Exploring profitability of bioeconomy paths: Dimethyl ether from biogas as case study

Herein a novel path is analysed for its economic viability to synergize the production of biomethane and dimethyl ether from biogas. We conduct a profitability analysis based on the discounted cash flow method. The results revealed an unprofitable process with high cost/revenues ratios. Profitable scenarios would be reached by setting prohibitive DME prices (1983–5566 €/t) or very high feed-in tariffs subsidies (95.22 €/MWh in the best case scenario). From the cost reduction side, the analysis revealed the need of reducing investment costs. For this purpose, we propose a percentage of investment as incentive scheme. Although the size increase benefits cost/revenues ratio, only the 1000 m3/h biogas plant size will reach profitability if 90% of the investment is subsidized. A sensitivity analysis to check the influence of some important economical parameters is also included. Overall this study evidences the big challenge that our society faces in the way towards a circular economy. •Novel alternative for synergizing bio-methane and dimethyl ether production.•Profitability analysis for four different plant sizes.•The effect of dimethyl ether price and subsidies is studied.•The analysis revealed a technically viable but financially unprofitable process.•Evidence of the need of a strong green policy-making strategy.