Biogas projects turning waste into energy for agribusinesses

The biogas sector is presenting huge potential for the meat and food processing industries to access energy at reduced costs.

Biogas-fuelled power stations supported by engineered anaerobic digestion systems are a major source of energy in Europe and North America. To date, biogas has played a minor role in energy production for food processors in Australia and New Zealand. But this is changing.

The Clean Energy Finance Corporation (CEFC) is helping catalyse up to $40 million in new biogas energy infrastructure by providing finance to Australian biogas specialist Quantum Power Limited. These biogas projects will enable food processors and other agribusinesses to turn on-site waste streams into a valuable energy resource.

Quantum’s build-own-operate model makes biogas plants accessible without the need for upfront capital from the processor. As Quantum Power CEO Richard Brimblecombe explains, “We build plants that convert the business’s organic waste to a bioenergy supply that is used to power its operations and the company agrees to purchase the generated power at a discount to grid-supplied electricity for a specified time. This immediately reduces the business’s power bills and reduces costs associated with organic waste disposal. Our build-own-operate model effectively provides a 100% off-balance sheet financing solution for our clients.”

Generating on-site energy using renewable sources also delivers additional economic benefits by reducing network upgrades to satisfy electricity demand. It also provides significant opportunities for waste management. But perhaps the most impressive biogas prediction is that in the agriculture and meat processing industries alone, it is claimed that greenhouse gas emissions could decrease by two million tonnes a year for a capital investment of around $300 million.

“In many respects, biogas is a superior energy form to wind and solar, in that it’s not reliant on weather conditions for performance,” says Brimblecombe. “With biogas, you have the ability to produce a consistent power output, 24 hours a day, seven days a week. There’s a real opportunity to develop the biogas market in Australia, particularly given we do have substantial livestock and food processing industries.”