FEASIBILITY STUDY IN TURNING SCRAP PAPER INTO

CHARCOAL BRIQUETTES FOR SUSTAINABLE

COMMUNITY ENERGY PRODUCTION

A Feasibility Study
Presented to
The Faculty of the College of Business Administration
University of Eastern Pangasinan
In Partial Fulfillment
of the Requirements for the degree
BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION
MAJOR IN FINANCIAL MANAGEMENT

By
Alexis Salvador Fariñas
Avriel Punzalan Vino
Cricel Joyce Benitez Genise
Danreb Almosara Serran
Kate Alexandrie Almanzor Osalla
Kate Syrel Gorospe Peralta
Mico Rañoa De guzman
Nicole Prestoza Ocumen
Renjanlyn Agojo Galvez
Ronil Jann Fernandez Carulla

February 2026
ACKNOWLEDGMENT

ii
 CONTENTS

TITLE PAGE …………………………………………………………………….

Acknowledgment ………………………………………………………………...

Table of Contents ………………………………………………………………...

Chapter 1: Introduction

Chapter 2: Market Study

Business Product/Service

Customer

Market Competition

Marketing and Sales Strategy

Business Vision and Mission

Business Logo

iii
 LIST OF TABLES

Table No. Page

1 Swot Matrix 13

iv
 LIST OF FIGURES

Figure No. Description Pages

1 Eco-Spark Paper Charcoal Briquettes 9

2 Eco-Spark Flyers 18

3 Business Logo 19

v
 Chapter 1
INTRODUCTION
Background of the Study
In today's world, the need for alternative and sustainable energy sources has

significantly increased to environmental concerns and the depletion of conventional fuel

resources. People are always looking for ways to reduce waste while providing cheap and

environmentally sustainable energy solutions. One of the most innovative ways of

providing energy solutions is by using scrap materials to produce energy products. This not

only solves the problem of waste management but also provides a sustainable source of

fuel. By looking at ways to convert scrap paper into charcoal briquettes, people can

decrease their reliance on conventional fuel sources like coal or firewood. This scrap paper

can produce energy encourages resourcefulness and helps to instill community

participation in sustainable practices.

The escalating demand for energy across developing and rural communities has

intensified pressure on conventional energy sources, resulting in heightened fossil fuel

consumption, increased environmental pollution, and accelerated depletion of natural

resources (International Energy Agency, 2021). Households and small industries that

cannot afford modern energy technologies often depend on firewood, charcoal, or kerosene

for cooking and heating. This energy predicament not only aggravates deforestation and

carbon emissions but also perpetuates energy poverty in disadvantaged communities

(Bhattacharya & Kojima, 2022). Therefore, finding alternative community-based energy

solutions that are sustainable, affordable, and environmentally friendly has become a

significant priority for researchers and policymakers. This shift reduces deforestation and

indoor pollution while empowering rural areas with affordable, self- sufficient power.
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The process of transforming paper waste into charcoal briquettes involves several

steps, including preparation, carbonization, binding, molding, and drying (Singh et al.,

2023). During carbonization, organic material is heated in a low-oxygen environment to

produce char a combustible product with increased calorific value. When combined with

appropriate binders and subjected to compression, carbonized scrap paper can form durable

briquettes capable of sustained combustion. Preliminary laboratory studies suggest that

paper-derived briquettes can achieve acceptable combustion properties, making them

suitable for household energy needs.

From an environmental perspective, converting scrap paper into charcoal briquettes

offers clear benefits. It diverts paper waste from landfills, reduces methane emissions

associated with decomposition, and mitigates reliance on fuelwood that contributes to

deforestation (UNEP, 2022). In addition, producing briquettes can encourage local

recycling initiatives while fostering greener community practices. By encouraging the

reuse of paper waste, communities can strengthen local resource loops and reduce the

overall environmental footprint tied to energy consumption.

The literature further underscores the practical and socio-economic potential of

transforming biomass and paper waste into sustainable fuel alternatives, particularly within

the Philippine context. Research by Cabanlit and Deloria (2025) demonstrates that while a

higher concentration of waste paper improves the density and durability of sawdust

briquettes, achieving commercial-grade efficiency requires precise material ratios and

high-pressure compaction. The growing concern over deforestation and improper waste

management has led researchers to explore biomass alternatives to traditional wood

charcoal.
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According to Amante et al. (2024), paper waste represents a significant portion of

municipal solid waste that, if left untreated, contributes to greenhouse gas emissions and

landfill overflow. Their study highlights that converting this waste into "eco-charcoal"

through pyrolysis serves a dual purpose: it mitigates the environmental impact of the paper

industry and provides a renewable energy source that aligns with Sustainable Development

Goals (SDGs) for clean energy and climate action.

While existing literature confirms that paper-derived briquettes achieve acceptable

combustion properties, a critical research gap remains in evaluating the integrated

feasibility of a localized, small-scale business model relying exclusively on scrap paper.

This study addresses this gap by conducting a comprehensive five-fold analysis covering

marketing, technical, organizational, financial, and socio-economic aspects to determine if

such an enterprise can be self-sustaining while addressing local energy poverty and waste

management. Furthermore, it seeks to provide specific data on market acceptance and

financial ROI for households and small businesses currently dependent on more expensive

or environmentally damaging fuels to establish a scalable framework for sustainable

community-led green energy.

The feasibility of turning scrap paper into charcoal briquettes aligns with

contemporary sustainability goals that emphasize waste valorization, renewable energy,

and community resilience. By examining technical, economic, and social dimensions, this

study aims to determine whether such an initiative can provide a viable energy alternative

while empowering communities to manage their waste more effectively. Outcomes from

this research could offer valuable insights for policymakers, environmental advocates, and

development practitioners interested in decentralized clean energy solutions.

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Statement of the Problem

This study aims to determine the feasibility of producing and distributing Scrap

Paper into Charcoal Briquettes as a sustainable alternative energy source for the

community, while considering the five aspects of the business:

A. Marketing Aspects

1. What is the descriptions proposed business?

2. What is the logo and tagline of the proposed business?

3. Who are the competitors of the proposed business?

4. What is the survey for the business’s target market’s demand?

5. Who is the target market?

6. What is the pricing scheme to be used by the proposed business?

7. What are the marketing strategies to be formulated and implemented for the

proposed product?

8. What are the strengths, weaknesses, opportunities, and threats of the proposed

business?

9. What are the proposed business competitive strategies in the industry?

B. Technical Aspects

1. What is the exact location of the proposed business?

2. What is the production process of the proposed product?

3. What are the facilities and equipment needed for the proposed product to operate?

C. Organization and Management Aspect

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1. What kind of business entity should be used in the proposed business?

2. What is the business’s mission, vision, goals, and objectives?

3. What is the organizational structure of the business?

4. What will be the employees’ corresponding qualifications, duties and

responsibilities?

5. What is the schedule and compensation is scheme of the business?

6. What are the policies and rules to be implemented by the business owner?

D. Financial Aspect

1. How much is the needed capital to establish the business?

2. What are the possible sources of funds to be used?

3. What is the projected financial statement of the proposed business in five years?

4. What are the ROI, ROE, and payback period?

E. Socio-Economic Aspect

1. Who will benefit from this propose business?

2. What are the contribution of the propose business to society?

3. How can the business contribute to the welfare of the economy?

Scope and Delimitations

By focusing on sustainable community energy production, this study aims to

introduce a charcoal briquette business that converts scrap paper into an affordable and

eco-friendly fuel source. The main objective is to develop scrap paper briquettes as an

alternative source of energy for households and small businesses within the community.
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This study covers the marketing, technical, organizational, financial, and socio-economic

aspects of the proposed project.

As a practical solution for waste reduction and energy needs, the scope of this study

includes assessing the production process of scrap paper briquettes, their cost-

effectiveness, durability, and overall efficiency as a fuel source. It aims to determine the

viability of offering these briquettes to local households and small businesses, considering

factors such as affordability, availability of raw materials, ease of production, and potential

demand. The study also involves gathering information from local residents and small

business owners to evaluate market acceptance and support for the product.

For the initial phase, as part of the delimitation of this study, the business will

operate on a small scale and cater only to selected households and small businesses within

the community. The production process is limited to the use of scrap paper as the main raw

material and does not include other biomass materials. Furthermore, the evaluation of the

technical and financial feasibility of the project is confined to the current resources,

equipment, and market conditions available within the selected community.

Definition of Terms

The following terms are defined to provide clarity and context for the components

of this study:

Briquettes: A small, compact blocks that are made from materials such as coal, wood, or

charcoal that can easily ignite and create heat.

Charcoal Briquettes: are a type of briquette that have characteristics similar to those of

charcoal and can be used to produce heat for cooking or for other purposes.
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Scrap Paper: Refers to any paper that is no longer of use, including newspapers, notepads,

boxes and office paper.

Sustainable Energy: An energy that can generate power for long periods of time without

causing damage to the earth or being depleted.

Marketing Aspect: The marketing aspect looks at the potential for selling and promoting

paper charcoal briquettes within the community. It examines who might buy paper charcoal

briquettes, how much they would be willing to spend on them, and how to suggest or

encourage their use as an alternative fuel. For example, this section of the business plan

might also include promotion and distribution strategies to ensure that they reach the final

customer.

Technical Aspects: The technical aspects include examining the processes, tools,

machinery, and skills needed to create quality briquettes from the recycled scrap paper. It

also looks at whether enough raw materials will be available for producing good-quality

briquettes and considers whether the production process will be safe and efficient.

Organization and Management Aspect: This part explains how the project or business

will be managed. It explains who is in charge, how responsibilities are shared, and how

decisions are made. Good organization ensures that the team is working together towards

the same goals in the project.

Financial Aspect: In this part, we look at the cost of implementing the project. It involves

the cost of materials, equipment, and human resources, among other expenses. It also

considers the revenue and profit that the project will generate to ensure that it is self-

sustaining.
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Socio-Economic Aspect: This part examines the effect of the project on society. It

examines how the project will reduce waste, create employment, offer cheap energy, and

develop the community in a sustainable way through the production of briquettes from

scrap paper.
 Chapter 2

MARKET STUDY

This chapter introduces the market analysis, which will assess the demand,

potential, and feasibility of the proposed business in the target market. The customers,

competitors, and marketing strategies that will help the proposed business establish its

market presence are also discussed. In addition, the vision, mission, and logo of the

proposed business are also introduced.

Business Product/Services

Figure 1. Eco-Spark Paper Charcoal Briquettes

Eco-Spark Paper Charcoal Briquettes are environmentally-friendly, innovative fuel

products made from used paper products collected as scrap from schools, offices, and

homes. Rather than throwing the spent paper in the trash to be disposed of in landfills or

burned in an open fire, they will be processed and made into charcoal briquettes. By

changing waste from something to be thrown away into a valuable product, EcoSpark

Paper Charcoal Briquettes will help to protect the environment and provide the community

with an efficient energy source.

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The briquettes come in all sub-zero or above temperatures around the world and

will burn for many hours before needing to be replaced. They are perfect for heating your

home or your office, as well as for cooking meals. To make these briquettes, we take used

paper products (newspaper, cardboard, etc.), shred them, soak them in water, compress

them using durable molds, dry them very well, and then heat (carbonize) them at a very

high temperature. In this way, we can produce very high-quality charcoal briquettes that

will burn very clean and very long.

While Eco-Spark Charcoal Briquettes are not intended to totally replace traditional

charcoal, they do provide an economical and environmentally responsible way to cook,

grill, boil water, and heat small amounts of space. Eco-Spark Briquette packages are

available in different sizes, such as 1 and 2 kg bags, to meet the needs of consumers,

restaurants, and retailers. Eco-Spark Briquettes can be sold through local retail outlets, as

well as promoted by local residents and businesses via social networks and other online

channels, so that more people have access to and can learn about them.

By utilizing Eco-Spark Paper Charcoal Briquettes, we can repurpose paper waste

from schools and offices to reduce deforestation and support responsible waste

management. This innovation provides low-cost fuel for low-income households while

creating local job opportunities through small business development. Furthermore, these

briquettes offer a clean alternative to open burning, significantly reducing air pollution.

Eco-Spark is a sustainable, locally produced solution that balances economic growth with

environmental conservation.
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Customer

The target customers of this study here in Pangasinan includes the low- and middle-

income households, small grocers, grill vendors, restaurants, and sari-sari shop owners who

rely on charcoal for their daily cooking and small-scale operations. A bunch of households

in both urban and rural areas is looking for affordable and environmentally friendly fuel

alternatives due to the high cost of conventional coal and LPG. Plus, local institutions such

as public schools, small restaurants, and community organizations that run nutrition

programs or outdoor cooking activities can also benefit from the cheaper and sustainable

fuel source. Environmentally conscious consumers and youth-led organizations in

Pangasinan who support waste reduction and renewable energy initiatives are also potential

buyers. Overall, the proposed product aims to cater practical, budget-conscious and

sustainability-conscious customers within the range.

Market Competition

Many charcoal briquette manufacturers are producing their products from

renewable resources such as wood & coconut shell or wood sawdust. These briquettes have

become very popular due to their low cost and easy to use therefore, many people use these

types of fuel for cooking and heating purposes. Increasingly larger numbers of

manufacturers are now contributing to deforestation and environmental degradation by

relying on these natural resources. Due to the increasing number of manufacturers entering

the market, new products need to offer some clear advantages to stand out.

Converting scrap paper into charcoals can create an entirely new product line for

manufacturers to consider while competing in this rapidly evolving marketplace.

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Briquettes created from scrap paper are made from recycled materials that typically end up

in landfills, thus helping reduce pollution and the amount of waste that must be disposed

of by creating new products from waste. Even though these briquettes compete with

existing charcoals made through the same process, they have an opportunity to stand out if

marketed as inexpensive, eco-friendly, and locally made products. Converting scrap paper

into charcoals could offer communities a cleaner and more sustainable source of energy.

Project and Market Focus

The project provides compressed paper briquettes made from scrap paper collected

in the community. The compressed paper briquettes are designed as an economical and

eco-friendly alternative fuel source for cooking and small businesses. The product will be

packaged in various sizes to suit the needs of different consumers, from small-scale

businesses to street food vendors.

The main target market includes households, small restaurants, and community-

based businesses looking for economical fuel alternatives. The product will be distributed

through local sari-sari stores and markets to ensure easy access. Once the production

capacity is expanded, the business can also cater to other communities while ensuring

quality and prices.

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SWOT Analysis

Table 1

Swot Matrix

Strengths Weaknesses
• Low production cost • Limited raw material supply
• Eco-Friendly branding • Weather dependency
• Easy to store and to handle • Production constraints
• Easy production
Opportunities Threats

• Waste reduction and environmental • Competition from traditional fuels

benefits • Seasonal weather conditions
• Reduce dependence on wood • Market acceptance risks
charcoal • Supply chain vulnerability
• Environmental awareness and
sustainability trends
• Market expansion potential
• Rising waste management control

Strengths

Low production cost: Low Production Cost: Makes use of waste materials,

particularly scrap paper and charcoal dust, which are often readily available for free. This

not only reduces expenses but also promotes recycling and sustainability in production.

Eco-Friendly Branding: Provides great appeal to eco-friendly consumers by

reducing deforestation and keeping paper waste out of landfills. This strengthens the

brand’s reputation as socially responsible and aligned with sustainable values.

Easy to store and handle: Instead of wood scraps or bulky firewood, It can be

molded into different shapes that are easy to stack, transport, and sell.
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Easy Production: The production doesn’t need fancy machinery to get started. Just

a simple manual press or even a hand molding will work.

Weaknesses

Limited Raw Material Supply: The availability of scrap paper may not always be

consistent. If offices, schools, or households reduce paper usage, the supply of raw

materials could decrease, affecting production.

Weather Dependency: Drying briquettes often depends on sunlight. During rainy

seasons production may slow down, affecting supply.

Production constraints: Production is hindered by labor-intensive manual

processes and a heavy dependence on dry weather for curing. Without industrial machinery,

scaling up is difficult, and rainy seasons create significant bottlenecks by extending drying

times and increasing the risk of mold or product degradation.

Opportunities

Waste reduction and environmental benefits: Turning scrap paper into charcoal

briquettes helps reduce the volume of solid waste in communities. Instead of disposing

paper in landfills or burning it openly, it is recycled into a useful energy product. This

process supports proper waste management, decreases environmental pollution, and

promotes sustainable practices.

Reduce dependence on wood charcoal: Using paper briquettes as fuel lessens the

reliance on charcoal made from wood. As a substitute energy source, it helps reduce tree
 15

cutting and protects forest resources. This also plays a role in lowering greenhouse gas

emissions and promoting sustainable energy use.

Environmental awareness and sustainability trends: Increasing environmental

awareness encourages people to support eco-friendly and recycled fuel alternatives like

scrap paper briquettes.

Market Expansion Potential: The product can be sold to households, food

vendors, and rural communities, allowing business growth and wider distribution.

Rising Waste Management Concerns: Growing waste problems create an

opportunity to turn scrap paper into useful energy while helping reduce environmental

pollution.

Threats

Competition from traditional fuels: Charcoal and firewood are already common

fuels that are widely used and accepted by many consumers. Because of the familiarity of

these traditional fuels, consumers may be reluctant to adopt the use of paper briquettes.

The strong preference for traditional alternatives may slow down the adoption rate of

customers.

Seasonal weather conditions: The production of paper briquettes relies on

complete drying, and too much rain can disrupt this process. Excessive moisture in the

environment will slow down the production process and result in a lower-quality product.

Unpredictable weather can affect the smooth flow of the finished briquettes.
 16

Market acceptance risks: Consumers might wonder about the strength and heat

value of briquettes made from scrap paper. Without sufficient demonstration and

information, they might be reluctant to accept this new fuel option. Building trust would

require consistent performance of the product and educating the community.

Supply chain vulnerability: As offices and schools shift toward paperless systems,

the long-term supply of scrap paper may decline. At the same time, recycling plants and

other industries could compete for the same raw material, raising costs and limiting

availability.

Marketing and Sales Strategy

Pricing

The price will be affordable to customers, while generating a consistent profit from

each sale. Scrap paper is an inexpensive material; The cost of producing this type of product

should be low. The cost will be priced either slightly below or at the same price as

traditional charcoal to ease the transition from traditional charcoal to our product. There

will be multiple packaging sizes available to meet varying budgets allowing both small

households and larger businesses to purchase according to their needs.

A flexible price strategy may also be implemented. Consistent orders from regular

customers and bulk purchases will be rewarded with a small discount. A lower initial price

may be offered to attract initial trial users of the product and generate interest during the

introduction phase of the product. As the market develops trust and stable demand for the

product, pricing adjustments can be made carefully to maintain both competitiveness and

business sustainability.
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Promotion

The marketing approach will center on increasing public knowledge about the

advantages of scrap paper briquettes and also about how these new products can be

beneficial to the environment.

Posters with simple messages and Informational boards will be created and posted in

highly visible locations to highlight some of the benefits of using Scrap paper briquettes

such as They Burn eternally, produce little to no smoke and create less waste than

conventional Charcoal.

Use of social media to share short video clips from customers; customer feedback;

and announcements of promotions will allow us to reach more consumers at no cost. In

addition, we will use referral marketing by asking our happy customers to tell their friends

and neighbors about our product. To generate interest and encourage repeated business we

will offer several distinct promotions for new and repeat customers such as free sample

packs, time sensitive discounts, and rewards for repeat customers.

Printed advertisements (flyers, posters) will be used to promote the product and its

price and detailed instructions on how to use it through circulation to sari-sari stores in the

area. Printed advertisements will also reach the public through local markets and places. In

addition, we will utilize social networking sites to connect with the community at large.

Increasing the community awareness and creating demand for the briquettes is the main

goal of this project.

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Figure 2. Eco-Spark Flyers

Business Vision and Mission

Vision Statement

To make Eco-Spark a reliable source of environmentally sustainable charcoal

briquettes produced from recycled paper, as part of clean energy projects and

environmental conservation. To redefine waste as a resource by creating a future where

every piece of scrap paper contributes to a greener tomorrow.

Mission Statement

Eco-Spark is dedicated to recycling paper waste into affordable and effective

charcoal briquettes. This organization aims to create a society where waste is turned into

precious and long-lasting fuel sources. We are determined to ensure that waste is managed

properly while providing effective energy solutions.

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Business Logo

Figure 3. Business Logo

The logo Eco-Spark symbolizes sustainability, innovation, and environmental

stewardship. The logo is a visual representation of how paper waste is transformed into

Eco-friendly charcoal briquettes. The dark and textured formation of the briquettes

represents the natural and long-lasting fire of the charcoal briquettes. At the top corner of

the logo the green recycling symbol reinforces the brand’s commitment to environmental

sustainability and the principles of the circular economy. The symbol is a clear

representation of the fact that the charcoal briquettes are produced from recycled paper

waste from schools and home. The orange red flame symbol in the logo represents energy

and warmth. The logo features a pyramid of charcoal briquettes. The organized formation

of the briquettes symbolizes strength, dependability, and the final product of the recycling

process. The symbol represents the purpose of the charcoal briquettes, which is to provide

clean and efficient fuel. The dynamic formation of the flame symbolizes transformation,

which symbolizes the conversion of waste paper into valuable energy. The brand name,

Eco-Spark, is inscribed in a soft and elegant script font, which symbolizes a balance
 20

between environmental friendliness and innovation. The tagline, “Turning paper waste to

charcoal briquettes,” clearly explains the mission and purpose of the product.
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References

Amante, F. (2024). The impact of paper waste on sustainable charcoal production. Scribd.

[Link]

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Bhattacharya, S., & Kojima, M. (2022). Energy access and sustainability in developing

communities. https;//[Link]/Energy-Access-and-Sustainability-in-

Developing-Communities

Cabanlit, D. N. C., & Deloria, I. B. (2025). Eco Bar-Briq-Ues: Development of sustainable

briquette from sawdust and paper waste. International Journal of Multidisciplinary

Research and Publications (IJMRAP), 7(11), 97–101. [Link]

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International Energy Agency. (2021). World energy outlook 2021.

[Link]

Singh, A., Patel, P., & Rajput, A. (2023). Paper waste conversion into briquettes for

household fuel applications. Journal of Cleaner Production, 384, 135–412.

[Link]

United Nations Environment Programme. (2022). Global environmental outlook report

2022: Healthy planet, healthy people. [Link]

environment-outlook-6