Guideline for Financing Agricultural Biogas Projects

This Project (Contract No. IEE/09/848/SI2.558364) is supported by:

IEE Project ‘BiogasIN’

Guideline for financing agricultural biogas projects

- Training material for biogas investors

D.3.7, WP 3

Henning Hahn

Fraunhofer Institute for Wind Energy and Energy System Technology (IWES)

Königstor 59

34119 Kassel, Germany

June 2011

D.3.7 Training material for biogas investors

2

Table of content

Preface ................................................................................................................................ 3

1. Introduction .............................................................................................................. 3

2. Project idea ............................................................................................................... 4

3. Financing inquiry by banks ..................................................................................... 5

4. Economic calculation .............................................................................................. 8 4.1. Financing checklist ......................................................................................................... 10 4.2. Example: Economic calculation of a biogas investment ................................................. 12 4.3. Sensitivy analysis ........................................................................................................... 14

5. Appendixes ............................................................................................................. 15


3

Preface

The BiogasIN project “Development of sustainable biogas markets in Central and Eastern Europe” (Contract No. IEE/09/848) is supported by the European Commission in the “Intelligent Energy for Europe” Programme. The objective of BiogasIN is to effectively improve the framework conditions for the installation of new biogas plants in 7 Eastern European countries: Bulgaria, Croatia, Czech Republic, Greece, Latvia, Romania and Slovenia.

BiogasIN consists of 10 European partner organisations. The project is coordinated by the Croatian Energy Institute “Hrvoje Pozar”.

The sole responsibility for the content of this publication lies with the authors. It does not necessarily reflect the opinion of the European Communities. The European Commission is not responsible for any use that may be made of the information contained herein.

1. Introduction

There are many good reasons to implement a biogas plant ranging from environmental protection and waste reduction to renewable energy production. It can also include financial and non-financial incentives. Nevertheless, investors of biogas projects should be well informed about different legal requirements and financing possibilities.

The guideline will help to analyse a potential biogas investment by describing its most important steps. The guideline starts with the project idea and a first feasibility check of the project. The chapter financing inquiry informs about all necessary information banks need to evaluate the financing volume and risks of projects. An economic calculation provides an overview about costs and revenues of a biogas plant. Furthermore, a sensitive analysis informs about cost positions mainly influencing the overall profitability of a biogas project.

For further information on financing options and revenues from biogas plants please also see the best practice report “Examples for financing of biogas projects in Germany, Austria, The Netherlands, Denmark and Italy”1 as well as the reports “Criteria to assess biogas investments: Guidelines for financing institutes and investors”2 and “Options for financing biogas plants”3 which were elaborated in the framework of the BiogasIN project.

1 Hahn H., Rutz D., Ferber E., Kirchmayer F. (2010) Examples for financing of biogas projects in Germany,

Austria, The Netherlands, Denmark and Italy. Report of the BiogasIN Project

2 Ferber E., Rutz D. (2011) Criteria to assess biogas investments: Guidelines for financing institutes and

investors. Report of the BiogasIN Project

3 Ferber E., Rutz D. (2011) Options for financing biogas plants


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2. Project idea

Starting point of each biogas project is the project idea. The aims of implementing a biogas project differ from environmental protection and waste reduction to renewable energy production, and include financial and non-financial incentives.

Before consulting a bank for financing a biogas project it is necessary to define a specific biogas project idea. This idea should describe the aim of the biogas project as well as the capacity of the investor to realise the project. Furthermore, it is important to explain how continues and uniform feedstock supply can be secured and where the biogas plant site should be located.

Requirements for the implementation of a biogas project are, besides the availability of the feedstock supply, the possibility of selling or using the generated electricity or the produced biomethane, heat and the residues. Furthermore, it is necessary to check if the project can be realized under the local conditions. If the feasibility study was successful an experienced biogas consulting company should be involved in the preliminary planning of the project and your bank has to be contacted. In the same step the financing plan should be developed.

Figure 1 shows a typically biogas plant site.

Figure 1: Biogas plant site [Fraunhofer IWES]


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3. Financing inquiry by banks

Starting point of a financing inquiry by banks is always a comprehensive project description. Banks offer loan request forms in order to help the applicant to collect all necessary information for the bank internal financing inquiry. An example of a credit application is attached to this report in the Appendix. This example is based on several credit request forms by German banks and considers different project aims to provide an overview about the requested information/documents especially for biogas projects.

Banks analyse the documents and request additional information if needed. Based on the evaluation of all documents, banks are able to evaluate the risk factors and credit worthiness of biogas projects. When the credit is granted the applicant is bound by contract to the credit agreement of the bank. Payments will be made depending on the construction progress of the biogas plant.

The following list provides an overview about the usual required documents for the financing inquiry by banks:

Comprehensive project description

Proposal from the biogas plant manufacturer or planner

Business plan

Necessary permissions for the implementation of the biogas plant

Feedstock supply contracts

Grid injection contracts for the generated electricity or upgraded biogas (biomethane)

Contracts for the waste heat utilization

Most banks evaluate biogas projects according to assessment criteria of project financing standards (based on a cash flow analysis). Banks distinguish between agricultural biogas plants financed by farmers and biogas plants financed by investors. Investors normally expect a higher return on investments (more than 10 %) than farmers do. Farmers generally also finance biogas projects with lower financial profitability due to other advantages of biogas projects for their farms (nutrient management, manure utilization, smoothing of work peaks4 ...).

Identification/Calculation of financing requirements

Investment costs have comprehensively be determined for the evaluation of the financial requirements. Most of the investment includes costs for the digester and the gas technology with the CHP. Additional costs have to be allocated for feeding systems, storage silos, electricity and gas grid connection, infrastructure and other technical equipment, costs for project development, planning and engineering, legal and tax advice, notary and land register fees, bank charges as well as a possible disagio. These additional costs represent a considerable amount of the total initial investment.

Furthermore, it is necessary to plan the operational equipment exactly. A lack of revenues during the start-up of a biogas plant is normally considered in the calculation. Thus, the loan repayment starts in general after the first or second year of operation. An overview about the financial liquidity during the project duration is given in Figure 2.

4 Smoothing of work peaks through different harvesting periods for cash crops (e.g.wheat) and energy crops

(e.g. maize).


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Figure 2: Overview on the financial liquidity during the project duration [modified after DKB 2010]

The necessary amount of equity capital (including internal activities) for biogas plants financed through project financing should be at least 20 % and in average between 20 and 30 % of the total investment. The needed equity is calculated individually for each project.

Loans for biogas projects have normally a maximum financing period of 15 years with a 1 to 2 years period of grace.

Financing conditions (e.g. interest rates) are defined depending on the financial risk of the project. The financing structure of a biogas project in Germany is in general optimized by involving loans with favourable interest rates from the kfW-Bankengruppe, the European investment bank, Council of European Development Bank or the Landwirtschaftliche Rentenbank.

A good overview about a common investment and financing cost structure of a 200 kWe biogas plant is given by the following two diagrams (see Figure 3 and Figure 4).


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Figure 3: Example of the investment cost structure of a typical agricultural biogas plant in Germany (200 KWe)

Figure 4: Example of the financing cost structure of a typical agricultural biogas plant in with 200 KWe in Germany

digesters37%

CHP23%

power connection

3%

peripheral equipment

30%

planning and permission

7%

KfW loan; 40%

loan; 30%

subsidy (federal state)

10%

internal activity; 5%

equity capital; 15%


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4. Economic calculation

In order to propose an adequate financing option, adapted to the specific needs of your project, banks require all documents about the technical concept of the planned biogas plant and its economic calculation. This calculation comprises a cost calculation as well as a calculation of benefits. The cost calculation includes all investment costs, annual expenditures, operation costs and maintenance costs as well as costs for financing.

In general banks make a rough calculation using common assumptions for specific cost positions to identify the financial requirements of a project. Table 1 provides general assumptions commonly used to identify financing requirements of biogas projects.

Table 1: Assumptions for the economic calculation of biogas plants in Germany5

Initial investment The initial investment costs for a 150 to 500 kWe agricultural biogas plant range from 3 000 to 4 000 €/kWe. Biogas plants with a capacity of more than 500 kWe requires in general lower specific investment (Figure 5).

Operational costs Staff costs for operating the biogas plant can be estimated at 0.5 to 1.5 €cent/kWe.

or:

9.6 working hours per kWe and year (75kWe) to 4 working hours per KWe and year (1 000 kWe)

Maintenance costs The costs for maintenance include a reserve for replacement investment (e.g. CHP general overhaul after 6 years) and can be estimated at 2.5 €cent/kWh.

Insurance cost Insurance costs are normally at 0.5 to 1 % of the total investment costs (for one year).

Own electricity consumption

Can be estimated at 7 % of the generated electricity used for the own electrical consumption.

Costs for electricity not generated by the own plant are 15 €Cent/kWh.

Leasing costs for agricultural land

Depending on the region. Necessary to consider if the energy crops are cultivated by the owner of the biogas plant and not on his own land.

Other costs For instance business management.

CHP full load hours Average full load hours are 7 500 to 8 000 hours/yr.

Feedstock costs Feedstock costs in Germany are normally calculated according to gas yield equivalents of maize silage at:

35 €/t (FM= fresh matter) maize silage

5 Assumptions can vary from country to country.


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Figure 5 provides an overview about the economy of scale effect of the initial investment depending on the biogas plant size. The graph was developed with general values calculated by the average investment of German biogas plants.

Figure 5: Initial investment depending on the biogas plant capacity [€/kWe]


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4.1. Financing checklist

Financing a biogas project is a complex issue. The following list can be used to control that every important cost location is considered in your calculation.

Table 2: Financing checklist

1. Equity capital

Ammount of available equity capital:

Type of equity capital:

O Equity from the biogas plant operator/ from the project company

O Subsidies from: Funding amount:

O Capital from investment funds, total:

O The approval decision for subsidies is available.

2. Costs

The following costs, structured according to the projects steps, are considered in the calculation:

Planning phase:

O Costs for planning (engineering office)

O Costs for permissions

O Costs for environmental impact studies (if necessary)

O Grid connection costs

O Development charges

Construction phase:

O Investment costs digester

O Investment costs CHP

O Investment costs other technical components

Start-up phase:

O Extra costs for electricity and heat during the start-up

O Calculation of lower revenues through electricity sale

O Costs for inoculation (if necessary)


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Operation phase:

Feedstock transport costs O Administration costs O

Cultivation costs for energy crops (if necessary)

O Accountancy costs O

Process heat and electricity O Fees for the electric meter O

Digestate transport costs O Lawyer´s fees O

Maintenance costs O

Leasing costs for agricultural land O

Insurance O

Labor costs O Other costs O

3. Revenues

The following revenues are considered in the calculation:

O Savings through own electricity consumptions

O Savings through own heat consumption

O Revenues through the sale of electricity

O Revenues through the sale of heat

O Revenues through the sale of digestate

O Revenues from waste management


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4.2. Example: Economic calculation of a biogas investment

This chapter presents the economy of an agricultural biogas plant with 200 kWel in Germany (Start up of the biogas plant was 2006). 200 kWel installed capacity is a typical plant size for agriculture biogas plants. In this example a group of farmers are feedstock suppliers and operators of the biogas plant.

The calculation provides an overview about all relevant costs and revenues of biogas plants. The subsequent sensitive analysis points out how changes of some variable cost positions can influence the economy of biogas projects.

Feedstock for the biogas production

This biogas plant is fed with manure of 150 livestock units (correlates to 100 dairy cows plus their breeding) and 120 hectare (ha) cropland. The cropland´s biomass consitst of 50 ha maize, 50 ha rye and 20 ha grassland. The digester volume at 1 400 m³ is designed with space for future biogas plant enlargements.

Calculation of the investment

Total investment of the biogas plant is 700 000 €, which equates to a specific initial investment of 3 500 €/kWel. Each biogas plant component has its individual depreciation range. The CHP as well as the feeding systems have because of their high operational demands a depreciation period of 7 years, whereas physical structures have 20 years of depreciation.

The investment includes 75 000 € incentives granted by the federal state Hesse. Furthermore, the calculation includes 30 000 € for pulling down and disposal of the plant after its lifetime.

Annual costs of equity

A biogas investment results in annual costs of equity (interest payments and redemption) as well as in costs for maintenance and repair. Further costs are labour costs and electricity costs to run the pumps and stirrers. The necessary electricity used to run a biogas plant is calculated by 5-10 % of total electricity production. Normally, the electricity used to run the biogas plant is bought cheaper from external providers than to use the own produced electricity. Finally the feedstock prices are considered. Costs for spreading the digestate as well as its nutrient value are not considered in the calculation.

Revenues

The revenues are dominated by revenues for the sold electricity, which was sold for 16.96 ct/kWhel (taken the year 2006 as basis for the start up of the bigoas plant). The produced CHP waste heat (estimated thermal CHP efficiency is 45 %) is used as process heat for the digester heating system and to heat the own farmhouse. 30 % of the surplus waste heat (421 200 kWhtherm) is sold for external use. The combined heat and power bonus (2 ct per kWhel) is received for the whole waste heat which is not used as process heat to warm the digesters.

Yield

The calculation results in annual earnings of about 30 000 € which are already reduced by labor costs and costs of equity.

http://dict.leo.org/ende?lp=ende&p=Ci4HO3kMAA&search=asset&trestr=0x1001

http://dict.leo.org/ende?lp=ende&p=Ci4HO3kMAA&search=depreciation&trestr=0x1001

http://dict.leo.org/ende?lp=ende&p=Ci4HO3kMAA&search=range&trestr=0x1001


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Table 3: Detailed calculation of a 200 kWe biogas plant Investment Digesters

€ 155 000

Pumps and stirrer

€ 45 000 CHP

€ 140 000

Power connection

€ 20 000 Feeding system

€ 40 000

Measurement and control technology

€ 15 000 Heating system

€ 25 000

Feedstock storage

€ 120 000 Digestate storage

€ 60 000

Planning and Permission

€ 40 000 Total € 660 000

...per installed electric performance €/kWel 3 300 Funds

€ -75 000

Pulling down and disposal (end of lifetime) € 30 000

Annual Expenditure Cost of equity

4% interest rate

Digesters

20 years depreciation period

€/yr 11 405 Pumps and stirrer


€/yr 5 548

CHP


€/yr 23 325 Power connection


€/yr 1 472

Feeding system


€/yr 6 664 Measurement and control technology


€/yr 1 849

Heating system


€/yr 3 082 Feedstock storage


€/yr 8 830

Digestate storage


€/yr 4 415 Planning and permission


€/yr 2 943

Funding and subsidies


€/yr -5 519 Pulling down and disposal (after lifetime)


€/yr 1 007

Subtotal €/yr 65 023 Maintenance, Repairs

Digester

1% from initial value

€/yr 1 550 Pumps and stirrer


€/yr 2 250

CHP

1,3 ct/kWhel

€/yr 20 280 Power connection


€/yr 200

Feeding system


€/yr 2 000 Measurement and control technology


€/yr 150

Heating system


€/yr 250 Feedstock storage


€/yr 2 400

Digestate storage


€/yr 600 Subtotal €/yr 29 680 Insurance

0,005 from initial value

€/yr 3 300

Labor costs 3 h/d

15,00 €/h

€/yr 13 688 CHP pilot fuel 0 l/a

0,60 €/l

€/yr

Own electrical consumption 7% of electricity production

109200 kWhel/yr

13,00 ct/kWhel €/yr 14 196

Others (accounting, advising, etc.)

€/yr 2 000 Subtotal €/yr 33 184 Feedstock costs

Maize 50 ha

1237,00 €/ha

€/yr 61 850 Ley crop silage 20 ha

1027,00 €/ha

€/yr 20 540

Rye silage 30 ha

986,00 €/ha

€/yr 29 580 Crops 20 ha

900,00 €/ha

€/yr 18 000

Manure

€/yr 0 Digestate spreading 2910 m³

€/yr 0

Subtotal €/yr 129 970 Total costs €/yr 257 856

Annual revenues Electricity sales 1560000 kWhel/yr

16,96 ct/kWhel €/yr 264 576

Waste heat utilization (own farm) 50000 kWhtherm/yr

6,00 ct/kWhtherm €/yr 3 000 Waste heat sales 30%

421200 kWhtherm/yr

3,00 ct/kWhtherm €/yr 12 636 Combined heat and power bonus (until 50 kW) 0,78 CHP coefficient 2,00 ct/kWhel €/yr 6 571 Nutrition value (digestate) 2910 m³

0,00 €/m³

€/yr 0

Total annual revenues €/yr 286 783

Yield €/yr 28 927


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4.3. Sensitivy analysis

The following sensitvy analysis highlights effects of changes of most important cost positions. The calculation sheet of each sensitivy analysis is attached to this report in the appendix (Appendix 2 till Appendix 7). Effects on the total yield of changes of some cost positions are given:

Higher investment

10 % higher investment results in ca. 8 000 € less annual earnings

Less CHP full load hours

7 000 CHP full load hours instead of the originally targeted 7 800 hours results in 26 000

€ less annual earnings

Reduction of guranteed feed-in-tariff

The reduction of the guaranteed feed-in-tariff of 1 €cent/kWh to 15.96 €cent/kWh will lead

to 15 000 € less annual earnings

Higher interest rates

Higher interest rates from 4 % to 6 % will reduce the annual earnings by ca. 7 500 €

Higher share of waste heat utilization

If it is possible to sell 50 % of the produced waste heat for 3 cent/kWhtherm (which is

equivalent to the half price for fossil fuels) the annual earnings increase by ca. 16 000€

The sensitivity analysis shows that the economy of a biogas projects is mainly influenced by the share of waste heat utilization, the price of feed-in-tariffs, feedstock prices as well as the CHP full load operation hours.

Further information:

You can use a calculation tool for a case specific calculation of the economic forecast, allowing the preliminary estimation of costs, plant size, dimensioning, technical outline available for free download at http://www.big-east.eu/downloads/downloads.html.

http://www.big-east.eu/downloads/downloads.html


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5. Appendixes

Appendix 1: Example of a Credit Request Form6

1. Applicant

Full name

Street, postal code, city

Telephone

Fax

Cell phone

eMail - Address

Profession o Farmer o Employee o Self-employee o Other: _________________________

The operation and technical controlling of the plant is supervised by the following person:

Name Relation to plant operator (e. g. son,

long-time employee etc.)

Expertise in the field of biogas

(e. g. by training, internship etc.)

Please name your motivation for constructing of a biogas plant:

Which changes in your business do you expect?

6 Source: D. Rutz, et al (2010): Criteria to assess biogas investments: Guidelines for financing institutes and

investors


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2. Planned biogas plant

Type of installation:

Plant for dedicated energy crops in conformity of EEG: o yes o no

Utilisation of heat: o no o yes

Technical details:

o Purchase of a turn-key facility provided by the manufacturer: _______________________________________

o Purchase of a facility composed of equipment from different suppliers. Name of planner of the overall concept:

_____________________________________________

Construction management is done by: o applicant o planner o ______________________________

Fermenters and storage facilities:

number manufacturer design (e.g.

concrete, steel

etc.)

capacity per unit

[m3]

already existing

slurry storage

o

silo for feedstock

o

main fermenter

o

secondary

fermenter

o

digestate storage

o

Stirring technology:

number of stirrers type of stirrers manufacturer

Combined heat and power plants:

number manufacturer kW per unit guaranteed efficiency design

o gas engine

o pilot injection engine

consumer of heat kWh/a


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o gas engine

o pilot injection engine

Micro-biology:

Biological control o by plant operator o with support of manufacturer

and operation

o laboratory contract with _______________________________________________

Location:

exact address (street, postal code, city) as well as plot number

land owner (Name, Address)

Entries in the land register of the plant location (e.g. land charge, right of way, ect.)

Existing buildings: o No o yes: _____________________________________________________________

Access to public streets: o No o yes

Available agricultural land and number of animals of the applicant:

total area (ha) percentage of own property percentage of leased

property

arable land

grassland

species number type of animal breeding

animals

Feedstock:

type supplier available

amount/year (t)

price/t in Euro cost per year


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3. Cost and financing plan

Cost for

Financed by

Explanation of cost and financing plan:

1) Other costs

2) Origin of equity capital

3) Incentives

4) Own labour contribution

5) Other loans

Construction timetable:

planning €

CHP plant €

fermenter €

stirring technology €

electronic components €

liquidity reserve €

other €

=sum of costs €

equity capital €

incentives, support €

own resources €

other loans €

=sum of financing €

other costs caused by costs in Euro

- interst rate during construction phase

- charges, additional costs

- costs of first substrate charge

-

-

-

-

-

incentive donors submission date date of approval

- - -

- - -

type of labour value in Euro

-

-

-

loan provider interest rate planned payback date

starting date of the construction finalisation date of the construction


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4. Required documentation

For the credit application copies of the following documents are required. Please provide additional information if

necessary.

Type of documents:

Personal documentation in case of natural person / companies constituted

under civil law is attached submission date

Confidential personal information according to the forms (each shareholder) o ____________

Last three income tax returns (each shareholder) o ____________

Last three payslips (each shareholder) or last three annual balance sheets o ____________

Tabular CV (in case of civil law association: only executive director) o ____________

Company contract o ____________

Personal documentation in case of legal person (private limited partnership, limited company,

corporation, ect.)

Last three balance sheets as well as recent business analysis o ____________

Tabular CV of the executive director o ____________

Confidential personal information of the executive director o ____________

Abstract of the commercial register o ____________

Project documentation

Land register map (including plot identification and subscription of the plant) o ____________

Recent abstract of register of real estate of plant location o ____________

Leasing contract (in case the applicant is not the land owner) o ____________

Insurance offer (e.g. machinery breakage, business interruption, public liability) o ____________

Details of the cost – and financing plan o ____________

Offers for all relevant parts of the plant o ____________

Contract of heat delivery and heat quantity (in case of heat utilization) o ____________

Economic efficiency calculation o ____________

Commitment of grid access by electricity distributor o ____________

Building permission and other permissions required to build and operate the plant o ____________

Substrate delivery – and contracts for sale of digestate o ____________


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Appendix 2: Sensitive analysis: 10 % higher investment

Investment Digester

€ 170500

Pumps and stirrer

€ 49500 CHP

€ 154000

Power connection

€ 22000 Feeding system

€ 44000


€ 16500 Heating system

€ 27500

Feedstock storage

€ 132000 Digestate storage

€ 66000


€ 44000 Total € 726000

...per installed electric performance €/kWel 3630 Funds

€ -75000

Pulling down and disposal (end of lifetime) € 30000


4% interest rate

Digester


€/yr 12546 Pumps and stirrer


€/yr 6103

CHP


€/yr 25658 Power connection


€/yr 1619

Feeding system


€/yr 7331 Measurement and control technology


€/yr 2034

Heating system




€/yr 9713

Digestate storage


€/yr 4856 Planning and permission


€/yr 3238



€/yr -5519 Pulling down and disposal (after lifetime)


€/yr 1007

Subtotal €/yr 71976 Maintenance, Repairs

Digester




€/yr 2475

CHP

1,3 ct/kWhel



€/yr 220

Feeding system




€/yr 165

Heating system




€/yr 2640

Digestate storage


€/yr 660 Subtotal €/yr 30620 Insurance

0 from initial value

€/yr 3630

Labor costs 3 h/d

15,00 €/h

€/yr 13688 CHP pilot fuel 0 l/a

0,60 €/l

€/yr


109200 kWhel/yr

13,00 ct/kWhel €/yr 14196


€/yr 2000 Subtotal €/yr 33514 Feedstock costs

Maize 50 ha

1237,00 €/ha

€/yr 61850 Ley crop silage 20 ha

1027,00 €/ha

€/yr 20540

Rye silage 30 ha

986,00 €/ha

€/yr 29580 Crops 20 ha

900,00 €/ha

€/yr 18000

Manure


€/yr 0

Subtotal €/yr 129970 Total costs €/yr 266080

Annaul revenues Electricity sales 1560000 kWhel/yr

16,96 ct/kWhel €/yr 264576


6,00 ct/kWhtherm €/yr 3000 Waste heat sales 30%

421200 kWhtherm/yr

3,00 ct/kWhtherm €/yr 12636 Combined heat and power bonus (until 50 kW) 0,78 CHP coefficient 2,00 ct/kWhel €/yr 6571 Nutritient value (digestate) 2910 m³

0,00 €/m³

€/yr 0

Total annual revenues €/yr 286783

Yield €/yr 20703


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Appendix 3: Sensitive analsis: reduced CHP full load hours

Investment Digesters

€ 155000

Pumps and stirrer

€ 45000 CHP

€ 140000

Power connection


€ 40000



€ 25000

Feedstock storage


€ 60000


€ 40000 Total € 660000


€ -75000



4% interest rate

Digesters




€/yr 5548

CHP




€/yr 1472

Feeding system




€/yr 1849

Heating system




€/yr 8830

Digestate storage




€/yr 2943





€/yr 1007


Digester




€/yr 2250

CHP

1,3 ct/kWhel



€/yr 200

Feeding system




€/yr 150

Heating system




€/yr 2400

Digestate storage




€/yr 3300

Labor costs 3 h/d

15,00 €/h


0,60 €/l

€/yr


98000 kWhel/yr

13,00 ct/kWhel €/yr 12740



Maize 50 ha

1237,00 €/ha


1027,00 €/ha

€/yr 20540

Rye silage 30 ha

986,00 €/ha


900,00 €/ha

€/yr 18000

Manure


€/yr 0



16,96 ct/kWhel €/yr 237440



378000 kWhtherm/yr


0,00 €/m³

€/yr 0


Yield €/yr 2525


22

Appendix 4: Sensitive analysis: Higher rate of waste heat utilization


€ 155000

Pumps and stirrer

€ 45000 CHP

€ 140000

Power connection


€ 40000



€ 25000

Feedstock storage


€ 60000


€ 40000 Total € 660000


€ -75000



4% interest rate

Digesters




€/yr 5548

CHP




€/yr 1472

Feeding system




€/yr 1849

Heating system




€/yr 8830

Digestate storage




€/yr 2943





€/yr 1007


Digester




€/yr 2250

CHP

1,3 ct/kWhel

€/yr 20280

Power connection

1% from initial

value

€/yr 200

Feeding system

5% from initial

value

€/yr 2000


1% from initial

value

€/yr 150

Heating system

1% from initial

value

€/yr 250

Feedstock storage

2% from initial

value

€/yr 2400

Digestate storage

1% from initial

value

€/yr 600 Subtotal €/yr 29680

Insurance

0,005 from initial

value

€/yr 3300 Labor costs 3 h/d

15,00 €/h

€/yr 13688

CHP pilot fuel 0 l/a

0,60 €/l

€/yr Own electrical consumption 7% of electricity production

109200 kWhel/yr

13,00 ct/kWhel

€/yr 14196 Others (accounting, advising, etc.)

€/yr 2000

Subtotal €/yr 33184 Feedstock costs

Maize 50 ha

1237,00 €/ha


1027,00 €/ha

€/yr 20540

Rye silage 30 ha

986,00 €/ha


900,00 €/ha

€/yr 18000

Manure


€/yr 0



16,96 ct/kWhel

€/yr 264576

Waste heat utilization (own farm) 50000 kWhtherm/yr 6,00 ct/kWhtherm

€/yr 3000 Waste heat sales 50%

702000 kWhtherm/yr

3,00 ct/kWhtherm

€/yr 21060 Combined heat and power bonus (until 50 kW) 0,78 CHP coefficient 2,00 ct/kWhel

€/yr 10951

Nutritient value (digestate) 2910 m³

0,00 €/m³

€/yr 0 Total annual revenues €/yr 299587

Yield €/yr 41731


23

Appendix 5: Sensitive analysis: higher interest rates


€ 155000

Pumps and stirrer

€ 45000 CHP

€ 140000

Power connection


€ 40000



€ 25000

Feedstock storage


€ 60000


€ 40000 Total € 660000


€ -75000



6% interest rate

Digesters




€/yr 6114

CHP




€/yr 1744

Feeding system




€/yr 2038

Heating system




€/yr 10462

Digestate storage




€/yr 3487





€/yr 1007


Digester




€/yr 2250

CHP

1,3 ct/kWhel



€/yr 200

Feeding system




€/yr 150

Heating system




€/yr 2400

Digestate storage




€/yr 3300

Labor costs 3 h/d

15,00 €/h


0,60 €/l

€/yr


109200 kWhel/yr

13,00 ct/kWhel €/yr 14196



Maize 50 ha

1237,00 €/ha


1027,00 €/ha

€/yr 20540

Rye silage 30 ha

986,00 €/ha


900,00 €/ha

€/yr 18000

Manure


€/yr 0



16,96 ct/kWhel €/yr 264576



421200 kWhtherm/yr


0,00 €/m³

€/yr 0


Yield €/yr 21250


24

Appendix 6: Sensitive analysis: Reduction of feed-in tariffs


€ 155000

Pumps and stirrer

€ 45000 CHP

€ 140000

Power connection


€ 40000



€ 25000

Feedstock storage


€ 60000


€ 40000 Total € 660000


€ -75000



4% interest rate

Digesters




€/yr 5548

CHP




€/yr 1472

Feeding system




€/yr 1849

Heating system




€/yr 8830

Digestate storage




€/yr 2943





€/yr 1007


Digester




€/yr 2250

CHP

1,3 ct/kWhel



€/yr 200

Feeding system




€/yr 150

Heating system




€/yr 2400

Digestate storage




€/yr 3300

Labor costs 3 h/d

15,00 €/h


0,60 €/l

€/yr


109200 kWhel/yr

13,00 ct/kWhel €/yr 14196



Maize 50 ha

1237,00 €/ha


1027,00 €/ha

€/yr 20540

Rye silage 30 ha

986,00 €/ha


900,00 €/ha

€/yr 18000

Manure


€/yr 0



15,96 ct/kWhel €/yr 248976



421200 kWhtherm/yr


0,00 €/m³

€/yr 0


Yield €/yr 13327


25

Appendix 7: Feed in tariffs according to the German Renewable Energy Act from 2004

Basic tariff (2004)

Bonus for energy crops

Bonus for CHP

Technology bonus

[ct/kWel] [ct/kWel] [ct/kWel] [ct/kWel]

< 150 kWel 11.5 6 2 2

< 500 kWel 9.9 6 2 2

< 5 MWel 8.9 4 2 2

< 20 MWel 8.4 0 2 0

Documents

Guideline for Financing Agricultural Biogas Projects