
Due to limited use of fossil fuels and increased environmental pollution, the use of renewable energy sources is become more and more frequent, and one of the most efficient biofuels is biogas.
Biogas is a product of the fermentation or biological breakdown of organic matter, that is, the green energy of plants and waste organic matters. In addition to manure and silage, the waste from agricultural industry, households and food-processing industry is more and more used in its production, while modern technology facilitates simultaneous production of electric and heating energy. The users of this renewable energy source are the industry and agriculture, as well as sewerage cleaning units and waste management facilities. There are over 5 million plants for production of biogas in the world today, most of which are very simple.
According to some estimates, 10% of green energy in Europe are obtained from biogas, while this alternative source of power supply has not yet reached the highest possible level of use in Serbia. Company Yu Kapital will be one of the first to start construction of biogas plants in our market and, as its CEO Marko Krajnčić explains, they have been waiting for the Regulation on price of green electricity to be adopted.

- There are still some undefined things in the Law. For example, it is written in the Law that the state guarantees the price of electricity for 12 years from the moment the Regulation is put in effect, which is probably a mistake since that time should be counted from the moment the plant is put in operation. Otherwise, such regulation is not logical for investors and banks because the price can not be put in connection with the passing of the Law, but with the construction or commencement of work of the plant. Also, the price of biogas in Serbia is the lowest in the region, which may be good to be changed. In any case, the Government, authorized ministries and private sector are working hard in the domain of alternative energy sources, and we hope that we will be able to fix the things in that area together.
First projects already ready
YU Kapital is intensively negotiating with its partners from Germany and Austria, and it also plans to include domestic companies in the project. The company has already chosen ten locations where it plans to have these biogas plants built. In order to do that, it will need a strategic partner and a good collaboration with agricultural farms, cooperative farms, and all those who have a land or a farm.
- In short, we will be first using waste to produce biogas and then biogas to produce electricity – said CEO of Yu Kapital.
As Krajnčić explains, Yu Kapital will start construction of 1 MW plants in Serbia, as well as some smaller ones, but he also points out that some companies, one of which is MK Commerce, has the capacities for 15 MW.

- The first plant, maybe even the first unit in Serbia, will be built in partnership with Mr. Avdalovic on his property in Padej in Vojvodina. The price of a 1 MW plant is between 4.5 and 5 million euros. We plan to form joint ventures with foreign and domestic partners, which will then supply power to the Electric Power Company of Serbia.
A biogas production unit costs more than the units for production of some other fuels, even 50% more in some cases, but its basic advantage lies in biogas by-products. The produced heat can be used for heating nearby houses (remote heating system) or popular hothouses. One of its by-products is biodiesel fuel.
The rest of solid substance, which is a very good manure, can be briquetted and used for heating since it practically has no taste and scent. Construction of the plan is very quick and it takes up to four months at average.
Each plant is different because every client has different individual needs and resources.
According to the words of our interlocutor, Yu Kapital's potential partners are, primarily, the companies that bought agricultural companies in the privatization process, as well as all other agricultural estates, farms, slaughterhouses, sugar plants, cooperative farms, and later even cities that will be separating organic waste.
- We think that many units will be built in Vojvodina because it is oriented towards agriculture and has much organic waste. Biogas will become very popular the moment Serbia starts complying with the European regulations, according to which the organic waste will be differently treated than now.

The most usual applications of biogas
Biogas has similar characteristics as landfill gas, which is why we can use it for the same purposes.
Biogas is very efficiently used for production of heat and gas, electric energy, simultaneous production of heating and electric energy, heating and cooling, production of hydrogen and its further use, production of chemicals, fuel for motor vehicles and agricultural machines.
Biogas
Biogas is a blend of methane (50 to 70%) and carbon dioxide (30 to 40%) with traces of ammonia, hydrogen, nitrogen, hydrogen sulfide, carbon monoxide and water vapor. Unlike fossil gas, burning of biogas is neutral, without CO2, so that it does not leads to increase in greenhouse effect in the atmosphere.
T.S.