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International Renewable Energy Agency

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Prices for biomass sourced and consumed locally are generally difficult to obtain and no data are available to make comparisons over time. Prices paid will depend on the energy content of the fuel, its moisture content and TABLE 8.1: BIOMASS FEEDSTOCK COSTS IN THE UNITED STATES other properties that will impact on the costs of handling or processing at the power plant and on the efficiency of generation. The range of costs can be quite wide and are very site‐specific (Table 8.1). Typical moisture content Heat value kJ/kg (LHV) Price (USD/GJ) Price (USD/tonne) Cost structure Forest residues 30% - 40% 11.5 1.30 - 2.61 15 - 30 Collecting, harvesting, chipping, loading, transportation and unloading, stumpage fee and return for profit and risk. Wood wastea 5% - 15% 19.9 0.50 - 2.51 10 - 50 Cost can vary from zero, where there would other- wise be disposal costs, to quite high where there is an established market for their use in the region. Agricultural residuesb 20% - 35% 11.35 - 11.55 1.73 - 4.33 20 - 50 Collecting, premium paid to farmers, transportation. Energy cropsc 10% - 30% 14.25 -18.25 4.51 - 6.94 39 - 60 Not disclosed. Landfill gas 18.6 - 29.8d 0.94 - 2.84 0.017 - 0.051d Gas collection and flare. Notes: a) Sawmills, pulp and paper companies (bark, chip, sander dust, sawdust). Moisture content is often low because they have already been through a manufacturing process. In cases where disposal is required, prices can be zero as the avoided costs of disposal can make it worthwhile to find a productive use for the feedstock. b) Corn stover and straw. c) Poplar, willow and switchgrass. d) For landfill gas the heat value and price is in MJ/m3 and USD/m3 respectively. Some prices for feedstocks in developing countries are available but information is relatively limited. In the case of Brazil, the price of bagasse varies significantly, depending on the harvest period. It can range from zero to USD 27/tonne with the average price being around USD 11/tonne, where a market exists (Table 8.2). These low bagasse prices make SOURCE: BASED ON EPA, 2007 the economics of bioenergy power plants using other feedstocks extremely challenging, except in situations where a captive feedstock exists (i.e. in the pulp and paper industry). As a result, most of the other bioenergy power generation projects in Brazil rely on black liquor or woodwaste for cogeneration in industry with the surplus electricity sold to the market. TABLE 8.2: BIOMASS FEEDSTOCK CHARACTERISTICS AND COSTS IN BRAZIL AND INDIA Typical moisture content Heat value MJ/kg USD/GJ USD/tonne Bagasse 40% - 55% Woodchip The analysis in this report for OECD countries examines feedstock costs of between USD 10/tonne for low‐cost residues to USD 160/tonne for internationally traded 5.6 – 8.9 1.3 – 2.3 1.4 - 2.5 11 - 13 (Brazil) 12 - 14 (India) 71 (Brazil) 7.75 9.30 Charcoal mill 18.84 5.31 95 (Brazil) Rice husk 11% 12.96 ... 22 - 30 (India) SOURCE: RODRIGUES, 2009; AND IRENA RENEWABLE COST DATABASE. pellets (Tables 8.1 and 8.2). This compares to forward spot pellet prices at Rotterdam that ranged between USD 165 and USD 177/tonne during 2012. Renewable Power Generation Costs in 2012: An Overview 67

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