Seminar Nasional TREnD

Technology of Renewable Energy and Development

FTI Universitas Jayabaya Juni 2023

TECHNO ANALYSIS STUDY OF SILICA FACTORY FROM

GEOTHERMAL BRINE

Eduardus Budi Nursanto1,2 *), Nadya Aulia Warsito1) , Muhammad Sultan Ryan Ramdhani1 dan
Nabila Shabrina Aldyra 1)
1
Chemical Engineering Department, Universitas Pertamina, Jakarta, Indonesia
2
Center of Downstream Chemical Industry, Universitas Pertamina, Jakarta, Indonesia

*) Corresponding author: [Link]@[Link]

Abstract

In Geothermal power plant, brine from geothermal steam is reinjected again into the geothermal field.
Brine is contains several valuable metal such as silica and lithium. Silica is important material for
development of renewable energy since it is main component for fabrication of silicon solar cell. In this
research, we investigated the feasibility study of silica extraction factory from geothermal brine with
production capacity of 5000 ton/year. The techno-economy analysis is applied for feasibility study. Silica
is obtained from polycondensation and nucleation process of dissolved silica in brine with operating
condition of 1 atm and temperature of 30oC, Then it will be separated using 3-stage membrane
ultrafiltration to get 871.9875 kg/h of silica nanoparticles with 99.8% purity. The amount of separated
geothermal water needed are 1,350,000 kg/hr. From the economy analysis: pay out time is 2.14 years,
return of investment is 46.77%, break even point is 17.3966%, and shutdown point is 6.86 %. Based on
techno-economny analysis, the silica extraction plant from geothermal brine is feasible to develop.

Abstrak

Di Pembangkit Listrik Geotermal, brine dari uap geothermal biasanya direinjeksi lagi ke dalam lapangan
geotermal. Brine mengandung beberapa logam yang bernilai tinggi seperti silika dan litium. Silika
merupakan material penting dalam pengembangan energi terbarukan karena silika merupakan komponen
utama dalam pengembangan sel surya silicon. Di dalam penelitian ini, kami melakukan investigasi
kelayakan pembangunan untuk pabrik ekstraksi silika dari brine geotermal dengan kapasitas 5000 ton/tahun.
Analisis tekno-ekonoi diaplikasikan di dalam studi kelayakan pembangunan, Silika diperoleh dari proses
polikondensasi dan nukleasi dissolved silica dalam brine dengan kondisi operasi 1 atm dan suhu 30oC
kemudian akan dipisahkan dengan membrane ultrafiltrasi 3-stage untuk mendapatkan silika nanopartikel
dengan kemurnian 99.8% sebanyak 871,9875 kg/jam. Jumlah separated geothermal water (SGW) yang
diperlukan di dalam proses produksi silika adalah sebesar 1.350.000 kg/jam. Dari analisis ekonomi, prospek
ekonomi untuk pabrik ini setelah pajak berupa pay out time selama 2,14 tahun, return of investment sebesar
46,77 %, breakeven point sebesar 17,40 %, dan shutdown point sebesar 6,86 %.

Kata Kunci : geothermal brine, silica extraction factory, techno analysis study

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PENDAHULUAN

Indonesia is rich in geothermal source since there are many active volcanoes in Indonesia.
Geothermal sources in Indonesia are utilized for power plant. Geothermal steam from geothermal
field contains several minerals that dispersed and dissolved. Brine geothermal is the side stream
from the power generation process in geothermal power plant. The geothermal steam treated first
in separator to separate between geothermal brine that rich in mineral and clean steam for rotating
turbine. Recently, geothermal brine just injected again into geothermal field [1-5].
Geothermal brine can be extracted to obtain the minerals. The minerals that contain in
geothermal brine such as Ammonia (NH3), Mercury (Hg), Kalium (K), Calcium (Ca), Magnesium
(Mg), Platinum (Pt), Seng (Zn), Timbal (Pb), Copper (Cu), Mangan (Mn), Silica (SiO2), Lithium
(Li), Arsen (As), Antimony (Sb), Boron (B), Bromida (Br), Iodine (I), Strontium (Sr), Sulfate
(SO4), Chlor (C), Aluminium (Al), Iron (Fe), Natrium (Na), Carbon Dioxide (CO2), Fluorine (F)
and Bikarbonat Acid (HCO3) [3,5]. One of the main components in geothermal stream is silica.
Silica is one of the valuable minerals. However, silica in the stream increase the possibility for
scaling in geothermal power plant system.
In this study, we did the techno-economy analysis study for silica factory from geothermal
brine. In Indonesia, brine geothermal contains high silica concentration around 830 mg SiO2/ kg
geothermal brine [3]. Furthermore, the increasing demand in Indonesia for silica in Indonesia which
is 78,153 ton/year (Badan Pusat Statistik, 2018) drive the establishing of silica plant in Indonesia.
Silica extraction factory from geothermal brine with production capacity 5000 ton/year planned to
establish at region Alam Pauh Duo, Kabupaten Solok, Sumatera Barat. This location is chosen
since it close to geothermal power plant muara laboh (PLTP Muara Laboh), since it producing
high amount of geothermal brine.

METODE PENELITIAN

The unit cost for the apparatus is based on the dimension of the apparatus. All of the
apparatus has been well designed. The cost estimation for apparatus is based on the reference from
Aries [Link][8]. The cost estimation is based on the capacity of factory which is 5000 ton/day and the
present price is corrected by using correction factor which is chemical engineering plant index.
For the economic feasibility, we are following reference from Aries [Link] and Timmerhaus
[8-9]
[Link] . The feasibility of this process is measured from capital expenditures (CAPEX) and
operational expenditures (OPEX). CAPEX consists of total direct cost (factory apparatus cost,
instrumentation, etc) , total indirect cost (engineering, construction fee, etc) and working capital
(product inventory, process inventory, etc). OPEX consist of manufacturing cost and general
expenses. APEX and OPEX measurement is used for calculating important parameter for
economic feasibility such as return on investment (ROI), payout time (POT) and break even point
(BEP).

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HASIL DAN PEMBAHASAN

Gambar 1. Block Flow Diagram of Silica Plant for Geothermal Brine

The technology for extracting silica is following research by Potapov [8-10]. From Figure
1, Separated Geothermal Water (SGW) or brine is cooled down by using heat exchanger (HE).
The purpose of cooling down is to conditioning brine at saturated condition (30oC, 1 atm). At
saturated condition, brine is undergoing nucleation and polycondensation of silicic acid or
ortho-silicic acid (OSA). After nucleation and polycondensation, colloid silica is formed.
Several factor that affects nucleation rate and SiO2 particle growth are such as temperature, pH,
and degree of saturation. Then the solution flows to filtration unit to obtain colloid silica
concentrate.
To obtain silica powder, colloid silica is dried to remove the water content by using dryer.
Then, silica powder is calcinated using rotary kiln at high temperature to obtain crystalline
structure. After from rotary kiln, sample is cooled by using rotary cooler. The final product
from rotary cooler is silica (SiO2) crystalline nano-powder.
Table 1 shows capital expenditures (CAPEX) of silica factory. Total CAPEX of this
factory is Rp 1,210,727,176,193.19. Table 2 shows manufacturing cost for this factory and
Table 3 shows general expenses of this factory. Operational expenditures (OPEX) is the total
value of manufacturing cost and general expense. OPEX value for this factory is Rp
408,995,719,188.59.

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Table 1. Capital Expenditures for Silica Factory

Component Price
1 Purchased Equipment Cost Rp 195,469,439,427
2 Delivery Equipment Cost Rp 29,320,415,914
3 Equipment Installation Rp 304,698,948,649
4 Piping Rp 68,414,303,799
5 Instrumentation and Controls Rp 20,313,263,243
7 Electrical Equipment Rp 20,313,263,243
8 Building Including Services Rp 29,975,550,512
9 Services Facilities Rp 107,508,191,685
10 Land and Yard Improvement Rp 77,143,679,746
Direct Plant Cost (DPC) Rp [Link]
12 Engineering, Construction, and Supervision Rp 81,253,052,973
13 Contractor's Fee Rp 20,313,263,243
14 Contingency Rp 50,783,158,108
15 Legal Expenses Rp 10,156,631,622
INDIRECT PLANT COST (IDC) Rp 162,506,105,946
Fixed Capital Invesment (FCI) Rp 1,015,663,162,165
16 Raw materials inventory Rp [Link].97
17 Process inventory Rp [Link].10
18 Product inventory Rp [Link].23
19 Extended credit Rp [Link].20
Working Capital Cost Rp 195,064,114,028.50
CAPITAL EXPENDITURE COST Rp 1,210,727,176,193.19

From the production capacity of this factory (5000 ton/year), total annual sales is
calculated. Based on alibaba (2023), price of silica is around Rp 232,806.78/kg (~ USD 15.6).
Therefore the total annual sales
Total annual sales = production capacity x silica price
= 5000,000 kg/year x 232,806.775
The total annual sales (Sa) is Rp 1,164,033,887,702.40 /year
From OPEX value in Table 3, we calculated profit before tax.
Profit before tax = Total annual sales − OPEX
=Rp [Link].702,40 − Rp 408,995,719,188.59
= Rp 755,038,168,513.81

According to Indonesia goverment regulation (UU nomor 36 pasal 17 ayat 1(b), 2018), the
industrial tax is 28%. Then the profit after tax is
Profit after tax = Profit before tax – (tax*profit before tax)
Profit after tax =Rp [Link].94

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Table 2. Manufacturing Cost for Silica Factory

A. VARIABLE PRODUCTION COST

Components Price
1 Raw materials Rp 27,145,690,727.97
2 Labor Rp 18,057,600,000.00
3 Maintenance Rp 71,096,421,351.53
4 Operating Supplies Rp 10,664,463,202.73
5 Utility Rp 4,825,888,955.41
6 Laboratorium Rp 1,805,760,000.00
7 Patent and Royalty Rp 4,089,957,191.89
B. FIXED CHARGES
1 Insurance Rp 10,156,631,621.65
2 Property Tax Rp 112,672,144.30
3 Bank Interest Rp 48,126,409,228.68
4 Depreciation Rp 92,171,327,786.04
C. PLANT OVERHEAD COST Rp 332,829,832,885.96

GENERAL EXPENSES
1 Administration Rp 27,086,400,000.00
2 Marketing Distribution Rp 40,899,571,918.86
3 Research and Development Rp 8,179,914,383.77
OPERATIONAL EXPENDITURE COST Rp 408,995,719,188.59

By using the data from Table 1 and Table 2, we calculated the discounted value (i) to prove
the benefit for establishing this factory. We calculated discounted value by using equations below:
(1+𝑖)𝑁 −1
𝑊𝐶 + 𝑆𝑉 + (𝐶 𝑥 ) = (𝐹𝐶 + 𝑊𝐶) + (1 + 𝑖)𝑁 (1)
𝑖
Notes:
WC : working capital = Rp 195,064,114,028.50
SV : salvage value which consists of building and land price = Rp 107,119,230,258
C : cash flow which consists of profit after tax, depreciation and loan interest =
Rp 683,925,218,344.66
FC : fixed capital cost = Rp 1,015,663,162,165
i : discounted value
N : operational life of factory = 9 year

By using trial and error method, we got discounted cash value( i) = 20.77%. The value of
discounted cash (i) is higher than average saving deposito interest rate in Indonesia (3%). The
higher discounted cash value prove that inverstation for silica factory in Indonesia is profitable.
Another key value to calculate the feasibility of factory are return on investment (ROI) and pay
out time (POT). We calculated the value of ROI and POT after tax below, based on equation from
reference (peter timmerhaus):

profit after tax

Return on Investment (ROI) after tax = total capital investment x 100% (2)
= 46.77%

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total capital investment

Pay Out Time (POT) after tax = profit after tax +(0.1 x total capital investment) (3)
= 2.14 year
The value for ROI (46.77%) is higher than highest inflation rate in Indonesia at 2022 which
is 6.95 % [11]. proving the investment for silica factory from geothermal brine is acceptable. Based
on reference, low risk investment that has low risk of failure should be less than 5 year [7]. The
POT for silica factory from geothermal brine is lower than 5 year, proving the economic feasibility
of this factory.
Break even point (BEP) and shut down point (SDP) are another parameters for proving the
feasibility of investment. BEP and SDP were calculated based on equation from reference[7].
The BEP value of 17.40 % related with the production capacity in the factory that the
operational cost is similar with the profit. The SDP value of 6.86 % related with the limit for the
factory to shutdown the operation. If the capacity production of factory less than 6.86 % then the
production should be stopped, since the operational cost is higher than the profit.

KESIMPULAN

From our study, the silica factory from geothermal brine is economicallu feasible to be
established in Indonesia. The discounted cash value (20.77%) is higher than saving deposito
interest in Indonesia (3%), proving the investment silica factory is more profitable than saving.
The break even point (BEP) for this silica factory is 17.40%. The production capacity limit before
the factory shutdown is represent by shut down point (SDP), the value of SDP is 6.86%.
Furthermore, the value for return on investment (ROI) is higher (46.77%) than highest inflation
rate in Indonesia at 2022 (6.95%), proving the investment for silica factory from geothermal brine
is promising.

UCAPAN TERIMAKASIH

Authors is fully supported from Chemical Engineering Department, Universitas Pertamina

DAFTAR PUSTAKA

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