Promoting bioeconomy routes: From food waste to green biomethane. A profitability analysis based on a real case study in eastern Germany

Abstract

Profitability studies are needed to establish the potential pathways required for viable biomethane production in the Brandenburg region of Germany. This work study the profitability of a potential biomethane production plant in the eastern German region of Brandenburg, through a specific practical scenario with data collected from a regional biogas plant located in Alteno (Schradenbiogas GmbH & Co. KG). Several parameters with potential economic influence such as distance of the production point to the grid, waste utilization percentage, and investment, were analyzed. The results illustrate a negative overall net present value with the scenario of no governmental investment, even when considering trading the CO₂ obtained throughout the process. Subsidies needed to reach profitability varied with distance from 13.5 €/MWh to 19.3 €/MWh. For a fixed distance of 15 kms, the importance of percentage of waste utilization was examined. Only 100% of waste utilization and 75% of waste utilization would reach profitability under a reasonable subsidies scheme (16.3 and 18.8 €/MWh respectively). Concerning the importance of investment, a subsidized investment of at least 70% is demanded for positive net present values. Besides, the sensitivity analysis remarks the energy consumption of the biogas upgrading stage, the electricity price, and the energy consumption of biogas production as major parameters to be tackled for the successful implementation of biogas upgrading plants. The results here obtained invite to ponder about potential strategies to further improve the economic viability of this kind of renewable projects. In this line, using the CO₂ separated to produce added-value chemicals can be an interesting alternative.

Keywords: Biogas upgrading; Biomethane production; Governmental incentives; Green energy; Waste valorization.