The biogas market is changing, and this is affecting farmers across the country. Many have already invested, or are considering investing in biogas, either in the form of a larger plant in partnership with others for the production of upgraded compressed biogas (CBG), or as an individual on-farm plant for the production of electricity and, in some cases, heat. Regardless of the approach, there are challenges related to profitability, the market and logistics.
As the segments that have historically consumed CBG become increasingly electrified, demand is falling. At the same time, demand for liquid biogas (LBG) is growing.
In Habo, Biofrigas, together with Långhult Biogas, has demonstrated that it is now possible to produce liquid biogas locally, all the way from farm to tank.
Over the next four Tuesdays, we will highlight some of the most common challenges facing the agricultural sector and share our perspective. Join us in this series – from challenge to opportunity.
CHALLENGE:
Many farmers have already invested in biogas, but find that the numbers just don’t add up. Revenue from electricity, heat or CBG isn’t always enough, especially when prices fluctuate and market demand is limited.
At the same time, new investments are seen as risky. Many are asking themselves: How long will it take before the investment actually pays off? And do you dare take the next step when the current business is already under pressure? What is the actual payback period for a CryoSep plant?
BIOFRIGA’S PERSPECTIVE:
What if you could increase the value of the gas you already produce? Liquefying biogas opens up access to a growing market with a higher willingness to pay, particularly in heavy transport and industry. This boosts both revenue and the potential for a more stable cash flow.
With the right conditions and access to investment support, a liquefaction plant can achieve a payback period of less than five years. This means that the move is not just about new technology, but about making an existing investment more profitable.