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The economic and financial performance of biogas production: a retrospective analysis of the French case

Sébastien Bourdin (Department of Economy, Territories and Sustainable Development, EM Normandie Business School, Caen, France)
Roland Condor (Department of Strategy and Entrepreneurship, EM Normandie Business School, Le Havre, France)
Christine Fournès (Department of Finance Accountability and Management Control, ESSCA Business School, Boulogne Billancourt, France)
Luc Tessier (Department of Law, Finance and Control, EM Normandie Business School – Paris Campus, Clichy-la-Garenne, France)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 12 November 2024

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Abstract

Purpose

While numerous studies have focused on the economic impact of technical changes made to anaerobic digestion plants, there is limited understanding of the overall economic and financial performance of the biogas production units. This study aims to analyse the economic and financial performance of the biogas production sector over a 5-year period using various accounting indicators.

Design/methodology/approach

The research is based on an examination of financial data of French biogas units over a five-year period (2015–2019). Following a research protocol detailed in the study, 334 units were studied: 192 projects run by farmers, 83 projects run by industrial companies and 59 run by a mixed partnership (farmers, local authorities, and industry).

Findings

This study reveals that biogas production is performing well both economically and financially, but the performance varies depending on the type of producer: farmers better perform from an economic point of view, while industrialists are looking for financial profitability. Farmers exploit their competitive advantage based on waste disposal. Industrialists offset this disadvantage by a better ability to raise funds to negotiate payment terms and interest rates.

Originality/value

The originality of the study lies in its business approach. It completes the energy efficiency one which is more usual in energy sector management publications. Additionally, the study spans a five-year period, providing a longitudinal perspective of companies’ economic and financial performance. Furthermore, the data is sourced from reliable government sources.

Keywords

Citation

Bourdin, S., Condor, R., Fournès, C. and Tessier, L. (2024), "The economic and financial performance of biogas production: a retrospective analysis of the French case", International Journal of Energy Sector Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJESM-12-2023-0018

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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