BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 56 July 2004 

Bio-Oil 

Commercialization Plan 

Prepared for the 

NH Office of Energy and 

Planning 

by 

Cole Hill Associates 

32 Dyke Road 

PO Box 523 

Sugar Hill, NH 03585-5000 

(603) 823-5109 

July 2004 

This material was prepared with financial support from the New Hampshire Governor’s 

Office of Energy and Community Services (ECS) and the New Hampshire Department of 

Resources and Economic Development (DRED). However, any opinions, findings, 

conclusions, or recommendations expressed are those of Cole Hill Associates and do not 

necessarily reflect the views of ECS (now the NH Office of Energy and Planning) or 

DRED and do not constitute an endorsement of products or services mentioned. 

Since this Plan was produced, Cole Hill Associates has relocated: 

Gerald W. Stewart 

Cole Hill Associates 

4 St. Andrews Lane 

Bluffton, SC 29909 

Telephone/Fax (843) 705-5924 

Cell Phone (843) 368-5661
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 56 July 2004 

Introduction 

I. Commercialization Plan Summary†

A. There is a need for an expanded use of low-grade wood chips in the North 

Country of New Hampshire.1a,1b,2

B. One alternative is the conversion of wood chips into bio-oil, an environmentally 

friendly, renewable energy source. 

C. The objective of this study is to evaluate the economic viability of locating a 

bio-oil facility in New Hampshire as an alternative use of wood chips, and to inform 

interested parties as to the current state of bio-oil technology. Contractual 

requirements for developing this commercialization plan specifically forbid the 

selection of and /or bias towards any one producer or process. Therefore, a 

specific process, management structure, ownership scenario, plant location, etc. 

could not be identified; thus specific detailed cost analysis as normally found in a 

commercialization plan was not possible. Rather, average representative costs 

consistent with published industry data were used. The next step in locating a 

commercial bio-oil facility in New Hampshire would be to select a vendor of choice 

and work with that organization to produce a detailed business plan identifying 

management, ownership structure, process parameters, products and market 

analysis sufficient for attracting adequate financing. It is assumed in this initial 

modeling that the resulting entity would be a public/private partnership with 

financing from the partners, local investors, commercial institutions and local 

government. 

D. Bio-oil technology is in the early stage of development; however, one company 

has commercial plants in operation3

 and two other companies are seeking funding 

to build commercial facilities.4,5

E. A 100-ton per day (tpd) plant operating at 90% efficiency using dried wood 

chips containing 8% moisture content by weight would consume approximately 

46,000 tons of green wood chips per year having a 38% average moisture content 

by weight. Such a plant would generate approximately 4.8 million gallons of biooil having the heat equivalent (BTU) of 2.64 million gallons of #2 fuel oil. 

F. The heat content of bio-oil (75,500 BTU per gallon) is only 55% that of #2 fuel 

oil.‡

 Therefore one must burn 1.82 gallons of bio-oil to obtain the same amount of 

heat as released when burning one gallon of #2 fuel oil. At the current price of #2 

fuel oil, $0.86 per gallon in tank car quantities, the equivalent cost of bio-oil would 

be $0.47 per gallon. For bio-oil to be cost competitive with #2 fuel oil on an equal 

 

†

 In this document all units of weight are reported in English Units (eg.1 ton equals 2000 lbs) and all 

currencies are reported in US $’s unless specifically stated otherwise. 

‡

 For this study it was assumed that the market for bio-oil would be small to medium sized industrial boilers 

burning #2 fuel oil, not residential customers. However, during the course of this study it became apparent 

that an alternative market would be larger industrial boilers burning #6 fuel oil. For comparison, bio-oil has 

a 49% lower heat content or an equivalent price of $0.39 as compared to a market price of $0.80 per gallon 

for #6 oil in truckload quantities at Portsmouth, NH in late June 2004. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 57 July 2004 

energy basis the selling price of bio-oil must be less than or equal to $0.47 per 

gallon. This compares to a break-even production cost for bio-oil of $0.71 per 

gallon or a net loss of approximately $0.24 per gallon for a stand-alone facility. In 

smaller quantities the price of #2 fuel oil ranges from $1.10 to $1.29 per gallon or 

an equivalent cost for bio-oil of $0.60 to $0.71 per gallon. 

G. An alternative scenario for reducing the production cost of bio-oil would be to 

co-locate a bio-oil facility with an existing wood fired power plant. Utilization of 

waste heat along with cost sharing of facilities and labor would reduce the 

production price per gallon of bio-oil to approximately $0.55 per gallon. Thus by 

selling to a mix of customers a competitive price might be achieved. 

H. A second alternative and profitable scenario would be to operate a bio-refinery 

where higher value added products would be extracted and sold in addition to 

selling the residual bio-oil. This approach is similar to that used in existing 

commercial plants.3

I. The most attractive option for New Hampshire would be the co-location of a 

bio-refinery with an existing facility such as a wood fired power plant. This 

configuration would provide the maximum profit and return on investment (ROI) 

for investors. Selling bio-oil at $0.55 a gallon, char at $47 per ton and refined 

chemicals at an average price of $0.97per pound would provide a profit with 20% 

return on investment. 

J. Therefore, it can be concluded that there are certain operating scenarios in 

which a bio-oil facility located in New Hampshire, using low-grade wood chips as a 

feedstock, might be economically viable. 

II. Risk Factors 

A. Assumptions: Assumptions used in this report are based on the best currently 

available knowledge of bio-oil technology and business conditions as they currently 

exist in Northern New Hampshire. It is understood that assumptions may change 

based on differences relevant to proprietary technology and conditions unique to 

specific business groups and/or locations. 

B. Critical Factors: Critical factors used in the economic analysis such as 

feedstock moisture content, bio-oil yield, capital cost, return on investment, 

overhead rates and etc. are consistent with those currently being used in northern 

New Hampshire at the time of writing. These parameters may change with time, 

location and/or readers may wish to use parameters more to their liking. If so, the 

accompanying spreadsheet may be used to change these parameters to assess their 

impact on the overall economic analysis. 

C. Emerging Technology: The production of bio-oil from the fast pyrolysis of wood 

chips is in the early stages of development. There is no assurance that this 

technology will emerge as a significant source of alternative fuels and/or become 

an expanded source for value-added chemicals. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 58 July 2004 

D. Feedstock Availability: There is no assurance that existing markets for wood 

chips will not grow and/or that alternative uses of wood chips will not be found. A 

competitive market for wood chips could result in a price increase, thus making the 

production of bio-oil economically impractical. 

E. Limited Access to Technology: To date there are only three companies in North 

America capable of supplying the required technology. Only one of these 

companies has demonstrated the ability to establish a commercial plant. There is 

no assurance that any of these companies are interested in building a plant in New 

Hampshire. There is no assurance that a viable business agreement can be reached 

with any of the potential suppliers. 

F. Limited Source of Information: Much of the information necessary to establish a 

commercial plant is retained as proprietary information. There is no public 

information available to validate and/or contradict many of the assumptions made 

in this study. There are no existing stand-alone commercial plants. Existing 

commercial plants are an integrated part of other commercial processes and most, 

if not all, products generated by the plant are consumed onsite. Operating and 

financial information is retained as proprietary information. Much of the 

information provided in this report was obtained from private conversations and 

presentations made by the potential suppliers, “knowledgeable third party sources” 

and/or from academic studies. 

G. Limited Market: To date sufficient quantities of bio-oil have not been available 

to establish a market. There is no assurance that a viable market will emerge. To 

use bio-oil as an alternative fuel, customers will need to invest time and money into 

converting boilers to burn bio-oil. New value-added chemicals will need to 

compete with existing sources. Barriers to market entry are unknown and could be 

significant. It is uncertain how current market suppliers will react, e.g., reduce 

prices in an effort to eliminate competition. 

H. Permits / Licensing: There has been no attempt to acquire the required local, 

state and federal permits and licenses necessary to operate a bio-oil plant and/or to 

utilize the products generated. A plant site has not been identified. This report 

relies on the fact that commercial plants exist in other U.S. States and in Canada. 

These plants have received the necessary permits without issue. There are also 

technical papers reporting the physical properties of bio-oil, as well as plant 

emissions. 

I. Energy Credits: Various State and Federal Agencies have enacted and/or 

proposed legislation to provide energy credits for specific applications. It is not 

certain that these credits will be enacted and/or if they are, will be applicable to a 

bio-oil facility using currently available technology. For purposes of this report no

benefits related to energy credits are assumed. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 59 July 2004 

III. Capitalization 

A. Capital requirements for a stand-alone bio-oil facility or a bio-refinery would 

be approximately $7.8MM and $10.55MM respectively. The use of capital would 

be as follows: 

Table I. Capital Utilization

B. Sources of capital would be as follows: 

Table II. Source of Funds 

 

Utilization Stand Alone Bio-Refinery

 

 Capital Equipment $ 2,500,000 $ 3,500,000 

 Construction / Installation Cost $ 3,100,000 $ 4,100,000 

 Commissioning @ 6 mths $ 1,500,000 $ 2,100,000 

 Working Capital $ 700,000 $ 850,000 

 

 Total Capital Needs $ 7,800,000 $ 10,550,000 

 

Source of Funds Stand-Alone Bio-Refinery

 1. Equity Investment 

 a. Investors Equity $ 1,100,000 $ 1,500,000 

 b. CDBG Grant for 16 employees $ 320,000 $ 320,000 

 @ $20K per employee 

 2. Sale of Product generated $ 280,000 $ 380,000 

 during commissioning 

 

 3. Bank Financing 

 a. Capital Equipment Loan $ 2,500,000 $ 3,500,000 

 b. Construction Loan $ 3,100,000 $ 4,100,000 

 c. Draw on Line of Credit @ 80% $ 500,000 $ 750,000 

 Receivables, 20% Inventory 

 

 Total Funds Available $ 7,800,000 $ 10,550,000 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 60 July 2004 

Commercialization Plan 

I. Importance of Markets for Low-Grade Wood6

A. The timber industry is important to NH since the state is one of the most 

heavily forested in the nation. 

B. NH forests are primarily privately owned and owners rely on income from the 

harvesting of these woodlots. 

C. NH Division of Forest and Lands show that between 37% and 44% of all 

standing timber in state is considered low-grade. 

D. Low-grade means it does not meet the specification for saw logs used for 

lumber or veneer. 20-80% of the volume of wood harvested during a logging job is 

considered low-grade. From April 1, 2001 to March 31, 2002 sixty percent of 

volume of wood harvested in NH was low-grade. Percentage varied by county with 

a low of 41% in Cheshire County and a high of 69% in Grafton County. In 2001 

NH generated 892,000 tons of wood chips and a total of more than 2,000,000 tons 

of low-grade wood total. 

E. Low-grade markets are pulpwood (primarily used in paper manufacture), 

whole-tree chips used to generate electricity and fuel wood primarily for home 

heating. 

F. Forests also provide wildlife habitat and open space for camping, hiking, etc. 

G. State Forester Philip Bryce in testimony before the NH legislature in 2003 

stated “Markets for low-grade wood are essential to the practice of sustainable 

forestry...Without adequate markets for low-grade wood, there will be limited 

opportunity to maintain and improve the quality of timber upon which our forest 

products industry depends.”7

H. Sawmills also rely on low-grade wood markets as an outlet for mill residue. It 

is estimated that in 2000 NH sawmills produced over 300,000 tons of mill residue 

annually. 

I. Whole tree chips represented 25% of wood harvested in NH in 2001 and used in 

wood-fired power plants. In 2002 power plants provided a market for 1.14 million 

tons of whole tree chips. BioEnergy closed in 2002 (140,000 tons annually) and 

Whitefield Power & Light was scheduled to close in 2003 (180,000 tons annually).†

 

By 2009 the rate orders for all wood fired plants will terminate and it is possible 

that all wood fired power plants could close unless there is a significant change in 

the competitive nature of the market for electricity. 

J. Another major market is pulpwood for the paper industry. NH has two 

significant in-state mills. Because of cutbacks and closing of mills the pulpwood 

 

†

 The owners of Whitefield Power & Light have entered into preliminary agreements with a buyer to purchase 

the power plant with the understanding that the plant will remain in operation. The final sale of the plant and 

thus the continued operation of the plant remain uncertain. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 61 July 2004 

market has decreased from 1,375,000 tons in 1997 to less than 1,000,000 tons in 

2001. 

K. Conclusion: To sustain an active forest industry in NH an alternative market for 

low-grade wood is needed. 

II. What is Bio-oil? 

Physical properties of bio-oil produced from wood have been presented in numerous 

publications and are summarized as follows:8-15 

A. Bio-oil is an organic liquid fuel produced from the fast pyrolysis of low-grade 

wood. In addition to bio-oil, a high quality char and a combustible gas are 

produced at approximately 70%, 17% and 13% respectively. 

B. The bio-oil production process is described as closed loop (i.e. self contained). 

C. Bio-oil is not a petroleum-based product and is insoluble in petroleum-based 

materials such as #2 fuel oil or gasoline. 

D. Bio-oil contains approximately 30% water and has a lower hydrocarbon content 

than petroleum based fuels, thus having a lower heat content approximately 55% 

that of light fuel oil or diesel and approximately 90% of ethanol. 

E. Bio-oil is a transportable liquid similar in properties to petroleum-based fuels. 

Its viscosity is between that of #2 and #6 fuel oil. Similar to diesel, it has a limited 

shelf life. This can be extended by storing at room temperature, in a closed 

container with periodic stirring and/or agitation. 

F. It is slightly more acidic (pH of 2.5 – 3) than petroleum based products and 

should be stored and handled using stainless steel and or polyethylene containers. 

G. Limited studies to date indicate that bio-oil is no more hazardous than similar 

petroleum-based materials and should be handled using similar precautions.16

H. Bio-oil is produced from biomass, a renewable resource, and as such can be 

marketed as a Green Product. 

I. Combustion of bio-oil is CO2 neutral. 

J. Extensive burner studies that have been performed with bio-oil generated from 

wood feedstock show the following:17-22

1. To maintain an energy release rate equivalent to that for petroleumbased fuels requires a greater flow rate approximately 1.6 times that for 

#2 fuel oil. 

2. Typical combustion parameters include an air atomizing burner and a 

fuel handling system similar to that used for emulsified bitumen. 

Biofuel† is stored in a tank with the temperature maintained at about 

 

†

 Certain published documents refer to bio-oil as “biofuel”. For this report when a reference is made to 

biofuel it should be considered to mean bio-oil. It is understood that the term biofuel has a much broader 

meaning than bio-oil. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 62 July 2004 

36oC and a blade impeller mixer to keep the fuel homogenized. Fuel is 

transported to the burner using a positive displacement pump and an inline steam heat exchanger is used to obtain increased uniform fuel 

temperatures at the burner. Nominally preheated atomizing air (114o

 to 

132o

C) is used and flue gas oxygen is maintained at about 5 to 5.5% (15 

to 20% excess air). 

3. Although the bio-oil flow rate is increased, the airflow required to 

maintain effective combustion is similar to that for the petroleum-based 

fuels. 

4. The exhaust gases from bio-oil have a higher content of water vapor 

resulting in a slightly higher dew point for the stack gases, but values are 

well below normal boiler exhaust temperatures. 

5. Composition of the flue gas shows higher CO2 levels from the bio-oil 

with CO and NO levels between those for #2 and #6 fuel oils. TSP 

emissions are close to those for #2 fuel oil and lower than those for 

burning #6 fuel oil. The bio-oil SO2 levels are dramatically lower than 

those for petroleum-based fuels. At lower bio-oil flow rates, i.e. lower 

heat transfer rates, and lower flame temperatures, NO emissions are 

substantially reduced. At comparable flow rates for bio-oil and #2 fuel 

oil the NO emission is reduced by approximately 50%. 

6. Emissions are influenced by the quality of the bio-oil, in particular the 

char/ash content and by the bio-oil contaminants, which are dictated by 

the composition of the biomass feedstock from which the bio-oil was 

produced. 

7. A significant destruction of dioxins/furans occurs during combustion (up 

to 99%). 

8. It is reasonable to expect that combustion systems for fuel oils can be 

converted to use a reasonable quality of bio-oil without producing 

emission levels that would prevent permitting in normal situations. 

K. The quality of char produced is dependent on the feedstock. Whole tree chips 

of either hard or soft wood and/or a mixture results in a high quality char product. 

The char is typically used in the process as a fuel for drying the feedstock. If drier 

feedstocks are available and/or alternative fuels are available to operate the 

pyrolysis process, the char can be sold as a high quality fuel (i.e. charcoal 

briquettes) and/or converted into activated carbon. 

L. The gas produced by pyrolysis is used in the process as a fuel and as the carrier 

gas. The LHV for the gas is approximately 7.7MJ/kg. The use of pyrolysis gases 

as a synthesis gas to produce higher value products would require extensive 

reforming. Due to the unfavorable economy of scale, it probably will not be 

feasible to use pyrolysis gas as a synthesis gas. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 63 July 2004 

III. How is Bio-oil Produced: Pyrolysis Process 

A. All fast pyrolysis applications in North America use some form of a fluidized 

bed reactor.8,12,15 Pyrolysis typically occurs at 5000C or less in an oxygen-free 

atmosphere resulting in essentially the destructive distillation of chemicals from the 

wood. The process is kept at low temperatures to minimize decomposition 

Figure I. Conceptual fluid bed fast pyrolysis process 12 

 

(i.e. increase the amount of oil product) and therefore minimize the production of 

hazardous chemicals such as dioxins and furans.13

B. Essential features of the fast pyrolysis process are: 

1. Very high heating and heat transfer rates which require the moisture content 

of the feedstock to be 5-8% and feedstock to be finely ground to a particle 

size of approximately 2mm. 

2. Carefully controlled pyrolysis reaction temperatures of approximately 

5000C in the vapor phase with short vapor residence times of typically less 

than 2 seconds. 

3. Rapid cooling of the pyrolysis vapors to recover the bio-oil product. 

IV. Companies Utilizing Fast Pyrolysis 

There are three companies in North America utilizing fast pyrolysis to produce biooil and other related products. These are Ensyn Technologies, Inc. (Ensyn), 

DynaMotive Energy Systems Corporation (DynaMotive) and Renewable Oil 

International (ROI). 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 64 July 2004 

A. Ensyn Technologies, Inc.3,23 

1. Is the oldest of the three companies having been in existence since 1984. 

2. Is based in Ottawa, Ontario, Canada with its parent company Ensyn 

Group, Inc. located in Boston, MA. 

3. Utilizes Rapid Thermal Processing (RTPTM)

24 technology or transported 

bed in which a continuous stream of hot sand supplies the heat required 

to rapidly vaporize the wood feedstock. 

4. Is the only company with an existing commercial process, which has 

been in operation since 1989. 

5. Currently have six (6) commercial plants the largest of which processes 

45 tons per day of dry wood for production of food flavorings and byproduct energy. Residual bio-oil and char are being used for process and 

facility heat as well as for producing electricity 

6. Business philosophy is to control their business by maintaining patented 

and proprietary technology. Ensyn will manage and operate facilities 

owned by the Ensyn Group or as a partner in joint ventures with other 

business partners and/or investor groups. 

7. Is promoting a bio-refinery approach analogous to a petroleum refinery 

where raw bio-oil and solid carbon products are produced from lowgrade wood. The bio-oil and carbon are then refined to produce a broad 

spectrum of value-added fuel, chemical and carbon products. The 

products include resins, polymers, emulsifiers, food flavorings and 

activated carbon as well as heat and power produced from the residual 

bio-oil from the refinery process. 

8. As discussed above, the products are renewable, greenhouse gas-neutral, 

extremely low in sulfur content and replace products from nonrenewable petroleum resources. 

9. Is the only rapid pyrolysis company to maintain its own R&D 

laboratory, which explores a wide variety of new applications and 

products from a diverse range of renewable feedstocks. This facility 

houses two RTPTM pilot units. 

10. Examples of commercial products include

i. NR, a natural resin ingredient used as a substitute for 

phenol and formaldehyde in wood panels 

ii. V-Additive, a binder-emulsifier used in the non-wood 

construction industry 

iii. Food additives and products including flavorings, browning 

agents and activated carbons for de-colorization 

iv. Bio-fuels such as solid charcoal and liquid fuels 

v. Green power, with electricity generated using the bio-oil 

products 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 65 July 2004 

10. Ensyn is constructing a new 50,000 sq.ft. facility in Renfrew, Ontario, 

Canada to house a new bio-refinery, which will be capable of processing 

60 tons of dry feedstock per day. This will be the first RTPTM facility to 

integrate the production of multiple commercial products with electricity 

generation. 

B. DynaMotive Technologies Corp.4,25

1. DynaMotive was incorporated in 1991 and is located in Vancouver, 

British Columbia, Canada. 

2. DynaMotive is using a patented BioThermTM process26, which was 

acquired from Resource Transforms International (RTI) in February 

2000. The BioTherm process utilizes a deep bubbling sand fluidized 

bed technology combined with a novel bio-oil recovery system. 

Depending on feedstock the process produces 60-75% liquid bio-oil, 10-

20% solid char and 10-20% non-condensable gas. The char is used as a 

fuel for drying the feedstock and the non-condensed gas is recycled and 

used to heat the fluid bed and as the fluidizing gas. 

3. Bio-oil composition is 20-25% water, 25-30% water insoluble pyrolytic 

lignin, 5-12% organic acids, 5-10% non-polar hydrocarbons, 5-10% 

anhydrosugars and 10-25% other oxygenated compounds. 

4. DynaMotive built a 0.5-tpd prototype in 1997, which was upgraded in 

1998 to a 2-tpd pilot facility, which was operated for over 3,000 hours. 

In 2001 a 10-tpd pilot plant was commissioned which has a production 

capacity of 6,000 liters of bio-oil per day. 

5. DynaMotive expects to commission its first two commercial plants in 

2004. The first will be a 2.5 MW cogeneration plant to be located at the 

Erie Flooring and Wood Products facility in West Lorne, Ontario. 

Magellan Aerospace Corporation – Orenda Division will provide the 

direct-fired gas turbine. A second project with a processing capacity of 

up to 200 green tons per day has been announced, however, the plant 

location has not been released. This project is supported by Technology 

Partnerships Canada. 

6. The company’s business strategy is to be an energy solutions / energy 

service provider. Revenues will be generated from project opportunities 

through technology license fees, design/engineering fees, bio-oil /char 

royalties and/or project equity participation. To achieve these goals 

DynaMotive has entered into an agreement with RTI to acquire 

exclusive worldwide patent rights to the BioTherm technology; is 

working with Orenda Aerospace, a subsidiary of the Magellan 

Aerospace Corporation to develop a bio-oil fueled commercial micro 

turbine package to produce electricity by the direct firing of bio-oil15,27; 

and has formed a strategic alliance with TECNA S.A. which allows 

DynaMotive to access Tecna’s global design engineering expertise for 

plant design and construction. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 66 July 2004 

7. To date DynaMotive has conducted several combustion tests of its biooil product, however, no commercial projects have been announced. 

The Canadian Government and other investors have provided financial 

support. 

C. Renewable Oil International5,28 

1. ROI is a small two-person start-up operation located in Florence, AL 

USA and Ottawa, Ontario, Canada. 

2. ROI’s patent pending process uses a specially designed, indirectly 

heated auger. Proposed advantages are that the process does not require 

an inert gas stream to fluidize a bed or transport hot sand. Elimination 

of the recycle blower and the associated heat load is reported to greatly 

reduce the capital and operating costs for the ROI process. 

3. ROI’s business approach is to develop a low cost, transportable reactor 

to be located in areas where there are limited feedstocks and/or 

integrated into operations with limited waste biomass for feedstock but 

sufficient to produce enough bio-oil for process heat and electrical 

generation. 

4. To date emphasis has been on agricultural waste as a feedstock. A demo 

facility has been constructed using chicken liter as a feedstock. It has 

been reported that ROI is currently negotiating with a wood flooring 

company in Massachusetts to install a plant utilizing sawdust residue to 

produce process heat and onsite electricity. 

V. Economic Variables 

A. Variables affecting operating cost of a bio-oil facility include: 

1. Plant Size: The largest commercial plant currently in operation is 45 tpd 

(plant size is based on dry tons). Ensyn has a 60-tpd facility under 

construction while Dynamotive has completed engineering plans for a 

100-tpd plant. Consensus is that any plant over 100 tpd would be 

modular in design (i.e. multiples of smaller pyrolysis units operating in 

parallel). For this study a 100-tpd plant will be considered. 

2. Plant Availability: It is assumed that the plant will operate 330 days per 

year thus representing 90% availability. 

3. Facility Cost: Dynamotive has estimated facility costs of $2.6MM, 

$5.6MM, $8.2MM and $12.6MM for 25, 100, 200 and 400 tpd plants 

respectfully.25 Ensyn has estimated capital costs for a 45 tpd plant to be 

approximately $2.5MM. Assuming reasonable cost for site preparation, 

construction cost, etc., it is estimated that the overall cost for an Ensyn 

facility would be approximately the same as that for Dynamotive. ROI 

has estimated the cost of capital for a 100-tpd facility to be $375,000 per 

year. Assuming terms of 15 years at 7% with a 20% equity investment, 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 67 July 2004 

this would represent a facility cost of approximately $4.2MM. The 

reduced facility cost for an ROI installation reflects the difference in 

technology, i.e. use of indirectly heated auger design. 

For this study the more conventional fluidized bed design utilized by 

Dynamotive and Ensyn with an estimated facility cost of $ 5.6MM will 

be used. Assuming 20% equity investment and borrowing of $4.48MM 

over a period of 15 years at an average interest rate of 7%, the annual 

debt payment (principal and interest) will be approximately $500,000. 

For a 100-tpd plant, capital cost would account for approximately 15% 

of the annual operating cost of the facility. 

4. Feedstock: Composition and moisture content of the feedstock affects 

both operating cost and product distribution, thus directly affecting 

profitability. 

a) Composition of the feedstock can vary from whole tree (white 

wood) chips to a blend of white wood and bark (nominally 60% 

white wood and 40% bark). Product distribution will vary from 66% 

oil, 21% char and 13% gas for a blend of white wood and bark, to 

72% oil, 15% char and 13% gas for whole tree chips. Although 

whole tree chips increase oil production by approximately 10%, this 

must be offset by an increased cost for whole tree chips of 

approximately 25%. 

b) Moisture content for a 60/40 blend of chips is approximately 

44% as compared to 38% for whole green tree chips‡

. Thus a 60/40 

blend would require an additional 8,000-ton per year of chips plus 

the increased cost to remove an additional 6% of moisture. 

c) Cost: Currently Whitefield Power & Light is paying $23 per ton 

for whole green tree chips on the open market.29 It is assumed that a 

long-term contract could be negotiated for $18 per green ton. For 

this study it is assumed that whole tree chips at a cost of $18 per 

green ton will be used. At $18/t feedstock would be the greatest cost 

factor representing 25% annually. 

5. Electricity Consumed: Based on a plant layout as presented above, it is 

estimated that a bio-oil plant will consume approximately 7.75M kWh of 

electricity per year. At a cost of 7.2 cents per kWh the cost of electricity 

would represent approximately 17% of the annual operating cost. 

Electricity costs are based on the current Public Service of New 

Hampshire (PSNH) rate structure as presented in Table III.30

6. Labor Cost: It is assumed that the plant will operate 24 hours a day, 

seven days a week with 8-hour shifts. This will require 16 full time 

 

‡ Moisture content will vary based on various factors including type of wood, location, harvest season, length 

of storage, etc. For this report it is assumed that the average moisture content for whole wood chips at time of 

consumption is 38%. The chips will be dried to 8% moisture content, thus removing approximately 80% of 

the moisture. The moisture content will vary based on local conditions. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 68 July 2004 

 

Total Use Monthly Annual 

 645,833 7,750,000 

Monthly Charges 

Energy $ 30,160.42 

Customer Charge $ 319.43 

Systems Benefit $ 1,937.50 

Electricity Consumption Tax $ 35.52 

Off-peak $ 7,544.63 

On-peak - first 150 kWh $ 5.63 

On-peak - all other $ 6,400.36 

 

Total $ 46,403.49 $ 556,842 

Cost per kWh $ 0.072 

Table III. Electric use for a bio-oil facility using PSNH rate structure.

hourly employees at an average annual salary of $31,200 for plant 

operations. In addition, G&A will require one salaried manager, 

$62,500 annually, and 1.5 full-time equivalent hourly staff at $31,200 

annually. A labor overhead rate of 20% is assumed. Labor cost will 

represent 22% of the annual operating expense. 

7. Royalty / License Fee: A royalty / license fee of 3% of total revenue is 

assumed. 

8. Other assumptions and conversion factors are given in Table IV. 

VI. Pro Forma Income Statement for a stand alone bio-oil facility 

A. Factors affecting income include the following: 

1. Heat Content: The heat content of bio-oil is approximately 55% that of 

#2 fuel oil. To obtain the same energy release as that of oil it would take 

1.82 times more bio-oil. 

2. Price Per Gallon: The consumer tank car price for #2 fuel oil on 

October 29, 2003 at port of New York was $0.86 per gallon.31 The biooil cost equivalent would be $0.47 per gallon. Assuming operating cost 

as stated above, a bio-oil facility would generate a loss of approximately 

$970,000 annually (Table V). The breakeven price would be $0.71. 

3. To attract a serious investor and bank financing, it is assumed that a biooil plant would need to generate a minimum 20% return on investment 

(ROI). A 20% ROI would require a bio-oil sale price of $0.76 per 

gallon. See Table VI. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 69 July 2004 

 Item Amount

Plant Size 100 tpd 

Plant Availability 90%, 330 days/yr 

Raw Feedstock Consumed 45,540 green t/yr 

Feedstock Cost $ 18/green ton 

Feedstock Composition Whole Wood Chips 

Moisture Content 38% 

Bio-oil Yield 72% 

Bio-oil Production 4,752,000 gal/yr 

Bio-oil Yield per ton 200 gal/t bio-oil 

Bio-oil Heat Content 75,500 btu/gal 

Cost of #2 Fuel Oil $ 0.86 

Density Bio-oil 1.2 kg/l - 10.04 lbs/gal 

Char Yield 15% 

Char Production 4,950 t/yr 

Plant Capital Cost $ 5.6MM 

Equity 20% 

Debt Financed $4.48MM 

Return on Investment (ROI) 20% 

Debt Amortization 15yr 

Finance Rate 7% 

Electricity Consumed 7,750,000 kWh 

Cost of Electricity $0.072/kWh 

Labor Rate (Hourly) $31,200/yr 

Labor Rate (Salaried) $62,500/yr 

Production Staff 16 

G&A Staff 1 (Salaried) 

 1.5 fte (hourly) 

Overhead Rate 20% 

Process Heat Bio-gas and Bio-oil for pyrolysis heat 

 Char for dryer heat 

 Bio-Oil Consumed 6% 

 Char Consumed 31% 

Maintenance Cost (%Capital) 5% 

Consumables (%Sales) 5% 

Royalty / License Fee (% Sales) 3% 

Table IV. Assumptions and Conversion Factors Used in Financial Calculation 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 70 July 2004 

Table V. Pro Forma Income Statement for a Stand Alone Bio-oil Plant 

 Bio-oil Sale Price $0.47 per gallon 

 Stand Alone Bio-Oil Plant 

 

Net Sales 

 Bio-oil $ 2,099,434 

 Char $ 159,924 

 Electricity - 

 Chemicals - 

Total Sales $ 2,259357 

Cost of Goods Sold 

 Labor & Overhead $ 599,040 19%

 Feedstock $ 819,720 25%

 Electricity $ 556,838 17%

 Consumables $ 112,968 4%

 Maintenance $ 280,000 9%

Total CGS $ 2,368,565 

Gross Profit / (Loss) $ (109,208) 

Operating Expenses 

 SG&A $ 131,160 4%

 Cost of Money $ 491,880 15%

 Royalty $ 67,781 2% 

 Property Tax $ 168,000 5% 

Total Operating Expense $ 858,821 

 

Net Profit / (Loss) $ (968,029) 

 

Break Even Bio-oil Price $ 0.71 /gal 

Break Even Electricity Price $ - /kWh 

Break Even Chemical Price $ - /lb 

20% ROI Bio-oil Price $ 0.76 /gal 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.47 /gal 

 Price of # 2 Fuel Oil $ 0.86 /gal 

 Char Sales Price $ 47 /ton 

 Electricity Sale Price $ - /kWh 

 Chemicals Sale Price $ - /lb 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 71 July 2004 

Table VI. Pro Forma Income Statement for a Stand Alone Bio-oil Plant 

 Stand Alone Bio-Oil Plant 

 

Net Sales 

 Bio-oil $ 3,394,829 

 Char $ 159,924 

 Electricity - 

 Chemicals - 

Total Sales $ 3,554,752 

Cost of Goods Sold 

 Labor & Overhead $ 599,040 18%

 Feedstock $ 819,720 25%

 Electricity $ 556,838 17%

 Consumables $ 177,738 5%

 Maintenance $ 280,000 8%

Total CGS $ 2,433,335 

Gross Profit / (Loss) $ 1,121,417 

Operating Expenses 

 SG&A $ 131,160 4%

 Cost of Money $ 491,880 15%

 Royalty $ 106,643 2% 

 Property Tax $ 168,000 5% 

Total Operating Expense $ 897,682 

 

Net Profit / (Loss) $ 223,735 

 

Break Even Bio-oil Price $ 0.71 /gal 

Break Even Electricity Price $ - /kWh 

Break Even Chemical Price $ - /lb 

20% ROI Bio-oil Price $ 0.76 /gal 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.76 /gal 

 Char Sales Price $ 47 /ton 

 Electricity Sale Price $ - /kWh 

 Chemicals Sale Price $ - /lb 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 72 July 2004 

4. To achieve a 20% ROI, one or more of the following would be needed: 

a) The price paid for feedstock is lowered to $2.50 per ton. 

b) Sell to customers with lower oil consumption, i.e. those who do 

not buy at tank car prices. Irving Oil’s 2003 contract price to small 

business in the Littleton, NH area ranged from $1.10 to $1.29 per 

gallon. Assuming $0.05 per gallon delivery cost, the equivalent 

price for a gallon of bio-oil would be $0.63 - $0.74 per gallon. 

c) Reduce operating cost: Co-locating the bio-oil plant with an 

existing power plant such as Whitefield Power & Light could lower 

operating cost. Savings of approximately $768,000 are estimated as 

follows: 

(1) By sharing the existing wood handling facilities, capital 

equipment needs can be reduced by an estimated $800,000, 

thus reducing the cost of money approximately $90,000 

annually. 

(2) Co-sharing of labor could reduce savings by 

approximately $365,000 annually. 

(3) Utilization of waste heat from the power plant rather than 

using char and bio-oil to dry the feedstock, thus allowing all 

of the char and bio-oil produced to be sold. This would result 

in increased sales of approximately $240,000 annually. 

(4) Assuming electricity could be purchased directly from the 

plant at a savings of $0.008 /kWh would result in a savings of 

approximately $73,000 annually. 

(5) By co-locating with an existing wood fired power plant 

and selling bio-oil to a mix of customers at an average sales 

price of $0.55 per gallon a 20% ROI could potentially be 

achieved. See Table VII. 

VII. Alternative Plant Configurations: Combined Bio-oil / Electric 

Generating Plant. 

A. Power generating plant utilizing a direct-fired gas turbine. 

1. Operating Cost: Capital cost to include a direct-fired gas turbine and 

equipment necessary to connect to the grid would cost an additional 

$3M.32 This would require an additional $600,000 in equity and an 

additional $265,000 in cost of money annually. The proposed 

turbine would generate 2.5 MW of electricity and consume 

approximately 75% of the bio-oil generated.27 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 73 July 2004 

Table VII. Pro forma Income Statement For Bio-oil Plant Co-Located with Wood Fired 

Power Plant 

Bio-Oil Plant Co-Located with Wood Fired Power Plant 

 

Net Sales 

 Bio-oil $ 2,613,600 

 Char $ 232,650 

 Electricity - 

 Chemicals - 

Total Sales $ 2,846,250 

 

Cost of Goods Sold 

 Labor & Overhead $ 299,520 11% 

 Feedstock $ 819,720 31% 

 Electricity $ 426,250 16% 

 Consumables $ 142,313 5% 

 Maintenance $ 240,000 9% 

Total CGS $ 1,927,803 

 

Gross Profit / (Loss) $ 918,448 

Operating Expenses 

 SG&A $ 65,580 2% 

 Cost of Money $ 421,611 16% 

 Royalty 85,387.50 3% 

 Property Tax $ 144,000 5% 

Total Operating Expense $ 716,579 

 

Net Profit / (Loss) $ 201,869 

Break Even Bio-oil Price $ 0.50 /gal 

Break Even Electricity Price - /kWh 

Break Even Chemical Price - /lb 

20% ROI Bio-oil Price $ 0.55 /gal 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.55 /gal 

 Char Sales Price $ 47 /ton 

 Electricity Sale Price - /kWh 

 Chemicals Sale Price - /lb 

 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 74 July 2004 

2. Profitability: Assuming the current price paid for electricity on the 

open market to be $0.03959 /kWh* there would be an operating loss 

of approximately $1.82M annually. The breakeven price would be 

$0.123/kWh and to achieve 20% ROI would require $0.138/ kWh. 

See Table VIII. 

3. Energy Credits: There are numerous state and federal bills being 

considered to provide credits for producing “clean electricity”.33 

These include CO2, SO2, NOx and renewable portfolio standards 

(RPS). To date Connecticut, Massachusetts, and Rhode Island have 

enacted an RPS standard. With all of these measures becoming 

reality one can envision an additional 4-7 cents /kWh. This support 

is not a certainty and if enacted would be several years before the 

effects would be completely realized. The assumption is that one 

cannot rely on energy credits at this time. 

B. Convert an existing wood fired plant to burn bio-oil. 

1. Converting the boiler to burn bio-oil would be less expensive; 

however, the existing steam turbine at the wood fired power plant is 

rated at 16 MW. Operating the turbine off peak would not be costeffective. To fully utilize the existing steam turbine would require 

scaling the bio-oil plant to 250 tpd. This option is outside the scope 

of this study. 

2. Another alternative would be to eliminate both the existing wood 

fired boiler and steam turbine, replacing them with a 2.5 MW directfired gas turbine. This option is also considered to be outside the 

scope of this study. 

VIII. Alternative Plant Considerations: Bio-oil Refinery 

A. Existing commercial bio-oil plants are considered bio-refineries in that higher 

value added products are “refined” from the bio-oil. The residual bio-oil is then 

used in a combined cycle application to produce process heat and/or generate 

electricity via a steam turbine. An example of this is the Ensyn plant operated by 

Red Arrow in which food flavorings are extracted from the bio-oil and the residual 

bio-oil is used to generate process heat for the Red Arrow plant. Ensyn’s new plant 

under construction in Renfrew, Ontario will presumably produce a phenolic resin 

for the fiberboard industry and the residual bio-oil will be used to produce 

electricity. Cost considerations for a bio-refinery are as follows: 

1. The basic pyrolysis operation is the same as discussed for a standalone plant. In addition, one must add the additional expense of the 

 

• Whitefield Power & Light reported that the average monthly energy clearing price, May 1999 – 

February 2003 was $0.03959/ kWh. WP&L estimates their break-even cost, which includes their 

current cost of feedstock to be $0.045/ kWh. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 75 July 2004 

Table VIII. Pro forma Income Statement for a combined Bio-oil / Electric Generating 

Plant. 

Bio-Oil Power Generating Plant 

 

Net Sales 

 Bio-oil $ 614,196 

 Char $ 159,924 

 Electricity $ 867,021 

 Chemicals - 

Total Sales $ 1,641,141 

 

Cost of Goods Sold 

 Labor & Overhead $ 599,040 17% 

 Feedstock $ 819,720 24% 

 Electricity $ 322,164 9% 

 Consumables $ 82,057 2% 

 Maintenance $ 430,000 12% 

Total CGS $ 2,252,981 

 

Gross Profit / (Loss) $ (611,840) 

Operating Expenses 

 SG&A $ 131,160 4% 

 Cost of Money $ 755,387 22% 

 Royalty $ 49,234 1% 

 Property Tax $ 258,000 7% 

Total Operating Expense $ 1,193,781 

 

Net Profit / (Loss) $ (1,805,621) 

Break Even Bio-oil Price $ - /gal 

Break Even Electricity Price $ 0.122 /kWh 

Break Even Chemical Price $ - /lb 

20% ROI Electricity Price $ 0.138 /kWh 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.55 /gal 

 Char Sales Price $ 47.00 /ton 

 Electricity Sale Price $ 0.040 /kWh 

 Chemicals Sale Price $ - /lb 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 76 July 2004 

refinery operation. Actual configuration and cost of the refinery are 

proprietary; however, from discussions with Ensyn management it is 

estimated that capital equipment cost would be approximately 

$1MM with a total installation cost of approximately $2MM. 

Operating costs have been adjusted proportionally. 

2. Chemical Extraction: A 25% reduction in bio-oil production is 

assumed when chemicals are extracted. This is consistent with 

analysis showing that typically 30% of the bio-oil recovered is a socalled phenolic/neutral fraction. It is estimated that this phenolic 

fraction will yield approximately 12% by weight phenolic resin. For 

a 100-tpd plant this represents a production of approximately 1.6 

million pounds of phenolic resin annually. In a paper by Dr. Esteban 

Chornet it is reported that the value of such lignin-derived chemicals 

is $3.00 per kg ($1.36 per lb).31 The price of charcoal is reported as 

$120 per tonne ($109 per ton).Using these prices the income from 

the sale of resins and charcoal would be approximately $2.18MM 

and $0.371MM annually. A pro forma income statement based on 

the above assumptions is presented in Table IX. 

IX. Co- Location of a Bio-Refinery with an Existing Wood Fired Power 

Plant 

A. Economically, the best configuration would be to co-locate a bio-refinery with 

an existing wood fired power plant. A pro forma income statement is presented in 

Table X. 

B. Selling bio-oil at $0.55 a gallon, char at $109 per ton and chemicals at $1.36 a 

pound, a net profit of approximately $1.12MM annually could be realized. 

Reducing the sales price of chemicals to $0.85 per pound or jointly reducing the 

sales price of char and chemicals to $47/ton and $0.97/lb respectively would still 

provide a 20% ROI. 

IX. References 

1a Innovative Natural Resource Solutions LLC and Draper Lennon, Inc. Identifying and 

Implementing Alternatives to Sustain the Wood-Fired Electricity Generating Industry in 

New Hampshire. Prepared for the NH Department of Resources and Economic 

Development. January 2002. 

1b Innovative Natural Resource Solutions LLC and Draper Lennon, Inc. Use of Low Grade 

and Underutilized Wood Resources in New Hampshire. Prepared for the NH Department 

of Resources and Economic Development. February 2001. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 77 July 2004 

Table IX. Pro forma Income Statement for a Bio-Refinery 

Stand Alone Bio-Refinery 

 

Net Sales 

 Bio-oil $ 1,719,749 

 Char $ 370,887 

 Electricity $ - 

 Chemicals $ 2,177,435 

Total Sales $ 4,268,070 

 

Cost of Goods Sold 

 Labor & Overhead $ 599,040 16% 

 Feedstock $ 819,720 21% 

 Electricity $ 612,521 16% 

 Consumables $ 213,404 6% 

 Maintenance $ 380,000 10% 

Total CGS $ 2,624,685 

 

Gross Profit / (Loss) $ 1,643,385 

Operating Expenses 

 SG&A $ 206,160 5% 

 Cost of Money $ 667,551 17% 

 Royalty $ 128,042 3% 

 Property Tax $ 228,000 6% 

Total Operating Expense $ 1,229,753 

 

Net Profit / (Loss) $ 413,632 

Break Even Bio-oil Price $ 0.55 /gal 

Break Even Electricity Price $ - /kWh 

Break Even Chemical Price $ 1.10 /lb 

20% ROI Chemical Price $ 1.29 /lb 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.55 /gal 

 Char Sales Price $ 109 /ton 

 Electricity Sale Price $ - /kWh 

 Chemicals Sale Price $ 1.36 /lb 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 78 July 2004 

Table X. Pro forma Income Statement For Bio-Refinery Co-Located with Wood Fired 

Power Plant 

Bio-Refinery Co-Located with Wood Fired Plant 

 

Net Sales 

 Bio-oil $ 1,719,749 

 Char $ 370,887 

 Electricity $ - 

 Chemicals $ 2,177,435 

Total Sales $ 4,268,070 

 

Cost of Goods Sold 

 Labor & Overhead $ 299,520 9% 

 Feedstock $ 819,720 26% 

 Electricity $ 468,875 15% 

 Consumables $ 213,404 7% 

 Maintenance $ 340,000 11% 

Total CGS $ 2,141,519 

 

Gross Profit / (Loss) $ 2,126,552 

Operating Expenses 

 SG&A $ 103,080 3% 

 Cost of Money $ 597,283 19% 

 Royalty $ 128,042 4% 

 Property Tax $ 204,000 6% 

Total Operating Expense $ 1,032,405 

 

Net Profit / (Loss) $ 1,094,147 

Break Even Bio-oil Price $ - /gal 

Break Even Electricity Price $ - /kWh 

Break Even Chemical Price $ 0.68 /lb 

20% ROI Bio-oil Price $ 0.87 /lb 

 

Assumptions 

 Feedstock $ 18 /ton 

 Bio-oil Sale Price $ 0.55 /gal 

 Char Sales Price $ 109 /ton 

 Electricity Sale Price $ - /kWh 

 Chemicals Sale Price $ 1.36 /lb 

 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 79 July 2004 

2

 Innovative Natural Resource Solutions LLC. Markets for Low-Grade Wood in New 

Hampshire. Prepared for the Governor’s Office of Energy and Planning. January 2004. 

and references therein. 

3 Ensyn Technologies, Inc. web site, www.ensyn.com 

4

 DynaMotive Energy Systems Corporation web site, www.dynamotive.com 

5

 Renewable Oil International web site, www.renewableoil.com 

6

 Innovative Natural Resource Solutions LLC. Feedstock Availability and Pricing. 

Prepared for the New Hampshire Office of Energy and Planning. January 2004. and 

references therein. 

7

 Letter from the NH Division of Forests & Lands on House Bill 787 to Rep. John 

Thomas, Chair, NH House Committee on Science, Technology and Energy. March 5, 

2003. 

8

 Czernik, Stephan. Review of Fast Pyrolysis of Biomass. Presentation by National 

Renewable Energy Laboratory, Department of Energy. Concord, NH. August 16, 2002. 

9

 Bridgewater, Tony. A Guide to Fast Pyrolysis of Biomass for Fuels and Chemicals. 

PyNe Guide 1, Aston University. March 1999. 

10 Ensyn Group, Inc. Bio-Oil Combustion Due Diligence: The Conversion of Wood and 

Other Biomass to Bio-Oil. June 2001. 

11 www.SciTecLibrary.ru. The Review of Modern Technologies of the Production of Liquid 

Fuel from Biomass using Fast Pyrolysis, June 12, 2000. 

12 Bridgewater, A. V., “An Introduction to Fast Pyrolysis of Biomass for Fuels and 

Chemicals” in Fast Pyrolysis of Biomass: A Handbook, edited by Bridgewater, A. et.al. 

(CPL Scientific Publishing Services Limited, Newbury, 1999), pp. 1-13. 

13 Diebold, J. P. and Bridgwater, A. V. “Overview of Fast Pyrolysis of Biomass for the 

Production of Liquid Fuels” in Fast Pyrolysis of Biomass: A Handbook, edited by 

Bridgewater, A. et.al. (CPL Scientific Publishing Services Limited, Newbury, 1999), pp. 

14-32. 

14 Lédé, J. Diebold, J. P., Peacocke, G. V. C., and Piskorz, J. “The Nature and Properties of 

Intermediate and Unvaporized Biomass Pyrolysis Materials” in Fast Pyrolysis of Biomass: 

A Handbook, edited by Bridgewater, A. et.al. (CPL Scientific Publishing Services Limited, 

Newbury, 1999), pp. 33-49. 

15 Morris, Keith, Johnson, Warren and Thamburaj, Raj. Fast Pyrolysis of Biomass for 

Green Power Generation. 1st World Conference and Exhibition on Biomass for Energy 

and Industry, Seville, Spain. June 2000. 

16 Morris, Keith, Piskorz, Jan and Majerski, Piotr. BioThermTM: A System for Continuous 

Quality, Fast Pyrolysis BioOil. 4th Biomass Conference of the Americas, Oakland, CA. 

September 1999. 

17 Diebold, J. P. “A Review of the Toxicity of Biomass Pyrolysis Liquids Formed at Low 

Temperatures” in Fast Pyrolysis of Biomass: A Handbook, edited by Bridgewater, A. et.al. 

(CPL Scientific Publishing Services Limited, Newbury, 1999), pp. 135-163. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 80 July 2004 

18 Sturzl, Ray. The Commercial Co-Firing of RTPTM Bio-Oil at the Manitowoc Public 

Utilities Power Generating Station. June 1997. 

19 Ensyn Technologies Inc. Boiler Performance and Emission Compliance of Pyrolysis 

Oils. Prepared for Natural Resources Canada, Ottawa, Ontario. Catalogue No. M91-

7/424-1997E. October 1995. 

20 Wong, J.K.L., Banks, G.N. and Whaley, H. Flame Tunnel Emissions Testing of ENSYN 

Liquid Bio-Fuels. Canada Centre for Mineral and Energy Technology. May 1995. 

21 CSP Environmental Consultants, LTD. Canmet Flame Tunnel Stack Air Emissions 

During Burning of Two Ensyn RTP Biomass Fuels. Prepared for Ensyn Technologies Inc. 

March 1995. 

22 Hogan, Ed. The Pyrolysis Bio-Refinery Concept for the Production of Green Fuels and 

Chemicals. Presentation by Natural Resources Canada. Concord, NH. August 2002. 

23 Boulard, David. Bio-Oil: The New Crude. Presented by Ensyn Technologies Inc. 

Concord, NH. August 2002. 

24 Ensyn Patent 

25 DynaMotive Technologies Corp. Presentation at Bio-Oil Briefing Workshop, Concord, 

NH. August 2002. 

26 Piskorz et. al., United States Patent No. 5,728,271 “Energy Efficient Liquefaction of 

Biomaterials by Thermolysis.” March 1998. 

27 Magellan Aerospace Corporation. Presentation at Bio-Oil Briefing Workshop, Concord, 

NH. August 2002. 

28 Renewable Oil International. Presentation at Bio-Oil Briefing Workshop, Concord, NH. 

August 2002. 

29 Private communication. Doug York, Plant Manager, Whitefield Power & Light. 

November 2003. 

30 Private communication. Eric Kingsley, Vice President, Innovative Natural Resource 

Solutions LLC. November 2003. 

31 Hess Corporation. Consumer Tank Car Prices for No. 2 Oil per gallon at NY Harbor, 

October 29, 2003. 

32 Private communication. DynaMotive Technologies Corp. June 2002. 

33 Innovative Natural Resource Solutions LLC. Energy Issues for Possible Bio-oil 

Production Facility. Prepared for the NH Office of Energy and Planning. January 2004. 

and references therein. 

34 Chornet, Esteban. Technical Review of the River Valley Pyrolysis Project: MarketReady Products and Near-Market Products Derived from Pyrolysis Oil. June 2003. 
BIO-OIL COMMERCIALIZATION PLAN 

Cole Hill Associates Page 81 July 2004 

X. Appendix I 

The attached CD contains a folder entitled Pro Forma Income Calculations. This is 

an Excel Spreadsheet with all of the financial assumptions and conversion terms as 

well as calculations for all plant configurations considered in this report. Using this 

spread sheet, recipients will be able to make their own assumptions by changing the 

input parameters and thus assess the financial impact of these changes on the 

various plant options considered herein.