BIO-BASED ECONOMY

Biomass pellets and heaters from agricultural waste for poultry farms

Biomass pellets and heaters from agricultural waste for poultry farms

Market

Final Products Biomass pellets
Required Inputs Palm fronds, mixed wood dust and waste from industries and mixed agricultural waste
Competing Products

Low competition
Fossil fuel (mainly butane gas) and Refuse Derived Fuel (RDF)

Potential for Export High

Process

Complexity – Type of Process Medium – mechanical process
Technology Crushing, grinding, and pelleting
Equipment and Material Crusher, grinder, and a briquetting machine
Human Resources Technicians, machines operators, and drivers

Business Linkage

Forward Linkage Poultry farms
Local/Regional/Nationwide Local Market- Nationwide
Backward Linkage Agriculture and wood waste contractors
Supporting Entities Equipment suppliers and testing facilities
Competitive Edge
Higher energy security (less price volatility compared to butane) and better hygiene/safety compared to fossil fuels

Economic Features

Revenue Stream Sales of biomass pellets
CAPEX Consists of the cost of machinery ranging from 6.6M EGP
Investment Size Medium (between 5-50M EGP)

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can start from a micro-scale investment and grow in scale.

Considerations

Key Challenge Farmers’ commitment to sell their agricultural waste, cash flow management, limited access of recyclers to industrial waste for supply, and absence of designated recycling areas
Advantages Avoids shortage and increasing prices of butane tanks
Potential Pathways to Growth Biomass pellets with higher calorific value by using an enhanced mix of inputs. Selling full/turnkey efficient poultry farm management solutions (including ventilation, bedding/slatted flooring, automation, veterinary services, feeder systems, etc.)

General Impact

Environmental Eco-friendly use of agricultural waste and lower CO2 emissions than fossil fuel or open burning of waste
Social Increases return on agricultural products and create jobs for unskilled labor

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market Renewable energy solutions
Lies within the following
value chain/cluster(s)
Agricultural waste
Impact Fills the gap in energy source accessibility for poultry farms and ensures energy sustainability
* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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