ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION

M. Mugoronji; M. M. Manyuchi; N. Sukdeo; W. Stinner

doi:10.52202/060557-0050

ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION

M. Mugoronji
, M. M. Manyuchi
, N. Sukdeo
, W. Stinner

Quality and Operations Management

Harare Institute of Technology
Germany Biomass Research Centre

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

Investment appraisals techniques are critical for measuring the profitability of a new project in the manufacturing sector. These appraisals techniques include the internal rate of return (IRR), net present value (NPV), payback period and accounting rate of return (ARR). In this case study where the economic potential for establishing a new bio coal production was evaluated using the hydrothermal carbonization technique: At total capital investment of USD 7.6 million was required. A payback period of 4.6 years was projected with an IRR of 21.7% and a break-even value of USD 2.9 million. The economic assessment was for a target bio coal production of 69 tons/day and a selling price of USD 200/ton. A positive NPV of USD 2.1 million was realized. The results from the investment appraisals in this case study indicated that it is worthwhile to invest in bio coal production.

Original language	English
Title of host publication	Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future
Publisher	University of Pretoria
Pages	652-661
Number of pages	10
ISBN (Electronic)	9781775922131
DOIs	https://doi.org/10.52202/060557-0050
Publication status	Published - 2021
Event	30th International Conference of the International Association for Management of Technology: MOT for the World of the Future, IAMOT 2021 - Cairo, Virtual, Egypt Duration: 19 Sept 2021 → 23 Sept 2021

Publication series

Name	Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future

Conference

Conference	30th International Conference of the International Association for Management of Technology: MOT for the World of the Future, IAMOT 2021
Country/Territory	Egypt
City	Cairo, Virtual
Period	19/09/21 → 23/09/21

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

ARR
Bio coal plant investment
IRR
NPV
Payback period

ASJC Scopus subject areas

Management of Technology and Innovation

Access to Document

10.52202/060557-0050

Cite this

Mugoronji, M., Manyuchi, M. M., Sukdeo, N., & Stinner, W. (2021). ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION. In Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future (pp. 652-661). (Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future). University of Pretoria. https://doi.org/10.52202/060557-0050

Mugoronji, M. ; Manyuchi, M. M. ; Sukdeo, N. et al. / ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION. Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future. University of Pretoria, 2021. pp. 652-661 (Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future).

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title = "ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION",

abstract = "Investment appraisals techniques are critical for measuring the profitability of a new project in the manufacturing sector. These appraisals techniques include the internal rate of return (IRR), net present value (NPV), payback period and accounting rate of return (ARR). In this case study where the economic potential for establishing a new bio coal production was evaluated using the hydrothermal carbonization technique: At total capital investment of USD 7.6 million was required. A payback period of 4.6 years was projected with an IRR of 21.7\% and a break-even value of USD 2.9 million. The economic assessment was for a target bio coal production of 69 tons/day and a selling price of USD 200/ton. A positive NPV of USD 2.1 million was realized. The results from the investment appraisals in this case study indicated that it is worthwhile to invest in bio coal production.",

keywords = "ARR, Bio coal plant investment, IRR, NPV, Payback period",

author = "M. Mugoronji and Manyuchi, \{M. M.\} and N. Sukdeo and W. Stinner",

note = "Publisher Copyright: Copyright {\textcopyright} 2021 by Naud{\'e} Scribante. Permission granted to IAMOT to publish and use.; 30th International Conference of the International Association for Management of Technology: MOT for the World of the Future, IAMOT 2021 ; Conference date: 19-09-2021 Through 23-09-2021",

year = "2021",

doi = "10.52202/060557-0050",

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series = "Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future",

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Mugoronji, M, Manyuchi, MM , Sukdeo, N & Stinner, W 2021, ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION. in Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future. Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future, University of Pretoria, pp. 652-661, 30th International Conference of the International Association for Management of Technology: MOT for the World of the Future, IAMOT 2021, Cairo, Virtual, Egypt, 19/09/21. https://doi.org/10.52202/060557-0050

ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION. / Mugoronji, M.; Manyuchi, M. M.; Sukdeo, N. et al.
Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future. University of Pretoria, 2021. p. 652-661 (Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION

AU - Mugoronji, M.

AU - Manyuchi, M. M.

AU - Sukdeo, N.

AU - Stinner, W.

PY - 2021

Y1 - 2021

N2 - Investment appraisals techniques are critical for measuring the profitability of a new project in the manufacturing sector. These appraisals techniques include the internal rate of return (IRR), net present value (NPV), payback period and accounting rate of return (ARR). In this case study where the economic potential for establishing a new bio coal production was evaluated using the hydrothermal carbonization technique: At total capital investment of USD 7.6 million was required. A payback period of 4.6 years was projected with an IRR of 21.7% and a break-even value of USD 2.9 million. The economic assessment was for a target bio coal production of 69 tons/day and a selling price of USD 200/ton. A positive NPV of USD 2.1 million was realized. The results from the investment appraisals in this case study indicated that it is worthwhile to invest in bio coal production.

AB - Investment appraisals techniques are critical for measuring the profitability of a new project in the manufacturing sector. These appraisals techniques include the internal rate of return (IRR), net present value (NPV), payback period and accounting rate of return (ARR). In this case study where the economic potential for establishing a new bio coal production was evaluated using the hydrothermal carbonization technique: At total capital investment of USD 7.6 million was required. A payback period of 4.6 years was projected with an IRR of 21.7% and a break-even value of USD 2.9 million. The economic assessment was for a target bio coal production of 69 tons/day and a selling price of USD 200/ton. A positive NPV of USD 2.1 million was realized. The results from the investment appraisals in this case study indicated that it is worthwhile to invest in bio coal production.

KW - ARR

KW - Bio coal plant investment

KW - IRR

KW - NPV

KW - Payback period

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AN - SCOPUS:85124011625

T3 - Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future

SP - 652

EP - 661

BT - Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future

PB - University of Pretoria

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Y2 - 19 September 2021 through 23 September 2021

ER -

Mugoronji M, Manyuchi MM , Sukdeo N, Stinner W. ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION. In Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future. University of Pretoria. 2021. p. 652-661. (Proceedings of the 30th International Conference of the International Association for Management of Technology, IAMOT 2021 - MOT for the World of the Future). doi: 10.52202/060557-0050

ECONOMIC EVALUATION TECHNIQUES FOR SUSTAINABLE BIO COAL PRODUCTION

Abstract

Publication series

Conference

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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