Training on biogas and biomethane

Transcription

1 Training on biogas and biomethane Content Preconditions for a successful financing of biomethane projects Economy of biomethane projects Biomethane business models general aspects Financing options (national and international) Financing inquiry by banks Overview on the financing liquidity during the project period 2

2 Successful financing of biomethane projects The implementation of biogas projects requires three preconditions: Good and stable legislative framework Easy and transparent permitting procedures Access to financing sources Prerequisites for the development of the German biogas market: Good and predictable policies for biogas and biomethane projects (EEG, GasNZV, EEWärmeG) Availability of a sound biogas industry with mature technical concepts and technologies Calculability of the financial risk > Biogas plants > 80 Upgrading plants 3 Successful financing of biomethane projects Renewable Energy Source Act (EEG 2009) Main driver attract investments to create financing opportunities, since it ensures revenues for 20 years (also for electricity from biomethane). Several national and local subsidies and low interest loans Subsidy programme of the kfw Bankengruppe provides low interest loans Subsidies of up to 50 % and up to are given by selected federal states Sale of upgraded biogas through the national gas grid Regulation to access to the natural gas grid and to share costs between plant operator and grid operator 4

3 Economy of biomethane projects Main cost locations when producing biogas and biomethane Feedstock materials Biogas plant Biogas production Raw gas Upgrading plant Biomethane production CHP Filling stations Agricultural residues Energy crops Organic residues Sewage sludge Investment costs Operational costs Maintenance costs Digestate Investment costs Operational costs Maintenance costs Heating furnace 5 Economy of biomethane projects Specific biogas investment (agricultural biogas plants) [Source: according to KTBL with own assumptions] 6

4 Economy of biomethane projects Specific investment upgrading plant 7 Economy of biomethane projects Specific biogas production costs Agricultural biogas plants: 4 to 6 ct/kwh Wastewater treatment plants: <4 ct/kwh Co-digestion plants: <6 ct/kwh Specific biogas upgrading costs...depending on the plant capacity and the upgrading technology. 1.3 t 2.5 ct/kwh Biomethane sale price (in Germany) Digestion of energy crops: around 7-8 ct/kwh Hs Digestion of organic waste: 5-7 ct/kwh 8

5 Biomethane business models Feedstock Biogas plant Upgrading & Gas injection Biomethane transport Mobility CHP Electricity Heat Heat Possibility 1: Feedstock suppliers, the biogas and upgrading plant are operated by an energy utility or another company. Purchasing the biomethane is also done by the energy utility. Possibility 2: Feedstock suppliers operating the biogas plant. Biogas upgrading plant operator is the energy utility. Purchasing the biomethane is done by the energy utility. Possibility 3: All partners join to together to a project company. Purchasing the biomethane is done by the energy utility. 9 - Financing options Most common financing methods: Corporate financing: Plant is integral part of the company -> public utilities, municipal companies, gas distribution companies, ORC, WWTP, agricultural farms Project financing: Biogas and upgrading plant are the project itself -> group of farmers or investors, plant manufacturers, public utilities, regional energy suppliers [Source: WIP 2010] [Source: WIP 2010] 10

6 - Financing options Aspect Corporate financing Project financing Banks evaluate the... Security (Guarantees)...liquidity of the company -> the loan will be repaid by the company Absolute liability of the company... economy of the project -> the loan will be repaid by the planned cash flow 1. Priority: project assets 2. Priority: cash flow -> full recourse ->non/limited recourse 11 - Financing options Credits from private banks Necessary equity capital depends on: the liquidity of the investor specific investment economy of the project Cash flow based project financing is widely applied for large scale biogas plants (upgrading plants) with investment of some million Euro. Well experienced banks in the field of financing biogas plants: For example: Umweltbank AG, DZ Bank, DKB Deutsche Kreditbank Also private banks have experts for financing biogas and biomethane projects Investment funds Only a few projects were realized through investment funds (e.g. Penkun) Energy contracting in the field of biogas production Good possibility for biomethane projects because of the necessary high investment 12

7 - Financing inquiry by banks Necessary documentation: 1 st step: Comprehensive project description Proposal from the biogas plant manufacturer or planner Business plan 2 nd step: 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 13 - Overview on the financing liquidity during the project period [Source: modified after DKB 2010] 14

8 - Financing options (international) European Union support funds EU Structural Funds (European Social, Regional Development and Cohesion Fund) EU Agriculture Fund for Rural Development European Union support programmes IEE and 7 th framework programme Financing different kinds of scientific research, information dissemination and knowledge exchange activities No investment in technologies but some of them provide initial financing Competitive and innovation FP support innovative activities Other international support mechanisms (EEA and Norway grant, Western Balkan Financing Programmes) 15 - Conclusion Several states have developed a sound biogas market which still grows This is due to many favorable framework conditions Support of electricity from biogas Support of grid-access for biomethane injection Simplified permit procedures Open-minded financing institutes in favor of biogas 16

9 Thank you for your attention! Contact: Henning Hahn Fraunhofer IWES Division Bioenergy and System Technology Königstor Kassel, Germany 17