Economic feasibility study of high-capacity boiler technology for palm oil industry

Kefli, Muhammad Hamdi (2024) Economic feasibility study of high-capacity boiler technology for palm oil industry. Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

Text (Full Text) Economic feasibility study of high-capacity boiler technology for palm oil industry.pdf - Submitted Version Download (1MB)

Abstract

Boiler technology is a main component that participated for continuously processing for palm oil mill which as a provider steams, electricity, and hot water into the systems Palm oil mill (POM) processing heavily relies on efficient boiler performance for maintaining high productivity. However, current boiler performance has declined over time, resulting in low efficiency, reduced capacity, and high maintenance costs. Furthermore, POM has not conducted a thorough examination of boiler performance nor a financial feasibility analysis to decide whether to procure new boilers or recondition existing ones. Therefore, the objective is to evaluate the performance of the existing boiler, estimating the financial implications, and computing economic indicators are the three research procedures that need to be finished before conducting a feasibility study based on an economic evaluation. The scheme 1-22 method was employed for this study to assist in making a decision either to procure new boiler or recondition existence boiler by going through the analysis from the technical and financial aspect which focusing on boiler efficiency, investment cost on new boiler and maintenance also the economic indicator such as net present value, internal rate of return and payback period are used to support the decision making on consideration investment. The result suggests schemes 4 and 10, are financially superior to investing in new boilers, with shorter payback periods and higher IRR, making reconditioning the more viable option both technically and financially. In conclusion, this study provides the insight for decision makers for boiler technology in palm oil mills by put the consideration of the boiler technical and economic feasibility study. As a future recommendation that is proposed it to improve boiler performance, economic viability, and sustainability in the palm oil industry and engage stakeholders such as repair contractors and consultants for successful reconditioning. Finally, the future recommendations is to Refurbish existing boilers with significant refurbishment potential to achieve cost savings and improve performance, avoiding the higher costs of new boilers.

Actions (login required)

View Item