Bookmark and Share

Costs of Biomass Energy and Biomass Plant Invesment – Wide Range

2 Comment

The Costs of Biomass Energy Production fall in a very wide range because of the wide variety of feedstock it uses.The costs of biomass energy also depend on the distance of the feedstock from the biomass power plant.Great distances lead to the biomass plant being unfeasible.Also some forms of Biomass are more expensive than others.Urban Waste and Waste Wood are some of the cheapest forms of biomass available.Similarly,Biomass plants also can be built over a wide range of investments.Co-generation plants or CHP plants are the cheapest biomass plants while standalone biomass plants which can use a variety of feedstock are quite expensive in nature.Note unlike solar and wind power,the investments in power plants based on biomass are not fixed.Some of the technology like boilers and turbines for generating biomass energy are common industrial equipment.The costs of a biomass energy can also depend greatly on how the feedstock is procured,managed and used up by a biomass plant.A good manager of a biomass plant is very important to lower running costs of a biomass plant.

Costs of Biomass Energy

Biomass Energy in general costs around 10-13c/KwH depending on the feedstock used and the type of technology used in energy conversion.It is possible to have costs of 5c/KwH for cofiring plants which use existing equipment.Cogeneration is a cheaper option for agri industry owners.Sawmill and paper plants owners can generate at very low cost of under 5c/Kwh as their feedstock is virtually free and would be entirely wasted if not used to generate electricity.Sugar plants these days have ethanol production and electricity generation as very important revenue streams.

Cost of a Biomass Power Plant

A Biomass Power Plant like Biomass Energy has a very wide range of costs.Small plants generally have higher costs while larger plants can be built at a lower cost per Megawatt.

Small plants can cost between $1.5-4/watt for building.While co-firing plants can cost as little as 25c/Watt.Note some of the larger biomass plants being built are between  $2-3/watt.Note the important thing to consider when investing in a biomass power plant is to look into the LCOE being generated by biomass electricity.The investment in the biomass plant is only a part of the total costs of bioelectricity.


Biomass Energy Costs fall in a very wide range unlike solar and wind power equipment which is quite standardized and easily available.While wind and solar power costs don’t depend on fuel costs,biomass energy is heavily dependent on biomass as feedstock.The costs of fuel is a major determinant of biomass  energy.Biomass Energy can be quite costeffective in some situations where feedstock is cheaply and easily available.

Related Links

List of Major Biomass Power Plants in the World – Scale Increasing

Ten Advantages of Biomass Energy – Oldest Alternative Energy Form gets back in vogue


Abhishek Shah

2 Responses so far | Have Your Say!

  1. jgir

    You spelled Investment wrong on the title lol

  2. Clement Ratau

    Can you please provide me with estimated capital cost for biomass/biogas power generating electricity plant construction for 100mw in south africa.