ABSTRACT
This study is a technoeconomic analysis of the fast pyrolysis process. The main objective is to evaluate the effect of fuel price and technical uncertainty on the economic feasibility of biofuels created by catalytic fast pyrolysis using a circulating fluidized bed reactor. Previous studies have focused on creating reliable estimates of the initial capital and operating costs of a biorefinery. This study analyzes the effect of uncertainty in capital cost, hydrogen price, bio-oil yield, feedstock cost, and final product selling price on the appeal of project investment to a private investor. It directly evaluates the effect of two policy instruments-a reverse auction, which effectively fixes the price of the biofuel over the life of the project, and a capital subsidy. This research provides policy makers with information on how these policies could affect biofuel investment decisions.
