[Digestion] High costs of biogass plants in Norway

[Harold leffertstra]

Hello all
Our Agency - Climate and Pollution Agencu made in 2010 a study of measures in the Agriculture sector to curb the emissions of climate gases. The production of biogass from manure was one of them, with reductions of methane and N2O from the storage of manure as well as a potential to reduce the emissions of CO2  by substitution of fossile fuels. Our consultant provided us with costs for the building and running costs, much higher than any other country in Europe, included neigbouring Sweden and Denmark.
For plants with capacities to treat 50 - 100.000 tonns of manure the following figures were given:
 
4.3 million tons of manure/year (about 30 % of the total amount of available manure) representing manure from farms in areas with a relative high density of animals: 
  
Biogassgeneration: 710 GWh/year 
Investment= 4.3 billion NOK = 540 million € 
Cost of Capital = 350 million NOK = 44 million €/year 
Transport, labor, maintenance and electricity; 215 million NOK = 27 million €/year 
  
  
Investment 126 €/ton manure annual capacity 
Cost of capital; 10 €/ton manure 
Cost of labor etc:  6 € /ton manure 
 Sum: ca 16 €/ton 
  
Plant 100.000 ton manure/year: 
Investment : 12.6 mill € 
Capital + other cost:  1,6 mill € 
  
Compared to the figures below, they are 60-100 % more expensive, even without assumed electricity generation. 
  
Knut Hjort Gregersen (2005) Centralised Codigestion Plants in Denmark - Present situation and future perspectives. Bioenergy 2005, Trondheim, Norge: 
  
Plant with annual capacity of 110.000 m3 
  
Investment: 55 euro/m3 annual capacity 
Cap + other cost: 10 €/ m3 behandlet 
  
One of the possible explanations which is given, is that manufactorers from Central Europe are not very interested in the Norwegian market - low potential and calculate with hig costs in their bids. 
  
We would like your view points on the given figures; do they seem reasonable? 
Would manufactorers lower their prices to a "european" level?
These high costs made the measure "Biogas" very costly"  in relation to the obtained emission reductions, even when taken in consideration other benefits.
 
Looking forward to your comments
 
Harold Leffertstra

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