Economic analysis of the collection and transportation of pruned branches from orchards for energy production.

Abstract

This economic analysis contains a case study for a 100 ha apple orchard where a pruning-to-energy (PtE) strategy is employed. Technical aspects of pruned biomass harvesting in apple orchards are outlined, with emphasis on the efficient harvesting of pruning residues using a dedicated baling machine. Economic aspects are approached using economic performance metrics such as the net present value (NPV) and internal rate of return (IRR). It is found, for a 10-year project on the 100 ha orchard, that the NPV is €5650, the IRR is 8.71% and the payback time is about 8.0 years. Sensitivity analysis revealed that the economic metrics are highly influenced by the quantity of prunings, orchard area, and the price of pruning residues at the final user. The distance from the orchard to the final user (6 km in the analysed case) and orchard labour costs are both less impactful. The analysis shows that pruned biomass harvesting is technologically feasible in apple orchards, while the obtained values of the economic metrics indicate the economic feasibility of such bioenergy solutions.