The paper describes results of the BioCosts project in which a comprehensiv
e analysis of the economic and environmental performance of the energy use
of biomass was carried out for selected existing facilities throughout the
European Union. It is demonstrated that the appropriately organized use of
biofuels has significant environmental advantages compared to the use of fo
ssil fuels. Mitigation of global warming is the largest single incentive to
use biofuels, However, only a few technologies are economically competitiv
e under prevailing conditions, while others lead to up to 100% higher energ
y production costs than fossil fuels. Employment effects of using biofuels
are small but positive. (C) 2000 Elsevier Science Ltd. All rights reserved.