Bit of Sunday reading of a 2017 report Market Analysis of...

Bit of Sunday reading of a 2017 report Market Analysis of Opportunities in Australia for Anaerobic Digestion Deployment. 5 years old but some good data points and items support DEL especially as they have been planting the seeds during the past 5+ years. The fact DEL is already in bed with Yarra Valley Water and Brickworks is a great sign, hardly scratches the surface. Ten bhaggers are hard to find but just cant help thinking DEL has all of the attributes. And as if a business like DEL wont get FUNDING!

Potential Australian Biogas Market Size – By Target IndustryEstimated number of abattoirs in Australia Medium 30 Economically sufficient scale Large 10 Economically sufficient scale Value per opportunity $4.0 million Total Market Opportunity $ $160 millionEstimated market opportunity for food processing industry anaerobic digestion20 Facilities Value per Opportunity $5.0 mTotal Market Opportunity $100.0 mEstimated number of piggeries in Australia24 Economically sufficient scaleValue per Opportunity $4.0 m Total Market Opportunity $96.0 m Estimated market opportunity for shedded dairy anaerobic digestion10 FacilitiesValue per Opportunity $6.0 m Total Market Opportunity $ $60.0 mEstimated number of egg farms20 facilitiesValue per Opportunity $5.0 m Total Market Opportunity $ $100.0 m

Additional notes:

Some sites are high energy users, e.g. an abattoir with their refrigeration loads, whilst others are smaller energy users, e.g. a piggery – For the business case it is preferable that the site is a high energy user and that as much as possible of the biogas is utilised on site / “behind-the-meter”

Age of existing site infrastructure – Often the existing site infrastructure, such as transformers, and main switch boards etc, can be relatively old; – This can both be a potential benefit to the business case for a project to progress, in that capital is required to be spent regardless, or a potential detriment to the business case for a project to progress, in that a project can potentially “bring forward” the requirement to upgrade existing infrastructure;

Dealing with waste is at the end of the value chain – One challenge to overcome with regards to accelerating uptake of anaerobic digestion and biogas is that upgrading to best practice waste management is often not a top-level priority for an operation in a competitive business environment; – Waste and waste water management is literally at the end of the production process at site and is often considered primarily from a compliance perspective as opposed to a value adding perspective; – As the economic case for anaerobic digestion and biogas continues to become more compelling, this barrier is continually being overcome;