Environmental and Economic Analysis of an Anaerobic Co-Digestion Power Plant Integrated with a Compost Plant

Abstract

Italian power generation through anaerobic digestion (AD) has grown significantly between 2009 and 2016, becoming an important renewable energy resource for the country, also thanks to the generous incentives for produced electricity available in the last years. This work focuses on the economic and environmental issues of AD technology and proposes a techno-economic analysis of investment profitability without government support. In particular, the analysis focuses on an AD power plant fed by zootechnical wastewater and agro-industrial residues coupled to a cogeneration (CHP) system and a digestate-composting plant that produces soil fertilizers. We aim to determine the economic profitability of such AD power plants fed by inner-farm biomass wastes, exploiting digestate as fertilizer, using the cogenerated heat and taking into account the externalities (environmental benefits). Environmental analysis was carried out via a life cycle analysis (LCA), and encompassing the production of biogas, heat/electricity and compost in the downstream process. The un-released environmental emissions were converted into economic benefits by means of a stepwise approach. The results indicate that integrating a compost plant with a biogas plant can significantly increase the carbon credits of the process. The results were evaluated by means of a sensitivity analysis, and they report an IRR in the range of 6%–9% according to the Italian legislative support mechanisms, and possibilities to increase revenues with the use of digestate as fertilizer. The results significantly improve when externalities are included.