Economic Analysis of Manufacturing Costs of Pellet Production in the Republic of Ireland Using Non-Woody Biomass

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Title: Economic Analysis of Manufacturing Costs of Pellet Production in the Republic of Ireland Using Non-Woody Biomass
Authors: Nolan, Anthony
McDonnell, Kevin
Devlin, Ger
et al.
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Date: 2010
Abstract: An economic analysis of a non-woody biomass pelleting process was performed for conditions in the Republic of Ireland. The analysis considered the establishment, harvest, storage and drying costs of the feedstock’s on-farm, together with transportation costs to the processing plant and the costs associated with the pelleting process. Capital and operating costs of the pelleting process were estimated at several plant capacities – 6t / h, 8t / h and 10t / h. The pellet production cost for the base case scenario of 8t / h was 102 / t of pellets produced. By decreasing production capacity to 6t / h an increase in the production cost of 10 / t was experienced while increasing capacity to 10t / h resulted in a decrease of 6 / t in the production cost of pellets. The cost of the raw material is the largest cost component (66%) of the total pellet production cost. Other major cost factors include pelleting and cooling plant (11%), straw grinding plant (10%) and personnel costs (9%). Considering current energy prices the equivalent energy cost of 7 / GJ (excluding profit margins) the potential production of non-woody biomass pellets competes favourably with oil and gas and was found to be economically viable.
Type of material: Journal Article
Publisher: Bentham Open
Journal: The Open Renewable Energy Journal
Volume: 3
Issue: 2010
Start page: 1
End page: 11
Copyright (published version): 2010 the authors
Keywords: Non-woody biomassEconomic analysisProduction costsStorage costsTransportation costsPelleting costs
DOI: 10.2174/1876387101003010001
Language: en
Status of Item: Peer reviewed
Appears in Collections:Biosystems and Food Engineering Research Collection

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