Economic Viability


 

Investment calculations have shown that in suitable regional conditions the PROGRASS® concept permits a profitable utilisation of semi-natural grasslands. The economic profits of the approach is decisively influenced by the following factors:


  • Pellet / briquette price.

  • Location close to a biogas plant generating low-cost waste heat.

  • Close distances between plant and grassland sites.

  • Geographic proximity to an existing biomass pellet or briquette production facility (pellet blending) or to a biomass furnace (eg heating plant).

  • Increase of prices of solid fuels.

  • Investment costs.

  • Labour costs.

  • Maintenance and repair.

  • Costs of processing energy.

  • Costs and composition of grassland substrates.

  • Grassland harvest yields.

  • Transport costs.

  • Public funding and subsidies (EU area payments, environmental measures applying to agriculture).

  • Amount and interests for external capital.

Considering regional characteristic conditions, calculations of land use options and plant investment show that the approach can represent a valuable economic alternative. In addition, it contributes to preserving regional economic structures and to protecting semi-natural grassland habitats. Furthermore, the combination of the IFBB procedure with a biogas plant (IFBB Add-on) leads to improved economic efficiencies of semi-natural grassland uses by numerous synergy effects.