Economic Viability Assessment of Anaerobic DIgestion of Swine Farm Waste in the Philippines
Author : Umerez, Ruth Barcelona
Major Adviser : Bambase, Manolito E. Jr.
Committee Members : Dizon, Lisa Stephanie H.; Gatdula, Kristel M.
Year : 2020
Month : July
Type : Thesis
Degree: BS
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Abstract
Environmental impact of swine production has intensified with its effort to meet the increasing demand for food. Anaerobic digestion has the potential to address this waste management concern while producing renewable energy and valuable co-products. Annual revenue/cost savings gauged the benefits from heat and electricity generation, fertilizer, and carbon credit, over the capital, and operating costs for five selected backyard to large- scale farms in the Philippines. The sensitivity analysis determined the effect of different product market scenarios to the economic feasibility of technology. Results showed that the highest revenue contributor was electricity generation, followed by fertilizer, carbon credit, and heat generation, at Php 26,790,280.30, Php 12,476,043.12, Php 2,674,797.74, and Php 2,651,534.59 for sow level of 10,000, respectively. However, capital and operating costs were twice with electricity generation, at Php 90,120,242.59 and Php 2,708,660.75 for the same sow level, respectively. Sensitivity analysis showed that with electricity generation and co-products, annual profit was maximized for sow level of 500 and up; however, payback period was around seven to over ten years before a profit can be gained. Sow level of 100-499 could still generate profit without the carbon credit. While anaerobic digestion may not be economically feasible for less than 100 heads, it has more potential with heat generation and fertilizer. Other studies suggests that cost sharing, government incentives, and other source of revenue such as tipping fee from co-digestion of food waste, and wholesale electricity can improve the viability of the technology which should be considered in further analysis.
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