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Socio-Environmental Analysis

4. Conclusions

The Prototype of Gasification with multi-stage downdraft gasifier technology with a capacity of 10 kW has been developed on a laboratory scale. Furthermore, the result was

Comment [M33]: incorrect ref order, 48 detected after 38. You jumped the numbers in between.

Comment [ARS34]: I have been changed to citation number 49

technically and economically feasible as a commercial alternative power plant on a small scale of 100 kW. The economic analysis indicated that the power plant will have an NPV of USD 48,846 with an IRR of 9.72%. The payback period was achieved at six years for the required investment costs of USD 56,143. The availability of fuel i.e., oil palm plantation waste in the form of oil palm frond and oil palm trunk was sufficient throughout the year so that it can continue to be used as long as the price was no more than USD 0.026/kg, as well as diesel fuel with a maximum price of USD 0.47/L. All investment costs can be re- turned following the payback period if the plant can operate at least 355 days/year. Risk analysis was also carried out by considering the uncertainty of economic conditions that can affect changes in capital cost, operation and maintenance costs, and increases or de- creases in revenue. The result, with a probability of 90%, NPV obtained USD 41.833–5.861 with a percentage of 49.94% above the base case was achieved. Meanwhile, IRR was ob- tained between 8.40% and 11.04%.

In terms of social aspects, the existence of power plant in rural areas was considered to increase people’s income and create many new businesses. The existence of a power plant employs the surrounding community. The continuous supply of electrical energy opens up business opportunities, both micro and medium, that utilize electrical energy as the primary energy sources. However, adverse environmental impacts must not be ig- nored from the construction stage to the operation of the power plant. The construction of power plants must refer to rules that have been issued by the government in order to maintain an environmental balance.

Author Contributions: Conceptualization, A.R.S. and J.A.P.; methodology, J.I.; software, A.R.S.;

validation, J.I., B.S. and J.A.P.; data curation, E.N.J.; writing—original draft preparation, A.R.S.;

writing—review and editing, J.A.P.; visualization, A.R.S.; supervision, B.S.; funding acquisition, J.I.

All authors have read and agreed to the published version of the manuscript.

Funding: This research received no external funding.

Institutional Review Board Statement: Not applicable Informed Consent Statement: Not applicable

Data Availability Statement: The data used in this paper were provided by the experimental data from The Combustion and Energy System Laboratory, Institut Teknologi Sepuluh Nopember Acknowledgments: Publishing fees were supported by Tidar University from Publication Incen- tive Program. Thanks to Tidar University for supporting the publication.

Conflicts of Interest: The authors declare no conflict of interest.

Abbreviations

ASTM American Society for Testing and Material B/C Benefit to Cost Ratio

ER Equivalent Ratio

AR Air Ratio

IDR Indonesian Rupiah

IRR Internal Rate of Return

IRENA International Renewable Energy Agency

LHV Low Heating Value

LCOE Leverage Cost of Electricity

NPV Net Present Value

POME Palm Oil Milk Effluent O&M Operation and Maintenance

PBP Payback Period

Nomenclature

N Number of period (year)

y Year

Cy Cash inflow in year (USD)

i Interest rate (%)

S Standard Deviation

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