Technical and Financial Feasibility Analysis of Hydrogen Production from Palm Oil Mill Effluent Biogas for Fuel Cells in Supporting Energy System Stabilization from Intermittent Power Supply Fluctuations

Abstract

Hydrogen production from Palm Oil Mill Effluent (POME) biogas via Dry Methane Reforming (DMR), integrated with a Proton Exchange Membrane Fuel Cell (PEMFC), presents a technically and economically viable solution to enhance voltage stability in Indonesia’s 20 kV distribution networks. Process simulation using Aspen HYSYS yielded 1,085 kg/h of hydrogen, stored in three spherical tanks (16.2 m diameter each), and used to power a 2.115 MW PEMFC system with 33.76% electrical efficiency. Grid analysis using PSS^® Sincal demonstrated improved voltage levels from 12.51–19.67 kV to 19.5–22.16 kV, eliminating undervoltage and reducing reliance on the 150 kV grid. Economically, the system achieves a revenue-to-cost ratio of 2.42, supported by annual hydrogen revenue of USD 19.05 million and diesel backup cost savings of USD 7.88 million. Financial metrics confirm project viability with a Net Present Value (NPV) of USD 49.58 million, an Internal Rate of Return (IRR) of 53.61%, a payback period of 2.7 years, and a Benefit-Cost Ratio (B/C) of 2.8. The integrated system supports Indonesia’s national targets for 23% renewable energy by 2025 and a 29% GHG emission reduction by 2030.