From waste to wealth: an economic analysis of briquette from empty fruit bunch within the circular economy framework

Abstract

Indonesia as a palm oil producing country certainly requires sustainable waste management system. The large amount of biomass from palm oil will cause environmental problems. Processing agricultural waste using pyrolysis technology is one of the methods that could be used to reduced waste to energy source. The development of the palm oil biomass (EFB) into briquette needs a feasible economic valuation. Research conducted in Bekiung Village, Kuala District, Langkat Regency, North Sumatra. Focus Group Discussion was conducted with oil palm farmers who are members of BUMDES Bangun Mandiri, which is a Village-state owned enterprise. The feasibility and sensitivity analysis of EFB briquette was analyzed using NPV, IRR and Payback Period. The results of sensitivity analysis show that a business is still feasible despite the decreasing in selling prices by 5% and 10% or increasing in operational cost by 5%, 10% and 15%. Meanwhile business become not feasible if there is a 15% decreasing in selling prices or 20% increasing in operational cost.