Economic Rationale / Business Model:
Producing biogas and bio coal and selling those fuels on market on market price.
Biogas can be sold as traffic fuel to heavy traffic (buses, trucks, ships).
Bio coal can be sold to power plants to replace fossil coal or as advanced fertilizer.
Bio coal can replace fossil coal without any major retro-fitting. Bio coal enables the use of existing coal-firing power plants until the end of their planned life, even if the use of fossil coal would be banned.
Feedstock is local.
As the bio coal is a side stream form biogas production, bio coal can be produced at same cost level as wood pellets.
Bio fuel fab produces:
7300 tons of biomethane (CH4)
50000 tons of bio coal
66300 GWh of heat
Unit size is 100 k dry ton/a, investment is 23,4 M€.
Revenue is 14,3 M€
Total OPEX is 7,4 M€/a
EBITDA is 6,9 M€
Payback time is 5,08 yrs.
This one facility would be the operating pilot. Several facilities could be built all over the Europe and world. This concept of using local waste biomass as feedstock would give Europe self-sufficiency in energy resources in land and water traffic and compensation power generation to support solar and wind energy. This concept would also provide distributed energy, lessening the risk of energy shortage in the EU.
Financing details
Project financing secured: EUR 17.50 million (70 %)
Financing source: Private
Biogas will be bought by Gasum. Bio coal will be bought by Helen, Tampereen Energia and other utility companies. As there is a delivery agreement between the parties, private funding up to 70% / 16,4 M€ is possible from banks. The remaining 30 % / 6,6 M€ are sought from EU or EIB financing.
The promoter has received / applied for EU / EIB financing support related to this project.
Existing or potential bottlenecks for the realisation of the project / Potential risks
Political / regulatory risk, if energy generation by biomass incineration is prohibited, the market could collapse. Using bio coal as fertilizer provides a back-up to that threat.
If all traffic goes electric and the use of gaseous traffic fuels would be forbidden, the risk of biogas market collapse could realize.
Project additional information
The technology is new and proprietary. Technology risk has been clarified by successful proof-of-concept and commercial pilot tests.
The Commission gives no warranty and makes no representation, whether expressed or implied, that the Project Information is error free. The Project Information is provided without any guarantees, conditions or warranties as to its accuracy.
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Rewards
$16000000 - more
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Project Potential Risks:
Political / regulatory risk, if energy generation by biomass incineration is prohibited, the market could collapse. Using bio coal as fertilizer provides a back-up to that threat.
If all traffic goes electric and the use of gaseous traffic fuels would be forbidden, the risk of biogas market collapse could realize.
Advantages:
Publication: 12/07/2018 | Last update: 12/07/2018
The Commission gives no warranty and makes no representation, whether expressed or implied, that the Project Information is error free. The Project Information is provided without any guarantees, conditions or warranties as to its accuracy.
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