A Cost-Benefit Analysis of Mapping Used Cooking Oil as Biofuel Feedstock for Small-Scaled Industries

Abstract

The abundant availability of used cooking oil as feedstock for biofuel can be used as potential for developing renewable fuel. Throughout 2021 alone, used cooking oil production originating from household sector is estimated to have reached 3.59 kilo liters or equivalent to 22.52% of total contribution achieved. The aim of this research is to determine the feasibility of used cooking oil as a feedstock for biofuel by measuring how much biofuel can be produced from household waste and how many small-scaled industries can be formed by considering an equal financing scheme between provinces. This research uses a cost-benefit analysis to produce a ratio that can calculate benefits against costs. The cost factor is calculated by estimating the expenses required to produce biofuel, while the benefit factor uses from Kartu Pra Kerja distribution data. Result can be concluded that the program is feasible to implement because it produces benefit to cost (BC) ratio of 1.31 with an estimated of 983,191 kilo liters biofuel can be produced and 234,093 small-scaled industries can be formed. Meanwhile provincial mapping showed that only six provinces in Indonesia that are considered unpotential for developing programs because BC ratio < 1.