Renewable Natural Gas (RNG) Financial Model Template

This Financial Model Template in Excel provides an easy way to forecast the financial performance of RNG business. The model focus on organic waste intake from animal manure and green garden waste to produce RNG, BioCNG and electricity.

RNG Treatment Facility
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What is Renewable Natural Gas?

Renewable Natural Gas (RNG) consists primarily of methane which produces carbon dioxide when fuel is burned. It is derived from waste materials found in food waste, agricultural waste, manure, plant material, or sewage. The abundance of these materials provides substantial quantities of biogas production that could be used to power businesses, homes, and even vehicles.

Renewable energy is a rising sector gaining a lot of attention and support from the private and government sectors as it reduces natural waste’s impact while fuelling a greener future. RNG provides an effective solution to managing waste issues and implements a source of clean and reliable fuel.

RNG as a business

RNG could be a sustainable resource of clean energy. The primary driver of renewable gas is the reduction of Green House Gases (GHG). But what makes it more compelling is that it also boosts the diversity of energy supply using local waste resources to produce renewable energy. Imagine tons of food waste, agricultural waste, or manure converted into a clean energy resource. You will not only help the environment but also gain tremendous profit in the long run. However, this venture also requires different equipment to convert these wastes into energy, but this could also be recovered in just a few years once production has stabilized, and given the increasing demand for clean energy resources.

Are you interested in this kind of venture? Let this RNG financial feasibility model help you with your analysis and make an informed decision on the financial aspects of venturing RNG business.

Renewable Natural Gas Financial Model Template

This model helps the user to evaluate the financial feasibility of the RNG Project by capturing various potential revenue streams from organic waste intake. In this model, the organic waste intake is converted into RNG and can be further converted into either BioCNG (Compressed Gas) or into Heat and Electricity which could be sold in an off-take agreement. This RNG can be allocated into three different revenue streams namely;

  • RNG
  • BioCNG
  • Electricity and Heat

Furthermore, this template provides for a 30-years project life which allows the investor to forecast its benefit in the long run.

Financials Tab:

  • Year Step-by-Step Daily Production Process
  • Three Financial Statement
  • Free Cash Flow Analysis -Levered and Unlevered
  • Detailed Debt Schedule
  • Detailed Capex and Depreciation Schedule
  • Key Financial Ratio Analysis (Leverage, Liquidity, Efficiency and Profitability)

Summary Tab:

  • 10-Year Three Financial Statement Overview
  • Graphical Presentation
    • Financial Projection
    • Revenue Breakdowns
    • Free Cash Flow
    • Energy Produced Chart
  • Uses and Sources of Funds
  • Project Metrics
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR) – Levered or Unlevered
    • Payback Period
  • General Assumption Inputs
    • Volume Assumption
    • Daily Production Target
    • Price Assumptions
    • Operating Cost Assumptions
    • CAPEX Assumption
    • Financing Assumption

The financial model allows the user to obtain a deep and solid understanding of how the RNG business works. Furthermore, the model provides for a detailed  30-year financial forecast to help investor assess the long-term benefit of RNG business.

The Excel model comes in a printer-friendly layout including charts and graphs..

Filetypes:

  • PDF Adobe Acrobat Reader
  • .xlsx (Microsoft Excel

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