This work deals with techno-economic analysis studies in the context of production of 8 various grade biocarbon for utilization as reducing agents in metallurgical industries. A 9 detailed process design was developed for wood handling, debarking, chipping, drying, 10 carbonization, and combined heat and power production using Aspen Plus for 10 ton per 11 day (TPD) biocarbon output. A Fortran based user defined function was developed for the 12 carbonization process by considering pressure, temperature and particle size effects using a 13 Box -Behnken approach. The empirical correlation indicates a strong influence of 14 temperature as well as a significant influence of pressure and particle size on the biocarbon 15 yield and its fixed carbon content. Fixed carbon content increases with temperature, pressure 16 and particle size. Mass and energy balance results from Aspen Plus provided necessary 17 results for cost parametrization considering three influencing parameters; temperature, 18 pressure and plant scale on the equipment costs, operating expenses and production cost of 19 biocarbon. Four scenarios are compared i.e. logwood supply, woodchips supply, co-20 production of biooil and replacing the carbonization agent from nitrogen to air. The results 21 indicate that logwood supply is more economical than supplying woodchips to the plant 22 gate. Economic benefits in terms of cost is ~5% (at 1 bar and 450-500ºC, 55-60 TPD) and 23 ~4% (at 10 bar, 450-500ºC, 55-60 TPD). Co-production of biooil decreased the production 24 cost of biocarbon ($/GJ) by 40-44% (at 1 bar, 450-500ºC, 40-60 TPD) and 30-36% (at 10 25 bar, 450-500ºC, 40-60 TPD), respectively. Finally, the economic return based on IRR 26 suggests that highest IRR is achieved for scenario C, where biooil is a co-product, it is due 27