Techno-Economic Analysis (TEA) of Land Based Asparagopsis Armata Cultivation System in New Zealand

Abstract

Agriculture is the most prominent source of human methane emissions. The case of methane emissions is particularly relevant in the New Zealand (NZ) context as over 48% of NZ greenhouse gas emissions are coming from NZ’s agricultural industry. To date, there hasn’t been much strategy that has effectively solved the immediate problem of methane emissions from the agriculture industry. Several studies have shown that Asparagopsis armata, an algal species that is native to NZ and Australia has the potential to reduce methane emissions from livestock. These trials demonstrated the potential of the algae to be cultivated and mass produced for farmers to help reduce their methane emissions. Currently, there are no economic models of land-based cultivation for Asparagopsis armata, which creates difficulty for start-ups and small companies in this area when making decisions related to how to start cultivating Asparagopsis armata. The research project develops a Techno-Economic Analysis (TEA) model for land based Asparagopsis armata tetrasporophyte cultivation systems in Ruakaka, New Zealand (NZ). The objective is to estimate the factors that influence the biomass production cost of Asparagopsis armata. The study uses the TEA model along with sensitivity analysis to compare output according to different scenarios of varying parameter inputs. The findings of this study demonstrates that the minimum biomass selling price (MBSP) of the ash-free dry weight (AFDW) algae are most affected by its productivity. Other parameters that seem to drive algae MBSP in this model are artificial lighting, tank depth, and tank volume. On the other hand, design decisions related to aisle design and tank placement demonstrated to affect MBSP the least. The analysis shows that companies and organisations need to focus and direct their resources more into research and development on algae productivity in order to reduce the MBSP of the algae product.