Economic viability of short rotation coppice for energy production for reuse of caesium-contaminated land in Belarus

Abstract Following the Chernobyl accident, changed land use such that the products of the land are radiologically acceptable and assure an economic return is a potentially sustainable remediation option. In this study, Short rotation coppice (SRC) for energy production is evaluated as an alternative land use in contaminated areas. If the radiological and technical feasibility criteria are met, the economic viability of the SRC wood production and conversion of the biofuel to energy is a prerequisite for promotion of this alternative landuse. Data were collected for Belarus conditions and the economics of SRC production and conversion side were modelled using the Renewable Energy Crop Analysis Programme (RECAP). The profitability of SRC production largely depends on crop yield, harvesting method and price of the delivered biofuel, labour and machinery cost playing a minor role. The required internal rate of return (IRR) of 5% at the production side is only obtained with high biofuel prices (40 EUR t −1 ) and a biomass yield of at least 6 t ha −1 . For appropriate soil conditions, potential SRC yields are high (10– 12 t ha −1 yr −1 ) . However, in Belarus, most soils are sandy for which yield estimates are too low (5 t ha −1 ) to make production profitable. Cut and chip harvesting is more profitable than stick harvesting. On the conversion side, heat and power plant investment schemes are only profitable when industrial energy prices are considered. Systems are not viable at lower domestic rates with IRR being always smaller than the 10% required for industry in Belarus. Large-scale heat conversion systems are the most profitable and revenue may be considerable with the IRR between 16% and 59%. Electricity routes are usually unprofitable. Waste disposal costs are only a small fraction of the total costs and revenue.