BioBraz

Agriculture is an important pillar of the Brazilian economy. Around 27% of the gross domestic product and 37% of jobs are dependent on this sector. However, this also means that large quantities of agricultural residues are produced, which are either insufficiently used or not used at all. Against this background, the project partner Spirit Design developed a business concept to harness this enormous potential using modern biogas technologies and to produce a 2nd generation biofuel from biomethane. The aim of BioBraz was to test the technical feasibility and long-term economic viability of this business concept. The focus for this was on the Itaipu reservoir in the state of Paraná, an area characterized by intensive agricultural use in a sensitive ecosystem.

Biomethane processing in fuel quality

The business concept envisages the formation of a bioenergy cooperative. Decentralized biogas plants are installed on the individual farms and the biogas produced is upgraded to fuel-grade biomethane in a central biogas upgrading plant. The gas is transported by pipeline. The methane is primarily used by the members of the cooperative. The fermentation residue is then processed into organic fertilizer and is also available to regional agriculture. Surplus production is sold to other agricultural cooperatives or on the open market. The business concept is mainly based on a fair distribution of ownership, risk and income among the participating farmers. This is advantageous from both a legislative and organizational point of view and appears to be the most suitable form of cooperation. The main objectives are the regional supply and consumption of energy and the creation of closed material cycles in agricultural production. In the long term, the use of biomethane should significantly reduce greenhouse gas emissions in the agricultural sector. Particular attention was paid to the transferability of the concept to other regions in Brazil and other countries.

Analysis of the business concept

The feasibility study covered the theoretical implementation and operation of the facilities over a period of 10 years. Depending on the size and type of livestock farming, the farms were divided into three categories (small, medium and large potential). Subsequently, the technical and economic feasibility of three development scenarios was illustrated. These show the optimal development, the disadvantageous development and the most probable development of the framework conditions. In addition, the analysis was supported by intensive stakeholder participation processes within the target region.

This showed that the project design should be optimized in terms of size and technologies used under the given framework conditions.

Adaptation and alternatives of the concept

A redesign or adaptation of the concept should primarily focus on cost savings through economies of scale and consider diversification in the use of biogas, biomethane and co-products. Based on the knowledge gained, an implementation plan was developed with which the economic efficiency can be increased and the concept can be adapted to the local framework conditions at the same time. The proposed design primarily supports a more versatile use of biogas with already established technologies and the gradual development of biomethane production capacities as well as the adaptation of the mobility sector.

The recommendations include a redesign of the logistics of raw materials and gas as well as a standardization and expansion of production units to reduce investment and operating costs. In addition, the possible use of a dry instead of a wet fermentation process should be considered. In order to bridge the development phase of a biomethane market in the transport sector, biogas plants will initially be used conventionally (electricity, heat, fuel and fertilizer). A change in the law makes it possible to trade electrical energy (credits) among cooperative members. Alternative business concepts, such as the use of biogas for heating and cooling purposes (e.g. chicken coops, greenhouses) and the production of process heat, appear promising, but have not yet been assessed.

Great potential for reducing greenhouse gas emissions

From the perspective of environmental and climate protection, the project can reduce greenhouse gas emissions in the transport sector by 1,127 tons of CO2 equivalents per year. At the same time, greenhouse gas emissions in the agricultural sector are reduced through the replacement of mineral fertilizers and controlled waste management. In addition, closed material cycles and the use of biofertilizers reduce the environmental impact of agriculture, e.g. eutrophication and the carbon balance in the soil.

Biogas and biomethane are also a contribution to rural development. The regional production and consumption of bioenergy benefits farmers and other sectors of the economy as well as the inhabitants of the region. Key innovations include new value chains for previously unused organic waste and the associated additional income from energy and fertilizer production. In addition, the introduction of a new economic sector has a positive impact on regional business and diversification opportunities and can result in improved living and environmental conditions. The evaluation shows that the implementation of the pilot project would directly affect around 50,000 people in the target area.

Training and informing the public

Without the cooperation and support of the population, the future implementation of a cooperative biomethane concept is not possible. The active participation of regional interest groups in the planning process was therefore an important pillar of the project. Local information events and additional training sessions were used to disseminate information about the possibilities of biomethane, but also to explain the requirements for implementing such a project. The events attracted great interest. This is also reflected in the fact that a total of 22 farmers expressed their support for continuing the plans by signing a declaration of intent.

Project consortium

The Austrian Energy Agency can draw on extensive experience in the management and coordination of international projects, including the implementation of development cooperation programs. As a national competence center for energy, it was able to contribute extensive experience in the technical and economic analysis of biogas and biomethane projects, including the assessment of greenhouse gas emissions, eutrophication, energy & material flows and primary energy input. As coordinator, she was also responsible for the structured and coordinated project process and quality management.

Spirit Design is involved in the development of biogas projects, such as the development of a multifunctional work and transport vehicle powered by biomethane. Two years ago, the Atmove program was launched, which aims to improve the entire infrastructure for the development of biomethane mobility. To this end, existing technology solutions are being adapted to the needs of emerging countries. Spirit Design was responsible for the design of the business concept and its embedding in the overall strategic concept as well as data collection and communication.

CIBiogás-ER is a non-profit institution with a focus on science, technology and innovation, which is made up of 16 members (e.g. Itaipu Bincional, Eletrobras, UNIDO, FAO). Here, projects related to renewable energies are developed and implemented regionally. The general aim is to support the development of suitable political frameworks for the use of biogas in Latin America and the Caribbean. Other important fields of activity are the development of knowledge, technical know-how and technology transfer. CIBiogás has already successfully established several innovative biogas plants in the target area of BioBraz and was therefore responsible for the involvement of stakeholders and coordination of the project design.

Client	Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Management
Project management	Martin Höher, MSc
Project team	Lorenz Strimitzer (AEA) Florian Kabas (Spirit Design) Renate Kepplinger (Spirit Design) Marcelo Alves de Sousa (CIBiogás) Samuel Campos da Silva (CIBiogás-ER) Joao Carlos Christmann Zank (CIBiogás)
Projectpartner	Spirit Design CIBiogás