Preliminary Stochaistic Techno-economic Study of Microalgae-based Supply Chain
Lo, Shirleen Lee Yuen
Kong, Karen Gah Hie
Sunarso, Jaka
How, Bing Shen

How to Cite

Lo S.L.Y., Kong K.G.H., Sunarso J., How B.S., 2022, Preliminary Stochaistic Techno-economic Study of Microalgae-based Supply Chain, Chemical Engineering Transactions, 94, 73-78.


Utilization of microalgae as feedstock has been increasingly gaining attention in recent years due to its capability to be cultured on site at the processing plant that reduces cost of transportation of feedstocks. Certain microalgae species also contain high lipid contents that make them a favourable feedstock for Fatty Acid Methyl Ester biodiesel production process. However, microalgae-based conversion process is still in its infancy. Extensive research on the feasibility study of the microalgae-based industry is critical prior to industrial-scale commercialization to prevent unexpected losses incurred. Therefore, this study aims to perform a preliminary Stochastic Techno-economic Evaluation on Microalgae-based Supply Chain with the incorporation of uncertainties. This is achieved by incorporating four uncertainties (i.e., product selling price, microalgae productivity, cost of microalgae, and conversion process efficiency) into a Monte Carlo Simulation model. Two types of microalgae species will be evaluated and compared in this study, i.e., Chlorella vulgaris and Nannochloropsis sp.. The outcome of this study found that Nannochloropsis sp. is more favorable with a higher mean NPV of USD 970.48 x 106 (higher than Chlorella vulgaris by 0.89 %) and lower standard deviation of USD 695.90 x 106 (lower than Chlorella vulgaris by 12.8 %). A probability-based financial result can allow users to better perform decision-making and analyzing the risk involves in the investment.