Saint Crépin Ibouvillers,
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 cost. The main factor that contributes to the project’s financial additionality is their challenge to constitute their Working Capital Requirement (WCR) for the subsequent year. According to the previous financial analysis, SAS Chemin du Roi has a balance sheet of -€180,048. In 2022, the site’s finances show a profit of €787,586; however, it is not enough to fulfill its WCR requirements of €914,569, and hence, the balance sheet remains negative at -€179,577. 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?
The Chemin du Roi methanization site is the association of 3 agricultural operations located less than 5 km from each other. Like most methanization sites, this project was encouraged by the need to valorize intermediate crops and the need to find independence from chemical fertilizers through the use of digestate. The site wants to work on its environmental footprint, in particular by investing in a project to recover and valorize its CO2 at the end of purification. It represents a genuine local circular initiative, enhancing energy supply autonomy and boosting economic resilience in rural regions.