Economic and financial viability of sweet potato ethanol production in microdistilleries

Authors

  • Wania Kauana Bernardi Universidade Estadual de Ponta Grossa
  • Pedro Henrique Weirich Neto Universidade Estadual de Ponta Grossa
  • Jaime Alberti Gomes Universidade Estadual de Ponta Grossa
  • Aghata Cristie Rewa Charnobay Universidade Estadual de Londrina
  • Reginaldo Ferreira Barreiros Universidade Estadual de Ponta Grossa

Keywords:

Biofuel, Bioenergy, Peasant Farming

Abstract

Renewable energy demand is expanding worldwide and it is stimulating the biofuel sector. Sweet potato, due to its productivity and edaphoclimatic adaptation, has potential for ethanol generation. This crop also plays an important social role, as it is directly linked to peasant production systems. As every project needs planning before execution, we proposed to analyze the economic and financial viability of sweet potato ethanol production in microdistilleries. Simulations were carried out in twelve scenarios, varying factors such as costs, starch content, taxes, and the sale price. Net Present Value, Internal Rate of Return, and Payback were used as
study tools. The most promising scenarios were those with a microdistillery production capacity of 807 L day-1 and direct sales to the consumer. Scenario twelve, involving 58 farmers supplying 30 Mg ha-1 of sweet potato to the plant, with a starch content of 300 g kg-1, plant operation for 11 months per year, sales price BRL 2.92 L-1, and exemption from PIS/Pasep and Cofins taxes, was the most attractive. It resulted in an NPV of BRL 4,053,178.70, 39% IRR and Payback of 4.43 years. Scenarios with ethanol production of 403 L day-1 proved to be unfeasible or unattractive economically. 

Author Biography

Pedro Henrique Weirich Neto, Universidade Estadual de Ponta Grossa

Has degree in Agricultural Engineering by Universidade Federal de Pelotas (UFPel) (1988) and Ph.D. in Agricultural Engineering by Universidade Estadual de Campinas (Unicamp) (2004). Currently is professor at Universidade Estadual de Ponta Grossa (UEPG) subject responsibly at Agricultural Mechanization in Agronomy and Animal Science undergraduate courses and Spatial Compliance Variability of the soil and plant in Agronomy graduate course and Scientific Methodology for graduate course of Bioenergy. As a researcher has experience in the area of Agricultural Engineering (no tillage systems), spatial variability of the soil and plant variables, and biofuel. As a Rural Extensionist works with sustainable agricultural in smallholder farm (dairy, landrace maize seeds and compliance Brazilian environmental law)

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Published

2021-10-22

How to Cite

BERNARDI, Wania Kauana; WEIRICH NETO, Pedro Henrique; GOMES, Jaime Alberti; CHARNOBAY, Aghata Cristie Rewa; BARREIROS, Reginaldo Ferreira. Economic and financial viability of sweet potato ethanol production in microdistilleries. Organizações Rurais & Agroindustriais, [S. l.], v. 23, p. e1777, 2021. Disponível em: https://www.revista.dae.ufla.br/index.php/ora/article/view/1777. Acesso em: 1 may. 2025.