Feasibility of an Adaptable Biorefinery Platform: Addressing the Delivery Scale Dilemma under Drought Risk. (February 2014)

• Record Type: Journal Article
• Authors: Farmer, Michael C.; Benson, Aaron; Liu, Xiaolan; Capareda, Sergio; Middleton, Marty
• Is Part Of: Journal of agricultural and applied economics. Volume 46:Number 1(2014)
• Page Start: 57
• Page End: 71
• Publication Date: 2014-02
• Subjects: biomass, -- biorefinery, -- drought; Q4, -- Q16; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/S1074070800000638
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract : Conversion of biomass to electricity is often not economically feasible as a result of large transportation costs and low output prices. We build a model of an adaptable biorefinery situated at an agri-processing facility that already has biomass on-site and consider the optimal scale of the plant to achieve a price premium by selling peaking power given uncertain biomass deliveries year over year as a result of climatic variability. We find that, for conservative electricity prices, a plant situated near cotton gins in Texas could operate with positive expected net revenue while converting on average only 38% of available biomass for peak electricity prices.