Life Cycle Cost Analysis of a Biomass-Driven ORC Cogeneration System for Medical Cannabis Greenhouse Cultivation

Medical cannabis cultivation requires substantial energy for heating, lighting, and climate control. This study evaluates the economic feasibility of an innovative biomass-fired micro-CHP system in a greenhouse facility for medicinal cannabis cultivation. The system comprises an 80 kWth boiler retrofitted for biomass and a 7 kWel ORC engine and is assessed against a diesel-boiler Business-As-Usual (BAU) benchmark. Thermal load simulations for two growing periods (1 March–30 June and 1 September–30 December) estimate an annual heating demand of 91,065.20 kWhth. The micro-CHP system delivers 8195.87 kWhel per year, exceeding the greenhouse’s 7839.90 kWhel consumption. Over a 30-year lifespan at a 7% discount rate, Life Cycle Costing yields EUR 196,421.33 for micro-CHP versus EUR 229,468.46 for BAU, a 14.4% reduction. Under all-equity financing, the project achieves an NPV of EUR 59,591.88, IRR of 27.32%, and a DPBP of 12.1 years; with 70% debt financing, NPV rises to EUR 61,211.39 and DPBP shortens to 10.5 years. Levelized Cost of Energy (LCOE) and Heat (LCOH) are EUR 0.122 per kWhel and EUR 0.062 per kWhth, respectively. While the LCOE is below the Greek and EU non-household averages (EUR 0.1578 and EUR 0.1515 per kWhel), the LCOH exceeds the corresponding heat price benchmarks (EUR 0.0401 and EUR 0.0535 per kWhth). These results indicate that, in the modeled context, biomass-ORC cogeneration can be a financially attractive and lower-carbon option for medicinal cannabis greenhouse operations.