Economic Assessment of Biochar-Based Controlled-Release Nitrogen Fertilizer Production at Different Industrial Scales

Abstract

Abstract Purpose The increasing demand for food and the low efficiency of conventional nitrogen (N) fertilizers (40%-50%) have led to the development of controlled-release fertilizers (CRFs) to reduce nutrient loss, improve nutrient use efficiency (NUE), and minimize environmental impact. Among these, biochar-based controlled release N fertilizers (BCRNFs) have gained significant attention due to their potential soil health benefits. However, their commercial success remains limited due to lack of economic assessment. This study evaluates the production cost to anticipate the economic feasibility of BCRNF at different industrial scales by analyzing the cost factors, and break-even prices. Methods A cost analysis was conducted for three production capacities: 500 kg/h (small), 2000 kg/h (medium), and 4000 kg/h (large). The BCRNF formulation assumed to be consist of biochar, compost, and urea (20%–20%–60% dry weight basis), with pelleting and polymer coating for controlled release. The cost model considers the capital and major operating costs, estimating break-even selling prices and net present value (NPV). Sensitivity analysis was also conducted to identify key cost factors. Results The break-even selling price were estimated as $1.24/kg, $1.02/kg, and $0.98/kg for small, medium, and large-scale production respectively, achieving a positive NPV within one year. Feedstock costs were the most significant and sensitive contributors comprising 47.30%, 57.2%, and 59.98% of total production costs across the facility sizes. Scaling up the production reduces per-unit costs, making BCRNF more competitive with conventional fertilizers. Conclusion Larger-scale production significantly reduces unit costs, enhancing the economic feasibility of BCRNF. Expanding production capacity through multi-shift operations or facility scaling can improve market competitiveness, supporting broader adoption of BCRNFs as a sustainable fertilizer alternative. Graphical Abstract

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