Feasibility Study of a Biomass-Methane Clean Fuel Project in Punnichy, Saskatchewan
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2023-11-16
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Abstract
This study aims to explore the economic feasibility of Rainforest Energy Corp.’s first biomass-methane dual feedstock clean fuel project in Punnichy, Saskatchewan. The research is crucial not only for various stakeholders to assess the Project’s financial sustainability for decision-making purpose, but also for the industry to benchmark and the government to adjust policies where appropriate to contribute to Canada’s net-zero greenhouse gas emissions commitment. Methodologies used include projection of financial statements and critical performance indicators, as well as performance of sensitivity and ratio analysis. At a strategic level, the Project appears to be the most favorable option when it manages to achieve both positive investment return and negative carbon footprint. Detailed financial analysis also sheds light on the Project’s economic vibrancy. Although investment return is more sensitive to decrease in the product output price, such risk may be mitigated through price hedging and other structural measures.
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Zhou, H. (2023). Feasibility Study of a Biomass-Methane Clean Fuel Project in Punnichy, Saskatchewan (Unpublished master's project). University of Calgary, Calgary, AB.