Biomass and biofuel stores: Economics
Cheap to store, but supply follows the harvest
What this tab covers Economics and financial structure: capital versus operating cost, levelised cost of storage, and how the asset earns money.Bio-stores are among the cheapest energy stores per MWh, but holding costs include losses, quality testing and safety systems, and fuel supply is seasonal.
Capex versus opex
FavourableCapital is mostly sheds, silos, tanks and gasholders, all cheap per unit of energy. Opex comes from handling, drying, ventilation, quality testing (biodiesel and ethanol every 1-2 months) and losses. Because ethanol holds about 35% less energy per gallon than petrol (calculated from 76,300 vs 116,900 Btu; DOE's handbook rounds this to about 30%), the same tank holds less energy, raising storage cost per MWh.45
Ethanol energy deficit per gallon vs petrol about 35% (calculated)5Levelised cost of storage
MixedNo published levelised cost per MWh delivered was found for biomass or biofuel stores; their costs are usually folded into fuel prices. The value of charcoal is large: about USD 14 billion a year in Africa, and in Kenya about twice the value of tea, according to ICRAF researchers, which shows how much economic activity rests on a store with only 10-30% conversion efficiency.8
Charcoal value in Africa about USD 14 billion8 Kenya charcoal vs tea USD 1.6 bn vs USD 0.8 bn8Revenue stack and market participation
MixedStored biofuels earn from fuel sales and blending mandates, and stored biomass from heat and power. In India, a 5-10% pellet co-firing mandate in coal plants creates demand, with 71 plants co-firing by August 2025, according to the Commission for Air Quality Management (CAQM). Biogas storage lets small plants sell power at peak prices. These stores rarely take part in fast grid services.7
India co-firing mandate 5-10% biomass in pulverised coal boilers7 Plants co-firing 71 (Aug 2025)7Sources
- Biodiesel Handling and Use Guide, Sixth Edition (NREL/TP-4A00-86939) NREL (renamed National Laboratory of the Rockies in 2025) / US DOE, 2023
- Handbook for Handling, Storing, and Dispensing E85 and Other Ethanol Blends US Department of Energy, 2016
- Decarbonising coal: co-firing as a viable pathway to cleaner thermal power generation (reporting CAQM and Ministry of Power data) Renewable Watch, 2026
- Can woodfuel (charcoal and firewood) be modernized in Africa? (Njenga, Mwampamba, Mendum) ICRAF / Global Landscapes Forum, 2018