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Embracing new agriculture commodity through integration of Java Tea as high Value Herbal crops in solar PV farms

Lookup NU author(s): Dr Yaodong WangORCiD

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Abstract

Integration of agriculture and renewable energy resources (RER) is currently a hot topic discussed worldwide based on the need for green energy and sustainable economy. The decreasing trend of global market value for the traditional agricultural commodity such as Rubber and Palm Oil really affected the Gross National Income (GNI) and thus, the government of Malaysia outlined a number of strategic thrusts to boost economic growth. Herbal products have been given sufficient rooms for extension as the first approved Entry Point Projects (EPP1) driver of sustainability. Orthosiphon Stamineus also known as Java Tea is among the five commercialize High-Value Herbal crops (HVHc) and chosen to be deployed under PV arrays based on its sustainability and potential market value. The financial analysis is based on 3-months harvesting cycle with reference to the harvesting coefficience p(c) and realistic cash flow. The Internal Rate of Return (IRR) is valued at 15.74% that benchmarks positive net return for herbal producers. The cash functions based on Return-on-Investment (ROI) can be achieved after 10 months cycle of production with Net Present Value (NPV) of RM8,863.59. This initiative flows in line with the Cleaner Production (CP) concept of efficient usage of natural resources to minimize waste and pollution. The concept of agro-technology integration is presented with strong financial return for the unused space under PV arrays configured for large scale PV farms. (C) 2014 Elsevier Ltd. All rights reserved.


Publication metadata

Author(s): Othman NF, Ya'acob ME, Abdul-Rahim AS, Othman MS, Radzi MAM, Hizam H, Wang YD, Ya'acob AM, Jaafar HZE

Publication type: Article

Publication status: Published

Journal: Journal of Cleaner Production

Year: 2015

Volume: 91

Pages: 71-77

Print publication date: 15/03/2015

Online publication date: 19/12/2015

Acceptance date: 11/12/2015

ISSN (print): 0959-6526

ISSN (electronic): 1879-1786

Publisher: Elsevier BV

URL: http://dx.doi.org/10.1016/j.jclepro.2014.12.044

DOI: 10.1016/j.jclepro.2014.12.044


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Funding

Funder referenceFunder name
5527132Ministry of Higher Education, Malaysia
9300400Research Management Centre (RMC), Universiti Putra Malaysia

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