With the improvement of environmental awareness and the increasing demand for renewable energy, biomass energy industry has gradually become a hot investment field. Among them, biomass briquette machine, as a kind of equipment to convert agricultural and forestry wastes into efficient fuels, has attracted much attention. However, before deciding whether to invest in biomass briquette machine, it is very important to calculate the return on investment (ROI). The following are specific methods and steps:

1. Determine the total investment cost

First of all, it is necessary to make clear the total investment cost of biomass briquette machine equipment. The total investment cost includes the following aspects:

Equipment purchase cost: 

The purchase price of biomass briquette machine.

Installation and debugging costs: 

Transportation, installation and debugging costs of equipment.

Site cost: 

The lease or construction cost of the site required for equipment operation.

Operating costs:

Including labor, electricity, maintenance and raw material costs.

2. Calculate the annual income

Annual income is the net profit that equipment brings to enterprises every year, which mainly comes from the following aspects:

Product sales revenue:

The market price of biomass briquette products multiplied by the annual output.

Subsidies for energy conservation and emission reduction: 

Some local governments will provide subsidies for biomass energy projects.

By-product income:

Other saleable by-products may be produced in the production process.

3. Formula for calculating return on investment

The return on investment (ROI) can be calculated by the following formula: ROI = annual net income/total investment cost × 100% Among them, the annual net income is equal to the annual income MINUS last year’s operating costs.

4. Analyze the payback period

In addition to ROI, we also need to pay attention to the return period, that is, how long it takes to recover the initial investment cost. The calculation formula of return period is: Return period = total investment cost/annual net income

5. Comprehensive assessment of risks and benefits

After calculating ROI, it is necessary to comprehensively evaluate the market demand, the stability of raw material supply and the service life of equipment. If the market demand is strong and the equipment runs stably, the return on investment will be higher and the return period will be shortened.

Assuming that the total investment cost of a biomass briquetting machine is 500,000 yuan, the annual operating cost is 100,000 yuan, the annual sales income is 400,000 yuan, and the government subsidy is 50,000 yuan, then: Annual net income = annual sales income+government subsidy-annual operating cost = 40+5-10 = 350,000 yuan. ROI = 35 / 50 × 100% = 70% Return period = 50/35 ≈ 1.43 years Through the above calculation, it can be seen that the equipment has a high return on investment and a short return period, which is worth considering.

To sum up, to accurately evaluate the return on investment of biomass briquette machine needs to comprehensively consider various factors and make reasonable predictions in combination with market conditions, so as to make scientific investment decisions.