Back of the envelope economics

Feedstock: trees $ 40 per ton wet basis, $ 0.04 per pound dry basis

Assume maximum composition and perfect yields.

Calculation basis: 100 pounds of wet wood

50 pounds of cellulose converts to 50 pounds of glucose @ $ 0.15 per pound

25 pounds of pentose sugars worth $0.04 per pound as cattle feed

25 pounds of lignin worth $0.25 as adhesive extender

Raw material cost = $ 4

Products value =

glucose $ 7.50 + pentose syrup $ 1.00 + lignin $ 6.25 = $ 14.75

More realistic composition and yields: glucose $ 6 + pentose syrup $ 0.50 + lignin $ 5 = $ 11.50

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Conclusions

Coproducts are essential

Not much room for processing cost

Not particularly attractive with cheap feedsock

Still not great if free feedstock

Should avoid high capital cost