Challenges of Biogas
Biogas is a kind of renewable natural gas, which contains approximately 70% methane (CH4), roughly 30% carbon dioxide, and other gases.
Deciding to market the electricity, renewable natural gas directly, or combined heat and power depends on the location of the end users and the cost of meeting market standards (challenges of biogas include):
1. The capital cost of linking to the electricity grid (cogeneration units, metering etc.) varies from $60,000 to $350,000, depending on the scale of this project;
2. Upgrading the biogas to meet the gas quality requirements of low pressure natural gas gathering pipelines will require capital costs in the range of $4 to $5 Million per MW of output to remove the CO2; finding opportunities to use existing fossil-fuel based upgrading systems for other types of natural gas sources will greatly reduce these costs; This is a big problem facing the market of biogas.
3. Using the heat and power on site or at nearby facilities, be they agricultural or other types of operations, is cost effective; excess power/gas/heat can be sold on the market;
4. New generation cooperatives who seek to collaborate on the infrastructure and/or processing costs of biogas and other types of bioenergy installations (integrated ethanol-feedlot-biodiesel and processing facilities) could enhance the economies of scale.
