The economic feasibility and environmental ramifications of biobutanol production in Malaysia

Abstract

The economic feasibility to produce commercial biobutanol from waste biomass is investigated. For this purpose, a partial equilibrium model of the Malaysian agricultural sector is employed to determine the large-scale impact of commercial acetone-butanol-ethanol production on the agricultural markets. The results indicate that Malaysian palm oil mills could produce biobutanol from waste biomass onsite at the mills because they do not pay the feedstock and hauling costs of waste biomass. The results indicate that biobutanol would peak at 225.4 million liters for a price of $0.50 per liter, and, in 2063, would cause no change in the agricultural price index, employ an additional 36 workers, and increase deforestation by an additional 1470 ha. Commercial biobutanol production could also offset significant carbon dioxide equivalent emissions if the Malaysian government subsidizes and boosts biobutanol production. Biobutanol could help Malaysia meet its greenhouse gas targets in the Paris Agreement. The results further indicate that a 1% per year reduction in capital and operating costs would significantly raise biobutanol production. Unless new genetically engineered bacterium improves their tolerance to higher butanol concentrations, microorganisms that increases biobutanol yield would neither reduce the capital and operating costs nor increase biobutanol production.