Partnering and Financing Opportunities for Biogas Projects in

Developing and Emerging Countries

Clemens Findeisen Consultant for Development Cooperation

German Biogas Association

Overview

o Background: Development Cooperation and Private Sector Development

o Institutions of the German Development Cooperation

o Energy and Biogas overview

o Partnering and Financing Instruments

o Cases from the Biogas sector

official development assistance(ODA)

foreign direct investment

700 BillionUSD

Engagement in Developing and Emerging Countries 2012 worldwide

126 Billion USD

Collaboration: Private sector and development cooperation

Private Sectorobjectives

Development Cooperation

objectives

Institutions of the German Development Cooperation

Technical Cooperation (political and technical

advice, Capacity Development/Training,

Colocation of development workers & experts

via: GIZ, CIM, BGR, PTB, as well as Sequa

(education and training, business membership

organizations)

Financial Cooperation and Promotion of

private Investments via: KfW

Entwicklungsbank and KfW IPEX-Bank as

well as DEG (Dt. Investitions- und

Entwicklungsgesellschaft)

Contractor Execution

Kfw group: A bank with a wide array of functions

Harnessing opportunities in future markets:Overview of DEG's products

› Long-term loans

› Guarantees

› Mezzanine finance

› Equity capital

› Up-Scaling

Financings

› develoPPP.de

› Feasibility studies

› Accompanying measures

› Climate partnerships

Our finance is tailor-made, long-term and reliable. It facilitates

entrepreneurial investments in promising markets.

With our special programmes we additionally support developmentally

relevant measures.

Special programmes

Financings for Biogas Projects

Project structures and financing criteria

Large plants (5-10 MW) for processing industry of agricultural products (Eg meat, fishand milkproduction , ethanol , palm oil, fruit and vegetable processing )

Several smaller systems (500 kW - 1 MW) of the same type (in terms of plant type, substrate, supply and purchase structure) at different locations in a country

Substrate: organic residues and sewage (no energy crops) , tested fermentability, other use for food production(eg as fertilizer or animal feed) is not carried out or remains

Energetic use of biogas (heat / cooling, steam, electricity )

by the substrate supplier or reliable private customers (medium businesses in the area )

Feed-in (PPA)

Substrate supplier is economically responsible (as a shareholder, owner, operator or through long-term supply commitment (take or pay) and has a real interest in the biogas plant

Costs and reliability of logistics and qualified staff!

Generation of CO2 certificates.

GIZ Services for Energy

ongoing

Project portfolio:140 activities in 40 countriesVolume of orders: 500 million €Yearly turnover: 110 million €

biogas components

Some GIZ energy Programms with biogas components

o Brazil: Diffusion of climate friendly Biogas Technologies (BMZ, 2013–2017)

o Turkey: Resource-efficient and Climate-friendly Use of Animal waste (BMU, 2010–2014)

o China: Optimization of Efficient Biomass Utilization (BMZ, 2009–2013)

o India: Emission-neutral Rural Energy Supply Programme (BMZ, 2009–2014)

o Bangladesh: Programme for renewable energies and energy efficiency (BMZ, 2011–2013)

o Vietnam: Support for the establishment of a renewable energy agency (BMU, 2010–2014)

o Indonesia, Thailand, Vietnam, Philipines, Myanmar: PEP Renewable Energy South-East Asia(BMWi, 2012–2015)

o Cambodia: Renewable energies (BMZ, 2010–2012)

o Central America: Promotion of Renewable Energies and Energy Efficiency in Central America (BMZ, 2010–2014)

o Chile: Expansion strategy for grid-connected renewables (with grid study) (BMZ, 2009-2013)

o Serbia: Development of a sustainable Bioenergy market (BMZ, 2013-2017)

Biogas priorities in the development cooperation

Increasing development / economic growth in countries and regions

Decentralized Houshold-plants

Aim: Electricity generation, cooking / lightingCountries: Nepal, India, China, Kenia

Middle-Tech

Aim: Reduction of pollution / CDM and energy production for own use Countries: Brasil, China, Thailand, India

High-Tech (Industrialized)

Aim: Efficient electricity generation and feed-in to the grid Coutries: China, Philippines, Chile, Turkey…

Developpp.de

More than 30 developpp.de projects have been developed or are currently in execution

.

develoPPP.de is initiated by the German Federal Ministry for Economic Cooperation and Development

Applications are open to German and EU companies, which want to invest or engage themselves in Developing or Emerging countries (OECD-DAC list

Execution organisations are GIZ, DEG und sequa.

EU based companies, annual turnover of at least EUR 1 million, ten employees, three years of business operation

Development Partnerships

are usefull from the development policy and economic perspective, positive impact on the development of the partner country

can not be realised without public contribution

are not required by law

are jointly funded (max. 50% public contribution - € 200.000),

the private Partner has a commercial interest

the sustainibility is ensured after the public contribution ends

Support for entering new markets: Development Partnerships

BIOMETEC – Biomethane Generation through Fiber Membrane Technology in China

Evonik and GIZ transfer skills and technology for the improvement of the efficiency of biogas Evonik is an expert in producing polymer membranes to purify biogas to biomethane. Hollow fibre membranes are a new technology for biogas upgrading.

Approach

o Evonik will supply the equipment for demonstration. Biogas plant owners and original equipment manufactures will be trained to enable the Chinese biogas sector to adopttechnology.

o The GIZ Sino German Project of Optimization of Biomass Utilization will provide the access to the Chinese biogas industry. Cooperation with the China University of Petroleum Beijing (CUPB)

Expected impact

o Selected biogas plants demonstrate the benefits from the application of the innovative fiber membrane technology.

o The awareness and acceptance of the technologyin the Chinese biogas sector has increased.

o The output efficiency of biogas purification processes has been increased012/2012 – 11/2015

Establishment of an „International Centre of Excellence of Training in Biogas and Biomass“

The existing pilot biogas plant for fermentation of sisal waste on the premises of KATANI Ltd. in Hale / Tanzania has been realized with a UNIDO project and Bio Energy Berlin GmbH

Approach

o Installation of a trainig center next to biogas plant, offering of theoretical and practical

training on biogas and biomass, as well as consultancy and labratory services

o Know How Transfer from the German Humboldt University (Institute of Agricultural and

Urban Ecological Projects) with local universities

o Sensiblisation of public and private organisations for the use of biogas

Impact

o Diffusion of the biogas technology in Africa,

o Motivation to implement further projects

o Reduction of the lack of energy in Tanzania

o Contribution to poverty reduction

06/2009 – 11/2010

Energypedia is a renewable energy wiki in the context of development cooperationhttps://energypedia.info

New: Financing and Funding Portal

www.biogas.org

Target Support of business partnerships between German and local

companies and the development of lighthouse projects in emerging

and developing countries

Approach Strategic market development: regional, long-term and holistic linkage

of different instruments, focused on local industry dynamics

Target Groups Project developers, manufacturers, distributors, operators, investors

in South-East Asia and Germany

Technologies All renewable energy technologies, particularly biomass, biogas and

photovoltaic

Added Value GIZ professional expertise and networks with policy-makers and

associations, AHK network in the private sector in Germany and

abroad and expertise in business matchmaking

Project Development Programme (PDP): Targets and Approach

Sponsor Federal Ministry for Economic Affairs and Energy within the

‘renewables – Made in Germany’ initiative

Partners Ministries, agencies, regulatory bodies, renewable energy

associations rural electrification

Target Countries Indonesia, Philippines, Thailand, Vietnam

Project Development Programme (PDP): Targets and Approach

Project Development Programme (PDP): Services

Project Development Programme Service Modules

1. Information

Dissemination & Contact

Establishment

2.Support ofShowcase Projects

3.Policy Advisory and Framework

Conditions

Project Development Programme (PDP): Services (Examples)

Information-Workshops in South-East Asia and Germany

Market/Subsector Analysis

Business trips to Germany and South-East Asia

MODULE 1

Information Dissemination & Contact Establishment

Viability-Check of Project Ideas

Support in Finding Funding/ Finance Instruments

Stakeholder-Workshops

Capacity Building/ Training for Project Partners

Marketing of Successful Projects

MODULE 2

Support of Showcase Projects

Dialogue/ Exchange on Support Policies for Renewable Energies

Support of Policy-Business Dialogue

MODULE 3

Policy Advisory andFramework Conditions

Conclusion

Export Business in German biogas sector (60 % estim. 2014)

Huge Potential and high interest for Biogas in Developingand Emerging countries

Demand for Training and Know-How (operators, developers or biogas associations). Safety!

German – European technology and know-how iswelcome

Internationalisation of the German Biogas Association

Partnerning and financial support when entering thosemarkets

Private sector engagement is needed! Partnerships!

BIOGAS Convention & Trade Fair

… we will see us in Bremen!27. – 29. 01 2015

Workshop on International Cooperation!

International Panel on Development & Emerging Countries!

www.biogas.org

Clemens Findeisen

Consultant Development Cooperation

German Biogas Association

Telefon: 0049 (0) 1763 / 17 88 290Email: clemens.findeisen@biogas.org

Internet: www.biogas.org