POTENTIAL UTILIZATION OF MAGNETIC GENERATOR ENERGY (EGM) AS A SUBSTITUTE FOR ALTERNATIVE ENERGY SOURCES IN THE STEEL PRODUCTION PROCESS OF PT. XYZ-INDONESIA

Submitted: 18 February 2022, Revised: 05 March 2022, Accepted: 15 March 2022 Abstract. The availability of raw material resources for the steel industry is one of Indonesia's supporting capacities to achieve steel industry independence. Indonesia has the largest iron ore processing company in Southeast Asia, namely PT. XYZ. Production activities of PT. XYZ includes the production of raw materials, the production and sale of semi-finished steel, and the production of steel such as steel billets, HRC and CRC, steel wire rods (WR), reinforcing steel, profile steel, and steel pipes according to the specifications required by consumers. The fulfillment of industrial production capacity cannot be separated from energy needs. Reducing costs in the energy sector without reducing production capacity is one solution in increasing production capacity. This research was conducted to determine the potential use of magnetic generators as a strategy to increase production efficiency of PT. XYZ by using the theory of cost effectiveness. This research was conducted through discussions with various related parties and stakeholders in order to determine the standard requirements for the type of energy supply for industry. Then, a literature study related to the supply of energy types was carried out in accordance with the limitations of the problem, namely the energy potential of a magnetic generator. Based on the results of the research and discussion that have been described, it can be concluded that the analysis of the break-even point of EGM and existing electrical energy shows that EGM with a capacity of 10 kW is able to achieve profits after a minimum steel production capacity of 2,055.94 tons and a return on investment in the third year which means more faster than the theoretical service time capability of 20 years. By considering the results of the break even point (BEP) and cost effectife analysis (CEA) analysis, it is concluded that from the economic aspect, EGM has the potential as an alternative to substitute new energy sources at PT. XYZ.


INTRODUCTION
The steel industry as a raw material industry is in tier four in the Defense Industry cluster classification (Bacak, 2015).
Steel plate is one of the results of processing in the steel industry which comes from iron ore which is processed using a blast furnace with various treatment processes so that it becomes the desired steel plate (Yellishetty, Ranjith, & Tharumarajah, 2010).Indonesia has the largest iron ore processing company in Southeast Asia, namely PT.XYZ which is located in the city of Cilegon, Banten.
Production activities of PT.XYZ includes the production of raw materials, the production and sale of semi-finished steel, and the production of steel such as steel billets, HRC and CRC, steel wire rods (WR), reinforcing steel, profile steel, and steel pipes according to the specifications required by consumers.
The availability of abundant raw material resources for the steel industry is one of Indonesia's supporting capacities to achieve steel industry independence (Kaur, Bhardwaj, & Lohchab, 2017).Data from the Ministry of Industry in 2014 shows that Indonesia has abundant reserves of raw materials for the steel industry, namely 4,7 billion tons of resources and 329,5 million tons of reserves.The number of sources of raw material reserves are spread over various islands in Indonesia, namely Sumatra, Java, Kalimantan, Sulawesi, Nusa Tenggara, Maluku and Papua.This is a great opportunity to support the sustainability of the national steel industry so that it can become a national steel provider and become part of the global supply chain in the global market (Müller, Kiel, & Voigt, 2018).The current availability of steel production, in fact, is still not in line with the capacity and consumption of the steel industry per capita.Indonesia's per capita  Reducing costs in the energy sector without reducing production capacity is one solution in increasing production capacity (Matar, Murphy, Pierru, & Rioux, 2015).
Energy prices that tend to increase can be caused by a decrease in the availability of non-renewable energy sources which one day sooner or later will be exhausted while energy demand continues to increase in line with economic growth, population, and developments in people's living standards (Hakim, Suryantoro, & Rahardjo, 2021)  XYZ to check the relevance to the current real conditions.

National Steel Industry -Indonesia
The steel consumption level is still the lowest among ASEAN countries.PT.XYZ shows that Indonesia's steel consumption per capita is 51,30 kg/yr for the period 2017, on the other hand, the highest steel consumption per capita in ASEAN is Singapore at 497,68 kg/yr, Malaysia 294,16 kg/yr, Thailand 243,65 kg/yr, Vietnam 230,92 kg/yr, and the Philippines 93,61 kg/yr.Steel production capacity in Indonesia is always below the level of consumption with an average production capacity of around 50% of the total demand in 2016-2020.The condition of the national iron and steel industry capacity has not been able to meet domestic needs in accordance with the level of national steel consumption and production.The production capacity affects the price level of the steel products produced.This condition is an opportunity for imported steel products to fill the gap.Weak price competitiveness has not only resulted in the division of the domestic market portion but has also resulted in depressed domestic steel demand.This is due to downstream industry players who have a tendency to prefer imported products on the grounds of lower prices.The fulfillment of industrial production capacity cannot be separated from energy needs.The industrial sector is the sector that consumes the largest energy after the transportation sector (Atabani, Badruddin, consumption in units of BOE (Barrel Oil Equivalent) in 2018 was 875 million BOE as shown in Figure 1.

Figure 1 .Figure 2 .
Figure 1.Composition of Sectoral Energy Consumption Source: BPPT (2020) Energy and Mineral Resources, information was obtained that currently the specific energy consumption of the Indonesian steel industry is 900 kWh/ton, while India is 500 kWh/ton and Japan is 350 kWh/ton .Magnetic generator energy is energy from nature which has unlimited capabilities.The use of magnetic generator energy or EGM (especially in the context of use in Indonesia) is still not optimal due to limited knowledge about it.Magnetic generator energy is a generator of electrical energy by utilizing the attractive and repulsive forces of permanent magnets which rotate the magnetic field-producing rotor against the coil so as to produce an electromotive force (EMF).If the magnet is given an external magnetic field, the electrons in the atom will change their motion in such a way that it produces an atomic magnetic field that is opposite to the external magnetic field(Xu, You, &   Ueda, 2013).Such conditions are very likely to be exploited by engineering in such a way as to obtain a perpetual orbital rotational force so that it rotates the generator shaft orbitally to generate electricity.The magnetic field generated by the EMF is also called a back electromotive force (back EMF) and will inhibit the rate of rotation of the induced magnet and as an effort to anticipate it is to use a special bifilar coil.Technology in the energy sector is an important factor in increasing the production capacity of the steel industry.Alternative power sources can be an attraction in developing a power architecture to generate electricity.The stator and rotor with a V-Gate pattern use magnetic generator energy with an optimal angle of 5 degrees and a base distance of 24 mm producing 7.524 Watts of electricity.Optimization of the DC motor on the number of stator magnets so as to produce a mechanical power of 29.936 Watt.Magnetic generator energy has the advantage that it can be used in the long term, is more practical and efficient compared to other energy sources(Prayogo et al., 2020).The focus of this research is limited to analyzing the energy potential of a magnetic generator if it is applied as an energy supply in the steel production process of PT.XYZ, while the research subfocus is the comparison of the energy cost-effectiveness of electrical energy from a magnetic generator to the cost-effectiveness of electrical energy at PT. XYZ at this time.METHODSThis research was conducted through discussions with various related parties and stakeholders in order to determine the standard requirements for the type of energy supply for industry.Then, a literature study related to the supply of energy types was carried out in accordance with the limitations of the problem, namely the energy potential of a magnetic generator.The research method used in this study is a qualitative approach with a quasi-qualitative type of research, with data collection techniques used are literature study, observation, FGD and in-depth interviews.The design of this research is to determine the strategy of developing Magnetic generator energy in supporting the production capacity of PT.XYZ.The research design is divided into several stages, as follows: 1. Diagnosis Stage (Initialization and Identification Stage).The formulation of the background, identification of problems and objectives are carried out at this stage.Problem boundaries are determined to provide boundaries and research focus.At this stage, a preliminary field test is carried out to explore the research problems to be carried out.2. Data Collection and Processing Stage.Data collection related to the problem is carried out at this stage.Data were obtained by conducting observations, Data Analysis Stage.Data analysis was carried out after the data collection stage was completed.The data that has been obtained is then analyzed using the theory used.Interactive steps in the analysis are carried out in the form of data reduction, data presentation, and drawing conclusions or verification.4. Discussion Stage.At this stage, a discussion regarding the title of the research is carried out based on the results of data analysis that has been obtained.The theory that forms the basis of research and other theories that are in accordance with the research focus are then linked to produce a complex discussion.conducted in two main locations, namely PT.XYZ and PT.A B C. The research was carried out for four months starting from September 2021 to December 2021.In this study, the main informants and supporters of PT.XYZ (research and technology division), and the main resource person PT.ABC.The main object of this research is the potential utilization of magnetic generator energy as an alternative source of substitution energy in increasing the production capacity of PT.XYZ.In this study, researchers used triangulation to check the validity of the data.After obtaining the research results, then re-validation was carried out to the PT.

Figure 4 .
Figure 4. Distribution of Energy Use in the Steel Industry Source: BPPT (2013) amount of steel production (tonnes) and in what period of year the company will benefit if it invests in the purchase & operation of magnetic generators.The next calculation is carried out to obtain the effective cost of the two energy sources using CEA.The effective costs of the two energies are compared, if the effective cost of magnetic generator energy (Ce2) is less than the effective cost of existing electrical energy (Ce1) or if it is expressed by the equation that fulfills the equation Ce2 < Ce1 then the magnetic generator is more effective and has the potential to be researched and developed.as a new alternative energy at PT. XYZ.The component of the use of existing energy costs consists of 2 types of components, namely the fixed cost component (FC1) and the variable cost component (VC1).FC1 in steel production uses electrical energy used by PT.XYZ is currently considered Rp.0,-because there is no fixed cost or initial investment in obtaining energy.PT.XYZ is only the end user or .250installed as stated on the official infinitysav.compage.The value of VC2 is the operational cost and maintenance (O&M) cost consisting of the replacement cost of moving components and their lubrication as well as the cost of labor (labor).O&M costs and labor costs are required to manage, operate, and maintain a GM unit.The amount of O&M costs calculated for GM is approached to the O&M costs of wind turbines.The consideration is that the wind turbine generator is one of the clean electric energy generators without CO2 emissions and without variable costs in the form of fuel like generators in general.The basic difference between a magnetic generator and a wind turbine generator is only in the rotor drive.Wind turbine generators use wind as the main driver of the rotor while magnetic generators use magnetic force.GM's assumed O&M costs are $39,7 USD/kW Year (EIA, Capital Cost Estimates for Utility Scale Electricity Generating Plants, 2016).By using the USD exchange rate against the Rupiah in 2021, the amount of the O&M fee is equivalent to Rp. 570.018,56/kW yr, so the O&M cost of a magnetic generator with a power capacity of 10 kW is: Rp. 570.018,56/kW yr x 10 kW = Rp.215.500.952,00+ Rp. 5.700.185,60= Rp.221.201.137,60The calculation of TC1 and TC2 is the total cost of a 10 kW magnetic generator for 1 year, then the calculation of cash flow during the product cycle time (20 years) and plotting the results of these calculations are presented in Figure 5 Break-even Point Q.BEP and T.BEP.

Figure 7 .
Figure 7. NPC and CE Source: Analysis of Research Result (2021)

Table 1 .
. In Table 1 it is shown that the largest energy use is Hot Strip Mill, namely the use of natural gas by 88% and the use of electricity by 58% of the entire steel production process (PT.XYZ , 2018).Energy Sources and Proportion of Energy Consumption in the Steel Production Process of PT.XYZ