Structural techno-financial evaluation of charcoal production technologies: implications for economic resilience and sector modernization

Abstract

This study presents a comparative techno-financial evaluation between an improved conventional kiln and an indirect-heating metallic retort for charcoal production. A ten-year discounted cash flow model was developed incorporating depreciation, a 25% corporate income tax rate, working capital requirements, intermediate reinvestment equivalent to 25% of initial investment in year five, and a 12% discount rate. Financial indicators included Net Present Value (NPV), Internal Rate of Return (IRR), and Modified Internal Rate of Return (MIRR), along with sensitivity analysis and both simple and discounted payback periods. Results indicate that both technologies are economically feasible under the base scenario; however, the metallic retort demonstrates higher value generation due to its superior gravimetric yield and reduced specific biomass consumption. The observed difference is not merely quantitative but structural: moderate improvements in thermal efficiency generate non-linear effects on cash flow accumulation and financial resilience. Dynamic analysis confirms that the retort maintains profitability across wider discount rate ranges, preserving its economic advantage even under conservative reinvestment assumptions.

It is concluded that thermal efficiency operates as a structural variable shaping the economic architecture of charcoal production systems, and that technological modernization can significantly transform value generation within the charcoal subsector.