KINHTE ECONOMIC AND ENVIRONMENTAL IMPACTS ASSESSMENT OF BIOETHANOL PRODUCTION FROM CASSAVA IN VIETNAM • NGO HUU KHANH LINH ABSTRACT The Government of Vietnam aims to develop renewable energy sources t[.]
KINHTE ECONOMIC AND ENVIRONMENTAL IMPACTS ASSESSMENT OF BIOETHANOL PRODUCTION FROM CASSAVA IN VIETNAM • NGO HUU KHANH LINH ABSTRACT: The Government of Vietnam aims to develop renewable energy sources to replace fossil fuels Bioethanol produced from cassava is one of the most recommended alternatives In order to help tbe strategic planners have a comprehensive view of bioethanol development in Vietnam, this study uses the Life Cycle Assessment (LCA) and the Life Cycle Cost (LCC) methods to assess the environmental impacts and economic feasibility The functional unit of these models is IMJ and biofuel is applied for vehicle runnmg Based on the database of cassava cultivation, ethanol production, and practical conditions in Vietnam, the results of LCA calculation shows that usuig E5 could reduce some gasses emission, such as CO2, CO, and SO2 but increase other emissions, such as NO^, VOC, PM, NH3 From tbe economic assessments, the cost of ethanol production may get lower than that of petrol in some period However, the price of bioethanol could be higher than the price of petrol and bioethanol become uncompetitive with traditional fuels In this situation, the government should have policies to support bioethanol such as tax breaks and subsidies for manufacturers Keywords: LCA, LCC, bioethanol, cassava, Vietnam Introduction The main source of energy worldwide is from fossil fuel resources that have currently resulted in many global problems, particularly environmental impacts (Yusoff et al., 2013) The contribution of CO2 emission from energy activities are increasing rapidly because of the economic development and population growth The sector's energy consumption in Vietnam is estimated about an annual rate of 6,4% (Pham et al., 2010) This may result in increasing global environmental impacts, such as global warming potential and regional environmental impacts, such as acidification potential, PM emission Renewable energy is considered as a significant approach to reduce the dependence on fossil fuel as well as environmental burden The Vietnamese government also has been searching appropriate resources of renewable energy to substitute fossil fuel and ensure domestic energy security Vietnam has a large percent of area that is alluvial plain and located in the tropics There are many advantaged conditions to produce bioenergy from agricultural products and wastes There are currently some main ethanol plants in Phu Tho Quang Nam, Quang Ngai, and Binh Phuoc So 17-Thang 7/2020 157 TAP CHJ CONG THIfaNG Provinces Vietnamese government also promotes ethanol in by replacing fossil fuel in E5 and ElO (Document No 4377A^PCP-KGVX, 2010) However, the stakeholders should consider the alternatives of feedstock in the policy of biofuel development There are some methodologies to assess environmental impacts and economic feasibility that are particularly life cycle assessment and life cycle costing (Khang et a! 2017) Life cycle assessment is a methodology which can be used to analyzed the direct and indirect effects of product on environment from its inputoutput inventory It is a tool to recognize the key factor to improve the technology in production (Ong el al., 2012) Life cycle cost is used to determine the cost of entire production from raw material, set-up, operation, maintenance, and final disposal There are three levels of common LCC method: financial LCC environmental LCC and social LCC The financial LCC focuses on financial stream, while environmental LCC integrate economic impacts assessment into environmental impacts assessment, and social LCC could address some social impacts In this study, environmental LCC has been applied to assess environmentai-economic impacts It considers every factor in the life cycle of production chain Theoretically, LCA and LCC are two different aspects of life cycle thinking to assist decision making for sustainable practices (Halog and Manik, 2011) Environmental impact assessment and economic analysis could be integrated to identify the most efficient and feasible model of bioethanol production from a system perspective This study aims to assess the environmental impact of E5 that has been used to run vehicle without engine modification Tbe economic feasibility is also evaluated through the practical conditions of bioethanol production in Vietnam and fossil fuel cost Methodologies 2.1 LCA and LCC (XA and LCC methods have similar model thai IS based on input-outputs matrix They are 158 So 17-Thang 7/2020 generated from technical coefficient matrix A which consists rows of economic stream and columns of the processes within the system /«ll «12 «13\ A= 021 ^^22 ^23 ('^ W31 ^32 °33l Scale matrix S depends on the functional unit F which IS determined by the desired output values: S = A-'xF (3) The matrix V that is the output of LCA and LCC is calculated as following equation: V = BxS = V2 (4) B represents resource consumption or the cost ofresource 2.2 System boundary andfunctional unit The overall system boundary of LCA and LCC is shown in Figure Figure The system boundary of ethanol production r ( Cassava production i Transportation ) ) • ( L L Ethanol production 1 E5 Wending (5% ethanol, 95% petrol) Run engine ) ) ) Functional unit of LCA and LCC in this study is 1MJ produced by running \ ehicle with E5 2.3 Database The database of bioethanol production from ca-ssava is shown in Table KINH TE Table The database of cassava cultivation and ethanol production Stage Unit Value Casava cultivation Yield n ton/ha/year Compost ('*) kg N/ha/year 39 ND kg N/ha/year 138.5 PaOsD kg P205/ha/year 115.5 K20(") kg K20/ha/year 105.3 CaO(**) kg CaCOs/ha/year Pesticide {*') kg/ha/year Diesel D l/ha/year Electric (**) kWh/ha/year 26 600 Table The greenhouse gas emission of bioethanol use (E5} 22.5 Emission (g/MJ) \^lue 45 gC02eq 54.6756 gC02 eg I'l 23.2260 Ethanol production Ethanol yield (") kg ethanol /kg cassava 0.345 co^n kg/kg ethanol 0.630 Residue (**) kg/ kg cassava 0.075 HISOJC*) kg/kg ethanol 0.0031 Alpha-Amylase (**) kg/kg ethanol 0.0019 NHJD kg/kg ethanol 0.0057 Urean kg/kg ethanol 0.0047 NaOH{") kg/kg ethanol 0.0025 DAPO kg/kg ethanol 0.0034 Chemicals Source: (*) GSO statistic data (2018); f **) lEA (2017) The price of cassava that is reported by FAO is varied from 118.7 to 210.4 USD/ton The energy values of petrol and E5 that are applied in the LCA model are shown in the Table Table Energy value of petrol and E5 Fuel Energy value Petrol (MJ/I) 32.2 E5(MJ/I) Results a, J discussions 3.1 LCA results The gasses emissions of bioethanol using to run vehicle are shown in Table In comparison with traditional petrol, using E5 to replace gasoline may reduce 30% CO, emission The mitigation could be from CO2 absorption of cassava cultivation and CO2 allocated in by-product or waste of ethanol production Moreover, the CO2 emitted from ethanol distillation is lower than that of fuel processing 31.6 Source: Davis et ai, 2009 '•"the amount ofCOj allocated in by-product and waste of ethanol production Other gasses emission of E5 is shown in Table The results show that the emission of SO2 and CO of E5 is lower than traditional gasoline because ethanol does not content S and the SO2 emission from cassava cultivation is lower than cruel oil production E5 could be combusted better than gasoline in engine Thus, using E5 may reduce CO emission However, the emission of NOx, VOC, PM, NH3 of E5 is higher than the one of traditional gasohne This could be the results of using fertilizer in cassava farming and the current technologies of cassava harvest and ethanol production 3.2 Land use Land use in the whole life cycle of ethanol production is mainly from agriculture production Cassava is considered as an alternative to replace other kinds of plant which also absorb CO2 and could be agriculture products Thus, the CO, mitigation and economic feasibility evaluation of ethanol production is needed to consider what kind of land used to cultivate cassava If agriculture land is used, the amount of CO2 and some cost in the life cycle of ethanol may be allocated to the stage of plants replacement So 17-Thang 7/2020 159 TAP CRJ CONG THlTtfNG Table The gasses emission of bioethanol use (E5) Gasses emission (gMJ) SO^ NO, CO VOC PM10 NH, E6 0.021 0.625 0.088 0.084 0.034 0073 Gasoline 0.045 0.724 0.194 0.066 0.024 Vietnamese government could also use poor or impoverished soil to reduce the cost as well increase CO2 emission of ethanol production lAE report in 2017 also indicates that land use of bioenergy production is equivalent to the absorption of 539 kg C02eq/ha/year 3.3 Economic analysis The life cycle cost of ethanol includes the costs of the whole life cycle of ethanol production that are capital cost, operation cost, maintenance cost, feedstock cost, salvage value, and by-product credit (Khang et al., 2017) The cost of ethanol based on the conditions in Vietnam shown in Figure The results show that the life cycle cost of ethanol production is allocated at feedstock cost, operating cost and capital cost The feedstock cost contributes the highest percentage of the cost of ethanol production The cost of traditional petrol is variable in a wide gap in the last decade The price of petrol in Vietnam in the period of 2010 to 2019 is varied from 0.65 to 1.18 USD/liter while the cost of Figure The life cycle cost of ethanol production (USD/year) 4,50E+07 4,00E+O7 3,50E-H)7 3,00E-K)7 2,50E+07 2,00E+07 l,50E+07 1,00E-K)7 5,00E-K)6 0,00E+00 -5,O0E+06 -l,O0E+07.^^ 160 So 17-Thdng 7/2020 KINHTE ethanol is varied from 0.68 to 0.99 USD/liter This indicates that the cost of ethanol may be lower the cost of traditional petrol in some times Vietnamese government should promote producing ethanol to reduce the fuel cost as well as reduce environmental impacts However, the cost of ethanol is also higher the cost of petrol in some dmes The stakeholder may have policy to increase the subsidy for ethanol production On other hand, it is necessary to make a balance between environmental aspect and economic aspect while considering sustainable development Conclusions The results of this study show that using bioethanol could reduce greenhouse emission from energy activities, typically applying m transportation sector However, there are also some negative impacts from other gasses emissions impact and economic aspects, These results could be useful for decision makers to have a comprehensive view of ethanol development in the future It is necessary to consider other scenarios of bioethanol production, such as using poor soil for cassava cultivation, using agriculture waste and other inedible resources as feedstock • REFERENCES: Pham KT, Nguyen MB, Nguyen HD (2010) Energy supply, demand and policy in Viet Nam, with future projections Energy Policy, 39{11), 6814-26 Document no 4377A'PCP-KGVX of Government of Vietnam (2010) Implementation of the scheme on development of biofuel up lo 2015 with a vision to 2025 Government of Vietnam, No 4377A'PCP-KGVX: -2 Halog, A., & Manik, Y (2011) Advancing Integrated Systems ModeUing Framework for Life Cycle Sustainabihty Assessment Sustainability, 3(12), 469-499 Davis, S C, Diegel, S W., & Boundy, R G (2009) Transportation energy data book No ORNL-6984, Oak Ridge National Laboratory, USA GSO Statistical data: Agriculture, Foresny and Fishery, [online] Available at: default_en.aspx?tabid^778 hltps://www.gso.gov.vn/ [Assess: 24/01/2018} Yusoff, M H M., Abdullah, A, Z , Sultana, S., & Ahmad, M (2013) Prospects and current status of B5 biodiesel implementation in Malaysia Energy Policy, 62,456-462 Khang, D S , Tan R R., Uy, O M., Promentilla, M, A B , Tuan, P D., Abe, N , & Razon, L F (2017) A design of expenments approach to Che sensitivity analysis of the life cycle cost of biodiesel Clean Teclinologies and Environmental Policy, 20(3), 573-580 Ong H.C., Mahlia, T.M.I., Masjuki H.H., Honnery, D (2012) Life cycle cost and sensitivity analysis of palm biodiesel production Fuel, 98,131-139 Trading Economics database [online] Available at: htlps://tradingeconomics.com/vietnam/gaso!ine-prices-dala [Assessed: 20/7/2020] Received date: July 2,2020 Reviewed date: July 20,2020 Accepted date: July 29,2020 So 17-Thang 7/2020 161 TAP CHi CONG THlflflie Author's information: MBA NGO HUU KHANH LINH Lecturer, Faculty of Economics of Natural Resources and Environment Ho Chi Minh City University of Natural Resources and Environment SAN XUAT XANG SINH HQC TlJ SAN TAI VIET NAM: TAC DQNG MOI TRl/CfNG VA PHAN TICH CHI PHI VONG DCfl • ThS NGO HCTU K H A N H LINH Giang vi§n Khoa Kinh t e Tai n g u y e n va M6i tradng TrUdng Dgi hoc Tai n g u y e n va M6i trUdng Thanh Ho Chi Minh TOM TAT: Chinh phu Viet Nam dinh hu'dng phat trien cac nguon nang lifdng tai tao d^ thay thd' nhidn heu hoa thach Xang sinh hgc du'dc sdn xua^t tiif nguyen lieu san la mot nhiJng Iifa chgn du'dc khuye'n khich nhat De giiip cac nha hoach dinh chie'n lu'dc c6 cai nhin toan dien ve phat trien xang sinh hgc tai Viet Nam, bai vie't ap dung phUdng phdp dinh gia vdng ddi (LCA) va chi phi vong ddi (LCC) de danh gid tac dong moi tnfdng va tinh kha thi v^ kinh te Ddn vi chu'c nang cua cde md hinh la IMJ va xdng sinh hgc difdc svl dung cho viec v^n hanh xe CO Du'a tr6n cd sd dii lidu canh lac san, cong nghe sdn xuat xang sinh hgc va dilu kien thtfc te' tai Viet Nam, kd't qua tinh toan dinh gia vdng ddi cho tha'y: si3' dung xdng E5 giam mdt s6^ thai nhif CO2, CO va SO, nhuiig dong thdi lam tdng lifdng phat thai ciia mot so khac nhif NO^, VOC, PM, NH3 Tiif cac ddnh gia kinh te, chi phi san xuat xang sinh hpc cd the thap hdn so vdi xang mdt s6' giai doan Tuy nhien, no cung co the cao hdn va khong canh tranh lai vdi nhidn lieu truyen tho'ng Trong tinh huo'ng nay, Nha nu'dc can cd cde chinh sach de hd trd sdn pham nhif gidm thue', trd cap cho cac nha san xua't Tuf khda: LCA, LCC, xang sinh hgc, san, Viet Nam 162 So 17-Thdng 7/2020 ... hinh la IMJ va xdng sinh hgc difdc svl dung cho viec v^n hanh xe CO Du''a tr6n cd sd dii lidu canh lac san, cong nghe sdn xuat xang sinh hgc va dilu kien thtfc te'' tai Viet Nam, kd''t qua tinh toan... Environment Ho Chi Minh City University of Natural Resources and Environment SAN XUAT XANG SINH HQC TlJ SAN TAI VIET NAM: TAC DQNG MOI TRl/CfNG VA PHAN TICH CHI PHI VONG DCfl • ThS NGO HCTU K H A N H... trUdng Thanh Ho Chi Minh TOM TAT: Chinh phu Viet Nam dinh hu''dng phat trien cac nguon nang lifdng tai tao d^ thay thd'' nhidn heu hoa thach Xang sinh hgc du''dc sdn xua^t tiif nguyen lieu san la