economics of small scale biogas

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Mic Small Scale Anaerobic Digestion in the Industrialized World: An Introduction

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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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Page 1: Economics of small scale biogas

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Small Scale Anaerobic Digestion in the Industrialized World:An Introduction

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Economics of small scale biogas and the closed loop

Kealan Gell

October 4, 2009Droevendaal, Wageningen

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12 months ago…

Objectives

To review small scale AD projects in industrialized countriesTo investigate the potential of small scale AD for CCN membersTo gauge CCN member interest in AD

Outline

IntroductionWhat has been done?Economic assessment of small projectsPotential for the community sectorConclusionReferences

Community Biogas Report

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Case Studies

Common large projects in the industrialized worldOn-farm manure digestersCentralized MSW, etc digesters

Common small projects in the developing worldOn-site manure and household waste

Small projects in the industrialized worldIndustrial Effluent and Septic TanksDry DigestionFarm DigestersResidential and HouseholdSewageResearch and Pilot ProjectsPast Projects

Community Biogas Report

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Traditional Economics: Financial Cost-Benefit is the single largest barrier to small AD projects in the UK

Community Biogas Report

Annual Cost/ Benefit of one 4 m3 digester

United Kingdom India

Waste treatment

- all faeces and food from several houses of people and animals

No benefit directly to user

Cheap sewer and landfillConsistent feedstock not available

Significant benefit

Reduces health problems by 1/2Small herds of livestock for feedstock

Energy production

- 400 to 3200 Litres of biogas per day

Benefit

12kWh (£1.20 ) per day, £438 per yearNot as clean as natural gas, requirescompression, equipment, etc

Significant benefit

4 hours of cooking fuel per day £ 30.0/ year on wood + less

deforestation£ 18.0/ year on kerosene in rural India

Fertilizer production

- 40 to 160 Litres per day of NPK rich liquid

Small benefit

Nutrient rich effluent has low (negative) value

Farming is not done locally

Significant benefit

better than fresh manure for cropping£11.3 saved on fertilizer purchase

Environmental health

- avoidance of pollution and resource depletion

Not significant

Environmental health such as water andsoil quality are trivial to quality of life

Benefit

Crucial for those who depend directlyon their local environment for food,water, shelter and materials.

Maintenance and Operation

-starting, loading, and operating the digester

Significant cost

Training and time required for loading,monitoring process£6,000/ year for one part time person

Cost

Digester requires valuable buckets ofwater and human labour£41/ year poverty line in India (300m

pple)

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Non-Traditional Economics

Decentralized AD optimizes:

SustainabilityGreenhouse gas balanceResource depletionWater, soil and air pollution

Benefits to SocietyCosts of overall infrastructureEnergy and food self sufficiency

Community Biogas Report

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EF HDI GDP?

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EF HDI GDP?

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Resources Waste

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Business PlanMicro Blackwater

PlantsKealan Gell

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2008 2009 2010 2011 2012 2013

175k

450k

Profit

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Total Investment: 175k

R & D 50 000Capital 25 000Production 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

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Our Team•K. GellManagement ExperienceDesign Experience

•CCN Steering GroupNetwork of Clients

•LeAFTechnical Experience

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Customer• CCN Members• Leading Edge Businesses• Small Communities

Advantage• Green Feeling and PR• Affordable • Biogas (€300 /year)• Local Energy and Food Security

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Product• Simple On-site Biogas System• Lease with Service Package

• struvite fertilizer collection• Proven and Demonstrated• Health and Safety Guarantee• Future potential

• fuel cells • integrated gardens

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Competitors2 years research by LeAF and CCN •Too big, complex and expensive No network and service package• Not H&S compliant

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LeAF Phase 1 Report: Review of Equipment

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The €200 System

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