Biogas Guidebook
Biogas Guidebook
2. What is biogas? 2
2.1 Biogas technology 3
2.1.1 Commercial biogas plants: 3
2.1.2 Domestic digesters 4
2.1.3 Biogas at wastewater treatment works 5
2.1.4 Landfill gas 5
2.2 Biogas in South Africa 6
2.2.1 Biogas case studies in South Africa 8
3. Applications of biogas 10
3.1 Electricity production 10
3.2 Combined heat and power (CHP) 10
3.3 Biogas burner/boiler 11
3.4 Bio-methane 12
3.4.1 Use of bio-methane 13
3.4.1.1 Household cooking 13
3.4.1.2 Transport sector 13
3.4.1.3 Bio-methane as a raw material in the chemical industry 13
3.4.2 Bio-methane storage 13
3.5 Fertilizer production 14
3.6 Wastewater treatment 15
3.7 Process water from breweries and sugar mills 15
3.8 Biogas technology for society 15
3.8.1 Odour reduction 15
3.8.2 Compliance with international climate pledges 15
3.8.3 Environmental protection and sustainability 16
3.8.4 Employment opportunities 16
4. Feedstock for a biogas plant 18
4.1 What feedstock do you need? 18
4.1.1 Animal by-products 18
4.1.2 Vegetable by-products 18
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4.1.3 Industrial and commercial waste 19
4.1.4 Biowaste from households 19
4.1.5 Energy crops 19
4.1.6 Wastewater 20
4.1.7 Considerations for feedstock 20
4.2 Feedstock preparation 21
4.2.1 Removal of pathogens 21
4.2.2 Removal of physical contaminants 22
4.2.3 Upgrading the feedstock 22
4.2.4 Feedstock for high-quality digestate 22
5. Choosing a site for your biogas plant 23
5.1 Biomass availability 23
5.2 Space and available land 24
6. How a biogas plant works 25
6.1 Components of a biogas plant 25
6.2 Feedstock storage 26
6.2.1 Storage of liquid feedstock 26
6.2.2 Storage of solid feedstock 27
6.2.3 Feeding systems 27
6.3 Digester technology 27
6.3.1 Digester volume 28
6.3.2 Digester tanks 28
6.3.3 Mixers 33
6.3.4 Heating systems 33
6.4 Biogas cleaning 34
6.5 Gas storage 35
6.6 Gas flare 36
6.7 Measurement, control and regulation technologies 37
7. Getting it right: A toolbox for success 38
7.1 Four phases of anaerobic digestion 38
7.2 Microorganisms in your digester 39
7.2.1 Balancing the environment for microorganisms 40
7.2.2 Single-tank digester 41
7.2.3 Multi-tank digester 41
7.3 Role of temperature 42
7.4 Hydraulic retention time 43
7.5 Energy calculation 43
7.6 Start of operation 44
7.7 On-site safety 44
7.7.1 Safety documentation 45
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8. Economics of biogas plants 47
8.1 Costs of biogas production 48
8.1.1 Investment costs 48
8.1.2 Operational costs (OPEX) 49
8.1.3 Capital expenses (CAPEX) 49
8.2 Revenue from biogas plant operation 49
8.2.1 Energy: Electricity and heat 49
8.2.2 Fertilizer 50
8.2.3 Carbon credits 50
8.3 Financing mechanisms and incentives 51
8.3.1 Financing and funding instruments 52
8.3.2 GEEF – The Green Energy Efficiency Fund 52
8.3.3 Environmental tax incentives 53
8.4 Business models for biogas plants 53
9. Planning a biogas plant 56
9.1 Initial idea for a biogas plant 56
9.2 Feasibility study 56
9.3 Stakeholder liaison 57
9.3.1 Local authorities 57
9.3.2 Communities 57
9.4 Finance 57
9.5 The law and biogas plants 58
10. Biogas plant construction 60
10.2 Collective action partnerships 61
10.3 Construction sign-off 61
10.4 Documentation 61
11. References 62
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Disclaimer
v This document has been produced without formal United Nations editing. The
designations employed and the presentation of the material in this document do
not imply the expression of any opinion whatsoever on the part of the Secretariat
of the United Nations Industrial Development Organization (UNIDO) concerning
the legal status of any country, territory, city or area or of its authorities, or
concerning the delimitation of its frontiers or boundaries, or its economic system
or degree of development. Designations such as “developed”, “industrialized”
and “developing” are intended for statistical convenience and do not necessarily
express a judgment about the stage reached by a particular country or area in the
development process. Mention of firm names or commercial products does not
constitute an endorsement either by DFFE or by UNIDO.
Copyright (c) 2021 Department of Forestry, Fisheries and the Environment (DFFE).
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Acknowledgements
vi Our sincere gratitude to all our partners who have contributed and supported
our efforts in developing the Biogas Guidebook for Small- to Medium-Scale Indus-
trial Biogas Plants in South Africa.
Finally, the efforts of the Department of Forestry, Fisheries and the Environment,
with specific reference to Dr Jenitha Badul, Ms Leanne Richards, Ms Elizabeth
Ntoyi and Ms Anam Ngoma is acknowledged.
The document has been developed by Jive Media Africa, with editorial support
undertaken by Ms Kay Montgomery and Dr Chelsea Tucker, on behalf of the De-
partment of Forestry, Fisheries and the Environment and the United Nations In-
dustrial Development Agency (UNIDO).
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List of figures
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List of tables
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Acronyms
ix AD Anaerobic digestion
BMP Bio-methane potential
CHP Combined heat and power
CNG Compressed natural gas
COC Certificate of compliance
COD Chemical oxygen demand
CSTR Continuously stirred tank reactor
DM Dry matter
FiT Feed-in tariffs
HDPE High density polyethylene
HRT Hydraulic retention time
ICP Inductively coupled plasma
GUP Gas upgrading plant
MSW Municipal solid waste
LNG Liquefied natural gas
LFG Landfill gas
O&M Operation and maintenance
oDM Organic dry matter
OLR Organic loading rate
POW Pure organic waste
PP Polypropylene
ppm Parts per million
PVC Polyvinyl chloride
SRT Solid retention time
TS Total solids
VFA Volatile fatty acid
VOC Volatile organic compound
VS Volatile solids
WWTP Wastewater treatment plant
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Glossary
x Acidification: Making or becoming acid; converting into an acid. This happens in a digester when acidic
molecules are produced at a faster pace than they can be pro-cessed by the bacteria.
Biogas production: The amount of biogas (m³) produced in a defined period of time (per hour or per day)
Biogas yield: Potential amount of biogas which can be produced from any specific type of feedstock
Bio-methane potential (BMP): A measure of the possible methane yield resulting from digestion of a feedstock
Combined heat and power (CHP): Describes a generator unit that combines the generation of electricity with
the capturing of thermal energy. The conversion of chemically bound energy into electrical energy and thermal
energy occurs on the basis of an engine linked to a generator.
CSTR: A continuously stirred tank reactor is a conceptual model for a type of reactor. The fundamental
assumption is that the entire contents of the reactor is constantly mixed such that all concentrations are
homogeneous within. In practice, well-mixed reactors are labelled CSTRs.
Digestate: The effluent of a biogas plant, which remains after the biogas has been extracted
Digester volume: The gross digester volume is the theoretical maximum volume of the digester.
Digester: A vessel where chemical or biological reactions are carried out. Sometimes called tank, reactor of
fermenter.
Dry matter: The portion of material that is not water/moisture. It is determined by drying the sample at around
105°C to ensure all water has evaporated. It is measured in tonnes, typically shown as t/a, t/d, or in % of fresh
mass (FM).
Energy crop: A plant that is grown and harvested for the production of energy only. An energy crop is not a
by-product of other processes like feed or food production.
Fresh mass: Mass of fresh feedstock, including water, which is fed into the digester. It is measured in tonnes,
typically shown as t/a, t/d.
HRT: A measure of the average time material is retained in a vessel (e.g. digester), defined as the ratio of vessel
volume (m³) and total feeding rate (m³/day). The unit is measure of time, e.g. days.
Organic dry matter (oDM): Organic components of dry matter (dry matter - raw ash = organic dry matter). Only
the organic part (not the ash content) contributes to the generation of biogas. oDM indicates the potential of
organic waste substances to contribute to biogas generation. It is measured in kg or tonnes, and sometimes
in % of dry matter (DM).
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Organic volume load / organic loading rate: Indicates how much organic dry matter per day is fed into the
digester of a certain size
Outgassing: The release of gas that was dissolved, trapped, frozen or absorbed in any material.
Raw ash: Mineral content of organic waste (feedstock). To measure raw ash, a sample of feedstock (FM)
is taken and mixed, and the water is then vaporized. What remains is referred to as dry matter. If the DM is
burned off, raw ash remains.
Renewable resources: A natural resource which replenishes to overcome resource depletion caused by usage
xi
and consumption, either through biological reproduction or through other naturally recurring processes
Sewage sludge: By-product of sewage treatment of industrial or municipal wastewater treatment works
(WWTW). It is a residual, semi-solid material.
Volatile fatty acids: A group of organic acids including acetic acid, propionic acid, butyric acid and valeric acid
Wobbe Index: An indicator for burning characteristics and the interchangeability of fuel gases such as natural
gas and bio-methane. It is defined as heating value divided by the square root of the specific gas density.
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Chemical compounds
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Units of measure
xiii In this publication, the International System of Units is used. Some additional units or units that are used often
are explained below.
a annum
d day
h hour
J Joule
kV kiloVolt
kW kilowatt
kWe kilowatt electrical
kWh kilowatt hour
kWth kilowatt thermal
mg/L milligram per litre
MW mega watt
MWe mega watt electrical
MWth mega watt thermal
t tonne (metric tonne)
t/h tonnes per hour
t/d tonnes per day
t/a tonnes per annum
Nm3 normal cubic metres
ppm parts per million
% w/w mass percent
Vol.% volume percent
BIOGAS GUIDEBOOK
1. Purpose
The Biogas Guidebook for Small- to Medium-Scale Industrial Biogas Plants in South
Africa contains comprehensive information for biogas plant operators and rele-
vant stakeholders, including:
� What is biogas?
� Applications of biogas technology in South Africa
� Feedstock for a biogas plant
� Choosing a site for a biogas plant
� How a biogas plant works
� A scientific toolbox for anaerobic digesters
� Economics of biogas projects
� Planning and implementation of biogas projects.
The purpose of this Guidebook serves to enhance the knowledge base on biogas
technology in South Africa.
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2. What is biogas?
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Biogas technology has many advantages when compared with traditional
waste management using landfills and energy derived from fossil fuels. These
advantages include:
Medium- to large-scale biogas plants range in size from 100 m3 to greater than
10 000 m3 , with a similar gas storage capacity. Gas produced is primarily used to
generate electricity and heating or is upgraded to bio-methane.
Medium- to large-scale biogas plants can produce between 50 kWe and 5 MWe of
electricity, depending on the feedstock availability. The planning, construction
and operation of commercial biogas plants require experienced contractors and
skilled operators to ensure the long-term operational success of such plants.
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4
Small-scale domestic digesters usually have a reactor volume below 50 m³. The
biogas is generally used for cooking, lighting and heating water. It is also possible
to use this biogas to run small biogas generators to generate electricity for a
couple of hours a day.
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2.1.3 Biogas at wastewater treatment works
The disposal of sludge is one of the major challenges faced by all WWTW in South
Africa. It is easier to sell sludge that has been processed as opposed to raw
5
sludge. Processed sludge is used by the fertilizer industry.
In recent years, a number of WWTW have either upgraded old digester tanks or
built new digesters to produce biogas to generate heat and electricity. The first
WWTW in SA to refurbish its old digesters, which had been built in the 1980s, was
the Diepsloot WWTW of Johannesburg Water, where a 1.2 MW biogas plant was
commissioned in 2015.
Figure 2.3: A wastewater treatment works in South Africa (courtesy of Mark Tiepelt)
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Historically, most landfill sites in South Africa have not been designed or operated
to capture landfill gas. Furthermore, landfills in South Africa are not designed for
optimal compaction, which hinders the collection of biogas produced, as well as
the collection of resultant fertilizer.
Figure 2.4: A South African landfill biogas plant in Ekurhuleni Municipality at the
Sebenza waste site (SABIA)
Since then, South Africa has experienced limited biogas market development.
This is due to the following factors:
According to the Southern African Biogas Industry Association (SABIA), there are
approximately 500 digesters3 installed in South Africa. Of these digesters, several
hundred are small-scale domestic digesters. Figure 2.5 is a map with the location
of biogas plants in South Africa.
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Northern Wastewater Treatment
Works, 1,2 MW, sewage sludge
Figure 2.5: Map of selected biogas digesters installed in South Africa (SABIA). For updates, see the SABIA Map.
A report by GreenCape offered a Business Case for Biogas from Solid Waste in
the Western Cape (29/11/2017). The report indicated that there were 21 biogas
plants operating in the Western Cape in 2017. With electricity prices in Europe
approximately double the electricity prices in South Africa at the time, GreenCape
concluded that the failure of various projects was primarily due to unfavourable
cost-benefit ratios:
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2.2.1 Biogas case studies in South Africa
This section provides an overview of select number of case studies in South Africa.
The more than R400 million New Horizons Waste to Energy biogas plant opened in Athlone, Cape
Town, in January 2017. As the highest cost biogas project in South Africa, the plant aimed to digest
8
500 tonnes per day of organic household, municipal and industrial waste from across Cape Town and
produce bio-methane.
The plant offered 80 full-time and more than 100 indirect jobs in the City of Cape Town. Regretfully,
the New Horizons Waste to Energy biogas plant no longer operates (2020) and the new plant owner is
looking for partners to restart it soon.
Overs Reject
Fraction
Recyclables
Material Recovery RDF
Biogas
Extracted
Organics
MSW Coarse Screen OREX™ Biogas Recovered CO2
+WTW Separation Treatment + Biomethane
Polished
Organics
Figure 2.6: Flow diagram showing overall process of New Horizons Waste to Energy (Anaergia)
Figure 2.7: New Horizons Waste to Energy plant (Anaergia) in Athlone, Cape Town
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Case study 2: Bronkhorstspruit biogas project
Bio2Watt operates the Beefcor Bronkhorstspruit Feedlot biogas project. The project cost R150 million
and started operations in April 2015.
The plant utilises 120 000 tonnes of feedstock a year, the bulk being manure, with additional supplements
from the abattoir along with food wastes. Challenges were experienced relating to the quality of the
9 feedstock, which contained high volumes of soil that displaced the volume in the digester tanks.
The Bronkhorstspruit plant has a generating capacity of 4.6 MW, although it was originally designed for
8MW. The plant supplies electricity via wheeling agreements with Eskom and the City of Tshwane to the
BMW Rosslyn Plant, roughly 60 km from the site. The biogas plant supplies roughly 25–30% of BMW’s
electricity demand.
Situated 18 km east of Durbanville in the Western Cape, the Zandam Farm biogas plant is a R9.2 million
agricultural biogas project. The feedstock is from 6 650 pigs that produce around 22 tonnes of manure
per day, which is fed into the digester.
This plant demonstrates the potential for small-scale commercial biogas in an agricultural setting
where the entire output is consumed on-site. The plant produces biogas combusted in on-site CHPs to
supplement the farm’s electricity demand. The estimated output is 41m³/h of biogas, converted to 75 kW
of electricity, however is currently not operational.
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3. Applications of biogas
Biogas is an energy carrier and can be stored. Biogas can therefore be used to
generate electricity that can be produced specifically during periods of peak
demand, or as standby during load-shedding or any other power outage. A biogas
plant can deliver a reliable electricity supply for energy-scarce regions.
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A CHP unit has the potential to capture more of the energy contained in the
biogas when compared with a genset. The efficiency of typical CHP units varies
and is mainly related to the size of the CHP unit.
A CHP unit comes at a higher cost compared with a genset. This investment will
depend on the ability to use the extra heat energy. In commercial biogas plants,
25% of this heat energy could be used to increase the temperature in the anaerobic
digester. This increases the microbial activity and biogas yield. The rest of the
heat could be used to heat water or for space heating. There is no widespread
use of space heating in South Africa, so applications for CHP are limited.
Figure 3.1: A South African landfill biogas plant in Ekurhuleni Municipality at the Sebenza waste site (SABIA)
Currently, there are burners available on the market to use specifically with biogas.
Boilers that are usually fuelled with natural gas can also be adapted to operate
with biogas.
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For biogas use in burners, the gas should meet the following technical require-
ments:
3.4 Bio-methane
Biogas can be upgraded to bio-methane, which can be used as a sustainable
alternative to natural gas. To upgrade biogas to bio-methane quality requires
the separation of methane (CH4) and carbon dioxide (CO2) and the removal of
hydrogen sulphide (H2S) and oxygen (O2). The CO2 separated from biogas to
create bio-methane can be used to produce dry ice and other food-grade CO2
applications.
Table 2 shows the difference in composition for biogas and bio-methane. Bio-
methane has a heating value of 9.97 kWh/m³. 5 5 As comparison, natural
gas has heating value of 10–14
kWh/m3 (depending on the
Table 2: Typical chemical composition of biogas and bio-methane quality), and LPG has a heating
value of 12.8 kWh/kg and a
density of 0.54–0.60 kg/l.
Composition (%)
Bio-methane
Biogas
(natural gas quality)
Methane (CH4) 50–70 > 97
Carbon dioxide (CO2) 30–45 <3
Oxygen (O2) 2–4 < 0.5
Hydrogen sulphide (H2S) 0–0.6 < 0.0005
There are several upgrading technologies available on the market, including the
following:
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3.4.1 Use of bio-methane
Bio-methane can be used for all applications where natural gas or LPG is usually
used, subject to calibration of the appliance.
The use of bio-methane as a fuel for transportation vehicles may enhance the
environmentally-friendliness of the transport sector. The contribution to GHG
emission savings when vehicles use bio-methane reaches 90%, when compared
to a conventional petroleum-fuelled vehicle.
South Africa has potential to use bio-methane in the transport sector, already
having some experience, especially in public transportation. In 2014, CNG
Holdings opened a public filling station in Langlaagte, Johannesburg, which also
includes a training facility. During the first quarter of that year, some 300 natural
gas vehicles were on the roads, including company cars, taxis and minibuses. 7
Bio-methane can be used in all kinds of applications to replace the use of natural
gas. In South Africa, Sasol uses natural gas to produce liquid fuels (diesel, petrol
and jet fuel) and wax via the Fischer-Tropsch process6. Bio-methane can be used 6 The Fischer-Tropsch
process involves the
for the same purpose. However, the chemical industry has specific guidelines on conversion of carbon
quality. monoxide and hydrogen to
long-chain hydrocarbons such
as fuels (diesel, petrol and
3.4.2 Bio-methane storage jet fuel), waxes and various
chemicals. Methane from
biogas can be converted
Bio-methane can be stored and transported in pressurized vessels (tanks or cyl-
to carbon monoxide and
inders). This is known as compressed natural gas (CNG) or liquefied natural gas hydrogen via a process called
(LNG). These cylinders are typically pressurized to 200–250 bar. Lower pressures reforming and fed into a
Fischer-Tropsch reactor.
of 50–70 bar can be used, which requires less electricity for compression, but less
bio-methane can be stored in the same volume.
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Some recommendations for safe biogas/bio-methane use in pressure cylinders
are as follows:
More detailed reference is available on the Biogas Standards SANS 1753-1 and
1753-2 (link to GCS and/or SABS).
Digestate is, in most cases, applied directly in its liquid form (containing 5% to 15%
dry matter), similarly to the way animal slurry is, or in a semi-solid form (containing
10% to 30% dry matter) like peat or compost. There are several techniques that
can be applied to upgrade the digestate. These include composting, drying,
pelletizing and granulating.
It is important to make sure that digestate is not simply dumped or pumped into
a river, because it contains a substantial amount of nutrients (especially nitrogen)
which should not flow uncontrolled into the environment. If this digestate is not
sold as an organic fertilizer, it needs to be properly and carefully disposed of
(according to South African regulations). This can significantly increase the costs
of a biogas plant operation.
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3.6 Wastewater treatment
Anaerobic digestion can be a part of a wastewater treatment plant. In wastewater
treatment plants, sewage sludge is separated from water. Sewage sludge can be
used as a feedstock for an anaerobic digester to produce biogas.
The specific molecules which are responsible for emitting bad odours are usually
organic (called volatile fatty acids (VFA)). The anaerobic digestion process
converts these organic molecules into biogas, which effectively eliminates the
bad odours.
In the framework of the Paris Agreement reached in 2015, South Africa then
committed itself to a National Determined Contribution (NDC) to reduce
emissions. The 2025 target in the NDC corresponds to the same 2025 emissions
target from the previous pledge. Nonetheless, this new target provides more
clarity by specifying an intended emissions range through to 2030, including
when emissions will peak.
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3.8.3 Environmental protection and sustainability
Biogas is a renewable energy, and the production of biogas can help to reduce
greenhouse gas (GHG) emissions in several ways:
Bioenergy Atlas estimates the biogas potential from domestic and commercial
waste in South Africa to be about 1 400 MWe. 6 Assuming 7 500 operating hours
per year, this amounts to 10 500 GWhe. By producing this amount of energy, 10
500 million tonnes of CO2 equivalent could be reduced. Furthermore, considering
the emissions taking place at the landfills, some 300 g of CO2 equivalent per KWhe
6 could be avoided.
As the industry grows, the potential for employment opportunities increases and
covers all skill levels (unskilled, skilled, semi-skilled and highly skilled). Conservative
estimations for the growth of South Africa’s biogas industry forecast the number
of jobs rising to approximately 59 000 full-time equivalents (FTE) by 2030. More
optimistic forecasts estimate the number of jobs to be at 88 000 FTE by 2030 8
. It is noteworthy that the jobs created can be located in rural and urban areas,
depending on the type of biogas plant as well as on the activities carried out in
the various phases of a biogas project. 6 With the advent of COVID-19, some of
these predictions may change significantly.
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The study, however, also states that one obstacle in the way of tapping the
envisaged growth potential fully, is the lack of certification standards in the
South African biogas industry, which could lead to a lack of trained/skilled
labour with certification: “With a lack of biogas standards, the certification
skills gap remains at 100%, supplemented by practical/self-taught experience
and passion for the industry”. 8
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4. Feedstock for a biogas plant
Animal by-products
Vegetable by-products
� Biowaste from households
� Industrial and commercial waste
� Energy crops
� Wastewater.
Animal by-products consist mainly of liquid and solid manure, but also include
abattoir waste (cattle, pig, poultry) and fat separator contents.
Vegetable by-products that are not marketable or suitable for animal fodder (e.g.
due to their low quality, the presence of diseases or pest infestation) can be used
as feedstock in a biogas plant.
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These include: wheat straw, maize, residues from maize cleaning, rejected
potatoes, crop residues, rice husk flour, grass silage, cactus, apples, apricots,
pears, peaches, grapes, mangoes, guavas, pineapples, strawberries, plums,
oranges, lemons/limes and grapefruits.
Biogas plants operating on these types of feedstock typically have the advantage
of normally being located in close proximity to industries where there is high
demand for energy (electricity and heat). The challenge associated with these
plants, however, is around the seasonality of agricultural produce, i.e. no
consistent type and quantity of feedstock available throughout the year. This
challenge can be overcome by co-digestion of several (or at least two) types of
feedstock to even out the seasonality of the supply of feedstock.
Energy crops refer to crops purposely grown for use in biogas plants. Inedible
crops such as grass, cactus and sugar sorghum can be used in South Africa. Energy
crops normally have higher biogas yields compared with other feedstocks, such
as manure and vegetable waste. The use of food crops to produce energy should
be done without endangering food security.
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South Africa has huge tracts of land not suitable for the cultivation of food or
fodder crops. Utilizing this land to grow specific energy crops for biogas could
prove to be a viable option for the biogas industry.
4.1.6 Wastewater
Most of these digesters, however, have fallen into disrepair over the years.
However, recently some larger municipalities have started refurbishing these
digesters to produce electricity.
The type of feedstock used in a biogas plant will determine the yield of biogas.
� Water content
For example, industrial waste that might have too much water and lack
structure for composting is excellent feedstock for anaerobic digestion.
� Degradability of the feedstock
Not every kind of organic material can be degraded in a digester. One
of the main limitations of the biogas process is its inability to degrade
lignin (a major component of wood). This type of waste should be
treated with aerobic degradation (composting).
� Composition of fat, protein and carbohydrate
Stale bread, for example, has a high proportion of carbohydrates,
which provide a high methane output per tonne. Canola, which has
a high protein concentration, could lead to increased concentrations
of H2S in the anaerobic digester, which could negatively affect the
microorganisms and machinery.
� Presence of soil/sand in the feedstock
For example, cattle feedlot manure can fill up the digester and
progressively reduce the volume of the digester.
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Transport costs may be prohibitive if the feedstock is not located close to the
biogas plant.
While it is possible to use a broad variety of input material, even slight changes
in the type or quality of feedstock may have a crucial impact on the digestion
process. Certain feedstocks can negatively impact the microbiology of the
process.
Hydrogen sulphide
Water
Silicon organic compounds (e.g. siloxanes)
Oxygen
Ammonia
Dust, oil and aerosols.
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4.2.2 Removal of physical contaminants
Physical contaminants such as plastic, large pieces of wood, metals and oversized
objects can be removed in the following ways:
In some cases, where the anaerobic digestion step is less sensitive to impurities
(normally dry digestion processes), the removal of physical contaminants can also
be carried out after the biogas process (e.g. by sieving the compost in rotating
drums).
Ensuring the quality of the digestate – its visual cleanliness and absence of
contaminants and harmful impurities (e.g. sharp objects) – is paramount when
it comes to marketing the product and fostering public acceptance of biogas
technology as a waste treatment option.
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5. Choosing a site for your biogas plant
23 The selection of the location for a biogas plant is of critical importance, and could
even influence the economic feasibility of the whole project; therefore, many
factors have to be taken into consideration, as described in this chapter.
As a rule of thumb, the bigger the biogas plant, the lower the unit cost of energy
production. Under certain circumstances, it might be viable to import additional
biomass to the proposed site of the biogas plant in order to have a bigger
plant. The limiting factor when importing feedstock is the cost and greenhouse
emissions associated with transportation.
Liquid manure contains a lot of water and consequently has a low energy content,
and transportation would typically be limited to a few kilometres. Therefore, the
actual energy content of the feedstock plays a crucial role, as a higher transport
cost could be justified should the feedstock have a high biogas yield potential,
such as with liquids with high fat or oil content.
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5.2 Space and available land
The construction of a biogas plant requires adequate space. Small plants need
about 600 m2, while big installations require several thousand square metres.
Often, biogas plants are constructed close to an agricultural farm, where the
availability of space is not a challenge, whereas space could become a challenge
when the plant is developed in an industrial area.
24
BIOGAS GUIDEBOOK
6. How a biogas plant works
BIO
1
Fuel
2
3 8
10
5
9
Natural
11
4 7 gas grid
6
12 13
Electricity
Digestate Heat
Figure 6.1: Diagram of the components of a biogas plant (Fachverband Biogas e.V.)
BIOGAS GUIDEBOOK
6.2 Feedstock storage
A typical biogas plant will be fed a couple of times per day with several tonnes
of feedstock. Feedstock could, however, be brought in daily, weekly or even
annually or seasonally (for agriculturally based feedstock). Several types of
storage options are available on the market.
Storage tanks are often equipped with mixers to avoid the formation of sinking
layers and to ensure the material remains homogeneous. It is possible that some
microbiological activities might, however, start in the storage tank, although on
a low level, as storage tanks are not heated.
Tanks are typically covered to avoid methane escaping into the atmosphere –
covers also assist in odour control and contribute to safety. The flow of liquid into
and out of the storage tanks is typically controlled by pumps.
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6.2.2 Storage of solid feedstock
Solid feedstock is often stored on open ground next to the biogas plant. Storage
areas should be concreted to prevent nutrients from contaminating soil and
groundwater. Solid feedstock may also need to be protected from rain, as
rainwater could dilute feedstock and lower the average retention time in the
digester.
Stored material might start to digest before being fed into the digester. This leads
27
to energy losses and air emissions. To avoid or reduce pre-digester activities,
seasonally harvested material can be conserved by covering it with plastic
sheeting or turning it into silage.
For feeding solid and liquid feedstock into the digester, there is a wide variety of
feeding systems available on the market. The general purpose of feeding systems
is to ensure that feedstock is transported into the digester with a higher degree
of automation, while ensuring safety and minimizing emissions.
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6.3.1 Digester volume
The digester is usually filled with liquid feedstock slurry up to a certain design
level, and this should ideally be maintained at a constant level.
When calculating the actual volume of feedstock that will fit in the digester,
consider the space taken up by installed equipment (mixer, heating systems,
etc.) and by sinking layers (stones, sand, etc.) which will effectively reduce the
active volume. Additionally, about 20% of the gross volume can be considered as
28 back-up capacity.
It is normal practice to allow 40–80 cm free space above the design liquid level
for movement caused by the mixing action and the possible formation of floating
layers. The gas pipeline is usually connected to this free space.
The actual construction size of the digester, the gross digester volume, will be
composed of the net digester volume, the back-up space and the free space
(Figure 6.4).
Internal digester
components
Free space
Back-up capacity
(20%)
Gross digester volume
Net digester
volume
Base mud
Net
Gross
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Overview of technologies depending on dry matter content for the possible operating mode*
Composting
* Almost every type of feedstock can be diluted to the needed dry content of each digester technology.
** UASB: Upflow anaerobic sludge blanket technology is a form of anaerobic digestion designed for materials with high water content
(e.g. sewage sludge).
UASB reactors are installed for waste or process water treatment.
Starting on the left, upflow anaerobic sludge blanket (UASB) digesters are
typically used for wastewater treatment plants and can operate with 2% dry
matter and 98% water content.
Highly polluted water is pumped under pressure into the bottom of the reactor
where it forms sludge. Biogas is produced in the sludge layer, and the rising gas
bubbles mix the sludge without the assistance of any mixing components.
The clean water is extracted from the top of the tank in an area above the sloped
walls. The sludge blanket, which is heavy, remains at the bottom of the tank.
UASB has the advantages of being able to treat process water with low organic
material, being lower maintenance, having an odour-proof design, and having
good sludge retention and low space demand. The disadvantages are that it is
only suitable for materials with high water content (solid content of 2%), and it
has high investment costs and relatively low biogas yields.
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6.3.2.2 Wet digesters
Wet digestion refers to the digestion of feedstock that has a dry matter content
above 5%, but not more than 20%. It is easier to handle wet feedstock (as opposed
to dry feedstock), as it can be easily pumped and mixed. Feedstock that is too dry
can be mixed with water or wet digestate to decrease the dry matter content.
Liquid manure, on the other hand, can be used directly without dilution.
The continuously stirred tank reactor (CSTR) is the most commonly used tank
30
technology for wet digestion. It is a simple but robust technology that accepts
a wide range of possible feedstocks. Almost any sized plant is possible. Biomass
inside the digester has to be liquid and pumpable so that it can be mixed with
different kinds of mixers.
A hydraulic digester can also be used for wet digestion, and works without
mixing. This digester works on the principle of pressure. Wet feedstock is fed
into the tank, raising the level of liquid in the digester, which puts pressure on the
gas layer, pushing the biogas out of the tank (see Figure 6.6).
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Continuously stirred tank reactor (CSTR) Hydraulic digester
Biogas
6
5
31
5 Biogas 6
4
1 7
2
4 3 2
1 Input 2 Biomass 3 Agitator 4 Heating system 5 Biogas storage 6 Biogas utilisation 7 Output
Dry continuous digestion is the digestion of feedstock with higher dry matter
content in a continuous process. A plug flow digester is typically used.
The concept that underpins the plug flow digester is that the biomass is slowly
transported (horizontally or vertically) from the inlet to the outlet. Ideally, all
feedstock will spend equal amounts of time in the digester. This requires optimal
processing conditions and robust mixing technology.
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The following characteristics apply to the plug flow digesters:
Afterwards, the digester is emptied and refilled with the next batch. New
incoming feedstock is mixed with digestate from the previous process or from
another reactor and is left to digest inside the digester. Leaching liquids that are
drained from the batch digester are recirculated to improve contact between the
biomass, acids and bacteria.
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6.3.2.4 Garage systems
1
7 6
5
2 4
33 8
6.3.3 Mixers
Mixers or agitators play an important role in a biogas plant. They are used to
ensure even distribution of feedstock and microorganisms throughout the
digester. Mixers also ensure good heat distribution and help avoid sinking and
floating layers. Finally, they help to agitate the gas bubbles out of the liquid.
There are many types of mixers available – mechanical, hydraulic and pneumatic.
Typically, hot water is circulated through pipes installed all around the inner
digester walls. These pipes can be of different materials, such as plastic, stainless
steel or carbon steel.
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34
Figure 6.9: Heating system showing pipes containing hot water on the inner
digester walls (Anaergia)
Hydrogen sulphide
Water vapour
Silicon-organic compounds
Oxygen
Ammonia.
H2S also has corrosive properties that could severely damage equipment if not
removed or reduced to acceptable levels. Typically, H2S should be reduced to less
than 200 ppm in state-of-the-art equipment.
H2S is also toxic to human beings. H2S further oxidises during combustion to form
sulphur dioxide (SO2), which is an environmental pollutant. The release of sulphur
dioxide into the atmosphere must therefore be kept to a minimum.
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Biogas is naturally saturated with water vapour inside the digester and, if not
removed, has the potential to damage equipment due to corrosion. To avoid
corrosion and other negative effects during subsequent gas treatment, it is
necessary to dry the biogas.
Oxygen can also compromise the biogas process. Although biogas generation in
the digester takes place in the absence of oxygen, levels of 0.5% are low enough
not to affect the biogas process.
Biogas must additionally be free from impurities such as dust, oil and aerosols.
Filters used in gas technology are installed for this purpose.
Gas-tight
Resistant to pressure
Resistant to UV radiation
Resistant to temperature variations and changing weather conditions
Resistant to external effects like strong wind.
The storage volume is selected based on space availability, budget and the need
for flexible operation.
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36
Figure 6.10: Digester with foil roof for gas storage (Anaergia)
Although biogas production is continuous, the utilization of the biogas might not
be, for example during times of maintenance. Biogas plants should be equipped
with a gas flare to burn methane and convert it into carbon dioxide, which is less
harmful to the environment.
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6.7 Measurement, control and regulation technologies
As it is important to control the digestion process, many measuring devices for
biogas plants have been developed.
Gas analyser
This shows the composition of the biogas and the presence of the following
37 components:
Methane (CH4) is the most valuable component and contains the biogas
energy.
Carbon dioxide (CO2) is important to measure, as it indicates the stability
of the biological process.
Oxygen (O2) indicates if leakages in the gas system have occurred. If
above 1%, the operator should do a leak test.
Hydrogen sulphide (H2S) is a toxic and corrosive gas. In general, the
concentration of H2S should be as low as possible. Typical limits for CHP
operation are in the range of 50–200 ppm.
Hydrogen (H2) can be measured for process optimization.
Flow meter
This measures the volume rate of the biogas production, typically in m3/h. This
value shows whether the biological process is stable. If this value drops, the living
conditions for the microorganisms are not optimal anymore, and measures to
stabilise the process should be implemented.
Additionally, the biogas production rate indicates whether the whole biogas
plant is operating in an efficient manner and is according to what is expected
from the feedstock used.
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7. Getting it right: A toolbox for success
38 Biogas technology converts organic material into methane gas and other gases.
This occurs through a complex sequence of reactions that occur during the
decomposition of organic matter.
In the face of challenges, this chapter will offer a guide to the scientific principles
of anaerobic digestion, and help with technical troubleshooting.
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1. Phase 2. Phase 3. Phase 4. Phase
Hydrolysis Acidogenesis Acetogenesis Methanogenesis
H2/CO2
Biomass
Sugar
Carbohydrates Biogas
Amino Acid
Proteins CH2/CO2
39 Fatty Acid
Fats
Fatty Acid
(Propanoic Acetic Acid
Acid)
The five most common microorganisms have different growth rates (see Table 3).
Acid-forming organisms have a relatively short reproductive time. Methanogenic
bacteria grow slower and have a slower metabolism.
The time taken to produce biogas is influenced by the concentration of the micro-
organisms, the quality of the feedstock, mixing, particle size and temperature.
Sugars and starches degrade quickly, while woody biomass is slower to break
down.
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7.2.1 Balancing the environment for microorganisms
The optimal living conditions of the various microbial strains differ considerably.
In practice, a biogas plant cannot provide optimal conditions for all organisms,
but needs to find a compromise which is suitable for all. Several influencing
40
factors are as follows:
Buffer systems: This is a chemical system that can prevent the pH from
dropping too low. However, care must be taken when using buffer
systems, as they can get saturated if too many acids are generated,
which can cause further issues in the digester.
Volatile fatty acids: The amount of volatile fatty acids (formic acid,
acetic acid, propionic acid, butyric acid and valeric acid) in the anaerobic
digester at any given time gives an indication of the speed of degradation
in the first three phases (hydrolysis, acidogenesis and acetogenesis), as
opposed to the fourth stage (methanogenesis). Volatile fatty acids are
commonly measured in Acetic Acid Equivalent (AcEq), which needs to
be < 2 000 mg/l to ensure a stable digestion process. This value should
never exceed 4 000 mg/l.
Feedstock particle size: The particle size of the feedstock has a direct
effect on how well microbes can perform their task – the smaller the
particle size, the quicker the microbes can digest them.
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Ratios of nitrogen, carbon, phosphorus and sulphur: The amount of
nitrogen, carbon, phosphorus and sulphur in the feed needs to be
balanced for good biogas operation. The carbon-nitrogen ratio can be
influenced by the addition of feedstock high in carbon (veld grass) or
high in nitrogen (i.e. canola, dried chicken manure, abattoir waste).
Micronutrients: Microorganisms also require micronutrients such as
sodium, potassium, magnesium, iron, nickel, cobalt, molybdenum,
tungsten, selenium, zinc and calcium for optimal performance.
41 Microbial inhibitors: Inhibitors like heavy metals, ammonia and
hydrogen sulphide slow down the anaerobic digestion process. In small
quantities, they decrease the rate of digestion. In large quantities, they
can create a toxic environment which stops digestion.
Light: Light can inhibit digestion, thus should be prevented from
entering the digester.
Normally, biogas plants are set up as one-stage systems, where all the phases
occur in a single tank.
Advantages: It has lower investment costs, and the organisms live in close
synergy.
Hydrolysis Acidification
Acidogenesis Methanogenesis
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Stage 1 Stage 2
Acidification Acidogenesis
Hydrolysis
Methanogenesis
In practice, the first-stage digester would be a smaller tank compared with the
second-stage digester.
The higher the temperature, the faster the growth rate of the
microorganisms. The higher the growth rate, the higher the activity and
digestion of the feedstock.
With faster digestion, lower HRT and less digester volume are needed.
This means reduced investment costs and less energy needed to mix
the process.
If a digester is operated without being heated, it will operate at ambient
temperature only. Although this reduces cost, it also results in much
lower biogas production.
Most industrial biogas plants operate at mesophilic temperatures (about
37–45°C). The microorganisms are well adapted to this temperature
range, because it is comparable to the inside of the digestive tract of
cattle and pigs.
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Thermophilic operation offers the fastest growth, but the process will
be more sensitive and will therefore require more accurate process
monitoring as well as experienced operators, because the biogas can
become more contaminated with hydrogen sulphide and ammonia.
High temperatures are able to destroy potential pathogens in the
feedstock.
The hydraulic retention time is a ratio of the size of the digester and the amount
Feedstock: HRT:
Liquid cattle manure ≥ 20 days
Pig dung and straw ≥ 40 days
Energy crops ≥ 50 days
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44
The guidance provided by applying the equations will give you the biogas
production, methane production and theoretical energy production.
At the start of the process, the amount of feedstock must be increased very slowly.
Factors such as pH-value and gas composition can be evaluated daily to ensure a stable
process.
Additional aspects to be considered ahead of initiating the start-up phase are listed below:
Additionally, health hazards can still potentially occur at biogas plants, and are divided
into four categories:
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Explosion and fire hazards, since biogas is a mixture of different gases, the
concentration of which may vary depending on the plant in question
Hazardous substances such as biogas itself, processing additives, oils, activated
carbon, silage effluent, slurry and wastes
Electrical hazards such as control equipment, CHP units, pumps, agitators and
measuring instrumentation
Mechanical hazards such as falling, impact, crushing and cutting
Table 4 details the main components of gaseous materials that can be found in a
45
biogas plant, and their potential hazards.
3 4
Table 4: Properties of the gaseous constituents of biogas (Sources: and )
Recommended
Hazardous
Properties workplace
atmosphere
exposure limit
Colourless, odourless gas 8% v/v: danger of asphyxiation 5 500 ppm
CO2
Heavier than air
Colourless and pungent- Above 30–40 ppm: mucous membranes, 20 ppm
smelling gas respiratory tract and eyes become irritated
NH3
Lighter than air Above 1 000 ppm: breathing difficulties,
potentially inducing loss of consciousness
Colourless, odourless gas 4.4–16.5%
CH4
Lighter than air
Highly toxic, colourless gas Above 200 ppm: sense of smell deadened 5 ppm
H2S Heavier than air and gas no longer perceived
Smells of rotten eggs Above 700 ppm: danger of respiratory arrest
Explosions and fire hazards occur when three factors apply simultaneously: a
flammable substance (like biogas), oxygen (from air) and a source of ignition. If
the concentration of biogas in the atmosphere is between 6% and 22% v/v, there is a
risk of explosion in the presence of an ignition source (explosive range, explosive
atmosphere). In the case of pure methane gas, the explosive range is between
4.4% and 16.5% v/v. The ignition temperature of biogas is 700°C (methane 595°C).
The composition of biogas may vary with regard to the proportions of methane
and carbon dioxide, with the result that the explosive range of the gas mixture in
the presence of air also varies.
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A major accident involving property damage and possibly personal injuries which
are not covered by the insurance, would financially endanger and probably halt
the whole biogas project. It is therefore of utmost importance for a biogas plant
operator to be able to prove that the operation and maintenance plans and
procedures, as well as the safety regulations, have been put in place and have
been followed at all times.
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8. Economics of biogas plants
47 In this chapter, the cost structure of a biogas plant (investment costs, annual
capital costs, operation costs), followed by income streams, are further explained.
For more information, refer to the Biogas Investment Decision-Making Tool.
A biogas project should be financially viable. What makes a biogas plant financially
viable?
Investment in a biogas plant can be motivated by several factors, but not all
aspects can be monetized. Aspects which are hard or impossible to monetize, but
might give additional reasons to invest in a biogas plant, are:
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8.1 Costs of biogas production
The costs of biogas production can be divided into three categories: investment
costs, operational costs and financial costs.
Investment costs for a biogas plant vary, depending on factors such as:
The experiences in South Africa show that large biogas plants that intend to
produce one megawatt of electricity (MWe) may cost in the range of R35 to R45
million.
In general, the relative investment cost (CAPEX plus OPEX) per biogas unit will
decrease with an increase in the size of the plant. This is because basic costs
apply regardless of the type and size of the plant. Therefore, the larger a plant,
the lower the cost per unit of installed capacity.
In the case of individual components (mixers, pumps, etc.), the cost difference
for similar equipment might vary as much as 30% (+/-), depending on the plant
design. Where possible, locally produced equipment should be procured, as this
could provide considerable cost savings.
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In the case of larger-scale biogas plants, approximately 10–20% of the total
investment should be budgeted as project development costs.
Operational costs depend on the size of the biogas plant. Anecdotal evidence in
South Africa suggests that operational costs can be about R900 000 for a 50 kWe
biogas plant, R1.3 million for a 200 kWe plant and R3.7 million for a 1 MWe plant.
Capital expenses are influenced by investment costs and the conditions related to
the financing of the project. The CAPEX for the South African financial framework
would need to take into consideration the following factors:
Assume that a biogas plant of 1 MWe with a CHP plant which operates approximately
8 000 hours per year will result in an electricity production of 8 000 000 kWhel.
Anecdotal evidence from South Africa suggests that the revenues will be in the
range of 0.9–1.6 R/kWhel. If, for example, the monetary value for electricity is 1.5 R/
kWhel, the electricity produced has a monetary value of R12 million per year.
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Some industries, such as chicken farming, could potentially use the heat produced
by CHP units and thus generate additional revenue for the project. If, for instance,
a project runs a CHP plant, the engine will produce around 8 000 000 kWhth per
year. If only 25% of the amount of heat produced can be sold at 0.5 R/kWh, the
revenue from heat could reach R1 million per year.
8.2.2 Fertilizer
For example, a 1 MWe biogas plant would require about 65 000 tonnes of liquid
cattle manure feedstock per year. Each tonne of digestate will contain 5.33 kg
of total nitrogen, 1.68 kg P2O5 and 2.45 kg K2O. This example will result in 346.45
tonnes of nitrogen, 109.2 tonnes of P2O5 and 160 tonnes of K2O being produced
per year.
The biogas process improves the fertilizing effect of the minerals that were
already present in the input material, thus enhancing the value of the digestate
as fertilizer.
A biogas plant also reduces greenhouse gas (GHG) emissions. Therefore, another
possible revenue source is the sale of carbon credits.
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Biogas production can help to reduce GHG emissions in several ways:
Methane is a rather aggressive GHG, which is why methane emissions from biogas
plants must be prevented or limited. This can be done by ensuring no leaks during
operation, covering the digestate storage areas, and installing a flare which burns
the produced methane in times when the biogas utilization is not in operation.
In 2019, a carbon tax was introduced in South Africa, which may be potentially
beneficial to the biogas industry, given the emission reduction potential of the
technology.
The banking sector is in general very risk-averse, and due to the relatively small
number of biogas plants developed in South Africa, banks still perceive biogas
projects as high-risk investments. With higher risk comes higher interest and
more stringent lending conditions. However, there are several options to finance
a biogas plant in South Africa.
BIOGAS GUIDEBOOK
8.3.1 Financing and funding instruments
The commercial banking sector of South Africa by now has recognized the
financing of renewable energy (RE) projects as a business area. South African
banks are highly involved in the Risk Mitigation Independent Power Producer
Procurement Programme (RMIPPPP). Therefore, it is generally possible for
creditworthy companies and enterprises to finance their RE plants via loans from
commercial banks. 11
52
Additionally, numerous public financing and supporting measures have been
introduced to promote the use of renewable energy and the increase of energy
efficiency in industry. These measures include financing instruments as well as
tax incentives. Funding instruments are accessible for companies established
in South Africa. A selection of instruments will be presented in the following
paragraphs to give an overview of the local funding mechanisms. 11
The GEEF aims at reducing the energy and CO2 intensity of South African industry,
as well as raising awareness among South African enterprises regarding energy
consumption. Specifically, the following aims are targeted:
To achieve these goals, the GEEF supports projects by enterprises registered and
operating in South Africa (with a focus on small and medium enterprises (SMEs)),
according to the following conditions:
More information about the GEEF is available on the website of the IDC: Green
Energy Efficiency Fund – Industrial Development Corporation .
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8.3.3 Environmental tax incentives
South African Revenue Service (SARS) has developed measures to promote in-
vestment in renewable energy. These aim to help businesses become more
energy-efficient and self-sufficient.
An amendment to section 12B of the Income Tax Act provides for an accelerated
depreciation for movable assets used in the production of renewable energy. More
specifically, it allows for a depreciation on a 50|30|20 basis over three years in respect
53
of any machinery, plant, implement, utensil or article (referred to as a qualifying
asset) owned by the taxpayer. 12
Wind power
Solar energy
Hydropower (gravitational water forces) to produce electricity of not
more than 30 megawatts
Biomass comprising organic waste, landfill gas or plant material.
The Asian Development Bank, in their publication about business models for
renewable energy, 2 differentiates between two types of business models for
renewable energy and energy efficiency projects: a) ownership business models and
b) service models.
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Typically, a special-purpose vehicle (SPV) is developed to build, maintain and
operate the project for a contracted period of time. The SPV enters into a contract
with the client (the off-taker) and with subcontractors to build the facility and
then operate and maintain it. 2
A multiparty ownership model could also be suitable for a biogas project. Figures
8.1 and 8.2 show the aspects of multiparty ownership for a biogas plant.
Farmer’s Slurry
delivery a
energy
sales
– Farmers have no equipment liability.
– Site-related risk is with third party or utility.
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Farmer 1 Farmer 2 Farmer 3 multiple
Slurry Slurry Slurry
land
lease
Anaerobic Digestion
Community or Central Site biogas Power Generation
Privately Owned Land land lease Farmer or Communal or Digester Site
55 or Others
biogas sales
contract
Third Party Utility
land lease agreement biogas
payment a energy
sales
– Farmers have no equipment liability.
– Site-related risk is with third party or utility.
– Project may benefit from lease payment/property exemption if on commercial land.
service equipment
Equipment
End user
Supplier
payment payment
service loan
Credit
End user COOPERATIVE
Provider
payment repayment
service service
Maintenance/
End user
Service Company
payment payment
Multiple
Figure 8.3: User cooperative business model 2
A collective action model involves the establishment of a non-profit community organization, owned and
managed by its members. The community operates the project and is also in charge of the financial management.
This model offers a mechanism for governments and NGOs to support renewable energy projects at the local
level. Figure 8.3 shows what this model could look like in practice.
BIOGAS GUIDEBOOK
9. Planning a biogas plant
The first considerations should also include matters like the possibility of creating
partnerships with local stakeholders, feedstock providers and the customers of
outputs such as electricity/heat.
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Based on the feasibility study, further steps of project development can be taken.
For bigger projects with higher investment, additional due diligence might be
required.
9.3.2 Communities
Communities or farms near the planned location of the biogas plant can support
or block the project. Involve these stakeholders from the beginning. Convene
stakeholder meetings and offer sound and realistic information. Communicate
the issues and advantages of a proposed biogas plant:
9.4 Finance
In order for a biogas plant to be constructed, it has to prove to be financially
viable. Large commercial plants will most likely require considerable funding.
BIOGAS GUIDEBOOK
Financing conditions strongly depend on the perceived risks. Reliable technology
and professionals experienced in planning are important aspects for banks.
Present a realistic business case and economic viability assessment to the bank.
Investment
Finance conditions
Interest rate of debt
58
Return on equity (ROE)
Return on investment (ROI)
Ratio equity/debt
Running time of finance
Weighted Average Cost of Capital (WACC).
Construction
– Statistics
– Site selection (e.g. near watercourses or other environmentally
sensitive areas)
Emissions/Pollution
– To the atmosphere
– To the soil
– To water bodies
Digestate application
Pasteurization of digestate
Waste utilization
Safety
Energy connection/supply
Environmental impact assessment needed?
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Table 5 presents the regulations to be considered when establishing a biogas
plant.
Name of the licence/ Responsible entities Approximate Additional requirements (if any)
permit time frame
Environmental impact Designated provincial 1.5 years Specialized studies including but not limited to:
59 assessment (EIA) department Groundwater impact study
Surface water impact
Heritage / visual impact assessment
Air emission impact
Biodiversity assessment
Land lease agreement Land owner (for leases 6 months Required if someone else besides the owner
shorter than 10 years) of the land plans to build and operate a plant,
Land owner and where maximum duration of agricultural land
Department of lease is 10 years. In cases where more time is
Agriculture (for leases required, e.g. when the life of the plant is 20
longer than 10 years) years, an application has to be lodged with the
Department of Agriculture for an extension.
Municipal consent of Responsible municipality 2 years Granted by municipalities, allows biogas plants
use licence to be built and operated
Waste management Department of Forestry, Up to 6 months Application is issued under the National
licence Fisheries and the Environmental Management Act of 2008 by
Environment the Department of Forestry, Fisheries and the
Environment. The licence authorises the stor-
age and processing of animal waste. Must go
through an EIA process to obtain the licence.
Water use licence Department of Water Up to 2 years Application issued to the Ministry of Water and
application and Sanitation (DWS) Sanitation according to the National Water Act.
Generation licence National Energy Up to 6 months A generation licence from NERSA for projects
Regulator of South outside the REIPPP have to get approval from
Africa (NERSA) the Department of Energy.
Wheeling Eskom 6 months The procedure for this requires that a power
agreement into the purchase agreement is concluded. This is not a
national grid clear-cut process in all projects and can still be
very costly, cumbersome and time-consuming.
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10. Biogas plant construction
Planning of a biogas plant may take months. Project development costs for large
biogas plants could be as high as 10% of the investment costs.
The planning of a biogas plant has several steps. In the figure below, some typical
phases of this process are shown.
Rough Selection
planning of biogas Permission
manufacturer Implementa-
planning Planning of
tion planning
Optional: Tender construction
process
Figure 10.1: Biogas plant planning process
On very large biogas projects and after the specifications of the biogas plant have
been completed, a tender process could be initiated to identify companies who
offer complete biogas plants or components. Commonly, there are two ways to
organize the purchase of a biogas plant.
Local contacts and experiences are also important aspects influencing the path you
will take.
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10.2 Collective action partnerships
In any project that is a collective active partnership, consider these issues:
At the end of the construction phase, an inspection of the plant should take place to
sign off the construction. Consider these issues:
10.4 Documentation
The biogas plant manufacturer should supply complete documentation to the operator
regarding:
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11. References
BIOGAS GUIDEBOOK
15. Baader, Wolfgang, Dohne, Erich and Brenndörfer, Michael. Biogas in
Theorie und Praxis. s.l.: KTBL-Schriften-Vertrieb im Landwirtschaftsverl.
1978.
16. Bachmann, Nathalie. Sustainable Biogas Production in Municipal
Wastewater Treatment Plants. s.l.: IEA Bioenergy. 2015.
17. Cape EAPrac. Biogas Development in South Africa: Analysis of Licensing and
Permitting Processes. s.l.: South African-German Energy Programme (GIZ-
SAGEN). 2015.
63 18. European Biogas Association. Annual Statistical Report of the European
Biogas Association. 2017.
19. energypedia.info. [Online] 5 December 2017. https://energypedia.info/wiki/
Feed-in_Tariffs_(FIT).
20. carbontrust.com. Technology Guide: Introducing Combined Heat and Power.
[Online] September 2010. https://www.carbontrust.com/media/19529/
ctv044_introducing_combined_heat_and_power.pdf.
21. Burkhardt, Peter. Cornell Composting. [Online] 1995. [Accessed:
14.05.2018.] http://compost.css.cornell.edu/odors/ammonia.html.
22. FNR. Guide to Biogas – From Production to Use. Gülzow: Fachagentur
Nachwachsende Rohstoffe e.V. (FNR). 2010.
23. German Federal Environment Agency. Environmental Costs in the Energy
and Transport Sectors – Recommendations by the Federal Environment
Agency. Dessau-Roßlau: Umweltbundesamt. 2013.
BIOGAS GUIDEBOOK
64 Frank Hofmann, Giannina Bontempo, Mareike Fischer, Manuel Maciejczyk, David Wilken,
Florian Strippel, Claudius da Costa Gomez and Gepa Porsche
Fachverband Biogas e.V.
Angerbrunnenstr. 12
85356 Freising, Germany
T: +49 8161 984 660
E: [email protected]
W: www.biogas.org
BIOGAS GUIDEBOOK
forestry, fisheries
& the environment
Department:
Forestry, Fisheries and the Environment
REPUBLIC OF SOUTH AFRICA
[email protected]
www.environment.gov.za