How to start Business of Biogas Plant

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How to start Business of Biogas Plant

Here is a Detailed Project Report on the Biogas Plant, its process, market position, demands, investment opportunity and project financials. It comprises a comprehensive analysis of the industry. The report also includes plant capacity, requirement of land and building, raw material detail with supplier list, plant & machinery, flow sheet diagram, total Capital investment along with detailed calculation on rate of return, break-even analysis and profitability analysis. The world is trying to find a sustainable way of harnessing energy. We have been using fossils for two centuries and that has cost us global warming. With each year the urgency to find a better option increases. 2022 has accounted for the hottest year in 100 years and scientists believe it is just a beginning. As per UN and the Intergovernmental Panel on Climate Change, or IPCC has given us till 2050. If we don’t stop climate change in 25 years, there might be no way back and Climate Change will be irreversible. Even this 25 years of labour won’t stop the climate change, instead it will just further the deadline. And that’s why companies and governments are turning towards Biogas fuel.

Visit this Page for More Information: Start a Business in Biotechnology Sector

What is Biogas?

Biogas is an eco-friendly, cost effective energy source, extracted from animal waste or wasted food or agricultural waste. It is a mixture of different gases, such as Carbon Dioxide, Methane, and Hydrogen Sulphide. It is also called Bio methane. Biogas is basically a great way to create sustainable energy and recycle wastes, such as, Animal faces, food scraps, sewage water, waste water, etc. Biogas is flammable, due to its high Methane content. Biogas contain about 50% to 70% of Methane.

What is Biogas used for?

Biogas is used for two reasons.

● As a Replacement.

Now this is the most common use of Biogas.

If biogas is purified and upgraded it can be used as a replacement for natural gases. This upgraded biogas is what we call, ‘Biomethane.’ It can be used in cooking or heating.

● As a Fuel.

It is compressed and used as a fuel in cars, auto rickshaws and buses. This compressed Biogas is what we call, Compressed Biogas, or CBG for short.

So these are the two uses of Biogas.

How is Biogas produced?

Biogas is created through the process called Anaerobic digestion.

● Anaerobic Digestion

Anaerobic digestion is when a bacteria “digests” biomass in absence of oxygen. Now this is a natural process that occurs in our digestion systems. But it can be artificially created in containers. These containers are called Digesters.

Now there are two types of Digesters.

➔ One covered in discharged liquid from industries or sewage. In it biogas is compiled under an airtight, leak proof lid.

➔ The second one is engineered for semi-liquid waste. It mixes up all the waste and through heating and cooking, biogas is created or they just add bacteria to the waste. This digester looks like a fermentation tank.

And this is how Biogas is made.

Watch Video: How to Start Biogas Production, Biogas – An Intense Opportunity.

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What type of Raw materials are used in the production of Biogas?

The raw materials used in Biogas are organic wastes in industries recycled into fuel.

● Animal Waste:- Animal waste such as manure, meat processing wastes.

● Organic Industrial Waste:- Food waste, wastewater sludge, from the food industry.

● Organic wastes from landfills:- Organic wastes, such as food scraps etc, thrown away.

Advantages of Biogas.

➢ Biogas is a Green energy.

Biogas is a green energy, which means it is a renewable energy. It is one of the five types of renewable energy, such as, Solar energy, geothermal energy, wind energy, hydropower.

➢ Biogas emit less greenhouse gases.

Unlike its counterpart, i.e. thee natural gases, it emits less methane, nitrous oxide and Carbon Dioxide. These gases are harmful for the environment.

➢ Biogas is a great way to recycle waste.

Biogas is a recycling project at its core. It recirculates all the industrial and house waste into a renewable energy source.

➢ Biogas is Cheap.

Biogas is about 80% cheaper than LPG. In India, 1 Kg of Biogas costs about ₹25, whereas LPG gas costs about ₹1002.50 in India. This is one of the reasons why many families in rural India use Biogas, instead of LPG to cook their meals. Now there is another reason for that and we’ll talk about it in a second.

➢ Biogas creates Organic Fertilizer.

The production of Biogas comes along with enriched organic digestate, which can be used as a substitute for chemical fertilizers.

Read our Books Here: Handbook on Biogas and Its Applications(from Waste & Renewable Resources with Engineering & Design Concepts)(2nd Revised Edition)

Disadvantages of Biogas.

Ø Biogas can only be created in a specific climate.

Biogas has to be produced in 37℃ because, only in 37℃ the bacteria can digest the waste. To produce biogas in winter or cold weather you need heat energy.

➢ Biogas Technology had no upgrades.

While engineers keep finding better solutions to harness renewable energy in a cheaper and more sustainable way, there has been no such breakthrough with Biogas Technology. And because there has been no such upgrade to simplify the process and make it cost effective, it is hard to supply to a large population.

➢ Biogas isn’t compatible with metropolitan settings.

Biogas is created from food waste, manure and animal waste. To set up an industrial biogas plant, you need to have accessibility to these raw materials. And these are not something you find in big Metropolitan cities. And this is why you find mostly rural areas using Biogas.

Now the last one might seem like a disadvantage and it is to some extent. But in a country like India, where 65.07% of the total population lives in rural areas, this seems more like an advantage than a disadvantage.

What are the contents of Biogas?

➢ Methane: Biogas contains 50% to 75% of Methane.

➢ Carbon Dioxide: About 20-40% of biogas is CO2 or Carbon Dioxide

➢ Trace gases: The remaining biogas is hydrogen sulphide and nitrous oxide.

Biogas Plant Owners in India.

Maharashtra has the highest number of biogas plants in India. It has over 9, 31,000 plants as of March of 2021. Karnataka comes second in nationwide biogas plant ownership; it has around 5, 13,000 as of March 2021. India has over 5 million biogas plants all around the country. And that’s why I said, in the disadvantages section, being in India and owning a Biogas plant can be profitable. About 898,024,053 Indians live in rural areas as of 2020. It has increased by 0.9% between 2019 and 2020. And we do not have the data for the last two years yet, but it is safe to assume the number seems to have increased again.

Watch other Informative Videos: Renewable Energy Sector, Green Power, Solar Energy, Biofuel, Hydroelectric, Wind, Non-conventional Energy, New and Renewable Energy

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NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

Our various services are: Detailed Project Report, Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

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Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

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The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Ø Introduction

· Project Introduction

· Project Objective and Strategy

· Concise History of the Product

· Properties

· BIS (Bureau of Indian Standards) Provision & Specification

· Uses & Applications

Ø Market Study and Assessment

· Current Indian Market Scenario

· Present Market Demand and Supply

· Estimated Future Market Demand and Forecast

· Statistics of Import & Export

· Names & Addresses of Existing Units (Present Players)

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Ø Raw Material

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· Properties of Raw Materials

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Ø Plant and Machinery

· List of Plant & Machinery

· Miscellaneous Items

· Appliances & Equipments

· Laboratory Equipments & Accessories

· Electrification

· Electric Load & Water

· Maintenance Cost

· Sources of Plant & Machinery (Suppliers and Manufacturers)

Ø Manufacturing Process and Formulations

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· Packaging Required

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Ø Infrastructure and Utilities

· Project Location

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· Rates of the Land

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Project at a Glance

Along with financial details as under:

• Assumptions for Profitability workings

• Plant Economics

• Production Schedule

• Land & Building

Factory Land & Building

Site Development Expenses

• Plant & Machinery

Indigenous Machineries

Other Machineries (Miscellaneous, Laboratory etc.)

• Other Fixed Assets

Furniture & Fixtures

Pre-operative and Preliminary Expenses

Technical Knowhow

Provision of Contingencies

• Working Capital Requirement Per Month

Raw Material

Packing Material

Lab & ETP Chemical Cost

Consumable Store

• Overheads Required Per Month And Per Annum

Utilities & Overheads (Power, Water and Fuel Expenses etc.)

Royalty and Other Charges

Selling and Distribution Expenses

• Salary and Wages

• Turnover Per Annum

• Share Capital

Equity Capital

Preference Share Capital

• Annexure 1:: Cost of Project and Means of Finance

• Annexure 2:: Profitability and Net Cash Accruals

Revenue/Income/Realisation

Expenses/Cost of Products/Services/Items

Gross Profit

Financial Charges

Total Cost of Sales

Net Profit After Taxes

Net Cash Accruals

• Annexure 3 :: Assessment of Working Capital requirements

Current Assets

Gross Working. Capital

Current Liabilities

Net Working Capital

Working Note for Calculation of Work-in-process

• Annexure 4 :: Sources and Disposition of Funds

• Annexure 5 :: Projected Balance Sheets

ROI (Average of Fixed Assets)

RONW (Average of Share Capital)

ROI (Average of Total Assets)

• Annexure 6 :: Profitability ratios

D.S.C.R

Earnings Per Share (EPS)

Debt Equity Ratio

• Annexure 7 :: Break-Even Analysis

Variable Cost & Expenses

Semi-Var./Semi-Fixed Exp.

Profit Volume Ratio (PVR)

Fixed Expenses / Cost

B.E.P

• Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

Resultant N.P.B.T

Resultant D.S.C.R

Resultant PV Ratio

Resultant DER

Resultant ROI

Resultant BEP

• Annexure 12 :: Shareholding Pattern and Stake Status

Equity Capital

Preference Share Capital

• Annexure 13 :: Quantitative Details-Output/Sales/Stocks

Determined Capacity P.A of Products/Services

Achievable Efficiency/Yield % of Products/Services/Items

Net Usable Load/Capacity of Products/Services/Items

Expected Sales/ Revenue/ Income of Products/ Services/ Items

• Annexure 14 :: Product wise domestic Sales Realisation

• Annexure 15 :: Total Raw Material Cost

• Annexure 16 :: Raw Material Cost per unit

• Annexure 17 :: Total Lab & ETP Chemical Cost

• Annexure 18 :: Consumables, Store etc.,

• Annexure 19 :: Packing Material Cost

• Annexure 20 :: Packing Material Cost Per Unit

• Annexure 21 :: Employees Expenses

• Annexure 22 :: Fuel Expenses

• Annexure 23 :: Power/Electricity Expenses

• Annexure 24 :: Royalty & Other Charges

• Annexure 25 :: Repairs & Maintenance Exp.

• Annexure 26 :: Other Mfg. Expenses

• Annexure 27 :: Administration Expenses

• Annexure 28 :: Selling Expenses

• Annexure 29 :: Depreciation Charges – as per Books (Total)

• Annexure 30 :: Depreciation Charges – as per Books (P & M)

• Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)

• Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)

• Annexure 33 :: Interest and Repayment - Term Loans

• Annexure 34 :: Tax on Profits

• Annexure 35 ::Projected Pay-Back Period And IRR