Cost–Benefit Analysis for Supply Chain of Renewable Gases from Perennial Energy Crops: The Case of Lithuania

Abstract

The increasing production of renewable gases has been driving attention to perennial energy crop production, particularly the problem of choosing an attractive and effective way to produce the supply chain from the farmer to the biogas plant. The production of perennial energy crops for renewable gases may provide an excellent chance for a sustained bioeconomy and help to minimize the total environmental effect of the section. This study aims to demonstrate the scenarios associated with the production of five perennial energy crops, namely, Miscanthus, Switchgrass, Perennial Ryegrass, Common Sainfoin, and Lucerne, for renewable gases in the supply chain. The investigation was carried out utilizing cost–benefit methodology, during which a net benefit identification was executed by comparing the internal rate of return (IRR), payback period (PBT), and net present value (NPV), in addition to the benefit-cost ratio (RBC). According to the results, the best and most attractive perennial energy crops for biogas production include Miscanthus and Switchgrass. Perennial Ryegrass, Common Sainfoin, and Lucerne are not attractive crops for the supply chain of renewable gases. The earned revenue is too small to cover the costs of cultivation.