Techno-Economic Analysis of Various Biogas Utilization Scheme in Indonesia’s Palm Oil Industry
Palm oil and its derivative products is a strategtic commodity for Indonesia. Carbon foot print of palm oil had been studied and concluded that Palm Oil Mill Effluent (POME) is one of the contributor of Greenhouse Gases (GHG) emission in the industry. Capturing GHG emission and utilize it as an energy source is the solution that widely proposed. GHG that is captured has several utilization scheme that is available to be explored and indeed each scheme has its own advantage and limitation compares to others. This study aim to compares several utilization scheme to find the most feasible scheme by using techno-economic analysis. This study is limited to explore utilization scheme from three biogas utilization technology as follow: (1) electricity generation, (2) direct biogas utilization and (3) Compressed Biogas (CBG). This study is also limited only in Indonesia region, by that means all the condition (policy, economic condition, social condition, political condition, etc.) and study case would take place in Indonesia region. This study would use two Palm Oil Mill (POM) from different province in Indonesia as a study case. The result of the study shows that the energy produced by POM is underutilized by the existing market, the price conventional energy is lower than the energy that is produced by POM and POM capacity affecting the feasibility of the methane capture facility. The proposed policy to encounter these findings would be mandatory regulation to use renewable energy from POM, adjusting tariff for electricity FiT that is produced by renewable energy, establish an integrated industrial complex to interconnect the excess production of energy, and establish the carbon credit mechanism to add new revenue stream for POM.
Keywords - Methane Capture, Renewable Energy Regulation, Feasibility Study