IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v201y2020ics0360544220307581.html
   My bibliography  Save this article

Beyond energy crops and subsidised electricity – A study on sustainable biogas production and utilisation in advanced energy markets

Author

Listed:
  • Bedoić, Robert
  • Jurić, Filip
  • Ćosić, Boris
  • Pukšec, Tomislav
  • Čuček, Lidija
  • Duić, Neven

Abstract

The aim of this study is to investigate the operation of biogas plants in advanced energy markets after energy crops become limited in their use and biogas plants exit subsidy schemes for electricity production. Continuous biogas combined heat and power production and sale of electricity on the day-ahead market could be a viable operation strategy only in the case of low-cost substrates. When the break-even cost of electricity production in biogas power plants reaches 100 €/MWhel, selling electricity on the day-ahead market does not create profit. The study shown that a more profitable operation strategy involves coupling biogas power plant operation on the electricity balancing market with biomethane production or combining a small-scale sugar beet processing facility with a biogas upgrading plant to cover heat demand for sugar beet processing. Techno-economic analysis showed that the viability of both alternative operation strategies is severely impacted by the selling price of biomethane. In the given market conditions, a selling price of biomethane below 50 €/MWh is not viable for a biogas plant. The model developed could be used as a guideline for biogas plant operators on how to proceed after significant changes appear in both biogas production and biogas utilisation.

Suggested Citation

  • Bedoić, Robert & Jurić, Filip & Ćosić, Boris & Pukšec, Tomislav & Čuček, Lidija & Duić, Neven, 2020. "Beyond energy crops and subsidised electricity – A study on sustainable biogas production and utilisation in advanced energy markets," Energy, Elsevier, vol. 201(C).
    • Handle: RePEc:eee:energy:v:201:y:2020:i:c:s0360544220307581
    DOI: 10.1016/j.energy.2020.117651
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544220307581
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2020.117651?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Horschig, Thomas & Adams, P.W.R. & Gawel, Erik & Thrän, Daniela, 2018. "How to decarbonize the natural gas sector: A dynamic simulation approach for the market development estimation of renewable gas in Germany," Applied Energy, Elsevier, vol. 213(C), pages 555-572.
    2. Budzianowski, Wojciech M. & Budzianowska, Dominika A., 2015. "Economic analysis of biomethane and bioelectricity generation from biogas using different support schemes and plant configurations," Energy, Elsevier, vol. 88(C), pages 658-666.
    3. Barbera, Elena & Menegon, Silvia & Banzato, Donatella & D'Alpaos, Chiara & Bertucco, Alberto, 2019. "From biogas to biomethane: A process simulation-based techno-economic comparison of different upgrading technologies in the Italian context," Renewable Energy, Elsevier, vol. 135(C), pages 663-673.
    4. Kozłowski, Kamil & Pietrzykowski, Maciej & Czekała, Wojciech & Dach, Jacek & Kowalczyk-Juśko, Alina & Jóźwiakowski, Krzysztof & Brzoski, Michał, 2019. "Energetic and economic analysis of biogas plant with using the dairy industry waste," Energy, Elsevier, vol. 183(C), pages 1023-1031.
    5. Alberto Benato & Alarico Macor, 2019. "Italian Biogas Plants: Trend, Subsidies, Cost, Biogas Composition and Engine Emissions," Energies, MDPI, vol. 12(6), pages 1-31, March.
    6. Vogtenhuber, H. & Hofmann, R. & Helminger, F. & Schöny, G., 2018. "Process simulation of an efficient temperature swing adsorption concept for biogas upgrading," Energy, Elsevier, vol. 162(C), pages 200-209.
    7. Ervin Saracevic & Daniel Koch & Bernhard Stuermer & Bettina Mihalyi & Angela Miltner & Anton Friedl, 2019. "Economic and Global Warming Potential Assessment of Flexible Power Generation with Biogas Plants," Sustainability, MDPI, vol. 11(9), pages 1-23, May.
    8. Scarlat, Nicolae & Dallemand, Jean-François & Fahl, Fernando, 2018. "Biogas: Developments and perspectives in Europe," Renewable Energy, Elsevier, vol. 129(PA), pages 457-472.
    9. Marco Rebhann & Yusuf Nadi Karatay & Günther Filler & Annette Prochnow, 2016. "Profitability of Management Systems on German Fenlands," Sustainability, MDPI, vol. 8(11), pages 1-21, October.
    10. Lauven, Lars-Peter & Geldermann, Jutta & Desideri, Umberto, 2019. "Estimating the revenue potential of flexible biogas plants in the power sector," Energy Policy, Elsevier, vol. 128(C), pages 402-410.
    11. Pablo-Romero, María del P. & Sánchez-Braza, Antonio & Salvador-Ponce, Jesús & Sánchez-Labrador, Natalia, 2017. "An overview of feed-in tariffs, premiums and tenders to promote electricity from biogas in the EU-28," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1366-1379.
    12. Lauer, Markus & Leprich, Uwe & Thrän, Daniela, 2020. "Economic assessment of flexible power generation from biogas plants in Germany's future electricity system," Renewable Energy, Elsevier, vol. 146(C), pages 1471-1485.
    13. Picardo, Alberto & Soltero, Victor M. & Peralta, M. Estela & Chacartegui, Ricardo, 2019. "District heating based on biogas from wastewater treatment plant," Energy, Elsevier, vol. 180(C), pages 649-664.
    14. Lijó, Lucía & González-García, Sara & Bacenetti, Jacopo & Moreira, Maria Teresa, 2017. "The environmental effect of substituting energy crops for food waste as feedstock for biogas production," Energy, Elsevier, vol. 137(C), pages 1130-1143.
    15. Maurizio Carlini & Enrico Maria Mosconi & Sonia Castellucci & Mauro Villarini & Andrea Colantoni, 2017. "An Economical Evaluation of Anaerobic Digestion Plants Fed with Organic Agro-Industrial Waste," Energies, MDPI, vol. 10(8), pages 1-15, August.
    16. Unger, Elizabeth A. & Ulfarsson, Gudmundur F. & Gardarsson, Sigurdur M. & Matthiasson, Thorolfur, 2018. "The effect of wind energy production on cross-border electricity pricing: The case of western Denmark in the Nord Pool market," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 121-130.
    17. Götz, Manuel & Lefebvre, Jonathan & Mörs, Friedemann & McDaniel Koch, Amy & Graf, Frank & Bajohr, Siegfried & Reimert, Rainer & Kolb, Thomas, 2016. "Renewable Power-to-Gas: A technological and economic review," Renewable Energy, Elsevier, vol. 85(C), pages 1371-1390.
    18. Griffith, Andrew P. & Haque, Mohua & Epplin, Francis M., 2014. "Cost to produce and deliver cellulosic feedstock to a biorefinery: Switchgrass and forage sorghum," Applied Energy, Elsevier, vol. 127(C), pages 44-54.
    19. Rieke, C. & Stollenwerk, D. & Dahmen, M. & Pieper, M., 2018. "Modeling and optimization of a biogas plant for a demand-driven energy supply," Energy, Elsevier, vol. 145(C), pages 657-664.
    20. Tappen, S.J. & Aschmann, V. & Effenberger, M., 2017. "Lifetime development and load response of the electrical efficiency of biogas-driven cogeneration units," Renewable Energy, Elsevier, vol. 114(PB), pages 857-865.
    21. Herbes, Carsten & Halbherr, Verena & Braun, Lorenz, 2018. "Factors influencing prices for heat from biogas plants," Applied Energy, Elsevier, vol. 221(C), pages 308-318.
    22. Neshat, Soheil A. & Mohammadi, Maedeh & Najafpour, Ghasem D. & Lahijani, Pooya, 2017. "Anaerobic co-digestion of animal manures and lignocellulosic residues as a potent approach for sustainable biogas production," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 308-322.
    23. Rotunno, Paolo & Lanzini, Andrea & Leone, Pierluigi, 2017. "Energy and economic analysis of a water scrubbing based biogas upgrading process for biomethane injection into the gas grid or use as transportation fuel," Renewable Energy, Elsevier, vol. 102(PB), pages 417-432.
    24. Eder, Andreas, 2017. "Cost efficiency and economies of diversification of biogas-fuelled cogeneration plants in Austria: a nonparametric approach," MPRA Paper 80369, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agostini, Marco & Bertolini, Marina & Coppo, Massimiliano & Fontini, Fulvio, 2021. "The participation of small-scale variable distributed renewable energy sources to the balancing services market," Energy Economics, Elsevier, vol. 97(C).
    2. Guoliang Zhang & Suhua Lou & Yaowu Wu & Yang Wu & Xiangfeng Wen, 2020. "A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas," Energies, MDPI, vol. 13(24), pages 1-13, December.
    3. Bedoić, Robert & Dorotić, Hrvoje & Schneider, Daniel Rolph & Čuček, Lidija & Ćosić, Boris & Pukšec, Tomislav & Duić, Neven, 2021. "Synergy between feedstock gate fee and power-to-gas: An energy and economic analysis of renewable methane production in a biogas plant," Renewable Energy, Elsevier, vol. 173(C), pages 12-23.
    4. Piotr F. Borowski & Jan Barwicki, 2022. "Efficiency of Utilization of Wastes for Green Energy Production and Reduction of Pollution in Rural Areas," Energies, MDPI, vol. 16(1), pages 1-12, December.
    5. Guzović, Zvonimir & Duic, Neven & Piacentino, Antonio & Markovska, Natasa & Mathiesen, Brian Vad & Lund, Henrik, 2022. "Recent advances in methods, policies and technologies at sustainable energy systems development," Energy, Elsevier, vol. 245(C).
    6. Jose D. Marin-Batista & Angel F. Mohedano & Angeles de la Rubia, 2021. "Pretreatment of Lignocellulosic Biomass with 1-Ethyl-3-methylimidazolium Acetate for Its Eventual Valorization by Anaerobic Digestion," Resources, MDPI, vol. 10(12), pages 1-14, November.
    7. Aleksandra Petrovič & Sabina Vohl & Tjaša Cenčič Predikaka & Robert Bedoić & Marjana Simonič & Irena Ban & Lidija Čuček, 2021. "Pyrolysis of Solid Digestate from Sewage Sludge and Lignocellulosic Biomass: Kinetic and Thermodynamic Analysis, Characterization of Biochar," Sustainability, MDPI, vol. 13(17), pages 1-34, August.
    8. Lovrak, Ana & Pukšec, Tomislav & Grozdek, Marino & Duić, Neven, 2022. "An integrated Geographical Information System (GIS) approach for assessing seasonal variation and spatial distribution of biogas potential from industrial residues and by-products," Energy, Elsevier, vol. 239(PB).
    9. Robert Bedoić & Goran Smoljanić & Tomislav Pukšec & Lidija Čuček & Davor Ljubas & Neven Duić, 2021. "Geospatial Analysis and Environmental Impact Assessment of a Holistic and Interdisciplinary Approach to the Biogas Sector," Energies, MDPI, vol. 14(17), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bedoić, Robert & Dorotić, Hrvoje & Schneider, Daniel Rolph & Čuček, Lidija & Ćosić, Boris & Pukšec, Tomislav & Duić, Neven, 2021. "Synergy between feedstock gate fee and power-to-gas: An energy and economic analysis of renewable methane production in a biogas plant," Renewable Energy, Elsevier, vol. 173(C), pages 12-23.
    2. D’Adamo, Idiano & Falcone, Pasquale Marcello & Huisingh, Donald & Morone, Piergiuseppe, 2021. "A circular economy model based on biomethane: What are the opportunities for the municipality of Rome and beyond?," Renewable Energy, Elsevier, vol. 163(C), pages 1660-1672.
    3. Skorek-Osikowska, Anna & Martín-Gamboa, Mario & Iribarren, Diego & García-Gusano, Diego & Dufour, Javier, 2020. "Thermodynamic, economic and environmental assessment of energy systems including the use of gas from manure fermentation in the context of the Spanish potential," Energy, Elsevier, vol. 200(C).
    4. Alberto Benato & Chiara D’Alpaos & Alarico Macor, 2022. "Possible Ways of Extending the Biogas Plants Lifespan after the Feed-In Tariff Expiration," Energies, MDPI, vol. 15(21), pages 1-23, October.
    5. Grzegorz Piechota & Bartłomiej Igliński, 2021. "Biomethane in Poland—Current Status, Potential, Perspective and Development," Energies, MDPI, vol. 14(6), pages 1-32, March.
    6. Furtado Amaral, Andre & Previtali, Daniele & Bassani, Andrea & Italiano, Cristina & Palella, Alessandra & Pino, Lidia & Vita, Antonio & Bozzano, Giulia & Pirola, Carlo & Manenti, Flavio, 2020. "Biogas beyond CHP: The HPC (heat, power & chemicals) process," Energy, Elsevier, vol. 203(C).
    7. Dinko Đurđević & Saša Žiković & Paolo Blecich, 2022. "Sustainable Sewage Sludge Management Technologies Selection Based on Techno-Economic-Environmental Criteria: Case Study of Croatia," Energies, MDPI, vol. 15(11), pages 1-23, May.
    8. Danijel Topić & Marinko Barukčić & Dražen Mandžukić & Cecilia Mezei, 2020. "Optimization Model for Biogas Power Plant Feedstock Mixture Considering Feedstock and Transportation Costs Using a Differential Evolution Algorithm," Energies, MDPI, vol. 13(7), pages 1-22, April.
    9. Kamila Klimek & Magdalena Kapłan & Serhiy Syrotyuk & Nikolay Bakach & Nikolay Kapustin & Ryszard Konieczny & Jakub Dobrzyński & Kinga Borek & Dorota Anders & Barbara Dybek & Agnieszka Karwacka & Grzeg, 2021. "Investment Model of Agricultural Biogas Plants for Individual Farms in Poland," Energies, MDPI, vol. 14(21), pages 1-30, November.
    10. Briest, Gordon & Lauven, Lars-Peter & Kupfer, Stefan & Lukas, Elmar, 2022. "Leaving well-worn paths: Reversal of the investment-uncertainty relationship and flexible biogas plant operation," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1162-1176.
    11. Li, Xue & Mupondwa, Edmund, 2018. "Commercial feasibility of an integrated closed-loop ethanol-feedlot-biodigester system based on triticale feedstock in Canadian Prairies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 401-413.
    12. Soha, Tamás & Papp, Luca & Csontos, Csaba & Munkácsy, Béla, 2021. "The importance of high crop residue demand on biogas plant site selection, scaling and feedstock allocation – A regional scale concept in a Hungarian study area," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    13. Guoliang Zhang & Suhua Lou & Yaowu Wu & Yang Wu & Xiangfeng Wen, 2020. "A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas," Energies, MDPI, vol. 13(24), pages 1-13, December.
    14. Elena Tamburini & Mattias Gaglio & Giuseppe Castaldelli & Elisa Anna Fano, 2020. "Is Bioenergy Truly Sustainable When Land-Use-Change (LUC) Emissions Are Accounted for? The Case-Study of Biogas from Agricultural Biomass in Emilia-Romagna Region, Italy," Sustainability, MDPI, vol. 12(8), pages 1-20, April.
    15. Gul, Eid & Baldinelli, Giorgio & Bartocci, Pietro & Shamim, Tariq & Domenighini, Piergiovanni & Cotana, Franco & Wang, Jinwen & Fantozzi, Francesco & Bianchi, Francesco, 2023. "Transition toward net zero emissions - Integration and optimization of renewable energy sources: Solar, hydro, and biomass with the local grid station in central Italy," Renewable Energy, Elsevier, vol. 207(C), pages 672-686.
    16. Claudinei De Souza Guimarães & David Rodrigues da Silva Maia & Eduardo Gonçalves Serra, 2018. "Construction of Biodigesters to Optimize the Production of Biogas from Anaerobic Co-Digestion of Food Waste and Sewage," Energies, MDPI, vol. 11(4), pages 1-10, April.
    17. Barbera, Elena & Menegon, Silvia & Banzato, Donatella & D'Alpaos, Chiara & Bertucco, Alberto, 2019. "From biogas to biomethane: A process simulation-based techno-economic comparison of different upgrading technologies in the Italian context," Renewable Energy, Elsevier, vol. 135(C), pages 663-673.
    18. Zheng, Lei & Cheng, Shikun & Han, Yanzhao & Wang, Min & Xiang, Yue & Guo, Jiali & Cai, Di & Mang, Heinz-Peter & Dong, Taili & Li, Zifu & Yan, Zhengxu & Men, Yu, 2020. "Bio-natural gas industry in China: Current status and development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    19. Ekaterina S. Titova, 2019. "Biofuel Application as a Factor of Sustainable Development Ensuring: The Case of Russia," Energies, MDPI, vol. 12(20), pages 1-30, October.
    20. Valerii Havrysh & Antonina Kalinichenko & Grzegorz Mentel & Tadeusz Olejarz, 2020. "Commercial Biogas Plants: Lessons for Ukraine," Energies, MDPI, vol. 13(10), pages 1-24, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:201:y:2020:i:c:s0360544220307581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.