Prospects for Wood Pellet Production in Kazakhstan: A Case Study on Business Model Adjustment

Abstract

Biomass and renewable resources are becoming substitutes for fossil-based resources, providing opportunities for more sustainable environmental management and reductions in environmental damage. This paper studies the prospects for wood pellet production in Kazakhstan through the lens of business model adjustment in a microenterprise in Kazakhstan. This study focuses on answering the following questions: (1) How do microenterprises propose, create, deliver and capture value through business models in the wood industry? (2) What are the opportunities and challenges relating to these business models in the context of wood pellet production in Kazakhstan? Kazakhstan has a high potential for biomass production, providing a particularly interesting case for analysing how microenterprises can tap into this potential to create value. This paper combines an analysis of bioenergy and forestry trends with a qualitative case study. The analysis of the business model is based on Osterwalder’s business model canvas. The value proposition of the enterprise studied herein is to provide a local biomass-based alternative to fossil fuels. The overall growth of wood-based industries in Kazakhstan and the national movement towards renewable energy create favourable prospects for microenterprises engaged in the production of wood pellets; however, these industries are also characterised by high institutional and regulatory dependencies.