Products and sales
A biogas plant produces energy and fertiliser.
The marketing and sales of products from a biogas plant can be based on several different business models.
Typically, the biogas is converted in a gas engine that generates electricity and heat, but the gas can also be refined to natural gas quality and fed into the natural gas grid or a local gas grid.
Local energy suppliers
A biogas plant is often a part of the local energy supply. The electricity is fed into the power grid and from there distributed onwards to consumers, while the heat is distributed to local heating consumers through a district heating grid.
The digested residual product can be supplied for use as a fertiliser to those local farmers who supplied manure or easily convertible plant biomass as the raw ingredients for the biogas plant.
A biogas plant can also plays an important role in the local industry. In some instances, local industries accept heat to use as process energy in their production.
Some sectors of the food industry – for example dairies, slaughterhouses and market gardens – even build their own biogas plant, not only to be able to deal with their organic residue, but also in order to be self-sufficient, either wholly or in part, as regards electricity and heating.
These biogas plants also use the digested by-product as fertiliser – sometimes in the form of refined fertiliser products.
Sale to the natural gas grid
Distributing upgraded biogas to the natural gas grid provides biogas plants with another source of income.
A number of businesses would like to strengthen their green profile, which can provide the opportunity to add supplements to the price of biogas.
Some countries have certain certification schemes and CO2 trading systems, which make it possible to sell biogas to the natural gas grid with a green supplement added to the price.
The upgraded biogas can be used as a fuel for cars, buses, lorries and tractors.
All major car manufacturers have models on the market that drive on upgraded biogas, and the number of filling stations offering natural gas/upgraded biogas is growing throughout most of the world.