Biomethane production plant

Note: 5.5% net income if paying all taxes at 27%

Description

Increase in Capacity through the Addition of Two Flex Cogenerators, Each with a Capacity of 250 kW Location: Germany Land Plot: A 6,000 m² plot is included in the property price and will be the buyer's property. Ownership Type: The property is implemented as a GmbH & Co. KG. The existing biogas production plant was commissioned in August 2013. In 2020, a full technical service will be performed. The biogas plant will be modernized, increasing its capacity. This will involve the installation of two additional Flex cogenerators and the construction of an additional storage facility with a capacity of 5,000 m³ for processing waste. The investment amount is €1.1 million. The expansion and modernization are expected to take about 6 months. During this time, the biogas plant will be offline. Equipment: The biogas production plant includes: primary and secondary fermenters, a storage facility for sludge and fermentation residues, and 4 cogenerators, each with a capacity of 250 kW. The biogas produced is used as fuel for the cogenerators. The electricity generated by the cogenerators is fed into the German power grid and paid for according to the EEG 2012 law at a fixed tariff. The fixed tariff term is until 2033. Raw Materials: The raw materials used are cattle manure and chicken manure. Long-term contracts are in place with suppliers for the entire volume of raw materials. Capacity: 4,000,000 kWh of electricity Annual Income: Approximately €800,000 from electricity sales Approximately €65,000 Flex premium Note: Currently, due to modernization work, the plant is offline Annual Expenses: €236,000 including raw materials, operational costs, and disposal €30,000 for personnel €25,000 for technical and commercial management €13,500 for all insurance €25,000 for maintenance, technical and biological service, and scheduled repairs Total Annual Expenses: Approximately €329,500 Net Income: Approximately €535,500 Total Cost: €1,650,000 turnkey after modernization Profitability: Approximately 32.45% before taxes and depreciation Depreciation: Depreciation of the plant through taxes is approximately €110,000 per year. Payback Calculation: Net income: Approximately €535,500 Depreciation through taxes: Approximately €110,000 per year Tax rate: 27% Annual profit calculation: (535,500 - 110,000) - 27% = 420,750 Conclusion: Annual taxes to be paid amount to €114,750 Net annual profit is €420,750, which is 25.5% per year from €1.65 million. If the buyer considers €114,750 a large tax, they can optimize it using known models. However, given the cost and the fact that the investor does not need to manage the business, the profitability is quite good. The biogas plant was manufactured and installed by a large German conglomerate, which has been involved in similar alternative energy projects for many years. After the sale, the conglomerate will perform all modernization and expansion work. A specialized biogas plant management company, a division of the conglomerate, will take full management of the property. The plant and all already concluded long-term contracts (for maintenance, raw material supply, sale of heat and electricity, insurance, etc.) belong to a specially organized GmbH & Co KG. Simultaneously with the notarization of the purchase agreement, the GmbH will also have the modernization and expansion agreement and a long-term management agreement notarized.