Abstract
In developing countries, the use of biomass for energy production faces two contradictory pressures. On the one hand, biomass costs very little and it is used inefficiently for fuel or charcoal production, leading to widespread destruction of forested areas and environmental degradation; this problem is being attenuated by the promotion, through aid programmes, of more efficient cook stoves for poor people. On the other hand, the conversion of biomass into high-grade fuel such as ethanol from sugar cane or burning urban refuse or gasifying it to produce electricity is not economically competitive at this time and requires subsidies of approximately 30% to make it as attractive as conventional fuels. Only electricity production using residues from sawmills, crops and other biomass by-products is competitive, and a number of plants are in operation in some countries, particularly the United States. For such plants, the usual rates of return and long-term contract purchases that characterize investments of this kind are applied. Although technologies are available for the widespread efficient use of biomass, the financial hurdle of high initial costs has impeded their market penetration, which in turn precludes any decline in costs that might otherwise have come from production increases. Intervention by governments
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Goldemberg, J
[1]
- University of Sao Paulo, Sao Paulo (Brazil)
Citation Formats
Goldemberg, J.
Private capital requirements for international biomass energy projects.
UNIDO: N. p.,
1995.
Web.
Goldemberg, J.
Private capital requirements for international biomass energy projects.
UNIDO.
Goldemberg, J.
1995.
"Private capital requirements for international biomass energy projects."
UNIDO.
@misc{etde_340396,
title = {Private capital requirements for international biomass energy projects}
author = {Goldemberg, J}
abstractNote = {In developing countries, the use of biomass for energy production faces two contradictory pressures. On the one hand, biomass costs very little and it is used inefficiently for fuel or charcoal production, leading to widespread destruction of forested areas and environmental degradation; this problem is being attenuated by the promotion, through aid programmes, of more efficient cook stoves for poor people. On the other hand, the conversion of biomass into high-grade fuel such as ethanol from sugar cane or burning urban refuse or gasifying it to produce electricity is not economically competitive at this time and requires subsidies of approximately 30% to make it as attractive as conventional fuels. Only electricity production using residues from sawmills, crops and other biomass by-products is competitive, and a number of plants are in operation in some countries, particularly the United States. For such plants, the usual rates of return and long-term contract purchases that characterize investments of this kind are applied. Although technologies are available for the widespread efficient use of biomass, the financial hurdle of high initial costs has impeded their market penetration, which in turn precludes any decline in costs that might otherwise have come from production increases. Intervention by governments or by GEF, justified on grounds of environmental protection, is needed to accelerate the introduction of the new technologies. The only private flows that are taking place at the moment are those from enlightened investors wishing to guarantee themselves a strong position in the area for the future or to preempt command and control regulations, such as carbon taxes, imposed by governments. The joint implementation of biomass technologies between industrialized and developing countries might be one method of accelerating this flow. (author) 9 refs, 4 figs, 3 tabs}
place = {UNIDO}
year = {1995}
month = {Dec}
}
title = {Private capital requirements for international biomass energy projects}
author = {Goldemberg, J}
abstractNote = {In developing countries, the use of biomass for energy production faces two contradictory pressures. On the one hand, biomass costs very little and it is used inefficiently for fuel or charcoal production, leading to widespread destruction of forested areas and environmental degradation; this problem is being attenuated by the promotion, through aid programmes, of more efficient cook stoves for poor people. On the other hand, the conversion of biomass into high-grade fuel such as ethanol from sugar cane or burning urban refuse or gasifying it to produce electricity is not economically competitive at this time and requires subsidies of approximately 30% to make it as attractive as conventional fuels. Only electricity production using residues from sawmills, crops and other biomass by-products is competitive, and a number of plants are in operation in some countries, particularly the United States. For such plants, the usual rates of return and long-term contract purchases that characterize investments of this kind are applied. Although technologies are available for the widespread efficient use of biomass, the financial hurdle of high initial costs has impeded their market penetration, which in turn precludes any decline in costs that might otherwise have come from production increases. Intervention by governments or by GEF, justified on grounds of environmental protection, is needed to accelerate the introduction of the new technologies. The only private flows that are taking place at the moment are those from enlightened investors wishing to guarantee themselves a strong position in the area for the future or to preempt command and control regulations, such as carbon taxes, imposed by governments. The joint implementation of biomass technologies between industrialized and developing countries might be one method of accelerating this flow. (author) 9 refs, 4 figs, 3 tabs}
place = {UNIDO}
year = {1995}
month = {Dec}
}