ECONOMIC FEASIBILITY STUDY FOR USING HOUSEHOLD BIOGAS UNITS AT DESERT LANDS

Document Type : Review Article

Authors

1 Post graduate student at Faculty of Graduate Studies and Environmental Research, Ain Shams University

2 Faculty of Commerce, Ain Shams University

3 Desert Research Centre

Abstract

The research was based on conducting an economic feasibility study for household biogas units with a capacity of 4 m3 that use animal waste as a main input for biogas production in some areas with desert backs in Minya Governorate. The descriptive and quantitative method was used to analyze the cost and revenue structure data for the biogas unit, and economic evaluation criteria were used to demonstrate economic feasibility, such as the Net Present Value (NVP) standard, which amounted to 25091.32 pounds in the basic situation of costs and revenues, and the internal rate of return (IRR) standard, which amounted to 25091.32 pounds. 50%, and the standard return-to-cost ratio (B/C), which was estimated at about 1.7. A sensitivity analysis was also conducted to ascertain the extent of the biogas unit’s ability to bear the conditions of future change in costs and revenues. The first scenario was put forward, which is the assumption of an increase in costs by 10% with the stability of revenues, and on the basis of which the (NVP) standard was calculated, which amounted to 19,590.87 pounds, while the (IRR) standard was ) 38% and the standard (B/C) 1.55. As for the second scenario, which is one of the worst scenarios and the possibilities expected for the biogas unit to be exposed, the revenue decreased by 10% in addition to the increase in costs by 10%. (IRR) 27%, while the (B/C) standard was estimated at 1.4.
Therefore, the study recommended the need to expand the spread of the use of biogas energy, especially in the new desert lands, which helps in reducing the energy crisis in addition to achieving indirect returns such as the safe disposal of agricultural waste, environmental safety, public health and providing good job opportunities.

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