Estimating Region Specific Costs to Produce and Deliver Switchgrass

Abstract

Feedstock costs are expected to be a major component of the cost of producing bio-based products from lignocellulosic biomass. The economic viability of using switchgrass to produce feedstock will depend on its cost relative to alternatives. The purpose of this chapter is to present estimates of the cost to produce, harvest, store, and transport switchgrass biomass. Enterprise budgets and sensitivity analysis are used to produce cost estimates. Delivered switchgrass costs can vary widely, depending on yields, input prices (seed, fertilizer and lime, and diesel fuel), input quantities (fertilizer and lime, herbicides), and land costs. Establishment costs amortized over 10 years range from $38 to $112 ha⁻¹ and reseeding costs (25% of land in second year) (amortized over 9 years) range from $10 to $18 ha⁻¹. Baler productivity is important, and can impact costs up to a $16 dry Mg⁻¹. Costs of switchgrass delivered range from as low as $42 to well over $100 dry Mg⁻¹ if yields are low. The ultimate challenge is to formulate a profitable switchgrass production, storage, and delivery system simultaneously with profitable conversion to bio-based products.