Early-stage design methodology for biorefinery capital appropriation
Source abstract
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.
Source: crossref · Quality: baseline
Research context
OpenAlex topics: Capital Investment and Risk Analysis · Sustainable Supply Chain Management · Process Optimization and Integration
SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.
References (56)
Show source-provided references
1. Mao, H., Genco, J.M., Yoon, S.-H., et al., J. Biobased Mater. Bioenergy 2(2): 177(2008).10.1166/jbmb.2008.309 ↗
2. van Heiningen, A., Pulp Pap. Can. 107(6): 38(2006).
3. van Heiningen, A.R.P., “Integrated Forest Products Refinery (Ifpr),” DOE/GO/14306, University of Maine, Orono, Maine, USA, 2010.10.2172/979929 ↗
4. Amidon, T.E. and Liu, S., Biotechnol. Adv. 27(2009): 542(2009).10.1016/j.biotechadv.2009.04.012 ↗
5. Amidon, T.E., Wood, C.D., Shupe, A.M., et al., J. Biobased Mater. Bioenergy 2(2): 100(2008).10.1166/jbmb.2008.302 ↗
6. Frederick, W.J., Jr., Lien, S.J., Courchene, C.E., et al., Biomass Bioenergy 32(12): 1293(2008).10.1016/j.biombioe.2008.03.010 ↗
7. Larson, E.D., Consonni, S., Katofsky, R.E., et al., TAPPI J. 7(11): 8(2008).10.32964/TJ7.11.8 ↗
8. Larson, E.D., Consonni, S., Katofsky, R.E., et al., TAPPI J. 7(12): 4(2009).
9. Öhman, F., Wallmo, H., and Theliander, H., Nord. Pulp Pap. Res. J. 22(2): 188(2007).10.3183/npprj-2007-22-02-p188-193 ↗
10. Connor, E., “The Integrated Forest Biorefinery: The Pathway to Our Bio-Future and the Range of Product Possibilities,” TAPPI J., Bonus issue, March 2008, p. 4.
11. Hytönen, E. and Stuart, P.R., Pulp Pap. Can. 110(5): 58(2009).
12. Hytönen, E. and Stuart, P.R., J. Biobased Mater. Bioenergy 4(1): 58(2010).10.1166/jbmb.2010.1066 ↗
13. Janssen, M., “Retrofit Design Methodology Based on Process and Product Modeling,” Ph.D. thesis, École Polytechnique de Montréal, Montreal, QC, Canada, 2007.
14. Uerdingen, E., Fischer, U., Hungerbühler, K., et al., AIChE J. 49(9): 2400(2003).10.1002/aic.690490915 ↗
15. Uerdingen, E., Fischer, U., Gani, R., et al., Ind. Eng. Chem. Res. 44(6): 1842(2005).10.1021/ie049065r ↗
16. Svensson, E., Berntsson, T., and Strömberg, A.-B., Energy Policy 37(3): 813(2009).10.1016/j.enpol.2008.10.024 ↗
17. Svensson, E., Berntsson, T., Strömberg, A.-B., et al., Energy Policy 37(2): 680(2009).10.1016/j.enpol.2008.10.023 ↗
18. Ince, P.J., Bilek, E.M., and Dietenberger, M.A., “Modeling Integrated Biomass Gasification Business Concepts,” Research Paper FPL-RP-660, U.S. Department of Agriculture, Forest Service, Forest Products Laboratory, Madison, WI, USA, 2011.10.2737/fpl-rp-660 ↗
19. Bilek, E.M., Houtman, C., and Ince, P.J., TAPPI J. 10(5): 31(2011).10.32964/TJ10.5.21 ↗
20. Farragher, E.J., Kleiman, R.T., and Sahu, A.P., Eng. Econ. 44(2): 137(1999).10.1080/00137919908967513 ↗
21. Hogaboam, L.S. and Shook, S.R., For. Prod. J. 54(12): 149(2004).
22. Brierley, J.A., Cowton, C.J., and Drury, C., Int. J. Prod. Econ. 100(2): 314(2006).10.1016/j.ijpe.2004.12.020 ↗
23. Cooper, R. and Kaplan, R.S., Harv. Bus. Rev. September-October: 96(1988).
24. Cooper, R. and Kaplan, R.S., Harv. Bus. Rev. May-June: 130(1991).
25. Charles, S.L. and Hansen, D.R., Int. J. Prod. Econ. 113(1): 282(2008).10.1016/j.ijpe.2007.08.008 ↗
26. Hesford, J.W., Lee, S.-H.S., Stede, W.A.V.d., et al., in Handbook of Management Accounting Research (C.S. Chapman, A.G. Hopwood, and M.D. Shields, Eds.), Elsevier, Amsterdam, 2007, Chap. 1.
27. Haka, S., Jacobs, F., and Marshall, R., Adv. Accounting 19: 71(2002).10.1016/S0882-6110(02)19005-5 ↗
28. Smith, R. and Varbanov, P., Chem. Eng. Prog. 101(7): 29(2005).10.1039/b410395p ↗
29. Bejan, A., Tsatsaronis, G., and Moran, M., Thermal Design & Optimization, John Wiley & Sons, New York, 1996, p. 542.
30. Sadhukhan, J., Mustafa, M.A., Misailidis, N., et al., Chem. Eng. Sci. 63(2008): 503(2008).10.1016/j.ces.2007.09.039 ↗
31. Sadhukhan, J. and Smith, R., Comput. Chem. Eng. 31(2007): 535(2007).10.1016/j.cag.2007.02.028 ↗
32. Janssen, M., Naliwajka, P., and Stuart, P.R., J. Sci. Technol. For. Prod. Processes (J-FOR), in press, 1(2): (2012).
33. Janssen, M. and Stuart, P., Comput. Chem. Eng., submitted for publication.
34. Varbanov, P., Perry, S., Makwana, Y., et al., Trans IChemE 82(A6): 784(2004).10.1205/026387604774196064 ↗
35. Makwana, Y., Smith, R., and Zhu, X.X., Comput. Chem. Eng. 22(Supplement 1): S793(1998).10.1016/S0098-1354(98)00150-1 ↗
36. Sandström, J., “Finding the Fit between Engineering Design and Cost Information,” Research Report 117, Lappeenranta University of Technology, Lappeenranta, Finland, 1999.
37. Sandström, J., “Communicating Cost Information to Design Engineers Using Activity-Based Method,” Research Report 116, Lappeenranta University of Technology, Lappeenranta, 1999.
38. Pistikopoulos, E.N., Comput. Chem. Eng. 19(Supplement 1): 553(1995).10.1016/0098-1354(95)87094-6 ↗
39. Miller, K.D. and Waller, H.G., Long Range Plann. 36(2003): 93(2003).10.1016/S0024-6301(02)00205-4 ↗
40. Chadwell-Hatfield, P., Goitein, B., Horvath, P., et al., J. Appl. Bus. Res. 13(1): 95(1996).10.19030/jabr.v13i1.5775 ↗
41. Northcott, D., Capital Investment Decision-Making, Dryden, London, 1995, pp. 1-22.
42. Åberg, M., “Investments and Corporate Strategy: Aligning Investment Decisions with Overall Strategy,” Master’s thesis, School of Management, Blekinge Institute of Technology, Karlskrona, Sweden, 2006.
43. Kivijärvi, H. and Tuominen, M., in Encyclopedia of Decision Making and Decision Support Technologies (F. Adam and P. Humphreys, Eds.), Information Science Reference, Hershey, New York, 2008, Chap. 23.
44. Götze, U., Northcott, D., and Schuster, P., Investment Appraisal, Methods and Models, Springer-Verlag, Berlin Heidelberg, 2008, p. 391.
45. Angelis, D.I. and Lee, C.Y., Int. J. Prod. Res. 34(5): 1331(1996).10.1080/00207549608904968 ↗
46. Sawhney, R.S., J. Manuf. Syst. 10(5): 353(1991).10.1016/0278-6125(91)90054-6 ↗
47. Emblemsvåg, J., Life-Cycle Costing: Using Activity-Based Costing and Monte Carlo Methods to Manage Future Costs and Risks, John Wiley & Sons, Hoboken, NJ, USA, 2003, p. 335.
48. Rivero, E.J.R. and Emblemsvåg, J., Rev. Accounting Finance 6(4): 370(2007).10.1108/14757700710835041 ↗
49. Ehrhardt, M.C. and Brigham, E.F., Corporate Finance: A Focused Approach, South-Western Cengage Learning, Mason, OH, USA, 2008, p. 680.
50. Hytönen, E., Phillips, R.B., and Stuart, P.R., AIChE Annu. Meet., Conf. Proc., AIChE, Salt Lake City, UT, USA, 2010, Conf. CD, paper 285a.
51. Hytönen, E. and Stuart, P.R., Int. J., Prod. Econ., submitted for publication.
52. Hytönen, E. and Stuart, P.R., Pulp Pap. Int. 53(10): 23(2011).
53. Larson, E.D., Consonni, S., Katofsky, R.E., et al., “A Cost-Benefit Assessment of Gasification-Based Biorefining in the Kraft Pulp and Paper Industry,” OSTI ID: 912520, Princeton University, Princeton, NJ, USA, 2006.10.2172/912520 ↗
54. Phillips, S., Aden, A., Jechura, J., et al., “Thermochemical Ethanol Via Indirect Gasification and Mixed Alcohol Synthesis of Lignocellulosic Biomass,” NREL/TP-510-41168, NREL National Renewable Energy Laboratory, Golden, CO, USA, 2007.10.2172/1218330 ↗
55. Aden, A., Ruth, M., Ibsen, K. et al., “Lignocellulosic Biomass to Ethanol Process Design and Economics Utilizing Co-Current Dilute Acid Prehydrolysis and Enzymatic Hydrolysis for Corn Stover,” NREL/TP-510-32438, NREL National Renewable Energy Laboratory, Golden, CO, 2002.10.2172/1218326 ↗
56. Forbes, D.R., Pulp Pap. 74(9): 57(2000).