Comparative Economic Analysis of the Utilization of Biogas from Sugarcane Vinasse in Electricity Generation, Transport Fuel and Natural Gas Substitution: A Brazilian case Study

Abstract

This work presents a comparative economic analysis of three utilization of biogas from sugarcane vinasse: electricity production, transport fuel and natural gas substitution. Based on the assumptions from a Brazilian case study, the injection of biogas in the natural gas network was the most attractive alternative among the three utilizations studied, presenting NPV > 0 in four of the seven scenarios studied. The option of using biogas as transport fuel was viable in only one scenario out of the seven studied. In a favorable economic scenario, it is possible that this utilization will be attractive. The option of electricity generation, even in a favorable economic scenario, was far from reaching a reversal of the negative results of the economic analysis. Analyzes have shown results that reinforce the need for a closer look both from the academic community and governments. The academic community plays a vital role in efforts to increase efficiency and productivity. The role of the Brazilian government must include the search for less bureaucracy, lower tax burden, better infrastructure, lower interest rates, greater legal security and lower inflation and also the creation of financing lines for both academic studies and business projects.Graphical Abstract