Economic analysis of biogas production from pineapple waste as alternative source of energy in a pineapple processing plant, case of Del Monte Kenya Limited

Abstract

<p>This paper evaluates the economic aspect of utilizing biogas from pineapple waste as a source of energy in a pineapple processing plant, case of Del Monte Kenya Limited (DMKL). Del Monte Kenya Limited, a known exporter of canned pineapple, lies on approximately 10,000 acres of pineapple plantation. The company’s processing capacity of 100,000 tons of pineapple yearly produces approximately 23,000 tons of pineapple waste per year. Currently these wastes are sold to local farmers as animal feed at $20 per ton. A study was conducted at Jomo Kenyatta University of Agriculture and Technology (JKUAT) that revealed that a ton of pineapple waste has the potential to generate 7.41 m<sup>3</sup>/day of biogas. Cost comparative analysis was conducted between employing anaerobic digester to treat pineapple wastes to generate biogas for usage within the plant and selling the waste to locals for feeding the livestock. The results revealed that it is more economical to use wastes to generate biogas as an alternative source of energy in the processing lines. The net present value (<em>NPV</em>) of $1,939,019 internal rate of return (<em>IRR</em>) of 16% and payback period of 4 years was estimated. The positive value of <em>NPV</em> shows that the project is viable.</p>