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Business Model Development for Biogas Electric Power Generation at Livestock Farms in China

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Biogas for cooking and electricity

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Biogas is a gaseous mixture generated during anearobic digestion processes using waste water, solid waste (e.g. at landfills), organic waste, and other sources of biomass. Biogas can be upgraded to a level compatible with natural gas (‘green gas’) by cleaning (removal of H2S, ammonia and some hydrocarbons from the biogas) and by increasing its methane share (by removing the CO2).

Clean Development Mechanism market status: 

[This information is kindly provided by the UNEP Risoe Centre Carbon Markets Group.]

The following CDM methdologies are applied for biomass gasification projects: AMS-I.D.: Grid connected renewable electricity generation AMS-III.I.: Avoidance of methane production in wastewater treatment through replacement of anaerobic systems by aerobic systems, AMS-III.H.: Methane recovery in wastewater treatment, AMS-I.A.: Electricity generation by the user and AMS-I.C.: Thermal energy production with or without electricity for small-scale projects.

As of March 2011, there are 14 biomass gasification projects in the CDM pipeline, out of which 8 are registered and for 1 project CERs have been issued.

To develop a business model to design, finance, build, integrate, and operate large-scale biogas facilities at livestock farms in China through market channel.

Location

China
39° 55' 44.04" N, 116° 23' 16.8" E
Main activity and output: 
  • l Conduct a feasibility study on setting up ESCOs for biogas to power (BTP) including the survey and identification of candidate companies who are willing to engage in ESCO business and have capacities of do business of biogas for power;
  • l Conduct a technology comparison;
  • l Select farms with different technologies and analyse their operational situation;
  • l Explore the possibility of project financing through CDM;
  • l Develop Business plan;
  • l Develop a handbook for BTP;
  • l Build capacity through training to introduce energy service concept to animal husbandry sector, as well as financing through CDM regime;
  • Create an ESCO to demonstrate the business model.
Expected impact: 
  • The project intends to explore a new business model to overcome the barriers of digester construction in animal husbandry sector in China, which include a heavy reliance on government funds, unreasonable technology options, poor management capacity and low capacity gaining money for sustainable development.
  • More companies which can provide technologies of biogas digester and biogas to power generation can be involved in the business using energy service mean.