Economic performance analysis of biomass burner integrated with a multi-level heat exchanger for tea drying process

Abstract Energy costs commonly account for 59.55% of total green tea processing costs in tea industry, with drying, which uses LPG, being the most expensive. Biomass pellets provide potential solution for reducing energy costs. A biomass pellet burner has been designed to optimize the use of biomass pellets, analysis was conducted to assess its economic potential. The analysis shows that the biomass burner with wood pellets provides drying cost of Rp2,859.92/kg dried tea, saving 26% compared to the LPG burner used at RITC Gambung. Economic performance was also analyzed for mixed pellets (70% sawdust and 30% charcoal) and charcoal pellets. The lowest drying costs are wood pellets (Rp2,859.92/kg dried tea), followed by mixed pellets (Rp3,057.52/kg dried tea) and charcoal pellets (Rp3,239.52/kg dried tea). The biomass pellet burner with wood pellet can break even at a sales volume of 12,372.75 kg dried tea/year. Over five years, it is projected to achieve net present value (NPV) of Rp610,233,641.88, an internal rate of return (IRR) of 33%, a payback period (PBP) of 2.39 years, and a benefit-cost ratio (B/C) of 1.15. These results suggest significant potential for replacing the LPG burner on the ball tea dryer at tea industries.