|Supplier Breakeven - Parameter Assumptions|
|Parameter||Feedstock||Mean Value (Likeliest if Skewed)||Statistical Distribution of Cost Estimates1|
|Opportunity Cost (COpp)||Stover (CS)||-||-|
|Switchgrass (MW)||$150/acre6||Log Normal|
|Switchgrass (MW_low)||$100/acre||Log Normal|
|Miscanthus (MW)||$150/acre||Log Normal|
|Miscanthus (MW_low)||$100/acre||Log Normal|
|Wheat Straw||$1.80/acre ($0)||Maximum Extreme|
|Alfalfa (1st year w/ fert)||$175/acre||Fixed|
|Processor Breakeven - Parameter Assumptions|
|Parameter||Feedstock||Mean Value in Baseline
(Likeliest if Skewed)
|Oil Price (POil)||All||$52/barrel
|Energy Equivalent Factor (EV)||All||0.68 (0.65)||Maximum Extreme|
|Byproduct value (VBP)||Stover
|Capital Cost (CI)||All||$0.91/gal ($0.85)||Maximum Extreme|
|Non-enzyme Operating Cost||All||$0.36/gal||Fixed|
|Enzyme Cost||All||$0.50/gal ($0.46)||Minimum Extreme|
1 The cost estimates taken from several published studies cited in Appendix L are not necessarily normally distributed. This column reflects the statistical distribution that the cost observations tended to best fit and that was used in the Monte Carlo process to derive statistical “mean” and “most likely values” if the statistical distribution of costs was skewed.
2 Average hauling distance is calculated using the formulation by French (1960) for a circular supply area with a square road grid. Technically, the distance is not fixed since it is a function of stochastic parameters including biomass density and yield. French, B. 1960. Some considerations in estimating assembly cost functions for agricultural processing operations. Journal of Farm Economics 62:767-778.
3 Equivalent to 2,205 tons per day delivered to a biorefinery operating 350 days per year.
4 Switchgrass establishment seeding cost is amortized over 10 years at 10 percent, Miscanthus establishment and seeding cost is amortized over 20 years at 10 percent, and woody biomass is amortized over 15 years at 10 percent. The values presented in the table are annual payments per acre.
5 All per acre costs are converted to per ton costs using the yield assumptions provided in the table.
6 Midwest opportunity cost is assumed to be positively correlated with corn yield through stover yield with a correlation of 0.75.