Transition from fossil-fuel to renewable-energy-based smallholder bioeconomy: Techno-economic analyses of two oil palm production systems

Anyaoha, Kelechi E. and Zhang, Lulu, (2022). Transition from fossil-fuel to renewable-energy-based smallholder bioeconomy: Techno-economic analyses of two oil palm production systems. Chemical Engineering Journal Advances, 10 1-8

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  • Sub-type Journal article
    Author Anyaoha, Kelechi E.
    Zhang, Lulu
    Title Transition from fossil-fuel to renewable-energy-based smallholder bioeconomy: Techno-economic analyses of two oil palm production systems
    Appearing in Chemical Engineering Journal Advances
    Volume 10
    Publication Date 2022-05-15
    Place of Publication Amsterdam, Netherlands
    Publisher Elsevier B.V.
    Start page 1
    End page 8
    Language eng
    Abstract Oil palm is the largest source of livelihoods and vegetable oil consumption to most rural households of developing economies in Asia, Africa, and South America. The heavy reliance on fossil-fuel-based energy in palm oil production raises national concerns about reducing carbon emissions and achieving Nationally Determined Contributions in Nigeria. This study investigates the feasibility of typical smallholder palm oil mills using techno-economic analyses. The energy options are diesel and biogas, representing conventional and renewable energy; the latter is a product of anaerobic digestion of palm oil mill effluent and bio-residues that are used to generate electricity. The results show that with a 100% loan, the net present values (NPV), internal rate of return (IRR), return on investment, and payback period are US$214,426, 40%, 35%, and 2.3 years for the diesel systems; the values are US$150,404, 26%, 20%, and 3.6 years for the biogas systems, respectively. The conventional diesel option performs better economically. However, if the biogas system enjoys a 100% initial investment grant and tax exemption in the first four operating years, the IRR will be equal to the diesel system and the NPV higher at US$343,328, making the biogas system more competitive. We conclude that the renewable-energy-based (biogas) system is economically feasible to replace fossil-fuel-based (diesel) systems.
    UNBIS Thesaurus BIOGAS
    Keyword Greener bioeconomy
    Diesel
    Anaerobic digestion
    Palm oil mill effluent
    Fresh fruit bunch
    Copyright Holder The Authors
    Copyright Year 2022
    Copyright type Creative commons
    DOI 10.1016/j.ceja.2022.100270
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    Created: Thu, 24 Feb 2022, 01:44:49 JST by Eric Siegmund on behalf of UNU FLORES