Guideline For Financing Agricultural Biogas Projects

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)
Knigstor 59
34119 Kassel, Germany
June 2011
This Project (Contract No. IEE/09/848/SI2.558364) is supported by:
D.3.7 Training material for biogas investors
Table of content
Preface ................................................................................................................................ 3
1.
Introduction .............................................................................................................. 3
2.
Project idea............................................................................................................... 4
3.
Financing inquiry by banks..................................................................................... 5
4.
Economic calculation .............................................................................................. 8

4.1.
4.2.
4.3.
5.
Financing checklist ......................................................................................................... 10

Example: Economic calculation of a biogas investment ................................................. 12
Sensitivy analysis ........................................................................................................... 14
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
Ferber E., Rutz D. (2011) Options for financing biogas plants
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]
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.
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
Table 1: Assumptions for the economic calculation of biogas plants in Germany
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
Assumptions can vary from country to country.
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]
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:
Capital from investment funds, total:
The approval decision for subsidies is available.
Funding amount:
2. Costs
The following costs, structured according to the projects steps, are considered in the calculation:
Planning phase:
O
Costs for planning (engineering office)
Costs for permissions
Costs for environmental impact studies (if necessary)
Grid connection costs
Development charges
Construction phase:
O
Investment costs digester
Investment costs CHP
Investment costs other technical components
Start-up phase:
10
Extra costs for electricity and heat during the start-up
Calculation of lower revenues through electricity sale
Costs for inoculation (if necessary)
Operation phase:
Feedstock transport costs
Administration costs
Cultivation costs for energy crops (if

necessary)
Accountancy costs
Process heat and electricity
Fees for the electric meter
Digestate transport costs
Lawyers fees
Maintenance costs
Leasing costs for agricultural land
Insurance
Labor costs
Other costs
3. Revenues
The following revenues are considered in the calculation:
O
Savings through own electricity consumptions
Savings through own heat consumption
Revenues through the sale of electricity
Revenues through the sale of heat
Revenues through the sale of digestate
Revenues from waste management
11
4.2.
Example: Economic calculation of a biogas investment
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
Table 3: Detailed calculation of a 200 kWe biogas plant

Investment
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Measurement and control technology
Heating system
Feedstock storage
Digestate storage
Planning and Permission
Total
...per installed electric performance
Funds
Pulling down and disposal (end of lifetime)
Annual Expenditure
Cost of equity
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Planning and permission
Funding and subsidies
Pulling down and disposal (after lifetime)
Subtotal
Maintenance, Repairs
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
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
Annual revenues
Electricity sales
Waste heat utilization (own farm)
Waste heat sales
Combined heat and power bonus (until 50 kW)
Nutrition value (digestate)
Total annual revenues
Yield
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
1%
5%
1,3
1%
5%
1%
1%
2%
1%
from initial value

from initial value
ct/kWhel
from initial value
from initial value
from initial value
from initial value
from initial value
from initial value
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
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,
Expertise in the field of biogas
long-time employee etc.)
(e. g. by training, internship etc.)
Please name your motivation for constructing of a biogas plant:

Which changes in your business do you expect?
Source: D. Rutz, et al (2010): Criteria to assess biogas investments: Guidelines for financing institutes and
investors
15
2. Planned biogas plant

Type of installation:
Plant for dedicated energy crops in conformity of EEG:
Utilisation of heat:
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:
_____________________________________________
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

3
[m ]
slurry storage
already existing
silo for feedstock
main fermenter
secondary
fermenter
digestate storage
o
o
Stirring technology:
number of stirrers
type of stirrers
manufacturer
Combined heat and power plants:

number
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
o with support of manufacturer
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
species
number
type of animal breeding
arable land
grassland
animals
Feedstock:
type
17
supplier
available
amount/year (t)
price/t in Euro
cost per year
3. Cost and financing plan

Cost for
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
Explanation of cost and financing plan:

1) Other costs
other costs caused by
costs in Euro
- interst rate during construction phase

- charges, additional costs
- costs of first substrate charge
-
2) Origin of equity capital

3) Incentives
4) Own labour contribution
incentive donors
submission date
date of approval
type of labour
value in Euro
5) Other loans
loan provider
interest rate
planned payback date
Construction timetable:
starting date of the construction
18
finalisation date of the construction
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)
____________
Last three income tax returns (each shareholder)
____________
Last three payslips (each shareholder) or last three annual balance sheets
____________
Tabular CV (in case of civil law association: only executive director)
____________
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
____________
Tabular CV of the executive director
____________
Confidential personal information of the executive director
____________
Abstract of the commercial register
____________
Land register map (including plot identification and subscription of the plant)
____________
Recent abstract of register of real estate of plant location
____________
Leasing contract (in case the applicant is not the land owner)
____________
Insurance offer (e.g. machinery breakage, business interruption, public liability)
____________
Details of the cost and financing plan
____________
Offers for all relevant parts of the plant
____________
Contract of heat delivery and heat quantity (in case of heat utilization)
____________
Economic efficiency calculation
____________
Commitment of grid access by electricity distributor
____________
Building permission and other permissions required to build and operate the plant
____________
Substrate delivery and contracts for sale of digestate
____________
Project documentation
19
Appendix 2: Sensitive analysis: 10 % higher investment

Investment
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Total
Funds
Annual Expenditure
Cost of equity
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Insurance
Labor costs
CHP pilot fuel
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat sales
Nutritient value (digestate)
Yield
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
1%
5%
1,3
1%
5%
1%
1%
2%
1%
from initial value

from initial value
ct/kWhel
from initial value
from initial value
from initial value
from initial value
from initial value
from initial value
0
from initial value
h/d
15,00
l/a
0,60
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
Appendix 3: Sensitive analsis: reduced CHP full load hours

Investment
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Total
Funds
Annual Expenditure
Cost of equity
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Insurance
Labor costs
CHP pilot fuel
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat sales
Yield
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
1%
5%
1,3
1%
5%
1%
1%
2%
1%
from initial value

from initial value
ct/kWhel
from initial value
from initial value
from initial value
from initial value
from initial value
from initial value
0,005
from initial value
h/d
15,00
l/a
0,60
kWhel/yr
13,00
50
20
30
20
1400000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
Appendix 4: Sensitive analysis: Higher rate of waste heat utilization

Investment
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Total
Funds
Annual Expenditure
Cost of equity
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Digester
Pumps and stirrer
CHP
4%
20
10
7
20
7
10
10
20
20
20
20
20
interest rate
1%
5%
1,3
Power connection
1%
Feeding system
5%
1%
Heating system
1%
Feedstock storage
2%
Digestate storage
Subtotal
1%
from initial value

from initial value
ct/kWhel
from initial
value
from initial
value
from initial
value
from initial
value
from initial
value
from initial
value
Insurance
Labor costs
CHP pilot fuel
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat sales
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
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
Appendix 5: Sensitive analysis: higher interest rates

Investment
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Total
Funds
Annual Expenditure
Cost of equity
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Insurance
Labor costs
CHP pilot fuel
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat sales
Yield
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
1%
5%
1,3
1%
5%
1%
1%
2%
1%
from initial value

from initial value
ct/kWhel
from initial value
from initial value
from initial value
from initial value
from initial value
from initial value
0,005
from initial value
h/d
15,00
l/a
0,60
kWhel/yr
13,00
50
20
30
20
1560000
50000
30%
/kWel
kWhel/yr
kWhtherm/yr
CHP coefficient
m
/h
/l
Appendix 6: Sensitive analysis: Reduction of feed-in tariffs

Investment
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Total
Funds
Annual Expenditure
Cost of equity
Digesters
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Digester
Pumps and stirrer
CHP
Power connection
Feeding system
Heating system
Feedstock storage
Digestate storage
Subtotal
Insurance
Labor costs
CHP pilot fuel
Subtotal
Feedstock costs
Maize
Ley crop silage
Rye silage
Crops
Manure
Digestate spreading
Subtotal
Total costs
Annaul revenues
Electricity sales
Waste heat sales
Yield
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
1%
5%
1,3
1%
5%
1%
1%
2%
1%
from initial value

from initial value
ct/kWhel
from initial value
from initial value
from initial value
from initial value
from initial value
from initial value
0,005
from initial value
h/d
15,00
l/a
0,60
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]
< 150 kWel
11.5
< 500 kWel
9.9
< 5 MWel
8.9
< 20 MWel
8.4
25

Guideline For Financing Agricultural Biogas Projects

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Guideline For Financing Agricultural Biogas Projects

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IEE Project BiogasIN

Guideline for financing agricultural biogas projects

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

D.3.7 Training material for biogas investors

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

Economic calculation .............................................................................................. 8

Financing checklist ......................................................................................................... 10

D.3.7 Training material for biogas investors

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

D.3.7 Training material for biogas investors

Figure 1: Biogas plant site [Fraunhofer IWES]

D.3.7 Training material for biogas investors

3. Financing inquiry by banks

D.3.7 Training material for biogas investors

D.3.7 Training material for biogas investors

D.3.7 Training material for biogas investors

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

The costs for maintenance include a reserve for replacement investment

Insurance costs are normally at 0.5 to 1 % of the total investment costs

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

Leasing costs for

Depending on the region. Necessary to consider if the energy crops are

For instance business management.

CHP full load hours

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

Feedstock costs in Germany are normally calculated according to gas

Assumptions can vary from country to country.

D.3.7 Training material for biogas investors

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

D.3.7 Training material for biogas investors

Capital from investment funds, total:

The approval decision for subsidies is available.

Costs for planning (engineering office)

Costs for permissions

Costs for environmental impact studies (if necessary)

Grid connection costs

Investment costs digester

Investment costs CHP

Investment costs other technical components

Extra costs for electricity and heat during the start-up

Calculation of lower revenues through electricity sale

Costs for inoculation (if necessary)

D.3.7 Training material for biogas investors

Feedstock transport costs

Cultivation costs for energy crops (if

Process heat and electricity

Fees for the electric meter

Digestate transport costs

Leasing costs for agricultural land

Savings through own electricity consumptions

Savings through own heat consumption

Revenues through the sale of electricity

Revenues through the sale of heat

Revenues through the sale of digestate

Revenues from waste management

D.3.7 Training material for biogas investors

Example: Economic calculation of a biogas investment

D.3.7 Training material for biogas investors

Table 3: Detailed calculation of a 200 kWe biogas plant

from initial value

D.3.7 Training material for biogas investors

D.3.7 Training material for biogas investors

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