6 Ways to Get Anaerobic Digestion Finance for Your Biogas Project

There are at least 6 ways to gain Anaerobic Digestion finance, for your biogas plant project, as described below. If you want to learn the basics of how to get AD Plant finance, this is the video to watch and the article to read.

Financing for these projects is of course similar to other renewable energy projects, except for the availability of government support.

How to Finance Anaerobic Digestion Projects

Read this article carefully and inwardly digest the contents, and even if you are new to AD Plant project design and finance you should gain sufficient confidence to contact renewable energy finance companies.

Start talking to them about funding options to finance your renewable energy project as part of your business once you have worked up your business plan for the project.

Watch our video, learn from it, and we think you should be able to talk intelligently to renewable energy asset finance experts. Experts who can offer you green energy finance. That’s surely all most people need to do before tackling this, the next step to making any commercial scale renewable energy project a reality.

If you’ve got together a design concept, a decent business plan, and have a site, and a well thought0out submission overall it’s time!

Time for the financing stage/ time to finance AD and other renewable energy projects:

• Seek out the best renewable energy finance, from the best renewable energy finance companies or bank.
• Grab your own renewable energy asset finance and
• start building!

Seek it out, via these 6 technology options not only from green energy finance companies, but also renewable energy lenders.

Some of these “green” funds offer low interest renewable energy project start-up loans.

This way you will have the best chance to obtain renewable energy funding sources at a low price, while also still providing a level of financial-risk sharing, which the business can find acceptable.

The approaches, described here, are not mutually exclusive; a mixture of different approaches may be adopted.

1 – Private Equity Financing

This involves an investor who is willing to fund all or a portion of the project in return for a share of project ownership.

Private equity financing has the advantages of lower transaction costs. It also usually provides the ability to move ahead faster than with other financing approaches.
However, private equity financing can be more expensive.

2 – Project Finance

Project Finance is a popular method for financing private power projects. This is a type of finance in which lenders look to a project’s projected revenues rather than the assets of the developer to ensure repayment.

This approach allows developers to retain ownership control of the project while obtaining financing. Disadvantages of project finance are high transaction costs and a lender’s high minimum investment threshold.

3 – Municipal Bond Financing

Municipal Bond Financing is applicable for municipally owned landfills and municipal end users.

This involves the local government issuing tax-preferred bonds to finance the AD, biogas, or LFG energy project. This approach is the most cost-effective way to finance a project. That’s because the interest rate is low and the terms can often be structured for long repayment periods.

However, municipalities can face barriers to issuing bonds, and therefore it may be better to look at:

4 – Direct Municipal Funding

Direct Municipal Funding, is possibly the lowest-cost financing available. It uses the operating budget of the city, county, landfill authority or other municipal government to fund the project.

This approach eliminates the need to obtain outside financing or project partners. This effectively avoids delays caused by the extensive project evaluations usually required by lenders or partners.

However, many municipalities may not have a budget that is sufficient to finance a project. Or else, they may have many projects competing for scarce resources.

Delays and complications may also arise if public approval is required.

5 – Lease Financing

Lease Financing provides a means for the project owner or operator to lease all or part of the energy project assets.

This arrangement usually allows the transfer of tax benefits or credits to an entity that can best make use of them.

Lease arrangements can allow for the user to purchase the assets or extend the lease when the term of the lease has been fulfilled.

The benefit of lease financing is that it frees up capital funds of the owner or operator but allowing them control of the project.

The disadvantages include complex accounting and liability issues and loss of tax benefits to the project owner or operator.

Finally, there may be the possibility of grant programs for some renewable energy projects:

6 – Grant Programs

Grant Programs, offered by many federal and state programs may provide funding for LFG, biogas and anaerobic digestion energy projects.

The video below provides a AD Contractor’s 6 Ways to finance An Anaerobic Digestion Plant. It is well worth watching as it includes the additional concept of community funded biogas plants intended to supply electricity to a local community:

Conclusion to – 6 Ways to Finance Renewable Energy Anaerobic Digestion and Biogas Projects

Memorise these 6 ways to finance renewable energy projects ready for your funding meetings. Although the renewable energy financial expert you speak to may use slightly different words, by learning the main funding mechanisms as described here you should be able to understand the meaning of the advice given.

That is an important skill needed in order to give the funding organisation confidence in entrusting you with their money.

Don’t forget that these methods for financing renewable energy can be applied to many municipal and commercial projects. These can be both within, and outside the AD and Biogas industry.

Attribution: Text has been based upon the section on funding sources in the US EPA Landfill Methane Outreach Program, LFG Energy Project Development Handbook, June 2017.

We are not green energy finance experts. Yet, we can be confident of our facts as this has been written based upon the text within the US EPA Landfill Methane Outreach Program (LMOP), LFG Energy Project Development Handbook, June 2017. Not only that, there are no concerns about copyright as this is a copyright-free document, as it is provided for use without restriction, by the US Government. This financial guidance is not only useful to Finance Renewable Energy, the 6 methods can be used for a wide range of similar projects.

Our text, as provided below, is a shortened version of the US LMOP Handbook text. So, do follow the link below to download your own copy of this LMOP Handbook, and read the full text. That way you will make sure of the facts yourself. That will be important, if you intend in using these “6 ways” to help finance renewable energy projects especially AD, and biogas/ biomethane upgrading projects of your own (i.e. finance renewable energy installation).

What we found people are saying on the web about Renewable Energy Finance, follows:

Renewable Energy Finance: Powering the Future

For more information visit https://anaerobic-digestion.com/finance

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