Economics of Briquettes and Charcoal Production Technologies in Kenya: Implication for Wide-scale Commercialization

Abstract

. Abstract: This study evaluated the economic viability of investing in improved briquettes and charcoal production technologies among small-medium entrepreneurs. Specifically, the study estimated the cost of briquette and charcoal production using improved production technologies and determined the feasibility of the projects using specific economic indicators. The cost of production comprised of fixed, operations and maintenance costs estimated from the current market prices and based on different assumptions. Economic analysis revealed that unit costs of briquette production using drum agglomerator and screw press technologies were KES.10.6 and KES. 17.83 per kg respectively, while production costs for charcoal were KES.27.79 and KES. 35.60 per kg when using vertical and horizontal drum kilns at a proposed selling price of KES. 40 and KES. 50 per kg respectively. The study recorded positive net present values for briquette and charcoal production using all the technologies. The highest net present value was recorded from drum agglomerator and vertical drum kiln technologies for briquettes and charcoal production respectively. Study findings reveal that production of briquettes and charcoal using the improved technologies is economically viable. The study gives a new direction to energy policy which could spur more interest among entrepreneurs willing to invest in the bioenergy sector.