Biogas and fertiliser production
Transcript of Biogas and fertiliser production
1. OVERVIEW PROJECT
2. BUSINESS CASE/MODEL
3. KEY BARRIERS TO OVERCOME
4. KEY POLICIES
5. KEY TAKE-AWAYS
Contents:
ADD VALUE TO AGRIBUSINESS SUPPLY CHAIN
Biogas and fertiliser production from agricultural waste:Central Agrícola, GT
Christian Colindres
Business Development Officer,
Central Agrícola
June 16th, 2021
1 ORIGIN AND
LOGISTICS OF
RAW MATERIAL
2 IMPORT AND TRADING
3 STORAGE OF RAW
MATERIAL.
PRODUCTS AND
SERVICES
(ANIMAL HEALTH
AND NUTRITION)
4
5
TRANSPORT/LOGISTICS 6 PRODUCTION
7END CUSTOMER
Business partners
Central Agrícola Group
Customers
OUR AGRIBUSINESS SUPPLY CHAIN
* GE Jenbacher Generator ™ CHP Unity (1,062 MW)
Power; 8,000
Heat; 9,000
7,400
7,600
7,800
8,000
8,200
8,400
8,600
8,800
9,000
9,200
Power Heat
Yield generation MWh/year*
1. OVERVIEW PROJECT:
a. TECHNOLOGY:
b. SIZE:
c. MAIN MOTIVATION:
Mid- to large-scale rural applications (mesophilic temperature)
1,062 MW ( +/- 60.000,00 metric tons of waste); estimated to supply +/- 8,000 MWh / year of in on-grid
+ Add value to our waste+ Final disposal of waste: low in emissions and
resilient+ Diversify the income of the farm from the
egg production unit+ Safeguards the variability of the prices of
livestock products
95’AGRIBUSINESS
SUPPLY CHAIN
10’ ADQUIRED
POULTRY FARM
PILOT PLANT &
FEASIBILITY STUDY
POWER CALL (TENER
POWER SUPPLY)
DESIGNS &
ENGINEERING
OPERATION
BACKGROUNG &PRE-
INVESTMENT
EXECUTION INVESTMENT
OPERATIONS
1995 Established with an Agribusiness supplies company
2010 Acquired an egg production farm (+/- 500,000 birds)
2014 Feasibility study and Tender for Power Supply (public tenders called “PEG 3-2013), awarded a supply of
1,000 MWh, through a long-term PPA (15 year), effective an established date with the distributor.
2015 Pilot plant and feasibility study
2016-2017 Designs, Engineering, Procurement and Construction stage with EPCM Management Agreement
2018 start-up or commissioning and operation/manager
14’
15’
16’
17’
18’
PROCUREMENT,
CONSTRUCTION, &
COMMISSIONING
OUR LEAD TIME OF THE DEVELOPMENT
1. OVERVIEW PROJECT:
* GE Jenbacher Generator ™ CHP Unity (1,062 MW)Our project: 1/4000 MW (0.025%) of total market
Installed capacity: 4.000 MW of total market
1. OVERVIEW PROJECT:
2. OUR BUSINESS MODEL
a. How is the project/program situated in the electricity market?
+ Grid-connected electricity with access available; in
combination with self-consumption of electricity/heat with PPA
(power purchase agreement) fixed price with annual
increment according to PPI -Annual Producer Price Index Industrial Commodities les fuels – WPU03T15M05-
1/4000 MW (0.025%)+ Type of contract PPA- energy generated, a minimum amount
is not required
+ Categorized with a smaller generator, called “Renewable
Distributed Generators (GDR)” plants with less than 5 MW of
installed capacity, with free access to the grid and subject to
variations in spot market prices.
Upstream:
Midstream:
Downstream:
Diagram 3. Agriculture Waste value chain
Management of waste sources,
traceability service and ensure a
correct final disposal
Biogas / digestate
and valorization of
biogas for power /
heat generation
add value to the digestate
for commercialization as
an organic and / or
organic-mineral fertilizer
b. What has been the business plan/case?
PRE-INVESTMENT:
INVESTMENT:
c. Who develops the project?
Developer Company thought
EPCm Agreement :
Engineering, Procurement and
Construction Management
Agreement
Our Business Development
Department (BDD/Central Agricola)
Pre-Investment phase
Equity: 60% by owners
(Central Agricola Group)
Grant: 40% by (CABEI-
Central American Bank
for Economic
Integrations)
Investment phase
Equity: 35% by owners
(Central Agricola Group)
Credit: 65% by Local
Bank through a global
credit line of CABEI
d. How has the finance been set up?
2. OUR BUSINESS MODEL
**Developer Company thought EPCm
Agreement : Engineering, Procurement and
Construction Management AgreementDesign , 2017
2. OUR BUSINESS MODEL
September 2017 **Developer Company thought EPCm Agreement : Engineering, Procurement
and Construction Management Agreement
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
4,500.00
5,000.00
*Pre-Investment **Investment
INVESTMENT STRUCTURE IN EACH PHASE ´000 US$, Est.
knowledge
CapEx
Taxes
Financial Expenses
Logistics
Delays/customs
commissioning
~5% (200 US$)
~95% (4.400 US$)
~70% (3.200 US$)
d. How has the finance been set up?
Total investment: 4,6 mm US$
*Our Business Development Department (BDD/Central Agricola)
**Developer Company thought EPCm Agreement: Engineering, Procurement and Construction Management Agreement
~10% (480 US$)
2. OUR BUSINESS MODEL
e. Who is operating and managing the project?
Operating
• Business unit: Plant Manager who oversees
the technical area and operation and Two
(2) plant operators
Managing & monitoring
• Business Unit: Unit Manager who oversees
the administrative, commercial and
regulatory areas
• Monitoring and follow-up contract for the
production of biogas with the developer
• Monitoring and maintenance of CHP unit
with GE Jenbacher for major services and
training for our plant operators to execute
the minor services.
2. OUR BUSINESS MODEL
3.KEY BARRIERS TO OVERCOME:
Key barriers in the DEVELOPMENT STAGE
• Know-how and technology
• Bioelectricity is not yet price-competitive with other energy sources “Subsidy or allowance in the price or diversify the products and services that the biogas plant must provide. For example; ??
• Income of electric power (bioelectricity) is not enough to cover the operation, charge-off and financial expenses costs of a biogas plant
Key barriers in the FINANCIAL STAGE
• Unknown technology or business model by local banks
• Risk for long periods of investment: around 2 years; included design and engineer's study
• Competitive interest rates and grace periods available, in a term greater than 18 months.
• Guarantees
Key barriers in the IMPLEMENTATION STAGE
• Customs have no knowledge about technology; which causes delays and additional storage costs and stays at the ports of entry to the region. 3% of investment related to delays
• Contracts, guarantees and insurance (technical and economic coverage)
What key barriers were encountered in the development, financing or implementation phases?
4. KEY POLICIES:
Key polices and
government support the
DEVELOPMENT STAGE
•DECRETO NÚMERO 52-2003; Incentives Law
for the Development of Renewable Energy
Projects/Guatemala Government :
•ARTÍCULO 5. Incentives:
•Import taxes
•Operations taxes and income taxes
•Planes de Expansión - Sistema Eléctrico
Guatemalteco.
•The first part of the plan deals with the
electricity generation system and is called
Plan de Expansión Indicativo del Sistema de
Generación 2008-2022 (PEISG)
•The second part is named Plan de Expansión
de Transportes (PET) and deals with the
upgrading of the aging transmission system.
Key polices and government support in the FINANCIAL
STAGE
•No availability to bio-electricity technology or
business model
Key polices and government support in the
IMPLEMENTATION STAGE
•DECRETO NÚMERO 52-2003; Incentives Law for the Development of Renewable Energy Projects/Guatemala Government :
•ARTÍCULO 5. Incentives:
•Import taxes
•Operations taxes and income taxes
What key policies and governmental support measures enabled the development, financing and implementation?
5. KEY TAKE-AWAYS:
Are there any key take-aways that other decision-makers should be aware of? Summary of key barriers and enablers ?
Business model included PPA (Power Purchase Agreement )
The waste value chain
Key-partner (Financial & developer)
Know-how and technology
HEADQUARTERSCalzada Atanasio Tzul 22-00, Z. 12 Empresarial El Cortijo II Ofibodega 120,
Guatemala City, GuatemalaPBX: +502 23270300 | FAX: +502 23270324
April 2018