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Biogas Digest 
Volume IIIBiogas - Costs and Benefits
and
Biogas – Programme Implementation
Information and Advisory Serviceon Appropriate Technology
 
1
Imprint
This information service on biogas technology has been developed and produced on theorder of the GTZ project Information and Advisory Service on Appropriate Technology (ISAT)for the ISAT Website in a collaborative effort of the following institutions and individuals:
Concept and contents:
Werner Kossmann, Uta Pönitz
 Information and Advisory Service on Appropriate Technology (ISAT)
GATE in Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), GmbH (German Agency for Technical Cooperation)Post Box 5180 D-65726 EschbornFederal Republic of GermanyTelephone: +49 6196/79-0Fax: +49 6196/797352 E-mail: gate-isat@gtz.de
Stefan Habermehl
 Household Energy Appropriate Technologies (HEAT) GmbH 
 Limburger Straße 29 D-61479 GlashüttenFederal Republic of GermanyTelephone: +49 6174 964077 Fax: +49 6174 61209 E-mail: heatinternational@t-online.de
Thomas Hoerz, Pedro Krämer, B. Klingler, C. Kellner, Thomas Wittur, F. v. Klopotek, A.Krieg, H. Euler
 Naturgerechte Technologien, Bau- und Wirtschaftsberatung (TBW) GmbH 
 Baumweg 1060316 Frankfurt Tel.: 069 943507-0Fax: 069 943507-11 E-mail: tbw@pop-frankfurt.com
Design:
Utz Dornberger 
Stöckelstr. 2004347 LeipzigTel.: 0341 2334980 E-mail: utz@imb-jena.de
 
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Table of Contents
Biogas - Costs and Benefits...............................................................................................................4
Economy and Financing.................................................................................................................................4Social policies.................................................................................................................................................5Benefits for the environment..........................................................................................................................5
The Benefits for Biogas Users...........................................................................................................6
Monetarizing individual benefits....................................................................................................................6Energy.............................................................................................................................................................7Bio-fertilizer...................................................................................................................................................7Saved disposal cost as benefit.........................................................................................................................8Time consumption..........................................................................................................................................8
Costs of a Biogas Plant....................................................................................................................10
Categories of costs........................................................................................................................................10Average costs................................................................................................................................................11
Macro-economic evaluation............................................................................................................13
Objective.......................................................................................................................................................13Economic effects of biogas plants................................................................................................................13
Economic Viability (Financial Analysis).......................................................................................18
Objectives, methodology and decision criteria.............................................................................................18Procedure of dynamic approach...................................................................................................................18Investment criteria........................................................................................................................................18Input data......................................................................................................................................................21Parameters and assumptions.........................................................................................................................22Final remarks................................................................................................................................................22
Cost benefit relation (investment calculation, sensitivity analysis).............................................23
Methods........................................................................................................................................................23Difficulties....................................................................................................................................................23Observation of the development...................................................................................................................24Further reading:............................................................................................................................................24
The Annuities Method.....................................................................................................................25Benefits and Impacts of Biogas Technology..................................................................................28
Improvement of sanitary and health conditions............................................................................................28Culture and education...................................................................................................................................29Distribution of income..................................................................................................................................29Effects on regional employment...................................................................................................................29Reducing deforestation as benefit.................................................................................................................30
Global Environmental Benefits of Biogas Technology.................................................................31
The impact on the greenhouse effect............................................................................................................31Sources of methane emissions in the agricultural field.................................................................................32Methane reduction potential through the application of biogas technology.................................................33Reduction potential of nitrous oxide emissions from agriculture.................................................................33
Financing and public support.........................................................................................................34
Sources for financing....................................................................................................................................34Running, maintenance and repair costs........................................................................................................34Financing by credit.......................................................................................................................................34State support.................................................................................................................................................34Families with low incomes...........................................................................................................................35
Biogas - Program Implementation.................................................................................................36
Dissemination of biogas technology.............................................................................................................36Implementation planning..............................................................................................................................36Factors for a successful dissemination..........................................................................................................37
Biogas Programme Structure.........................................................................................................39
Biogas research and development programs.................................................................................................39Biogas pilot programs...................................................................................................................................39
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