The balance between increased operational costs and the reduced capital costs results in similar total unit costs for our different scales of operation. As seen from the figure this is caused by counteracting effects balancing out each other. As such the operational costs at the plant can be identified as an important factor in achieving profitability of increasing the scale.Additionally the assumption about all subsidy from biogas used in the CHP plant accruing to the biogas plant is questionable for alternative ownership structures. We assume that either the CHP owns and builds the biogas plant as an additional activity or that the negotiating power of the biogas plant is sufficiently strong to secure the full subsidy. Alternative assumptions could change the attractiveness of upgrading relative to the CHP solution further.Authorities have to carefully consider both the level of support provided but also differences in support for different end uses of biogas.
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