Is it economical to produce alternative fuels from woody biomass?
The economics of alternative fuels are influenced by a variety of factors including the value or price of the product (i.e. ethanol, energy, diesel, syngas, methanol, etc.), the cost of the feedstock (including the cost of transportation), the investment in the technology used, whether there are distribution systems (power lines, pipelines) in place, and whether alternative fuel production is in a stand-alone facility or integrated with an existing facility (i.e. pulp mill or saw mill). Commercial plants in Europe, the United States and Canada have demonstrated alternative fuel production can be profitable. Sweden is economically producing 25% of all its energy (electrical and heat) needs from forest waste biomass and now are commencing production of bio-based alternatives for diesel and gasoline engines. Recent estimates for producing cellulosic ethanol in Canada provide for a 30% return on investment. Other factors which are driving improvements in profitability of alternative fuels
