Life cycle cost of bioethanol bioeconomy of sugarcane bagasse in Indonesia

Bahar, AH; Riayatsyah, TMI; Nadia, CIS; Silitonga, AS; Sebayang, AH; Erlangga, T

Life cycle cost of bioethanol bioeconomy of sugarcane bagasse in Indonesia

Bahar, AH Riayatsyah, TMI Nadia, CIS Silitonga, AS Sebayang, AH Erlangga, T

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Publisher:: ELSEVIER
Publication Type:: Journal Article
Citation:: Industrial Crops and Products, 2025, 237
Issue Date:: 2025-12-01

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Field	Value	Language
dc.contributor.author	Bahar, AH
dc.contributor.author	Riayatsyah, TMI
dc.contributor.author	Nadia, CIS
dc.contributor.author	Silitonga, AS
dc.contributor.author	Sebayang, AH
dc.contributor.author	Erlangga, T
dc.date.accessioned	2026-02-10T02:37:08Z
dc.date.available	2026-02-10T02:37:08Z
dc.date.issued	2025-12-01
dc.identifier.citation	Industrial Crops and Products, 2025, 237
dc.identifier.issn	0926-6690
dc.identifier.issn	1872-633X
dc.identifier.uri	http://hdl.handle.net/10453/193135
dc.description.abstract	As one of the largest agricultural industries in Indonesia, the sugarcane industry plays a vital role in realising the potential of second-generation bioethanol production from sugarcane bagasse (SCB). Despite this fact, SCB is not perceived to be a value-added commodity on a domestic scale, and therefore, it is mostly treated as agricultural waste and disposed via open burning. In this study, life cycle cost (LCC) analysis was carried out to assess the potential of SCB as a feedstock for second-generation bioethanol production in Indonesia. By taking a project lifetime of 20 years and using the average SCB yield per year of a local sugarcane factory (203 kton/year), the total SCB bioethanol yield was estimated to be as high as 30.9 ML/year. The corresponding LCC of the SCB bioethanol production project was determined to be $177.18 million with a payback period of 5.09 years. The levelised cost of bioethanol from SCB ($0.541/L) was lower than the bioethanol selling price recommended by the General Directorate for Renewable Energy and Energy Conservation (EBTKE) at $0.766/L, indicating that the SCB bioethanol production project is economically feasible. The findings of this study provide insight into the potential of SCB as a value-added commodity for second-generation bioethanol production in Indonesia, which will encourage local industries and small and medium enterprises (SMEs) to venture into SCB bioethanol production.
dc.language	English
dc.publisher	ELSEVIER
dc.relation	Department of Industry, Innovation and ScienceICG002425
dc.relation.ispartof	Industrial Crops and Products
dc.relation.isbasedon	10.1016/j.indcrop.2025.122161
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	0703 Crop and Pasture Production
dc.subject.classification	Biotechnology
dc.subject.classification	3004 Crop and pasture production
dc.subject.classification	3006 Food sciences
dc.subject.classification	4004 Chemical engineering
dc.title	Life cycle cost of bioethanol bioeconomy of sugarcane bagasse in Indonesia
dc.type	Journal Article
utslib.citation.volume	237
utslib.for	0703 Crop and Pasture Production
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology/School of Civil and Environmental Engineering
pubs.organisational-group	University of Technology Sydney/UTS Groups
pubs.organisational-group	University of Technology Sydney/UTS Groups/Centre for Technology in Water and Wastewater (CTWW)
pubs.organisational-group	University of Technology Sydney/Faculty of Engineering and Information Technology/Engineering and IT Related HDR Students
utslib.copyright.status	open_access	*
dc.rights.license	This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0). To view a copy of this license, visit https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.date.updated	2026-02-10T02:37:04Z
pubs.publication-status	Published
pubs.volume	237

Abstract:

As one of the largest agricultural industries in Indonesia, the sugarcane industry plays a vital role in realising the potential of second-generation bioethanol production from sugarcane bagasse (SCB). Despite this fact, SCB is not perceived to be a value-added commodity on a domestic scale, and therefore, it is mostly treated as agricultural waste and disposed via open burning. In this study, life cycle cost (LCC) analysis was carried out to assess the potential of SCB as a feedstock for second-generation bioethanol production in Indonesia. By taking a project lifetime of 20 years and using the average SCB yield per year of a local sugarcane factory (203 kton/year), the total SCB bioethanol yield was estimated to be as high as 30.9 ML/year. The corresponding LCC of the SCB bioethanol production project was determined to be $177.18 million with a payback period of 5.09 years. The levelised cost of bioethanol from SCB ($0.541/L) was lower than the bioethanol selling price recommended by the General Directorate for Renewable Energy and Energy Conservation (EBTKE) at $0.766/L, indicating that the SCB bioethanol production project is economically feasible. The findings of this study provide insight into the potential of SCB as a value-added commodity for second-generation bioethanol production in Indonesia, which will encourage local industries and small and medium enterprises (SMEs) to venture into SCB bioethanol production.

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http://hdl.handle.net/10453/193135