View article

Transportation cost is an important factor to determine the optimal size of a biofuel refinery. In this article, we analyze the impact of logistic costs on the optimal size of a biofuel refinery by analyzing the trade-off between the switchgrass transportation cost and the economic scale of cellulosic ethanol production. To calculate the transportation cost, grids are used to calculate the variable distance from the fields to the refinery, and both fixed and variable transportation costs are considered. We examine the transportation cost with both round and square bales, and various yields and bulk densities. The results help a decision maker to determine critical factors that influence transportation costs of switchgrass. We also investigate the effect of refinery capacity increase on the transportation cost. The results can provide valuable insight into the economic scale of cellulosic ethanol production.