Techno-Economic Analysis Small Biodiesel Plant from Palm Sludge Oil

Abstract

This research aims for the production of biodiesel (methyl ester) with the raw material of palm sludge oil (PSO) and perform a feasibility analysis through the parameters of Net Present Value, Internal Rate of Return (compare to bank interests rate), and Simple Payback Period on the small industrial scale 50-70 litters the biodiesel production obtained 91.30% yield from. Biodiesel can replace diesel oil as a fuel boiler for industrial use based on the quality parameters analysed, including methyl ester content, calorie value, flash point, viscosity and density. The economics analysis includes shows this business feasible to be applied.