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Can slurry biogas systems be cost effective without subsidy in Mexico?

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  • Gutierrez, Enrique Chan
  • Xia, Ao
  • Murphy, Jerry D.

Abstract

Biogas from pig slurry in Mexico has potential to produce 21 PJ per year, equivalent to 3.5% of natural gas consumption in 2013. In this paper, three different scenarios are analysed: mono-digestion of pig slurry in a finisher farm (scenario 1); co-digestion of pig slurry and elephant grass in a finisher farm in situ (scenario 2) and co-digestion of pig slurry and elephant grass in centralised biogas plants (scenario 3). The digesters proposed are anaerobic high density polyurethane (HDPE) covered lagoons. HDPE centralised plants can have capital costs 5 times cheaper than European biogas plants. The economics of utilisation of biogas for electricity generation and as biomethane (a natural gas substitute) were investigated. Economic evaluations for on-site slurry digestion (Scenario 1) and on-site co-digestion of elephant grass and pig slurry (Scenario 2) showed potential for profitability with tariffs less than $US 0.12/kWhe. For centralised systems (Scenario 3) tariffs of $US 0.161/kWhe to $US 0.195/kWhe are required. Slurry transportation, energy use and harvest and ensiling account for 65% of the operational costs in centralised plants (Scenario 3). Biomethane production could compete with natural gas if a subsidy of 4.5 c/L diesel (1 m3 of biomethane) equivalent was available.

Suggested Citation

  • Gutierrez, Enrique Chan & Xia, Ao & Murphy, Jerry D., 2016. "Can slurry biogas systems be cost effective without subsidy in Mexico?," Renewable Energy, Elsevier, vol. 95(C), pages 22-30.
    • Handle: RePEc:eee:renene:v:95:y:2016:i:c:p:22-30
    DOI: 10.1016/j.renene.2016.03.096
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    References listed on IDEAS

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    1. Browne, James & Nizami, Abdul-Sattar & Thamsiriroj, T & Murphy, Jerry D., 2011. "Assessing the cost of biofuel production with increasing penetration of the transport fuel market: A case study of gaseous biomethane in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4537-4547.
    2. Curry, Nathan & Pillay, Pragasen, 2012. "Biogas prediction and design of a food waste to energy system for the urban environment," Renewable Energy, Elsevier, vol. 41(C), pages 200-209.
    3. Ahern, Eoin P. & Deane, Paul & Persson, Tobias & Ó Gallachóir, Brian & Murphy, Jerry D., 2015. "A perspective on the potential role of renewable gas in a smart energy island system," Renewable Energy, Elsevier, vol. 78(C), pages 648-656.
    4. Thamsiriroj, T. & Smyth, H. & Murphy, J.D., 2011. "A roadmap for the introduction of gaseous transport fuel: A case study for renewable natural gas in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4642-4651.
    5. Raven, R.P.J.M. & Gregersen, K.H., 2007. "Biogas plants in Denmark: successes and setbacks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 11(1), pages 116-132, January.
    6. Thamsiriroj, T. & Nizami, A.S. & Murphy, J.D., 2012. "Why does mono-digestion of grass silage fail in long term operation?," Applied Energy, Elsevier, vol. 95(C), pages 64-76.
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    1. Díaz-Trujillo, Luis Alberto & Nápoles-Rivera, Fabricio, 2019. "Optimization of biogas supply chain in Mexico considering economic and environmental aspects," Renewable Energy, Elsevier, vol. 139(C), pages 1227-1240.
    2. Herbes, Carsten & Halbherr, Verena & Braun, Lorenz, 2018. "Factors influencing prices for heat from biogas plants," Applied Energy, Elsevier, vol. 221(C), pages 308-318.
    3. Yaqoot, Mohammed & Diwan, Parag & Kandpal, Tara C., 2017. "Financial attractiveness of decentralized renewable energy systems – A case of the central Himalayan state of Uttarakhand in India," Renewable Energy, Elsevier, vol. 101(C), pages 973-991.
    4. Abbas, Tahir & Ali, Ghaffar & Adil, Sultan Ali & Bashir, Muhammad Khalid & Kamran, Muhammad Asif, 2017. "Economic analysis of biogas adoption technology by rural farmers: The case of Faisalabad district in Pakistan," Renewable Energy, Elsevier, vol. 107(C), pages 431-439.
    5. Vo, Truc T.Q. & Wall, David M. & Ring, Denis & Rajendran, Karthik & Murphy, Jerry D., 2018. "Techno-economic analysis of biogas upgrading via amine scrubber, carbon capture and ex-situ methanation," Applied Energy, Elsevier, vol. 212(C), pages 1191-1202.

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