An economic analysis of biogas production using swine manure in ZOMAC territories of Colombia

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Original abstract

For over five decades, Colombia's armed conflict has constrained rural development, especially in the Territories Most Affected by the Armed Conflict (ZOMAC). Nonetheless, the agro-industrial sector offers significant potential for energy generation from non-conventional renewable sources, particularly biomass, estimated at over 500,000 TJ per year. This study assesses the economic feasibility of valorizing swine manure through anaerobic digestion in ZOMAC territories, promoting circular economy and sustainable development. Four operational and economic scenarios of biogas plants using upflow anaerobic sludge blanket reactors were evaluated through Net Present Value (NPV) and Discounted Payback Time (DPBT). Profitability was found to depend mainly on fiscal incentives and plant scale. Scenario 3, involving biogas upgrading to biomethane, achieved a positive NPV (0.03 million USD) and an Internal Rate of Return (IRR) of 12.7% under Colombian tax incentives (Laws 1715/2014 and 1819/2016), with a DPBT of 7.4 years. Doubling the processing capacity improved profitability (IRR = 26.8%, NPV = 1.1 million USD, DPBT = 4.2 years) and made electricity generation (Scenario 4) viable (IRR = 13.8%, NPV = 0.16 million USD). These findings highlight that fiscal incentives and scaling-up are decisive for achieving economic feasibility, environmental sustainability, and inclusive rural development in post-conflict Colombia.

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