Feasibility Analysis of Palm Oil Mill Effluent Utilization as A Source of Electrical Energy

Abstract

Palm oil mill effluent (POME) in Indonesia is generally treated with a pond system, where most of the organic materials are decomposed anaerobically. This causes the odor generation and greenhouse gas (GHG) emissions (methane) that contributes to global warming. The organic matter in the wastewater is potentially converted into a green energy in the form of biogas. The biogas can then be converted into electrical energy that can be utilized to supply for energy needed of the plant or the surrounding community. Implementation of this concept can contribute to the improvement of the good practice of palm oil industry by reducing CH4 emissions, as well as improving added value and the competitiveness of palm oil products (green products) in international market. The purpose of this study was to analyze the feasibility of implementing this concept, in the view points of technical, ecological, and financial aspects. The study was conducted with a case study in the Lampung Province. Results showed that in certain circumstances the use of organic materials as a source of electrical energy is technically, ecologically and financially feasible. Palm oil mills in Lampung Province have the potential to emit about 12,663 t CH4or equivalent to 310,245 t CO2e per year. The use of methane gas capture technology can produce approximately 27.171.076 m3 of biogas that can be converted to 42 – 67 Mio. kWh per year. Based on the conditions in Lampung Province, the most prospective technology seems to be the covered lagoon technology with a total investment of IDR 30 billion. The financial analysis showed that this project could yield an IRR of 29.72%, Net B / C of 1.87; Gross B / C of 1.72; and PBP of 4.06 years.