Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

6-2012

Journal or Book Title

Journal of Energy Engineering

Volume

138

Issue

2

First Page

54

Last Page

62

DOI

10.1061/(ASCE)EY.1943-7897.0000061

Abstract

Fast pyrolysis and upgrading is a promising thermochemical pathway that produces pyrolysis oil that can be upgraded via hydroprocessing into hydrocarbon-based transportation fuels (drop-in biofuels). The internal rate of return (IRR) of a fast pyrolysis and upgrading facility is a function of feedstock cost and projected revenues. We calculate the IRR of a fast pyrolysis and upgrading facility under six different policy scenarios: (1)a baseline scenario in which the facility receives no government support; (2)a scenario in which cap-and-trade (H.R. 2454) is enacted with both carbon price and offsets; (3)a scenario in which the Volumetric Ethanol Excise Tax Credit (VEETC) is modified to include drop-in biofuels; (4)a scenario in which the VEETC is replaced with a variable VEETC; (5)the revised Renewable Fuel Standard (RFS2); and (6)the Cellulosic Biofuel Producer Tax Credit (CBPTC). Combinations of these policy scenarios are also analyzed. We find that the policies responsible for increasing the value of pyrolysis products increase facility IRR the most, whereas policies minimizing facility tax burden have an only marginal effect on IRR.

Comments

This is a manuscript of an article from Journal of Energy Engineering 138 (2012): 54, doi: 10.1061/(ASCE)EY.1943-7897.0000061. Posted with permission.

Copyright Owner

American Society of Civil Engineers

Language

en

File Format

application/pdf

Published Version

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