Discussion
Economics of four utilisation routes for a residue arising at 20 tonnes a day.
| Route | Processing cost per tonne | Product value per tonne | Margin |
|---|---|---|---|
| Sold loose as fuel | 120 | 300 | 180 |
| Briquetted and sold | 380 | 780 | 400 |
| Digested to biogas | 460 | 700 | 240 |
| Hydrolysed to ethanol | 1900 | 2100 | 200 |
Which route gives the best return on this stream?
Answer: A
Correct answer: Briquetting, at a margin of 400 per tonne
The margin column settles it: briquetting returns 400 per tonne against 240 for digestion, 200 for ethanol and 180 for selling loose.
The ethanol route is the instructive case. Its product is worth 2100 per tonne, by far the highest figure in the table, yet its processing cost of 1900 absorbs almost all of that. Product value alone is a poor guide, and the margin is what the decision must rest on - which is why simple routes so often beat sophisticated ones on a modest stream.
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