Cost-Benefit Analysis of Rice Straw Briquette Production
Author: Lokesh Kumar Meena and Renu Singh
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Abstract
A comprehensive cost-benefit analysis of rice straw briquette production as a sustainable alternative to traditional energy sources. Rice straw, a widely available agricultural residue, poses environmental challenges when disposed of through open burning. Converting it into biomass briquettes offers both environmental and economic advantages. The study examines key cost components, including raw material collection, transportation, equipment investment, energy, and labour. It also analyses potential benefits such as revenue from briquette sales, carbon emission reductions, waste management improvements, and social benefits like job creation and rural economic development. Using metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period, the analysis evaluates the economic viability of briquette production across different scales of operation. The results indicate that rice straw briquette production is a financially feasible and environmentally sustainable solution, especially in rice-producing regions, contributing to renewable energy adoption and waste management. However, challenges related to seasonal availability, market demand, and logistics require further optimization
Keywords
Cost-benefit, Transportation, Equipment investment
Conclusion
The Cost-Benefit Analysis (CBA) of rice straw briquette production shows a promising balance of economic, environmental, and social benefits. While the initial capital investment and recurring operational costs are significant, particularly in terms of equipment, labour, and transportation, these costs are outweighed by the potential for sustainable revenue generation from domestic and industrial markets, as well as export opportunities. Additional value is found in by-products like ash for fertilizer and the possibility of earning carbon credits. Environmentally, the production of rice straw briquettes reduces harmful open-field burning, mitigates greenhouse gas emissions, and supports a circular economy by converting agricultural waste into renewable energy. Furthermore, rice straw briquettes are largely carbon-neutral, making them an environmentally sustainable energy alternative. Socially, the benefits are clear: job creation, improved energy access, public health enhancements due to reduced air pollution, and the promotion of rural development. In conclusion, rice straw briquette production offers a viable, eco-friendly energy solution that can stimulate economic growth, particularly in rice-producing regions. With adequate government support, infrastructure development, and market expansion, this process could play a significant role in reducing waste and improving energy sustainability
References
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How to cite this article
Lokesh Kumar Meena and Renu Singh (2023). Cost-Benefit Analysis of Rice Straw Briquette Production. Biological Forum – An International Journal, 15(11): 646-651