Waste-to-Energy Project in Kenya

150 kW

Biogas Pilot

Plant

in Kilifi

Agricultural Waste Treatment: Biogas in Kenya‘s Food IndustryJames Kothanikkel

October, 14th 2013

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agriKomp GmbH – efficient Biogas Plants

• Founded in 1990

• Founding Partners: Robert Bugar, Michael Engelhardt

• agriKomp has a full-service, one-stop approach where it

provides both, the turnkey installation of the biogas

plant/energy system, and adjacent services from initial

planning, engineering up to monitoring.

• With more than 660+ biogas plants in Europe and Asia and

North America and a total installed capacity of more than 500

MW, agriKomp is one of the leading companies in the industry.

• agriKomp has more than 250 employees worldwide and a

strong international network of partners.

Company Information - agriKomp Biogas Plant

agriKomp Europe

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Biogas Plant in Kenya – Historic Milestones

2010:

Initial talks about a

waste water

treatment facility

with the project

sponsors

2011:

The use of solid

waste for energy

production was

evaluated and

tested and agreed.

2012:

Heads of Terms

agreement closed;

in-depth technical

and financial

planning for a

biogas plant under

a BOOT agreement

2012:

Environmental

Impact Assessment

Study was

accepted.

Environmental

licences awarded.

2013:

Financial/Technical

Planning closed;

Equity/Debt

Financing Process

ongoing

2013:

Feasibility Studies finalized.

FiT process ongoing

BOOT negotiations ongoing

2014:

Begin of

Construction

2015:

End of

Construction.

Commercial

operation begins

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Biogas Plant in Kenya – A Custom-Made Plant Layout

The planned biogas plant will be largest biogas plant in Africa so far

• The biogas plant is build on the premises of the largest producer and

exporter of processed food (fruits, beverages, etc.) in Kenya.

• The biogas plant will have an installed capacity of nearly 5 MWel.

• The biogas plant uses waste from the food processing and field waste as a

substrate.

• This specific waste (e.g. pineapple) is not used as a substrate as of now.

agriKomp tested the substrate with very good results in terms of biogas

standard volume and organic dry substance (ODS) figures.

• The biogas plant will have four digesters and 2 post-digesters and will

roughly produce more than 21,000,000 m³ of biogas per year.

Biogas Plant Overview

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Biogas Plant in Kenya – Products

The planned biogas plant will cover the total electricity demand of the food processing

company and will feed-in the rest into the grid under the FIT scheme of 2012

Products

The biogas plant is designed to meet the specific demands of the food-processing company (main customer). Thus, the biogas plant will also

produce steam for the food processing.

Electricity:

• The biogas plant produces electricity which will meet the main customers total demand.

• The rest will be fed into the national grid (Kenya Power) at the FiT scheme of 2012 (currently 10UScents/kWh).

Biogas as Biofuel:

• Because of the food processing the main customer needs a very significant amount of steam which is currently generated by burning

fossil fuels. Here, the biogas plant will provide biogas which will be burned in a dual-fuel burner.

Steam:

• Besides the biogas which will be used as biofuel, the biogas plant will produce steam out of exhaust heat from the CHP generators. In

total, approx. 50% of steam will be provided by the biogas plant.

Fertilizer:

• The biogas plants will produce effluent, both liquid and solid, which is rich in nutrients. This will be sold to the market.

Certified Emission Reductions (CER):

• The project is already registered under the Kyoto Protocol/Clean Development Mechanism and will generate CERs which can be sold in

the market.

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Biogas Plant in Kenya – Discussions with Customers

Food-Processing Company Kenya Power (KPLC)

• A Heads-of-Terms agreement was signed which governs the

currently agreed terms, e.g. price for electricity, land lease,

sourcing of raw materials, etc.

• The discussions with the food-processing company are

constantly ongoing and very positive.

• The Managing Director has expressed his interest in the biogas

technology as he sees the advantages for his company, e.g.

� energy cost savings,

� fertilizer for agricultural use,

� reputational benefits (renewable energy, Clean

Development Mechanism),

� and more reliable and stable energy production.

• The biogas plant in Kenya will have a BOOT agreement

between the parties to guarantee supply of substrate and fixed

energy costs.

• The Feed-in-Tariff process was started by submitting the EOI –

the Expression of Interest.

• The next steps include an evaluation of the site, the

assessment of the Feasibility Study and the Environmental

Impact Assessment Study as well as the obtaining of required

licences, etc.

• Currently, a Power Purchase Agreement (PPA) with Kenya

Power is prepared.

• The negotiations with Kenya Power with respect to the PPA will

commence presumably in November 2013.

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Biogas Plant in Kenya – GIZ/Project Development Programme (PDP) Sub-Saharan

Africa Involvement

GIZ-PDP members acted as an intermediator between the project sponsors and

different stakeholders in Kenya, e.g. food-processing company, local property

owners and played a role in increasing the FiT scheme from 8 USD-cents/kWh to

10 USD-cents/kWh.

GIZ-PDP bore some up-front expenses, e.g. legal expenses (a.o.).

Currently, GIZ-PDP has a strong role in facilitating potential business relation with

local and international partners, e.g. financing, sourcing etc.

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Biogas Plant in Kenya –

Potential in Africa – Why Africa is so exciting for us?

The energy costs in Africa are rising as many energy sources currently used are pegged to the oil/gas (fossil fuel) price.

There is a huge potential of similar agricultural companies with high energy costs in East Africa alone, e.g. flower

production, etc.

→ The planned biogas plant in Kenya is seen as a role model for the biogas technology in Africa.

The governments of many countries have expressed their strong will to support the installation of clean technologies, e.g.

wind, solar, biogas/biomass, geothermal or hydro power and will support their efforts with attractive subsidies and custom-

free imports of technical components.

The market for Biogas in Africa is currently not very well developed, although overall good condition for this technology

prevail. A first mover advantage with support of government backed development institutions will provide advantageous

market.

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Thank you for your attention!

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BACK-UP

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Biogas Plant in Kenya – agriKomp Products

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• Substrates: manure, maize and grass silage

• Installed capacity: 195 kWel

• System Layout: 1x digester, 1x post-digester

Biogas Plant in Kenya – References of agriKomp

References

• Substrates: corn and slure (liquid manure)

• Installed capacity: 1,700 kWel (6 engines)

• System Layout: 2x digester, 2x post-digester, 3x

digestate storage areas

Biogas plant at Triesdorf, Germany Biogas plant at Triesdorf, Germany

Biogas plant “BiWok” at Krebeck/Wollbrandshausen, GermanyBiogas plant “BiWok” at Krebeck/Wollbrandshausen, Germany