Feasibility assessment of diesel fuel production in Egypt using coal and biomass: Integrated novel methodology

Diesel fuel shortage is one of the main energy crisis components in Egypt as it is heavily employed in the electricity and transportation sectors. CtL (Coal to Liquids) and CBtL (combined Coal and Biomass to Liquids) are promising routes which can be currently applied for diesel production in Egypt. This paper will propose a novel methodology to drive the CBtL/CtL routes forward in Egypt. The methodology is based on using Miscanthus as biomass material and utilizing the Egyptian “Maghara” coal. It recommends some measures to improve project economics and simultaneously provide solutions to other strategic national problems including the poor sewage infrastructure and the unutilized desert areas. Eight scenarios were studied; four for each route with variable production capacities (450, 900, 1,350, 1,800 tdiesel/d). To evaluate the scenarios, the diesel price was fixed at $50 below its current import price, and the corresponding discount rate and payback period were calculated. At high capacities, both routes are economically feasible (discounted interest rate of about 17%) and less sensitive to the price variation of equipment, raw materials and byproducts. Implementing the CBtL route can be regarded as a strategic project as besides being economically feasible, it offers crucial social and environmental benefits.