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This work presents a review of studies on the process economics of ethanol production from lignocellulosic materials published since 1996. Our objective was to identify the most costly process steps and the impact of various parameters on the final production cost, e.g. plant capacity, raw material cost, and overall product yield, as well as process configuration. The variation in estimated ethanol production cost is considerable, ranging from about 0.13 to 0.81 US$ per liter ethanol. This can be explained to a large extent by actual process differences and variations in the assumptions underlying the techno-economic evaluations. The most important parameters for the economic outcome are the feedstock cost, which varied between 30 and 90 US$ per metric ton in the papers studied, and the plant capacity, which influences the capital cost. To reduce the ethanol production cost it is necessary to reach high ethanol yields, as well as a high ethanol concentration during fermentation, to be able to decrease the energy required for distillation and other downstream process steps. Improved pretreatment methods, enhanced enzymatic hydrolysis with cheaper and more effective enzymes, as well as improved fermentation systems present major research challenges if we are to make lignocellulose-based ethanol production competitive with sugar- and starch-based ethanol. Process integration, either internally or externally with other types of plants, e.g. heat and power plants, also offers a way of reducing the final ethanol production cost.

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Background: There is currently a steady increase in the use of wood-based fuels for heat and power production in Sweden. A major proportion of these fuels could serve as feedstock for ethanol production. In this study various options for the utilization of the solid residue formed during ethanol production from spruce, such as the production of pellets, electricity and heat for district heating, were compared in terms of overall energy efficiency and production cost. The effects of changes in the process performance, such as variations in the ethanol yield and/or the energy demand, were also studied. The process was based on SO 2 -catalysed steam pretreatment, which was followed by simultaneous saccharification and fermentation. A model including all the major process steps was implemented in the commercial flow-sheeting program Aspen Plus, the model input was based on data recently obtained on lab scale or in a process development unit.