The production of biomass-derived oil (biocrude) has been studied to determine the technoeconomic characteristics of the process. A detailed process model was developed for the production of biocrude from wood chips. The process consists of a silo dryer for the removal of water from the feed wood, a vortex reactor for the pyrolysis of the wood, a furnace to provide the required sensible heat and heat of reaction for the pyrolysis reaction, a steam turbine to convert excess thermal energy into electric power, and a biocrude recovery section. Results of the simulation were used to size and cost major equipment items. Technoeconomic evaluation of the process was conducted to develop an understanding of the important parameters and to identify missing or incomplete data. Studies were conducted to illustrate the importance of economic parameters on the perceived viability of a process. Plant size and production capacity were examined, as were a number of process development strategies.