Partnering and Financing Opportunities for Biogas Projects ... · Partnering and Financing...
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Partnering and Financing Opportunities for Biogas Projects in
Developing and Emerging Countries
Clemens Findeisen Consultant for Development Cooperation
German Biogas Association
Berlin, October 14th, 2013
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
Collaboration: Private sector and development cooperation
Private Sectorobjectives
Development Cooperation
objectives
official development assistance(ODA)
foreign direct investment
700 BillionUSD
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)
Contractor Execution
Kfw group: A bank with a wide array of functions
10
The International Activities of KfWDegree 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 EUR
Source of funds
Budget and market funds Market funds Market funds
Entwicklungsbank
GIZ Services for Energy
ongoing
Project portfolio:140 activities in 40 countriesVolume of orders: 490 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…
Cambodia: Project implementation by SNV
o BMZ-Funding of 2.2 Mio. € to extend existing NationalBiogas Programe for household digestors (4-15 m3 digestor volume) to four more provinces
o Activities:
o Construction of Biogas plant
o Payment of subsidy (150 US$/plant)
o Organizing of finance
o Training of masons and maintenance staff and operators
o Information on slurry management
o CDM-Certificate generation
o 2 year warantee; Quality controll on quality controll
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 production in the framework of technical cooperation“
Vertical Support to Biogas-DEMO Projects
Component 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-projects
Component B: Capacity building, dissemination and replication for large scale biogas plants
Component C: Sector policy frameworkComponent D: Technical support to central and provincial PM for ADB Project implementation
Cooperation with the private sector !
� 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 Sectorobjectives
Development Cooperation
objectives
Development Partnerships
Development Partnerships: Common Goals
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,internationalcompanies 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 shareGIZ ≤ 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
develoPPP.de
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 solvencycheck
•
Assessment ofproposals according
to criteria
Joint elaboration of project concept
•Budget
Concept review
•
Finalisation ofcontract
Implementation
•
Payout according toprogress
•
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 practicaltraining on biogas and biomass, as well as consultancy and labratory services
o Know How Transfer from the German Humboldt University (Institute of Agricultural andUrban 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
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
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Clemens Findeisen
Consultant Development Cooperation
German Biogas Association
Telefon: 0049 (0) 1763 / 17 88 290Email: [email protected]
Internet: www.biogas.org