Page 252 - Biofuels for a More Sustainable Future

CHAPTER 8

Life-cycle costing: Analysis of

biofuel production systems

†
Luis F. Razon*, Dinh Sy Khang , Raymond R. Tan*, Kathleen B. Aviso*,
‡
Krista Danielle S. Yu , Michael Angelo B. Promentilla*
*
Chemical Engineering Department, De La Salle University, Manila, Philippines
†
Ho Chi Minh City University of Natural Resources and Environment, Ho Chi Minh City, Vietnam
‡
School of Economics, De La Salle University, Manila, Philippines
Contents
1 Introduction 227
1.1 Life-cycle costing concepts 227
1.2 Uncertainty in life-cycle costs 235
2 Example of sensitivity analysis of biodiesel via DOE 236
2.1 Financial LCC of biodiesel 236
2.2 System description 237
2.3 Global sensitivity analysis by Latin hypercube design of experiments 240
3 Concluding remarks 251
References 252

1 Introduction
1.1 Life-cycle costing concepts

Sustainability has emerged as a key concept for the evaluation of human
activities. While it is frequently used to describe products and activities,
sustainability is a complex concept subject to many interpretations. In
1987 the United Nations released the Brundtland report which defined
sustainable development as “development that meets the needs of the pre-
sent without compromising the ability of future generations to meet their
own needs” (Brundtland, 1987). Most people would agree with this defini-
tion, but quantifying sustainability, such that claims for the sustainability of a
product or project may be validated, is difficult. The United Nations 2030
Agenda for Sustainable Development expressed the concept that sustainabil-
ity may be broken down into economic, environmental, and social dimen-
sions (United Nations, 2015). This concept provides a means of analyzing

Biofuels for a More Sustainable Future © 2020 Elsevier Inc.
https://doi.org/10.1016/B978-0-12-815581-3.00008-7 All rights reserved. 227