Feasibility Analysis of Compact-Mobile Biomass Pallet Technology as Renewable Fuel for Small and Medium Industries

Abstract

Wood or biomass pallets as renewable energy are possible to use like B20 to meet small and medium industries (SMEs). This research aims to analyze the feasibility of the compact-mobile wooden pallet biomass production to meet the needs of a case study on Food SMEs. Specifically analyzed aspects of raw materials and supply chains, market and marketing, compact-mobile pallet technology, and financial feasibility. The data collected consists of primary and secondary data. Primary data is obtained through expert interviews related to recommendations, while secondary data is compiled from relevant company report results, production and consumption data, investment data, and operational costs. The compact-mobile wood pallet supply chain starts from raw materials, processing, transportation, and end-use. The compact-mobile wood pallet industry is designed to have 5 tons/hour with a defect rate of 5%. The capital cost requirement is projected to be IDR 30 billion. The BEP is at a minimum capacity of 2.82 tons of compact-mobile wood pellet per hour. Financially, the compact-mobile pallet industry deserves a WACC of 10.95%, NPV value of IDR 28.94 billion, IRR 21.82%, and 6-year PBP. The simulation results from the pallet's selling price at least IDR 1,038,145 per ton but the PBP increased to 11 years. The development of a wood pellet industry is related to the efforts of diversification and saving the use of fossil energy fuels; therefore, the form of infrastructure that must be prepared is not only physical needs.