Rethinking equality: a new concept for the redistribution of natural resources and sustainable development based on renewable energies

Sergio Baravalle

With ever growing concerns related to global warming, water/air quality and resource supply, communities are looking towards new models for the development of environmentally sustainable solutions, which also provide profitable business opportunities for the creation of economic value. Innovative solutions will need to consider the interests of different stakeholders, which bring new dimensions to the concept of value creation. This thesis focuses on the creation of a supply chain driven by the demands of a particular vulnerable stakeholder in a sustainable and profitable way. Simultaneously, it provides investors with a business opportunity, and governments with the possibility to develop a historically underserved area while enhancing national economies. The developed framework provides a platform for the combination of business units that allow for the transportation and utilization of agricultural waste from a resource-rich area to a resource limited area in a feasible and profitable manner. The areas were selected based on a cartographic analysis that considered social, economic and environmental aspects. The procedure sets the basis for a future model, to recognize potential beneficiaries of the platform. In this particular case, the underserved area has the potential for agricultural production but water is only accessible at 200 m depth and it is naturally polluted with boron and arsenic while containing a high concentration of salts. The solution created by this model considers the collection of corn stover produced in a nearby agriculturally rich area, that once torrefied and pelletized is transported by freight train with available capacity due to preexisting inefficient logistics. Once the densified energy is transported to the underserved area, it can be easily stored and utilized as a feedstock for a cogeneration plant (CHP) that produces electric power and distilled water, free of arsenic, boron and salts. The resulting water is drinkable and can be utilized for irrigation providing the area with the two missing elements for the development of a sustainable and profitable agricultural activity. Modeling with sensitivity analysis shows the project having a positive NPV considering a 9% WACC. The concept, named bioequality, promotes social equality based on sustainable and profitable solutions.

Rethinking equality: a new concept for the redistribution of natural resources and sustainable development based on renewable energies

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