№B 38
Biogas production plant
Note: Bank financing of 50% of the project cost is possible, provided that the consortium will own 5% of the biogas plant. This means that, if desired, the investor can purchase 95% of the project and receive favorable financing from the bank.
Description
Investment Project. Biogas Production Plant. Germany HIGH PROFITABILITY OBJECT NO. B 38 Biogas production plant with 2 co-generators: one with a capacity of 500 kW and the other with 851 kW. Location: Germany Land: 32,000 m² is included in the price of the project and will be owned by the buyer. Project: The project is being implemented in the form of a GmbH (German limited liability company). The biogas production plant is currently under construction. The planned commissioning is Q1 2020. Equipment: The biogas production plant includes: fermenters (preliminary and main), silo bunker, secondary fermenter (tank for further fermentation), sludge and residual mass storage, artificial pond, tank (gas reservoir), gas compressor, automatic control panel, transformer, Co-generator 1 - 500 kW. Co-generator 2 - 851 kW Flex - flexible operation schedule (depending on demand). Raw Material: Raw materials include corn and grass silage, dry and liquid chicken manure, cattle manure, and pig manure. There are long-term contracts with suppliers for the entire volume of raw materials. Annual Income (approximate): €3,685,770 from gas sales, €815,000 from electricity sales, €110,630 from fixed-rate Flex co-generator electricity sales. Total annual income: €4,611,400 before operating expenses. Annual Expenses (approximate): €1,920,250 for raw materials, disposal costs, and own electricity; €182,500 for personnel; €462,000 for maintenance, technical service, and scheduled repairs; €142,000 for insurance; €177,000 for biological maintenance and other expenses; €100,000 for technical and commercial management (optional). Total annual expenses: €2,983,750 Net Income (approximate): €1,627,650 Total Cost: €14,500,000 turnkey Profitability: 11.23% before taxes and depreciation Depreciation: The installation can be depreciated over the next 10 years at approximately €976,667 per year Production Process: Biogas is produced in the biogas plant through the fermentation of manure, corn, and grass silage. When burned in co-generators (BHKW - a small combined heat and power plant), biogas is converted into electrical and thermal energy with an efficiency of about 85%. This significantly exceeds the efficiency of large power plants. The produced electrical and thermal energy is supplied to the German national grid and regional heating network. The biogas plant is a small combined heat and power plant with an engine running on biogas. The engine drives an electrical generator that produces electricity. Additionally, during the engine operation (through cooling and heat extraction from exhaust gases via a heat exchanger), water is heated, which is used for heating buildings and facilities. Simultaneous generation of electricity and heat (cogeneration) allows the combined heat and power plant to achieve significant efficiency, ranging from 85% to 95%, depending on the technology. Combined heat and power plants of this type are usually located close to end-users, thus eliminating energy losses during transportation. This further enhances the profitability of using biogas in such an energy production and consumption scheme. Biogas combined heat and power plants are highly reliable and durable. This technology has been used in Germany for many years and has proven itself well. Brief Information on the Sale and Operation of the Plant: The biogas plant will be installed and commissioned by a large German consortium with extensive experience in similar alternative energy projects. One of the consortium’s divisions, which handles the operation and maintenance of biogas plants after sale, will take full control of the plant. The plant and all pre-arranged long-term contracts (for technical maintenance, raw material supply, gas and electricity sales, insurance, etc.) will be owned by a specially organized GmbH. Simultaneously with the notarization of the purchase, a long-term management contract for the biogas plant will be notarized.
