Study on Revitalization of a Small-Scale Biodiesel Plant with 6 tpd Capacity in Kotabaru, South Kalimantan

Abstract

<p>The aim of this study was to find a solution on revitalization of the biodiesel plant of 6 tons/day capacity in Serongga, Klumpang Hilir Sub-district, Kotabaru District at Province of South Kalimantan that managed by the Local Government of Kotabaru. Based on the surveys, the biodiesel plant has not worked properly for 3 years since the last commissioning. The reasons for the biodiesel plant not operating were caused by technical, management and economic problems. This paper studied the technical problem, calculation of the estimation cost for repair, replacement and installation of equipments and instruments, analysis of Strength, Weakness, Opportunity and Treat (SWOT), and analysis of economic feasibility in the operation of biodiesel plant. Based on the SWOT Analysis, it was found that the operation of biodiesel plant was strongly influenced by the security of supply and price of raw material, local government efforts to penetrate the market, and increased added-value of by-product. To increase the economic value of the plant in the future, a review on the economic and sensitivity analysis of several options was conducted. The available solutions were to revitalize the plant and operate the plant at the existing location (Scenario 0), to integrate biodiesel plant into a nearby palm oil mill (Scenario 1) and to move the plant at the mining site (Scenario 2). Economic calculation analysis results that integrating biodiesel plant with palm oil mill nearby was the best option (Scenario 1). Based on sensitivity analysis of Scenario 1, financial margin was strongly influenced by the CPO, methanol and biodiesel prices</p><p><strong>Keywords:</strong> Biodiesel Plant, Revitalization, SWOT, Economic Analysis, Integration <br /><br /></p>