Economic and Environmental Analysis of Pellets’ Production in Rio Pardo Watershed, Brazil

ABSTRACT Economic and environmental aspects of residues energetic use in Brazil are extremelly important. In one hand, the country is today a recognized bioenergy producer in a global scenario; on the other, it is still struggling to provide a reliable renewable energy supply to rural communities. Local demand could be supplied through small investments using local forest mill residues as feedstock to produce value-add bio-based energy fuels. Therefore, this work aims at evaluating wood pellets production as an alternative source for supplying regional heat demand for drying grains and tobacco in the Rio Pardo Watershed (RPW), Brazil. It presents techno-economic analysis and risk assessment for a pellet plant supplied by sawmill residues available at the RPW. The results showed the economic feasibility of pellets production in the RPW. The pellets can be a clean, renewable alternative energy source to firewood for supplying farms demand for drying grains and tobacco.