Abstract
Generating electricity from biomass are undeniably gives huge advantages to the energy security, environmental protection and the social development. Nevertheless, it always been negatively claimed as not economically competitive as compared to the conventional electricity generation system using fossil fuel. Due to the unfair subsidies given to renewable energy based fuel and the maturity of conventional electricity generation system, the commercialization of this system is rather discouraging. The uniqueness of the chemical and physical properties of the biomass and the functionality of the system are fully depending on the availability of the biomass resources, the capital expenditure of the system is relatively expensive. To remain competitive, biomass based system must be developed in their most economical form. Therefore the justification of the economies of scale of such system is become essential. This study will provide a comprehensive review of process to select an appropriate size for electricity generation plant from palm oil mill (POM) residues through the combustion of an empty fruit bunch (EFB) and biogas from the anaerobic digestion of palm oil mill effluent (POME) in Peninsular Malaysia using a mathematical model and simulation using ASPEN Plus software package. The system operated at 4 MW capacity is expected to provide a return on investment (ROI) of 20% with a payback period of 6.5 years. It is notably agreed that the correct selection of generation plant size will have a significant impact on overall economic and environmental feasibility of the system.