The economic performance of combined heat and power from biogas produced from manure in Sweden – A comparison of different CHP technologies

Abstract

Interest in the generation of biogas from agricultural residues is increasing rapidly due to its climate benefits. In this study, an evaluation of the economic feasibility of various technologies, also on different scales, for the production of combined heat and power from manure-based biogas in Sweden is presented. The overall conclusion is that such production is not profitable under current conditions. Thus, the gap between the calculated biogas production cost and the acceptable cost for break-even must be bridged by, for example, different policy instruments. In general, efficiency of scale favors large-scale plants compared to individual farm-scale ones. However, a large, centralized biogas plant, using manure from numerous farms, is not always more cost efficient than a large, farm-scale plant treating manure from a few neighboring farms. The utilization of the produced heat, electricity prices, and political incentives, all have a significant impact on the economic outcome, whereas the value of the digestate as fertilizer is currently having a minor impact. Utilization of heat is, however, often limited by the lack of local heat sinks, in which case the implementation of a biogas process operating under thermophilic conditions could increase the profitability due to a more efficient utilization of reactor volume by using more process heat. The results from this study could be utilized by policy makers when implementing policy instruments considering biogas production from manure as well as companies involved in production and utilization of biogas.