Assessing the Economic Viability and Environmental Benefits of Treating Organic Waste Using Anaerobic Digestion

This case study by RMI evaluates the economic and environmental impact of an anaerobic digestion (AD) facility at the Oko Oba Abattoir in Lagos, Nigeria. The analysis compares a business-as-usual (BAU) scenario with scaling options to replace charcoal fuel and diversify biogas use, concluding that while the project is economically viable, high upfront capital costs remain a significant barrier to private investment.

• The business-as-usual (BAU) scenario for the Oko Oba abattoir AD facility is economically viable, with a project internal rate of return (IRR) of approximately 6% and a payback period of about 12 years. This scenario processes 330 kg of feedstock daily, meeting all on-site electricity needs and replacing nearly 20% of the charcoal used for cleaning animal skins.
• Scaling the facility to achieve a 100% fuel switch from charcoal to biogas (Scenario 1) would increase the project IRR to 14%. However, this requires quadrupling biogas generation to 67 m3/day, which necessitates a 400% increase in feedstock and an additional capital expenditure (CAPEX) investment of approximately $129,000 (₦ 45,798,000).
• Further expansion to co-digest 2 tons per day of animal waste and 200 kg per day of food waste (Scenario 2) allows for biogas end-use diversification, such as selling compressed, purified biogas for domestic cooking. While the IRR remains at 14%, the payback period is reduced by approximately 8 months to 10.5 years.

APA

Wu, Y., & Ayandele, E. (2024). Assessing the Economic Viability and Environmental Benefits of Treating Organic Waste Using Anaerobic Digestion. RMI. https://rmiwastemapprod.blob.core.windows.net/cms/assets/RMI_Oko_Oba_Biogas_Analysis_3cf3086de6.pdf

Chicago

Wu, Yuchen, and Ebun Ayandele. Assessing the Economic Viability and Environmental Benefits of Treating Organic Waste Using Anaerobic Digestion. RMI, 2024. https://rmiwastemapprod.blob.core.windows.net/cms/assets/RMI_Oko_Oba_Biogas_Analysis_3cf3086de6.pdf.

Wikipedia

{{cite report |last1=Wu |first1=Yuchen |last2=Ayandele |first2=Ebun |title=Assessing the Economic Viability and Environmental Benefits of Treating Organic Waste Using Anaerobic Digestion |publisher=RMI |date=December 2024 |url=https://rmiwastemapprod.blob.core.windows.net/cms/assets/RMI_Oko_Oba_Biogas_Analysis_3cf3086de6.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wu2024assessing, author = {Wu, Yuchen and Ayandele, Ebun}, title = {{Assessing the Economic Viability and Environmental Benefits of Treating Organic Waste Using Anaerobic Digestion}}, institution = {RMI}, year = {2024}, month = dec, url = {https://rmiwastemapprod.blob.core.windows.net/cms/assets/RMI_Oko_Oba_Biogas_Analysis_3cf3086de6.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }