Revenue and expenditure structure
The cost of 1 kW of electric power from a non-waste biogas plant usually ranges from 2000 to 5000 euros, depending on the size of the station (the smaller the plant, the more expensive the power) and the type of raw material. At high power installations (10 MW or greater) that process the most profitable types of waste (such as sugar pulp or high-fat food industry waste), the cost can fall below 2000 euros per kW. Small facilities (less than 1 MW), as well as stations using less profitable types of waste (such as manure) can cost more than 6000 or 7000 euros per kW. Power stations of less than 1 or 1.5 MW in Russian conditions are therefore economically inefficient because of high capital expenditures.
Operating costs and the cost of production
Running costs are minimal (less than 2% of capital costs), and are mainly comprised of biogas plant employee wages, as well as the cost of parts and servicing. Energy and water supply are themselves provided during production. By reducing waste disposal costs, the price of energy, biomethane and fertilizers can be much lower than market prices.
Sources of income
Revenues for each project come from the sale of biomethane and motor fuel, heating and electricity to the waste-producing company, the sale of complex fertilizers, and recycling services. For these companies the following model can solve the problem of waste and reduce energy costs without capital investment. There is a different relationship between the sources of revenue for different types of businesses.
A LANDCO non-waste biogas plant provides the owner with multiple sources of revenue. As a result, the plant does not require payment for purchasing electricity or other forms of subsidy. Comparing non-waste biogas plants with conventional energy sources by cost per kilowatt of installed capacity is meaningless, because non-waste processing centres are able to pay their way solely from environmental component – other sources of revenue are simply a bonus.