Analysis of potential and feasibility of riogas energy from palm oil mill effluent in penajam paser utara regency

Abstract

This paper would present a techno-economic potential and feasibility analysis in the planning of renewable biogas energy from palm oil mills effluent (POME) in PenajamPaser Utara Regency. The analysis was done based on the last three-year production data history of 7 (seven) palm oil processing factories in the region. The total fresh fruit bunches processed were about 891.624 tons/year, and the POME produced was 553.677 tons/year. The total potential electricity generated from POME reached 43.248.101 kWh/year. The factories took place in Babulu, Waru, Penajam, and Sepaku. The assessment of sustainability indicators in this research took into account the technology and economic aspects. The technology helps evaluate the technical planning of installations that are possible to build in the area. The economic aspect of sustainability evaluates the net present value (NPV), internal rate of return (IRR), and the payback period of renewable energy installation. This analysis aimed to get a comprehensive insight from the potential biomass energy that exists at the research locations and conduct a feasibility study based on techno-economic analysis to develop renewable energy. The results showed that Sepaku had the most significant potential of biogas by producing 1.752 Nm3/hour of biogas and generating 3.28 MW continuous power with a feed-in tariff of IDR1.065,462 IDR/kWh. The electricity was feasible to offer to the government electrical company. Moreover, this project had a payback period of 7.51 years and an IRR Project of 12.90% for private investors.