Feasibility Of Investment Research Articles

Sensitivity Analysis of North Surabaya Hospital Investment Feasibility

The aim of this research is to analyze the feasibility of investing in North Surabaya Hospital, Bulak District, Surabaya City with the parameters Net Present Value, Internal Rate of Return, Benefit Cost Ratio (BCR) and Payback Period. This research focuses on the North Surabaya Hospital which was built by the Surabaya City Government Health Service with a budget for 2026. The research instruments used were interview guidelines and observation sheets, with data collection procedures via location with related parties in the construction of the hospital, site observation, as well as documentation that includes primary and secondary data. Based on investment analysis of North Surabaya Hospital and evaluation of sensitivity to operational costs and potential income, the conclusion obtained is: Alternative 1 is feasible because it produces an NPV value of Rp. 211,014,227,005, IRR of 9.85%, BCR of 1.23 and PP of 7.69 years, but will be sensitive to the point that it is not feasible if there is an increase in hospital operational costs above 2.05% or a decrease in hospital service levy rates above 1.39% . Alternative 2 is not feasible because it produces an NPV value of Rp. 28,416,192,984, IRR of 6.57%, BCR of 1.14 and PP of 8.34 years, but it will be sensitive and feasible if there is a decrease in hospital operational costs above 7.73% or an increase in hospital service levy rates above 5.59%. Alternative 3 is not feasible because it produces an NPV value of Rp. 66,444,241,124, IRR of 7.30%, BCR of 1.16 and PP of 8.20 years, but it will be sensitive and feasible if there is a decrease in hospital operational costs above 5.7% or an increase in hospital service levy rates above 4.08%. Alternative 4 is feasible because it produces an NPV value of Rp. 166,294,504,181, IRR of 9.26%, BCR of 1.20 and PP of 7.70 years, but it will be sensitive to the point of being unfeasible if there is an increase in hospital operational costs above 0.15% or a decrease in hospital service levy rates above 0.10%.

Analysis of the Sensitivity Level of Investment in the Development of Regional Public Hospitals (RSUD) Bhakti Dharma Husada Surabaya City on the Components of Revenue Costs, Management Costs and Interest Rates

Since its first operation in 2010, Bhakti Dharma Husada Regional Public Hospital (RSUD) has experienced an increase in patient demand for health services. Some services now require additional space. Moreover, there is a growing need for executive and VIP services. To address these needs, Bhakti Dharma Husada Regional Public Hospital is planning to enhance its services by constructing a new building. Based on the results of investment analysis obtained Net Present Value (NPV) of Rp. 1,373,606,103,022, Payback Period (PP) for 6.89 years, Internal Rate of Return (IRR) value of 17.39% is greater than the Minimum Attractive Rate of Return (MARR) value of 9.21% (IRR> MARR), Benefit Cost Ration (BCR) of 1.28, then the investment is declared feasible. In addition, based on the results of the sensitivity analysis, the investment feasibility limit is obtained, namely the development of the hospital becomes unfeasible if the service tariff is reduced by 15% or the operating costs are increased by 15% or the interest rate is increased by 13%.

Risk analysis and investment feasibility for green retrofits in high-rise office buildings using the life cycle cost method

Greenhouse gases (GHGs) have caused extreme temperature changes. In January 2023, temperatures were 0.1°C higher than the normal 30-year monthly average. Construction, especially high-rise offices, which occupy 42% of Jakarta, contributes significantly through energy con-Sumption. To reduce carbon emissions, Indonesia has started to implement green retrofits as part of the Net Zero Emission 2050. Due to high costs and lack of public education on new and existing green buildings, the implementation of green retrofits is inhibited, and owners prefer conventional buildings. This research aims to analyze the feasibility and investment risk of implementing green retrofits in high-rise office buildings using the life cycle cost method and the Minister of Public Works and Public Housing Regulation No. 21 of 2021 to generate a feasible and safe in-vestment. It has been proven with cost savings in energy and water consumption of up to 15% compared to conventional office buildings. Profits have also been achieved by providing 9 benefits to the building owner, building manager and building occupants. Therefore, this research has the potential to accelerate the green revolution through feasible and safe green retrofit investments in Jakarta's office buildings.

Investment Feasibility Study with the Capital Budgeting Method for the Construction Project of Facilities for Overnight Parking Services at APT Pranoto Airport in Samarinda City, East Kalimantan

The rapid development of transportation infrastructure has significantly increased the demand for vehicle parking facilities, particularly at strategic locations such as APT Pranoto Airport in Samarinda, East Kalimantan. This study evaluates the investment feasibility of constructing an overnight parking facility at the airport. Using a qualitative descriptive approach, financial analysis methods—including Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI)—were applied. Primary data were collected through interviews with project managers and airport officials. The findings indicate that the current parking facilities are insufficient to meet demand, especially during peak seasons. Financial feasibility tests confirmed the project’s viability, with positive NPV values, an IRR surpassing the required rate of return, a PI exceeding 1, and a short payback period. These results demonstrate the project’s potential profitability and its ability to enhance service quality. Consequently, this investment is recommended as a sustainable initiative to support the airport’s increasing transportation needs and promote operational efficiency.

Metrology and economics: on the choice of the best options for the development of metrology systems by the criterion of minimum necessary costs – a review

A general approach to substantiating the best ways to develop national metrology systems based on minimizing the financial investments needed is formulated. The methods that have been developed at the NSC “Institute of Metrology” for estimating the effectiveness of investments for different possible options of functionality of metrological infrastructure elements related to certain types of measurements are analysed. In particular, the following options have been considered: a state primary (national) measurement standard of a unit that has passed international comparisons; there is no primary measurement standard yet, but it is being developed; there is no primary measurement standard yet and it is not being developed; a calibrated abroad secondary measurement standard used as a reference standard in the absence of a primary one. The paper presents mathematical algorithms for analysing the economic feasibility of investments, which allow choosing the least costly solutions. An approach to calculating the payback period of the investments that takes into account inflationary processes is proposed. Examples of application of the developed algorithms to analyse the economic feasibility to establish measurement standards, specifically, state primary measurement standards of the unit of volume activity of radon-222 and luminous intensity, are given. The algorithms presented in the paper for selecting the best options for the development of metrology system and increasing the efficiency of investments in metrology are especially relevant for countries with limited financial resources.

Investment Feasibility Analysis of LPG Bulk Filling Station (SPBE): Improving LPG Distribution in The City of Sorong

LPG Bulk Filling Station ("SPBE") is a facility for bottling LPG (Liquefied Petroleum Gas) gas into 3 Kg, 5 Kg, 12 Kg or 50 Kg cylinders with the LPG brand. SPBE is an important facility in the LPG distribution network in Indonesia. The purpose of this study is to identify the potential LPG market in Sorong and its surroundings and conduct a feasibility study on the construction of SPBE facilities in the Sorong SEZ. The methods used are quantitative and qualitative using secondary data using a market sizing approach to identify LPG market potential using data from the Directorate General of Oil and Gas of the Ministry of Energy and Mineral Resources and data from the Central Statistics Agency (BPS). Furthermore, a financial feasibility formulation was made to determine the business feasibility of SPBE infrastructure development and sensitivity analysis using the Monte Carlo approach for 10,501 iterations. And the study ended with a risk analysis using a risk register to map possible risks and how to deal with and handle them. The results of the study show that the development of SPBE infrastructure in the Sorong SEZ is feasible to be built with feasibility indicators in the form of IRR (Internal Rate of Return) of 12.79%; NPV (Net Present Value) of IDR 2,479,320,100; PI (Profitability Index) of 1.18; and DPP (Discounted Payback Period) for 12.34 years with a record average total LPG consumption of 9.81 tons/day in Sorong in a realistic scenario. Meanwhile, in an optimistic scenario with an average total LPG consumption of 11.07 tons/day, the feasibility indicator is an IRR of 14.995; NPV of IDR 4,726,461,323; PI from 1.34; and DPP for 10.48 years. The construction of SPBE infrastructure requires a cost of IDR 11,189,458,937 with a compact type of SPBE infrastructure with a land area of 60 m x 40 m or an area of 2,400 m2

Decision support system for determining capital investment value in biodiesel production using the net present value method

Biodiesel is a renewable alternative that is a biofuel for diesel engine/motor applications. It is a fatty acid methyl ester (FAME) that is produced from vegetable oil or animal fat and can be renewed. The esterification/ transesterification process results in low CO2/CO2 emissions. Indonesia's energy consumption has increased by 7% annually in recent years, while the global energy consumption has only increased by 2% annually. This condition accelerates the rate of exploitation of fossil resources, including oil, natural gas, and coal, in comparison to the discovery of new reserves (replace reserves ratio). Economic calculations are conducted during the pre-design phase of a biodiesel chemical plant to ascertain the viability of investing in a biodiesel plant. The feasibility of capital investment in a factory production activity is estimated through the use of economic analysis, which involves the evaluation of capital requirements, predicted profits, payback period, taxes imposed, and break-even point. Furthermore, economic analysis is also used to ascertain the profitability of a factory that has been designed. The net present value (NPV) method is employed to develop a decision support system that simplifies the investment calculation process. In the present era of globalization, a company or investor must act promptly to make decisions and take action. The Net Present Value (NPV) method is used to assist in decision-making. The NPV method is a decision-making process that evaluates the feasibility of whether an investment is worthwhile. The value of an asset is determined by the initial purchase price and the time value of money, which are combined to calculate Net Present Value. The investment value of the SPK that has been designed is determined using the NVP procedure.

Investment Feasibility Analysis of Rooftop Solar Power Plant for Spare Parts Supply Company

- A sustainable economic approach involves economic growth while preserving the environment. One solution that includes a green economy program that has received attention is the Solar Power Plant (PLTS), which utilizes sunlight as the main energy source to generate electricity. Increasing energy demand and concern for the environment, a spare parts supply company in Karawang, West Java, decided to do hybrid energy in the form of investment in renewable energy sources in the form of Solar Power Plant (PLTS) with an on-grid system installed on the roof of the factory. This study aims to evaluate the financial feasibility of the development of green economic efforts. The analysis includes various aspects, such as initial investment costs, operational costs, maintenance costs of the main plant materials (solar modules and inverters), potential savings in electricity costs, and projected return on investment within a certain period. The financial analysis methods used in this study include Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (DPP), and Profitability Index (PI) to assess the economic feasibility of the project. The results show that the DPP value is 2.43 years (less than 25 years), NPV is Rp 1,433,144,387.92 (greater than 1), IRR is 46.31% (greater than 5.75%), and PI is 1.95 (greater than 1). Based on these results, it can be concluded that the construction of a rooftop solar power plant with an on-grid system is a financially viable investment for a spare parts supply company in Karawang, West Java.

Water productivity and economic feasibility of drip irrigation system investment in tomato cultivation: Case of northeastern Tunisia

AbstractTunisia is characterized by water scarcity, growing water demand and considerable waste of this resource especially in the agricultural sector. To cope with this situation and enhance water productivity, appropriate utilization of advanced irrigation methods such as drip irrigation is highly needed. Hence, this research aims to evaluate the profitability of drip irrigation systems compared with surface irrigation systems at the perimeter of Echraf, which is located in the northeastern of Tunisia. Primary data were collected from 25 adopters of the Drip Irrigation System and 13 non‐adopters. The results of the partial budget analysis revealed that the average total cost for adopters was higher than that for non‐adopters. However, the net margin was higher for adopters than for non‐adopters. This is due to the greater increase in gross revenue for adopters than for non‐adopters. Additionally, drip irrigation resulted in more efficient water use and water values than did the surface irrigation system. Economic profitability analysis via the benefit cost ratio and net present value tools revealed that the drip irrigation system is profitable. The benefit cost ratio is equal to 1.65, and the net present value is approximately 2938 Tunisian National Dinar. Finally, the sensitivity analysis reveals the extent to which profitability is sensitive to the scenarios of subsidy levels.

Strategic Financial Planning Analysis to Deliver Sustainable Profits

The evolution of consumer behavior in Indonesia, along with technological advancements, has led to a growing demand for personal shopping services, particularly in major cities. The digital application TITIP provides a digital platform solution that makes it easy for users to obtain necessary items without having to travel to get the needed goods. With a comprehensive investment analysis of market conditions and competitors, TITIP can determine financial planning strategies that can enhance market development growth, increase brand awareness, and implement digital marketing to strengthen TITIP's position in the digital consignment service industry. This research uses qualitative descriptive methods and data analysis on financial planning, which includes a framework of short-term, medium-term, and long-term financial goals; revenue and cost management strategies; and five-year financial projections. The results of the business feasibility analysis show strong growth potential and significant opportunities for the TITIP application to become the leading consignment service platform in Indonesia. Financial planning using investment feasibility analysis calculations such as Net Present Value (NPV), Payback Period (PP), and Internal Rate of Return (IRR), this study assesses TITIP's ability to optimize investments and achieve maximum profit growth. The results show that TITIP has a strong financial base, enabling operational efficiency and creating sustainable growth.

Bioeconomic modeling of on-growing Caribbean spiny lobster in Florida

The Caribbean spiny lobster fishery in Florida has recently shifted from supplying frozen tails in the domestic market to a higher value live export market, primarily in China. The fishery's seasonal landing pattern limits supply during periods of high demand and high price, resulting in lost revenue. In addition, about 25 % of lobster landings are unsuitable for the live export market. Of these lobsters, approximately 50 % are molting, and short-term live storage could make them viable for live export after molting is complete. We developed a bioeconomic model to examine the economic feasibility of on-growing wild-caught lobsters for sale later in the season when demand and price are higher. We also used the model to examine the feasibility and profitability of short-term aquaculture-based storage of molting lobsters for later sale in the live export market. The results suggest evidence of investment feasibility. Annual net returns and net present value to perpetuity were positive in all scenarios, but net returns were 359–1055 % higher in short-term storage of molting lobsters. Net present values to perpetuity ranged from $898,744 to $5,106,181. Cost of production ($/kg) ranged from $21.29 to $29.07, with the lowest cost for short-term storage of molting lobsters; however, this was also the most capital-intensive scenario, with costs more than five times that of the other scenarios. Risk analysis showed variations in stocking density, sale price, and survival of spiny lobsters were the major contributors to economic risk in longer-term on-growing scenarios, whereas sale price and input price were the major contributors in short-term storage of lobsters.

The role of agriculture for achieving renewable energy-centered sustainable development objectives in rural Africa

Multi-dimensional and overlapping barriers to wellbeing severely affect many areas in rural sub-Saharan Africa. In the region, more than 90% of cropland is rainfed, less than one third of households have electricity, almost 60% of the population reports food insecurity, and more than 35% of the population lives below the international poverty line. Climate change impacts on vulnerable systems with limited adaptive capacity and strong population growth are increasing the magnitude of these challenges, slowing and potentially reversing development. Thus, there is a strong need for multi-sector interventions across multiple levels, from national policies, to regional and river catchment-scale planning, to local planning and investment. To implement such actions, it is key not only to assess technological solutions and their investment needs, but also to appraise their feasibility and implementation potential (from both a policy and a financial point of view). Here, we implement a modelling platform (RE4AFAGRI platform), which soft-links bottom-up process-based water and energy demand and techno-economic infrastructure assessment models (WaterCROP, M-LED, OnSSET) into a multi-node, national Nexus-extended Integrated Assessment Model (MESSAGEix-Nexus) for supply and investment assessment. The results of our analysis shed light on the role of water and energy demand in the agricultural sector for jointly affecting infrastructure and investment requirements for achieving rural sustainable development objectives. We find that scenarios with increased ambition in expanding irrigation and agricultural productivity result in improved diffusion and economic feasibility of infrastructure to provide universal energy access while supporting productive uses of energy. Moreover, we conduct business model analysis to appraise the framework conditions and micro and macro determinants that can ensure feasibility of investment and uptake of small-scale infrastructure, crucial for rural development. Altogether, our research demonstrates how integrated modelling with an explicit focus on Nexus interlinkages can represent the enabling role and the business conditions for renewable energy input in agriculture to become a leverage of rural sustainable development. In turn, important policy and investment-relevant insights can be derived.

Studi Kelayakan Pembangkit Listrik Tenaga Surya Untuk Penerangan di Lokasi Ekowisata Mangrove Lembung, Desa Lembung, Kecamatan Galis, Kabupaten Pamekasan

Solar Power Plant is a photovoltaic system to convert electromagnetic energy from sunlight into electrical energy. This solar power plant is one of the recommended solutions for fulfilling electricity needs in remote rural areas where the PLN electricity network does not enter and has abundant sunlight and fuel is difficult to obtain. Based on data from the Global Solar Atlas, Lembung Mangrove Ecotourism, Galis, Pamekasan Regency has a sunlight potential of 4,603 kWh/m² per day. Therefore, it is unfortunate if this potential is not optimally utilised to build an off-grid solar power plant. The purpose of the research is to assess the feasibility of installing PLTS in Lembung Mangrove Ecotourism in terms of technical, economic, and investment feasibility analysis. From the research results, to meet the electricity demand of 15,055 kWh, it needs 12 200 Wp PV modules assembled in 6 series 2 parallel, 8 12V 200Ah batteries with 4 series 2 parallel, and 1 3 kW hybrid inverter are needed. From the simulation results, the estimated energy that can be produced is 35 kWh with a performance of the system is 61.42%. In terms of investment, the initial capital required is Rp89,954,000 so that the NPV value is obtained at Rp1,725,979, PI is 1.01, and PBP is estimated to fall in year 22 month 11.

Investment Feasibility Analysis Using Discounted Cash Flow Valuation Method (Case Study: Gold Mine in Pit A PT XYZ)

Investment in the mining sector carries a high risk, so a comprehensive financial evaluation is required to ensure project feasibility. This study assesses the financial feasibility of gold mining investment in Pit A, PT XYZ, for the period 2025 to 2036. The purpose of this study is to evaluate the feasibility of the project through the analysis of key financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP) using the Discounted Cash Flow (DCF) method. The DCF method was chosen due to its ability to project future cash flows and incorporate them into a comprehensive assessment of the potential benefits and risks of the project. In addition, sensitivity analysis was conducted to see the effect of changes in important variables such as revenue, cost of goods sold (COGS), and capital expenditure (capex) on the financial results of the project. The results show that the project is financially viable, with a positive NPV of US$404.16 million, an IRR of 52.10%, and a PBP of 3.32 years, all of which indicate a strong return on investment. Further sensitivity analysis shows that the project remains robust under various scenarios of changes in key variables. This study contributes to the investment evaluation literature in the mining sector by offering a more integrated approach to addressing investment uncertainty and risk through the combined use of the DCF method and sensitivity analysis.

Optimising Energy Efficiency in Offshore Buildings: Supporting SDG 7 - Clean and Affordable Energy

The offshore oil and gas sector faces significant challenges in reducing its carbon footprint while meeting global energy demand. Offshore structures consume up to 500 MW of energy per day. Despite the potential for 30-40% energy savings with efficiency technologies, only 25% of global platforms implement integrated energy management systems. This study aims to optimize energy efficiency in offshore structures to support SDG 7 - Affordable and Clean Energy. The study uses a multi-method approach, analyzing data from 10 offshore platforms, conducting energy modeling, and cost-benefit analysis. The results show variability in daily energy consumption (423.7 ± 32.5 MW) with key factors such as hydrocarbon production and environmental conditions. Energy efficiency technologies such as hybrid power generation systems and Integrated Energy Management Systems (SMET) show significant potential for savings. The optimization model shows a total potential energy savings of 37.2 ± 2.1%. Economic analysis using Monte Carlo simulations confirms the feasibility of investment with positive NPV for all evaluated technologies. SMET has the most favorable risk-return profile with a mean NPV of 5.8 ± 0.7 million USD. These findings provide important insights for operators and policymakers, emphasizing the importance of a holistic approach to energy management in offshore structures. Implementation of the proposed energy efficiency strategies can contribute significantly to climate change mitigation and the achievement of SDG 7.

Comparative Analysis of Conventional (Financial, Network) and Optimized Mixed Integer Linear Programming Scenarios for Telecom Network Investment Decision Making

The telecommunications industry in Indonesia faces numerous challenges in allocating resources for network development, including network complexity, technological changes, market competition, and customer expectations. To achieve optimal financial outcomes and customer satisfaction, investments must be well-managed, well-placed, and well-executed. This study analyses network investment portfolio selection outcomes at Telkomsel; Indonesia's largest cellular operator, comparing conventional scenarios (financial and network) with an optimized scenario using Mixed Integer Linear Programming (MILP). The research evaluates these scenarios based on total portfolio score, incremental revenue, and Internal Rate of Return (IRR). Financial indicators such as net present value (NPV), IRR, EBIT margin, incremental revenue, and network indicators such as capacity and customer satisfaction (download/upload throughput, latency, packet loss, jitter) assess investment feasibility. The MILP optimization scenario strongly correlates with incremental revenue, NPV, and IRR, indicating higher financial performance. Sites selected in the MILP optimization outperscenario formed others in total score (22% better than the financial scenario, 63% better than the network scenario), incremental revenue (3.5% better than the financial scenario, 90.2% better than the network scenario), and portfolio IRR (4% better than the financial scenario, 70% better than the network scenario).

Closing the Loop between Plastic Waste Management and Energy Cogeneration: An Innovative Design for a Flexible Pyrolysis Small-Scale Unit

This study proposes a simplified unit that can be employed in an industrial facility for the utilization of its own abundant plastic waste, primarily from discarded packaging, to achieve full or partial energy autonomy. By converting this waste into synthetic pyrolysis oil equivalent to 91,500 L, the industry can power a combined heat and power generation unit. The proposed unit was designed with a focus on maintaining high temperatures efficiently while minimizing oxygen exposure to protect the integrity of hydrocarbons until they transform into new compounds. Pyrolysis stands as a foundational procedure, paving the way for subsequent thermochemical transformations such as combustion and gasification. This study delves into the factors affecting pyrolysis and presents analytically the mathematical formulations and relevant calculations in order to effectively design and apply a real-life system. On this basis, fuels from plastic waste can be produced, suitable for utilization in typical equipment meant to produce heat, estimated for six months’ operation and 800 MWh of electricity. This study enhances the transition towards a more circular and resource-efficient economy with technologies that unlock the latent energy contained within the discarded matter. Additionally, it demonstrates the feasibility of a moderate investment in a co-generation system for industries utilizing 568 tonnes of plastic waste per year. The design and accurate calculations of this study highlight the theoretical potential of this technology, promoting environmental sustainability and resource conservation.

RANKING ALTERNATIVE ROUTES FOR PEDESTRIAN WALKWAYS FOR A FACTORY BY APPLYING ANALYTICAL HIERARCHY PROCESS

The Analytical Hierarchy Process (AHP) is one of the Multi Criteria Decision-making (MCDM) methods developed by Thomas Lorie Saaty. It can be defined as the theory of measurement through pairwise comparisons, relying on expert judgments of priority scales. This study aims to compare the alternative pedestrian routes within the production area of a manufacturing company located in Manisa, Türkiye, utilizing AHP. AHP is selected as a suitable tool for this case study, since it allows inclusion of tangible and intangible criteria and consideration of sub-criteria as part of the decision-making process. Three alternative pedestrian routes were evaluated by applying the AHP method to define the best route enabling access for pedestrians to the targeted area in the manufacturing building. The decision criteria were defined by expert Decision Makers of the company and are in line with criteria, such as safety, cost effectiveness and time, utilized broadly for layout selection related studies in manufacturing as per the conducted literature review. The best alternative route was determined as Route 1, and the main criteria priorities were ranked as Criteria 1- “Operational Health and Safety (OHS) Risk Assessment,” Criteria 4 “Restricted access to the material warehouse,” Criteria 2 “Investment Feasibility” and Criteria 3 “Walking Time.” As a conclusion, AHP is effectively applied to prioritize the tangible and intangible criteria and select most suitable pedestrian routes within a manufacturing facility.

Techno-economic analysis of biocrude, biogas, and fertilizer production from microalgae Coelastrella striolata cultivated in agroindustrial wastewater

Coelastrella microalgae have gained attention due to their robustness, high lipid content, effective bioremediation agent, and ability to thrive in diverse environmental conditions. The objective of this study was to evaluate the economic feasibility of an integrated biorefinery of the unique original Coelastrella striolata var. multistriata strain 047 applied in agro-industrial wastewater, flue gases, and excess energy on a 1.2 ha open raceway pond (ORP). This study consists of three scenarios: (1) biocrude only (BO); (2) biocrude and biogas (BB); and (3) biocrude, biogas, and fertilizer (BBF). The findings indicated that the BB and BBF scenarios enhanced the financial feasibility and potential profitability of investment. This is reflected in the economic feasibility indicators for the BB scenario over a project lifetime of 20 years, which include a net present value (NPV) of $4,757,082, an internal rate of return (IRR) of 25.6%, a profitability index (PI) of 2.77, and a payback period of 3.75 years. Similarly, in the BBF scenario, financial viability is demonstrated with an NPV of $4,714,418, an IRR of 25.2%, a PI of 2.73, and a payback period of 3.79 years. Operational expenditures were identified as the most sensitive aspect of this study, particularly in the hydrothermal liquefaction (HTL) process for biocrude production. The utilization of effluent and excess energy from palm oil mill (POM) reduced the operational costs for energy and nutrients by up to 69% compared to the baseline, where palm oil mill effluent (POME) and excess energy were not utilized. Additionally, to achieve optimal results in the BO scenario, increasing the concentration of Coelastrella striolata var. multistriata strain 047 in POME proved to be the most effective approach for increasing biocrude oil production, reducing costs, and increasing economic sustainability.

Techno-Economic Analysis of Utilization Offshore Platform in the Java Sea to Produce Hydrogen with Offshore Wind Turbine-Based Energy Sources

Abstract Indonesia’s geographical condition, which consists of 70 percent ocean territory, holds the potential for utilizing offshore wind turbines to provide cleaner energy. In this study, economic calculations were conducted for offshore wind turbines to generate green electricity and green hydrogen. The chosen ocean area for this endeavor is around the Papa offshore platform in the Java Sea. This area has experienced an economic decline, making it viable for repurposing as a sub-station for a powerhouse and an electrolyzer plant. Based on meteorological data analysis results, the area around the Papa offshore platform exhibits an average at height of 119 m; the wind speed is 5.5 m/s.The prevailing wind direction is East Southeast (ESE), with a frequency of 25.2%. Further analysis of wind farms aimed at generating a capacity of 100.8 MW revealed an optimal potential energy generation of approximately 141,656.9 MWh per year. For scenario 1 (electricity production), the cost is $0.192/kWh. The levelized cost of hydrogen (LCOH) for scenario 2 (offshore electrolyzer) and scenario 3 (onshore electrolyzer) is $9.44/kg and $10.1/kg, respectively. To assess investment feasibility, a Net Present Value (NPV) analysis was conducted. This analysis yielded a selling price of electricity at $0.0271/kWh for the first scenario. For the second scenario, the selling price of hydrogen was calculated at $17.11/kg, and for the third scenario, it was $16.99/kg. Considering its flexibility and potential response to restrictions, the third scenario was deemed the most suitable for offshore utilization to produce clean energy.