Agriculture Reference
In-Depth Information
incineration taxes have been induced. Finally a favourable set of basic
economic preconditions were established, according to which power
companies are obliged to purchase electricity based on biogas at minimum
prices. Danish plants obtained investment grants of 20-40 % of investment
costs and production grants of DKK 0.27 per kWh electricity produced. In
addition biogas is not energy taxed, and low interest rate, long-term (20
years) loans are provided.
5. ECONOMIC RESULTS
Table 12.2 shows actual economic results from the above mentioned 12
Danish centralised biogas plants. The analysis is based on the actual
financial situation for each plant, which is a function of investment costs
and grants, actual financing, and economic results so far. Economic results
are measured as current income (total sales and gate fees minus operating
costs) compared to a calculated minimum income target. Calculation of the
minimum income target is, as mentioned, based on actual financial
situation for each plant, and is as such not comparable among plants. But
for each plant the minimum income level represents the break even
situation, where debts can be served and current reinvestments be defrayed.
It appears from Table 12.2 that results have generally improved
considerably over the years. In recent years most of the plants produced a
current income at or above the break-even income level. A few plants
however, faced various technical and other problems, and have therefore
not yet, by the end of 1998, reached the calculated break-even income
level.
Of course Table 12.2 does not tell the full story about production
costs of the plants. Based on data from existing plants, transport and
treatment costs were calculated for a fictive plant. The assumptions and
results from this calculation are presented in Table 12.3.
In order to balance total costs of 62 DKK. per biomass treated,
energy sales (and gate fees) must equal this amount. Calculations (Hjort-
Gregersen 1998) show that, under Danish conditions, production costs may
be balanced at an average biogas yield of approx. 34 biogas per
biomass treated, at a biogas price of 1.81 DKK per biogas sold. If
investment grants or gate fees (for the receipt of organic waste) are
obtained, the demands on average biogas yield could be lower.
In order to achieve gas yields of this size it is necessary to add
organic waste, which is then codigested with manure. It appears from
Table 12.1 that all mentioned plants codigest considerable amounts of
organic waste. The value of the waste, with respect to biogas production
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