Abstract
Lignocellulose-rich empty fruit bunches (EFBs) have high potential as feedstock for second-generation biofuel and biochemical production without compromising food security. Nevertheless, the major challenge of valorizing lignocellulose-rich EFB is its high pretreatment cost. In this study, the preliminary techno-economic feasibility of expanding an existing pellet production plant into an integrated bio-refinery plant to produce xylitol and bioethanol was investigated as a strategy to diversify the high production cost and leverage the high selling price of biofuel and biochemicals. The EFB feedstock was split into a pellet production stream and a xylitol and bioethanol production stream. Different economic performance metrics were used to compare the profitability at different splitting ratios of xylitol and bioethanol to pellet production. The analysis showed that an EFB splitting ratio below 40% for pellet production was economically feasible. A sensitivity analysis showed that xylitol price had the most significant impact on the economic performance metrics. Another case study on the coproduction of pellet and xylitol versus that of pellet and bioethanol concluded that cellulosic bioethanol production is yet to be market-ready, requiring a minimum selling price above the current market price to be feasible at 16% of the minimum acceptable return rate.