Fig. 4 summarizes the variation in facility IRRs and MSP at different capacities. If we fixed the IRR to be 10%, the MSP will drop rapidly from 14.96 $/GGE to 5.59 $/GGE as facility size increases from 500 to 1900 t d1 and drop at a slower rate beyond 1900 t d-1. When the facility size is 5000 t d1, the MSP is about 3.5 $/GGE, which is the average gasoline price for the next 20 years according to EIA’s prediction (EIA, 2014). On the other hand, if we assume the selling price of biofuel to be $3.5/gal, we can analyze the relationship between the facility IRR and facility capacity. In this case, a minimum facility capacity of 1900 t d1 is necessary for for a positive IRR. Larger capacities are in favor due to the economies of scale.