ANNOTATION: In this paper a deterministic model was developed to estimate the average total cost of producing whole tree chips for energy production. The model estimated harvest, transportation and stumpage costs and total costs were estimated for 62 potential plant sites in the southeast US. The model used a spatial analytical component and GIS to locate potential sites. ABSTRACT: A deterministic model was developed to estimate the average total cost of producing whole-tree chips from woody biomass for energy production. The model, IFCHIPSS (Industrial Fuel Chip Supply Simulator), estimated harvest, transportation and stumpage costs. Average total cost estimates were made for 62 potential plant locations in the southeastern United States. The model employed a spatial analytical component and used a geographic information system to locate potential plant sites. The model also measured the impact of market and non-market conditions on the economic availability of woody biomass.Northeast Florida, Southern Georgia, Southern Alabama and the Coastal Plain of South Carolina were considered low cost regions for any production level of woody biomass. Costs in these regions ranged from $8.89 t−1 (1987 US dollars per green metric ton) to $11.58 t−1 up to 90 700 t (green metric ton) of annual production. A green metric ton was considered to be pre-dried forest wood fiber. Higher cost regions were the South Delta of Louisiana, Kentucky, West Virginia and the mountains of Tennessee and Virginia. Costs in these regions ranged from $16.46 t^−1 to $37.50 t^−1 up to 90 700 t of annual production.