Analysis of innovative business models for improved chicken litter management
All Energy Pty Ltd
Project code: PRJ-010332
Project stage: Closed
Project start date: Monday, February 1, 2016
Project completion date: Friday, September 30, 2016
National Priority: CME-Priority 3-Contributing to efficient and secure chicken production systems
A key hurdle for investment in waste management facilities such as waste to energy and composting operations, is the initial capital outlay. Additionally, there are on-going operational and financial risks associated with running such operations. Novel business models exist for delivery new waste management facilities including Build-Own-Operate (BOO), Build-Own-Operate-Transfer (BOOT), on-bill financing, leasing, low interest loans, private equity and government funding. Such business models means that a third party company with a suitable technology and funding track record can reduce or remove the technical, operational and/or financial risks associated with waste management facilities. Having an experience third party with “skin in the game” improves the rate of success for such facilities. Such projects can be “off book” thereby not impacting the balance sheet of the main business (i.e. the chicken grower), its borrowing capabilities or future financing options. Additionally, projects can be structured so that there is a reduced cost of business to the chicken grower (with respect to waste management, electricity and/or heating costs) with no or minimal capital outlay. These innovative business models have been shown to be highly successful in European and Northern American agri-businesses as well as at Australian industrial and commercial properties. However, there are minimal case studies of these business models in an Australian agri-business environment, hence the demand for such a program of works.
All Energy Pty Ltd
Detailed analysis of anaerobic digestion options for waste, in particular to generate energy and/or other co-products (e.g. organic nutrient-rich fertiliser). This analysis will be supported by an investigation into currently operational and proposed plants from a global and domestic perspective, with focus on the range of business models available for implementation of such projects. The specific feedstocks to be considered from growers/farms includes litter and from the processors includes sludge, hatchery waste and other organic waste. The most effective, innovative business models will be determined for successful implementation of PL AD in Australia.