Financial Feasibility and CO2 Emission Reduction Assessment of a Bio-based Packaging Business from Rice Straw

Thailand is facing a significant accumulation of agricultural waste, particularly from major crops such as rice, cassava, and sugarcane. This study aims to assess the feasibility of establishing a rice straw processing business to produce bio-based packaging. Rice straw, a byproduct of rice milling, contains 35–45% cellulose, which can be extracted and converted into polylactic acid (PLA) bioplastic. PLA is biodegradable and serves as an environmentally friendly alternative to petroleum-based plastics. The research is conducted under the circular economy concept, encompassing financial, environmental, and managerial assessments. The results indicate that the business demonstrates strong economic potential. Under the optimal scenario—with 100% production capacity utilization, full sales achievement, and a real interest rate—the project is expected to generate approximately 52 million baht in profit over ten years. It offers a high internal rate of return and a payback period of 1.2 years. Environmentally, the project utilizes 3,840 kilograms of rice straw per year as raw material, reducing greenhouse gas emissions by 65% and particulate emissions from open burning by 89%, equivalent to a reduction of 5,952 kilograms of carbon dioxide annually. Moreover, it can generate 50–100 local pilot-level employment opportunities, demonstrating the project’s potential to become a sustainable business while generating positive social and environmental impacts within surrounding communities.