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Large-scale algae production has garnered interest due to its potential as a biofuel feedstock. Previous research assessing the profitability of algae products has been mostly based on values averaged over time, but algae production and resulting financial returns exhibit significant variability due to weather and fluctuations in selling prices for algae-based products. In other sectors, producers often reduce weather- and market price-related financial risk with financial instruments such as insurance, but little research has been performed on the design of insurance products to protect algae producers. This study develops a novel index-based insurance instrument that pays-out during unfavorable weather and market conditions, then explores the instrument's effectiveness, combined with a cash reserve, in reducing revenue stream variability for an algae producer. Results indicate that a biophysically based index-insurance product tailored to the specific financial risks in algae production can reduce variability in net revenues and can do so at a lower cost than relying solely on cash reserves, the most common financial risk management tool. Assessing the performance of index-insurance in algae production is particularly timely given the passage of the 2018 Farm Bill, which newly opens opportunities for the USDA to provide crop insurance to algae producers. [Display omitted] [ABSTRACT FROM AUTHOR]

Water quality in the Tha Chin River regularly exceeds biological oxygen demand (BOD) standards of Thailand's Enhancement and Conservation of National Environmental Quality Act. This study quantified the BOD loading from rice cultivation and swine farming to the Tha Chin River using effluent data and procedures from the Pollution Control Department (PCD), geospatial land-use maps from the Land Development Department, and water quality data from the Ministry of Natural Resources and the Environment. It was determined that the BOD loading was 12 tons/day from swine farming in 2015 and 52 tons/day, on average, from rice farming between 2002 and 2011. Technology-specific, community-scale wastewater management strategies were recommended for both industries: feasibility studies revealed 66 potential sites for constructed wetland implementation and 7 subdistricts suitable for biogas network pipelines. It was determined that if these projects are implemented in conjunction, the BOD would be reduced by 6% (0.3 mg/L) in the entire river or 11% (0.5 mg/L) at the three water quality monitoring stations proximate to swine farms. These reductions would have a substantial effect on the water quality of the Tha Chin River, and governmental agencies such as the PCD should strongly consider subsidization and implementation of these projects. [ABSTRACT FROM AUTHOR]

[Display omitted] • Algal biofuel production is vulnerable to weather and market fluctuations. • Higher revenue volatility translates to increased financial risk and financing costs. • A probabilistic analysis of weather impacts on biorefinery revenues is performed. • Revenue variability due to different weather factors is significant. • Solar irradiance and air temperature extremes are the largest weather-related risks. Algal biofuels are a renewable liquid fuel with advantages over crop-based biofuels, including higher yield per acre, the ability to recycle production inputs, and the option to create valuable co-products. Previous analyses suggest that algal biofuels could become cost-competitive if technological improvements are achieved. Most previous research, however, does not consider the impact of seasonal and year-to-year uncertainty in weather factors, such as solar irradiance and temperature, on biomass productivity, and those that do are based on limited meteorological records. This study explores the influence of weather uncertainty on biomass growth and biorefinery revenues as well as impacts from market price uncertainty. The performance of a hypothetical algal biorefinery in Vero Beach, Florida is explored by combining stochastic weather generation, biophysical growth modelling, stochastic market price generation, and techno-economic analysis. Results show coefficient of variation values of 8–15% in seasonal revenues for an algae producer, and that the variation in annual revenues was lower than that of corn, soybean, and cotton. In sensitivity analyses, both weather and price fluctuations are found to be significant sources of financial risk. This is the first probabilistic quantification of weather-related production impacts for algae producers, which is relevant given global growth in the algae industry as evidenced by the new eligibility of algae for crop insurance in the US 2018 Farm Bill. [ABSTRACT FROM AUTHOR]