The subject of this paper is utilization of corn cobs as a fuel in small
residential heating appliances in Serbia. The objective was to investigate
the profitability of the three cob forms: whole, crushed and pellets.
Thereby, construction and reconstruction option of a heating system that
uses corn cobs were compared with woody and fossil fuel forms. Net present
values (NPV) of generated costs in the first option, as well as NPV of
savings, payback period (PBP) and internal rate or return (IRR) in the
second, were analyzed. Assessment was conducted using BiomasaPro calculator
with integrated approach for energy facility investments. Only utilization
of whole cobs were profitable, comparing with wood logs, coal and natural
gas. In option construction, around 8,700, 7,000 and more than 4,100 ? could
be thus saved after the appliance lifespan, respectively. The savings could
be 7,800, 5,500 and more than 3,600 ? in option reconstruction, with PBP
less than two years compared with wood logs and coal, and around 2,5 years
with natural gas. Sensitivity analysis showed that utilization of whole cobs
could be profitable with up to three times higher purchase price. With bank
loan as a financing option for economically weaker biomass users, the
scenarios though remain profitable. Subsidy of more than 40% for a heating
appliance that uses crushed cobs would allow for profitable investment in
comparison with wood chips. Future investigation should comprise assessment
including social and environmental aspects, to conclude if corn cobs are a
sustainable fuel in Serbia.