IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v24y2013icp172-180.html
   My bibliography  Save this article

The economic feasibility of a crop-residue densification plant: A case study for the city of Jinzhou in China

Author

Listed:
  • Feng, Cheng
  • Yu, Xinxin
  • Tan, Hanqiu
  • Liu, Tian
  • Hu, Tianyu
  • Zhang, Zhuoyan
  • Qiu, Shi
  • Chen, Longjian

Abstract

The efficient utilization of the enormous crop-residue resources in China is crucial for providing biofuel, reducing the risk of environmental pollution, and increasing farmers' income. Examining the case of a crop-residue densification plant in the city of Jinzhou, China, this study examines the economic feasibility of this plant by analyzing raw material supply, product market, energy policy, and financial reports. The results indicate that these factors, such as the raw material supply, market, and energy policy, favor the development of densified biofuel from crop residues. The typical financial indicators were estimated as being notably positive over a 10-year timeframe, and a sensitivity analysis indicated no threats to project profit stability. These aforementioned analyses suggest that the utilization of crop residues as densified biofuel in China possesses good economic viability. If the numerous historical, industrial, geographical, and energy-related similarities are taken into account, this study can also be used to provide a feasibility evaluation methodology for crop-residue densification plants in other similar regions.

Suggested Citation

  • Feng, Cheng & Yu, Xinxin & Tan, Hanqiu & Liu, Tian & Hu, Tianyu & Zhang, Zhuoyan & Qiu, Shi & Chen, Longjian, 2013. "The economic feasibility of a crop-residue densification plant: A case study for the city of Jinzhou in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 172-180.
    • Handle: RePEc:eee:rensus:v:24:y:2013:i:c:p:172-180
    DOI: 10.1016/j.rser.2013.03.036
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032113001950
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2013.03.036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yu, Suiran & Tao, Jing, 2009. "Economic, energy and environmental evaluations of biomass-based fuel ethanol projects based on life cycle assessment and simulation," Applied Energy, Elsevier, vol. 86(Supplemen), pages 178-188, November.
    2. Chico-Santamarta, Leticia & Chaney, Keith & Godwin, Richard John & White, David Richard & Humphries, Andrea Claire, 2012. "Physical quality changes during the storage of canola (Brassica napus L.) straw pellets," Applied Energy, Elsevier, vol. 95(C), pages 220-226.
    3. García-Maraver, A. & Popov, V. & Zamorano, M., 2011. "A review of European standards for pellet quality," Renewable Energy, Elsevier, vol. 36(12), pages 3537-3540.
    4. Jiang, Dong & Zhuang, Dafang & Fu, Jinying & Huang, Yaohuan & Wen, Kege, 2012. "Bioenergy potential from crop residues in China: Availability and distribution," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1377-1382.
    5. Chen, Longjian & Xing, Li & Han, Lujia, 2009. "Renewable energy from agro-residues in China: Solid biofuels and biomass briquetting technology," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2689-2695, December.
    6. Karkania, V. & Fanara, E. & Zabaniotou, A., 2012. "Review of sustainable biomass pellets production – A study for agricultural residues pellets’ market in Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(3), pages 1426-1436.
    7. Delivand, Mitra Kami & Barz, Mirko & Gheewala, Shabbir H. & Sajjakulnukit, Boonrod, 2011. "Economic feasibility assessment of rice straw utilization for electricity generating through combustion in Thailand," Applied Energy, Elsevier, vol. 88(11), pages 3651-3658.
    8. Sultana, Arifa & Kumar, Amit, 2011. "Development of energy and emission parameters for densified form of lignocellulosic biomass," Energy, Elsevier, vol. 36(5), pages 2716-2732.
    9. Di Giacomo, G. & Taglieri, L., 2009. "Renewable energy benefits with conversion of woody residues to pellets," Energy, Elsevier, vol. 34(5), pages 724-731.
    10. Chau, J. & Sowlati, T. & Sokhansanj, S. & Preto, F. & Melin, S. & Bi, X., 2009. "Techno-economic analysis of wood biomass boilers for the greenhouse industry," Applied Energy, Elsevier, vol. 86(3), pages 364-371, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bot, Bill Vaneck & Axaopoulos, Petros J. & Sakellariou, Evangelos I. & Sosso, Olivier Thierry & Tamba, Jean Gaston, 2022. "Energetic and economic analysis of biomass briquettes production from agricultural residues," Applied Energy, Elsevier, vol. 321(C).
    2. Sunday Yusuf Kpalo & Mohamad Faiz Zainuddin & Latifah Abd Manaf & Ahmad Muhaimin Roslan, 2020. "A Review of Technical and Economic Aspects of Biomass Briquetting," Sustainability, MDPI, vol. 12(11), pages 1-30, June.
    3. Yuan, Ye & Zhao, Jianing, 2014. "Study on the supply capacity of crop residue as energy in rural areas of Heilongjiang province of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 526-536.
    4. Singh, Jaswinder, 2015. "Overview of electric power potential of surplus agricultural biomass from economic, social, environmental and technical perspective—A case study of Punjab," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 286-297.
    5. Christoforou, Elias & Kylili, Angeliki & Fokaides, Paris A., 2016. "Technical and economical evaluation of olive mills solid waste pellets," Renewable Energy, Elsevier, vol. 96(PA), pages 33-41.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Jianjun & Lei, Tingzhou & Wang, Zhiwei & Yan, Xiaoyu & Shi, Xinguang & Li, Zaifeng & He, Xiaofeng & Zhang, Quanguo, 2014. "Economic, environmental and social assessment of briquette fuel from agricultural residues in China – A study on flat die briquetting using corn stalk," Energy, Elsevier, vol. 64(C), pages 557-566.
    2. Whittaker, Carly & Shield, Ian, 2017. "Factors affecting wood, energy grass and straw pellet durability – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 1-11.
    3. Wang, Changbo & Chang, Yuan & Zhang, Lixiao & Pang, Mingyue & Hao, Yan, 2017. "A life-cycle comparison of the energy, environmental and economic impacts of coal versus wood pellets for generating heat in China," Energy, Elsevier, vol. 120(C), pages 374-384.
    4. Suopajärvi, Hannu & Pongrácz, Eva & Fabritius, Timo, 2013. "The potential of using biomass-based reducing agents in the blast furnace: A review of thermochemical conversion technologies and assessments related to sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 511-528.
    5. Proskurina, Svetlana & Heinimö, Jussi & Mikkilä, Mirja & Vakkilainen, Esa, 2015. "The wood pellet business in Russia with the role of North-West Russian regions: Present trends and future challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 730-740.
    6. Wang, Changbo & Zhang, Lixiao & Chang, Yuan & Pang, Mingyue, 2021. "Energy return on investment (EROI) of biomass conversion systems in China: Meta-analysis focused on system boundary unification," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    7. Zhang, Bingquan & Xu, Jialu & Lin, Zhixian & Lin, Tao & Faaij, André P.C., 2021. "Spatially explicit analyses of sustainable agricultural residue potential for bioenergy in China under various soil and land management scenarios," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    8. Joselin Herbert, G.M. & Unni Krishnan, A., 2016. "Quantifying environmental performance of biomass energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 292-308.
    9. Chitawo, Maxon L. & Chimphango, Annie F.A., 2017. "A synergetic integration of bioenergy and rice production in rice farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 58-67.
    10. Messineo, Antonio & Volpe, Roberto & Marvuglia, Antonino, 2012. "Ligno-cellulosic biomass exploitation for power generation: A case study in sicily," Energy, Elsevier, vol. 45(1), pages 613-625.
    11. Mostafa, Mohamed E. & Hu, Song & Wang, Yi & Su, Sheng & Hu, Xun & Elsayed, Saad A. & Xiang, Jun, 2019. "The significance of pelletization operating conditions: An analysis of physical and mechanical characteristics as well as energy consumption of biomass pellets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 332-348.
    12. Nabavi, Vahid & Azizi, Majid & Tarmian, Asghar & Ray, Charles David, 2020. "Feasibility study on the production and consumption of wood pellets in Iran to meet return-on-investment and greenhouse gas emissions targets," Renewable Energy, Elsevier, vol. 151(C), pages 1-20.
    13. Chen, N.N. & Chen, M.Q. & Fu, B.A. & Song, J.J., 2017. "Far-infrared irradiation drying behavior of typical biomass briquettes," Energy, Elsevier, vol. 121(C), pages 726-738.
    14. Silalertruksa, Thapat & Gheewala, Shabbir H. & Sagisaka, Masayuki & Yamaguchi, Katsunobu, 2013. "Life cycle GHG analysis of rice straw bio-DME production and application in Thailand," Applied Energy, Elsevier, vol. 112(C), pages 560-567.
    15. Song, Junnian & Yang, Wei & Higano, Yoshiro & Wang, Xian’en, 2015. "Dynamic integrated assessment of bioenergy technologies for energy production utilizing agricultural residues: An input–output approach," Applied Energy, Elsevier, vol. 158(C), pages 178-189.
    16. Qin, Zhangcai & Zhuang, Qianlai & Cai, Ximing & He, Yujie & Huang, Yao & Jiang, Dong & Lin, Erda & Liu, Yaling & Tang, Ya & Wang, Michael Q., 2018. "Biomass and biofuels in China: Toward bioenergy resource potentials and their impacts on the environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 2387-2400.
    17. Mahmood Ebadian & Shahab Sokhansanj & David Lee & Alyssa Klein & Lawrence Townley-Smith, 2021. "Evaluating the Economic Viability of Agricultural Pellets to Supplement the Current Global Wood Pellets Supply for Bioenergy Production," Energies, MDPI, vol. 14(8), pages 1-19, April.
    18. Wang, Changbo & Zhang, Lixiao & Chang, Yuan & Pang, Mingyue, 2015. "Biomass direct-fired power generation system in China: An integrated energy, GHG emissions, and economic evaluation for Salix," Energy Policy, Elsevier, vol. 84(C), pages 155-165.
    19. Martín-Gamboa, Mario & Marques, Pedro & Freire, Fausto & Arroja, Luís & Dias, Ana Cláudia, 2020. "Life cycle assessment of biomass pellets: A review of methodological choices and results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    20. Pradhan, Priyabrata & Gadkari, Prabodh & Mahajani, Sanjay M. & Arora, Amit, 2019. "A conceptual framework and techno-economic analysis of a pelletization-gasification based bioenergy system," Applied Energy, Elsevier, vol. 249(C), pages 1-13.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:24:y:2013:i:c:p:172-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.