Business Case ('typical')

Business Case is presented for projects with an existing hydrogen and methanol infrastructure  in Europe.

All RED II proposals result in ambitious targets for Advanced Biofuels while the UK Government has indicated that Brexit could even mean an acceleration of biofuel mandates resulting in price support.


Assumptions and financial projections


  • Feedstock mix with 40% biomass
  • Input of 120 kT waste/biomass
  • Waste tipping fee € 30 per ton 
  • Output of 40% bio-methanol/60% commodity
  • Price € 500 for bio-methanol and € 300 for commodity methanol
  • CAPEX € 700 per ton capacity (low due to existing infrastructure)
  • Hydrogen cost based on natural gas prices in Europe (relatively high) which will be lower outside of Europe

 

  • Turnover              M€ 51 per year
  • Cost                        M€ 28 per year 
  • Main cost             Hydrogen (NW Europe)
  • EBITDA                M€ 23
  • IRR                         25%  (35% equity)
  • Dividend              M€ 8 - 10

 

The price for bio-methanol depends on biofuel prices. Bio-methanol can replace food-based ethanol for blending in petrol. The dependancy on the volatile methanol market is therefore strongly reduced

 

The ratio of feedstock/methanol can vary and depends on the quantity of carbon in the feedstock (or caloric value). Due to the addition of hydrogen all (> 96%) carbon in the feedstock is used