Biomass Feasibility Project Final Report - Xcel Energy

Disregarding the manure digester, the results show an overall range of LACs from ~$0.03 per kWh
to ~$0.185 per kWh.
20.00
18.00
16.00
14.00
LAC in Cents per kWh
12.00
10.00
8.00
6.00
4.00
2.00
-
s1 s2 s3 s4 s5 s6 s7 s8 s9 s10 s11 s12 s13 s14 s15 s16 s17 s18 s19
Figure VIII-6: Monte Carlo Results (LAC)
Feedstock Variability
The resulting feedstock prices illustrate a number of important points. The most apparent of
these is that each feedstock has a very different range of prices, both in terms of mean
expected price and range of expected prices. Corn stover, for instance has a relatively low
mean expected price, with a relatively narrow range of expected prices. Switchgrass, on the
other hand, has a mean price that is $1.60 higher than that of corn stover, and a much greater
range of prices $1.70 between the 20 th and 80 th percentile vs. $0.35 for corn stover.
10.00
9.00
8.00
7.00
$ per MMBtu
6.00
5.00
4.00
3.00
2.00
1.00
-
Corn Stover
Switchgrass
Logging Residues
Hybrid Poplar
Corn Stover/Coal
Switchgrass/Coal
Logging Residues/Coal
Hybrid Poplar/Coal
Ethanol DDGS
Figure VIII-7: Feedstock Price Variability
Identifying Effective Biomass Strategies: Page 135
Quantifying Minnesota’s Resources and Evaluating Future Opportunities