Oregon

In early 2000, researchers conducted a feasibility study for the constructin of a biomass-to-ethanol processing facility for the state of Oregon. The study results indicated that this tpe of facility would be feasible in Oregon (Aden and others 2000). Several feedstocks were analyzed and the most economically feasible feedstock was forest residues. Using forest residues in a natural gas boiler facility produced an internal rate of return of 19% for the facility. This rate of return was calculated based on several assumptions: 1) the marketability of lignin-rich residues; 2) feedstock costs; 3) project financing; and 4) the selling price of ethanol. The study revealed that the internal rate of return would be sensitive to changes in these assumptions.

Using a natural gas boiler system requires that the lignin-rich residue produced be sold to an outside buyer. If a biomass boiler were used, the residue could be used to create process steam, but the capital cost required for the biomass boiler is significantly higher than the natural gas boiler. Yet, if no buyer can be found for the lignin-rich residue, the rate of return on the natural gas boiler would drop significantly making the biomass bioler more attractive.

Overall, the conclusions indicated that a biomass-to-ethanol processing facility using forest residues would be feasible in Oregon.