A COMMENT ON THE OPTIMAL SIZING OF A BIOMASS UTILIZATION FACILITY UNDER CONSTANT AND VARIABLE COST SCALING

Two solutions are obtained for the optimal size of a biomass utilizati on facility subject to an economy of scale in capital and non-fuel ope rating costs. The conventional assumption of constant-scaling paramete r over all capacities leads to a larger optimum than if the scaling fa ctor is increased asymptotically towards with increasing capacity to r eflect technical and economic constraints or risks. Lack of appropriat e scaling data for larger sizes makes the question of general optimiza tion for biomass facilities uncertain. and conclusions regarding devel opment policies based on assumptions of constant cost scaling should b e carefully tested. (C) 1997 Elsevier Science Ltd.