Cost to produce and deliver switchgrass biomass to an ethanol-conversion facility in the southern plains of the United States

Three important public policy problems—dependence upon imported oil, environmental degradation and the cost of cropland diversion—may be addressed by using cropland to produce biomass for conversion to liquid fuels. This study was conducted to determine the cost of producing and transporting switchgrass (Panicum virgatum L.) biomass to an ethanol-conversion facility. Enterprise budgeting was used to estimate the cost of establishing, maintaining and harvesting switchgrass for a vertically integrated production system. The cost to deliver one dry Mg of switchgrass biomass to a conversion facility was estimated to be $37.08. Approximately 14% of the cost is for establishment, 22% for land, 32% for annual stand maintenance and harvesting, and 32% for loading and transportation.