Techno- economic analysis (TEA) is a well-established modeling process for evaluating the economic feasibility of emerging technologies. Most previous TEA studies focused on creating reliable cost estimates
but returned deterministic net present values (NPV) and deterministic breakeven prices which cannot
convey the consider able uncertainties embedded in important techno-economic variables. This study
employs stochastic techno-economic analysis in which Monte Carlo simulation is incor porated into
traditional TEA. The distributions of NPV and breakeven price are obtained. A case of cellulosic biofuel
produc tion from fast pyrolysis and hydroprocessing pathway is used to illustrate the method of modeling
stochastic TEA and quantifying the breakeven price distribution. The input uncertainties are translated to
outpu ts so that the probability density distribution of both NPV and breakeven price are derived. Two
methods, a mathematical method and a programming method, are developed to quantify breakeven price
distribution in a way that can consider future price trend and uncertainty. Two scenarios are analyzed,
one assuming constan t real future output prices, and the other assuming that future prices follow an
increasing trend with stochastic disturbances. It is demonstrated that the breakeven price distributions
derived using the developed methods are consistent with the corresponding NPV distributions regarding
the percentile value and the probability of gain/loss. The results demonstrate how breakeven price
distributions communicate risks and uncertainties more effectively than NPV distributions. The stochastic TEA and the methods of creating breakeven price distribution can be applied to evaluating other
technologies.