Abstract
Energy from biomass fuels is used in the electric utility, lumber and wood products, and paper and pulp industries. The objective of this paper is to discuss a method of constructing marginal cost curves for biomass fuel where there are multiple sources differing in availability. Most research has focused on the feasibility of a single source of fuel to supply a plant. A least-cost approach would consider wood fuel supplies from several sources. The methodology for determining the marginal cost of biomass fuel supply for a wood-fired electrical generating plant is described and an example is provided. Marginal cost curves allow decision-makers to ‘observe’ the effective cost to supply power plants. The methodology is useful because it frees feasibility studies from artificial one-source assumptions.
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