Biomass gasification utilizes renewable feed stocks for liberating the synthesis gas by thermal decomposition under high temperature conditions. Among the factors affecting the production protocol, cost economics play a critical role and is well pronounced in cases when the scale of operation is magnified.
Entrepreneurs of gasification technology often make contracts with farmers or traders so as to ensure a price security and timely uninterrupted availability of their concerned feed commodity. In spite of the strategies, price fluctuations in gasification feed stocks have been witnessed, for instance cost of rice husk was at Rs: 600/tonne in 2009 but has steeply increased to Rs 1800/tonne by the end of 2010 and such an extreme volatility in market prices causes a concern to buyers and affect the final price of the power/unit produced by biomass gasification technology.
Lack of price security has produced an unique trend in gasification where the venturers start their own farms for feed stock production which they claim that it can cut costs by two-third of the actual cost and seems to be working well in particular with dedicated energy crops.
Gasification technology is well balanced economically as entrepreneurs have a scope to sell biochar by-product which fetches good market price to compensate for the cost procurement of the feedstock. Socio-economic and technical factors continuing to challenge the progression of gasification but the productivity makes it a superior choice that cannot be camouflaged.