JRSSEM 2022, Vol. 01, No. 8, 981 – 995
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v1i8.125 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
POTENTIAL UTILIZATION OF MAGNETIC GENERATOR
ENERGY (EGM) AS A SUBSTITUTE FOR ALTERNATIVE
ENERGY SOURCES IN THE STEEL PRODUCTION PROCESS
OF PT. XYZ - INDONESIA
Moch. Kuswanto1
Abraham Benedict Cahyasusila2
Rudy Agus Gemilang Gultom3
1,2,3Study Program of Defense Industry, Faculty of Defense Technology, Indonesia Defense
University of Republic of Indonesia
e-mail: kus12.2021@gmail.com1, abraham.benedict_ti2012@yahoo.com2,
rudygultom67@gmail.com3
*Correspondence: kus12.2021@gmail.com
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.
Keywords: magnetic generator; alternative energy; steel industry; break even point; cost effective
analysis.
Moch. Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 982
DOI : 10.36418/jrssem.v1i8.125 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
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
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,
Mekhilef, & Silitonga, 2011); (Abdelaziz,
Saidur, & Mekhilef, 2011). Sectoral energy
983 | Potential Utilization of Magnetic Generator Energy (EGM) as a Substitute for Alternative
Energy Sources in the Steel Production Process of PT. XYZ - Indonesia
consumption in units of BOE (Barrel Oil
Equivalent) in 2018 was 875 million BOE as
shown in Figure 1.
Figure 1. Composition of Sectoral Energy Consumption
Source: BPPT (2020)
Figure 2. Composition and Types of Sectoral Energy Consumption
Source: BPPT (2020)
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);
(Sasana & Aminata, 2019). This
phenomenon is very reasonable because
the demand for energy needs from year to
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 984
year is increasing.
The availability of non-renewable
energy sources is not only doubtful but also
a contributor to greenhouse gas emissions
(Pearson, Brown, Murray, & Sidman, 2017);
(Zaidi, Hou, & Mirza, 2018). Indonesia is
one of the largest emitters of greenhouse
gases in the world, so development efforts
towards decarbonization (net zero
emission) have become a global concern.
The political commitment of the Indonesian
government to implement the SDGs
(Sustainable Development Goals) is carried
out by the signing of Presidential
Regulation Number 59 of 2017 concerning
the Implementation of Achieving
Sustainable Development Goals. The
Presidential Regulation Number 59 of 2017
is also a commitment so that the
implementation and achievement of the
SDGs is carried out in a participatory
manner by involving many parties. One of
the SDGs goals related to energy issues is
clean and affordable energy, ensuring
accessibility to energy that is reliable,
sustainable and modern for all. Derivative
regulations that serve as guidelines for the
implementation of the focus on renewable
energy sources are a follow-up to these
activities. Some of these regulations are for
example the regulation of the Minister of
Energy and Mineral Resources Number 50
of 2017 concerning the Utilization of
Renewable Energy Sources for the
Provision of Electricity (Böttger, Götz,
Theofilidi, & Bruckner, 2015).
The national steel industry is one of the
industrial sectors that use the dominant
energy of gas and coal which is converted
into heat energy for heating blast furnaces
in iron ore smelting or electrical energy to
drive production machines (He & Wang,
2017). Coal and gas are converted into heat
energy for direct or indirect combustion,
namely for heating water to produce hot
steam that can drive an electric generator.
The existence of these energy sources will
sooner or later run out and can lead to
contradictory supply and demand. The
need for costs in meeting the energy needs
of the production process is getting higher
from year to year, which is one of the things
that can reduce the production capacity of
the steel industry. These types of energy
sources can affect product prices so that
they become less competitive and have an
impact on weakening industrial
competitiveness. Based on this information,
it was found the identification of problems
in energy fulfillment in the steel industry
production process so that alternative fuels
are needed with abundant availability and
are environmentally friendly. From
historical data in 2011 for several industries
that were collected by the Ministry of
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
985 | Potential Utilization of Magnetic Generator Energy (EGM) as a Substitute for Alternative
Energy Sources in the Steel Production Process of PT. XYZ - Indonesia
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.
METHODS
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. 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,
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 986
interviews, questionnaires and
document studies.
3. 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.
5. Final Stage. Researchers draw
conclusions from the results of the
discussion stages that have been
carried out. The conclusion of the
development strategy is formulated
and then recommendations or
suggestions are formulated for further
researchers and related research
subjects.
The research was 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.
XYZ to check the relevance to the current
real conditions.
RESULTS AND DISCUSSION
National Steel Industry - Indonesia
The steel industry is one part of the
base metal industry which is included in the
upstream industry and is included in the
strategic industry in Indonesia. The steel
industry plays an important role in
supplying the main raw materials for
development in various fields ranging from
infrastructure, production of capital goods,
transportation equipment to defense
applications such as warships, combat
vehicles and weapons (Ministry of Industry,
2014). Indonesia has enormous potential to
develop the steel industry and because of
its very importance, the steel industry
becomes very strategic for the strength and
prosperity of a country as presented in
Figure 3.
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DOI : 10.36418/jrssem.v1i8.125 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Figure 3. The Role of the National Steel Industry
Source: IISIA (2015)
The scope of the steel industry is very
broad, covering a long value chain from
upstream to downstream. The upstream
supply chain of the steel industry starts
from the process of mining products in the
form of iron sand into iron ore. Although
the process is not considered as part of the
steel industry and is a supplier industry in
the steel industry supply chain, its existence
is very strategic in determining the
competitiveness of the steel industry in a
country. Furthermore, the iron ore is
processed again in a steel smelting furnace
to be continued into pellets which are the
raw material for making steel. Pellets are
processed again in steel kilns to produce
intermediate steel products that produce
raw materials for downstream industries as
end products. Based on the process flow
and the relationship between these raw
materials and products, the national steel
industry is divided into the following
classifications (Ministry of Industry, 2014):
a. Upstream Steel Industry. In the
upstream steelmaking process, there
are two main systems, namely blast
furnace technology and Direct
Reduction Iron (DRI) technology.
b. Intermediate Steel Industry. Based on
the value chain flow, the intermediate
steel industry can be grouped into two
groups, namely the manufacture of
crude steel and the manufacture of
semi-finished steel products.
c. Downstream Steel Industry. In the
upstream steelmaking process, there
are two main systems, namely the
manufacture of finished flat product
steel and the manufacture of finished
long product steel.
Energy Use in the National Steel
Industry-Indonesia
Energy is a very basic need in industrial
development, therefore the supply of
energy to achieve industrial growth targets
is very important. From historical data on
several industries that were collected by the
Ministry of Energy and Mineral Resources,
information was obtained that currently the
energy intensity of the steel industry in
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 988
Indonesia is 900 kWh per tonne (Pengkajian
& Teknologi, 2012). This means, to produce
1 (one) ton of steel in Indonesia requires
900 kWh of energy. It is recorded that there
are 7 types of industries that consume large
amounts of energy, either used as fuel or
used as raw materials. The seven industries
are the steel industry, the cement industry,
the fertilizer industry, the ceramic industry,
the pulp and paper industry, the textile
industry and the palm oil processing
industry (Pengkajian & Teknologi, 2012).
When compared to other input factors,
energy costs in these seven industries are
even higher than labor costs, and are
ranked second after raw material costs.
The steel industry is an energy-
intensive industry. The iron and steel
industry is included in the category of
energy user industry above 6.000 TOE
(equivalent to tons of oil). The distribution
of energy use in the iron and steel industry
can be seen in Figure 4. The problems faced
by the steel industry today are the weak
and unintegrated structure of the steel
industry in Indonesia, such as the high
import of raw materials so that it cannot
meet the needs of the downstream industry
and the difficulty of supplying natural gas.
accompanied by rising energy prices.
Figure 4. Distribution of Energy Use in the Steel Industry
Source: BPPT (2013)
In the Figure 4 above, it can be seen
that the steel industry uses energy for the
scrap smelting process, heat treatment and
metal forming as well as the finishing
process. The largest percentage of energy
consumption is for the steel making
process of 61,5%, reheating 24,2%, metal
forming (rolling) 14,1%, and 0,2% for the
office (Pengkajian & Teknologi, 2012).
In this study, researchers observed the
potential and strategy of developing
magnetic generator energy in terms of
efficiency and cost effectiveness when
applied to the steel making process carried
out at the Hot Strip Mill 2 (HSM 2) unit,
arguing that the use of various types of
energy is greatest in the production flow of
steel products. at PT. XYZ is found in the
steel making process. The existence of HSM
2 in all facilities and steel production lines
is presented in 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
989 | Potential Utilization of Magnetic Generator Energy (EGM) as a Substitute for Alternative
Energy Sources in the Steel Production Process of PT. XYZ - Indonesia
the use of electricity by 58% of the entire steel production process (PT. XYZ , 2018).
Table 1. Energy Sources and Proportion of Energy Consumption in the Steel
Production Process of PT. XYZ
No
Source of Energy
Usage Allocation
Percentage (%)
1
Natural gas
Cold rolling mill
10
Hot strip mill #2
0
Blast furnace complex
2
Hot strip mill
88
2
Electricity
Cold rolling mill
23
Hot strip mill #2
3
Blast furnace complex
12
Hot strip mill
58
Others
4
Source: PT. XYZ (2018)
Potential Development of Magnetic
Generator Energy at PT. XYZ
1. Analysis of Break Even Point (BEP)
Based on the results of research on
data on electrical energy consumption,
electrical energy costs, steel production
capacity In HSM 2 (2019-2020),
researchers carried out data processing
followed by calculations aimed at
obtaining the value of each energy
being compared, namely the total cost
(TC), the break-even point of
production capacity (Q.BEP), the break-
even point of time capacity (T.BEP) and
the effective cost. The calculation of the
break-even point analysis on
production capacity (Q.BEP) and
against time (T.BEP) will produce
answers regarding the minimum
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
consumer of electrical energy
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 990
distributed by the State Electricity
Company (PLN). VC1 in steel production
uses electrical energy used by PT. XYZ
currently comes from PLN whose value
depends on the amount of energy
consumption in kWh units. The amount
of electrical energy consumption is
influenced by its production capacity,
so the variable costs are:
Variable Cost
(VC1), 10 kW 1
year
= 1 year production
capacity (Q) x Specific
electrical energy costs
= 513,99 Ton x Rp.
167.550,06/Ton
= Rp. 86.118.336,00
Total Cost
(TC1), 10 kW 1
year
= FC1 (Fix Cost) + VC1
(Variable Cost)
= Rp. 0,00 + Rp.
86.118.336,00
= Rp. 86.118.336,00
The component of using magnetic
generator energy costs consists of 2
types of components, namely a fixed
cost component (FC2) and a variable
cost component (VC2). FC2 in steel
production uses a simulation of
electrical energy from a magnetic
generator in the form of an initial
investment of purchasing 1 unit of GM
with an output power capacity of 10
kW. The FC2 value based on GM
reference products manufactured by
Infinity Sav is $15.000 USD or Rp.
212.840.250 installed as stated on the
official infinitysav.com page. 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.
5.700.185,60/yr
= Rp. 215.500.952,00
(initial investment
cost)
= Rp. 5.700.185,60
= FC2 (Fix Cost) + VC2
(Variable Cost)
= Rp. 215.500.952,00
+ Rp. 5.700.185,60
= Rp. 221.201.137,60
991 | Potential Utilization of Magnetic Generator Energy (EGM) as a Substitute for Alternative
Energy Sources in the Steel Production Process of PT. XYZ - Indonesia
The 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 5. Break-even Point Q.BEP
Source: Analysis of Research Result (2021)
Figure 6. Break-even Point T.BEP
Source: Analysis of Research Result (2021)
From the calculation or break-even
analysis, it is known that the investment
of a magnetic generator with a capacity
of 10 kW which is implemented in the
steel industry is able to generate more
profits compared to the previous use of
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 992
electrical energy when the minimum
production capacity (Q.BEP) = 2.055,94
tons steel and occurs in the period
(T.BEP) = 3rd year.
2. Cost Effective Analysys (CEA)
The cost-effective analysis (CEA)
process in the initial process is the same
as the break-even point analysis (BEP)
process, which starts with calculations
to obtain cost components in the form
of variable costs and fixed costs. The
calculation of BEP analysis is based on
cost components without considering
the influence of “time value of money”,
while the CEA is based on cost
components in the form of fixed costs
and variable costs that consider the
value of money against time. The total
investment costs that will be incurred
until the end of the project period are
depreciated or affected by inflation. By
using the cost component data that has
been calculated in the previous
subchapter, it is processed using the
following formulation:
nt
tttt
r
MO
INPC
0
0)1(
)(
nr
eAP
NPC
C
,
)/(
n
n
nr rr
r
AP )1(
1)1(
/,
Description: NPC = Net
Present Cost
Io = Investment cost at t = 0
Ot = Operational costs at t = n
Mt = Operational &
Maintenance costs (O&M) at t =
i
T = Time from t = 0 till t = n
N = End of project cycle
R = Interest rate
Ce = Cost Effective throughout
the project cycle
(P/A)r,n = Annualized NPC at
certain value of r and n
Based on the results of the
calculation of the cost-effective
analysis, it is known that the total
discounted cost during the cycle time n
= 20 years of existing electrical energy
(NPC1) = Rp. 1.170.376.290,53, while the
discounted total cost of magnetic
generator energy (NPC2) = Rp.
329.504.664,00, the effective costs of
Ce1 and Ce2 are as follows:
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DOI : 10.36418/jrssem.v1i8.125 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
Figure 7. NPC and CE
Source: Analysis of Research Result (2021)
The results of the CEA calculation
show that the effective cost of existing
energy (Ce1) is Rp. 86.118.336,00, while
the effective cost of GM energy (Ce2) is
Rp. 21.557.122,85, in other words that
the effective cost of magnetic
generator (Ce2) < the effective cost of
existing electrical energy (Ce1). The two
analyzes (BEP and CEA) are limited by
the condition that the economic
variables other than the fixed cost and
variable cost components are assumed
to be the same (ceteris paribus). With
the results of the two analyzes, it can be
interpreted that EGM is feasible and has
the potential to be developed and
applied as a new alternative energy to
replace the old energy (derived from
electricity), because the cost of
production factors from energy
components can be minimized. The
cost of steel production which can be
minimized through the development
and application of the magnetic
generator will have an impact on the
competitiveness of PT. XYZ.
CONCLUSIONS
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. From the comparison of the
cost-effective analysis (CEA) between EGM
and existing electrical energy, it is known
that the effective cost of EGM with a
capacity of 10 kW is smaller than the
effective cost of existing energy, namely
(Ce2 = Rp. 21.557.122,85) < (Ce1 = Rp.
86.118.336,00), then the application of EGM
in PT. XYZ will be more effective than
existing electrical energy. The results of the
two analyzes are limited by the condition
that the economic variables other than the
fixed cost and variable cost components
are assumed to be the same (ceteris
Moch.Kuswanto, Abraham Benedict Cahyasusila, Rudy Agus Gemilang Gultom | 994
paribus). With the value of the results of the
BEP and CEA analysis, it is concluded that
from a review of the economic aspects of
EGM, it has the potential as an alternative
to substitute new energy sources at PT.
XYZ, of course, this requires further studies
that are more in-depth and technical in
nature.
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