A comparative economic analysis of torrefied pellet production based on state-of-the-art pellets

Herein, the production costs of torrefied pellets are calculated based on inputs in production. The market value of the produced pellets is estimated and a cash-flow analysis is carried out. Three economic indicators are calculated and compared for a torrefied and conventional pellet production scenario. A sensitivity analysis is carried out for selected process inputs and the cost of CO2 through co-firing pellets is estimated. The results indicate that state-of-the-art torrefied pellet production cannot compete with conventional pellets even with transatlantic product transport distances. A high capital investment cost and a low heating value are the main barriers to economic feasibility of state-of-the-art torrefied pellets.