Proposition for Polish Poultry and Chicken litter based Biogas Plants

A unique investment opportunity: as Poland accelerates its transition towards renewable energy, strategic partnerships are essential to harness the full potential of sustainable resources.

SusBDe's local collaboration offers a comprehensive solution tailored to the Polish market, leveraging their combined expertise in biogas production and renewable energy services.

Partner in Renewable Energy

SusBDe

SusBDe has been a pioneer in sustainable waste-to-energy solutions since 2009. Specializing in transforming organic waste into compressed biogas (CBG), liquefied natural gas (LNG), and electricity, SusBDe has successfully implemented large-scale projects globally.

A notable example is the Nagpur initiative, India, where we process 1,200 metric tons of municipal solid waste daily, producing over 27 million cubic meters of CBG annually. This project exemplifies their capability to deliver environmentally beneficial and economically viable energy solutions. SusDBe and its partners have designed more than 100 plants and over 20 executed.

Partner in Renewable Energy

Synergy

The synergy between SusBDe's technological process in biogas production and partnering with local expertise in project development positions them uniquely to contribute to Poland's renewable energy goals. Our local way of working will effectively address the nation's objectives of increasing the share of renewables in the energy mix, as outlined in Poland's Energy Policy for 2040. Investing in this platform is not only promises substantial returns but also supports Poland's commitment to sustainable and clean energy development.

Market opportunity & Business Context

Poland generates approximately 4.5 million tonnes of poultry and chicken litter annually, currently incurring significant disposal costs. Leveraging our proprietary biogas fermentation technology, optimized specifically for poultry manure, we possess a substantial competitive advantage by converting waste into valuable biogas and premium fertilizer.

Although our technology accommodates various feedstocks (as well cow dung and agricultural), peak operational efficiency and a maximum financial viability are achieved with poultry and chicken litter, maintaining consistent fertilizer quality. The untapped feedstock potential and our patented technology are the basis of our strategic focus on poultry and/or chickn litter based anaerobic digestion.

Strategic deployment plan

Strategic objective

We have currently identified and assessed 150 potential locations suitable for developing 1 MWe biogas plants (each producing 2.5 MWg).

  • 100 smaller plants (1 MWe each; total 250 MWg): waste to electricity (Centrion Program).
  • 5 larger plants (10 MWe each; total 125 MWg), dedicated to upgraded biogas products (CBG/BIO-LNG): waste to biogas.

Entry Strategy

An Iinitial development of 3 plants, each 1 MWe, strategically positioned within a 50-70 km radius to optimize operational and maintenance efficiency.

Subsequent development of 1 larger demonstration plant (10 Mwe/25 MWg) at the most suitable site based on initial insights.

Entry Phase Production

  • 3 smaller plants: 11.1 million m³ biogas, 10MWe
  • 1 larger plant: 35 million m³ biogas
  • Total entry phase: 46.1 million m³ biogas annually

Centurion Program of the Projected Annual Gas Production

The Vision of SusBDe is to execute the Centurion Program over the next seven years.

Key outcome is based on:

  • 100 smaller plants: 366 million m³ biogas, 100MWe
  • 5 larger plants: 175 million m³ biogas
  • Total annual output: 541 million m³ biogas

What are the advantages of using an Entry Strategy?

Economies of Scale

Cost-effective replication and standardization.

Risk Management

Unrivalled technical and financial guarantees with superior control over development through strategic partnership with Lightief.

Enhanced Market Insight

Detailed knowledge of larger-scale biogas upgrading operations and infrastructure.

Investment and Financial overview

Initial Investment

This is the entry phase for this project.

  • €25 million for establishing four initial plants (3 small and 1 large) and organizational infrastructure within six months.
  • 55% equity ownership per plant.
  • First dividends payable after one year of operational performance.

Portfolio Financials

A total of 4 plants, of which 3 smaller and 1 larger one.

Total CAPEX: €101 million

  • Small plants: 3 × €9.5 million each
  • Large plants: 1 × €72.5 million each

Total Investment for 55% equity ownership

  • €25 million

Annual Biogas Production

  • 46 million m³

Financial returns

Internal Rate of Return (IRR)

  • Smaller plants: ~19%
  • Larger plants: ~24%

Annual EBITDA

  • Smaller plant - €2.60 million
  • Larger plant - €23.47 million  

Fees Structure

  • Smaller plants: 8% development fee; annual license fee of €125K.
  • Larger plants: 5% development fee; annual license fee of €450K (including SLA).

Feedstock Assurance & Land Acquisition

Minimized feedstock costs, secure partnerships with key entities for reliable operations.

  • Negligible feedstock acquisition costs due to poultry manure disposal savings for producers.
  • Long-term feedstock agreements and initial LOIs secured with key Polish poultry and agricultural entities.
  • Strategic partnership with Lighthief ensures reliable land acquisition, permitting, and grid connection.

Exit Strategy & Valuation

Our core objective is to create enduring value for our investors while establishing a leadership position in the Polish market. We're building with long-term independence in mind, but we’re also acutely aware of the strategic interest from major players, such as Shell, who have been active in acquiring companies in adjacent sectors. While an exit is not our primary goal, we’re structuring the business to maintain strategic flexibility — whether that leads to an acquisition, merger, or a public offering upon reaching scale between year 5 and 7 after commencing operations.

The initial investment is repaid by preferred dividend streams.

  • Valuation based on
    (EBITDA × 8 (market valuation multiple) minus outstanding debt) × 55% equity.
  • Base calculation 3 small and 1 large plant exit value after five years is € 118.613.000

Base calculation: a small & a large plant

     1 MWe / 2.5 MWg
          25 MWg
Investment
                    €3.200.000                                                                            € 18.000.000
No. of plants
1
1
Ebitda
€ 2.600.000
€ 23.470.000
Debt (after five years)
€2.800.000
€ 26.100.000
Ebitda multiple
8
8
Enterprise value
€ 18.000.000
€ 161.660.00
Equity participation
55%
55%
Exit value
€ 9.900.000
€ 88.913.000
                         AND repayment of initol investment                   

Investment Proposal

Guarantee Framework by SusBDe

To mitigate risks and secure investor returns in the renewable energy project, SusBDe provides a comprehensive set of guarantees structured around three key areas:

  1. Financial Compensation Guarantee: asset protection-revenue continuity and liability management
  2. Technical Performance Guarantee: technical performance assurance
  3. Energy Production Financial Guarantee: a financially revenue shortfall compensation

The insurance program and financial performance guarantee structures are designed to be transferable directly to investors, further enhancing financial security and investor confidence.

1. Financial Compensation Guarantee

SusBDe has established a comprehensive insurance framework specifically designed to safeguard investor capital and interests. This robust protection strategy ensures risk mitigation across key project dimensions, significantly enhancing investment security. Coverage includes:

  • Asset Protection: Insurance against property and material damage, ensuring the physical integrity and value preservation of project assets.
  • Revenue Continuity: Coverage for loss of revenue due to project delays, encompassing compensation for lost net profits, ongoing fixed costs (inclusive of additional debt service obligations), and accumulated interest.
  • Liability Management: Extensive third-party liability insurance covering potential environmental and other damages, effective throughout both construction and operational stages.

Coverage Duration: The insurance policy spans the entire construction period and extends through the initial ten years of project operations, providing investors with sustained confidence and financial security.

2. Technical Performance Guarantee

SusBDe ensures operational excellence through a long-term service agreement offering:

  • Technical Performance Assurance: Guaranteed operational performance above 80% efficiency.
  • Continuous Monitoring: 24/7 data analytics and operational support to optimize plant performance.
  • Fault and Damage Management: Comprehensive management of technical faults and third-party damages.

Duration: 10 years post-Commercial Operation Date (COD), with options to extend up to 30 years.

3. Energy Production Financial Guarantee

To safeguard investor returns tied directly to energy production, SusBDe provides a monetized performance guarantee:

  • Compensation for Revenue Shortfalls: Financial compensation if energy sales drop below the guaranteed 80% threshold.
  • Fault and Damage Management: Integrated management of production faults and third-party impacts.

Duration: Available for 5 or 10 years post-COD.

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What solution fits you?

We’d love to guide the journey to achieving your business sustainability goals. SusBDe helps you find the right solution to make more out of your waste.