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[cite: 7]

Required Inputs

Palm fronds, mixed wood dust and waste from industries and mixed agricultural waste[cite: 7]

Competing Products

Low competition
Fossil fuel (mainly butane gas) and Refuse Derived Fuel (RDF)[cite: 7]

Potential for Export

High[cite: 7]

Process

Complexity – Type of Process

Medium – mechanical process[cite: 7]

Technology

Crushing, grinding, and pelleting[cite: 7]

Equipment and Material

Crusher, grinder, and a briquetting machine[cite: 7]

Human Resources

Technicians, machines operators, and drivers[cite: 7]

Business Linkage

Forward Linkage

Poultry farms[cite: 7]

Local/Regional/Nationwide

Local Market- Nationwide[cite: 7]

Backward Linkage

Agriculture and wood waste contractors[cite: 7]

Supporting Entities

Equipment suppliers and testing facilities[cite: 7]

Competitive Edge

Higher energy security (less price volatility compared to butane) and better hygiene/safety compared to fossil fuels[cite: 7]

Economic Features

Revenue Stream

Sales of biomass pellets[cite: 7]

CAPEX

Consists of the cost of machinery ranging from 6.6M EGP[cite: 7]

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.[cite: 7]

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[cite: 7]

Advantages

Avoids shortage and increasing prices of butane tanks[cite: 7]

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.)[cite: 7]

General Impact

Environmental

Eco-friendly use of agricultural waste and lower CO2 emissions than fossil fuel or open burning of waste[cite: 7]

Social

Increases return on agricultural products and create jobs for unskilled labor[cite: 7]

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

Relevant sub-market

Renewable energy solutions[cite: 7]

Lies within the following
value chain/cluster(s)

Agricultural waste[cite: 7]

Impact

Fills the gap in energy source accessibility for poultry farms and ensures energy sustainability[cite: 7]

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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