Biogas upgrading: Reduce risk to attract investment

Investing in renewable energy

Keywords: investment, renewable energy, biogas upgrading, biomethane, green gas

How good of an investment is Renewable energy? The market for renewable energy is young when compared to the established fossil fuel market. Conventional wisdom therefor may convince to invest in fossil fuels, but this wisdom is obsolete.

A sustainable investment

A low carbon, sustainable investment often capable of achieving ROI in less than seven years, the biogas market is a highly attractive prospect to funders. Once operational, sites can generate revenue instantly and, thanks to fixed government subsidies, will guarantee income for many years to come. Facilities require minimal maintenance, only a select few staff and can operate relatively self-sufficiently.

However, building a new biogas facility is a hugely complex task. Historically, therefore, the go-to approach has been to employ a selection of specialist sub-contractors, each tasked with handling a specific task, role, or area in parallel. While many hands make light work, it can also often make the build process somewhat disjointed.

Take the six stages after gas leaves the digester, for example (pre-treatment, compression, membrane separation, propane injection, quality control and connection to the gas grid). Despite only taking up a relatively small space footprint on site, responsibility is typically shared between several companies. A small contract issue, inexperienced workers, incorrect paperwork, or delays to just one of these teams can prove detrimental to the efficiency of the entire build. Misjudging remit or poor fitment results in unexpected additional costs and unnecessary project delays.

A delayed completion not only affects the payback period, but (in the worst-case scenario) can be the difference between achieving or falling short of a subsidy deadline. For investors, simple mistakes can therefore cost hundreds of thousands of pounds.

Minimizing the risk of delays is therefore important in securing project financing. Rather than multiple contractors and more risk of possible delays, the market is pushing for a new approach – a solution that provides a single point of contact, while maximising cost efficiencies.

Reacting fast to the changing market

Introduced to minimise risk for funders and lead contractors, DMT’s new ethos – Total Solutions Provider (TSP) – aims to bring a step-change to the industry and provide a simple yet effective solution to guarantee the highest possible project efficiencies. A switch from technology provision to end-to-end service partnership, TSP supports the customer from the moment biogas leaves the digester to when it’s injected directly into the grid.

While most suppliers will only provide the upgrading unit, TSP also covers the specification and installation of pre-treatment technology, grid entry unit, interconnecting pipework, electrics and export to grid connection. What’s more, TSP takes responsibility for all gas network connection documentation – a vital area if projects are to achieve their deadlines, not only for installation of equipment but making sure all the required documentation is correctly submitted and signed off.

By taking responsibility for a variety of site build elements typically shared between numerous contractors, EPC/funders can expect a single, integrated, uniform project completed by a highly experienced and capable team. Trusting this to the world’s largest membrane biogas upgrader guarantees a right-first time approach and minimises risk throughout the build.