Economic Evaluation of the Production of Perennial Crops for Energy Purposes—A Review

Abstract

Biomass is widely used for the production of renewable energy, which calls for an economic evaluation of its generation. The aim of the present work was to review the literature concerning the economic evaluation of the production of perennial crop biomass for energy use. Statistical analysis of the bibliographic data was carried out, as well as an assessment of methods and values of economic indicators of the production of perennial crops for bioenergy. Most of the papers selected for the review were published in the years 2015–2019, which was probably stimulated by the growing interest in sustainable development, particularly after 2015, when the United Nations declared 17 sustainable development goals. The earliest articles concerned the economic analysis of plantations of short rotation coppice; the subsequent ones included the analysis of feedstock production in terms of the net present value and policy. The latest references also investigated transport and sustainability issues. The crops most commonly selected for production cost analysis were willow, poplar, and Miscanthus. The cost of production of willow and poplar were similar, 503 EUR ha−1 year−1 and 557 EUR ha−1 year−1, respectively, while the cost of Miscanthus production was significantly higher, 909 EUR ha−1 year−1 on average. By analogy, the distribution of revenue was similar for willow and poplar, at 236 EUR ha−1 year−1 and 181 EUR ha−1 year−1; Miscanthus production reached the value of 404 EUR ha−1 year−1. The economic conditions of perennial crop production differed in terms of geography; four areas were identified: Canada, the USA, southern Europe, and central and northern Europe.

Comparative Analysis of Acidic and Alkaline Pretreatment Techniques for Bioethanol Production from Perennial Grasses

“…Despite these cost differences, revenue distribution was similar across these crops, with willow and poplar yielding around EUR 200 (~USD 217) per hectare, and Miscanthus generating approximately EUR 400 (~USD 434) per hectare. The market price for biomass was consistent across these crops suggesting that production conditions, rather than the crop type, primarily influenced economic outcomes [155]. The results highlight the critical need to comprehend each crop's specific production requirements, as these factors significantly influence the potential for generating expected revenue.…”

“…The findings suggest challenges for large-scale investments in perennial grass biomass in North Dakota, due to high break-even prices [154]. In a European study by [155], Miscanthus, compared to willow and poplar, exhibited notably higher production costs, averaging EUR 909 (~USD 987) per hectare annually. This cost was about 70% higher than that of willow and poplar, which had similar costs slightly above EUR 500 (~USD 543) per hectare.…”

Using Machine Learning to Identify the Potential Marginal Land Suitable for Giant Silvergrass (Miscanthus × giganteus)

“…As a promising energy plant, the current research on giant silvergrass mainly focuses on assessing biomass potential, and the economic and environmental benefits based on the statistical data [36,[42][43][44][45]. There are only a few studies working on the potential land resources for growing giant silvergrass.…”

Assessment of Working Performance and Costs of Two Small-Scale Harvesting Systems for Medium Rotation Poplar Plantations

“…Moreover, in the frame of the growing development of the bioeconomy sector, the demand for lignocellulosic biomass has been increasing for different industrial purposes: for instance, building materials, wood pulp, wood-based panels and other biomaterials [9][10][11].…”