A systematic quantification of performance factors has potential for making better informed decisions for biofuel development

A set of financial performance criteria that are suitable for retrofit forest biorefinery project appraisal are presented. A systematic quantification of performance factors has potential for making better informed decisions for biofuel development. Forest biorefinery strategies can potentially have a better financial return as the result of retrofit implementation into existing facilities; however the extent of this benefit is mill specific. Moreover, process integration leads to changes in production costs of core business pulp and paper products. Several metrics can be used for measuring project and business performance, for example economic potential, payback period, return on investment, gross profit, minimum selling price, internal rate of return (IRR) or net present value (NPV). Revenue diversification, operating performance and cost reduction are important factors for the overall ranking.