Profitability Analysis for Biomethane: A Strategic Role in the Italian Transport Sector

Federica Cucchiella, Idiano D Adamo and Massimo Gastaldi
Additional contact information
Federica Cucchiella: Department of Industrial Engineering and Information and Economy, Via G. Gronchi 18, 67100 L Aquila, University of L Aquila, Italy.
Idiano D Adamo: Department of Industrial Engineering and Information and Economy, Via G. Gronchi 18, 67100 L Aquila, University of L Aquila, Italy.
Massimo Gastaldi: Department of Industrial Engineering and Information and Economy, Via G. Gronchi 18, 67100 L Aquila, University of L Aquila, Italy.

International Journal of Energy Economics and Policy, 2015, vol. 5, issue 2, 440-449

Abstract: Biomethane is an interesting source for sustainable energy systems, featuring great flexibility that translates into multiple possible applications (vehicle fuel, combined production of thermal and electrical energy, injection in the gas grid). Compared to biogas, biomethane permits greater efficiency. Its use is not limited to the immediate area of the plant and purification of the raw methane means greater lifespans for the equipment. This paper analyses its use in the transport sector in light of recent statutory changes that introduce incentives. Net present value and discounted payback time are applied for the evaluation of profitability of biomethane plants, and are calculated in function of the feedstocks used, the plant dimensions and the firm configuration (producer and distributor combined; separate firms). Environmental considerations and a high number of natural gas vehicles define its strategic role in the Italian transport sector.

Keywords: Biomethane; Economic Development; Sustainability (search for similar items in EconPapers)
JEL-codes: O18 Q2 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econjournals.com/index.php/ijeep/article/download/1100/649 (application/pdf)
http://www.econjournals.com/index.php/ijeep/article/view/1100/649 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2015-02-07

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().