TABLE 5.
Microalgal culturing facility capital and operating costs, product income potential, net profit value and sensitivity analyses.
| Size of Tolypothrix facility [ha] | 10 | ||
| Microalgal culturing facility costs | |||
| Direct unavoidable capital costs | Units | Cost (USD) ha–1 | Cost (USD) 10 ha–1 |
| Open raceway pond construction | $ ha–1 | 35,436 | 354,368 |
| CO2 feed system | $ ha–1 | 6,717 | 67,170 |
| Water and nutrient system | $ ha–1 | 15,832 | 158,321 |
| Harvesting and dewatering system | $ ha–1 | 12,606 | 126,057 |
| Total unavoidable direct capital cost | $ | 705,916 | |
| Direct capital costs avoided by co-location | 147,526 | ||
| Land acquisition Co-located (assumed land owned by partner industry) | $ ha–1 | 14,753 | |
| Total avoidable capital cost | $ | 147,526 | |
| Grand total of all capital cost | $ | 853,442 | |
| Standardized indirect capital costs | |||
| Engineering Fees – unavoidable | 15% capital | 105,887 | |
| Land acquisition fees – avoidable | 15% capital | 22,129 | |
| Engineering fees – total | 15% capital | 128,016 | |
| Contingency – unavoidable | 5% capital | 35,296 | |
| Contingency – avoidable | 5% capital | 7,377 | |
| Contingency – total | 5% capital | 42,673 | |
| Total indirect costs - unavoidable | $ | 141,183 | |
| Total indirect costs - avoidable | $ | 29,505 | |
| Total indirect costs | $ | 170,688 | |
| Working capital - all unavoidable | 5%capital | 51,206 | |
| Operational costs | |||
| Operational costs not co-located | Units | ||
| Labor-plant manager/supervisor | 1 person ($) | 81,072 | |
| Labor-Engineer | 1 person ($) | 60,333 | |
| Labor-Lab analyst | 2 persons ($) | 90,499 | |
| Labor-Administration | 1 person ($) | 43,364 | |
| Labor-Technician/pond operator | 2 persons ($) | 71,645 | |
| Maintenance and insurance | 10%B | 84,710 | |
| Phosphate input | $ t–1 | 35,757 | |
| Water requirement-avoidable if co-located with waste water industry | $ | 1,217,646 | 1,217,646 |
| CO2 purchase - unpaid able if co-located with coal fired power stations | $ | 397,127 | 397,127 |
| Energy demand cultivation, dewatering and drying | $ y–1 | 10,980 | 10,980 |
| Costs for pigment extraction and purificationA | $ t–1 biomass | 347,500 | |
| Total annual operating costs when not co-located | $ | 2,440,633 | |
| Operational costs when co-located | |||
| Labor-plant manager/supervisor | 1 person ($) | 81,072 | |
| Labor-Engineer | 1 person ($) | 60,333 | |
| Labor-Lab analyst | 2 persons ($) | 90,499 | |
| Labor-Administration | 1 person ($) | 43,364 | |
| Labor-Technician/pond operator | 2 persons ($) | 71,645 | |
| Maintenance and insurance | 10%B | 17,703 | |
| Phosphate input | $ t–1 | 35,757 | |
| Ash dam water | $ | 0 | |
| Flue gas | $ | 0 | |
| Energy demand for flue gas supply (at 10% of supply charge to customer) | $ y–1 | 9,270 | 9,270 |
| Energy demand cultivation, dewatering and drying (at 10% of supply charge to customer) | $ y–1 | 1,098 | 1,098 |
| Costs for pigment extraction and purificationA | $ t–1 biomass | 347,500 | |
| Total annual operating costs when co-located | $ | 758,241 | |
| Bioproduct income | |||
| Biomass derived potential income | |||
| Food-grade phycocyanin 10.8 t ha–1 y–1 (US$ 500 kg–1) at an extraction/purification efficiency of 67%A | $ ha–1 y–1 | 3,448,155 | 34,481,550 |
| Biofertilizer/Biochar (US$ 500 t–1 DW) (117.5 t biomass dry weight) | $ ha–1 y–1 | 58,750 | 587,500 |
| Biofertilizer from 50% biomass (US$ 500 t–1 DW) (58.57 t biomass dry weight) | $ ha–1 y–1 | 29,375 | 293,750 |
| Weighted average costs of capital (WACC) | % | 10 | |
| Net profit value analyses | |||
| Profit value (PV) scenarios over a 20-year period | Co-located | Not co-located | |
| 1) Food-grade phycocyanin (sole product) | $ | 538,038,679 | 491,380,960 |
| 2) 100% of biomass converted to biofertilizer (sole product) | $ | −12,294,786 | −58,952,5056 |
| 3) 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 273,711,820 | 250,382,961 |
| 4) 100% food-grade phycocyanin and biofertilizer yields | $ | 547,423,641 | 500,765,922 |
| Sales tax and distribution costs for PV scenarios 1–4 | |||
| 1) Assumed tax and distribution costs including transport as % sales value (50%) | $ | 269,019,340 | 245,690,480 |
| 2) Assumed tax and distribution costs including transport as % sales value (50%) | $ | 0 | 0 |
| 3) Assumed tax and distribution costs including transport as % sales value (50%) | $ | 136,855,910 | 125,191,480 |
| 4) Assumed tax and distribution costs including transport as % sales value (50%) | $ | 273,711,820 | 250,382,961 |
| Net profit value for scenarios 1–4 | |||
| 1) Food-grade phycocyanin (sole product) | $ | 269,019,340 | 245,690,480 |
| 2) 100% of biomass converted to biofertilizer (sole product) | $ | −12,294,78 | −58,952,50 |
| 3) 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 136,855,910 | 125,191,480 |
| 4) 100% food-grade phycocyanin and biofertilizer yields | $ | 273,711,820 | 250,382,961 |
| Sensitivity Analyses for NPV scenarios 1–4 | |||
| Biofertilizer price at 25% (125 USD t–1) | |||
| 1) Food-grade phycocyanin (sole product) | $ | 269,019,340 | 245,690,480 |
| 2) 100% of biomass converted to biofertilizer (sole product) | $ | 0 | 0 |
| 3) 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 135,244,045 | 123,431,800 |
| 4) 100% food-grade phycocyanin and biofertilizer yields | $ | 270,488,090 | 246,863,600 |
| Food-grade phycocyanin price at 25% (125 USD kg–1) | |||
| 1) Food-grade phycocyanin (sole product) | $ | 59,067,104 | 35,738,244 |
| 2) 100% of biomass converted to biofertilizer (sole product) | $ | 0 | 0 |
| 3) 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 32,471,052 | 20,215,362 |
| 4) 100% food-grade phycocyanin and biofertilizer yields | $ | 64,942,104 | 40,430,725 |
| Net Profit Value and Sensitivity Analysis For Raceway Production Scenario for Biomass Production at 6 t DW ha–1 y–1 | |||
| Net profit value analyses | |||
| Profit Value (PV) scenarios over a 20-year period | |||
| 1. Food-grade phycocyanin (sole product) | $ | 264,058,457 | 217,400,737 |
| 2. 100% of biomass converted to biofertilizer (sole product) | $ | −16,962,887 | −63,620,607 |
| 3. 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 136,721,709 | 113,392,849 |
| 4. 100% food-grade phycocyanin and biofertilizer yields | $ | 273,443,418 | 226,785,699 |
| Sales tax and distribution costs for PV scenarios 1–4 | |||
| 1. Assumed tax and distribution costs including transport as % sales value (50%) | $ | 132,029,228 | 108,700,369 |
| 2. Assumed tax and distribution costs including transport as % sales value (50%) | $ | 0 | 0 |
| 3. Assumed tax and distribution costs including transport as % sales value (50%) | $ | 68,360,855 | 56,696,425 |
| 4. Assumed tax and distribution costs including transport as % sales value (50%) | $ | 136,721,709 | 113,392,849 |
| Net profit value for scenarios 1–4 | |||
| 1. Food-grade phycocyanin (sole product) | $ | 132,029,228 | 108,700,369 |
| 2. 100% of biomass converted to biofertilizer (sole product) | $ | −16,962,887 | −63,620,607 |
| 3. 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 68,360,855 | 56,696,425 |
| 4. 100% food-grade phycocyanin and biofertilizer yields | $ | 136,721,709 | 113,392,849 |
| Sensitivity Analyses for NPV scenarios 1–4 | |||
| Biofertilizer price at 25% (125 USD t–1) | |||
| 1. Food-grade phycocyanin (sole product) | $ | 132,029,228 | 108,700,369 |
| 2. 100% of biomass converted to biofertilizer (sole product) | $ | −20,616,184 | −67,273,904 |
| 3. 50% of biomass converted to biofertilizer + 50% food-grade phycocyanin | $ | 68,360,855 | 56,696,425 |
| 4. 100% food-grade phycocyanin and biofertilizer yields | $ | 136,721,709 | 113,392,849 |
| Food-grade phycocyanin price at $125 kg–1 | |||
| 1. Food-rade phycocyanin (sole product) | $ | 24,819,576 | 1,490,716 |
| 2. 100% f biomass converted to biofertilizer (sole product) | $ | −16,962,887 | −63,620,607 |
| 3. 50% of biomass converted to biofertilizer +50% food-grade phycocyanin | $ | 14,756,028 | 3,091,598 |
| 4. 100% food-grade phycocyanin and biofertilizer yields | $ | 29,512,057 | 6,183,197 |
A(Chaiklahan et al., 2018); BTotal direct and indirect capital.