Economics of small scale biogas


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Presentation by Kealan Gell of the British Community Composting Network held at the biogas information seminar in Wageningen the Netherlands, 4 October 2009, organized by the Wageningen Environmental Platform & the Community Composting Network

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Economics of small scale biogas

  1. 1. Small Scale Anaerobic Digestion in the Industrialized World: An Introduction
  2. 2. Economics of small scale biogas and the closed loop Kealan Gell October 4, 2009 Droevendaal, Wageningen
  3. 3. 12 months ago… Objectives To review small scale AD projects in industrialized countries To investigate the potential of small scale AD for CCN members To gauge CCN member interest in AD Outline Introduction What has been done? Economic assessment of small projects Potential for the community sector Conclusion References Community Biogas Report
  4. 4. Case Studies Common large projects in the industrialized world On-farm manure digesters Centralized MSW, etc digesters Common small projects in the developing world On-site manure and household waste Small projects in the industrialized world Industrial Effluent and Septic Tanks Dry Digestion Farm Digesters Residential and Household Sewage Research and Pilot Projects Past Projects Community Biogas Report
  5. 5. Traditional Economics: Financial Cost-Benefit is the single largest barrier to small AD projects in the UK Community Biogas Report Cost Digester requires valuable buckets of water and human labour £ 41/ year poverty line in India (300m pple) Significant cost Training and time required for loading, monitoring process £ 6,000/ year for one part time person Maintenance and Operation -starting, loading, and operating the digester Benefit Crucial for those who depend directly on their local environment for food, water, shelter and materials. Not significant Environmental health such as water and soil quality are trivial to quality of life Environmental health - avoidance of pollution and resource depletion Significant benefit better than fresh manure for cropping £ 11.3 saved on fertilizer purchase Small benefit Nutrient rich effluent has low (negative) value Farming is not done locally Fertilizer production - 40 to 160 Litres per day of NPK rich liquid Significant benefit 4 hours of cooking fuel per day £ 30.0/ year on wood + less deforestation £ 18.0/ year on kerosene in rural India Benefit 12kWh ( £1 .20 ) per day, £ 438 per year Not as clean as natural gas, requires compression, equipment, etc Energy production - 400 to 3200 Litres of biogas per day Significant benefit Reduces health problems by 1/2 Small herds of livestock for feedstock No benefit directly to user Cheap sewer and landfill Consistent feedstock not available Waste treatment - all faeces and food from several houses of people and animals India United Kingdom Annual Cost/ Benefit of one 4 m 3 digester
  6. 6. Non-Traditional Economics Decentralized AD optimizes: Sustainability Greenhouse gas balance Resource depletion Water, soil and air pollution Benefits to Society Costs of overall infrastructure Energy and food self sufficiency Community Biogas Report
  7. 8. EF HDI GDP ?
  8. 9. EF HDI GDP ?
  9. 10. Resources Waste
  10. 11.
  11. 12. Business Plan Micro Blackwater Plants Kealan Gell
  12. 13. 2008 2009 2010 2011 2012 2013 175k 450k € Profit
  13. 14. Total Investment: 175k R & D 50 000 Capital 25 000 Production 100 000 Total Profit after 3 Years: 450k + 30k/ year Service Installation Price 100 /month + 11 000 Cost 50/ month + 2000 Profit 50 /month + 9 000 Profit x 50 Units 30 000/ year + 450 000
  14. 15. <ul><li>Our Team </li></ul><ul><li>K. Gell </li></ul><ul><li>Management Experience </li></ul><ul><li>Design Experience </li></ul><ul><li>CCN Steering Group </li></ul><ul><li>Network of Clients </li></ul><ul><li>LeAF </li></ul><ul><li>Technical Experience </li></ul>
  15. 16. <ul><li>Customer </li></ul><ul><li>CCN Members </li></ul><ul><li>Leading Edge Businesses </li></ul><ul><li>Small Communities </li></ul><ul><li>Advantage </li></ul><ul><li>Green Feeling and PR </li></ul><ul><li>Affordable </li></ul><ul><li>Biogas (€300 /year) </li></ul><ul><li>Local Energy and Food Security </li></ul>
  16. 17. <ul><li>Product </li></ul><ul><li>Simple On-site Biogas System </li></ul><ul><li>Lease with Service Package </li></ul><ul><ul><li>struvite fertilizer collection </li></ul></ul><ul><li>Proven and Demonstrated </li></ul><ul><li>Health and Safety Guarantee </li></ul><ul><li>Future potential </li></ul><ul><ul><li>fuel cells </li></ul></ul><ul><ul><li>integrated gardens </li></ul></ul>
  17. 18. <ul><li>Competitors </li></ul><ul><li>2 years research by LeAF and CCN </li></ul><ul><li>Too big, complex and expensive </li></ul><ul><li>No network and service package </li></ul><ul><li>Not H&S compliant </li></ul>
  18. 19. LeAF Phase 1 Report: Review of Equipment
  19. 20. The €200 System