When does decentralized production of biogas and centralized upgrading and injection into the natural gas grid make sense?

The production of biogas through anaerobic digestion is one of the technological solutions to convert biomass into a readily usable fuel. Biogas can replace natural gas, if the biogas is upgraded to green gas. To contribute to the EU-target to reduce Green House Gases emissions, the installed biogas production capacity and the amount of farm-based biomass, as a feedstock, has to be increased. A model was developed to describe a green gas production chain that consists of several digesters connected by a biogas grid to an upgrading and injection facility. The model calculates costs and energy use for 1 m3 of green gas. The number of digesters in the chain can be varied to find results for different configurations. Results are presented for a chain with decentralized production of biogas, i.e. a configuration with several digesters, and a centralized green gas production chain using a single digester. The model showed that no energy advantage per produced m3 green gas can be created using a biogas grid and decentralized digesters instead of one large-scale digester. Production costs using a centralized digester are lower, in the range of 5 €ct to 13 €ct per m3, than in a configuration of decentralized digesters. The model calculations also showed the financial benefit for an operator of a small-scale digester wishing to produce green gas in the cooperation with nearby other producers. E.g. subsidies and legislation based on environmental arguments could encourage the use of decentralized digesters in a biogas grid.