Saconin-et-Breuil,
France
Why is this important? The project tackles the major issue of fossil fuel-based natural gas, responsible for 20% of greenhouse gas emissions in France. By converting agricultural waste into biogas, the project offers a sustainable alternative, reducing emissions by 60-80% compared to natural gas. France aims for biogas to constitute 7% of its energy mix by 2030 and 20% by 2050. However, progress has been slow, with biogas accounting for only 0.7% in 2020 and 0.9% in 2023, due to its higher cost compared to natural gas, despite numerous existing subsidies.
Why does this project need financial support? The project is specifically designed to excel in reducing carbon impact. This enhancement in carbon efficiency comes with a higher project operating cost. To achieve sufficient profitability (TRI = 10%, based on ADEME threshold) and secure the site exploitation, carbon credit funding is essential. The main factor that contributes to the project’s financial additionality is their challenge to constitute their Working Capital Requirement (WCR) for the continuation of their activities. In 2022, the site’s finances show a profit of €506,499, however, not enough to fulfil its WCR requirements of €808,635 and hence, the balance sheet remains at €-394,276 Supporting this project financially will ensure the sustainability and expansion of this circular project, which turns agricultural waste into biogas and organic fertilizer, contributing significantly to France's environmental and energy goals.
What is unique with this project? BLB Gaz is the association of 6 partners including 5 agricultural operations. All were looking for a diversification of their main activity with an activity that could correlate with the needs of their agricultural operation. That is to say, finding a certain independence from chemical fertilizers and being able to promote intercrops while producing green gas. BLB Gaz is a member of the "GAMA" cooperative (some twenty biogas plants are members), a purchasing group that looks for unavoidable waste and supplies it to the biogas plants, according to their capacity (regulatory and storage), needs and distances to be covered. It represents a genuine local circular initiative, enhancing energy supply autonomy and boosting economic resilience in rural regions.