Techno-Economic Feasibility of Biogas Renewable Energy Plant: A Case of Malaysian Palm Oil Mill

Based on a chosen case study of palm oil mill, this article presents an analysis of techno-economic feasibility of a biogas renewable energy plant as an alternative eco-friendly system of POME treatment that meets technical and economic constraint for business expansion. By using the multi-criteria analysis method, the closed tank system is identified as the most practical biogas trapping system. The economic analysis with 10.56% internal rate of return, payback time at 8.3 years, and net present value of RM 12,187,432.00 show that the biogas renewable energy plant is economically viable. The study also estimates the total avoided pollution of 8,496 t CO
2
/year for annual electricity production of 14,160 MWh.