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THE CIRCULAR ECONOMY MODEL OF WASTEWATER TRANSFORMATION TO RENEWABLE ENERGY
Abstract
Due to the ever-growing importance of resource conservation and sustainable lifestyle, people are searching for new, alternative solutions that will enable a more sustainable use of resources. Because energy production is one of the most pollution-intensive industries, a major factor is renewable energy, which reduces the amount of industry pollution and facilitates sustainable use of resources. One of the sustainable energy resources are Salix and the wood chips produced from them, which are used in energy production at cogeneration plants. The quick-growing nature of Salix make Salix wood chips a valid alternative for fossil energy resources. The objective of this paper is to research the economic opportunities for planting and developing Salix fields in Latvia. The paper analyses the theoretical aspects of renewable energy industry, and the growing and utilization of Salix. The research part focuses on analysing Salix fields in Latvia, calculating the economic gross margin per one hectare of Salix fields with a 25-year life cycle and a 3-year harvesting period on the basis of the gross margin models, developing a MET matrix to discover the environmental impact of Salix growing, as well as surveying Salix growers regarding the cultivation, utilisation and future potential of Salix. The research concludes that Salix growing is an economically viable process. Planting material costs account for the majority of the initial expenses, but this investment is fully returned by the third harvest. The greatest impact on the environment and climate is caused by land cultivation, with toxic materials as the main contributor. According to Salix growers, this is an economically viable field if making use of non-agricultural land and cultivating large areas to reduce machinery costs. The future potential of Salix growing is substantiated by the cogeneration stations in Latvia which are in need of fuels.
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