BioGasPlants Consulting
Consulting and Planning

Project Financing

When financing the project, BGA Consulting’s financial department contacts all interdepartmental coordinators and creates all necessary documents to meet the five success factors of biogas plant financing.

1. Determining the Entire Amount to Be Invested

Here, all necessary core elements of a biogas plant (fermenter, feeder, desulphurization, power grid connection, final disposal, etc.) are listed, evaluated, and incorporated into the financing plan. 

2. Deriving Financing Requirements Correctly

In this phase, the project specific total financing requirements are determined. BGA Consulting has developed a tool that allows our financial department to split up, modify, and create new financial positions quickly and accurately. When financing, we distinguish among:

- direct investment requirements and “ancillary” financing requirements (official licensing processes, expert assessments, project development, etc.)

- direct financing requirements (interest, repayment, unscheduled repayment, etc.) and “ancillary” financing costs (bank fees, notary and registration expenses, etc.)

- direct resource requirements (substrate requirements) and indirect resource requirements (substrate reserve, startup losses, etc.) 

3. Choosing the “Right” Biogas Plant for the Project

Choosing a plant is based on several factors. The most basic factor for financing with a bank or financial institution is the type of plant and the manufacturer. There are two types of plants: an established, turnkey facility and a “do-it-yourself” or engineered facility.

In financing decisions, it is important to determine what reference plants a plant manufacturer possesses. An internal bank rating system categorizes and evaluates individual plant manufacturers.

4. Conducting Project-Specific Feasibility and Profitability Assessments

The complexity of a feasibility assessment should not be underestimated. BGA Consulting always pursues the principle to conduct such a study on the project’s site location. Our coworkers constantly strive to develop personal contacts with investors and local communities. This guarantees a site-specific feasibility assessment that is tailored to the investor. Each biogas plant project is unique, and this must be taken into consideration. 

5. Determining Cost Effectiveness Completely and with Level-Headed Realism

Each profitability analysis compares costs and earnings. But how should one determine and calculate a new project’s costs? Here, BGA Consulting offers years of experience and can refer to practice-oriented operating costs. Because reality often differs greatly from what was presented on paper. By comparing various biogas plants at different locations, BGA Consulting has been able to gain detailed insights regarding accruing costs and expenses in the planning and operation of a biogas plant.