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
Collaboration: Private sector and development cooperation
Private Sector objectives Development Cooperation objectivesofficial development assistance (ODA)
foreign direct investment
700 Billion
USD
Engagement in Developing and Emerging Countries 2012 worldwide
260 Billion
USD
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)
Kfw group: A bank with a wide array of functions
The International Activities of KfW
Degree of market maturation and target market – portfolio and new
businesses
Degree of market maturation
Very early phase Early phase Mature phase
Target market
Developing country Emerging market Industrialised country
KfW Entwicklungsbank
DEG
KfW IPEX-Bank
Portfolio and new businesses 2012
28,5 bn EUR
·
4,9 bn EUR 6,0 bn EUR · 1,3 bn EUR 61 bn EUR · 13,4 bn EURSource of funds
Budget and market funds Market funds Market funds Entwicklungsban
GIZ Services for Energy
ongoing
Project portfolio:
140 activities in 40 countries
Volume of orders: 490 million €
Yearly turnover: 110 million €
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)
oChina:
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)
Biogas priorities in the development cooperation
Increasing development / economic growth in countries and regions
Decentralized
Houshold-plants
Aim: Electricity generation, cooking / lighting Countries: 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…
Cambodia: Project implementation by SNV
o
BMZ-Funding of 2.2 Mio. € to extend existing National
Biogas Programe for household digestors
(4-15 m
3digestor volume) to four more provinces
o
Activities:
o
Construction of Biogas plant
o
Payment of subsidy (150 US$/plant)
oOrganizing of finance
o
Training of masons and maintenance staff and operators
oInformation on slurry management
o
CDM-Certificate generation
China: Optimization of Efficient Biomass Utilization
o
More and more large projects are implemented in
China, but the efficiency of the plants is very low.
o
In cooperation with the Ministry of Agriculture and
the Asian Development Bank
„Use of bioenergy for heat and power
Vertical Support
to Biogas-DEMO ProjectsComponent A: Support to 3-5 Biogas ‘best practice’
demonstration projects in 2-3 Provinces
SINO-German Biomass Utilization Project:
Optimization of Biomass Utilization
Horizontal Support
to ADB sub-projectsComponent B: Capacity building, dissemination and replication for large scale biogas plants
Component C: Sector policy framework
Component D: Technical support to central and provincial PM for ADB Project implementation
Improvement of local economic conditions
Establishment of sustainable supply chains
Mobilisation of capital and know-how Involvement of local communities in economic cycles
Assurance of supply chains, market entry and expansion in developing and emerging countries
Marketing of products
Finding new customers and ensuring customer loyalty
Corporate Social Responsibility (CSR) Private Sector objectives Development Cooperation objectives Development Partnerships
Areas of cooperation
Development of education and training programmes: Demand / labor market oriented training
with the involvement of prospective employers (
in the field of agriculture: training in sustainable
(ecological) crop cultivation, education in different harvesting methods, modern storage etc
.)
Transfer of technology: Ensuring the sustainability of technological innovations by the
commercial interests of the private partner
Optimisation of value creation / supply chain: Improvements to secure the success of a
market-based value chain by integrating the product-specific know-how of the buyer
Introduction of guidelines and standards: For example, labor standards or environmental
standards
Introduction of internal improvements: For example, through HIV / AIDS workplace
programmes
Integrated Development Partnerships
Africa Facility Fund Fragile States West Africa Ideas competitions Strategic alliances Private partner
All companies (local, regional & international)
African companies, international companies with a branch office in an African country Companies of the respective country, international companies with a branch office in a respective country
German & European companies
German & European companies
Sector Direct contribution to achievement of Technical Cooperation (TC) project objectives
Sectors of the target countries Ghana, Kenya, Cameroon, Tanzania,
Southafrica, Tunisia
Sectors of the target countries
Ivory Coast, Liberia, Sierra Leone, (Guinea)
Supra-regional, often entire sectors, different stakeholders
Term Within project duration max. 3 years max. 3 years max. 3 years max. 3 years Contribution Up to EUR 193,000
Public share
possibly more in co-operation agreements Up to EUR 193,000 Public share GIZ ≤ 50% Up to EUR 193,000 public share GIZ ≤ 50% Up to EUR 200,000 Public share GIZ ≤ 50%
At least EUR 750,000 Total volume GIZ ≤ 50%
Acquisition Active acquisition Active acquisition Active acquisition Through ideas competition, GIZ advisory services
Active acquisition
Public share funded by
TC-project Africa Facility Fund Fragile States West Africa
Sequence of a Development Partnership
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Submission of proposals*
•
Closing date on the last day of each
quarter (ideas competitions) Business solvency check • Assessment of proposals according to criteria Joint elaboration of project concept • Budget Concept review • Finalisation of contract Implementation • Payout according to progress • Progress reports End of project • Final report • Final payment
* In Strategic alliances an approval by the BMZ is required. In addition to the general criteria, there are also quantitative and qualitative criteria to be fulfilled. Typically, a cooperation agreement is chosen.
Criteria for develoPPP.de projects
Compliance:
Every development partnership has to comply with the development-policy
principles of the German Government.
Complementarity:
Public and private contributions must be mutually complementary, i.e.
cooperation must enable both partners to achieve their objectives more cost-efficiently,
effectively and swiftly.
Subsidiarity:
Public support for the partnership measure is only given if the private partner
would not otherwise implement the project and if the project is not a legal necessity.
Competitive neutrality:
The measure must not distort competition.
Private sector's own contribution:
The company has to make a substantial contribution to
the measure, at least 50 percent of overall costs (public contribution fixed at 200.000 Euros)
Commercial interest of the company implementing the project must be clearly recognizable
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
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 adopt technology.
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 technology
in the Chinese biogas sector has increased.
o The output efficiency of biogas purification processes
has been increased
