The Context
Livestock farming generates more global warming greenhouse gases than transportation, and is only second to energy generation. The livestock sector accounts for 9% of the CO2, 65% of the nitrous oxide and 37% of the methane that is produced by human activity, predominantly from manure . It is for this reason that cows are seen as one of the greatest threats to global warming.
Driven by increasing environmental concern, coupled with stringent government regulations pertaining to air pollution and waste management, the demand for renewable fuels is growing. Liquefied natural gas (LNG) and liquefied biogas (LBG) are beginning to replace traditional oil-based fuels in marine and heavy vehicle engines, power generation and process industries.
The problem
Livestock manure is also an excellent source of LBG, turning waste product into energy. However, currently, it is only possible to generate LBG through large scale plants. This means that it is not economically viable to utilize manure from small and medium sized farms, which make up 40% of the total biogas production potential , as small, decentralized plants are currently not economically efficient. The major reason for this due to the lack of a commercially viable technology that can generate liquid biogas at a small scale, while collecting and transporting the bulky manure to a centralized plant is also resource intensive, and inefficient. This means that less than 1% of the potential biogas production is being produced2.
The solution
We, at BFG, have developed and piloted an effective, small-scale and affordable, containerized energy plant that converts manure into 97% pure liquefied biogas (LBG) and separates the CO2 it contains.
This has several advantages:
- No need to transport sludge to LBG plant – the plant is onsite
- Biogas produced is in liquefied form that meets vehicle use requirements
- This allows easy storage and transportation, reducing transport costs by 84%
- Economically viable to produce biogas at decentralized small scale farms
- Turns pollutant into fuel source; turns a cost into income
- Decreased amount of unprocessed manure leads to lower emissions.
Based on our preliminary R&D results, we have identified a business opportunity to offer the CryoSep plant - a container based LBG producing plant for the disposal and valorisation of farm sludge via a 100% environmentally clean process. By creating decentralised LBG plants, we unlock a huge potential market for this sustainable technology.
Crucially, our business plan is not to sell LBG production plants to farmers, but rather to install container based LBG production plants on agricultural sites and then sell the produced fuel to LBG distributors. This business model means that we do not rely on the farmer to invest in the infrastructure. As the plant is transportable, it allows us to own and manage the plant. The farmer is reimbursed for supplying the manure as a % of the gas produced, estimated at approximately 30,000€/ year.
The objective of this feasibility study is to confirm the technical feasibility and business opportunity presented to us at Biofrigas by the Biofrigas CryoSep plant. In particular, we aim to discern the needs and demands of farmers and other stakeholders, and to identify the best business model to exploit the technology. We also consider whether the viability of including any additional functionalities that farmers are looking for.
