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Gives the payback period and Internal Rate of Rentability (IRR) of a bioenergy project

 
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    Anders Lunnan (Norway)
Reinhard Madlener (Austria)
Keith Richards (United Kingdom)
Deborah Stoer (United Kingdom)
Bill White (Canada)
Hiromi Yamamoto (Japan)
 
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Investment costs | Energy production costs | Competitiveness | Macro-economic effects
External costs | Hidden costs | Economic instruments for overcoming barriers for bioenergy
 
 

Under the right conditions both small and large scale bioenergy projects can compete with other fuels. However, for more widespread adoption of the technology, bioenergy needs to be rewarded for the many benefits that it brings.

Modern large scale bioenergy technologies can sometimes be economically viable in today's large scale heat and electricity markets and are particularly suited to certain niches, such as co-firing with fossil fuels, or in saw mills, wood working industries and other cases where biomass fuel supplies are readily available at low cost. Small scale heat and power projects also have wide application within community settings where the wider environmental and social benefits can be realised in a local and financial sense.
The many-fold net benefits and the generally acknowledged significant market potential for bioenergy has convinced many people that it is desirable for bioenergy to expand into a wider range of applications.

However, there are several obstacles that need to be removed before greater use of bioenergy is likely to occur:

• targeted information must reach decision makers to improve their understanding and to remove uncertainty

• conventional energy sources, such as coal, oil, natural gas and nuclear must pay the full price for the negative effects they are causing on the environment, health, and society

• alternatively state-of-the-art bioenergy technologies should receive a credit for their net positive effects on the environment and for providing local and national security of energy supply

• small and young industries and firms need supporting to be able to grow and effectively compete with established industries promoting fossil fuels and nuclear energy

     
Public busses use biodiesel from waste oils in Graz, Austria   Biomass co-firing in Slough CHP plant, UK   Ethanol car in Växjö, Sweden   Large wood industry in Canada