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Unprofitability of small biogas plants without subsidies in the Brandenburg region

Authors: Zhien Zhang; Judith González-Arias; Judith González-Arias; Miriam González-Castaño; Harvey Arellano-Garcia; Francisco M. Baena-Moreno; Francisco M. Baena-Moreno; +2 Authors

Unprofitability of small biogas plants without subsidies in the Brandenburg region

Abstract

The circular economy is calling for the rapid use of already-developed renewable energies. However, the successful implementation of those new fuels is limited by economic and political issues. For instance, in the Brandenburg region, Germany, biogas production from anaerobic digestion of biomass and wastes is a current alternative. However, the upgrading biogas to biomethane is still challenging and the economic viability is unknown. Therefore, we performed an economic analysis for biogas upgrading to biomethane in the Brandenburg region. Five biogas plant sizes were analyzed by the method of discounted cash flow. This method yields the net present value of the projects, thus revealing the profitability or non-profitability of the plants. Results indicate profitable outputs for medium and large plants, with net present values between 415 and 7009 k€. However, the smallest plants have net present values from -4250 to -3389 k€, thus needing further economic efforts or subsidies to reach profitability. Indeed, biomethane prices should range between 52.1 and 95.6 €/MWh to make these projects profitable. Combinations of 50% of investment subsidized and 11.5 €/MWh feed-in tariffs subsidies could make the projects reach profitability. These findings reveal that political actions such as green policies and subsidies are needed to implement green energy. This case study should serve as a potential tool for policy-makers toward a sustainable bioeconomy.

Country
France
Keywords

[SDE] Environmental Sciences, 330, Green energy, 710, Energy independence, Waste valorization, 333, Biogas upgrading, [SDE]Environmental Sciences, [CHIM] Chemical Sciences, Brandenburg development, [CHIM]Chemical Sciences, Biomethane production

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    24
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
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    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
24
Top 10%
Top 10%
Top 10%