A Techno-economic Feasibility Study of Rose Pepper Essential Oil Production (Schinus Terebinthifolius Raddi) Biorefinery in the Southern Coastal Territory of Bahia, Brazil

The Atlantic Forest biome boasts a vast biodiversity of aromatic and therapeutic plants with the potential for conversion into high value bioproducts for food, cosmetics, and pharmaceutical industries through biorefineries. This research aims to conduct a techno-economic feasibility study to produce rose pepper ( Schinus terebinthifolius Raddi ) essential oil in the Southern Coastal Territory (SCT) of Bahia, Brazil. The methodology adopted consists of a quantitative data collection for the techno-economic feasibility study, covering the availability of raw materials for extraction, a processing capacity of 650 t/year, production costs, and expected profit over a 10-year project lifespan. The technological route used was steam distillation due to the potential for industrial-scale extraction. Uncertainty assessment was performed using Monte Carlo simulation. The results indicated the economic feasibility of implementing the biorefinery in the SCT and allowed us to observe with 95% certainty that the expected profit is 50×10³ US$/year, and the probability of the project generating a financial loss is 8.2% at most. The net present value (NPV) was US$ 23×10³, the internal rate of return (IRR) was 19%, and the simple and discounted payback periods were 4 and 6 years, respectively. The profitability index (PI) was 11%, and the return on initial investment (ROI) was 69%. Therefore, it is concluded that the proposed biorefinery implementation allows adding value to the biomass of the Atlantic Forest vegetation and strengthens the non-timber forest bioeconomy and support the preservation of the Atlantic Forest, as it brings economic activity to the living forest.