FIGURE 5.4 Cost of alternative liquid fuels produced from coal, biomass, or coal and biomass with no carbon price.

Note: BTL = biomass-to-liquid fuel; CBFT = coal-and-biomass-to-liquid fuel, Fischer-Tropsch; CBMTG = coal-and-biomass-to-liquid fuel, methanol-to-gasoline; CCS = carbon capture and storage; CFT = coal-to-liquid fuel, Fischer-Tropsch; CMTG = coal-to-liquid fuel, methanol-to-gasoline.

life-cycle basis. With CCS, the life-cycle CO₂ emissions from FT and MTG are about the same as those from petroleum gasoline.

The biochemical conversion of biomass produces fuels that are more expensive than coal-to-liquid fuels because the conversion plants are small and the feedstock is more expensive—biomass costs almost four times as much as coal on an energy-equivalent basis. The production cost of cellulosic ethanol is around $115/bbl on a gasoline-equivalent basis. The cost of thermochemical conversion of biomass, without coal, is higher than the cost of cellulosic ethanol on an energy-equivalent basis and with geologic storage has the potential for large negative net releases of CO₂; that is, the process involves a net removal of CO₂ from the atmosphere. For biomass-to-liquid and venting of CO₂, the estimated fuel cost is $140/bbl if electricity is sold back to the grid at $80/MWh; with geologic storage of CO₂, it is $150/bbl if electricity is sold back to the grid at $80/MWh. The