In California, attendees
at the MIT/Stanford Venture Lab event continued to flood the
channels with follow-up questions to the expert panel from Green
Pacific, AE Biofuels, SynGest, Chevron and Flagship Ventures. More about VLAB.
The questions, combined with those that came in via cards passed around at the event, are an excellent example of those items that are “on people’s minds” when it comes to bioenergy projects.
Here are some answers to your questions, based on the Digest article archive and discussions with producers, plus answers to some of the questions that were addressed at the event.
Q. Costs, costs, costs . . . what are current, 3 and 5 year targets for production costs, and what is the target wholesale fuel price (leaving us with an idea of the expected margin for the business).
A. Production costs range widely by producer, but most advanced biofuels producers are aiming to be competitive with $70 per barrel oil, or roughly $2.37 gasoline, translated to a retail price. Target fuel prices are, according to the EIA, $2.46, $2.88 and $3.04 per gallon, for 2010, 2013 and 2015 respectively. Typically, individual producers reach these rates based on commercial scale, so keep an eye out on their timelines as well as the projected cost of feedstock in their models.
To read the full, original article click on this link: Answers for your Questions about Biofuels : Biofuels Digest - biofuels, biodiesel, ethanol, algae, jatropha, green gasoline, green diesel, and biocrude daily news
Author: Biofuels Digest
