Beruflich Dokumente
Kultur Dokumente
Henning Hahn
Fraunhofer Institute for Wind Energy and Energy System Technology (IWES)
Knigstor 59
34119 Kassel, Germany
June 2011
Table of content
Preface ................................................................................................................................ 3
1.
Introduction .............................................................................................................. 3
2.
Project idea............................................................................................................... 4
3.
4.
5.
Appendixes ............................................................................................................. 15
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 Italy1 as well as the reports Criteria to assess biogas investments:
Guidelines for financing institutes and investors2 and Options for financing biogas plants3 which
were elaborated in the framework of the BiogasIN project.
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
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.
Smoothing of work peaks through different harvesting periods for cash crops (e.g.wheat) and energy crops
(e.g. maize).
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).
peripheral
equipment
30%
planning and
permission
7%
power
connection
3%
digesters
37%
CHP
23%
Figure 3: Example of the investment cost structure of a typical agricultural biogas plant in Germany (200 KWe)
internal
activity; 5%
equity capital;
15%
subsidy
(federal state)
10%
KfW loan;
40%
loan; 30%
Figure 4: Example of the financing cost structure of a typical agricultural biogas plant in with 200 KWe in
Germany
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.
5
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
Insurance cost
Own electricity
consumption
Other costs
Feedstock costs
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.
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
Subsidies from:
Funding amount:
2. Costs
The following costs, structured according to the projects steps, are considered in the calculation:
Planning phase:
O
Development charges
Construction phase:
O
Start-up phase:
10
Operation phase:
Administration costs
Accountancy costs
Lawyers fees
Maintenance costs
Insurance
Labor costs
Other costs
3. Revenues
The following revenues are considered in the calculation:
O
11
4.2.
This chapter presents the economy of an agricultural biogas plant with 200 kW el in Germany (Start
up of the biogas plant was 2006). 200 kW el 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 croplands biomass consitst of 50 ha maize, 50 ha
rye and 20 ha grassland. The digester volume at 1 400 m 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 /kW el. 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 510 % 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.
12
13
3
0
7%
109200
ha
ha
ha
ha
2910
0,78
2910
155 000
45 000
140 000
20 000
40 000
15 000
25 000
120 000
60 000
40 000
660 000
3 300
-75 000
30 000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
11 405
5 548
23 325
1 472
6 664
1 849
3 082
8 830
4 415
2 943
-5 519
1 007
65 023
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
1 550
2 250
20 280
200
2 000
150
250
2 400
600
29 680
3 300
13 688
ct/kWhel
/yr
/yr
/yr
14 196
2 000
33 184
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61 850
20 540
29 580
18 000
0
0
129 970
257 856
16,96
6,00
421200
3,00
2,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
264 576
3 000
/yr
/yr
/yr
/yr
/yr
12 636
6 571
0
286 783
28 927
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
1%
5%
1%
1%
2%
1%
0,005
from initial value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
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.
14
5. Appendixes
Appendix 1: Example of a Credit Request Form
1. Applicant
Full name
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
Source: D. Rutz, et al (2010): Criteria to assess biogas investments: Guidelines for financing institutes and
investors
15
o no
o yes
o yes
o no
consumer of heat
kWh/a
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:
_____________________________________________
o applicant
o planner
o ______________________________
manufacturer
design (e.g.
concrete, steel
etc.)
slurry storage
already existing
main fermenter
secondary
fermenter
digestate storage
o
o
Stirring technology:
number of stirrers
type of stirrers
manufacturer
16
manufacturer
kW per unit
guaranteed efficiency
design
o gas engine
o pilot injection engine
o gas engine
o pilot injection engine
Micro-biology:
Biological control
and operation
o by plant operator
Entries in the land register of the plant location (e.g. land charge, right of way, ect.)
Existing buildings: o No
o yes: _____________________________________________________________
o No
o yes
percentage of leased
property
species
number
arable land
grassland
animals
Feedstock:
type
17
supplier
available
amount/year (t)
price/t in Euro
Financed by
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
costs in Euro
incentive donors
submission date
date of approval
type of labour
value in Euro
5) Other loans
loan provider
interest rate
Construction timetable:
starting date of the construction
18
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
____________
____________
Last three payslips (each shareholder) or last three annual balance sheets
____________
____________
Company contract
____________
Personal documentation in case of legal person (private limited partnership, limited company,
corporation, ect.)
Last three balance sheets as well as recent business analysis
____________
____________
____________
____________
Land register map (including plot identification and subscription of the plant)
____________
____________
Leasing contract (in case the applicant is not the land owner)
____________
____________
____________
____________
Contract of heat delivery and heat quantity (in case of heat utilization)
____________
____________
____________
Building permission and other permissions required to build and operate the plant
____________
____________
Project documentation
19
20
3
0
7%
109200
ha
ha
ha
ha
2910
0,78
2910
170500
49500
154000
22000
44000
16500
27500
132000
66000
44000
726000
3630
-75000
30000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
12546
6103
25658
1619
7331
2034
3391
9713
4856
3238
-5519
1007
71976
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
1705
2475
20280
220
2200
165
275
2640
660
30620
3630
13688
ct/kWhel
/yr
/yr
/yr
14196
2000
33514
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61850
20540
29580
18000
0
0
129970
266080
16,96
6,00
421200
3,00
2,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
264576
3000
/yr
/yr
/yr
/yr
/yr
12636
6571
0
286783
20703
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
1%
5%
1%
1%
2%
1%
0
from initial value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
21
3
0
7%
98000
ha
ha
ha
ha
2910
0,78
2910
155000
45000
140000
20000
40000
15000
25000
120000
60000
40000
660000
3300
-75000
30000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
11405
5548
23325
1472
6664
1849
3082
8830
4415
2943
-5519
1007
65023
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
1550
2250
18200
200
2000
150
250
2400
600
27600
3300
13688
ct/kWhel
/yr
/yr
/yr
12740
2000
31728
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61850
20540
29580
18000
0
0
129970
254320
16,96
6,00
378000
2,00
3,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
237440
3000
/yr
/yr
/yr
/yr
/yr
7560
8845
0
256845
2525
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
1%
5%
1%
1%
2%
1%
0,005
from initial value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
50
20
30
20
1400000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
Power connection
1%
Feeding system
5%
1%
Heating system
1%
Feedstock storage
2%
Digestate storage
Subtotal
1%
Insurance
Labor costs
CHP pilot fuel
Own electrical consumption
Others (accounting, advising, etc.)
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat utilization (own farm)
Waste heat sales
Combined heat and power bonus (until 50 kW)
Nutritient value (digestate)
Total annual revenues
Yield
22
/kWel
155000
45000
140000
20000
40000
15000
25000
120000
60000
40000
660000
3300
-75000
30000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
11405
5548
23325
1472
6664
1849
3082
8830
4415
2943
-5519
1007
65023
/yr
/yr
/yr
1550
2250
20280
/yr
200
/yr
2000
/yr
150
/yr
250
/yr
2400
/yr
/yr
600
29680
/yr
/yr
/yr
3300
13688
from initial
value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
/h
/l
ct/kWhel
/yr
/yr
/yr
14196
2000
33184
50
20
30
20
ha
ha
ha
ha
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
2910
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61850
20540
29580
18000
0
0
129970
257856
16,96
6,00
702000
3,00
2,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
264576
3000
/yr
/yr
/yr
/yr
/yr
21060
10951
0
299587
41731
0,005
3
0
7%
109200
1560000
50000
50%
0,78
2910
kWhel/yr
kWhtherm/yr
CHP coefficient
m
23
3
0
7%
109200
ha
ha
ha
ha
2910
0,78
2910
155000
45000
140000
20000
40000
15000
25000
120000
60000
40000
660000
3300
-75000
30000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
13514
6114
25079
1744
7165
2038
3397
10462
5231
3487
-6539
1007
72699
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
1550
2250
20280
200
2000
150
250
2400
600
29680
3300
13688
ct/kWhel
/yr
/yr
/yr
14196
2000
33184
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61850
20540
29580
18000
0
0
129970
265533
16,96
6,00
421200
3,00
2,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
264576
3000
/yr
/yr
/yr
/yr
/yr
12636
6571
0
286783
21250
6%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
1%
5%
1%
1%
2%
1%
0,005
from initial value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
24
3
0
7%
109200
ha
ha
ha
ha
2910
0,78
2910
155000
45000
140000
20000
40000
15000
25000
120000
60000
40000
660000
3300
-75000
30000
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
11405
5548
23325
1472
6664
1849
3082
8830
4415
2943
-5519
1007
65023
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
1550
2250
20280
200
2000
150
250
2400
600
29680
3300
13688
ct/kWhel
/yr
/yr
/yr
14196
2000
33184
1237,00
1027,00
986,00
900,00
/ha
/ha
/ha
/ha
/yr
/yr
/yr
/yr
/yr
/yr
/yr
/yr
61850
20540
29580
18000
0
0
129970
257856
15,96
6,00
421200
3,00
2,00
0,00
ct/kWhel
ct/kWhtherm
kWhtherm/yr
ct/kWhtherm
ct/kWhel
/m
/yr
/yr
248976
3000
/yr
/yr
/yr
/yr
/yr
12636
6571
0
271183
13327
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
years depreciation period
1%
5%
1,3
1%
5%
1%
1%
2%
1%
0,005
from initial value
h/d
15,00
l/a
0,60
of electricity production
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
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]
11.5
9.9
< 5 MWel
8.9
< 20 MWel
8.4
25