Biomass energy systems: An investment decision-making guide for the small business: Volume 1

Technical Report · Wed Jan 01 04:00:00 EST 1986

OSTI ID:6685938

Smith, P M; Sinclair, S A

Biomass fuels represent an alternative to conventional fossil fuels for boiler-firing. This workbook presents an easy-to-use investment decision-making guide for the evaluation of biomass energy installations or conversions. The economic analysis presented in this workbook is intended to serve as a first-level tool for identifying potential candidates for biomass energy. Final investment decisions should be considered only after calculating more detailed and company-specific costs based upon consultation with accountants and/or engineers. Additionally, fuel costs and availability, including projected fluctuations, should be carefully examined as these costs represent a major factor in the investment decision. Workbook procedure generally involves two steps, first data collection of system, fuel and financial data, and second test calculations of savings, cash flow and payback period. Based upon the economic test calculations, the results should be evaluated in terms of project feasibility. Should the proposed test calculations appear favorable, management is encouraged to consider a more in-depth analysis. At this point, consideration of potential sources of capital may be appropriate. A complementary Southeast Regional Biomass Energy Program (SERBEP) document, ''Financing Options For Biomass Energy Systems: discusses three major options or sources of financing: commercial bank loans, leases, and industrial development bonds. 28 refs.

• Research Organization: Tennessee Valley Authority, Muscle Shoals, AL (USA). Office of Agricultural and Chemical Development
• DOE Contract Number: AI01-83CE30792
• OSTI ID: 6685938
• Report Number(s): DOE/CE/30792-T34-Vol.1; ON: DE87007868
• Country of Publication: United States
• Language: English

Related Subjects

09 BIOMASS FUELS
090400* -- Solid Waste & Wood Fuels-- (-1989)
140504 -- Solar Energy Conversion-- Biomass Production & Conversion-- (-1989)
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
299003 -- Energy Planning & Policy-- Unconventional Sources & Power Generation-- Other-- (-1989)
BIOMASS
BOILERS
DECISION MAKING
ECONOMIC ANALYSIS
ECONOMICS
ENERGY SOURCES
FEDERAL REGION IV
FINANCING
FUEL SUBSTITUTION
NORTH AMERICA
RENEWABLE ENERGY SOURCES
USA