Small-Scale Biofuel Production: Assessment of Efficiency
Currently, the energy industry is tending toward a global expansion of the use of renewable energy sources, thereby contributing to economic development. In the Russian Federation, such transformation is particularly important in terms of enhancing the involvement of excessive wood waste in prod...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2021-12-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | https://ijtech.eng.ui.ac.id/article/view/5401 |
| Summary: | Currently, the energy industry is tending toward a global
expansion of the use of renewable energy sources, thereby contributing to
economic development. In the Russian Federation, such transformation is particularly
important in terms of enhancing the involvement of excessive wood waste in
production. In this regard, processing wood waste into pellets has proven to be
highly beneficial. Apart from increasing the efficiency of the harvested wood
and reducing the fire hazard in waste storages, it also positively influences
the structure of energy balance in specific regions, creating an impetus for
the development of small businesses in the country. This paper aims to assess
the economic effects of biofuel production together with the efficiency of
processing wood waste into pellets as a factor in the development of small
business in the Russian Federation. Net present value (NPV) is used as the main
analytical tool to assess economic efficiency. A general scientific analysis of
the open data is also applied, including analytical reviews of the Russian
ministries and international organizations. As a result, the paper estimates
the prospects of using wood biomass in the energy industry, provides options
for establishing capacities of microenterprises engaged in pellet production,
and considers the expected economic effect for various levels of capacity
utilization. The scientific novelty of this paper is centered on the design of
a biofuel production scheme from wood waste (wood pellets) for a small-business
enterprise with minimum labor and production costs. The paper is highly
practice oriented, as it substantiates the economic efficiency of pellet
production by small businesses in the Russian Federation in accordance with
current legislation and state subsidies. Overall, this paper provides enough
evidence to seriously consider the prospects of wood pellet production in order
to expand the share of renewable sources in the energy balance of the country. |
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| ISSN: | 2086-9614 2087-2100 |