Technical and Financial Feasibility Analysis of Organic Fertilizer Product from Delignified Oil Palm Empty Fruit Bunch

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Silva Latisya, Firda Dimawarnita, Yora Faramitha, Emisha Mawadha Shyfa

2025 IOP Conference Series: Earth and Environmental Science Vol. 1513 Issue 1 Conference paper Cited by 0 Quartile

Abstract

This study investigates the technical and financial feasibility of producing organic fertilizer from delignified oil palm empty fruit bunches (OPEFB). Given the significant volume of OPEFB generated by the palm oil industry, efficient waste management and value addition are critical. The primary objective is to evaluate the technical processes involved and the economic viability of converting OPEFB into organic fertilizer. In this study, a technique of delignified OPEFB composting was carried out with "OrgaDec"compost activator and Trichoderma fungus. The technical analysis carried out assesses the efficiency aspects reviewed through the mass balance of the organic fertilizer production process. Financial analysis encompasses the calculation of production costs, breakeven point (BEP), return on equity (ROE), and payback period (PP). The results indicate that the efficiency of the delignification reactor machine can be considered not optimal enough. The efficiency aspects reviewed through the mass balance resulting 1.884% and efficiency of engine power is 12.5%. Financially, the organic fertilizer production from delignified OPEFB is profitable, achieving a BEP at 44 kg of product, an ROE of 30%, and a payback period of approximately 3.3 years. This study concludes that the production of organic fertilizer from delignified OPEFB is both technically feasible and financially viable, offering significant environmental and economic benefits. This research contributes to sustainable agricultural practices and effective waste management in the palm oil industry. © Published under licence by IOP Publishing Ltd.

Affiliations

Indonesian Oil Palm Research Institute, Bogor, Indonesia; Department of Biosystems Engineering, Faculty of Agricultural Technology, Brawijaya University, Malang, Indonesia