Investment cost analysis and payback period of waste heat recovery system technology in a nickel pyrometallurgical smelter with 300,000 tons NPI/ year capacity: a case study of PT “X” in the IMIP Morowali industrial area
DOI:
https://doi.org/10.37577/sainteks.v8i02.1133Keywords:
Waste Heat Recovery System, Nickel Smelter, Payback Period, NPV, IRR, Organic Rankine CycleAbstract
The pyrometallurgical nickel processing industry in the Morowali Industrial Area (IMIP) exhibits extremely high energy consumption, in which the Rotary Kiln-Electric Furnace (RKEF) process generates substantial quantities of waste heat that are routinely discharged into the atmosphere without utilization. This study aims to analyze the investment feasibility of implementing Waste Heat Recovery System (WHRS) technology based on the Organic Rankine Cycle (ORC) at PT “X” smelter with a production capacity of 300,000 tons of Nickel Pig Iron (NPI) per year for on-site power generation. The research employs a capital budgeting approach incorporating Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) as key financial parameters, supported by thermodynamic calculations to determine the potential electrical power output. Results indicate that the available waste heat potential from flue gas across four RKEF lines amounts to 156.8 MW thermal, yielding a net electrical output of 28.5 MW. The total WHRS investment cost is estimated at USD 42.75 million, generating annual energy cost savings of USD 14.93 million. Financial feasibility analysis produces an NPV of USD 56.82 million at a 10% discount rate, an IRR of 28.47%, and a Payback Period of 3 years and 2 months. The resulting energy cost reduction reaches 18.7% of the total smelter electrical energy expenditure. The findings confirm that WHRS implementation in nickel pyrometallurgical smelters is financially viable and contributes significantly to industrial energy efficiency and decarbonization efforts in Indonesia’s nickel processing sector.
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