Favorable feedstock costs can drop cellulosic sugar prices as low as $0.26/kg

In Massachusetts, according to Lux Research, lower feedstock prices can drive down prices of fermentable cellulosic sugar to $0.26/kg, down from $0.32/kg to $0.36/kg, competitive with sugars from corn or sugarcane. This advance would allow bio-based chemicals and biofuels to be made from more plentiful non-food sources, helping them better compete with petroleum-based chemicals and fuels.

“Feedstock is the single largest driver of overall fuel production economics. While agricultural waste is a common target feedstock, municipal and industrial waste can be near zero cost, or even negative cost,” said Andrew Soare, Lux Research Senior Analyst and the lead author of the report titled, “Cellulosic Chemicals and Fuels Race to Compete with First-Gen Sugar Economics.” Also, improved enzyme technology will also be critical to making bio-based fuels and chemicals from cellulose competitive with those from corn and sugarcane.

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