Economic feasibility analysis of an invasive biomass pyrolysis plant
摘要
Economic feasibility is a crucial feature for evaluating the potential of renewable energy projects and is conducive in assisting investors and policymakers in evaluating renewable energy investments. The present investigation evaluated the economic feasibility of sustainable energy projects, invasive species-derived pyrolysis facilities in Kohima district, Nagaland, India. The study endeavoured to integrate the prevalent and ecologically detrimental invasive species, focusing on its application for biofuel production. This incorporates a conceptual framework for the theoretical installation of a pyrolysis plant featuring cost-benefit analysis comprising of key financial metrics, including Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period (PBP). The findings confirmed the project’s viability with a PBP of 5.19 years, an NPV of $ 378,912.829 and IRR of 21%. Furthermore, sensitivity analysis evaluated the influence of product pricing and operational expenses on profitability. The analysis demonstrated that the project’s viability is contingent upon maintaining the operational cost under $ 0.2543/Kg and product price to at least $ 0.2658/Kg. The minimum selling price (MSP) was estimated to be $ 0.2617/Kg. The findings, emphasizing critical cost and price thresholds, underscored the project’s viability, validating it as a solid investment for sustained profitability.