Short answer

When designing processes for alternative lipid production, prioritize strategies that maximize the value extracted from the entire biomass and explore large-scale, continuous production systems to achieve cost-competitiveness.

Field: Resource Management
Source: Research Square (2021)
Method: Techno-economic modelling and simulation.
Evidence: Strong effect

Advanced techno-economic modelling indicates that single cell oils (SCOs) derived from heterotrophic microorganisms can achieve cost-competitiveness with palm oil, particularly at large production scales and with integrated co-product utilization. This resource management research insight is drawn from a 2021 study published in Research Square. Using Techno-economic modelling and simulation., researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing processes for alternative lipid production, prioritize strategies that maximize the value extracted from the entire biomass and explore large-scale, continuous production systems to achieve cost-competitiveness.

Study

Resource ManagementHigh ImpactStrong effect

Techno-economic modelling reveals SCOs can compete with palm oil at scale

Research Square · 2021

Key Findings

01Base case lipid selling price of $1.81/kg at ~8,000 tonnes/year production.
02Cost reduced to $1.20/kg at ~48,000 tonnes/year production.
03Continuous extracellular lipid production and whole-cell utilization scenarios show potential for prices as low as $0.99/kg and $0.81/kg respectively.
04Co-product sales can effectively reduce lipid cost to $0, depending on market value and carbon allocation.

Application

Design takeaway

How to apply

Use techno-economic modelling early in the design process to assess the financial feasibility of novel bio-based materials and processes, identifying critical parameters for optimization.

Project actions

01When evaluating new materials or processes, consider their economic feasibility alongside their environmental benefits.
02Use modelling tools to predict the performance and cost of your designs at different scales.

Method & Evidence

AimTo determine the minimum achievable cost for single cell oils (SCOs) as a substitute for palm oil through detailed techno-economic modelling.

MethodTechno-economic modelling and simulation.

ProcedureA comprehensive model was developed coupling a hypothetical high-performing heterotrophic microorganism with a large-scale, efficient chemical plant design. Various scenarios, including increased production volume, thermotolerant strains, zero-cost electricity, non-sterile conditions, wet extraction, continuous extracellular lipid production, and whole-cell utilization, were assessed to identify cost reduction opportunities.

ContextBiofuel and oleochemical production, sustainable material alternatives.

Variables

IV["Production scale (tonnes/year)","Strain characteristics (e.g., thermotolerance)","Process conditions (e.g., sterile vs. non-sterile)","Extraction method (wet vs. dry)","Product form (lipid only vs. whole cell)","Co-product presence and value"]

DV["Lipid selling price ($/kg)"]

CV["Microorganism type (heterotrophic)","Chemical plant design efficiency","Base raw material costs (implicitly)"]

Strengths & Limitations

Strengths

+Comprehensive techno-economic modelling approach.
+Exploration of multiple cost-reduction scenarios.
+Provides a benchmark for future research and development.

Limitations

The 'ideal case' scenario may not reflect real-world operational challenges and efficiencies.

Reliability & validity

The model's validity relies on the accuracy of its input parameters and the robustness of the techno-economic simulation. Reliability is enhanced by the detailed scenario analysis.

Think critically

How might the 'ideal case' assumptions in this model be adjusted to reflect more realistic industrial constraints, and what impact would these adjustments have on the projected cost-competitiveness?

Design Principles

"Maximize resource utilization and scale of operation to achieve economic viability for sustainable alternatives."

This research provides a crucial benchmark for the economic viability of alternative lipid sources. Designers and engineers can leverage these findings to justify investment in SCO production technologies and to identify key areas for process optimization, moving beyond purely experimental results to understand market potential.

What This Means for Your Design

This study used computer simulations to figure out the cheapest way to make a new type of oil from microbes that could replace palm oil. It found that if you make a lot of it and use all parts of the microbe, it can be as cheap as palm oil.

How to use in your project

1.Reference this study when discussing the economic feasibility of alternative materials or production methods in your design project.

Add to My Project

Quick Cite

Paragraph starter

Techno-economic modelling, as demonstrated by Karamerou et al. (2021), is a powerful tool for assessing the commercial viability of novel production methods. Their research indicated that single cell oils (SCOs) could become cost-competitive with palm oil at scale, particularly when integrated with co-product utilization strategies, suggesting that economic feasibility is a critical design consideration for sustainable alternatives.

Source

Research Square

Using techno-economic modelling to determine the minimum cost possible for a microbial palm oil substitute

journal · 2021

View source

Questions About This Research

What does the research say about techno-economic modelling reveals scos can compete with palm oil at scale?: When designing processes for alternative lipid production, prioritize strategies that maximize the value extracted from the entire biomass and explore large-scale, continuous production systems to achieve cost-competitiveness. Evidence: Research Square (2021).
Why does "Techno-economic modelling reveals SCOs can compete with palm oil at scale" matter for design?: This research provides a crucial benchmark for the economic viability of alternative lipid sources. Designers and engineers can leverage these findings to justify investment in SCO production technologies and to identify key areas for process optimization, moving beyond purely experimental results to understand market potential.
How can designers apply this research?: When designing processes for alternative lipid production, prioritize strategies that maximize the value extracted from the entire biomass and explore large-scale, continuous production systems to achieve cost-competitiveness.
What were the main findings?: Base case lipid selling price of $1.81/kg at ~8,000 tonnes/year production.. Cost reduced to $1.20/kg at ~48,000 tonnes/year production.. Continuous extracellular lipid production and whole-cell utilization scenarios show potential for prices as low as $0.99/kg and $0.81/kg respectively.. Co-product sales can effectively reduce lipid cost to $0, depending on market value and carbon allocation.
What research method was used?: Techno-economic modelling and simulation..
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2021 journal from Research Square.
What should I do differently in my next project?: Use techno-economic modelling early in the design process to assess the financial feasibility of novel bio-based materials and processes, identifying critical parameters for optimization.
What are the limitations?: The model represents an 'ideal case' and may not be fully achievable in reality; biological performance is based on hypothetical 'best possible' production.