per t (US$8.5 per GJ) for the 100000 t per year plant, and this slightly decreased to US$186 per t (US$7.7 per GJ) for the 200
000 t per year plant.78
The increased pellet UPC obtained in this study is probably due to the fungal liquid inoculum, currently set at a ratio of 10 mL liquid fungal inoculum per 20 dry g substrate. By refining the flow rate and concentration of the fungal inoculum, there is potential for optimizing nutrient expenses and subsequently diminishing the pellet UPC. To reduce the pellet UPC, several strategic avenues can be explored. Firstly, incorporating agricultural activities into the MBP process, such as cultivating mushrooms on straw bales (see the preliminary result in Fig. S11 of the ESI†), can add significant value to the operation. Within the MBP phase, mushrooms can be cultivated and harvested within a brief timeframe of 35–42 days before the straw bales are transported to the pellet production facility. This integration can yield additional benefits and efficiency to the entire operation. Secondly, expanding feedstock capacity by sourcing diverse agricultural residues from the province can contribute to cost efficiency. Thirdly, optimizing equipment choices, focusing on more cost-effective options that produce pellets of acceptable quality, can result in substantial savings in the initial capital investment. Lastly, considering the potential for carbon credits or government subsidies is essential, especially as the setup does not rely on fossil fuels. These multifaceted approaches hold promise for enhancing both the economic viability and sustainability of the pellet production process.
Table 3 presents the technoeconomic analysis of Pellet Plant A, B, and C. Additionally, the impact of varying CS bale costs on their pellet UPCs can be found in Fig. 6. With a feedstock price of US$48.84 per t, the results reveal that Pellet Plant C, which employs biomass-fired steam boiler and steam explosion pretreatment (with a pellet UPC of US$166 per t or US$8.9 per GJ), exhibits the most cost-efficient pellet production. Following this, Pellet Plant B achieves a pellet UPC of US$181 per t (US$9.7 per GJ), and Pellet Plant A registers the highest pellet UPC at US$242 per t (US$13.8 per GJ). The observed pellet UPC values for steam explosion pretreatment plants align with those in a previous study. For instance, steam-pretreated wheat straw pellets and steam-pretreated switchgrass pellets achieved UPCs of US$152.63 per t and US$156.31 per t, respectively.79 The primary reason for the lower pellet UPCs in scenarios where heat and steam are produced from gas-fired steam boilers, and electricity is procured from the grid, is the favorable pricing of natural gas and electricity in Saskatchewan.
Parameters | Unit | Pellet Plant A | Pellet Plant B | Pellet Plant C |
---|---|---|---|---|
a Scenario 2 of maximum cost factors, assuming zero revenue from selling mushrooms, was used for Pellet Plant A, Scenario 2 of maximum cost factors was also used for Pellet Plant B and Pellet Plant C, and values in brackets represent the percentage contribution of each factor to the total capital investment or total manufacturing cost. | ||||
Pellet unit production cost | [US$ per t] | 241.71 | 180.72 | 166.34 |
Feedstock cost | [US$ per t] | 48.84 | 48.84 | 48.84 |
Feedstock capacity | [t per year] | 443![]() |
443![]() |
443![]() |
Pellet production capacity | [t per year] | 250![]() |
344![]() |
239![]() |
Pellet yield | [t pellet per (t w.b. feedstock)] | 0.56 | 0.78 | 0.54 |
[t pellet per (t d.b. feedstock)] | 0.60 | 0.82 | 0.57 | |
Discount rate | [%] | 10 | 10 | 10 |
Equity percent of total investment | [%] | 40 | 40 | 40 |
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Capital costs | ||||
(1) Equipment purchase cost | [US$] | 22![]() ![]() |
15![]() ![]() |
12![]() ![]() |
(2) Installation | [US$] | 7![]() ![]() |
7![]() ![]() |
5![]() ![]() |
(3) Process piping | [US$] | 13![]() ![]() |
9![]() ![]() |
7![]() ![]() |
(4) Instrumentation | [US$] | 6![]() ![]() |
4![]() ![]() |
3![]() ![]() |
(5) Insulation | [US$] | 674![]() |
463![]() |
367![]() |
(6) Electrical | [US$] | 4![]() ![]() |
3![]() ![]() |
2![]() ![]() |
(7) Buildings | [US$] | 4![]() ![]() |
3![]() ![]() |
2![]() ![]() |
(8) Yard improvement | [US$] | 1![]() ![]() |
771![]() |
612![]() |
(9) Auxiliary facilities | [US$] | 8![]() ![]() |
6![]() ![]() |
4![]() ![]() |
(10) Engineering | [US$] | 17![]() ![]() |
12![]() ![]() |
9![]() ![]() |
(11) Construction | [US$] | 7![]() ![]() |
5![]() ![]() |
3![]() ![]() |
(12) Contractor's fee | [US$] | 4![]() ![]() |
3![]() ![]() |
2![]() ![]() |
(13) Contingency | [US$] | 9![]() ![]() |
6![]() ![]() |
5![]() ![]() |
(14) Working capital | [US$] | 3![]() ![]() |
4![]() ![]() |
2![]() ![]() |
(15) Startup cost | [US$] | 5![]() ![]() |
3![]() ![]() |
3![]() ![]() |
Total capital investment | [US$] | 117![]() ![]() |
86![]() ![]() |
66![]() ![]() |
Total capital investment/annual t | [US$] | 469.57 | 251.75 | 278.48 |
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Manufacturing cost | ||||
Raw materials | [US$ per year] | 27![]() ![]() |
43![]() ![]() |
24![]() ![]() |
Labor-dependent | [US$ per year] | 7![]() ![]() |
1![]() ![]() |
1![]() ![]() |
Facility-dependent | [US$ per year] | 21![]() ![]() |
15![]() ![]() |
11![]() ![]() |
Laboratory/QC/QA | [US$ per year] | 1![]() ![]() |
152![]() |
188![]() |
Utilities | [US$ per year] | 2![]() ![]() |
2![]() ![]() |
2![]() ![]() |
Total manufacturing cost | [US$ per year] | 60![]() ![]() |
62![]() ![]() |
39![]() ![]() |
Farmer participation rate | [%] | 10 | 25 | 50 | 75 | 100 |
---|---|---|---|---|---|---|
a Feedstock cost = US$48.84 per t for all cases of participation rate. Scenario 2 of maximum cost factors, assuming zero revenue from selling mushrooms was used. | ||||||
Feedstock capacity | [t per d] | 1270.0 | 3174.9 | 6349.9 | 9524.8 | 12![]() |
[t per year] | 444![]() |
1![]() ![]() |
2![]() ![]() |
3![]() ![]() |
4![]() ![]() |
|
Feedstock for pellet production | [t per h] | 40.0 | 100.0 | 201.1 | 317.5 | 449.8 |
Feedstock for heat-power production | [t per h] | 12.9 | 32.3 | 63.5 | 79.4 | 79.4 |
Pellet capacity | [t per h] | 29.8 | 73.5 | 147.2 | 231.2 | 327.1 |
Power consumed | [MW] | 6.44 | 9.10 | 13.43 | 18.13 | 23.36 |
Power generated | [MW] | 7.03 | 10.97 | 14.34 | 19.83 | 26.94 |
Total capital investment | [US$] | 117![]() ![]() |
195![]() ![]() |
312![]() ![]() |
445![]() ![]() |
594![]() ![]() |
Total manufacturing cost | [US$ per year] | 60![]() ![]() |
109![]() ![]() |
186![]() ![]() |
273![]() ![]() |
371![]() ![]() |
Unit production cost | [US$ per t] | 242.0 | 177.2 | 150.7 | 140.9 | 135.3 |
Minimum selling price | [US$ per t] | 252.0 | 183.7 | 155.8 | 145.4 | 139.5 |
The NPV of Pellet Plant A is plotted against the PSP for different production capacities (Fig. 8). The red line indicates the NPV's zero value. Evidently, the PSP demonstrates a tendency to decrease as the plant capacity increases. According to Strauss73 in their study on the pellet market, a commercial-grade biomass pellet could fetch a price of approximately US$300 per t. This price, as a result, has the potential to yield a positive NPV across all production capacity scenarios considered in this study.
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Fig. 9 Sensitivity analysis of pellet unit production cost from Pellet Plant A (Scenario 2): UPC = US$242 per t at the base case and each factor was adjusted ±30%. |
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Fig. 10 Effect of mushroom selling price on Pellet Plant A's net present value (note: Pellet Plant A-Scenario 2, pellet selling price = US$100 per t). |
The energy balance of Ethanol Plant A is also provided (refer to Table S11 in the ESI†). The energy breakdown from biomass feedstock constituted 95% of the total energy input, with the remaining 5% attributed to natural gas. The principal energy output streams were represented by ethanol, which accounted for 33% of the energy input, followed by high-pressure steam for the overall process at 26%, low-pressure steam for the process at 13%, and the turbine's shaft work at 6%. Notable energy losses occurred via the boiler's flue gas, accounting for 11% of the energy input, as well as low-pressure steam utilized in the pre-steamer, which accounted to 9% of the energy input. Additional losses within the entire process contributed to 11% of the energy input. In total, the sum of useful energy stood at 77.8% of the initial process input energy.
Parameters | Unit | A1 | A2 | B | C |
---|---|---|---|---|---|
a A1: Ethanol Plant A – microbially pretreated pellets to bioethanol plant; feedstock cost = pellet selling price without mushroom selling revenue = US$258.88 per t, A2: Ethanol Plant A – microbially pretreated pellets to bioethanol plant; feedstock cost = pellet selling price with mushroom selling revenue = US$100 per t, B: Ethanol Plant B – centralized microbially pretreated straw bales-to-bioethanol plant, C: Ethanol Plant C – untreated straw bales-to-bioethanol plant, and values in brackets represent the percentage contribution of each factor to the total capital investment or total manufacturing cost. | |||||
Ethanol unit production cost | [US$ per gal] | 5.01 | 2.90 | 3.36 | 2.15 |
[US$ per L] | 1.32 | 0.77 | 0.89 | 0.57 | |
Feedstock cost | [US$ per t] | 258.88 | 100 | 69.48 | 69.48 |
Feedstock capacity | [t per year] | 1![]() ![]() |
1![]() ![]() |
2![]() ![]() |
2![]() ![]() |
Ethanol production capacity | [gal per year] | 93![]() ![]() |
93![]() ![]() |
129![]() ![]() |
174![]() ![]() |
[L per year] | 356![]() ![]() |
356![]() ![]() |
492![]() ![]() |
661![]() ![]() |
|
Ethanol yield | [gal per (t w.b. feedstock)] | 75 | 75 | 58 | 79 |
[L per (t w.b. feedstock)] | 285 | 285 | 220 | 300 | |
[gal per (t d.b. feedstock)] | 80 | 80 | 62 | 83 | |
[L per (t d.b. feedstock)] | 304 | 304 | 235 | 315 | |
Discount rate | [%] | 10 | 10 | 10 | 10 |
Equity percent of total investment | [%] | 40 | 40 | 40 | 40 |
![]() |
|||||
Capital costs | |||||
(1) Equipment purchase cost | [US$] | 82![]() ![]() |
82![]() ![]() |
188![]() ![]() |
123![]() ![]() |
(2) Installation | [US$] | 41![]() ![]() |
41![]() ![]() |
76![]() ![]() |
62![]() ![]() |
(3) Process piping | [US$] | 49![]() ![]() |
49![]() ![]() |
113![]() ![]() |
74![]() ![]() |
(4) Instrumentation | [US$] | 24![]() ![]() |
24![]() ![]() |
56![]() ![]() |
37![]() ![]() |
(5) Insulation | [US$] | 2![]() ![]() |
2![]() ![]() |
5![]() ![]() |
3![]() ![]() |
(6) Electrical | [US$] | 16![]() ![]() |
16![]() ![]() |
37![]() ![]() |
24![]() ![]() |
(7) Buildings | [US$] | 16![]() ![]() |
16![]() ![]() |
37![]() ![]() |
24![]() ![]() |
(8) Yard improvement | [US$] | 4![]() ![]() |
4![]() ![]() |
9![]() ![]() |
6![]() ![]() |
(9) Auxiliary facilities | [US$] | 33![]() ![]() |
33![]() ![]() |
75![]() ![]() |
49![]() ![]() |
(10) Engineering | [US$] | 68![]() ![]() |
68![]() ![]() |
150![]() ![]() |
101![]() ![]() |
(11) Construction | [US$] | 27![]() ![]() |
27![]() ![]() |
60![]() ![]() |
40![]() ![]() |
(12) Contractor's fee | [US$] | 18![]() ![]() |
18![]() ![]() |
40![]() ![]() |
27![]() ![]() |
(13) Contingency | [US$] | 36![]() ![]() |
36![]() ![]() |
81![]() ![]() |
54![]() ![]() |
(14) Working capital | [US$] | 33![]() ![]() |
16![]() ![]() |
21![]() ![]() |
21![]() ![]() |
(15) Startup cost | [US$] | 21![]() ![]() |
21![]() ![]() |
46![]() ![]() |
31![]() ![]() |
Total capital investment | [US$] | 477![]() ![]() |
460![]() ![]() |
1![]() ![]() ![]() |
683![]() ![]() |
Total capital investment/annual gallon | [US$] | 5.08 | 4.90 | 7.72 | 3.92 |
Total capital investment/annual liter | [US$] | 1.34 | 1.29 | 2.03 | 1.03 |
![]() |
|||||
Manufacturing costs | |||||
Raw materials | [US$ per year] | 366![]() ![]() |
168![]() ![]() |
221![]() ![]() |
213![]() ![]() |
Labor-dependent | [US$ per year] | 5![]() ![]() |
5![]() ![]() |
10![]() ![]() |
5![]() ![]() |
Facility-dependent | [US$ per year] | 81![]() ![]() |
81![]() ![]() |
180![]() ![]() |
121![]() ![]() |
Laboratory/QC/QA | [US$ per year] | 847![]() |
847![]() |
1![]() ![]() |
814![]() |
Consumables | [US$ per year] | 5000 (0.00%) | 5000 (0.00%) | 45![]() |
30![]() |
Utilities | [US$ per year] | 15![]() ![]() |
15![]() ![]() |
21![]() ![]() |
33![]() ![]() |
Total manufacturing cost | [US$ per year] | 470![]() ![]() |
272![]() ![]() |
436![]() ![]() |
374![]() ![]() |
Revenue from selling Turkey tail mushrooms could lower the pellet production cost and selling price, thereby reducing the ethanol MESP. For instance, the MESP of Ethanol Plant A (A2 in Table 3) decreased to US$0.77 per L (US$2.90 per gal) with a pellet feedstock cost of US$100 per t, making it highly competitive with the MESP of Ethanol Plant C. A strategy to integrate the ownership of five Pellet Plant A with one Ethanol Plant A, assuming revenue from mushroom sales and zero cost for purchasing pellets for the bioethanol plant, could further reduce the MESP to US$0.41 per L, making both the pellet plants and the ethanol plant economically viable.
The elevated ethanol UPC in Ethanol Plant A resulted primarily from the high UPC of pellets from Pellet Plant A. It is crucial to note that the modeled pellet plant aimed for premium pellet production for overseas shipping. In practical applications, cost-effective equipment producing “adequate” pellets could be used to reduce capital investment and, consequently, pellet production costs. This approach is viable when pellets are destined for local power plants or biorefinery facilities within the same province.
Given that ethanol production from microbially pretreated pellets may not be economically feasible, exploring the possibility of upgrading this ethanol to aviation fuel presents an opportunity to enhance the selling price of the final biofuels. Additionally, co-firing microbially pretreated pellets alongside coal and natural gas in local power plants emerges as an alternative strategy to expedite the incorporation of renewable energy into the province's power production sector. These approaches signify potential avenues for optimizing the economic and environmental benefits of the biofuel production process.
In the correlation between pellet feedstock cost and ethanol UPC across various ethanol production capacities (Fig. 12), a minor decrease in ethanol UPC was noted with a participation rate increase from 10% to 25%. Intriguingly, a noteworthy increase in ethanol UPC was witnessed with a further increase in the participation rate to 50%. This surge was attributed to the substantial escalation in utility expenses, including costs associated with fuel (natural gas), cooling, chilling, and well water. Furthermore, to establish a competitive ethanol UPC in the market, aligning with the benchmark UPC of US$0.57 per L (US$2.15 per gal) as indicated by Ethanol Plant C and Humbird et al.,64 the cost of microbially pretreated pellets as feedstock must fall below US$50 per t. This scenario seems impossible to achieve without considering the mushroom revenue, as it only covers the cost of straw bales without accounting for the additional pretreatment and densification costs. This aligns with the current state of the cellulosic ethanol industry, where technological immaturity, declining oil prices, overly optimistic investor expectations, and regulatory uncertainties have been cited as factors contributing to the underperformance of what was once a promising biofuel technology.24 Additionally, challenges in competitiveness in comparison to conventional starch-based ethanol are apparent, as numerous commercial-scale cellulosic ethanol plants currently seem to be either idle or placed on hold.80
In the examination of the relationship between the NPV of Ethanol Plant A and the MESP across different farmer participation rates, assuming no revenue from mushroom sales (Fig. 13), the NPV remained positive when the MESP exceeded US$1.03 per L (US$3.92 per gal) and the participation rate exceeded 50%, to bring down the pellet MSP to US$155.8 per t. This figure clearly underscores the economic viability of combining the two base-case scenarios explored in this study: five instances of Pellet Plant A and one instance of Ethanol Plant A within the province of Saskatchewan. To ensure positive cash flow in this setup, assuming zero revenue from the sale of Turkey tail mushrooms, it is necessary to utilize 50% of the designated agricultural land for the production of agricultural residues for the plants. Additionally, ethanol must be sold at a minimum price of US$1.03 per L (equivalent to US$3.92 per gal). This agrees with previous studies on the importance of managing the feedstock supply, and ethanol selling price plays a key role in the viability of the biorefinery.81 In the realm of biofuel production, ensuring a reliable supply chain is imperative for success.82 A crucial component of this entails establishing a well-defined, dependable source of cellulosic material, accompanied by a clear understanding of procurement costs.81 In the context of North America, the presence of advanced biofuel technology was evident; however, a critical shortfall lay in the absence of an organized supply chain infrastructure.24 This deficiency hindered the efficient transportation and delivery of substantial quantities of biomass to biorefineries, thereby posing a significant challenge to the growth and stability of the industry.
The pellet UPC for each 250000 t per year Pellet Plant A ranges from US$201 per t to US$242 per t, driven primarily by the cost of fungal liquid inoculum preparation. These costs are higher than those of conventional steam-explosion pellet plants, such as natural gas-fired (US$181 per t) or biomass-fired systems (US$166 per t). Consequently, the ethanol produced using these pellets incurs a higher cost of US$1.32 per L, compared to US$0.89 per L for centralized microbially pretreated straw bales-to-ethanol and US$0.57 per L for conventional dilute acid pretreatment methods.
For the proposed biorefinery to achieve a positive NPV, a MESP of US$1.03 per L and at least 50% farmer participation are required. However, integrating mushroom cultivation and carbon credit revenue streams significantly enhances the economic viability of this concept. Revenue from Turkey tail mushrooms could increase the NPV of each Pellet Plant A by up to US$10 billion, enabling a reduction in pellet selling prices. This, in turn, could lower the MESP to US$0.77 per L with a pellet purchasing cost of US$100 per t, making both ethanol and pellet production economically viable.
These findings underscore the potential of combining microbial pretreatment technologies with diversified revenue streams to create sustainable and profitable bioeconomy solutions. Future research should focus on further cost reductions, co-product credits, scalability, and logistics, to facilitate the widespread adoption of this innovative biorefinery model.
MBP | Microbial pretreatment |
CS | Camelina straw |
TCI | Total capital investment |
TMC | Total manufacturing cost |
UPC | Unit production cost |
NPV | Net present value |
IRR | Internal rate of return |
PBT | Payback time |
ROI | Return on investment |
MESP | Minimum ethanol selling price |
PSP | Pellet selling price |
MSP | Minimum selling price |
Footnotes |
† Electronic supplementary information (ESI) available: Methods, Fig. S1–S12, Tables S1–S11, and R code session. See DOI: https://doi.org/10.1039/d4su00769g |
‡ These authors contributed equally to this work. |
This journal is © The Royal Society of Chemistry 2025 |