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<p>This study evaluates the economic viability of generating power from discarded coffee grounds, focusing on the densely populated regions of Seoul and Gyeonggi Province. South Korea’s high coffee consumption results in substantial coffee ground waste, offering a biomass source compatible with the country’s forthcoming Distributed Energy Act, which emphasizes localized energy production. The analysis employed Net Present Value (NPV) and Profitability Index (PI) calculations over a projected 40-year power plant lifespan. Initial results indicated low economic feasibility, with NPVs of -17,222&#xa0;million KRW for Seoul and − 2,638&#xa0;million KRW for Gyeonggi Province. However, sensitivity analyses showed that economic outcomes improve significantly with optimized fuel moisture content, increased thermal efficiency, and favourable Renewable Energy Certificate (REC) weighting. Specifically, reducing moisture content to 40% or increasing thermal efficiency to 35% allowed for positive NPVs in Gyeonggi. Additionally, an REC weighting of 0.75 or higher was crucial for achieving economic feasibility in both regions. These findings suggest that while coffee grounds present an environmentally sustainable energy source, their economic viability in power generation relies heavily on achieving optimal operational conditions and regulatory support, especially through REC incentives.</p>

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Economic feasibility analysis of power generation from coffee grounds biomass power plants: focusing on Seoul and Gyeonggi Province

  • 期刊论文

  • 发表日期：

    2026年2月12日

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  • Sunyong Park,
  • Kwang Cheol Oh,
  • Seok Jun Kim,
  • Kyeong Sik Kang,
  • Sunhwa Ryu,
  • DaeHyun Kim

摘要

This study evaluates the economic viability of generating power from discarded coffee grounds, focusing on the densely populated regions of Seoul and Gyeonggi Province. South Korea’s high coffee consumption results in substantial coffee ground waste, offering a biomass source compatible with the country’s forthcoming Distributed Energy Act, which emphasizes localized energy production. The analysis employed Net Present Value (NPV) and Profitability Index (PI) calculations over a projected 40-year power plant lifespan. Initial results indicated low economic feasibility, with NPVs of -17,222 million KRW for Seoul and − 2,638 million KRW for Gyeonggi Province. However, sensitivity analyses showed that economic outcomes improve significantly with optimized fuel moisture content, increased thermal efficiency, and favourable Renewable Energy Certificate (REC) weighting. Specifically, reducing moisture content to 40% or increasing thermal efficiency to 35% allowed for positive NPVs in Gyeonggi. Additionally, an REC weighting of 0.75 or higher was crucial for achieving economic feasibility in both regions. These findings suggest that while coffee grounds present an environmentally sustainable energy source, their economic viability in power generation relies heavily on achieving optimal operational conditions and regulatory support, especially through REC incentives.