Analysis of the feasibility of small-biomass power generation from the palm oil mill – study case: palm oil mill in Riau-Indonesia

Abstract

Solid waste from a palm oil plant in Indonesia is a tremendous potential for power generation, especially on Riau-Sumatra. The potential of electrical energy that can generate is determined by measuring or calculating the calorific value and amount of solid waste palm oil available. To be burned in the boiler continuously and more efficiently, the solid waste water content of palm oil must reduce to no more than 30%. The conservative substantial waste palm oil calorific value (HHV) is 3,500 kcal/kg. As a result, the mass and power plant balance are capable of producing a gross power of 4.6 MW using 80% efficient fluidised bed boilers and a steam turbine capacity of 5 MW with an isentropic efficiency of 85% with assumption percentages combination fibre: 30 % shell: 70 % fibre. The environmental impacts of power generation from empty fruit bunch (EFB) based on steam turbine generator technology evaluated. The results revealed that EFB utilisation for power generation is environmental friendly than fossil fuel power plants regarding global warming potential and acidification potential with GWP are 89.5 kg CO2 eq per MWh, and 0.515 kg SO2 eq per MWh. Also, the financial analysis of the Biomass Power Plant with a lifetime duration of 25 years, which the project is feasible to implement because IRR is 22.70%, higher than Weighted Average Cost of Capital (WACC) which amounted to 15.61%.