Use of Real Options to Evaluate the Profitability of Biogas Production From Stillage in the Tequila Industry

Abstract

In Mexico, the tequila industry is the second most important economic activity within the alcoholic beverage industry, after the beer industry. Tequila vinasse is wastewater with a high organic load produced during the distillation of the fermented must of the blue agave (Agave tequilana Weber var. azul), which has a great impact on soils and water bodies in the tequila region. On the other hand, the decrease in fuel reserves causes instability in hydrocarbon prices, which makes it necessary to implement alternative fuel methods such as biogas. In this sense, it has recently been pointed out that the anaerobic digestion process is the most suitable for the treatment of tequila vinasse since it allows the removal of contaminating organic matter, together with the production of biogas that can be used in situ in the tequila industry. In this study, the financial feasibility of the production of biogas for self-consumption from tequila vinasse was calculated with the values achieved from a pilot system composed of a packed bed reactor (PBR) with technological and economic advantages to treat this waste. Profitability was evaluated over a 10-year production horizon (net present value $1 569 001) and was complemented with the Real Options methodology, taking into account price volatility and the option to expand. The results showed that the project is profitable with the 42.85 % biogas production expansion option. It is concluded that biogas production is financially feasible and it is possible to increase the profitability of the system by $6 325 109 if production is expanded.