The techno-economics of biomass gasification systems for the production of Fischer-Tropsch (FT) based liquid fuels are analysed by estimating the overall mass and energy conversion of biomass to liquid (BTL) fuel. The investigation of BTL systems for 1000 kg/h biomass gasification system and an expected liquid hydrocarbon output of 1500 tonnes are estimated. The cost analysis, based on the annualized life cycle of the systems, includes a steam-oxygen based biomass gasification plant paired with the FT unit. The gasifier considered in this analysis is the downdraft reactor design, operating on oxygen-steam gasifying medium at an equivalence ratio of 0.1 and a steam-to-biomass ratio in the range of 0.8-1.2 to generate syngas with H-2/CO ratio of 2.1:1, ideally suitable for the cobalt based fixed bed FT reactor. The mass and energy balance reveal that for a once-through FT reactor configuration, substantial energy exists in the gas phase, which includes C1-05 hydrocarbons and unconverted syngas. The study suggests that the product gas be utilized in an IC engine and converted to electricity, for in-house power demands and for the sale of excess electricity to the grid. The analysis indicates a market competitive liquid fuel production with CO conversion greater than 60%, at a cost ranging from INR 35-40/litre (0.5-0.6 USD/litre) alongside electricity as a major co-product in the BTL system. This study examines the economics of building economically affordable and environmentally favourable BTL systems of smaller throughputs with particular reference to India. (C) 2017 Elsevier Ltd. All rights reserved.