Life Cycle Cost Assessment of Biogas Utilization POME for Alternative Energy Toward Decarbonization and Sustainability

Abstract

Pome is a source of emissions that affect the environment, especially as a source of greenhouse gases, eutrophication, and acidification. However, pome also has the potential to be used as a renewable energy source and to minimize environmental impacts by producing biogas with methane capture technologies. This study aims to analyse the economic and financial implications of POME utilization under four schemes co-firing (scheme 1), electricity (scheme 2), bio-CNG as a gasoline substitute (scheme 3), and bio-CNG as an LPG substitute (scheme 4). The analysis was conducted at three palm oil mills in Riau each processing 45-60 tons fresh fruit bunch (FFB) per hour and employing district POME utilization technologies. The methodologies employed include life cycle cost analysis (LCCA), levelized cost (LC) and financial feasibility analysis. he LCCA results are IDR 26.55 billion for scheme 1, IDR 81.84 billion for scheme 2, IDR 253.10 billion for scheme 3, and IDR 165.25 billion for scheme 4. The LC for each scheme is IDR 42.06 per MJ, IDR 1,143.57 per kWh, IDR 8,500.27 per LSP, and IDR 6,526.41 per kg, respectively. The corresponding selling prices are IDR 34.49 per MJ, IDR 1,444.70 per kWh, IDR 8,500.27 per LSP, IDR 4,500 per LSP, and IDR 6,526.41 per kg. The results indicate that schemes 2 and 4 are feasible according to LCCA, while schemes 1 and 3 are not. Financial feasibility analysis further demonstrates that only scheme 3 is not viable. Overall, scheme 1 provides a low-carbon, cost-effective solution for internal decarbonization of PKS, as it does not necessitate additional infrastructure for compressed gas distribution. Conversely, bio-CNG development is more suitable as a substitute for external fuels and as a long-term approach to achieving carbon neutrality in the transportation and industrial sectors, thereby supporting the advancement of new and renewable energy.