Energy Return on Investment

June 14, 2023

The EROI calculation typically involves dividing the energy output by the energy input. The energy output represents the usable energy generated, such as electricity, heat, or fuel, while the energy input encompasses the energy expended in various stages of production, including extraction, refining, transportation, and infrastructure development.

A higher EROI indicates that the energy source or process provides a more favorable energy return compared to the energy investment required. It implies that more energy is available for society's use, and the energy source or process is considered more efficient and sustainable. Conversely, a lower EROI suggests that the energy investment is relatively higher compared to the energy output, potentially making the source or process less economically or energetically viable.

EROI analysis helps in evaluating different energy options, comparing the efficiency and sustainability of various energy sources, and informing decisions related to energy policy, resource allocation, and investment in energy projects.

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