Cost-Benefit Analysis of Palm Mill Oil Effluent Becomes Bio-CNG as HSD Fuel Substitution in West Kalimantan Province

Abstract

Indonesia is the largest palm oil producer in the world and West Kalimantan Province is the second largest province in the palm oil industry with an area of 1.8 million hectares of plantation land. In palm oil processing at the plant, several types of waste are produced. One of them is liquid waste called Palm Mill Oil Effluent (POME). POME can be used as biogas with an Anaerobic Biological process. Biogas that has been purified and packaged in high pressure tubes is called Bio-CNG. Methane gas levels in Bio-CNG are 96-98% and CO² gas is 2-3%. The province of West Kalimantan has limited electricity infrastructure, so it relies a lot on diesel power plants (PLTD) to generate electricity. The installed capacity of PLN UIW West Kalimantan in 2019 is 211,713 KW with a PLTD capacity of 125,768 KW or 59% of the total installed capacity. The use of fossil energy sources cannot be sustained because Indonesia's oil production continues to decline and imports of fuel continue to increase. Therefore, this study aims to analyze the costs and benefits of POME into Bio-CNG as a substitute for HSD fuel in PLTD with the CBA (Cost Benefit Analysis) method. The result shows that the potential of POME energy into Bio-CNG in West Kalimantan Province meets the needs of PLTD PLN UIW West Kalimantan as a substitute for HSD fuel. In addition, based on the cost and benefit analysis that has been carried out on the Bio-CNG project obtained a greater value of benefits than the cost, so that the utilization of POME into Bio-CNG as a substitute for HSD fuel in PLTD is feasible to run.