On-farm micro- biogas systems represent an untapped potential for energy production and reduction of greenhouse gas emissions to the environment. This is due to poor practices from the past and the ethical issue of using food as an energy source. With this paper, I would like to present the functioning of biogas plants at the biochemical and technological level, as well as the legal principles that define the operation of biogas plants. Micro-biogas plants on farms have a great potential in Slovenia, as there are many livestock farms and many farms on the outskirts of the cities, which could potentially heat residential or industrial buildings by using biogas for energy. With micro-biogas plants, we can produce electricity, heat, and high quality fertilizer, which in turn reduces the need for mineral fertilizer and brings additional revenue through the sale of energy and possible surplus organic fertilizer. With the business plan of the micro-biogas plant on the farm, we find out what financial contribution the micro-biogas plant brings to agriculture. In the case of a larger farm with 203 LU (livestock unit) we found that the investment is amortized in 7 years, while in the case of a smaller farm with 56 LU the investment is not amortized and the plant operates at a loss. In the best case of a 20% increase in the prices of electricity and thermal energy (based on the current purchase prices for electricity), a larger farm makes an annual profit of €188,811 and a smaller one €6,694.
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