​​Comparative Analysis of Steam Boiler Fuel Costs​

This study compares the cost of producing one tonne of saturated steam (at 194 °C and 1.25 MPa) from five different energy sources—biomass, coal, natural gas, oil and electricity—assuming feed water enters at 25 °C. We base all figures on global average fuel prices, typical thermal efficiencies and basic thermodynamics.

Biomass Steam Boiler Fuel Cost

• Efficiency: 70–85 %

• Fuel Use: 150–200 kg per tonne of steam (at 4 000 kcal/kg)

• Price: $120–150 /ton for raw agricultural waste; $180–220 /ton for processed pellets

• Cost of Steam: $18–40 (low-grade) or $36–44 (premium) per tonne

Biomass scores well for being carbon-neutral and renewable. However, feedstock quality varies and ash handling adds complexity to operations.

Coal Steam Boiler Fuel Cost

• Efficiency: 65–80 %

• Fuel Use: 130–180 kg per tonne of steam (at 5 000 kcal/kg)

• Price: $80–100 /ton

• Cost of Steam: $10–18 per tonne

Coal delivers the cheapest steam generation but is increasingly restricted by environmental regulations targeting SO₂ and NOₓ emissions.

Natural Gas Steam Boiler Fuel Cost

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• Efficiency: 85–95 %

• Fuel Use: 70–80 m³ per tonne of steam (at 8 500 kcal/m³)

• Price: $3.50–4.50 /m³ (LNG benchmark)

• Cost of Steam: $24.50–36 per tonne

Natural gas is popular for its low emissions footprint and high efficiency, though pipeline infrastructure adds to overall costs.

Fuel Oil Steam Boiler Fuel Cost

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• Efficiency: 80–87 %

• Fuel Use: 55–65 kg per tonne of steam (at 9 600 kcal/kg)

• Price: $900–1 100 /ton (Brent-linked)

• Cost of Steam: $49.50–71.50 per tonne

Oil prices can swing dramatically with global markets, and carbon levies may further inflate costs.

Electricity Steam Boiler Cost

• Efficiency: 95–98 %

• Power Use: 650–720 kWh per tonne of steam

• Rate: $0.10–0.15 /kWh (off-peak industrial tariff)

• Cost of Steam: $65–108 per tonne

Electric boilers achieve the highest thermal efficiency. Pairing them with renewables or thermal storage can cut reliance on the grid and smooth out price volatility.

Cost Comparison (per tonne of steam)

1. Coal: $10–18

2. Biomass: $18–44 (depending on quality)

3. Natural Gas: $24.50–36

4. Fuel Oil: $49.50–71.50

5. Electricity: $65–108

These figures illustrate that, while coal remains the cheapest fuel for steam production, cleaner alternatives such as biomass and natural gas offer competitive costs when environmental compliance and carbon neutrality are factored in.