GIZ DKTI Programme Development of feasible biogas projects · Structure of the presentation Milica Vukadinovic, GIZ DKTI programme 1. ... EEG 2009 EEG 2012 EEG 2014. Seite 10 139

Seite 1Milica Vukadinovic, GIZ DKTI programme

Implemented by:

Local subsidies / RDA Zlatibor / Center for Development Leskovac

DKTI - Development of a Sustainable Bioenergy Market in Serbia

GIZ DKTI Programme

Development of feasible biogas projects

21.04.2016

Seite 2

Structure of the presentation

Milica Vukadinovic, GIZ DKTI programme

1. About the GIZ DKTI Programme in Serbia

2. Framework conditions for biogas project

development

3. Investments in agricultural biogas facilities in Serbia

4. Viable biogas concept from the DKTI perspective

21.04.2016

Implemented by:

Seite 3

Facts about the GIZ DKTI programme


Objective: To strengthen capacities and create an enabling

environment for sustainable use of bioenergy in Serbia

Funded by: German Federal Ministry for Economic Cooperation and

Development (BMZ) under the German Climate Technology

Initiative (DKTI)

Duration: March 2013 – December 2017

Political partners: Ministry of Agriculture and Environmental Protection &

Ministry of Mining and Energy

21.04.2016

Implemented by:

Seite 4Milica Vukadinovic, GIZ DKTI programme21.04.2016

Structure of the programme:

Efficient use of

firewood in HHPolicy advice Project

development

Biomass

supply

KfW - FA: Advise to

investments in

district heating

companies

GIZ - TA: Support to the

creation of a

sustainable

supply of

biomass

GIZ: Support to

harmonization

of laws and

regulations to

EU standards

Support to

policy definition

and strategy

implementation

GIZ:Promotion of

efficient stoves

and ovens /

firewood drying

Advise to

implement

efficiency- and

emission

standards

GIZ:Advise to the

implementation

of cost efficient

and innovative

bioenergy

projects

Technology and

knowlege

transfer

Cross-cutting theme: sustainability

BioRES

GIZ:Support to the

creation of

regional

Biomass Trade

and Logistic

centres

Support

development of

local biomass

supply chains

Implemented by:

Seite 5

Project development component


Capacity building: awareness raising, financial and technical

know-how, operation of bioenergy facilities

Identification of projects and potential investors: bioenergy

heating systems in public buildings, biogas facilities, facilities for

generation of industrial process heat

Technical assistance:

plant design and project concepts, elaboration of bankable

(pre-)feasibility studies, project documentation, etc.

access to finance and investment subsidies

development of biomass supply chain

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Implemented by:

Seite 6

Project development component


Technical support for enhancement of efficiency of processes

related to procurement procedure, permits and licensing for

bioenergy projects

Best-practice dissemination

Dialogue-platform for Serbian and international companies and

institutional stakeholders to exchange project ideas, information

and experiences

21.04.2016

Implemented by:


Thematic areas

Straw

combustion for

process heat

Fuel switch in

public buildings

Biogas project

development

Awareness raising

Capacity building

Technology partnership / Multiplication of best practices

Identification of projects / Acceptance

Concept development / pre-feasibility

Feasibility assessment / Investment structuring / A2F

Implementation

Implemented by:

Seite 8

Structure of the presentation


1. About the GIZ DKTI Programme in Serbia

2. Framework conditions for biogas project

development

3. Investments in agricultural biogas facilities in Serbia

4. Viable biogas concept from the DKTI perspective

21.04.2016

Implemented by:

Seite 9

139 159 186 274 370 450617

8501.050

1.3001.600

1.7502.050

2.680

3.5003.711

3.891

5.181

6.268

7.766

8.213

8.5638.726

8.928

650

1.100

1.2711.377

1.893

2.291

3.097

3.352

3.637

3.905

4.177

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

Ins

talle

d e

lec

tric

ca

pa

cit

y

Nu

mb

er

of

bio

ga

s p

lan

ts

Years

Number of biogas plants in Germany

Installed electric capacity in Megawatt [MW]

© Fachverband Biogas e.V. / German Biogas Association

Number of biogas plants in Germany and installed capacity

Milica Vukadinovic, GIZ DKTI programme21.04.2016

EEG 2004

EEG 2009

EEG 2012

EEG 2014

Seite 10

139 159 186 274 370 450617

8501.050

1.3001.600

1.7502.050

2.680

3.5003.711

3.891

5.181

6.268

7.766

8.213

8.5638.726

8.928

650

1.100

1.2711.377

1.893

2.291

3.097

3.352

3.637

3.905

4.177

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

Ins

talle

d e

lec

tric

ca

pa

cit

y

Nu

mb

er

of

bio

ga

s p

lan

ts

Years

Number of biogas plants in Germany

Installed electric capacity in Megawatt [MW]

© Fachverband Biogas e.V. / German Biogas Association

Number of biogas plants in Germany and installed capacity


EEG 2004

EEG 2009

EEG 2012

EEG 2014

Bonus for

energy crops

Bonus for

using heat...

450 new

plants p.a.

New

requirements

on efficiency

and ecology

340 new

plants p.a.

Bonus for emission

reduction

Bonus for manure

1000 new plants p.a.

Bonus for

energy crops

Bonus for

using heat...

200 new

plants in

2015

Seite 11

Feed-in Tariffs for Biomass and Biogas in Serbia

(based on proposal for 2016)


Type of Electrical Generation Feed-in Tariff

Biomass power plant up to 1 MWel 13,26 €Ct./kWh

Biomass power plant 1 - 10 MWel 13,82-0,56 x Pel €Ct./kWh

Biomass power plant 10 MWel 8,22 €Ct/kWh

Biogas power plant up to 2 MWel 18,333 – 1,111 x Pel €Ct./kWh

Biogas power plant 2 - 5 MWel 16,852 – 0,370 x Pel €Ct./kWh

Biogas power plant over 5 MWel 15 €Ct/kWhSource: http://www.mre.gov.rs/doc/javne%20rasprave/28.09/Objedinjeno%20Uredba%20o%20podsticajnim%20merama%202015%20098%2014a.pdf

Annual increasing rate = inflation rate of EURO zone

Duration of power purchase agreement (PPA)= 12 years

Implemented by:

http://www.mre.gov.rs/doc/javne rasprave/28.09/Objedinjeno Uredba o podsticajnim merama 2015 098 14a.pdf

Seite 12

Biogas potential from manure in Serbia


Type of Biomass

Theoretica

l potential

in PJ in

Serbia

Electrical

efficiency in %

Potential electrical

energy in GWh/a

Potential electrical

capacity in MW

Manure (cattle, pig and

poultry)e3.4 34 322.2 45

Velvet Farm plant, Curug, Serbia - Photo: GIZ 2014

Source: DBFZ Study 2015

Solid cattle manure, Serbia - Photo: GIZ 2014

Liquid cattle manure, Serbia - Photo: GIZ 2014Liquid pig manure, Serbia - Photo: GIZ 2014

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Seite 13

Project proposal medium-sized farm

50 kWel biogas plant in Serbia


Initial values:

Following scenarios are evaluated:

1. Digestion of available liquid pig manure for electricity generation of

50 kWel

2. Digestion of available liquid and solid cattle manure for electricity

generation of 50 kWel

100 % of electricity generated will be sold under current feed-in-tariffs,

30% of heat generated will be used for internal heating purposes

21.04.2016

Institute for Animal Husbandry, Serbia - Photo: GIZ 2015

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Seite 14

Project proposal 50 kWel biogas plant in Serbia:

Manure input – required quantity and quality


Cattle Farm in Serbia, Photo: GIZ 2015

Substrates DMS oDMS

t/a m³/d % FM % DMS % m³/year l/kg oDMS m³/year

Liquid Pork manure 31,928 87 2.0% 75% 60% 120,687 420.0 201,145

total 31,928 87 120,687 201,145

Production of CH4Fresh Material

Biogas production of substrates

Production of biogas

or

Pig farm of around 4.000 animal units (fatteners) or cattle farm

around 500 animal units can provide needed amount for the

proposed plant size

Analysis of organic dry matter content and real quantity values

necessary for each individual farm and project

Biogas production of substratesSubstrates Fresh Material DMS oDMS COD Production of CH4 Production of biogas

t/a m³/d % FM % DMS mg/l % m³/year l/kg oDMS m³/year

Liquid cattle manure 10,142 28 7.0% 75% 53% 95,458.15 337.0 179,433

Solid cattle manure 730 2 18.0% 80% 60% 25,229 400.0 42,048

total 10,872 30 8% 0 120,687 221,481

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Output 50 kWel biogas plant


Production of CH4 120,687 m³/a

Caloric Value CH4 9.968 kWh/m³

Losses 5.0%

Energy Potential 1,142,857 kWh/a

Energy Potential Capacity 143 kW

Energetic Use

Energy potential 1,142,857 kWh/a 0 kWh/a

Caloric Capacity 143 kW 0 kW

Electrical Capacity 50 kW 0 kW

Electrical Efficiency 35% 0%

Thermal Eficiency 40% 0%

Thermal Capacity 57 kW 0 kW

Overall capacity 143 kW 0 kW

Full operation time 8000 hours/a 0 hours/a

Electricity Generation 400,000 kWh/a 0 kWh/a

Heat Generation 457,143 kWh/a 0 kWh/a

Energetic Demand 1,142,857 kWh/a 1,142,857 kWh/a

Calorific Value Natural Gas 8.5 kWh/m³

Sustitution of Natural Gas 134,454 m³ / year

CHP Steam Production (24/7)

Energy Use

Source: Own Calculations GIZ, 2015

Photo: GIZ Serbia 2015

30-40 % of generated heat shall be used for biogas process (own consumption)

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Seite 16

Estimated investment costs (CAPEX) for model-case


Investment CostsDescription Quantity Cost per Unit Total Cost Life-Time Depreciation

1 Ground preparation 1.00 10,000.00 10,000.00€ 15.00 666.67€

2 Foundations and canals 1.00 10,000.00 10,000.00€ 15.00 666.67€

3

Installation of Digesters incl Heating

system, Protection and Insulation 1.00 70,000.00 70,000.00€ 15.00 4,666.67€

4 Buildings and Infrastructure 1.00 10,000.00 10,000.00€ 15.00 666.67€

5 Storage Tank open 1.00 50,000.00 50,000.00€ 15.00 3,333.33€

6 Installation of equipment 1.00 50,000.00 50,000.00€ 15.00 3,333.33€

200,000.00€

Planning and Engineering1 Project Concept and Permission 1.00 10,000.00 10,000.00€ 15.00 666.67€

2 Design and Feasibility Studie 1.00 10,000.00 10,000.00€ 15.00 666.67€

3 Site supervision 1.00 10,000.00 10,000.00€ 15.00 666.67€

4 30,000.00€

Equipment and Components1 Pumping systems 1 7,500.00 7,500.00€ 15.00 500.00€

2 Tube system Substrate 1 10,000.00 10,000.00€ 15.00 666.67€

3 Agitation systems 4 5,000.00 20,000.00€ 15.00 1,333.33€

4 Gas membrane 1 15,000.00 15,000.00€ 15.00 1,000.00€

5 Biogas flare 1 5,000.00 5,000.00€ 15.00 333.33€

6 Gas treatment 1 10,000.00 10,000.00€ 15.00 666.67€

7 Gas pipelines 1 5,000.00 5,000.00€ 15.00 333.33€

8 Measuring and Control 1 5,000.00 5,000.00€ 15.00 333.33€

9 CHP and Transformer Station 1 60,000.00 60,000.00€ 15.00 4,000.00€

10 Electrical Integration 1 20,000.00 20,000.00€ 15.00 1,333.33€

157,500.00€

Other

1 Miscelleanous 5% 387,500.00€ 19,375.00€ 15.00 1,291.67€

2 Insurance and Bank Guarantees 2.5% 387,500.00€ 9,687.50€ 15.00 645.83€

5 29,062.50€

416,562.50€ 27,770.83€

Civil Works

8.331 €/kW overall

estimated

investment cost

Photo: Fachverband Biogas 2015

Implemented by:

Seite 17

Cash Flow: 50 kW Biogas Manure Plant, FiT= 18Ct/kWh


Source: Own Calculations GIZ, 2015

Indicators 10 years 15 years

NPV (5%) 74,718.89€ 244,638.95€

IRR 15.04% 21.30%

Concept0 1 11 12 13 14 15

Total (15

years)

Heat Use 3,291.43 5,015.29 5,115.60 5,217.91 5,322.27 5,428.71 70,327.20

Electricity Feed-In 57,600.00 87,767.60 89,522.95 91,313.41 93,139.68 95,002.47 1,230,726.02

Reduction of CO²-Emission 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL INCOMES 60,891.43 92,782.89 94,638.55 96,531.32 98,461.94 100,431.18 1,301,053.22

Raw Material 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Maintenance Biogas plant 4,278.75 6,519.72 6,650.11 6,783.11 6,918.77 7,057.15 91,423.07

Electricity Consumption 960.00 1,462.79 1,492.05 1,521.89 1,552.33 1,583.37 20,512.10

Operation Staff 2,920.00 4,449.33 4,538.32 4,629.08 4,721.66 4,816.10 62,390.97

Telekommunication 300.00 365.70 373.01 380.47 388.08 395.84 5,188.03

Biological Support 2,500.00 3,047.49 3,108.44 3,170.60 3,234.02 3,298.70 43,233.54

Fees and dues 1,000.00 1,218.99 1,243.37 1,268.24 1,293.61 1,319.48 17,293.42

Administration and Overhead 608.91 927.83 946.39 965.31 984.62 1,004.31 13,010.53

Insurance 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 1,041.41 15,621.09

Miscelleanous 1,217.83 1,855.66 1,892.77 1,930.63 1,969.24 2,008.62 26,021.06

Maintenance CHP 4,800.00 7,313.97 7,460.25 7,609.45 7,761.64 7,916.87 102,560.50

TOTAL Operation Costs 19,626.90 28,202.88 28,746.11 29,300.20 29,865.38 30,441.86 397,254.32

EBITDA 41,264.53 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 903,798.90

Interest costs 11,455.47 0.00 0.00 0.00 0.00 0.00 67,597.75

EBTDA 29,809.06 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 836,201.15

Taxes 0 0 0 0 0 0 0.00

NET SURPLUS 29,809.06 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 836,201.15

Investment Costs -416,562.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Debt Financing 229,109.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Repayment 18,215.24 0.00 0.00 0.00 0.00 0.00 229,109.38

Grant 62,484.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00

CASH FLOW -124,968.75 11,593.82 64,580.01 65,892.44 67,231.12 68,596.57 69,989.33 482,123.03

OVERVIEW CASH-FLOW in Euro

≈ +15 %

increase in FiT

≈ +45 %

increase in

profitability!!

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Seite 18

Technical and financial aspects to consider


Modification of existing manure tanks for conversion into a biogas

digester possible by installing heat insulation, agitation system, gas

storage, heating pipes and concrete protection

Low dry matter content may require specific biogas technology or

additional solid organic substrates

Availability of slurry and manure all over the year

Additional external heat demand for further income growth

Grant availability and requirements – IPARD funds for example

21.04.2016

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Seite 19

Agricultural biogas plant example


City halls, schools, hospitals, swimming pools, grennhouses etc.

Source: ‘Biogas – an introduction’, FNR, 2009

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Seite 20

Regional and national benefits


Implemented by:

New jobs in various sectors: agriculture, crafts and trades, machine

and component suppliers, biogas operators etc.

Additional taxes to the municipality

Production of high-quality fertilizer for farms

Generation of electricity and heat from renewable energy sources

Security of supply

Climate protection


Thank you for your attention!

Milica Vukadinovic, GIZ-DKTI Component Leader Project Development

Deutsche Gesellschaft für

Internationale Zusammenarbeit

(GIZ) GmbH

Development of a Sustainable

Bioenergy Market in Serbia

Bože Jankovića 39

11000 Belgrade

Serbia

T +381 11 3912 507

E [email protected]

Please visit us on: www.bioenergy-serbia.rs

Implemented by:

mailto:[email protected]

http://www.bioenergy-serbia.rs/

Documents

GIZ DKTI Programme Development of feasible biogas projects · Structure of the presentation Milica Vukadinovic, GIZ DKTI programme 1. ... EEG 2009 EEG 2012 EEG 2014. Seite 10 139