Resource information
Eucalyptus plantations in the Southern United States offer a viable feedstock for renewable bioenergy. Delivered cost of eucalypt biomass to a bioenergy facility was simulated in order to understand how key variables affect biomass delivered cost. Three production rates (16.8, 22.4 and 28.0 Mg ha−1 y−1, dry weight basis) in two investment scenarios were compared in terms of financial analysis, to evaluate the effect of productivity and land investment on the financial indicators of the project. Delivered cost of biomass was simulated to range from $55.1 to $66.1 per delivered Mg (with freight distance of 48.3 km from plantation to biorefinery) depending on site productivity (without considering land investment) at 6% IRR. When land investment was included in the analysis, delivered biomass cost increased to range from $65.0 to $79.4 per delivered Mg depending on site productivity at 6% IRR. Conversion into cellulosic ethanol might be promising with biomass delivered cost lower than $66 Mg−1. These delivered costs and investment analysis show that Eucalyptus plantations are a potential biomass source for bioenergy production for Southern U.S.
