Economic feasibility of steam explosion pretreatment for improvement of biogas production from wheat straw and paper tube residuals was investigated. The process was simulated by Aspen plus (R), and the economical feasibility of five different plant capacities was studied by Aspen Process Economic Analyzer. Total project investment of a plant using paper tube residuals or wheat straw was 63.9 or 61.8 million Euros, respectively. The manufacturing cost of raw biogas for these two feedstocks was calculated to 0.36 or 0.48 (sic)/m(3) of methane, respectively. Applying steam explosion pretreatment resulted in 13% higher total capital investment while significantly improved the economy of the biogas plant and decreased the manufacturing cost of methane by 36%. The sensitivity analysis showed that 5% improvement in the methane yield and 20% decrease in the raw material price resulted in 5.5% and 8% decrease in the manufacturing cost of methane, respectively. (C) 2013 Elsevier Ltd. All rights reserved.