Economic Viability Assessment of Small‑Scale Biomass Composting Project Within a Developing Country Contex

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dc.contributor.authorBanunle, Albert
dc.contributor.authorFei‑Baffoe, Bernard
dc.contributor.authorMiezah, Kodwo
dc.contributor.authorEwusi‑Mensah, Nana
dc.contributor.orcid0000-0002-0200-3198
dc.date.accessioned2024-07-23T09:32:38Z
dc.date.available2024-07-23T09:32:38Z
dc.date.issued2024
dc.descriptionThis article is published by springer,2024 and is also available at https://doi.org/10.1007/s43615-023-00328-4
dc.description.abstractPromoting investment in biomass composting is necessary to halt fnite resource depletion and transition consumption and production processes into sustainable circular bioeconomy paths. This notwithstanding, there is a lack of demonstrable evidence of the economic via bility of such investment, which often disincentivises the adoption of composting and other greener production technologies by entrepreneur. To address this problem, this study evalu ates the economic viability of composting as technology for valorising biowaste and tropi cal aquatic invasive plants in the Owabi catchment in the Ashanti Region of Ghana. Using data from interviews with key informants, pilot study fndings and market survey, a cost–beneft analysis (CBA) was performed to determine the economic viability of composting organic waste under public and private ownership models (M1P1 and M1P2, respectively) as well as aquatic invasive plants under similar models (M2P1 and M2P2). The fndings show that a positive net present value (NPV) of GHS 507,520.31(US $64,243.08) to GHS 1,217,358.77 (US $154,095.92) is achievable from the alternative scenarios modelled. Each of the scenarios analysed (M1P1, M1P2, M2P1 and M2P2) resulted in a beneft–cost ratio (BCR) greater than 1 and an internal rate of return (IRR) greater than 28%. These results remain robust even with sensitivity analysis based on pessimistic assumptions about costs, benefts, discount rate and project lifespan. The study thus concludes that investing in a small-scale compost production technology with biowaste and aquatic invasive plants as feedstock is a feasible business with positive social, economic and environmental net benefts. Future development in the carbon credit market will make biomass composting even more economically viable to investors and thereby contribute to sustainability and the transition to a circular economy.
dc.description.sponsorshipKNUST
dc.identifier.citationCircular Economy and Sustainability
dc.identifier.uri10.1007/s43615-023-00328-4
dc.identifier.urihttps://ir.knust.edu.gh/handle/123456789/15861
dc.language.isoen
dc.publisherSpringer
dc.titleEconomic Viability Assessment of Small‑Scale Biomass Composting Project Within a Developing Country Contex
dc.typeArticle
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