How to Starting a Bio Gas Project Business

Biogas is produced when microorganisms digest organic matter (biomass) in the absence of oxygen.

Biogas is a useful source of renewable energy that is generally piped, stored and combusted to produce heat (for steam) or electricity. For large installations, it can be cleaned (scrubbed) and then used as fuel for transport or heating. Digested waste from the biogas production process has a high nutrient content. It can be used as fertilizer - as long as it is free of pathogens or toxins - or it can be composted.
In Australia, numerous landfills and waste water treatment plants are equipped for biogas capture and the process is slowly making its way into the meat and livestock industry.
As a renewable energy resource, biogas is gaining more attention under Australia's new carbon economy. To help reduce greenhouse gas emissions, the Australian Government is offering a number of financial incentives to support new biogas projects.
If you're interested in starting a biogas project in Queensland, this guide provides an overview of the most common ways to collect and use biogas. It also explains regulatory requirements and approval processes, and outlines a range of funding opportunities.

Biogas production

How is biogas produced?

Biogas is produced when bacteria digest organic matter (biomass) in the absence of oxygen. This process is called anaerobic digestion. It occurs naturally anywhere from the within the digestive system to the depth of effluent ponds and can be reproduced artificially in engineered containers called digesters.
There are 2 main types of anaerobic digesters:

covered effluent ponds for liquid waste, where biogas accumulates under an impermeable cover and is piped for processing
engineered digesters for semi-liquid wastes, like fermentation tanks, where the waste is mixed and the digestion process can be controlled by heating or cooling, or by adding bacterial mix to enhance the degradation process.

During digestion, 30-60% of the digestible solids are converted into biogas.
Feedstock for the industrial production of biogas includes:

livestock effluents and meat processing waste
the organic components of landfills
any other source of biomass (e.g. wastewater treatment sludge or food and beverage industry wastes).

What does biogas contain?

On average, biogas contains:

55-80% methane (CH₄)
20-40% carbon dioxide (CO₂).
trace gases, including toxic hydrogen sulphide and nitrous oxide.

Methane gas is particularly import as its high energy content can be used to produce energy. Methane has 21 times the power of carbon dioxide to contribute to climate change. Rather than letting methane from natural putrefaction escape into the atmosphere, it makes sense to capture it and burn it. Combustion transforms methane into heat and carbon dioxide. In doing so, you can harvest the energy content of the gas and reduce the impact on climate change.

Reasons for investing in a biogas project

The key drivers for existing biogas plants in Queensland have been:

reducing odours from abattoirs or rendering plants
generating electricity for landfill sites, rendering plants and waste water treatment plants.

But investing in anaerobic digesters can also be justified to produce fertiliser, to increase water efficiency or to derive revenues from renewable electricity production.

Carbon pricing mechanism (CPM)

The rising costs of energy and potential liability under the carbon pricing mechanism (CPM) act as renewed incentives for some industries to consider processing their waste through anaerobic digestion.
While animal husbandry is not liable for its greenhouse gas emissions, associated industries, including abattoirs, rendering plants, food manufacturers and landfills, will fall under the obligations of the CPM. If they exceed the emission threshold, they will have to pay for emissions or look for ways to reduce and offset them.

Selling excess energy

The heat, steam or electricity produced from processing waste can be used on site to operate a business, which can offset part or all the cost of buying energy from the electricity network. Any surplus energy can be commercialised as green energy and sold back to the grid.
Facilities that want to generate part of their own power requirements and sell electricity surpluses will need to negotiate with electricity distribution network owners. The Queensland Government has guides about connecting to electricity and natural gas distribution networks. You can also visit Ergon Energy's website for more information and enquiries about connecting a biogas business to the electricity distribution network.

Methane capture and carbon offsets

Methane (CH₄) is a greenhouse gas over 20 times more effective in trapping heat in the atmosphere than carbon dioxide (CO₂). As a result, efforts to prevent or use methane emissions can provide significant environmental benefits. Under the Australian Government's Renewable Energy Target and Carbon Farming Initiative, capture and processing of methane can generate carbon offsets with a commercial value on a carbon market.
To assist stakeholders in the meat and livestock industry investigate the potential of a methane capture project on their site, several questionnaires and self-assessment tools have been designed. For example, the Rural Industries Research and Development Corporation's report 'Assessment of methane capture and use from the intensive livestock industry' refers to a self-assessment tool created by Mattocks in 2003.

Approvals and regulations for biogas projects

Getting a biogas project approved

IDAS process

Most development applications for biogas projects in Queensland are assessed through the Integrated Development Assessment System (IDAS).
Under IDAS, the relevant local government authority generally acts as the assessment manager, making referrals to state agencies where required. State agencies will consider the project under state regulatory framework and in reference to national standards and industry guidelines (see 'Legislation and guidelines for biogas projects' below).
If you are planning a biogas project we recommended contacting your local government authority before going through the IDAS process. Your local government authority can help you understand local and state planning requirements.

Petroleum and Gas Inspectorate

We also recommend contacting the Petroleum and Gas Inspectorate (Department of Natural Resources and Mines) at the design stage of any project involving the capture, storage, transport and use of biogas.
The Petroleum and Gas Inspectorate has published an information sheet for designers, installers and operators of biomethane gas installations in Queensland (PDF, 90KB). This information sheet details the safety, health and compliance obligations for biogas operating plants as prescribed in the Petroleum and Gas (Production and Safety) Act 2004.

Legislation and guidelines for biogas projects

The following regulations and guidelines are relevant to biogas projects. These documents explain the regulatory framework stakeholders have to conform to in order to collect and use biogas:

Legislation

Sustainable Planning Act 2009
Environmental Protection Act 1994
Waste Reduction and Recycling Act 2011
Petroleum and Gas (Production and Safety) Act 2004
Work Health and Safety Act 2011
Agricultural Standards Regulation 1977
Environmental Protection Regulation 1998
Australian Standard AS 4454 (2003) for Composts, Soil Conditioners and Mulches references the biosolids guidelines.

Guidelines

The Queensland Water Directorate has a comprehensive information sheet on reuse of biosolids in Queensland for its members.
Funding and support for biogas projects

The following is a list of Australian Government funding programs that support renewable energy projects.

Emerging Renewables Program (ERP)

ERP supports the development and use of renewable energy technologies. Funding for bioenergy projects includes:

research and development
advanced biofuel production pilot projects
bio-based electricity generation.

Carbon Farming Initiative (CFI)

CFI is a carbon offsets scheme that lets farmers, foresters and landholders generate offset credits for sale in domestic and international carbon markets. It helps farmers trial technologies that reduce the emission of agricultural greenhouse gas and/or increase the removal of carbon in soil. This may include, for example, manure management and reduced fertiliser emissions.

Carbon Farming Futures

Below is a list of programs that are part of the Australian Government's Carbon Farming Futures Program.

Action on the Ground

Action on the Ground creates opportunities for land managers to participate in the CFI. It focuses on practical results that can be applied in real farming situations.
Regional land managers and research, industry and farming organisations can access grants for innovative management practices that reduce emissions and store carbon, including demonstrating new ways of increasing soil carbon.

Filling the Research Gap (FtRG)

FtRG provides funding for Australian land managers who want to reduce emissions or store carbon.
The fund will focus on emerging technologies and innovative management practices that lead to improved soil carbon, reduced emissions from livestock and crops, and enhanced sustainable agriculture practices.

Converting Research into Methodologies

This program focuses on the development of practical, low cost estimation and reporting tools for farmers and land managers that store or reduce carbon across various landscapes and production zones.
To register for updates about Converting Research into Methodologies email cfi@climatechange.gov.au.

Extension and Outreach

This program enables land managers to access information and support to integrate emissions reduction and carbon management into land and farm planning. Funding is also available for activities including workshops and field days.

Methodology Development Program (MDP)

MDP will facilitate the development of CFI methodologies. Grants are available for methodology development projects.
Find out more about MDP.

Clean Technology Innovation Program

The Clean Technology Innovation Program supports projects that result in low carbon, low emission, or energy efficient technologies and associated services.

Clean Energy Investment Program

The Clean Energy Investment Program has grants for businesses and industry to invest in energy efficient capital equipment, low emission technologies, processes and products. Funding criteria includes an energy or emissions threshold.

Clean Technology Food and Foundries Investment Program

The Clean Technology Food and Foundries Investment Program helps Australian food and foundry manufacturers to stay competitive in a carbon economy.
Abattoirs and rendering plants are eligible under this program and can apply for grants for investments in energy efficient capital equipment and low emission technologies, processes and products.

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