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Rice straw-base power generation: a potential and economic cost–benefit analysis for a small power plant (10 MWe) in Vietnam

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Abstract

The main objective of the study is to explore the economic feasibility of power generation from rice straw, a potential biomass energy resource, in Vietnam. We calculated the potential of rice straw (as a feedstock for the production), the costs and benefits of operating a rice straw-based small power plant (10 MWe). The economic feasibility of the project was evaluated using net present value (NPV), internal rate of return (IRR), and payback period (PBP) parameters. In Vietnam, the amount of rice straw generated annually is approximately 54 million tons. In which, Kien Giang has the highest potential to produce electricity with the amount of 245 MWe/year. The study showed a NPV value of nearly 3.4 million USD, IRR 15% and 13 years of PBP over the lifetime of 20 years, suggesting that it is economically feasible to be implemented in Vietnam. It pointed out that the fuel cost accounted for the highest proportion of the total operating cost, at 49.3%. It is recommended that more specific regional parameters should be taken into account and thoroughly investigated to support decision makers in using rice straw for electricity generation.

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Abbreviations

AOT:

Annual operating hours

CHA:

Central Highlands areas of Vietnam

C A :

Annuity cost

C C :

Contingency cost

C E :

Average employment cost

C F :

Fuel cost

C L :

Labour cost

C M :

Maintenance and repair cost

C U :

Utility cost

FC:

Sum of equity and principal repayment

IRR:

Internal rate of return

LHV:

Low heating value

L N :

Labour number

MRD:

Mekong River Delta areas of Vietnam

MW:

Megawatt = 106 W

MWe:

Megawatts electric

NCCC:

North Central and Central coastal areas of Vietnam

NMM:

Northern Midlands and Mountain areas of Vietnam

NPV:

Net present value

PBP:

Payback period

PPC:

Power plant capacity

RSB:

Rice straw burning

RISR:

Rice straw residue

RRD:

Red River Delta areas of Vietnam

RSdem :

Annual rice straw demand

SEA:

South East areas

TOC:

Total operating costs

W out :

Electricity output

µ :

Foreseen overall efficiency of the plant

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Acknowledgements

This research was funded by the Vietnam National Foundation for Science and Technology Development (NAFOSTED) under Grant number 105.08-2018.04.

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Author notes

  1. Do Ha Thu

    Present address: Good Neighbors International (GNI) in Vietnam, 17th floor, Block A, Song Da Building, Me Tri 1 Ward, Nam Tu Liem District, Hanoi, Vietnam

Authors and Affiliations

  1. Faculty of Environmental Sciences, University of Science, Vietnam National University (VNU), 334 Nguyen Trai, Thanh Xuan, Hanoi, Vietnam

    Hoang Anh Le & Do Ha Thu

  2. School of Water, Energy and Environment, Cranfield University, College Road, Cranfield, Bedford, UK

    Ngo Quang Khoi

Authors
  1. Hoang Anh Le
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Correspondence to Hoang Anh Le.

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Le, H.A., Thu, D.H. & Khoi, N.Q. Rice straw-base power generation: a potential and economic cost–benefit analysis for a small power plant (10 MWe) in Vietnam. J Mater Cycles Waste Manag 23, 2232–2241 (2021). https://doi.org/10.1007/s10163-021-01289-2

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