The financial analysis for the advisability of the biogas project from cattle manure in household scale

Abstract

The existence of domestic cattle breeders is a community group that has considerable potential to develop renewable energy resources and environmentally friendly. The methane gas (CH4) produced by cattle manure is a strong greenhouse gas, about 25 times stronger than CO2 if organic waste is not taken up and letting it decay in the open, methane causing global warming. This research is to study the feasibility of processing of domestic cattle manure into biogas with financial analysis. The method used is to analyze the financial aspect by calculating NPV, IRR, and B/C Ratio. This research shows that the potential of raw material of biogas at the research location is great. The utilization of biogas from cattle manure on the household scale is financially feasible, as evidenced by its NPV value indicates >0, its IRR exceeds the interest rate, and its B/C Ratio >1, and the majority of breeders also want to process their cattle manure into biogas.