The logistics of the fuel supply have a large impact on the economy of a biomass power generation facility, especially for low density biomass fuels like straw. A detailed cost analysis of a typical rice straw logistics process for two baling options in three regions of Thailand shows that the costs for all logistics operations vary from a minimum of 18.75 USD/t for small rectangular bales in the Northern region of Thailand to maximum 19.89 USD/t for large rectangular bales in the North-eastern region. The difference in costs is not very significant due to the higher ownership and operating costs of the equipment for using large rectangular bales; however, the specific fuel consumption cost is substantially lower by around 17.5% and a total transport cost reduction is about 31.5%. Analysis of the logistics economies of scale for projected power plant capacities of 2-35 MW, showed that each doubling the capacity of the energy facility increases the specific costs of the logistics operations only by around 4% in all regions. (C) 2011 Elsevier Ltd. All rights reserved.