Biogas ROI Simulator: Financial Model for Biogas Digester

Biogas ROI Simulator
Biogas Digester Simulator
Biogas ROI Simulator - Ir. MD Nursyazwi

Biogas ROI Simulator

Created By : Ir. MD Nursyazwi

This tool helps you evaluate the financial feasibility of a biogas project. By adjusting the capital costs, revenue streams, and operational expenses, you can estimate the **Return on Investment (ROI)** and **Payback Period**.

How to Use

Enter your project-specific financial and operational data to calculate key financial metrics.

  1. Define the project's **Capital Costs** and **Operational Expenses**.
  2. Enter your potential **Revenue Streams** from electricity and fertilizer sales.
  3. Choose a **Feedstock Type** and set the **Digester Volume** to estimate biogas production.
  4. Set the **Simulation Duration** (e.g., the lifespan of the project).
  5. Click **Simulate** to see the results, including a cumulative profit graph.
  6. Click **Reset** to clear all inputs and results.

Capital Costs

Operational Parameters

Revenue & Expenses

Simulation

Annual Net Profit

$0.00

ROI (Annual)

0.00 %

Break Even Point

0.00 years

Cumulative Cash Flow Over Time

Financial Science Behind the ROI Simulator

A **Return on Investment (ROI)** analysis is a crucial step in any project. This simulator models the financial performance of a biogas plant over a specified duration using several key metrics:

Key Financial Metrics

  • Capital Expenditure (CAPEX): This is the initial investment required to build the plant. The simulator calculates this based on your digester volume and construction costs.
  • Operational Expenditure (OPEX): These are the ongoing annual costs to run the plant, including maintenance, labor, and other overheads.
  • Revenue: This is the annual income generated from the project, primarily from the sale of electricity and fertilizer (digestate). The simulator calculates the potential electricity generation based on the estimated biogas production.
  • Net Annual Profit: The difference between your annual revenue and annual OPEX. This is the amount of money you earn from the project each year after covering all running costs.
  • Break Even Point: The time it takes for the cumulative net profit to equal the initial CAPEX. Reaching this point means your project has paid for itself.
  • Return on Investment (ROI): A percentage that measures the profitability of the investment. It's calculated as the annual net profit divided by the total CAPEX.

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