Analysis of Hybrid Diesel-Biogas for Palm Oil Mill Electrification and Environmental Sustainability

This paper presents an economic analysis of the hybrid diesel-biogas plant for the electrification of palm oil mills and the reduction of greenhouse gas emissions. A palm oil factory load in remote Sumatra area is used as a case study. The optimization configuration, economic and environmental aspects were analyzed using HOMER software. The optimization result obtained 78.7% of total electricity is supplied by hybrid diesel-biogas generators with net present cost (NPC) of IDR 130,693 million and cost of energy (CoE) of IDR 2,142 /kWh. The operating cost of the system is relatively low due to a reduction of diesel fuel consumption. The hybrid system also reduced greenhouse gases emission compared to non-renewable power system. Environmental sustainability is obtained through efforts to increase biogas power generation and reduce the use of non-renewable power system.