Author(s)

Vahid Nabavi, Majid Azizi^*, Asghar Tarmian

Department of Wood & Paper Sciences and Industries, Faculty of Natural Resources, College of Agriculture and Natural Resources, University of Tehran, Tehran, Iran.

Climate changes and increased Earth’s temperature form a phenomenon that affects all humans and countries. Consequently, even countries with plenty of fuel energy resources have realized the importance of this issue. Wood pellet is among the most commonly used bio fuels and is spreading quickly all over the globe. In this research, the feasibility of wood pellet production in Iran was assessed by studying a production project and economically analyzing it. Based on the results, all of the economic indicates are reflective of economic utility of wood pellet production in Iran. For instance, the IRR index of the project was 64.54%, and the final price of the product was 118.89 EUR per ton. Analysis of production costs indicated that raw materials had the highest share of the final price followed by fixed investment costs and energy costs.

Wood Pellet, Biomass, Production Costs, NPV, IRR

Nabavi, V. , Azizi, M. and Tarmian, A. (2016) Costs of Wood Pellet Production in Iran. iBusiness, 8, 37-47. doi: 10.4236/ib.2016.83005.