KIOR - making crude oil from woodchips

At the capex of about $10/gallon (yearly production), KiOR can build a large plant that converts wood waste ($70 per ton - market price) to crude oil.  Their current yield is 67 gallon/ton - that translated to feedstock cost of about $1/gallon.  Add to this opex (energy + personnel), let's say another $1/gallon, and you are left with about $1/gallon in operating profit (assuming $3/gallon ASP).  So it takes about 10 years to get back your original investment - pretty thin margin considering technology risk.

But the technology is cool (if it works, first 800 barrels per day plant, at a cost of roughtly $200m, is to start production before the end of '12).  By the way, this first plant (1/3 of size of full scale commercial plant) has capex of about $16/gallon.