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Feasibility study on the production and consumption of wood pellets in Iran to meet return-on-investment and greenhouse gas emissions targets
Abstract
Abstract At the Paris Agreement in 2015, Iran pledged a 4% reduction in greenhouse gas emissions by 2030 and bio-fuels like wood pellet are an option. To estimate the volume of waste woody biomass the International Energy Agency model was employed and results show that a total opportunity of 754,840 m3 of woody by-products. An economic feasibility study of wood pellet production was performed by calculating the economic indices and analyzing their sensitivity using COMFAR III software for three scenarios in annual capacities of 48,000, 75,000 and 120,000 tons. The costs of wood pellet production for each plan are 104.29, 107.63, and 106.92 €/Mt, respectively. Acceptable IRR (45%–124%) and NPV (7–14 Million Euro) support the feasibility of wood pellet production in Iran. Standard VDI 2067 used to calculate specific cost of generating energy with wood pellet fuel against domestic water boilers using diesel and natural gas fuels. Results showed that the cost of generating energy is higher by wood pellet (43.5 €/Mwh, against gasoline, 25.9 €/Mw, and natural gas, 22.3 €/Mwh) due to the high initial investment in the wood pellet-fired boilers compared to established fossil fuels and the low price of diesel and natural gas in Iran.
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“Nabavi et al. (2020) mentioned that the minimum production cost of wood pellets for fuel production at €104.29/ton and the internal rate of return could reach 45-124%.”
From Recycling municipal, agricultural and industrial waste into energy, fertilizers, food and construction materials, and economic feasibility: a review (2023) · cites this paper as Nabavi et al. 2020
In the citing paper
“In addition, producing solid biofuels from wood pellets of agricultural solid waste also stands out in valueadded waste (Nabavi et al. 2020;Abdulyekeen et al. 2021;Abdullah et al. 2022).”
From Recycling municipal, agricultural and industrial waste into energy, fertilizers, food and construction materials, and economic feasibility: a review (2023) · cites this paper as Nabavi et al. 2020
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Metadata
- Authors
- Nabavi, V., Azizi, M., Tarmian, A., & Ray, C. D.
- Affiliations
- University of Tehran (IR)
- Pennsylvania State University (US)
- Corresponding author
- Nabavi, Vahid
- Venue
- Renewable Energy
- Publisher
- Elsevier BV
- Published
- 2020-05
- Volume
- 151
- Pages
- 1-20
- ISSN
- 0960-1481 (ISSN-L)
- OpenAlex
- W2981684024
- Cited by
- 19
- References
- 50
- Citations by year
- 2026: 1 · 2025: 2 · 2024: 4 · 2023: 4 · 2021: 7 · 2020: 1
- FWCI
- 1.18
- Type
- journal article
- Language
- en
- Open access
- closed
- Licence
- www.elsevier.com/tdm/userlicense/1.0/ (tdm)
- www.elsevier.com/legal/tdmrep-license (tdm)
- Locations
- Renewable Energy (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Funders
- IRR
- Topics
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Forest Biomass Utilization and Management
- Life Sciences › Agricultural and Biological Sciences › Forestry › Wood Residue Utilization and Solid Biofuels
- Physical Sciences › Energy › Renewable Energy, Sustainability and the Environment › Renewable energy and sustainable power systems
- Keywords
- wood pellets, woody biomass, biofuels, greenhouse gas emissions reduction, economic feasibility, return on investment, net present value, internal rate of return, energy cost comparison, wood waste, Iran
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