Environmental and economic efficiency assessment of biogas energy projects in terms of greenhouse gas emissions

Abstract

Biogas projects have significant benefits, in particular, considerable reduction of the negative impact on atmospheric air. In order to highlight the benefits of biogas projects, it is necessary to consider the features of the source of heat or electricity generation and to compare it with the fossil fuel being replaced. Currently, the existing methodological tools do not consider the specifics of the use of various types of fuels, including alternative ones, when conducting an environmental assessment of energy projects. The purpose of this study is to develop methodological approach to the evaluation of biogas energy projects using integrated greenhouse gas (GHG) emission metrics. The indicator for the environmental efficiency assessment of an investment project with partial replacement of power consumption from the grid in terms of GHG emissions was proposed and tested on the regional energy facilities. The developed indicator considerably complements existing approaches to the efficiency assessment of biogas projects and allows to evaluate the performance of biogas projects using a single indicator that significantly simplifies the assessment procedure. It could also be paired with economic indicators such as net profit value, total capital costs in order to build a dependency matrix diagram for environmental and economic assessment of the projects. The proposed methodology could be especially useful for biogas projects implemented in countries and territories with large reserves of fossil fuels, when the profitability and economic efficiency of renewable energy projects are low.

Keywords

Environmental and economic assessment / Biogas projects / Biofuels / GHG emissions

References

[1] Adami L, Schiavon M, Torretta V, Costa L, Rada EC. Evaluation of conventional and alternative anaerobic digestion technologies for applications to small and rural communities. Waste Manage, 2020, 118: 79-89

[2] Ahmad M, Ahmed Z, Khan SA, Alvarado R. Towards environmental sustainability in E−7 countries: assessing the roles of natural resources, economic growth, country risk, and energy transition. Resour Policy, 2023, 82

[3] Alao MA, Popoola OM, Ayodele TR. Sustainable prime movers selection for biogas-based combined heat and power for a community microgrid: a hybrid fuzzy multi criteria decision-making approach with consolidated ranking strategies. Energ Convers Manage X, 2022, 16

[4] Annual Report of PJSC Enel Russia (2021). https://www.el5-energo.ru/upload/iblock/692/s7ftb3u57g4ijqvvsunuhyd9mlhpn8it/Annual_report_2021.pdf. Accessed 1 June 2023 (In Russian)

[5] Balibrea-Iniesta J, Rodríguez-Monroy C, Núñez-Guerrero YM. Economic analysis of the German regulation for electrical generation projects from biogas applying the theory of real options. Energy, 2021, 231

[6] Bedana D, Kamruzzaman M, Rana MJ, Mustafi BAA, Talukder RK. Financial and functionality analysis of a biogas plant in Bangladesh. Heliyon, 2022, 8 9

[7] Bianco I, Panepinto D, Zanetti M. Environmental impacts of electricity from incineration and gasification: How the LCA approach can affect the results. Sustain Basel, 2022, 14: 92

[8] Bleischwitz R, Yang V, Huang B, Xu X, Zhou J, McDowall W, Andrews-Speed P, Liu Z, Yong G. The circular economy in China: achievements, challenges and potential implications for decarbonization. Resour Conserv Recy, 2022, 183

[9] Bogatyr Coal LLP (2023) Quality indicators of coal shipped by the "Bogatyr" open-pit mine of the Ekibastuz deposit for domestic needs. https://www.bogatyr.kz/media/filebrowser/pokazateli/11.pdf Accessed 1 June 2023. (In Russian)

[10] Carbon Price Tracker (2022) Ember. https://ember-climate.org/data/carbon-price-viewer. Accessed 22 May 2023

[11] Cherubini F. GHG balances of bioenergy systems—Overview of key steps in the production chain and methodological concerns. Renew Energ, 2010, 35(7): 1565-1573

[12] Circular economy action plan. European Commission (2020). https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en. Accessed 2 June 2023

[13] Circular Economy Promotion Law of the People's Republic of China (2018). UNEP Law and Environment Assistance Platform. https://leap.unep.org/countries/cn/national-legislation/circular-economy-promotion-law-peoples-republic-china. Accessed 25 May 2023

[14] Decree of the Government of the Russian Federation of August 18, 2022 No. 1441 “On the rate of payment for exceeding the greenhouse gas emission quota as part of the experiment to limit greenhouse gas emissions in the Sakhalin Region”. http://government.ru/docs/all/142679/ Accessed 1 June 2023. (In Russian)

[15] Decree of the Governor of the Sverdlovsk Region dated 04/29/2022 No. 216-UG "On approval of the scheme and program for the development of the electric power industry of the Sverdlovsk region for the period 2023–2027". http://publication.pravo.gov.ru/Document/View/6600202205060001. Accessed 31 May 2023 (In Russian)

[16] Department of the Federal State Statistics Service for the Sverdlovsk and Kurgan regions (2023). Population. https://66.rosstat.gov.ru/folder/29698. Accessed 31 May 2023 (In Russian)

[17] Dewalkar SV, Shastri SS. Life cycle environmental and economic assessment of human night soil based Malaprabha biogas plant. Mater Today Proc, 2022, 60(1): 160-166

[18] Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Text with EEA relevance). https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32009L0028. Accessed 2 June 2023.

[19] Draft National Strategy to Prevent Plastic Pollution (2023). EPA. https://www.epa.gov/circulareconomy/draft-national-strategy-prevent-plastic-pollution. Accessed 2 June 2023

[20] Ellen Macarthur Foundation (2023). https://ellenmacarthurfoundation.org/. Accessed 23 May 2023

[21] Energy Strategy of the Russian Federation for the period up to 2035 (2020). The Ministry of Energy of the Russian Federation. https://minenergo.gov.ru/system/download-pdf/1026/119047. Accessed 25 May 2023. (In Russian)

[22] UN Environment Programme “Building Circularity into Our Economies Through Sustainable Procurement” (2018). https://www.unep.org/ru/node/23755. Accessed 2 June 2023

[23] Fernandes DJ, Ferreira AF, Fernandes EC. Biogas and biomethane production potential via anaerobic digestion of manure: a case study of Portugal. Renew Sustain Energy Rev, 2023, 188

[24] Filimonova IV, Komarova AV, Kuzenkova VM, Provornaya IV, Kozhevin VD. Emissions of CO2 in Europe and the Asia–pacific region: panel data model. Energy Rep, 2022, 8(15): 894-901

[25] Forecast of socio-economic development of the Russian Federation. The Ministry of Economic Development of the Russian Federation. https://www.economy.gov.ru/material/directions/makroec/prognozy_socialno_ekonomicheskogo_razvitiya/prognoz_socialno_ekonomicheskogo_razvitiya_rf_na_2024_god_i_na_planovyy_period_2025_i_2026_godov.html Accessed 30 October 2023. (In Russian)

[26] Freitas FF, Furtado AC, Piñas JAV, Venturini OJ, Barros RM, Lora EES. Holistic Life Cycle Assessment of a biogas-based electricity generation plant in a pig farm considering co-digestion and an additive. Energy, 2022, 261 B

[27] Genovese A, Ponte B, Cannella S, Dominguez R. Empowering the transition towards a circular economy through empirically-driven research: past, present, and future. Int J Prod Econ, 2023, 258

[28] Guarnieri P, Bianchini A, Rossi J, Silva LC, Trojan F, Lizot M, Oliveira Vieira B. Transitioning towards a circular economy under a multicriteria and the new institutional theory perspective: a comparison between Italy and Brazil. J Clean Prod, 2023, 409

[29] IEA (2022). https://www.iea.org/world. Accessed 25 May 2023

[30] Joshi S. Product environmental life cycle assessment using input output techniques. J Ind Ecol, 1999, 3(2–3): 95-120

[31] Karaeva A, Magaril E, Rada EC. Improving the approach to efficiency assessment of investment projects in the energy sector. WIT Trans Ecol Envir, 2020, 246: 113-123

[32] Kiselev A, Magaril E. Financial tools for biogas projects implementation at wastewater treatment plants: a case study of the Russian Federation. WIT Trans Ecol Envir, 2022, 255: 63-77

[33] Kiselev A, Magaril E, Magaril R, Panepinto D, Ravina M, Zanetti MC. Towards circular economy: evaluation of sewage sludge biogas solutions. Resources, 2019, 8: 91

[34] Kiselev A, Magaril E, Panepinto D, Rada EC, Ravina M, Zanetti MC. Sustainable energy management benchmark at wastewater treatment plant. Sustain Basel, 2021, 13: 12885

[35] Komina GP, Sauts AV (2017) Production and use of biogas in solving problems of energy conservation and environmental safe. SPbGASU, Saint-Petersburg (In Russian)

[36] Lansche J, Muller J. Life cycle assessment of energy generation of biogas fed combined heat and power plants: environmental impact of different agricultural substrates. Eng Life Sci, 2012, 12(3): 313-320

[37] Li Z, Qi Z, Jiang Q, Sima N. An economic analysis software for evaluating best management practices to mitigate greenhouse gas emissions from cropland. Agric Syst, 2021, 186

[38] Li C, Zhang L, Qiu F, Fu R. Optimization and enviro-economic assessment of hybrid sustainable energy systems: the case study of a photovoltaic/biogas/diesel/battery system in Xuzhou. China Energy Strateg Rev, 2022, 41

[39] Lijó L, Lorenzo-Toja Y, González-García S, Bacenetti J, Negri M, Moreira MT. Eco-efficiency assessment of farm-scaled biogas plants. Bioresource Technol, 2017, 237: 146-155

[40] Madlener M, Antunes CH, Dias LC. Assessing the performance of biogas plants with multi-criteria and data envelopment analysis. Eur J Oper Res, 2009, 197(3): 1084-1094

[41] Mayor A, Vinardell S, Ganesan K, Bacardí C, Cortina JL, Valderrama C. Life-cycle assessment and techno-economic evaluation of the value chain in nutrient recovery from wastewater treatment plants for agricultural application. Sci Total Environ, 2023, 892

[42] Maysyuk EP, Ivanova IY. Environmental assessment of different fuel types for energy production in the Arctic regions of the Russian Far East. Arctic Ecol Econ, 2020, 1(37): 26-36

[43] Mensah JHR, Silva ATYL, Santos IFS, Ribeiro NS, Gbedjinou MJ, Nago VG, Filho GLT, Barros RM. Assessment of electricity generation from biogas in Benin from energy and economic viability perspectives. Renew Energ, 2021, 163: 613-624

[44] Methane and climate change–Methane Tracker 2021. International Energy Agency. https://www.iea.org/reports/methane-tracker-2021/methane-and-climate-change . Accessed 22 May 2023

[45] Meyer MA, Leckert FS. A systematic review of the conceptual differences of environmental assessment and ecosystem service studies of biofuel and bioenergy production. Biomass Bioenerg, 2018, 114: 8-17

[46] Miranda DS, Kulay L. A prospective study on the environmental feasibility of supplying electricity to the Brazilian Amazon through biogas power generation. Sustainable Energy Technol Assess, 2023, 55

[47] Molar mass of gases. https://dpva.ru/Guide/GuidePhysics/GasesGeneralProperties/MoleGasMass/ Accessed 1 June 2023. (In Russian)

[48] Morosuk T, Tsatsaronis G, Koroneos C. Environmental impact reduction using exergy-based methods. J Clean Prod, 2016, 118: 118-123

[49] Niu S, Dai R, Zhong S, Wang Y, Qiang W, Dang L. Multiple benefit assessment and suitable operation mechanism of medium- and large-scale biogas projects for cooking fuel in rural Gansu China. Sustain Energy Technol Assess, 2021, 46

[50] Pasciucco F, Francini G, Pecorini I, Baccioli A, Lombardi L, Ferrari L. Valorization of biogas from the anaerobic co-treatment of sewage sludge and organic waste: life cycle assessment and life cycle costing of different recovery strategies. J Clean Prod, 2023, 401

[51] Quality indicators of coal shipped by the "Bogatyr" open-pit mine of the Ekibastuz deposit for domestic needs. https://www.bogatyr.kz/media/filebrowser/pokazateli/11.pdf Accessed 1 June 2023. (In Russian)

[52] Rada EC, Costa L, Pradella C, Adami L, Schiavon M, Magaril E, Torretta V. Unconventional small-scale biogas production with reduced local impact. Int J Energ Prod Manage, 2019, 4(3): 198-208

[53] National Recycling Strategy: Part One of a Series on Building a CE for all (2021). EPA. https://www.epa.gov/circulareconomy/national-recycling-strategy. Accessed 4 June 2023

[54] Reftinskaya GRES results of 2022. https://sibgenco.online/upload/iblock/028/0284018057db61fdb494e9f6ddc4ac18.pdf. Accessed 1 June 2023. (In Russian)

[55] Reftinskaya GRES (2023). https://sibgenco.ru/main/company/generation/reftinskaya-gres/. Accessed 1 June 2023. (In Russian)

[56] Ronzhin AA, Milkov LV. Urengoy oil and gas condensate field. Molodoy Ycheniy, 2020, 17(307): 412-413 (In Russian)

[57] Savini F. Futures of the social metabolism: Degrowth, circular economy and the value of waste. Futures, 2023, 150

[58] Sredneuralskaya GRES (2023). https://www.el5-energo.ru/about-us/sredneuralskaya-gres/. Accessed 1 June 2023. (In Russian)

[59] Statistics (2022). The Ministry of Energy of the Russian Federation. https://minenergo.gov.ru/en/activity/statistic. Accessed 25 May 2023. (In Russian)

[60] Sun C, Fu Q, Liao Q, Xia A, Huang Y, Zhu X, Reungsang A, Chang H-X. Life-cycle assessment of biofuel production from microalgae via various bioenergy conversion systems. Energy, 2019, 171: 1033-1045

[61] The main indicators of environmental protection (2021). Statistical bulletin. https://rosstat.gov.ru/storage/mediabank/oxr_bul_2021.pdf. Accessed 25 May 2023. (In Russian)

[62] The Ministry of Economic Development of the Russian Federation: The forecast of the socio and economic development of the Russian Federation for 2023 and for the planning period for 2024 and 2025. https://www.economy.gov.ru/material/file/ea2fd3ce38f2e28d51c312acf2be0917/prognoz_socialno_ekonom_razvitiya_rf_2023-2025.pdf Accessed 1 June 2023. (In Russian)

[63] Unified Digital Platform of the Closed-Loop Economy (2023). https://reo.ru/ezc Accessed 25 May 2023. (In Russian)

[64] Varling AS, Christensen TH, Bisinella V. Life cycle assessment of alternative biogas utilisations, including carbon capture and storage or utilization. Waste Manage, 2013, 157: 168-179

[65] Velasquez-Pinas JA, Ampese LC, Ziero H, Steinmetz R, Belt C, Forster-Carneiro T. Circular bioeconomy of coffee industries: energy and techno-economic approach based on biogas and biomethane production. J Clean Prod, 2023, 418

[66] Wang J, Chai Y, Shao Y, Qian X. Techno-economic assessment of biogas project: a longitudinal case study from Japan. Resour Conserv Recy, 2021, 164

[67] Wang X, Dong X, Wang X-C, Zhang P, Liu R, Klemeš JJ, Zheng J. A life cycle assessment of an enterprise's low-carbon emissions model: The Xinjiang Shihezi pig farm faecal treatment biogas project as a case study. J Environ Manage, 2022, 304

[68] Wu B, Zhang X, Shang D, Bao D, Zhang S, Zheng T. Energetic-environmental-economic assessment of the biogas system with three utilization pathways: combined heat and power, biomethane and fuel cell. Bioresource Technol, 2016, 214: 722-728

[69] Zanjani Z, Soares I, Macedo P. The nexus between CO2 emissions from electricity generation, GDP and energy intensity using a complete maximum entropy approach: the case of Iran. Energy Rep, 2022, 8(3): 319-324

[70] Zhang B, Chen B. Dynamic hybrid life cycle assessment of CO2 emissions of a typical biogas project. Energy Procedia, 2016, 104: 396-401

[71] Zhang X, Li C, Fu C, Zhang S. Environmental impact assessment of chemical process using the green degree method. Ind Eng Chem Res, 2008, 47(4): 1085-1094

Funding

Russian Science Foundation(22-28-01740)