Table 10 Cost parameters included in the sensitivity analysis
From: The commercial performance of cellulosic ethanol supply-chains in Europe
Parameter | % Variation relative to base-case | Remark | |
|---|---|---|---|
| Â | Minimum | Maximum | Â |
Fixed capital investment | 0.7 | 1.3 | A range of +/- 30% was considered sufficient to cover uncertainties in capital cost. |
Cost of biomass | 0.6 | 1.7 | A range of -40% to +70% approximates to the 15th and 85th percentiles obtained in the survey of EU cost estimates for softwood and straw. |
Enzymes | 0.5 | 1.5 | A range of +/- 50% was considered reasonable given the uncertainties in the costs of enzyme production. |
Cost of ethanol | 0.3 | 1.85 | The minimum -70% reflects the price of ethanol valued on an energy basis with an oil price of US$40 barrel-1. The maximum +85% reflects ethanol valued on a volume basis plus subsidy, assuming an oil price of US$150 barrel-1. |
Solid fuel revenue | 0.7 | 1.3 | A range of +/- 30% was considered sufficient to cover uncertainties in the retail price of solid fuel. |
Distribution cost | 0.7 | 1.3 | A range of +/- 30% was considered sufficient to cover uncertainties in distribution cost. |
Effective discount rate | 1 | 2 | A discount rate range of 7–30% was considered sufficient to cover uncertainties in how a plant may be financed. |