The Economic Efficiencies of Investment in Biogas Plants—A Case Study of a Biogas Plant Using Waste from a Dairy Farm in Poland

Dariusz Kusz (), Bożena Kusz, Ludwik Wicki, Tomasz Nowakowski, Ryszard Kata, Władysław Brejta, Anna Kasprzyk and Marek Barć
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Dariusz Kusz: The Faculty of Management, Rzeszow University of Technology, Al. Powstańców Warszawy 12, 35-959 Rzeszow, Poland
Bożena Kusz: The Faculty of Management, Rzeszow University of Technology, Al. Powstańców Warszawy 12, 35-959 Rzeszow, Poland
Ludwik Wicki: Institute of Economics and Finance, Warsaw University of Life Sciences—SGGW, 166 Nowoursynowska Str., 02-787 Warsaw, Poland
Tomasz Nowakowski: The Faculty of Management, Rzeszow University of Technology, Al. Powstańców Warszawy 12, 35-959 Rzeszow, Poland
Ryszard Kata: Institute of Economics and Finance, University of Rzeszow, ul. M. ’Cwiklinskiej 2, 35-601 Rzeszów, Poland
Władysław Brejta: National Research Institute of Animal Production, 1 Krakowska Street, 32-083 Balice near Kraków, Poland
Anna Kasprzyk: Department of Animal Breeding and Agricultural Consulting, University of Life Sciences in Lublin, 13 Akademicka Street, 20-950 Lublin, Poland
Marek Barć: The Faculty of Management, Rzeszow University of Technology, Al. Powstańców Warszawy 12, 35-959 Rzeszow, Poland

Energies, 2024, vol. 17, issue 15, 1-23

Abstract: High investments and low economic efficiency of agricultural biogas plants operating on farms are two of the main barriers to the development of the biogas plant sector. Identification of economic and financial problems related to the operation of such facilities allows for the reduction of entry barriers for private investors, especially farmers. The aim of this research was to analyze the economic efficiency of investing in an agricultural biogas plant operating at a dairy farm. For the analysis, the case study method was applied. The economic efficiency of investment in a biogas plant was assessed using six different cash flow options. The NPV (net present value) and IRR (internal rate of return) methods were applied to assess the economic efficiency of the investment. It was found that the investment project for an agricultural biogas plant with a capacity of 0.499 MW located at a dairy farm required a subsidy of approximately 40–60% of the value of to ensure satisfactory economic efficiency. It has been shown that a particularly important aspect in assessing the economic efficiency of an investment in an agricultural biogas plant is the use of an economic calculation that takes into account the valuation and quantification of all positive external effects of such projects.

Keywords: biogas plant; economic efficiency; investment; dairy farm; case study; energy security (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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