The economics of producing sustainable aviation fuel: a regional case study in Queensland,Australia

The airline industry has a strong interest in developing sustainable aviation fuels, in order to reduce their exposure to increasing oil prices and cost liability for greenhouse gas emissions. The feasibility and cost of producing sustainable biomass‐based jet fuels at a sufficient scale to materially address these issues is an enormous challenge. This paper builds directly on the biophysical study by H.T. Murphy, D.A. O'Connell, R.J. Raison, A.C. Warden, T.H. Booth, A. Herr, A.L. Braid, D.F. Crawford, J.A. Hayward, T. Javonovic, J.G. McIvor, M.H. O'Connor, M.L. Poole, D. Prestwidge, N. Raisbeck‐Brown & L. Rye, In review, which examined a 25 year scale‐up strategy to produce 5% of projected jet fuel demand in Australia in 2020 (470 mL) in the Fitzroy region of Queensland, Australia. The strategy was based on the use of a mixed ligno‐cellulosic biomass feedstock and assumed, for the sake of exploring and quantifying the scenario, a simplified two‐step conversion process – conversion of biomass to crude bio‐oil within the region, and upgrade to jet fuel at a central Brisbane facility. This paper provides details on the costs of production in this scenario, focusing on two different strategies for biomass utilization, and two types of novel small–medium scale conversion technologies. The cost analyses have taken into account technology learning curves, different economies of scale and key cost sensitivities. The cost of biomass‐based jet fuels is estimated to be between 0.70 and 1.90 The airline industry has a strong interest in developing sustainable aviation fuels, in order to reduce their exposure to increasing oil prices and cost liability for greenhouse gas emissions. The feasibility and cost of producing sustainable biomass‐based jet fuels at a sufficient scale to materially address these issues is an enormous challenge. This paper builds directly on the biophysical study by H.T. Murphy, D.A. O'Connell, R.J. Raison, A.C. Warden, T.H. Booth, A. Herr, A.L. Braid, D.F. Crawford, J.A. Hayward, T. Javonovic, J.G. McIvor, M.H. O'Connor, M.L. Poole, D. Prestwidge, N. Raisbeck‐Brown & L. Rye, In review, which examined a 25 year scale‐up strategy to produce 5% of projected jet fuel demand in Australia in 2020 (470 mL) in the Fitzroy region of Queensland, Australia. The strategy was based on the use of a mixed ligno‐cellulosic biomass feedstock and assumed, for the sake of exploring and quantifying the scenario, a simplified two‐step conversion process – conversion of biomass to crude bio‐oil within the region, and upgrade to jet fuel at a central Brisbane facility. This paper provides details on the costs of production in this scenario, focusing on two different strategies for biomass utilization, and two types of novel small–medium scale conversion technologies. The cost analyses have taken into account technology learning curves, different economies of scale and key cost sensitivities. The cost of biomass‐based jet fuels is estimated to be between 0.70 and 1.90 $ L^?1 when the efficiency of conversion of biomass to biocrude and subsequently to aviation fuel is varied by ±10% of published values, with an average value of 1.10 $ L^?1. This is within the range of the projected 2035 conventional jet fuel price of 1.50 $ L^?1. Therefore, biomass‐based jet fuel has the potential to contribute to supply of Australia's jet fuel needs in the future.     

Alternative operation models for using a feed‐in terminal as a part of the forest chip supply system for a CHP plant

The fuel supply of forest chips has to adapt to the annual fluctuations of power and heat generation. This creates inefficiency and unbalances the capacity utilization of the fuel supply fleet in the direct fuel supplies from roadside storages to power and heat generation. Terminals can offer an alternative approach for the fleet management of fuel supplies in terms of smoothing the unbalanced fleet use towards more even year‐round operations. The aim of the study was to compare the supply costs of a conventional direct forest chip supply to an alternative fuel supply with the use of a feed‐in terminal using the discrete‐event simulation method. The influences of the terminal location, terminal investment cost, outbound terminal transport method, terminal truck utilization and quality changes of terminal‐stored forest chips for the fuel supply cost were studied in the case environment. By introducing a feed‐in terminal and a shuttle truck for the transports of terminal‐stored forest chips, the total supply cost was 1.4% higher than the direct fuel supply scenario. In terminal scenarios, the supply costs increased 1–2% if the cost of the terminal investment increased 30%, the distance to the terminal increased from 5 to 30 km or the total annual use of a terminal truck decreased 1500 h. Moreover, a 1 per cent point per month increase in the dry matter loss of terminal‐stored chips increased the total supply cost 1%. The study revealed that with the relatively low additional cost, the feed‐in terminal can be introduced to the conventional forest chip supply. Cost compensation can be gained through the higher annual use of a fuel supply fleet and more secured fuel supply to power plants by decreasing the need for supplement fuel, which can be more expensive at a time of the highest fuel demand.     

Biorefinery for combined production of jet fuel and ethanol from lipid‐producing sugarcane: a techno‐economic evaluation

Replacing fossil fuels with an economically viable green alternative at scale has proved most challenging in the aviation sector. Recently sugarcane, the most productive crop on the planet, has been engineered to accumulate lipids. This opens the way for production of far more industrial vegetable oil per acre than previously possible. This study performs techno‐economic feasibility analysis of jet fuel production from this new cost efficient and high yield feedstock. A comprehensive process model for biorefinery producing hydrotreated jet fuel (from lipids) and ethanol (from sugars), with 1 600 000 MT yr^?1 lipid‐cane processing capacity, was developed in SuperPro Designer. Considering lipid‐cane development is continuing for higher oil concentrations, analysis was performed with lipid‐cane containing 5%, 10%, 15%, and 20% lipids. Capital investments for the biorefinery ranged from 238.1 to 351.2 million USD, with jet fuel capacities of 12.6–50.5 million liters (correspondingly ethanol production of nil to 102.6 million liters). The production cost of jet fuel for different scenarios was estimated Replacing fossil fuels with an economically viable green alternative at scale has proved most challenging in the aviation sector. Recently sugarcane, the most productive crop on the planet, has been engineered to accumulate lipids. This opens the way for production of far more industrial vegetable oil per acre than previously possible. This study performs techno‐economic feasibility analysis of jet fuel production from this new cost efficient and high yield feedstock. A comprehensive process model for biorefinery producing hydrotreated jet fuel (from lipids) and ethanol (from sugars), with 1 600 000 MT yr^?1 lipid‐cane processing capacity, was developed in SuperPro Designer. Considering lipid‐cane development is continuing for higher oil concentrations, analysis was performed with lipid‐cane containing 5%, 10%, 15%, and 20% lipids. Capital investments for the biorefinery ranged from 238.1 to 351.2 million USD, with jet fuel capacities of 12.6–50.5 million liters (correspondingly ethanol production of nil to 102.6 million liters). The production cost of jet fuel for different scenarios was estimated $0.73 to $1.79 per liter ($2.74 to $6.76 per gal) of jet fuel. In all cases, the cost of raw materials accounted for more than 70% of total operational cost. Biorefinery was observed self‐sustainable for steam and electricity requirement, because of in‐house steam and electricity generation from burning of bagasse. Minimum fuel selling prices with a 10% discount rate for 20% lipid case was estimated $1.40/L ($5.31/gal), which was lower than most of the reported prices of renewable jet fuel produced from other oil crops and algae. Along with lower production costs, lipid‐cane could produce as high as 16 times the jet fuel (6307 L ha^?1) per unit land than that of other oil crops and do so using low‐value land unsuited to most other crops, while being highly water and nitrogen use efficient.     

Life cycle cost analysis of fuel ethanol produced from cassava in Thailand

Background, aim, and scope

As a net oil importer, Thailand has a special interest in the development of biofuels, especially ethanol. At present, ethanol in the country is mainly a fermentation/distillery product of cane molasses, but cassava holds superior potential for the fuel. This study aims to assess the economics of cassava-based ethanol as an alternative transportation fuel in Thailand. The scope of the study includes the cassava cultivation/processing, the conversion to ethanol, the distribution of the fuel, and all transportation activities taking place within the system boundary.

Materials and methods

The life cycle cost assessment carried out follows three interrelated phases: data inventory, data analysis, and interpretation. The functional unit for the comparison between ethanol and gasoline is the specific distance that a car can travel on 1 L ethanol in the form of E10, a 10% ethanol blend in gasoline.

Results

The results of the analysis show, despite low raw material cost compared to molasses and cane-based ethanol, that cassava ethanol is still more costly than gasoline. This high cost has put an economic barrier to commercial application, leading to different opinions about government support for ethanol in the forms of tax incentives and subsidies.

Discussion

Overall, feedstock cost tends to govern ethanol’s production cost, thus, making itself and its 10% blend in gasoline less competitive than gasoline for the specific conditions considered. However, this situation can also be improved by appropriate measures, as discussed later.

Conclusions

To make ethanol cost-competitive with gasoline, the first possible measure is a combination of increasing crop yield and decreasing farming costs (chemical purchase and application, planting, and land preparation) so as to make a 47% reduction in the cost per tonne of cassava. This is modeled by a sensitivity analysis for the cost in the farming phase. In the industrial phase of the fuel production cycle, utilization of co-products and substitution of rice husk for bunker oil as process energy tend to reduce 62% of the price gap between ethanol and gasoline. The remaining 38% price gap can be eliminated with a 16% cut of raw material (cassava) cost, which is more practical than a 47% where no savings options in ethanol conversion phase are taken into account.

Recommendations and perspectives

The life cycle cost analysis helps identify the key areas in the ethanol production cycle where changes are required to improve cost performance. Including social aspects in an LCC analysis may make the results more favorable for ethanol.     

Biodiesel production from various feedstocks and their effects on the fuel properties

Biodiesel, which is a new, renewable and biological origin alternative diesel fuel, has been receiving more attention all over the world due to the energy needs and environmental consciousness. Biodiesel is usually produced from food-grade vegetable oils using transesterification process. Using food-grade vegetable oils is not economically feasible since they are more expensive than diesel fuel. Therefore, it is said that the main obstacle for commercialization of biodiesel is its high cost. Waste cooking oils, restaurant greases, soapstocks and animal fats are potential feedstocks for biodiesel production to lower the cost of biodiesel. However, to produce fuel-grade biodiesel, the characteristics of feedstock are very important during the initial research and production stage since the fuel properties mainly depend on the feedstock properties. This review paper presents both biodiesel productions from various feedstocks and their effects on the fuel properties. JIMB 2008: BioEnergy - Special issue.     

Liquid and gaseous fuels from biotechnology: challenge and opportunities

Abstract: This paper presents challenging opportunities for production of liquid and gaseous fuels by biotechnology. From the liquid fuels, ethyl alcohol production has been widely researched and implemented. The major obstacle for large scale production of ethanol for fuel is the cost, whereby the substrate represents one of the major cost components. Various scenarios will be presented for a critical assessment of cost distribution for production of ethanol from various substrates by conventional and high rate processes. The paper also focuses on recent advances in the research and application of biotechnological processes and methods for the production of liquid transportation fuels other than ethanol (other oxygenates; diesel fuel extenders and substitutes), as well as gaseous fuels (biogas, methane, reformed syngas). Potential uses of these biofuels are described, along with environmental concerns which accompany them. Emphasis is also put on microalgal lipids as diesel substitute and biogas/methane as a renewable alternative to natural gas. The capturing and use of landfill gases is also mentioned, as well as microbial coal liquefaction. Described is also the construction and performance of microbial fuel cells for the direct high-efficiency conversion of chemical fuel energy to electricity. Bacterial carbon dioxide recovery is briefly dealt with as an environmental issue associated with the use of fossil energy.     

Whole-cell biocatalysts for biodiesel fuel production

Biodiesel fuel (BDF), which refers to fatty acid alkyl esters, has attracted considerable attention as an environmentally friendly alternative fuel for diesel engines. Alkali catalysis is widely applied for the commercial production of BDF. However, enzymatic transesterification offers considerable advantages, including reducing process operations in biodiesel fuel production and an easy separation of the glycerol byproduct. The high cost of the lipase enzyme is the main obstacle for a commercially feasible enzymatic production of biodiesel fuels. To reduce enzyme associated process costs, the immobilization of fungal mycelium within biomass support particles (BSPs) as well as expression of the lipase enzyme on the surface of yeast cells has been developed to generate whole-cell biocatalysts for industrial applications.     

Cashew nut shell oil as a potential feedstock for biodiesel production: An overview

Biodiesel outperforms diesel in emissions and engine performance. They burn efficiently in diesel engines and are eco-friendly. Since cashew nut shell liquid (CNSO) is waste, commercial biodiesel production from it should be profitable. CNSO is cheap and can reduce cashew processing factory waste. From cashew kernels, CNSL is extracted using various mechanical, thermal, and solvent extraction techniques. This article examines current research into using cashew nutshell liquid biodiesel (CNSLBD) in diesel engines. The work also discusses Indian biodiesel demand, availability, export information, life cycle cost analysis, cost economics of per hectare yield, Indian government initiative of CNSO. This review also evaluates the viability of this fuel as an alternative energy source. CNSLBD is a prospective alternative fuel that has the potential to benefit both the cashew nut industry and the energy industry. In addition to this, the study examines the procedures for extracting CNSO. According to the findings of the study, CNSO is a prospective alternative fuel that has the potential to benefit both the cashew nut industry and the energy industry.     

The characteristics of organic sludge/sawdust derived fuel

A fundamental study of the characteristics of a sludge refuse-derived fuel (RDF) and the combustion behaviors were done. The test data demonstrate good results for the development of energy recovery technology of organic sludge or waste. The ash deposit formation propensity has been based on pretreatment, temperature and the ratio of organic sludge to sawdust. The usage of organic sludge and waste as an alternative fuel is cost effective and has environmental benefits.     

Economic Assessment of Greenhouse Gas Emissions Reduction by Vehicle Lightweighting Using Aluminum and High‐Strength Steel

The life cycle greenhouse gas (GHG) reduction benefits of vehicle lightweighting (LW) were evaluated in a companion article. This article provides an economic assessment of vehicle LW with aluminum and high‐strength steel. Relevant cost information taken from the literature is synthesized, compiled, and formed into estimates of GHG reduction costs through LW. GHG emissions associated with vehicle LW scenarios between 6% and 23% are analyzed alongside vehicle life cycle costs to achieve these LW levels. We use this information to estimate the cost to remove GHG emissions per metric ton by LW, and we further calculate the difference between added manufacturing cost and fuel cost savings from LW. The results show greater GHG savings derived from greater LW and added manufacturing costs as expected. The associated production costs are, however, disproportionately higher than the fuel cost savings associated with higher LW options. A sensitivity analysis of different vehicle classes confirms that vehicle LW is more cost‐effective for larger vehicles. Also, the cost of GHG emissions reductions through lightweighting is compared with alternative GHG emissions reduction technologies for passenger vehicles, such as diesel, hybrid, and plug‐in hybrid electric powertrains. The results find intensive LW to be a competitive and complementary approach relative to the technological alternatives within the automotive industry but more costly than GHG mitigation strategies available to other industries.     

Economic impact of biofouling on a naval surface ship

In the present study, the overall economic impact of hull fouling on a mid-sized naval surface ship (Arleigh Burke-class destroyer DDG-51) has been analyzed. A range of costs associated with hull fouling was examined, including expenditures for fuel, hull coatings, hull coating application and removal, and hull cleaning. The results indicate that the primary cost associated with fouling is due to increased fuel consumption attributable to increased frictional drag. The costs related to hull cleaning and painting are much lower than the fuel costs. The overall cost associated with hull fouling for the Navy's present coating, cleaning, and fouling level is estimated to be $56M per year for the entire DDG-51 class or $1B over 15 years. The results of this study provide guidance as to the amount of money that can be reasonably spent for research, development, acquisition, and implementation of new technologies or management strategies to combat hull fouling.     

Recent book

In the present study, the overall economic impact of hull fouling on a mid-sized naval surface ship (Arleigh Burke-class destroyer DDG-51) has been analyzed. A range of costs associated with hull fouling was examined, including expenditures for fuel, hull coatings, hull coating application and removal, and hull cleaning. The results indicate that the primary cost associated with fouling is due to increased fuel consumption attributable to increased frictional drag. The costs related to hull cleaning and painting are much lower than the fuel costs. The overall cost associated with hull fouling for the Navy's present coating, cleaning, and fouling level is estimated to be $56M per year for the entire DDG-51 class or $1B over 15 years. The results of this study provide guidance as to the amount of money that can be reasonably spent for research, development, acquisition, and implementation of new technologies or management strategies to combat hull fouling.     

Polymer Design Strategies for Radiation‐Grafted Fuel Cell Membranes

In the past decade, fuel cell technology has been moving steadily towards commercialization, with prospects of high production volumes, in particular in electric vehicle applications. However, the cost and durability of the currently‐used materials and components fall short of the requirements for large‐scale industrialization. The development of alternative, more cost‐effective materials with competitive performance and durability attributes is therefore ongoing. Radiation‐induced graft copolymerization (“radiation grafting”) is a versatile method to modify pre‐existing polymers to introduce a variety of desired functionalities, such as ion‐exchange capacity. Here, an overview of fundamentals and recent developments in the area of radiation grafted ion‐conducting polymers for application in polymer electrolyte fuel cells (PEFCs) is provided. Key aspects of polymer design are discussed, taking into consideration the radiation chemistry of base polymer materials and the adequate choice of grafting monomers for different PEFC types. Furthermore, the current status of applications in fuel cells is highlighted.     

Biotechnological production of biodiesel fuel using biocatalysed transesterification: A review

Biotechnological production of biodiesel has attracted considerable attention during the past decade compared to chemical-catalysed production since biocatalysis-mediated transesterification has many advantages. Currently, there are extensive reports on enzyme-catalysed transesterification for biodiesel production; the related research can be classified into immobilised-extracellular and immobilised-intracellular biocatalysis and this review focusses on these forms of biocatalyst for biodiesel production. The optimisation of the most important operating conditions affecting lipase-catalysed transesterification and the yield of alkyl esters, such as the type and form of lipase, the type of alcohol, the presence of organic solvents, the content of water in the oil, temperature and the presence of glycerol, are discussed. However, there is still a need to optimise lipase-catalysed transesterification and reduce the cost of lipase production before it is applied commercially. Optimisation research of lipase-catalysed transesterification could include development of new reactor systems with immobilised biocatalysts, the use of lipases tolerant to organic solvents, intracellular lipases (whole microbial cells) and genetically modified microorganisms (intelligent yeasts). Biodiesel fuel is expensive in comparison with petroleum-based fuel and 60–70% of the cost is associated with feedstock oil and enzyme. Therefore ways of reducing the cost of biodiesel with respect to enzyme and substrate oils reported in literature are also presented.     

Metabolic systems analysis to advance algal biotechnology

Algal fuel sources promise unsurpassed yields in a carbon neutral manner that minimizes resource competition between agriculture and fuel crops. Many challenges must be addressed before algal biofuels can be accepted as a component of the fossil fuel replacement strategy. One significant challenge is that the cost of algal fuel production must become competitive with existing fuel alternatives. Algal biofuel production presents the opportunity to fine-tune microbial metabolic machinery for an optimal blend of biomass constituents and desired fuel molecules. Genome-scale model-driven algal metabolic design promises to facilitate both goals by directing the utilization of metabolites in the complex, interconnected metabolic networks to optimize production of the compounds of interest. Network analysis can direct microbial development efforts towards successful strategies and enable quantitative fine-tuning of the network for optimal product yields while maintaining the robustness of the production microbe. Metabolic modeling yields insights into microbial function, guides experiments by generating testable hypotheses, and enables the refinement of knowledge on the specific organism. While the application of such analytical approaches to algal systems is limited to date, metabolic network analysis can improve understanding of algal metabolic systems and play an important role in expediting the adoption of new biofuel technologies.     

Studies on cellulosic ethanol production for sustainable supply of liquid fuel in China

As the biggest developing country, China faces a serious challenge in satisfying its need for huge amounts of energy resources, especially for liquid fuel. The Chinese government has recently started a bioethanol project, and has produced about 1 million tons of ethanol fuel from corn and wheat in 2005. As it has the largest population in the world and limited lands for food production, cellulosic ethanol would be a more suitable choice for China. Many research projects in China on biodegradation and biotransformation of lignocellulosics have been carried out. Furthermore, understanding the biodegradation mechanism of lignocellulosics and developing practical processes for ethanol production have been ongoing. After more than 30 years of research, several pilot scale facilities have been set up, and lots of experience has been acquired. However, the calculated production cost of cellulosic ethanol is still higher than that of corn ethanol. To overcome this problem, the biorefinery conception has been introduced into research on lignocellulosics transformation. A corncob biorefinery process has been developed in Shandong University. By combining the cellulase and ethanol production with a xylose-related products production, the total production cost can be reduced. A scale of 50,000-ton/year cellulosic ethanol biorefinery is being planned to be built at Yucheng.     

The train fueling cost minimization problem with fuzzy fuel prices

The train fueling cost minimization problem is to find a scheduling and fueling strategy such that the fueling cost is minimized and no train runs out of fuel. Since fuel prices vary by location and time from month to month, we estimate them by fuzzy variables in this paper. Furthermore, we propose a fuzzy fueling cost minimization model by minimizing the expected fueling cost under the traversing time constraint, maximal allowable speed constraint, tank capacity constraint, and so on. In order to solve the model, we decompose it into a nonlinear scheduling strategy model and a linear fueling strategy model. Based on the Karush–Kuhn–Tucker conditions, we design an iterative algorithm to solve the scheduling strategy model, and furthermore design a numerical algorithm to solve the fuzzy fueling cost minimization model. Finally, some numerical examples are presented for showing the efficiency of the proposed approach on saving fueling cost.     

Transport carbon costs do not negate the benefits of agricultural carbon mitigation options

It has been suggested that some agricultural carbon (C) mitigation options will yield no net C benefit under full carbon accounting (i.e. when costs are included alongside benefits). The largest likely C cost of implementing many options is the fuel cost associated with transporting resources from the place where they are produced to the place where they are used. In this article, we show that fuel C costs of transporting resources are much lower than the C benefits of agricultural mitigation options. These findings suggest that the agricultural C mitigation options examined here will yield a net C benefit, even under full carbon accounting.     

Optimal avian migration: A dynamic model of fuel stores and site use

Birds migrating between widely separated wintering and breeding grounds may choose among a number of potential stopover sites by using different itineraries. Our aim is to predict the optimal migration schedule in terms of (1) rates of fuel deposition, (2) departure fuel loads and (3) stopover site use, when only a handful of such sites are available. We assume that reproductive success depends on the date and fuel load at arrival on the breeding grounds. On migration, the birds face a trade-off between gaining fuel and avoiding predation. To allow the optimal decision at any given moment to depend on the fuel load and the location of the bird, as well as on unpredictability in conditions, we employed stochastic dynamic programming. This technique assumes that the birds know the probability distribution of conditions in all sites, but not the particular realization they will encounter. We examined the consequences of varying aspects of the model, like (1) the shape of the relationship between arrival date and fitness, (2) the presence of stochasticity in fuel deposition rates and wind conditions, and (3) the nature of predation (i.e. whether predation risk depends on the fuel load of the birds or their feeding intensity). Optimal fuel deposition rates are predicted to be constant if there are either only predation risks of maintaining stores or only risks of acquiring fuel stores. If only fuel acquisition is risky, fuel deposition rates can be below maximum, especially if there also is an intermediate best arrival time at the breeding ground. The fuel deposition rate at a site then depends not just on the site's quality but on the qualities of all visited sites. In contrast, rates of fuel deposition are not constant if both the acquisition and the maintenance of fuel stores carry risk. Optimal departure fuel loads are just enough to reach the next site if the environment is deterministic and are simply set by the energetic cost of covering the distance. As with time-minimizing models, more fuel than necessary to reach a site is only deposited under very restricted circumstances. Such overloads are more likely to be deposited if either fuel gains or expenditure are stochastic. The size of overloads is then determined by the variance in fuel gain at the target site and the worst possible conditions during flight. Site use is modified by differences in predation risk between sites and differences in fuel deposition rates. An expression derived to predict site use under time minimization provides a good approximation in state-dependent models. In some cases, the possibility of starvation may influence optimal decisions, even when the probability of starvation under the optimal policy is low. This effect of starvation has also been found in other contexts. This revised version was published online in July 2006 with corrections to the Cover Date.     

Economic analysis of fuel ethanol production from winter hulled barley by the EDGE (Enhanced Dry Grind Enzymatic) process

A process and cost model was developed for fuel ethanol production from winter barley based on the EDGE (Enhanced Dry Grind Enzymatic) process. In this process, in addition to β-glucanases, which are added to reduce the viscosity of the mash, β-glucosidase is also added to completely hydrolyze the oligomers obtained during the hydrolysis of β-glucans to glucose. The model allows determination of capital costs, operating costs, and ethanol production cost for a plant producing 40 million gallons of denatured fuel ethanol annually. A sensitivity study was also performed to examine the effects of β-glucosidase and barley costs on the final ethanol production cost. The results of this study clearly demonstrate the economic benefit of adding β-glucosidase. Lower ethanol production cost was obtained compared to that obtained without β-glucosidase addition in all cases except one where highest β-glucosidase cost allowance and lowest barley cost were used.