Economics Of Primary Fuels Production From Biomass

The economic and market opportunities for biofuels from thermochemical biomass conversion processes are strongly influenced by production costs. An analysis of capital and production costs is presented for both gaseous fuels from gasification processes and liquid fuels from pyrolysis processes. The results suggest that the current lack of interest is not just due to adverse economic viability, since a wide range of attractive opportunities appears to exist for wastes and residues to be utilised in the short term, and energy crops in the longer term. The current low price of conventional energy products contributes to this disinterest, as well as the status of the technology. Lack of long term operation, operating experience and perceived reliability problems all contribute to the relatively poor image of the technology. There seems little doubt that there will be considerable opportunities for thermochemical conversion of biomass and solid wastes in the future particularly if there is pressure from increasing conventional energy prices and also from environmental concerns over waste management practices. There is need for technology assessment and, if appropriate, support for long term demonstration. This will help ensure that the technologies are sufficiently developed and mature to provide reliable service when the occasion demands.