Early-stage design methodology for biorefinery capital appropriation

Abstract

This paper presents a methodology for enhancing the strategic investment decision-making process for retrofit forest biorefinery (FBR) implementation. This is achieved by improving the link between retrofit process design and capital appropriation activities through cost accounting. This methodology is based on step-wise screening of retrofit alternatives where (1) traditional techno-economic analysis and multivariate stochastic risk analysis are used in the first pre-screening step, and (2) an advanced analysis framework based on steady-state process modeling, product costing using principles of activity-based costing (ABC), and panel-based multicriteria decision-making (MCDM) is used in the second screening step. In the MCDM, financial- and risk-based decision-making criteria are used. A case study considering the retrofit implementation of a biorefinery into a kraft pulp and paper mill demonstrates the methodology.