Electrical power from the anaerobic digestion of palm oil wastes - an economic analysis | |
| Author | Putham, Mohan |
| Call Number | AIT RSPR no. ET-84-9 |
| Subject(s) | Waste products as fuel--Economic aspects Biogas--Economic aspects Electric power production from chemical action |
| Note | A research study (6 credits) submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Abstract | This report looks into the economic feasibility of setting up a gas production system that produces biogas from the anaerobic digestion of palm oil wastes discharged by the Penggeli Palm Oil Mill located in the state of Johore, Malaysia. Also included is a similar economic feasibility study of an electricity generating system fueled by biogas discharged from the former. The electricity generated by the system is to be supplied to the residents of a land settlement scheme located adjacent to the processing plant. The period under consideration was 10 years and the methods of economic analysis employed were the Net Present Value, Benefit-Cost ratio and the Internal Rate of Return. The gas production system was found to be economically feasible under the current market conditions. of particular concern was the fact that the palm oil mill would be operating at a loss should the gas production rate fall below 3.6 m3/ton FFB processed. The plant gains maximum benefits when gas price reaches 60 cts/m3 on the market and interest rate ranges between 10 - 15 % . The feasibility of the project was indicated by positive net present values generated at various gas prices and at various interest rates. Further confirmation was obtained by benefit-cost ratios being greater than one. As for the electricity production system which is owned and managed by the residents of the scheme, it was found that the project would not be feasible when gas is priced at 60 cts/m3 by the plant and electricity is tariffed at 15 cts per kwh. Evidence to this conclusion is given in the form of NPVs, IRRs and B-C ratios. In conclusion when gas prices exceed 50 cts/m3 it would be economical to run the electricity generation system on diesel in view of savings gained in the latter situation. If on the other hand, electricity prices do exceed 30 cts/kwh as a result of higher gas prices, then the residents would find it uneconomical to tie-up excess electricity generated with the central grid supplies when these are introduced to the settlement at the end of the period under consideration, i.e. in 1991 Such a tie-up has a number of benefits, one of which would be reduced tariffs for electricity as a result of revenue generated from the sale of excess electricity to the central grid. |
| Year | 1984 |
| Type | Research Study Project Report (RSPR) |
| School | School of Environment, Resources, and Development |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Hertzmark, Donald |
| Examination Committee(s) | Exell, Robert H.B. ;Bhattacharya, Sribas C. |
| Scholarship Donor(s) | Shell International, United Kingdom |
| Degree | Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 1984 |