ECONOMIC FEASIBILITY STUDY OF CALOPHYLLUM INOPHYLLUM BIODIESEL PRODUCTION

Abstract

Energy use and economic development of a country is positively correlated since the industrial revolution. Continuous growth for energy demand to achieve greater development of a nation especially in developing countries continuously increase fossil fuel consumption. The burning of fossil fuel has contributed significantly to climate change urging researchers to find sustainable fuel in power generation industry. One of the most promising alternative fuel is biodiesel, a sustainable source of energy to reduce carbon footprint due to its renewable, non-toxic and environmentally friendly nature. This research aims to evaluate the economic feasibility of calophyllum innophyllum in Malaysia. A techno-economic assessment for biodiesel production is studied based on design process from feedstock acquisition until biodiesel consumption. Several factors such as payback period, operating costs, maintenance cost and feedstock costs are analyzed. The results demonstrated that biodiesel application commercially is feasible although constant low price of fossil fuel is still a barricade for the successful implementation of biodiesel on a wide scale. The largest economic factor that determines biodiesel production cost is feedstock price which constitutes 63.4%. Unit production cost of calophyllum innophyllum biodiesel is $0.887. In conclusion, this study serves as a guideline to provide utility providers to assess the potential of implementing biodiesel commercially for a greener Malaysia