Are biofuels from seaweed a viable proposition? Bioeconomic modeling of biogas production and co-generation in an Australian context

Background: The economic viability of the intensive land-based cultivation of Ulva lactuca for biofuels (biogas and co-generation) was ascertained using a bioeconomic model developed for the Australian context. The cost assumptions, technical variables and biological parameters were sourced extensively from published literature. Results: Biogas production and the sale of electricity as a standalone business model was unprofitable at the current feed-in tariff due to high electricity generation costs of US0.44 kWh^-1 for even the largest macroalgal production facility size of 400 ha (AU:US = 0.9369; 1 June 2011). Conclusion: As this is a prefeasibility study, it is largely literature based with some engineering estimates; therefore, this model needs validation with actual field data from a commercial-scale production facility.