Techno-economic analysis of biodiesel and bioethanol production from Chlorella sp. algae biomass

Abstract

Indonesia's energy consumption mostly comes from non-renewable energy sources, with 32% dedicated to the transportation sector. The Indonesian government is currently increasing the application of a 30% biodiesel blend in diesel fuel and aiming for a 20% blend of bioethanol in gasoline by 2025. Microalgae is one of the most promising sources for biodiesel production, yielding ethanol and glycerol as by-products. The main processes in this biodiesel plant are cultivation, transesterification, and washing, with glycerol as a side product. For bioethanol, the processes include hydrolysis, fermentation, and separation. The cultivation process utilizes a photobioreactor to promote microalgae growth by controlling environmental parameters. The plant's biodiesel production capacity is 87,107.82 gallons per year, with bioethanol production at 65,330.88 gallons per year and glycerol at 217,769 gallons per year. With the government's tax incentive for the sustainable energy industry applied in this economic analysis, the Internal Rate of Return (IRR) value for this plant is 3%, while the Rate of Interest is 13%.