Economic Analysis of Biogas Utilization as Co-firing in Coal Powerplant

Abstract

By signing the Just Energy Transition Partnership (JETP) joint statement in 2022, Indonesia pledged to cut CO₂ gas emissions in the energy sector. This commitment challenges Indonesia to achieve net-zero CO₂ emissions by 2060, especially in the energy sector. As Indonesia's biggest electricity provider, PLN was implementing this pledge through the Accelerate Renewable Energy scheme, an energy transition program. This program will raise the proportion of renewable energy used in Indonesia's electricity generation. In 2040, Indonesia plans to produce 20,923 MW of power from renewable energy sources. With a total production capacity of 46.82 million tons of CPO, Indonesia is the world's largest producer of palm oil and has the ability to generate renewable energy generation from biogas from Palm Oil Mill Effluent (POME). Methane, which can be used as a renewable energy source, provides up 50–75% in the biogas generated by the POME fermentation process. To ascertain the economic viability of using biogas from POME through two schemes. 1. By delivering the fermented biogas to the closest coal power plant for direct co-firing at the existing coal power plant. 2. Biogas power plants generate electricity on-site, and the electrical energy generated is then combined with that of other power plants via an interconnection transmission line. The study's findings demonstrate that, over an 88-kilometer distance, on-site power generation is more cost-effective, produces more energy, and reduces emissions to the greatest extent possible. Emissions decreased by 579.78 kg/h when electric power produced 2.0 MW, and the internal rate of return was 20.75%. With an IRR value of 4.98 percent, direct cofiring generated 1,80 MW of electricity while lowering emissions by 522,73 kg/h.