ABSTRACT
Bioenergy planners will normally be intimately acquainted with the costs of specific projects they are evaluating. Some bioenergy projects, such as fuelwood plantations, directly increase supplies of traditional biomass energy. The financial viability of a bioenergy project depends on the costs of alternative fuel sources: cheap oil will be preferred to expensive producer gas. The relevant fuels are customarily oil or hydroelectric power, but coal and other fossil fuels must also be considered, as well as newer renewables such as solar and wind generators. Future costs must be estimated; in many cases these can be only inferred indirectly through an assessment of the long-term supply outlook. Economies of scale for bioenergy must consider not only the plant costs but also the cost of feedstock delivery. The trend of costs will be dependent on the rising costs of land, labor and management, and capital.
