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Business plan on bio gas production

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Mohsin khan

on 27 May 2015

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Transcript of Business plan on bio gas production

Business plan on bio gas production
Executive Summary
Biocon Power Company
A cost effective renewable energy source “Biogas” in the form of different products
The product offerings of the company include Biogas for households, Electricity for industry and Biogas for transportation.
The initial capital required for the establishment and operations of the company is Rs. 5 million.
In the first full year of operation, the company has estimated to reach Rs.7 million of sales
Executive Summary
The target market for Biocon Power Company is considered to be the villages closer to the company’s production plant at the initial level
Plans to use 2000 cubic meters of animal manure and 1200 cubic meters water as the input
The company receives the input for the biogas production process from different Dairy farms nearest to the location of plant and also from the individual farmers
Chances of success are very high
Company profile
Name of product: GREEN FUEL & ENERGY
Name of company: BIOCON POWER COMPANY
Address of company: HASILPUR ROAD, BAHAWALPUR

Products and Services
The offerings in this regard will include biogas for household use as well provide to industry at initial stage, bio fuel for the vehicles named as Bio CNG cylinders, bio energy for electricity generation and the consultancy services for house hold energy solutions.
Changing life styles with economic and unique available resources
Vision
Mission
Our mission is to provide integrated energy solutions to our customers in an environmentally friendly and socially responsible manner. In other words, we will strive hard to provide power in a way that is sustainable in the long term.We believe it is essential not only to make profits but also to care about people and protect the environment. We will lead by example through a commitment that empowers our customers ensuring the excellence at all levels of our operations, performance, products and services.Simultaneously,actively contribute towards welfare of society and social uplift of the under privileged section of the community
The problem
Excessive use of biomass energy is not only a threat to the environment due to the high use of forest resources, but also results in a drop off in the agricultural productivity due to the diversion of agricultural residues and animal waste from farms to fireplace.
PEST Analysis
Political
Presently, the political scenario of Pakistan is quite favorable for using renewable energy resource in order to eliminate the severe energy crisis in Pakistan
Economical

Energy sector is one the most important sectors driving the economy of Pakistan
Biogas is able to replace the firewood in rural areas
Transformation of organic waste into fertilizer
Workload of women in the rural areas is also reduced by the help of biogas plant
Environment is also saved by this like there is protection of forests for the purpose of wood
Social

Biogas energy has potential to save the metabolic energy and the time of women, which could be used for other productive activities that enable women to be socially, psychologically and politically empowered.

Improving health conditions, allowing rural women to have enough time to be involved in income-generating, social and community development activities for their self-enhancement and empowerment.
Technological

Pakistan Council of Renewable Energy Technologies (PCRET) has been recently established by merging National Institute of Silicon Technology (NIST) and Pakistan Council for Appropriate Technologies (PCAT).

The technology change rates, with respect to biogas plants, is non-existent and therefore there is no such problem fostered in the installation of the biogas plants in the country as well as much of the technological help and incentives are being provided by the PCRET
Industry Analysis
Pakistan has one of the world’s fastest growing economies and energy resources development will be essential to increase its ability to sustain the high growth rates through the 1990s.Three critical characteristics must be considered in analyzing Pakistan’s energy sector.
Energy Supply & Demand
Pakistan has a huge amount of Gas resource but by increasing the demand of Gas in future Pakistan face shortage of gas


The current situation in Pakistan is that it is producing 1,462.26 bpd as per 2012. In July 2013, the oil production stood at 68,000 barrels per day, which escalated to 100,000 bpd as of today – up over 30,000 bpd.
There is enough livestock for producing biogas up to 16 million cubic meters a day and it can be very effectively used as fuel
Sector Natural gas consumption
Power Sector 35.4%
Fertilizer 23.4%
Industrial 18.9%
Household 17.6%
Commercial 2.8%
Cement 2.5%
Competition
There is no competition at all in the market
some of the biogas production projects already running but they all are on the very small-scale level
Indirect competition
other alternative renewable energy resources including natural gas, firewood, wind energy, solar energy, and coal and petroleum products
Availability of Biomass
Availability of Biomass is 20,00 tons garbage collected in the Bahawalpur city, hundred of gallons of waste water, thousands of cotton stalks and rice husk etc. It is very economical and friendly way of disposing off the municipal waste that is collected in tons every day in the city but unfortunately no efforts have been made in this particular direction in Bahawalpur.
SWOT ANALYSIS
Strengths

• Low price
• Environment Friendly
• Initiative step for alternative energy
• Qualified management
• Government and Public Support
• No complexities in production of Biogas
• Agriculture support
• No harmful material waste
• No pollution
• Ozone Friendly
• Use of Animal Wastage






Weaknesses
Product rate is low
• No more outlets
• Expensive generators for electricity
• Special technical staff
• Financial constraints
Opportunities
•Being Agrarian country, abundant ingredients for biogas.
•Kisan Dost Lease Finance Facility available for the installation of biogas plant.
•Less labor than tree felling.
Economically feasible and socially acceptable concept.
Huge potential of around 5 million houses.
Great backup from Biogas Support Program
Threats
• Fierce competition with gas grid extensions.
• Antibiotics used in the feed of animals can cause difficulties in production.
• Forest areas in Pakistan hardly serve as the carbon sink.

Core Benefits Cheap energy
Basic products Bio gas
Consultancy and after sales services like replacement of cylinders
Different sizes of cylinders will be available in future
Level of products
For Biogas Cylinders we have competitive prices. For this products we have “cost plus profit margin” model. We will add 25% profit margin in cost of these two products. In future we will offer Biogas based CNG at 25% less price in relation to LPG prices prevailing in the market
Pricing
Biogas develops through anaerobic fermentation. During this process, organic substances are decomposed by microorganisms. The substances added to the system produce the biogas in an oxygen-free environment. In the first step, the organic substances are divided into molecular components (sugar, amino acids, glycerin and fatty acids). Microorganisms convert these intermediate products into hydrogen and carbon dioxide, which are then transformed into methane and water according to the

Equation: CO2 + 4H2 ----> CH4 + 2H2O

Production Plan Biogas generation
Risk Assessment
Biocon Powers Company faces only execution and startup risks; there is no other risk except some level of financial and product execution risk. The overall environment is very helpful for the company operations and its sales. There is no market and product branding related risk for the company because the company is serving in the necessities of life which are going to be extinct in near future so the company has a great scope for its products and services.
Certificates required by the Biocon Powers Company
Generic Value Chain for Biogas
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