ECONOMIC FEASIBILITY OF PRODUCINGBIOFUELS FROM JATROPHA IN EGYPT

Document Type : Review Article

Authors

1 Faculty of Agriculture, Ain Shams University

2 Institute of Environmental Studies and Research, Ain Shams University

3 Desert Research Center

Abstract

Egypt faces a large and chronic energy problem because the available energy is less than demand. The problem is not only in electricity, but in oil and gas reserves limited, especially oil, where the reserve is only about 4.4 billion barrels. Egypt's oil production is 560,000 barrels per day and consumption is about 815,000 bpd. We are importers of oil. They are not offered in any sector without the availability of energy. In addition to the water problem, which has become very important in the light of the continuous population growth and limited Egypt, Egypt's 55.5 billion cubic meters of Nile water will not solve Egypt's energy and water problem in a scientific way. % of Egypt's share of Nile water, to grow trees from jatropha trees to produce biofuels.
The study aimed to study the economic feasibility of the production of biofuels from jatropha trees by analyzing the costs and returns that affect the production of biofuels through the use of averages and percentages. Quantitative analysis methods have been used through the regression method and financial and economic valuation criteria such as IRR.
The research area of the new valley, where the moth forest, about 270 acres, is planted in about 140 acres of the total area of the forest.
Forest operators have met cost items through a case study model that includes investment cost items such as land, buildings, machinery and equipment. It also included variable cost items such as enrichment, labor, irrigation, the cost of periodic maintenance, the energy used and the cost of seedlings. The case study was prepared bythe Egyptian Company for Natural Oils and the Arab Organization for Industrialization (MASA 999), which is biomedically extracted. International prices were also used on the FAO website.
The results showed that the value of the internal return was about 21%, which is higher than the cost of the opportunity to invest in the Egyptian banks for the year 2017, which amounted to about 17%. In addition, indirect revenues such as the safe disposal of treated wastewater, the prevention of environmental pollution, the stabilization of oxygen, the provision of an alternative source of clean energy and the creation of new jobs.
The study recommended the need to expand the planting of forests with sewage water for biofuel trees and to encourage investment, capacity-building and local expertise in this area, especially commercial biofuel extraction.
 

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