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Integrated biorefinery vs. stand alone biodieselproduction in Indonesia – an economic analysis
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.ORCID iD: 0000-0002-2916-4004
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.ORCID iD: 0000-0001-7123-1824
KTH, School of Industrial Engineering and Management (ITM), Energy Technology, Energy and Climate Studies, ECS.
2017 (English)In: European Biomass Conference and Exhibition Proceedings, 2017Conference paper, Poster (with or without abstract) (Other academic)
Abstract [en]

Biofuel policy instruments have largely steered the expansion of the biodiesel industry in Indonesia,promoting investments and creating fuel markets. Despite the growth, biodiesel use has not yet reached thedeployment targets set by the government. Low profitability and dysfunctional markets forces some plants to operatefar below the installed production capacity, which results in a deficit of biodiesel supply for domestic markets. At thesame time, biodiesel is being exported. The current production configuration of biodiesel in a standalone biodieselplant is perceived to be unprofitable without government subsidy. Therefore, we propose a comparative economicanalysis for biodiesel production in Indonesia using two configurations: the standalone production system typicallyused at present, and an integrated bio-refinery plant. The results show that the biodiesel production cost in thebiorefinery is 13% higher compared to the production cost in a standalone plant. However, due to higher revenuesgenerated in the biorefinery (16% higher than standalone system), biorefinery concept offers more profits to theindustry. Under current economic conditions, the integrated biorefinery concept brings advantages throughimprovement of efficiency in the biodiesel production system and higher production of other valuable products suchas electricity.

Place, publisher, year, edition, pages
2017.
Keywords [en]
palm oil, biodiesel, biorefinery, economical aspects
National Category
Bioenergy
Research subject
Energy Technology
Identifiers
URN: urn:nbn:se:kth:diva-211489ISBN: 978-88-89407-17-2 (electronic)OAI: oai:DiVA.org:kth-211489DiVA, id: diva2:1129439
Conference
25th European Biomass Conference and Exhibition, 12-15 June 2017, Stockholm, Sweden
Projects
STEM BIOENERGI INDONESIEN
Funder
Swedish Energy Agency, T6473
Note

QC 20170807

Available from: 2017-08-03 Created: 2017-08-03 Last updated: 2017-08-07Bibliographically approved

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CiteExportLink to record
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  • apa
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