Nonmarket cobenefits and economic feasibility of on-farm biogas energy production

Standard analysis of the economic feasibility of on-farm biogas energy production tend to emphasize primarily on direct financial benefits to farmers, and abstracts from the nonmarket cobenefits associated with anaerobic digestion of livestock manure and other biomass feedstock. This shortcoming of the standard feasibility analysis raises a fundamental question: How is the economic feasibility of on-farm anaerobic biogas energy production affected by the associated nonpecuniary cobenefits? Incorporating key nonmarket cobenefits from biogas energy production extends the standard economic feasibility analysis, and provides important insights. When nonmarket cobenefits were excluded, on-farm biogas energy production was generally not financially feasible for the dairy and swine farm size ranges studied (except for 600- and 800-sow farms). Overall, results of the financial feasibility analysis did not change compared to a base scenario (without nonmarket cobenefits) when an estimated annual total nonmarket cobenefits of CND$5000 was incorporated into the analysis, for both dairy and swine farms. Biogas energy production was generally financially viable for small-size dairy (i.e., 50-cow) and swine (i.e., 200-sow) farms when the nonmarket cobenefits were valued at CND$15,000 (or higher). Improvements in financial feasibility were more dramatic for dairy than for swine farms.     

A comparison of the drivers influencing adoption of on-farm anaerobic digestion in Germany and Australia

This review examines the drivers behind the adoption of on-farm anaerobic digestion in Germany where there were more than 4000 plants operating in 2009. In Australia, only one plant is operating, at a piggery in the State of Victoria. Germany’s generous feed-in-tariffs for renewable energy are typically given the credit for promoting investment in on-farm anaerobic digestion. But the particular biophysical and socio-economic character of farming in the country provided the fertile ground for these financial incentives to take root. Energy security has also been a major driver for the promotion of renewable energy in Germany since it imports over 60% of its energy needs. In contrast, Australia is a net energy exporter, exporting about two-thirds of its domestic energy. Although it has considerable potential for application in Australia, anaerobic digestion is unlikely to be widely adopted unless new incentives emerge to strongly encourage investment. Stronger Australian regulation of manures and effluent may serve as an incentive to a limited extent in the future. Yet the experience in Germany suggests that regulation on its own was not sufficient to encourage large numbers of farmers to invest in anaerobic digestion. Even with generous incentives from the German government, increasing construction costs and the rising cost of energy crops can put the financial viability of anaerobic digestion plants at risk. Unless improvements in efficiency are found and implemented, these pressures could lead to unsustainable rises in the cost of the incentive schemes that underpin the development of renewable energy technologies.     

Upgrading biogas produced at dairy farms into renewable natural gas by methanation

Renewable natural gas can be produced from raw biogas, a product of the anaerobic decomposition of organic material, by upgrading its CO₂ content (25‐50%) via thermocatalytic hydrogenation (CO₂ methanation). The H₂ needed for this reaction can be generated by water electrolysis powered by carbon emission‐free energy sources such as renewable or nuclear power, or using surplus electricity. Herein, after briefly outlining some aspects of biogas production at dairy farms and highlighting recent developments in the design of methanation systems, a case study on the renewable natural gas generation is presented. The performance of a system for renewable natural gas generation from a 2000‐head dairy farm livestock manure is evaluated and assessed for its economic potential. The project is predicted to generate revenue through the sale of energy and carbon credits with the payback period of 5 years, with a subsidized energy price.     

When does decentralized production of biogas and centralized upgrading and injection into the natural gas grid make sense?

The production of biogas through anaerobic digestion is one of the technological solutions to convert biomass into a readily usable fuel. Biogas can replace natural gas, if the biogas is upgraded to green gas. To contribute to the EU-target to reduce Green House Gases emissions, the installed biogas production capacity and the amount of farm-based biomass, as a feedstock, has to be increased. A model was developed to describe a green gas production chain that consists of several digesters connected by a biogas grid to an upgrading and injection facility. The model calculates costs and energy use for 1 m³ of green gas. The number of digesters in the chain can be varied to find results for different configurations. Results are presented for a chain with decentralized production of biogas, i.e. a configuration with several digesters, and a centralized green gas production chain using a single digester. The model showed that no energy advantage per produced m³ green gas can be created using a biogas grid and decentralized digesters instead of one large-scale digester. Production costs using a centralized digester are lower, in the range of 5 €ct to 13 €ct per m³, than in a configuration of decentralized digesters. The model calculations also showed the financial benefit for an operator of a small-scale digester wishing to produce green gas in the cooperation with nearby other producers. E.g. subsidies and legislation based on environmental arguments could encourage the use of decentralized digesters in a biogas grid.     

A mathematical,economic and energetic appraisal of biomethane and biohydrogen production from Brazilian ethanol plants' waste: Towards a circular and renewable energy development

The high production of sugarcane in Brazil and its application of ethanol and sugar production results in a higher generation of vinasse and bagasse. The treatment of these residues can be carried out using anaerobic co-digestion procedures. Besides promoting waste treatment, it enables energy exploration through biogas and hydrogen generation. Bioenergy use can also generate steam in sugar and alcohol plants by burning, sugarcane milling, fueling vehicles for the transport of products, among others. These energy applications allow total and efficient, energetic exploring of sugarcane. Hence, this study estimated the production of methane, hydrogen, thermal and electrical energy generated from vinasse and bagasse in the autonomous and annexed Brazilian ethanol and sugar plants. Three scenarios present the use of biogas generated: Scenario 1: energy use of all methane from biogas; Scenario 2: hydrogen production from the remaining methane, after considering the energy autonomy of the ethanol plants; Scenario 3: hydrogen production from all the methane generated. All the scenarios which considered the use of methane led to energy self-sufficiency in the sector. However, only annexed plants present economic feasibility for implementing the project. Scenario 2 is highlighted in this study, once beyond the sector's energetic self-sufficiency, the operational conditions enabled the storage of 9.26E+07 Nm³.d^?1 of hydrogen, equal 3.04E+08 ton per year. CH₄ and H₂ production seen in a global scenario of circular economy and energy security have high benefits, contributing to the gradual transformation of an economy dependent on non-renewable resources into a circular and renewable economy.     

Economic analysis of renewable heat and electricity production by sewage sludge digestion—a case study

In this paper, we assess the total cost of energy recovery from sewage sludge through anaerobic digestion with biogas utilization in combined heat and power (CHP) system. The important advantage of anaerobic digestion process is the production of biogas, which can be used to generate electricity and heat as a source of renewable energy. From this study, it can be retained that the generated thermal energy from the anaerobic digestion process meets the needs of the wastewater treatment plant (WWTP) and guarantees its self‐sufficiency in heat. The surplus of renewable heat produced by CHP is not a primary factor to improve the economic viability of the process. Moreover, the sales of electricity output represent about 76% of the operating costs of anaerobic digestion process. Renewable energy production is not economically viable by its own, without considering the wastewater treatment function and the associated incomes. Nevertheless, sludge digestion helps to reduce the wastewater treatment costs mainly by giving a good source of revenue via electricity production. Copyright © 2014 John Wiley & Sons, Ltd.     

Optimal and cost-effective industrial biomethanation of tobacco

Extremadura is a Spanish south western region located by the Portuguese border. For decades, tobacco has been traditionally cultivated in Cáceres, the north province of such region. As a result, farmers in the area have extensive experience with this crop, and a fresh tobacco annual production is therefore guaranteed. This way, tobacco plant appears as an excellent candidate as energy crop.The present work reports on the economic viability of the anaerobic digestion of tobacco plant under the two following scenarios: 1) biogas generated in the biological process to be used as fuel to produce heat, thus avoiding the consumption of any other fossil fuel; 2) electric and thermal power generated by the anaerobic digestion plant to be self-consumed or sold to nearby industries.The mesophilic anaerobic digestion experiments carried out in semicontinuous mode yielded the highest methane production (53.84 ± 15.48 Nm³CH₄/t fresh tobacco) for substrate composition 15% fresh tobacco/85% water and 16 days degradation period.However, such methane yield by anaerobic digestion was seen not to meet economic feasibility requirements. Instead, methane production rates should be increased up to 90 and 110 Nm³ methane/t fresh tobacco (1500 €/ha production costs) in order to achieve 8.91 and 9.08 years for investment return according to scenarios 1 and 2, respectively.     

Rewarding energy savings rather than energy efficiency: Exploring the concept of a feed-in tariff for energy savings

Financial incentives are important for overcoming certain market barriers to improved energy efficiency and for the adoption of energy efficient technologies. Financial incentives are mainly focused on the introduction of specific technologies, rather than behavioural change. While the declared goal of financial support schemes very often is to save energy or reduce harmful emissions rather than to foster new technologies per se, it is often encountered that such financial support for energy efficient technologies may not ensure real energy savings due to the rebound effect and various market barriers.In the area of renewable energies it is common for financial support to be given to power producers for the verified production of renewable electricity, in the form of a guaranteed financial incentive (feed-in tariff). In the energy efficiency policy research little attention has been paid to the possible use of a “feed-in tariff” in the form of a financial incentive based on the kWh saved by the end-user. This paper discusses the possible setup of a feed-in tariff designed to reward energy savings.     

Simulation of a solar‐biogas hybrid energy system for heating,fuel supply,and power generation

Biogas production from organic wastes has been widely utilized for several decades, but maintaining right temperature for anaerobic bacteria is a challenge. In order to overcome the inhibition of the bacteria growth and biogas production due to the low temperature, a solar‐biogas hybrid energy system for heating, fuel supply, and power generation has been proposed for converting domestic garbage into biogas in a rural area of China. In this system, the solar energy has been included as one of the heating sources during an anaerobic digestion process. A mathematical model has been developed to evaluate the influence of system operating characteristics. Based on the simulation results, the biogas production rate, thermal efficiency, temperature of the digester, energy distributions in the system, optimal operating parameters, economic efficiency, and thermodynamic characteristics of the system were analyzed. The impact of solar irradiation on the efficiency of the system was also studied. According to the results, in cloudy days, the reactor volume and solar collector area greatly influenced the steady energy supply. In winter, the produced biogas is mostly utilized by the aided boiler to maintain the proper organic mixture temperature in the bioreactor. Heat loss from bioreactor dramatically increases the organic mixture volume. Per simulation, the longest return on the investment of this type of the biogas system is about 5.54 years, and the shortest return on the investment is less than 4 years if the battery is removed and the electric grid can be used. Therefore, in this study, the feasibility of a hybrid energy system for converting domestic garbage into energy has been validated. Copyright © 2017 John Wiley & Sons, Ltd.     

Life Cycle Energy Assessment of biohydrogen production via biogas steam reforming: Case study of biogas plant on a farm in Serbia

The aim of this paper is to demonstrate and to quantify energy flows in a life cycle of biogas to biohydrogen production, starting from feedstock materials via anaerobic digestion, biogas upgrading, biohydrogen production, to the end of biogas system (application of digestate as fertilizer in agriculture). The performance of the biogas plant of Mirotin dairy farm in Serbia has been assessed. According to Life Cycle Energy Assessment approach, results obtained in this study have shown that biohydrogen production via biogas steam reforming has negative energy balance (with ?16,837 GJ). It has also been demonstrated that this process is energy unsustainable in an environmental context. In future analysis it would be necessary to consider the other aspects of sustainability, e.g. the economical and social factors in order to estimate the overall sustainability of the biogas utilization pathways, especially having in mind that the technology of converting biogas to hydrogen is still in the development phase.     

A comprehensive review on pretreatment of microalgae for biogas production

Use of microalgal biomass for renewable energy production has gained considerable attention in the world due to increasing global energy demand and negative environmental impacts of nonrenewable fossil fuels. Anaerobic digestion is one of the renewable technologies that microalgal biomass is converted into biogas by anaerobic archea. One of the main drawbacks of using microalgal biomass for biogas production is that certain types of microalgae has rigid cell wall characteristics, which limits accessibility of anaerobic archea to microalgal intracellular organic matter during hydrolysis phase. This limitation lowers efficiency of biogas production from microalgal biomass. However, introducing pretreatment methods prior to anaerobic digestion provides disruption of rigid microalgal cell wall and improve biogas yields from microalgal biomass. The objective of this paper was to review current knowledge related to pretreatment methods applied prior to anaerobic digestion of microalgal biomass. Efficiency and applicability of pretreatment methods mainly depend on type of microalgae, cell wall characteristics, and cost and energy requirements during pretreatment process. In this review, various type of pretreatment methods applied to microalgal biomass was discussed in detail with background knowledge and literature studies in their potential on maximization of biogas yields and their cost effectiveness, which is important for large‐scale applications. In the view of current knowledge, it was concluded that each pretreatment method has a relative contribution to improvement in biogas production depending on the type of microalgae. However, energy and cost requirements are the main limitations for pretreatment. So, further studies should focus on reduction of cost and energy demand by introducing combined methods, novel chemicals, and on‐site or immobilized enzymes in pretreatment to increase feasibility of pretreatment prior to anaerobic digestion in industrial scale.     

Estimate of the electric energy generating potential for different sources of biogas in Brazil

The increasing interest in the recuperation of the biogas coming from organic residues, associated with its energetic use is a subject that has been widely discussed. Biogas was merely seen as a sub-product obtained from anaerobic decomposition (without oxygen) of organic residue. In the paper is carried out an evaluation of the quantities of organic residues coming out from the sugar and alcohol industry (vinasse), urban solid and liquid wastes (garbage and sewage) and livestock residues (bovine and swine manure) in Brazil. Finally the electricity generation potential of biogas out of the evaluated sources of organic residues in Brazil is estimated. The results of this study indicate that the potential regarding the production of biogas out of the aforementioned organic residues of electricity production using could meet an energy demand of about 1.05 to 1.13 %. Constraints for biogas energy utilization are identified and discussed.     

Energy and environmental balance of biogas for dual-fuel mobile applications

Considerable research is currently being devoted to seeking alternative fuels to comply with transportation needs while reducing the environmental impact of this sector. Within the transport activity sector, on road vehicles and agricultural machinery require around 2 Mtoe energy in France. The anaerobic digestion of farm waste could roughly cover these needs. This paper aims to study the environmental and energy interest of this short power supply path. An ideal biogas production system has been built up from the average characteristics of current rural biogas plants in France. Pollutant emissions, energy demands and production are assessed for various scenarios in order to produce methane for dual fuel engines. Life cycle assessment (LCA) is used to evaluate the environmental impact of dual fuel agricultural machines, compared to diesel engines. The energy balance is always in disfavour of biogas fuel, whereas LCA energy indicators indicate a benefit for biogas production. This gap is related to the way in which the input of biomass energy is handled: in conventional biofuel LCA, this energy is not taken into account. A carbon balance is then presented to discuss the impact of biogas on climate change. Dual fuel engines were found to be interesting for their small impact. We also show, however, how the biogenic carbon assumption and the choice of allocation for the avoided methane emissions of anaerobic digestion are crucial in quantifying CO₂ savings. Other environmental issues of biogas fuel were examined. Results indicate that are management and green electricity are the key points for a sustainable biogas fuel. It is concluded that biofuel environmental damage is reduced if energy needs during biofuel production are covered by the production process itself. As agricultural equipment is used during the biofuel production process, this implies that a high substitution rate should be used for this equipment.     

Assessing the potential for the uptake of on-farm anaerobic digestion for energy production in England

We report on an assessment of the potential for energy production from on-farm anaerobic digestion (AD) in England based on findings from a survey of farmers where it was found that around 40% of 381 respondents might install AD on their farms. These ‘possible adopters’ tended to have large farms and might together utilise some 6560 ha of land for feedstock production along with the wastes from some 12,000 beef and dairy cattle and 9000 pigs. When raised to the national level, such a level of AD activity would produce around 3.5 GWh of electricity. This approximates to just 0.001% of national electricity generation. Further, there are considerable perceived barriers to the widespread adoption of AD on farms in England; these include the high capital costs of installing AD and doubts about the economic returns being high enough.     

Household biogas development in rural China: On policy support and other macro sustainable conditions

As a fuel, rural biogas is a promising renewable energy source. Policy support is a key initial impetus for industry development. This study explores household biogas development in rural China based on policy support found in literature. Relevant policies, which mainly include directive and guiding policies, economic inspiring policies, research policies, market policies, and other constructive policies, are gradually issued. Moreover, the National People's Congress has enacted five relevant laws, including the Agricultural Law, Renewable Energy Law, Animal Husbandry Law, Energy Conservation Law, and the Act on the Development of Circular Economy. The Energy Law is currently under revision. Relational rules and regulations have also been formed in response to the national policies and laws, which have already produced significant effects. The development of rural household biogas in China is growing steadily, and the technology standard projects have been established. The number of household biogas digesters and biogas annual output in 2010 was double of that in 2005. The offered financial incentive increased from 47 million dollars in 2002 to 760 million dollars in 2011. Policy supports play an important role in rural biogas development. And thus, additional national policy supports are necessary in the fields of scientific research, technological development, and biogas use model.     

Evaluation of marine algae as a source of biogas in a two-stage anaerobic reactor system

The marine algae are considered an important biomass source; however, their utilization as energy source is still low around the world. The technical feasibility of marine algae utilization as a source of renewable energy was studied to laboratory scale. The anaerobic digestion of Macrocystis pyrifera, Durvillea antarctica and their blend 1:1 (w/w) was evaluated in a two-phase anaerobic digestion system, which consisted of an anaerobic sequencing batch reactor (ASBR) and an upflow anaerobic filter (UAF). The results show that 70% of the total biogas produced in the system was generated in the UAF, and both algae species have similar biogas productions of 180.4(±1.5) mL g⁻¹ dry algae d⁻¹, with a methane concentration around 65%. The same methane content was observed in biogas yield of algae blend; however, a lower biogas yield was obtained. In conclusion, either algae species or their blend can be utilized to produce methane gas in a two-phase digestion system.     

Techno‐economic assessment for energy generation using bagasse: case study

Bagasse is selected as the biomass source that is studied because of its annual significant rate production in Iran and potential for energy generation. Bagasse has been as an energy source for the production of energy required to run the sugar factory. The energy needed by factories was supplied by burning bagasse directly inside furnaces, which had an exceptionally low output. To this end, today, a secondary use for this waste product is in combined heat and power plants where its use as a fuel source provides both heat and power. In addition, low efficiency of traditional methods was caused to increase the use of modern methods such as anaerobic digestion, gasification and pyrolysis for the production of bio‐fuels. In this paper, the energy conversion technologies are compared and ranked for the first time in Iran. Therefore, the most fundamental innovation of this research is the choice of the best energy conversion technology for the fuel production with a higher efficiency. To assess the feasibility application and economic benefit of biogas CHP plant, a design for a typical biogas unit is programmed. The results show the acceptable payback period; therefore, economically and technically, biogas CHP plant appears to be an attractive proposition in Iran. Copyright © 2012 John Wiley & Sons, Ltd.     

Green finance and the economic feasibility of hydrogen projects

This paper studies the economic and financial feasibility analysis of hydrogen energy projects in China to identify appropriate green financing solutions for them. Cost-benefit and sensitivity analysis approaches were carried out for the three hydrogen projects in Guangdong province (two cases) and Jiang Xi province (one case). The hydrogen projects are more sensitive to borrowing interest rates and income tax rates, amongst other financing costs. The main reasons are the capital-intensive nature of green energy projects and the role of tax in the rate of return of green projects in the long term. The optimal weight of bank loans for the studied hydrogen projects in China was calculated at nearly 56%, meaning the weight of green bonds is approximately 44%. In other words, diversifying financing channels instead of just relying on bank loans is recommended to reduce the financing risk and capital cost. As a major policy implication, we recommended various de-risking tools, such as the green credit guarantee corporation, to attract private investments in hydrogen projects.     

Economics of anaerobic digestion in organic agriculture: Between system constraints and policy regulations

During its pioneer-stage in Germany, the generation of power and heat from anaerobic digestion (AD) was predominantly developed on organic farms. However, biogas production in organic agriculture (OR) never expanded to the same extent as in conventional farming (CV). Besides various other aspects, this appears to be mainly due to economic reasons related to system-specific production requirements. Therefore, this article analyses the framework conditions of organic biogas generation and assesses its monetary implications on production economics. The structural and economic comparison of organic and conventional generation of power from biogas displays systematic constraints for AD in OR and identifies advantages of conventional biogas plants, particularly concerning lower capital and biomass input costs. Moreover, frequently changing policy regulations, further aggravating the economic situation for biogas production in both farming systems, are reflected. Our study shows that the recent developments of political frameworks will inhibit biogas investments for nearly all types of biogas plants in Germany. Finally, an alternative evaluation approach for organic AD systems, considering monetary benefits from agronomic effects of an integrated biogas generation in organic agriculture is discussed.     

Prospective application of farm cattle manure for bioenergy production in Portugal

Biogas is a promising renewable fuel, which can be produced from a variety of organic raw materials and used for various energetic purposes, such as heat, combined heat and power or as a vehicle fuel. Biogas systems implementation are, therefore, subjected to several support measures but also to several constraints, related with policy measures on energy, waste treatment and agriculture. In this work, different policies and policy instruments, as well as other factors, which influence a potential expansion of Portuguese biogas systems are identified and evaluated. The result of this analysis shows that the use of the cattle manure for biogas production is still far from its potential. The main reason is the reduced dimension of the Portuguese farms, which makes biogas production unfeasible. Various options are suggested to increase or improve biogas production such as co-digestion, centralized plants and modular plants. Horizontal digesters are the most suitable for the typical Portuguese plant size and have the advantage of being also suitable for co-digestion due to the very good mixing conditions. Mesophilic anaerobic digestion due to a more robustness, stability and lower energy consumption should be the choice. The recent increase in the feed-in tariffs for the electricity production based on anaerobic digestion biogas is seen as a political push to this sector.