Financial Analysis of Feasibility for a Heat Utilization System Using Rice Straw Pellets - Heating Energy Demand and the Collection and Storage Method in Nanporo, Japan

Rice straw pellets are a promising fuel as a renewable
energy source. Financial analysis is needed to make a utilization
system using rise straw pellets financially feasible, considering all
regional conditions including stakeholders related to the collection and
storage, production, transportation and heat utilization. We conducted
the financial analysis of feasibility for a heat utilization system using
rice straw pellets which has been developed for the first time in
Nanporo, Hokkaido, Japan. Especially, we attempted to clarify the
effect of factors required for the system to be financial feasibility, such
as the heating energy demand and collection and storage method of
rice straw. The financial feasibility was found to improve when
increasing the heating energy demand and collecting wheat straw in
August separately from collection of rice straw in November because
the costs of storing rice straw and producing pellets were reduced.
However, the system remained financially unfeasible. This study
proposed a contractor program funded by a subsidy from Nanporo
local government where a contracted company, instead of farmers,
collects and transports rice straw in order to ensure the financial
feasibility of the system, contributing to job creation in the region.

• K. Ishii
• T. Furuichi
• A. Fujiyama
• S. Hariya

• Rice straw
• pellets
• heating energy demand
• collection
• storage.

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rice straw, rice husk and wheat straw in Nanporo town,” 2009. (in
Japanese)
[5] Hearing investigation to Nanporo local government.