Minimizing the Cost of Agriculture Waste for Cellulosic Biofuels

Abstract

ABSTRACTSeveral studies have evaluated ways to reduce biomass cost through optimization of biorefinery location thus reducing biomass transport cost. While other studies have provided models for farmer supply response and participation (market structure), there is a gap in understanding how biomass transportation costs are related to farmer incentives. This study bridges this gap. A biomass cost model is developed to evaluate the trade-offs between biomass transport cost, incentives to farmers, farmer participation, biorefinery size, and alternative feedstock availability. This article finds that a focus on optimizing biomass transport cost and biorefinery location, without considering the relationships between biomass transport cost and farmer incentives increases biomass cost by 15% to 20%.