Economic analysis of the potential of cellulosic biomass in France from agricultural residues and energy crops

Delphine E Simon, Purdue University

Abstract

The objective of this research is to evaluate the feasibility and locations of using cellulosic biomass both from crop residues and from dedicated energy crops to supply 200-million-liter-biodiesel plants in France. The estimation of the potential amount of agricultural residue available in 2015 in each region of France is calculated. The residues considered in this study come from cereal straw and corn stover. The economic viability of potential new energy crops, miscanthus and triticale, grown only for biomass purposes is estimated in order to determine if they could be competitively produced by the year 2015. The supply curves for both miscanthus and triticale are calculated. Results show that eight out of the twenty one French regions have enough agricultural residues available to supply at least one 200 million liter, biofuel plant. Region Centre has the largest potential, with enough residues to supply three to five plants. Model results show that miscanthus is more economically feasible than triticale. Finally, cost of supplying one biodiesel plant of 200 million liters in the region Centre is estimated. Results show that collection of biomass will be effective in an area with a radius of 58 Km to 168 Km depending of the raw material considered and its abundance. The cost of supplying a plant with miscanthus is much higher than with residues only (0.61[Euro]/L compared to 0.35 [Euro]/L). Thus, crop residues appear to offer a lower cost to produce biodiesel in the near term compared to dedicated crops. Results show that production of biofuel from cellulosic biomass should not be limited by the supply of raw material, but costs clearly will play a key role in the development of a cellulosic biomass plant. Energy prices and policies (blending targets or tax credits) will have a significant impact on second generation biofuel development. A mix of first and second generation biofuel crops should be expected in 2015.

Degree

M.S.

Advisors

Tyner, Purdue University.

Subject Area

Agricultural economics

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