Productive biogas: concepts, business models, incentives
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1 Productive biogas: concepts, business models, incentives
2 Biogas (and manure) sector development in 20 countries with over 660,000 bio-digesters installed.
3 Multiple benefits of bio-digesters Carbon revenues Health & sanitation Environment Energy Agriculture Local economy Biodigester
4 Large scale, Industrial biogas Heating buildings Sugar refinery, distillery, paper mills, dairy, baking ovens Electricity Vehicle fuel
5 Small scale bio-digesters Design: fixed dome (2-20m³) Local materials & resources Feeding: livestock manure & human excreta (> 15 kg daily) USD 300-1,500 Life: > 15 years Gas use: cooking/basic lighting Bio-slurry: organic fertiliser
6 Biogas milk chilling, processing; bioslurry for crops sale Biogas Customer helpdesk Income / loan installment FARMER Training entrereneurship Milk sale Dairy sector alignment Training cow rearing & milking Cow stable Income Production, installation, training, quality control, service Cow manure Biogas Stove Cow Fodder Production, installation & service Biogas Milk Chiller Bio-slurry Crops sale Food crop production Training slurry management Monitoring Biogas System
7 Medium scale bio-digester coffee cooperative 550 members Honduras Design: PVC (48-104m³) Feeding: coffee waste water livestock manure for start-up Repayment time: 14 years Gas use: electricity for admin. cooperative. Gas for roasting coffee. Bio-slurry: organic fertiliser
8 Medium scale communal bio-digester Peru Design: PVC (2x 75 m³) and 2 generators 6 & 10 Kw. Feeding: livestock manure ( 162 kg daily) USD ; Life: > 10 years Gas use: 16 Kw electricity for 42 households, SME s. Biodigester Bio-slurry: organic fertiliser
9 Medium scale communal biodigester palm oil waste Indonesia Design: fixed dome (50 m³) Feeding: palm oil effluent (750 lt ) start-up 30% dung Users manage transport feedstock; costs USD 5,500 Gas use: pipe system for cooking in 15 households Bio-slurry: organic fertiliser
10 Medium scale bio-digester Tofu industry Indonesia Tofu waste as feedstock. Design: fixed dome (20m³) Feeding: Tofu waste water USD 1700; repayment 17 months. Gas use: 10 hrs. per day water heating for Tofu production Bio-slurry: organic fertiliser (tbc)
11 Medium scale bio-digesters pig farms Vietnam Design: fixed plug flow dome ( m³) Feeding: livestock manure (> 2000 kg daily) USD ; repayment 3 10 yrs. Gas use: cooking/pig feed, few generate electricity Bio-slurry: organic fertiliser
12 Business Model: Functions National Sector Development Promotion Operation & maintenance Extension Training R&D Q-Control Sales & after sales service Financial services Coordination/implementation Coordination/policy level M&E
13 Tariff payment Implementing agencies SNV Practical Action Regional Direction of Energy & Mines Companies / Service providers Funding: Regional Government FACT Foundation Cordaid Administrates: - User register - Financial balances - Maintenance fund Business model: Community managed biogas powered minigrid Peru Communal Electrification Steering Committee (GIEC) Support and Supervision Unit Only exists during implementation of the project, afterwards converts in Support and Supervision Unit. Promotes activities to implement the project Periodic reports Municipality of Huimbayoc (MDH) Communal Energy Services Unit (USEC) Administration, Operation and Maintenance of the system (AO&M) Maintenance Fund Owner of the system Contract with USEC for delivering AO&M services Contract for energy supply Users Access to energy in isolated communities of the Peruvian Amazon, based on local production of biogas
14 Business model: cooperative Honduras Installation by local companies Cooperative s management and staff trained in operations, maintenance and application of biogas. Redistribution of cost savings through potential improvement coffee sales price to members.
15 Business model: Private enterprise inclusive business For-profit business model of private biogas and stoves production companies Ecofriendly production: biodigester from recycled plastic, crop residue feedstock Affordable, good quality biodigester, stove for low income communities Decent jobs in production, distribution and sales for low income people Inclusion of low income suppliers in the value chain.
16 Incentives Innovative finance: results based incentives, carbon finance. Cost reduction for customers, market intelligence for investors. Conducive environment: laws and reguiations for pollution, waste treatment Social pressure in demand creation: admiration, condemnation
17 Incentives: Results Based Finance Shift in Practice & Thinking Up-Front Subsidies biogas owners Conditional Post-Incentives construction companies; Non-Delivery = Non-Payment Risk from Donors Market Actors Temporary Incentive to Trigger Growth Responsive Design to Unique Market Context Flexibility for Private Sector to Drive Business Modelling
18 Conditions for scaling Technical, economical feasibility studies Market based, private sector driven approach Conducive governance environment Access to finance Capacity building of all stakeholders
19 Find out more on LinkedIn linkedin.com/company/13445 YouTube youtube.com/user/snvworld Flickr
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