PROCESS ECONOMIC ANALYSIS OF BIO-OIL PRODUCTION FROM WOOD RESIDUE USING PYROLYSIS IN SOUTH-WESTERN..

Because of the anticipated depletion of fossil fuels as a consequence of rising energy use per capita and environmental damage as a result of global warming, long-term alternative energy sources are required. The purpose of this study was to conduct a process economic analysis of bio-oil production from wood residue generated in major cities in south-western Nigeria. The computation was based on 2,316 Ton/day of wood residue generated by the cities under consideration. The impacts of bio-oil selling price, wood residue purchasing price, discount rate, and annual power cost on IRR and NPV (Net Present Value) were investigated. For the first five years of operation, the internal rate of return improves on a regular basis at whatever selling price of bio-oil. With a fixed bio-oil selling price, the NPV drops as the discount rate increases. Negative NPV was observed at discount rates of 8%, 10%, and 12% with a fixed bio-oil selling price of $40. At a constant purchasing price for wood residue and an annual electricity cost, the internal return rate increases as the year of investment increases, whereas the NPV reduces as the discount rate increases. At a constant discount rate, the NPV of this investment declines as the cost of wood residue and the monthly electricity bill rise. However, each year, an increase in the annual electricity bill and the cost of wood purchases reduces the internal return rate by a factor of one (1). The acquired results were in good agreement with existing research. This signifies that the investor will earn from this investment.

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