business plan for biogas production pdf

Biogas Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Green & Eco-friendly

Are you about starting a biogas company? If YES, here is a detailed sample biogas production business plan template & feasibility report you can use for FREE .

If you are looking for a green energy business to start, a business that can easily get support and even funding from the government, then one of your options is to start a biogas production company . Biogas is a good substitute for the conventional gas. It is a renewable fuel that doesn’t pollute the environment.

This renewable energy can be used for heating, electricity, and many other operations that use a reciprocating internal combustion engine.

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Starting a biogas production company is capital intensive and it also requires serious planning and hard work but the fact remains that it is indeed a profitable business to go into and it is still very much open for more investors to come in. Below is a sample biogas production business plan template that will help you successfully launch your own business.

A Sample Biogas Production Business Plan Template

1. industry overview.

Biogas is the combination of gases produced by the breakdown of organic matter in the absence of oxygen. Biogas can be produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste or food waste.

Biogas is a renewable energy source. Compressed biogas is becoming widely used in Sweden, Switzerland, and Germany. Biogas can be used for electricity production on sewage works, in a CHP gas engine, where the waste heat from the engine is conveniently used for heating the digester; cooking; space heating; water heating; and process heating.

If compressed, it can replace compressed natural gas for use in vehicles, where it can fuel an internal combustion engine or fuel cells and it is a much more effective displacer of carbon dioxide than the normal use in on-site CHP plants.

Biogas production business is a subset of the Biomass Power industry and businesses in this industry operate electricity – generating facilities using biomass (e.g. agricultural byproducts, landfill gas and biogenic municipal waste). Establishments engaged in operating trash disposal incinerators that also generate electricity are classified in the Waste Treatment and Disposal Services industry.

The Biomass Power industry is a thriving sector of the economy of countries like Germany, Japan, China, South Korea, France, The United Kingdom and the united states of America. In the U.S., the industry generates over $908 million annually from more than 122 registered and licensed biotechnology companies (biogas production companies inclusive.

The industry is responsible for the employment of over 1,397 people. Experts project the Biomass Power industry to grow at a 0.8 percent annual rate between 2014 and 2019. Progress Energy is one company with the a market share of the market in the United States of America.

A recent report published by IBISWorld shows that the Biomass Power industry has grown slowly over the five years to 2019. The industry’s expansion has been propelled in part by several federal renewable energy tax credits that encouraged the use of biomass power.

Furthermore, the majority of states have enacted renewable portfolio standards (RPSs), which require local utilities to generate electricity from renewable power as a percentage of their total energy portfolio. Increased campaigning for green technology also influenced industry performance by sparking interest in technologies that replace pollutant-generating energy sources, such as coal and gas.

Some of the factors that encourage aspiring entrepreneurs and investors to start a biogas production business is the fact that the market is growing rapidly in the United States and it is not seasonal.

That makes it easier for entrepreneurs who are interested in the business to come into the industry at any time they desire; the entry barriers might be high but any serious minded entrepreneur can comfortably raise the startup capital even if it means collecting loans from the bank.

The Biomass Power industry is a green and highly profitable industry and it is open for entrepreneurs to come in; you can choose to start on a small scale by producing and supplying at a community level or you can start on a large scale with distribution networks spread across key cities all around the United States of America.

2. Executive Summary

Green Gas® Biogas Production Company, Inc. is a licensed biogas production company that will be involved in the production and distribution of biogas to retailers, industries, and households. We have been able to lease a production facility that is a perfect fit and the facility is centrally located in North Platte – Nebraska.

Green Gas® Biogas Production Company, Inc. will produce and supply biogas and other biofuels to end users at affordable prices.

There is growing interest in biomass power especially biogas and new enterprises are springing up, which is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much more than our competitors will be offering.

We have robust distribution network; strong online presence and our distributors are armed with the various payments of options available in the United States.

Beyond the distribution and supply of biogas, our customer care is going to be second to none in the whole of North Platte – Nebraska and our deliveries will be timely and highly reliable. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they patronize our products.

Green Gas® Biogas Production Company, Inc. will ensure that all our customers are given first class treatment whenever they order biogas and other biofuel from us. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base and distribution network may grow to.

Green Gas® Biogas Production Company, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Green Gas® Biogas Production Company, Inc. is a family business that is owned by Sutton Jones and his immediate family members. Sutton Jones has a B.Sc. in Microbiology and MSc. in Biotechnology, with over 15 years’ hands on experience in the biomass power industry, working for some of the leading brands in the United States.

3. Our Products and Services

Green Gas® Biogas Production Company, Inc. is in the Biomass Power industry and we will be involved in the production and distribution of quality and safe biogas and other biofuel products. We are in the Biomass Power industry to make profits and we will ensure that we do all that is permitted by the law in the United States to achieve our business aim and objectives.

4. Our Mission and Vision Statement

• Our vision is to be listed amongst the top 5 biogas production companies in the whole of the United States of America.
• Our mission is to establish a biogas production plant and supply business that will distribute quality and safe biogas at affordable prices to retailers, and industries in North Platte and other cities in and around Nebraska where we intend marketing our biogas and other biofuel.

Our Business Structure

Green Gas® Biogas Production Company, Inc. does not intend to compete at the local level; our intention of starting a biogas production company is to build a standard company in North Platte – Nebraska. We will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We want to put modalities in place that will guide us in hiring people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions that will be made available at Green Gas® Biogas Production Company, Inc.;

• Chief Executive Officer (Owner)
• Production Manager
• Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

• Accountants / Cashiers
• Customer Services Executive
• Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results;
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process
• Carries out induction for new team members
• Accountable for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Production Plant Manager

• Responsible for overseeing the smooth running of the biogas production plant
• Part of the team that determines the quantity and quality of biogas and biofuels that are to be produced
• Maps out strategies that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures the steady flow of raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures that the plant meets expected safety and health standard at all times.
• Responsible for using space and mechanical handling equipment efficiently and making sure quality, budgetary targets and environmental objectives are met
• In charge of  using and coordinating automated and computerized systems where necessary
• Accountable for producing regular reports and statistics on a daily, weekly and monthly basis
• Ensures that proper records of biogas and other biofuel products are kept and warehouse does not run out of products
• Controls biogas supply inventory
• Supervises the workforce in the production floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of biogas and other biofuel products for the organizations
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant/Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information are supplied to customers when they make enquiries.

Distribution Truck Drivers

• Assists in loading and unloading biogas and other biofuel products
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a distribution schedule.
• Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Reports defects, accidents or violations

6. SWOT Analysis

Our goal of starting out in North Platte is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then start our biogas production and supply all around the state of Nebraska.

We are quite aware that there are several biogas production companies and contractors all over North Platte and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Green Gas® Biogas Production Company, Inc. employed the services of an expert HR and Business Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Green Gas® Biogas Production Company, Inc.;

Our location, the business model we will be operating on (robust distribution network), reliable distribution tankers, varieties of payment options, quality and safe biogas and other biofuel products and our excellent customer service culture will definitely count as a strong strength for us.

So also, our management team are people who have what it takes to grow a business from startup to profitability in record time.

A major weakness that may count against us is the fact that we are a new biogas production company and we don’t have the financial capacity to compete with leaders in the industry especially as it relates to leveraging on economy of scales.

• Opportunities:

Regional public utility commissions regulate retail electricity prices. Biomass power plants controlled by regulated utility companies are subject to regulated retail prices.

Industry operators that successfully petition for rate hikes benefit from increased revenue and profitability, while companies that are unable to obtain favorable rulings will have difficulty operating in the industry. In 2019, the price of electric power is expected to increase, representing a potential opportunity for the industry.

Tax credits make biomass-power projects more affordable for biomass-power generation enterprises to execute. With cost savings, operators can more effectively compete based on the price of electricity with other types of energy-generation technologies.

With the expiration of the production tax credit and no renewal planned in 2019, the net value of tax credits directed at biomass power generation are expected to decrease, representing a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

In recent time, particularly in the United States, the awareness and use of biogas is rapidly increasing because it has been proven to be environmentally friendly and efficient when used in any machine that runs on gas. It has lower to zero emission compared to the liquefied natural gas.

Strong growth in the current period is expected to continue, technological advancements spurred demand from downstream industries and the industry is developing new revenue streams from outsourced research and other related bio products.

Please note that external factors such as global research and development funding and global investor confidence in the Biomass Power industry will impact industry performance.

Many investors are now going into the production of biogas because it has been proven to be a better substitute for gas and that is why it is now produced in commercial quantities in the US thereby reducing the importation and dependence on natural gas.

8. Our Target Market

The Biomass Power industry has a wide range of customers; a good number of manufacturing companies and owners of gas – powered machines make use of biogas and other biofuel products.

In view of that, we have positioned our biogas production company to service businesses in North Platte – Nebraska and every other location we will cover in Nebraska.  We have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to retail (distribute) biogas and other biofuel products to the following businesses;

• Manufacturing companies
• Power plants that run on biogas
• Facility managers that make use of biogas

Our Competitive Advantage

Green Gas® Biogas Production Company, Inc. is launching a standard biogas production company that will indeed become the preferred choice for gas – powered machine owners and biogas distributors et al in North Platte – Nebraska.

Our competitive advantage revolves around our ability to attract local support and patronage, easy compliance with government regulations, ability to quickly adopt new technology, ability to raise financing and our ability to educate the wider community on the need to switch to green energy.

One thing is certain; we will ensure that we have biogas and other biofuel products available in our distribution network at all times. One of our business goals is to make Green Gas® Biogas Production Company, Inc. a one stop biogas production company.

Our excellent customer service culture, timely and reliable delivery services, online presence, and various payment options will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Green Gas® Biogas Production Company, Inc. will generate income by producing and supplying biogas and other biofuel products within the scope of the Biomass Power industry in the United States of America.

10. Sales Forecast

One thing is certain, when it comes to biogas production, if your business is centrally positioned coupled with effective and reliable tankers/trucks and distribution network, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

Green Gas® Biogas Production Company, Inc. is well positioned to take on the available market in North Platte – Nebraska and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the Biomass Power industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in North Platte – Nebraska.

Below are the sales projections for Green Gas® Biogas Production Company, Inc., it is based on the location of our business, and other factors as it relates to biogas and other biofuel products start – ups in the United States;

• First Fiscal Year:  $335,000
• Second Fiscal Year:  $650,000
• Third Fiscal Year:  $1.1 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location to launch Green Gas® Biogas Production Company, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for retailers of biogas and other biofuel in North Platte – Nebraska.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the biogas production business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in North Platte – Nebraska.

In summary, Green Gas® Biogas Production Company, Inc. will adopt the following sales and marketing approach to win customers over;

• Introduce our business by sending introductory letters alongside our brochure to biogas and other biofuel products retailers, factories, facility managers, hotels, households and key stake holders in and around North Platte – Nebraska
• Ensure that we have a biogas and other biofuel products in our distribution network at all times.
• Make use of attractive hand bills to create awareness business
• Position our signage / flexi banners at strategic places around North Platte – Nebraska

11. Publicity and Advertising Strategy

Even though our biogas production company is well structured and well located, we will still go ahead to intensify publicity for the business.

Green Gas® Biogas Production Company, Inc. has a long-term plan of opening distribution channels all around the state of Nebraska which is why we will deliberately build our brand to be well accepted in North Platte before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Green Gas® Biogas Production Company, Inc.;

• Place adverts on community – based newspapers, radio and TV stations
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around North Platte – Nebraska
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our biogas production company in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and distribution vans/trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Pricing is one of the key factors that give leverage to distribution companies and retailers, it is normal for retailers to purchase products from distribution companies that they offer cheaper prices. We will work towards ensuring that all our biogas and other biofuel products are distributed at highly competitive prices compared to what is obtainable in the United States of America.

• Payment Options

The payment policy adopted by Green Gas® Biogas Production Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Green Gas® Biogas Production Company, Inc. will make available to her clients;

• Payment via bank transfer
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via POS machines
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for biogas and other biofuel products purchase without any stress on their part.

13. Startup Expenditure (Budget)

From our findings, we were able to come with the areas we will spend our resources on and this is what it will cost us to set up Green Gas® Biogas Production Company, Inc. in the United of America;

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Production Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet tank facility cum mini depot in the total amount of $250,000.
• The total cost for production facility remodeling (construction of mini depot / tank far) – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $150,000
• The cost for Start-up inventory (stocking with biogas and other biofuel products raw materials et al) – $200,000
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs – $5,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost for the purchase of distribution tankers / trucks – $75,000
• The cost of launching a website – $600
• Miscellaneous – $10,000

We would need an estimate of $1.2 million to successfully set up our biogas production company in North Platte – Nebraska.

Generating Funds/Startup Capital for Green Gas® Biogas Production Company, Inc.

Green Gas® Biogas Production Company, Inc. is a private business that is owned and financed by Sutton Jones and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from the bank

N.B: We have been able to generate about $500,000 (Personal savings $450,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $700,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Green Gas® Biogas Production Company, Inc. is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Green Gas® Biogas Production Company, Inc. will adopt the use of payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better.

Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff members. We know that if we implement our business strategies, we will grow our biogas production business beyond North Platte – Nebraska to other states in the U.S in record time.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of mini depot facility and construction of production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed machines, technology, furniture, reservoirs, computers, electronic appliances, office appliances and CCTV: In progress
• Purchase of distribution tankers/trucks: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Establishing business relationship with biogas and other biofuel products distributors all across the United States of America: In Progress

How to Create a Business Plan for Biogas Production: Key Insights

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Launching a successful biogas production venture requires meticulous planning and preparation. Before embarking on the business plan, entrepreneurs must navigate a 9-step checklist to assess market demand, identify suitable organic waste sources, and secure the necessary infrastructure and regulatory approvals. By thoroughly evaluating the feasibility, technology requirements, and potential revenue streams, businesses can lay the groundwork for a comprehensive and strategic biogas production plan.

Steps Prior To Business Plan Writing

Assess Market Demand and Feasibility of Biogas Production

Embarking on a biogas production venture requires a thorough assessment of market demand and the overall feasibility of the project. This crucial first step sets the foundation for a well-crafted business plan that aligns with the needs of potential customers and the viability of the industry.

To assess market demand, start by analyzing the local and regional waste management landscape. Identify the primary sources of organic waste, such as agricultural byproducts, food processing waste, and municipal solid waste. Evaluate the current disposal methods for these waste streams and the associated challenges, such as landfill constraints or environmental concerns.

• Engage with local authorities, waste management companies, and industry associations to gather comprehensive market data on organic waste volumes, disposal costs, and potential demand for biogas solutions.

Next, assess the potential demand for biogas as an energy source. Examine the local energy landscape, including the availability and cost of traditional energy sources, as well as any government incentives or policies that may favor renewable energy alternatives. Determine the potential customer base for biogas, such as industrial facilities, power plants, or even residential consumers.

Analyze the competitive landscape by researching existing biogas producers, their market share, and the unique value propositions they offer. Identify any untapped market segments or geographic areas that your biogas production venture could potentially target.

• Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to gain a comprehensive understanding of the market dynamics and your business's positioning.

Evaluating the feasibility of biogas production involves assessing the technical, financial, and operational aspects of the project. Determine the available organic waste sources and their suitability for biogas production, considering factors such as composition, consistency, and accessibility. Estimate the potential biogas yield from these waste streams, taking into account any pre-processing or treatment requirements.

Analyze the financial viability of the project by projecting the capital expenditures (CAPEX) and operational expenses (OPEX) associated with the biogas production facility. Consider factors such as equipment costs, land acquisition, construction, and ongoing maintenance and labor expenses. Examine potential revenue streams, including the sale of biogas, any byproducts, and potential government incentives or subsidies.

• Engage with technology providers and industry experts to obtain accurate cost estimates and performance data for the selected biogas production technology.

By thoroughly assessing market demand and the feasibility of biogas production, you can develop a robust business plan that aligns with the needs of the market and the capabilities of your venture. This comprehensive analysis will help you make informed decisions and lay the groundwork for a successful biogas production enterprise.

Identify Suitable Organic Waste Sources and Suppliers

The first critical step in developing a successful biogas production business plan is to identify suitable organic waste sources and reliable suppliers. Biogas production relies on the availability of organic waste feedstock, which can come from a variety of sources, including agricultural waste, food processing byproducts, municipal solid waste, and livestock manure.

When assessing potential organic waste sources, it's important to consider factors such as the quantity , quality , and consistency of the waste stream. Ideally, you want to secure a steady and reliable supply of organic waste that meets the specific requirements of your biogas production technology.

One of the key advantages of biogas production is its ability to divert organic waste from landfills and turn it into a valuable renewable energy resource. By partnering with local municipalities, agricultural producers, and food processing facilities, you can tap into a variety of organic waste streams and establish a diverse supplier network.

It's also crucial to evaluate the logistics and transportation requirements for the organic waste feedstock. Proximity to the biogas production site and the availability of efficient collection and delivery systems can significantly impact the overall cost and viability of your operation.

• Conduct a comprehensive survey of your local and regional organic waste sources, including their volume, composition, and seasonal variations .
• Engage with potential suppliers to assess their willingness and ability to provide a consistent and reliable supply of organic waste.
• Explore opportunities to establish long-term supply agreements or contracts with organic waste generators to ensure a stable feedstock for your biogas production facility.

By carefully identifying and securing suitable organic waste sources and suppliers, you can lay the foundation for a robust and sustainable biogas production business. This step not only ensures a reliable feedstock but also contributes to the overall environmental and economic viability of your venture.

Determine Appropriate Biogas Technology and Equipment Requirements

Selecting the right biogas technology and equipment is a critical step in developing a successful biogas production business plan. The choice of technology will depend on various factors, including the type and quantity of organic waste available, the desired biogas output, and the specific energy and operational requirements of the project.

One of the most common biogas technologies is the anaerobic digestion process, which involves the breakdown of organic matter by microorganisms in the absence of oxygen. This process can be carried out in a variety of reactor types, such as continuous stirred-tank reactors (CSTRs), plug-flow reactors, and upflow anaerobic sludge blanket (UASB) reactors.

When evaluating biogas technology options, it's important to consider factors such as feedstock characteristics , digester design and configuration , biogas yield and composition , and energy efficiency . For example, a CSTR system may be suitable for a diverse range of organic waste feedstocks, while a plug-flow reactor may be more efficient for more homogeneous substrates.

• Assess the availability and characteristics of organic waste sources, such as agricultural residues, food waste, or animal manure, to determine the most suitable biogas technology.
• Evaluate the energy and operational requirements of the biogas production process, including the need for pre-treatment, mixing, heating, and storage.
• Consider the scalability and flexibility of the chosen biogas technology to accommodate future growth and changes in feedstock composition or quantity.

In addition to the biogas production technology, the selection of appropriate equipment is crucial for the overall efficiency and performance of the biogas plant. This includes components such as feedstock handling and preparation systems , digester tanks and components , gas cleaning and upgrading equipment , and power generation or CHP (combined heat and power) units .

When selecting equipment, factors such as capacity, durability, and maintenance requirements should be carefully evaluated. It's also important to ensure that the equipment is compatible with the chosen biogas technology and meets any relevant regulatory standards or certifications.

• Engage with experienced biogas technology providers and equipment manufacturers to understand the available options and their suitability for your specific project requirements.
• Conduct thorough research and cost-benefit analyses to determine the most appropriate and cost-effective equipment for your biogas production facility.
• Develop a comprehensive maintenance and servicing plan to ensure the longevity and optimal performance of the biogas production equipment.

By carefully evaluating and selecting the right biogas technology and equipment, GreenFuel Innovations can ensure the efficient and sustainable production of biogas from organic waste sources, contributing to its overall business objectives and environmental impact.

Evaluate Site Location and Infrastructure Needs

Selecting the right location for your biogas production facility is a critical step in the business planning process. The site location can significantly impact the feasibility, operational efficiency, and long-term sustainability of your biogas venture. When evaluating potential sites, consider the following key factors:

• Proximity to Organic Waste Sources: Identify sites that are in close proximity to reliable suppliers of organic waste, such as agricultural operations, food processing plants, or municipal waste management facilities. Minimizing the distance between the waste source and the biogas plant can reduce transportation costs and greenhouse gas emissions.
• Access to Utilities and Infrastructure: Ensure that the site has access to the necessary utilities, such as electricity, water, and natural gas, as well as the required infrastructure, including roads, transport links, and waste management facilities. This will help to minimize the capital expenditures required for site development and ongoing operations.
• Land Availability and Zoning Regulations: Assess the availability of suitable land for the biogas plant, including the size and topography of the site. Additionally, ensure that the land is zoned for industrial or agricultural use and that the necessary permits and approvals can be obtained for the proposed biogas production facility.
• Environmental Considerations: Evaluate the potential environmental impact of the biogas plant, including factors such as noise, odor, and emissions. Ensure that the site is located in an area that minimizes the potential for environmental disruption and complies with all relevant regulations and guidelines.
• Consider the potential for future expansion and growth when evaluating site locations for your biogas production facility.
• Engage with local authorities and regulatory bodies early in the site selection process to understand any specific requirements or restrictions that may apply to the proposed location.

In addition to the site location, it is also important to carefully assess the infrastructure requirements for the biogas production facility. This includes evaluating the need for specialized equipment, such as anaerobic digesters, gas upgrading systems, and storage tanks, as well as the necessary support infrastructure, such as feedstock handling systems, wastewater treatment facilities, and grid interconnection. Accurately estimating the capital expenditures and operational costs associated with the required infrastructure is essential for developing a robust business plan and securing the necessary funding.

By thoroughly evaluating the site location and infrastructure needs, you can ensure that your biogas production facility is positioned for long-term success, with efficient operations, minimal environmental impact, and the ability to scale and grow as demand for your renewable energy products increases.

Analyze Regulatory Environment and Obtain Necessary Permits

Navigating the regulatory landscape is a critical step in the biogas production business plan. Biogas facilities are subject to a range of regulations and permitting requirements at the local, state, and federal levels. Failing to comply with these regulations can result in significant delays, fines, or even the inability to operate your biogas facility.

The first step in this process is to thoroughly research the applicable regulations and permitting requirements in your area. This may include environmental regulations, zoning laws, air quality standards, waste management rules, and safety protocols. Depending on the location and scale of your biogas operation, you may need to obtain permits from multiple government agencies, such as the Environmental Protection Agency (EPA), the Department of Agriculture, or the local municipal authorities.

One of the key regulatory considerations for biogas production is the Clean Air Act (CAA) . The CAA sets limits on air pollutants, including methane, which is a potent greenhouse gas. Biogas facilities must comply with these regulations and may need to install emission control equipment or obtain air quality permits to operate.

Another important regulatory area is waste management . Biogas production often involves the processing of organic waste, which is subject to strict regulations governing the handling, storage, and disposal of such materials. Depending on the type and source of the waste, you may need to obtain permits or approvals from waste management authorities.

• Familiarize yourself with the relevant regulations and permitting requirements in your local area, as these can vary significantly by region.
• Engage with local authorities early in the planning process to understand the specific requirements and timelines for obtaining necessary permits.
• Consider hiring a professional consultant or legal advisor who has experience navigating the regulatory landscape for biogas production facilities.

In addition to environmental and waste management regulations, biogas production facilities may also need to comply with occupational health and safety standards , such as those set by the Occupational Safety and Health Administration (OSHA). These regulations cover worker safety, hazardous material handling, and emergency response procedures.

Obtaining the necessary permits and approvals can be a time-consuming and complex process, but it is essential for the success and long-term viability of your biogas production business. By proactively addressing the regulatory environment and securing the required permits, you can minimize delays, avoid costly fines, and ensure that your biogas facility operates in compliance with all applicable laws and regulations.

Estimate Capital Expenditures and Operational Costs

Developing a comprehensive understanding of the capital expenditures and operational costs associated with biogas production is a critical step in creating a robust business plan. This analysis will help you determine the financial feasibility of your project and identify areas where you can optimize costs.

The capital expenditures for a biogas production facility can vary significantly depending on the scale of the operation, the chosen technology, and the specific infrastructure requirements. Typically, the major cost components include:

• Anaerobic digester system and associated equipment: $500,000 to $5 million depending on the size and complexity of the system
• Site preparation and infrastructure: $100,000 to $1 million for land acquisition, site development, and utility connections
• Biogas upgrading and storage equipment: $200,000 to $2 million for compression, purification, and storage of the biogas
• Grid interconnection and power generation (if applicable): $50,000 to $500,000 for electrical infrastructure and equipment

In addition to the initial capital investments, the operational costs of running a biogas production facility must also be carefully considered. These ongoing expenses can include:

• Feedstock (organic waste) acquisition and transportation: $20 to $50 per ton of feedstock
• Labor and maintenance: $50,000 to $500,000 per year, depending on the facility size and automation level
• Utilities (electricity, water, etc.): $10,000 to $100,000 per year
• Regulatory compliance and permits: $5,000 to $50,000 per year
• Insurance and other administrative costs: $10,000 to $100,000 per year
• Explore potential government incentives, grants, or tax credits that may help offset the capital and operational costs of your biogas production facility.
• Conduct a sensitivity analysis to understand how changes in key cost variables (e.g., feedstock prices, energy costs, labor rates) could impact the overall financial viability of your project.

By carefully analyzing the capital expenditures and operational costs associated with biogas production , you can develop a comprehensive financial model that will inform your business plan and help you make informed decisions about the feasibility and profitability of your project.

Explore Potential Revenue Streams and Funding Options

Developing a comprehensive understanding of potential revenue streams and funding options is a critical step in crafting a robust business plan for your biogas production venture. By exploring these avenues, you can identify the most viable and sustainable sources of income and capital to support your operations and drive long-term growth.

One of the primary revenue streams for a biogas production business is the sale of the renewable natural gas (RNG) generated from organic waste. The global biogas market is projected to reach $33.81 billion by 2027 , driven by the increasing demand for clean energy solutions and the growing focus on reducing greenhouse gas emissions. Biogas producers can sell the RNG to local utilities, transportation fuel providers, or even directly to industrial and commercial customers, depending on the scale and capabilities of their operation.

• Explore partnerships with local municipalities or waste management companies to secure long-term supply agreements for organic waste feedstock, which can provide a stable revenue stream.

In addition to the sale of RNG, biogas producers can also generate revenue from the sale of byproducts, such as digestate, which can be used as a nutrient-rich organic fertilizer. The global digestate market is expected to reach $5.6 billion by 2027 , presenting an additional revenue opportunity for biogas producers.

When it comes to funding options, biogas production projects can leverage a variety of sources, including government grants, tax incentives, and private investment. Many countries and regions offer financial incentives and subsidies to encourage the development of renewable energy projects, including biogas production. Additionally, venture capital firms, private equity investors, and impact investors are increasingly interested in sustainable energy solutions like biogas, providing potential funding opportunities.

• Research and apply for relevant government grants and tax credits that can help offset the capital expenditures and operational costs associated with your biogas production facility.
• Explore crowdfunding platforms or community-based financing options to engage local stakeholders and secure additional funding for your project.

Lastly, biogas producers can also explore project financing options, where the project's future cash flows are used as collateral to secure loans or other debt financing. This approach can help minimize the upfront capital requirements and spread the financial burden over the project's lifetime.

By thoroughly exploring and evaluating potential revenue streams and funding options, you can develop a comprehensive financial strategy that supports the long-term viability and growth of your biogas production business.

Assemble a Team with Relevant Expertise and Experience

Building a strong and capable team is crucial for the success of your biogas production venture. Assembling the right mix of expertise and experience can help you navigate the complexities of the biogas industry, overcome challenges, and achieve your business goals.

When putting together your biogas production team, consider the following key roles and responsibilities:

• Project Manager: Oversee the overall project, coordinate different team members, and ensure timely completion of tasks.
• Biogas Technology Specialist: Provide expertise in the selection, installation, and operation of biogas production equipment and systems.
• Waste Management Specialist: Identify suitable organic waste sources, manage logistics, and ensure a steady supply of feedstock.
• Environmental Compliance Officer: Ensure the biogas facility meets all relevant environmental regulations and obtains necessary permits.
• Financial Analyst: Develop financial projections, secure funding, and monitor the financial performance of the biogas operation.
• Sales and Marketing Specialist: Identify potential customers, negotiate contracts, and promote the biogas products and services.

When recruiting team members, look for individuals with a proven track record in their respective fields. Ideally, your team should have a mix of technical expertise, industry knowledge, and business acumen. Consider hiring experienced professionals or partnering with reputable organizations to leverage their expertise.

• Offer competitive compensation packages and opportunities for professional development to attract and retain top talent.
• Establish clear roles, responsibilities, and reporting structures to ensure effective collaboration and decision-making within the team.
• Encourage continuous learning and knowledge-sharing among team members to foster a culture of innovation and problem-solving.

By assembling a dedicated and well-rounded team, you can increase the chances of successfully implementing your biogas production business plan and achieving your desired outcomes. The expertise and experience of your team members will be invaluable in navigating the complexities of the biogas industry and driving the growth and success of your venture.

Develop a Strategy for Scalability and Growth

As you embark on your biogas production venture, it's crucial to establish a strategic plan for scalability and growth. This will ensure that your business can adapt to changing market demands, technological advancements, and regulatory environments, positioning you for long-term success.

One of the key considerations in developing a scalability strategy is identifying the optimal size and capacity of your biogas production facility. This will depend on factors such as the available organic waste sources, the projected market demand, and the technological capabilities of your chosen biogas conversion system. Carefully analyze these elements to determine the initial scale of your operations and the potential for future expansion.

• Conduct market research to project the long-term demand for biogas in your target region, taking into account factors such as population growth, energy consumption trends, and environmental regulations.
• Assess the availability and reliability of organic waste suppliers to ensure a consistent feedstock for your biogas plant, and consider the potential for securing additional sources as your business grows.
• Evaluate the scalability of your chosen biogas technology, ensuring that it can accommodate increased production volumes without significant infrastructure or operational changes.

As part of your growth strategy, consider diversifying your revenue streams beyond the sale of biogas. Explore opportunities to generate additional income from the byproducts of the biogas production process, such as the sale of organic fertilizers or the provision of waste management services to local communities. This can help to strengthen the financial resilience of your business and open up new avenues for expansion.

Effective team building and talent management will also be crucial to your scalability and growth plans. Assemble a diverse team of experts in areas such as biogas technology, project management, regulatory compliance, and business development. Invest in the ongoing training and development of your employees to ensure that your organization has the necessary skills and knowledge to adapt to changing industry dynamics.

• Establish clear career development paths and incentive structures to attract and retain top talent, fostering a culture of innovation and continuous improvement.
• Leverage strategic partnerships and collaborations with universities, research institutions, and industry associations to stay abreast of the latest advancements in biogas technology and best practices.
• Develop a comprehensive succession plan to ensure a smooth transition of leadership and maintain the continuity of your biogas production operations as your business grows.

Finally, it's essential to continuously monitor and adapt your business strategy to address evolving market conditions, technological changes, and regulatory updates. Regularly review your key performance indicators, seek feedback from customers and stakeholders, and be prepared to pivot your approach as needed to capitalize on new opportunities and mitigate emerging risks.

By implementing a well-crafted strategy for scalability and growth, you can position your biogas production business for long-term success, ensuring that it remains agile, innovative, and responsive to the dynamic needs of the renewable energy and waste management industries.

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An Overview of Biogas Production: Fundamentals, Applications and Future Research

2019, International Journal of Energy Economics and Policy

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Biogas, a renewable source of energy has been the focus of research for the past decades. It is simple to produce and environmentally friendly. Due to the current increase in population, emission of greenhouse gases and the UN concern to achieve 100% renewable energy globally by 2050, the use of biogas for electricity and for combined heat and power is the surest way forward. Anaerobic digestion thus far has been the surest way to achieve in the production of this renewable energy. The process, however, involves the consortium of microorganisms to breakdown feedstocks such as food waste and agricultural biomass through a complex pathway to generate mainly the methane and carbon dioxide. Feedstocks utilized by researchers from the past decades include water hyacinth, wood chips, corn silage, food wastes, and sugarcane bagasse. Process parameters that influence the anaerobic digestion process include pH, temperature, organic loading rate, feedstock type, mixing, hydraulic retention time, and the carbon to nitrogen ratio. This paper reviews the scope of biogas production from the anaerobic digestion process and details the various parameters affecting the process.

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In 21 st century, sustainable development has a colossal and crucial role to play in global environmental apprehensions such as GHG emission from fossil fuel combustion, damage to the environment by the haphazard disposal of waste. Under these current circumstances, biogas production technology has flourished and has proved to be a meritorious success story today. Biogas is produced by microbial anaerobic digestion of organic wastes such as animal waste, plant material, sewage crops etc. Biogas principally comprises of 50% -60% of methane and 25%-45% of CO2. In the recent past, research on this technology has been limited to some extent due to the complex phenomenon existed with various factors and parameters influencing it. Optimization of parameters like organic loading rate, pH, C/N ratio, total solids, volatile solids content hydraulic retention time and temperature of the digester will have a synergistic effect on the yield. Adopting the principle of co-digestion, for biogas pr...

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Anaerobic digestion of energy crops, residues, and wastes is of increasing interest in order to reduce the greenhouse gas emissions and to facilitate a sustainable development of energy supply. Production of biogas provides a versatile carrier of renewable energy, as methane can be used for replacement of fossil fuels in both heat and power generation and as a vehicle fuel. For biogas production, various process types are applied which can be classified in wet and dry fermentation systems. Most often applied are wet digester systems using vertical stirred tank digester with different stirrer types dependent on the origin of the feedstock. Biogas is mainly utilized in engine-based combined heat and power plants, whereas microgas turbines and fuel cells are expensive alternatives which need further development work for reducing the costs and increasing their reliability. Gas upgrading and utilization as renewable vehicle fuel or injection into the natural gas grid is of increasing interest because the gas can be used in a more efficient way. The digestate from anaerobic fermentation is a valuable fertilizer due to the increased availability of nitrogen and the better short-term fertilization effect. Anaerobic treatment minimizes the survival of pathogens which is important for using the digested residue as fertilizer. This paper reviews the current state and perspectives of biogas production, including the biochemical parameters and feedstocks which influence the efficiency and reliability of the microbial conversion and gas yield.

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The production of biogas from anaerobic digestion (AD) of residual agro-food biomasses represents an opportunity for alternative production of energy from renewable sources, according to the European Union legislation on renewable energy. This review provides an overview of the various aspects involved in this process with a focus on the best process conditions to be used for AD-based biogas production from residual agro-food biomasses. After a schematic description of the AD phases, the biogas plants with advanced technologies were described, pointing out the strengths and the weaknesses of the different digester technologies and indicating the main parameters and operating conditions to be monitored. Subsequently, a brief analysis of the factors affecting methane yield from manure AD was conducted and the AD of fruit and vegetables waste was examined. Particular attention was given to studies on co-digestion and pre-treatments as strategies to improve biogas yield. Finally, the se...

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A B S T R A C T Globally, there is increasing awareness that renewable energy and energy efficiency are vital for both creating new economic opportunities and controlling the environmental pollution. AD technology is the biochemical process of biogas production which can change the complex organic materials into a clean and renewable source of energy. AcoD process is a reliable alternative option to resolve the disadvantages of single substrate digestion system related to substrate characteristics and system optimization. This paper reviewed the research progress and challenges of AcoD technology, and the contribution of different techniques in biogas production engineering. As the applicability and demand of the AcoD technology increases, the complexity of the system becomes increased, and the characterization of organic materials becomes volatile which requires advanced methods for investigation. Numerous publications have been noted that ADM1 model and its modified version becomes the most powerful tool to optimize the AcoD process of biogas production, and indicating that the disintegration and hydrolysis steps are the limiting factors of co-digestion process. Biochemical methane potential (BMP) test is promising method to determine the biodegradability and decomposition rate of organic materials. The addition of different environmentally friendly nanoparticles can improve the stability and performance of the AcoD system. The process optimization and improvement of biogas production still seek further investigations. Furthermore, using advanced simulation approaches and characterization methods of organic wastes can accelerate the transformation to industrializations, and realize the significant improvement of biogas production as a renewable source and economically feasible energy in developing countries, like China. Finally, the review reveals, designing and developing a framework, including various aspects to improve the biogas production is essential.

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Biogas is obtained from the breakdown of biomass by microorganisms and bacteria in the absence of oxygen. Biogas is considered a renewable source of energy, similar to solar energy and wind energy. Biogas can be produced from biomass or bio-waste; thus, it is environmentally friendly. Biogas is obtained in a suspended monoxide decomposition process by anaerobic bacteria or in a fermentation process of decomposable materials such as agricultural manure, sewage, municipal waste, green waste (gardens and parks), plant material and agricultural products. Biogas is a renewable natural energy source that leaves effective effects on nature and industries. This gas is produced from the decomposition of organic materials, including animal manure, food waste and sewage. Fertilizers and waste produce biogas through anaerobic digestion (ie without the presence of oxygen). Biogas is a mixture of gases generated by decaying biodegradable material without the presence of oxygen. Its main contents are 50–70 % of methane (CH4) by volume, 30–50 % of carbon dioxide (CO2), and traces of other gases, like hydrogen sulfide (H2S) and water vapor (H2O). CO2, H2S, and water vapor content in biogas may affect the performance and life of the energy conversion devices; consequently, their removal before end-use is essential for improving the quality of biogas. This combination is an ideal option for making renewable energy. The most important advantages of biogas (production of energy, reduction of the amount of discarded waste, reduction of pathogens, conversion of waste containing organic matter into high quality fertilizer, protection of vegetation, soil, water, increasing productivity in the field of livestock and agriculture) and It is also one of the disadvantages of biogas (incomplete and small technologies, containing impurities, the effect of temperature on biogas production, unsuitable for urban and dense areas, not affordable). For economical use of biogas, the fermentation process can be carried out under controlled conditions in a relatively simple device called a digestion reservoir. This review summarizes the current state-of-the-art and presents future perspectives related to the anaerobic digestion process for biogas production. Moreover, a historical retrospective of biogas sector from the early years of its development till its recent advancements give an outlook of the opportunities that are opening up for process optimization.

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On 15 June, an online discussion took place as a follow-up activity to the webinar on ' Biogas from Bio-Waste ', picking up on the questions asked about financing options and business models for new biogas plants. The specific objectives were to explain the setup and the cost implications of different types of biogas plants and what this means for their business models and financing options .

As separate collection of bio-waste from households becomes mandatory in 2023, a 'new' organic fraction becomes available as input material for biogas plants. Municipalities, as owners of this waste fraction, must decide what shall happen to it. Among the treatment options are biogas and composting, whereas composting is cheaper, but biogas allows to also generate renewable energy, reduce greenhouse gas emissions and creates more local employment, adding more value overall.

Understanding the business model behind new plants helps public authorities to use public funding effectively , not funding entire plants, but only funding enough so that private sector investors have a natural interest in investing in new plants because the economic framework conditions are showing they can make a profit.

Biogas plants that treat municipal bio-waste are more expensive to run than agricultural biogas plants because the input material is usually a bit contaminated with e.g. plastics and must be cleaned prior to anaerobic digestion. Such plants must be financed with a combination of revenue for the treatment of waste (called 'gate fee' and paid per ton of bio-waste treated; payment to be arranged by the municipality as owner of the waste, financed through fees for waste collection from households, and can be co-financed by regional funds under conditions), and a revenue for the sale of renewable gas or renewable electricity and heat . 

Regions should start with a potential analysis to assess the available bio-waste and other feedstock for new biogas plants.

Regions should plan for new biogas plants in the entire territory to avoid funding too many plants at once that will later compete for a limited amount of available feedstock.

Potential analysis should carefully distinguish between theoretical potential and realistically achievable volume of separately collected bio-waste , especially when introducing separate collection of bio-waste from households for the first time.

Regional waste management planning and regional renewable energy planning should be integrated , as in Denmark (Min. ENV and Min. ENERGY or the equivalents at regional level should cooperate).

When tendering out biogas plants, municipalities or regions should offer long-term contracts for supply of bio-waste and gate fee and offer long-term uptake agreements for the renewable energy produced (min. 15 years). 

Village-level bioenergy plants linked to a district heating supplying the village and local industry with thermal energy is a great concept that combines biogas and heating of buildings. Old oil-based or inefficient coal and biomass-based heatings can be replaced by an energy efficiency district heating using renwable heat from biogas plants. The business model for the distrinct heating should be de-coupled from the busines model of the biogas plant but can be planned together. District heating is economically interesting for villages with 500-1500 inhabitants and becomes cheaper where houses are concentrated or are multi-apartment houses, but it can work even with 10 households connected. 

As it is unusual that demand for such village-based biogas plants and new district heating emerges from the villages by itseld, it is advised to use intermediaries to assess the potential and to advice rural municipalities about their options. 

Under the cohesion policy of the European Union, regional funds are available to co-finance the construction costs and the operation costs of such new plants that are in line with the new Waste Framework Directive and the Circular Economy Package. Moreover, biogas clusters and the development of commercial products such as fertilisers from biogas production can be supported.

Depending on the region’s socio-economic wealth, co-financing rates vary. But even for more developed regions, public funding is available via the European Regional Development Fund (ERDF) . The recently announced recovery fund is making billions of additional money available that must be spent by 2023, with this period’s funding for operational programmes. But biogas plants of all types are also eligible for support in the upcoming period (2021-2027) and should be considered by programming committees for the next general generation of regional, national and cross-border programmes right now.

The presentations are available below

• Document Presentation by Astrid Severin, Thematic Expert of environment and resource efficiency.
• Document Presentation  by Katharina Krell, Thematic Expert of low-carbon economy.
• Document Presentation by Volker Kromrey, Programme Director Energy Transition of Bodensee Stiftung / Lake Constance Foundation
• Document Presentation by Thorsten Kohlisch, Policy Learning Platform project manager. 

Other resources 

• Watch the webinar on biogas from organic waste  
• Policy brief on Document sustainable waste management in a circular economy
• Policy brief on supporting local bioenergy development
• Access the Danish waste and bioenergy strategy