Assessing economic feasibility of bio-energy feedstock cultivation on marginal lands

Patel, Beena; Patel, Akash; Syed, Bakhtiyar Alam; Gami, Bharat

doi:10.1016/j.biombioe.2021.106273

Cited by 13 publications

(10 citation statements)

References 33 publications

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“…An alternative to agricultural wastes are fast growing plants that can be grown specifically as feedstock on marginal land. Switchgrass [128] is the usual example, but bamboo and non‐food varieties of common crops such as sorghum and pearl millet are also under consideration [129] . These plants can be selected and genetically modified to facilitate processing and enhance yields.…”

Section: Biomass To Chemicalsmentioning

confidence: 99%

Green Chemistry, Biocatalysis, and the Chemical Industry of the Future

2022

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In the movement to decarbonize our economy and move away from fossil fuels we will need to harness the waste products of our activities, such as waste lignocellulose, methane, and carbon dioxide. Our wastes need to be integrated into a circular economy where used products are recycled into a manufacturing carbon cycle. Key to this will be the recycling of plastics at the resin and monomer levels. Biotechnology is well suited to a future chemical industry that must adapt to widely distributed and diverse biological chemical feedstocks. Our increasing mastery of biotechnology is allowing us to develop enzymes and organisms that can synthesize a widening selection of desirable bulk chemicals, including plastics, at commercially viable productivities. Integration of bioreactors with electrochemical systems will permit new production opportunities with enhanced productivities and the advantage of using a low‐carbon electricity from renewable and sustainable sources.

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Section: Biomass To Chemicalsmentioning

confidence: 99%

Green Chemistry, Biocatalysis, and the Chemical Industry of the Future

2022

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“…One of the advantages of the cactus system is the positive return in small, planted areas (1 ha), different from that observed for other crops, such as sugarcane, which is only economically viable in areas above 51 ha [66]. Naturally, larger cactus areas would have higher returns, given that the profitability of the system should increase, due to lower logistical costs [13,67].…”

Section: Economic Analysismentioning

confidence: 96%

“…The project is accepted if the Internal Rate of Return (IRR) is greater than the r and rejected otherwise. This indicator guarantees that the investor obtains, at least, the required rate of return and was calculated using Equation (13).…”

Section: Economic Analysis Of the Cropping Systemmentioning

confidence: 99%

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Energetic and Economic Analysis of Spineless Cactus Biomass Production in the Brazilian Semi-arid Region

et al. 2022

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The Brazilian semi-arid region is marked by a variable spatial-temporal rainfall distribution, concentrated over a 3 to 4 month season. Limited water availability is the main obstacle to the production of forage plants of C3 metabolism (such as corn and soybeans) and C4 metabolism (such as sugarcane), as well as livestock. To mitigate this forage supply, the spineless cactus (SC) has been cultivated in the region, producing high biomass amounts in this harsh environment. Recently, this remarkable capacity to produce biomass has drawn the attention of the renewable energy sector, supported by recent studies demonstrating the feasibility of its biomass as a raw material for bioenergy production. However, before moving to commercial scale, it is necessary to demonstrate that large-scale production has energy and economic viability for clean energy investors. Thus, the objective of this article was to analyze the energetic and economic viability of forage cactus cultivation systems in the Brazilian semi-arid region. The data used were extracted from the literature, based on forage production. For the energy evaluation, the energy balance was performed and the energy efficiency, energy productivity, specific energy, and net energy metrics were applied. The financial feasibility analysis used the Net Present Value (NPV) and Internal Rate of Return (IRR). The energy balance revealed that the SC cultivation is viable for biomass commercial-scale production, with an energy efficiency of 3.36, an energy productivity of 0.25 kg MJ−1, a specific energy of 13.5 MJ kg−1, and an energy balance of 127,348 MJ ha−1. For the economic aspect, considering an attractive minimum rate of return of 8%, production also proved to be viable, in a time horizon of three years. The Net Present Value and IRR metrics were USD 2196 and the IRR was 46%, respectively. The results found are important to encourage new investments in rural properties in the semi-arid region, and cultivation in new areas proved to be an efficient alternative from an energy and economic point of view, in addition to collaborating for the energy transition to sustainable sources and in the mitigation of regional environmental impacts.

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“…This matches the findings of Ajanovic [74], who stated that food prices are not influenced by feedstock production (in terms of energy crops) as long as sustainability criteria are followed. Other authors found that developing SRC on marginal land [75] and in compliance with EU institutional settings [76] can meet the demand of agricultural wood in a sustainable manner. Increasing biodiversity was found as one major non-monetary benefit in the interviews, and was also previously stated by O'Brien and Bringezu [76] to be an important factor in shifting timber extraction from biodiversity-rich forests to biodiversity-poor cropping sites.…”

Section: Social Benefits and Burdens Of Srcmentioning

confidence: 99%

Beyond Monetary Cost-Benefit Analyses: Combining Economic, Environmental and Social Analyses of Short Rotation Coppice Poplar Production in Slovakia

Fürtner

Echenique

Hörtenhuber

et al. 2022

Forests

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Rising demand for bio-based products exerts a growing pressure on natural resources such as wood. Sustainable solutions are becoming increasingly important to meet the demand. In this study, 20-year poplar Short Rotation Coppice (SRC) plantations located in Western Slovakia are investigated with respect to (socio)-economic, environmental and social sustainability. The cost–benefit methodology is applied to assess the economic profitability of a switch from conventional annual crops (corn maize and winter rye) to perennial SRC. To compare economic profitability of the land management, net present value (NPV), payback time (PBT), internal rate of return (IRR) and benefit–cost ratio (BCR) are calculated. The study was enhanced by adopting the concept of regional value added to indicate the local value creation. The results for the three scenarios yield an NPV equal to 12,156 euros ha−1 for corn maize, 9763 euros ha−1 for winter rye and 2210 euros ha−1 with a PBT of 14.13 years for poplar SRC production. The regional value added for the corn maize scenario was estimated with 10,841 euros ha−1, the winter rye with 7973 euros ha−1 and the poplar SRC with 1802 euros ha−1. To appraise non-monetized social values, semi-structured interviews (N = 4) were conducted among experts familiar with SRC management in Eastern Europe. Non-monetary benefits for the stakeholder groups society, farmers or landowners and the industry were identified in terms of land fragmentation, carbon sequestration and an increase in biodiversity within the plantations, farm diversification and higher independency from wood markets. The relatively poor image of SRC, farmers or landowners having concerns about being tied on long-term contracts and legal restrictions may become obstacles in the establishment of SRC. For estimating the capability of carbon sequestration in SRC plantations the RothC model was utilized, resulting in the potential soil organic carbon (SOC) average increase of 29% during the 20 years. However, a transition in land use patterns must involve thorough considerations of all three pillars of sustainability to ensure long-term viability of the establishment.

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Assessing economic feasibility of bio-energy feedstock cultivation on marginal lands

Cited by 13 publications

References 33 publications

Green Chemistry, Biocatalysis, and the Chemical Industry of the Future

Green Chemistry, Biocatalysis, and the Chemical Industry of the Future

Energetic and Economic Analysis of Spineless Cactus Biomass Production in the Brazilian Semi-arid Region

Beyond Monetary Cost-Benefit Analyses: Combining Economic, Environmental and Social Analyses of Short Rotation Coppice Poplar Production in Slovakia

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