Innovation and Investment in Energy Generation Facilities Based on Biogas in Agricultural Farms – A Feasibility Case Study
Teresa Nogueira 
1, José Magano 1 and R. F. Mesquita Brandão 1
1 Engineering School, Polytechnic Institute of Porto, Portugal
2 ISCET – High Institute of Business and Tourism Sciences, Porto, Portugal
To cite this text:
Nogueira, T., Magano, J. & Brandão, R. F. M. (2012), Innovation and Investment in Energy Generation Facilities Based on Biogas in Agricultural Farms – A Feasibility Case Study, Percursos & Ideias, Vol. 3&4, pp. 88-99.
Abstract
Biogas has become an attractive alternative source of energy as the renewable fuel serves several policy priorities, ranging from increased domestic energy production to the reduction of greenhouse gases and more efficient waste treatment. It can be produced from many kinds of organic materials but it is closely linked to agricultural activities, integrated into farming processing structures. The primary source is manure from animal production, mainly from cattle and pig farms. Anaerobic digestion is a natural process that converts animal waste to biogas. The anaerobic facility must be designed to meet the individual characteristics of each dairy farm operation. Biogas is produced when bacteria convert organic matter to methane gas. A digestor/generator produces two important outputs: it is capable of generating electricity and heat. Electricity can be used for self-consumption and the surplus can be delivered in the distribution grid. The generated heat should be used close to the generator and attains economic value dependent upon how it is used: to heat water or to refeed anaerobic digestion process. Before a biogas plant is built, a techno-economic assessment should be made. This study analyses the profitability of a biogas unit from the user point of view. The costs and revenues were determined for this particular project considering the known parameters of the technical system.
Keywords
Biogas, Feasibility analysis, Electric energy.arty logistics, Supply chain.