ECONOMICS OF GREENHOUSE PRODUCTION IN ALASKA

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ECONOMICS OF GREENHOUSE PRODUCTION IN ALASKA ( economics-greenhouse-production-in-alaska )

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If each head of lettuce were sold for $2 wholesale, the net loss for the facility would be $1,352. At a price of $3 per head, the potential income for the optimal greenhouse would be $146,755. It can be expected that the optimal greenhouse production would be able to sell the lettuce for a premium because the lettuce is harvested and sold with its roots. This allows the lettuce to have a longer shelf life and stay fresh longer. Higher lettuce wholesale prices can also be assumed in remote areas with limited access compared with Fairbanks or Anchorage. 4 Applications and Outlook The greenhouse technology demonstrated at CHSR could be exported to high cost rural communities in Alaska taking advantage of local renewable resources. Any kind of waste heat can be utilized to provide heat for a greenhouse facility. The knowledge acquired from CHSR’s greenhouse could be used to assess the feasibility of rural greenhouse operation combined with biomass power plants, coal power plants, diesel generators or other heat sources. The heating required for a greenhouse can be seen as a productive use for the waste heat rejected from the power cycle and as an increase in thermal efficiency of the power plant. Heating costs for the greenhouse are additional revenue for the power plant facility. The goal for other projects would be to achieve a combined heat and power (CHP) cycle with higher efficiency compared to power plant alone solutions in order to operate a greenhouse facility economically year-round in Alaska. The optimized greenhouse, if applied, would be the only commercial lettuce operation of this type in Alaska. For this reason, a new project would not compete with existing growers. This study considered the economics of a greenhouse installation only. Waste heat could also be captured and used in a number of other beneficial ways. Other uses for the heat could include:  wood palletizing facility (industrial drying)  absorption refrigeration  space heating for buildings 11

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