Feasibility of Biogas Utilization in Developing Countries: Egypt a Case Study

One of the main concerns of implementing Anaerobic Digesters (AD) that result in releasing biogas is the disposal of large quantities of organic wastes in an economically and sustainable manners. This paper evaluates the economic sustainability of implementing anaerobic digesters and capturing the released biogas for energy utilization in contained communities in rural areas in Egypt. The experimental data conducted from anaerobic digester on a pilot scale were scaled up and used to perform the economic viability of the proposed project. The reactor was fed by liquid cow manure with Chemical Oxygen Demand (COD) varies between 7500-8000 mg/l at 35°C for 6 days retention time. It was found that, the reactor is capable of producing 0.53 Nm³ of biogas per m³ reactor per day. The economic viability of a project extends beyond the initial financial analysis. It entails analyzing the data using shadow prices as to elimination price distortions, analyzing the indirect costs and benefits of the project, and looking at the overall effect of the project on the economy. The economic indicators are based on the Net Economic Present Value (NEPV) and Economic Rate of Return (ERR) that is resulted from optimal energy production and dig estate application. Through economic evaluation, the Egyptian government can determine which projects will be of benefit to the economy and which will be costly, decisions on which governments formulate their policies. The study concludes that the project will help contribute to the sustainable development of Egypt through its contribution to the environmental, economic, and social pillars. The highest NEPV and ERR were observed by earning carbon credits from reducing greenhouse gas emissions under Kyoto Protocol as a Clean Development Mechanism (CDM) project or Clean Development Mechanism of Program of Activities (CPA). The revenue from the CDM/CPA can overcome any financial barriers, encourage decision makers, and provide foreign exchange for the country. Moreover, the project has a positive value added and creates new jobs. Thus, it would be in the best interests of the economy as a whole for projects like this are implemented on a greater scale.