The economic feasibility of a crop-residue densification plant: A case study for the city of Jinzhou in China

The efficient utilization of the enormous crop-residue resources in China is crucial for providing biofuel, reducing the risk of environmental pollution, and increasing farmersʹ income. Examining the case of a crop-residue densification plant in the city of Jinzhou, China, this study examines the economic feasibility of this plant by analyzing raw material supply, product market, energy policy, and financial reports. The results indicate that these factors, such as the raw material supply, market, and energy policy, favor the development of densified biofuel from crop residues. The typical financial indicators were estimated as being notably positive over a 10-year timeframe, and a sensitivity analysis indicated no threats to project profit stability. These aforementioned analyses suggest that the utilization of crop residues as densified biofuel in China possesses good economic viability. If the numerous historical, industrial, geographical, and energy-related similarities are taken into account, this study can also be used to provide a feasibility evaluation methodology for crop-residue densification plants in other similar regions.