Biomethane production facility.

Note: Profitability: approximately 17.7% before taxes and depreciation.

Description

Investment Project: Biogas Production Facility with 1 Co-Generator of 600 kW Capacity, Germany Location: Western Germany Land Lease: 20 years + 2 x 5-year extension options from the commissioning of the facility. Project: The project is being realized in the form of a GmbH. The existing biogas production facility (i.e., the co-generator) was commissioned in September 2009. This facility will be fully modernized. Investment amount for modernization: €645,000 included in the cost of the property. Equipment: Biogas production facility with co-generator and pellet heating boiler. The biogas produced by the facility is sold to a heat and electricity supplier who uses it as fuel for the co-generator. The heat generated is supplied to schools and private homes. Raw Materials: Manure from cattle, dry chicken manure, corn and grass silage. Long-term contracts with suppliers for the entire volume of raw materials. Capacity: 4,890,000 kWh of electricity Tariff: €0.216/kWh 1,000,000 kWh of heat Tariff: €0.030/kWh Annual Income: Approximately €1,056,729 from electricity sales Approximately €30,000 from heat sales Total Annual Income: Approximately €1,086,729 before expenses Annual Expenses: Approximately €584,012 including raw materials, disposal, and electricity for own use Approximately €40,000 for personnel Approximately €15,000 for land lease Approximately €138,022 for maintenance, technical biological service, insurance, planned repairs, etc. Net Income: Approximately €309,695 Total Cost: €1,750,000 turnkey after modernization Profitability: Approximately 17.7% before taxes and depreciation Energy Production Process: Biogas is produced in the facility by fermenting manure, corn, and grass silage. When burned in co-generators (BHKW - block heat and power plant), biogas is converted into electrical and thermal energy with an efficiency of around 85%. This significantly exceeds the efficiency of large power plants. The produced electrical and thermal energy is fed into the German national electricity grid and regional heating network. The biogas plant is a small combined heat and power plant with a biogas engine. The engine drives an electric generator, which in turn produces electricity. Additionally, the engine heats water (by cooling and extracting heat from exhaust gases with a heat exchanger) which is used for heating buildings and structures. Simultaneous production of electricity and heat (cogeneration) allows the co-generation plant to achieve significant efficiency, which depends on technology and ranges from 85% to 95%. Such cogeneration plants are usually located close to end-users, thus eliminating energy losses during transportation. This further enhances the profitability of using biogas in this energy production and consumption scheme. Combined heat and power plants on biogas are very 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 Facility: The biogas plant was manufactured and installed by a large German corporation specializing in alternative energy projects. After the sale, a specialized company will take full management of the biogas plant. The plant and all existing long-term contracts (for technical maintenance, raw material supply, heat and electricity sales, insurance, etc.) belong to a GmbH specially organized for this purpose. Simultaneously with the notarial completion of the purchase, a long-term management contract for the biogas plant will be notarized.