Comparing Investment Options In A Lignite Deposit Exploitation Project

The modelling process described in this paper was developed in order to assess the feasibility of various investments options for the exploitation of a lignite deposit located in the Prefecture of Florina, Greece. The model uses as evaluation criterion the net present value. It is based on the characteristics of the reserves and relates the decision making with numerous technical, economic and environmental factors. The examined alternatives include the construction of a new thermal power plant at the mine-mouth, the fuel supply of already existing power plants located at relatively long distances and the fuel exports in neighboring countries. Moreover, the feasibility of post-poning the exploitation of the lignite deposit and preserving its reserves for exploitation in the future is also assessed. The paper also includes a short discussion about the environmental constraints related to the supply of lignite produced from Florina mines to power plants that were designed and constructed for burning fuel mixtures with different quality characteristics.