TITLE:
Costs of Wood Pellet Production in Iran
AUTHORS:
Vahid Nabavi, Majid Azizi, Asghar Tarmian
KEYWORDS:
Wood Pellet, Biomass, Production Costs, NPV, IRR
JOURNAL NAME:
iBusiness,
Vol.8 No.3,
August
25,
2016
ABSTRACT: 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.