SWOT Analysis

IHK, Düsseldorf, 06 November 2013
Indian Biogas Association (iba)
“Current trends and developments for biogas in India”
Gaurav Kedia,
Chairman, iba
MD, Arka BRENStech Pvt. Ltd.
www.biogas-india.com
Structure
IBA and Biogas in India - an introduction

Biogas potential and present scenario
Biogas: A need for Indian rural and Industrial sector
Socio-economic model of Biogas
Financial analysis of Biogas based business model
Challenges for Biogas
Indian Biogas Association
The association was founded in 2011 and is

now mushrooming. The sole motto of the
association is “propagating Biogas in a
sustainable way”.
Award, Recognition….
The 2014 Global Green Award
Renewable energy country attractiveness indices
“Plans to make India an emerging bio-economy have led to talks with

the US Department of Energy on creating a biomass ‘roadmap',
similar to that employed by China.”
Total biomass potential in India is estimated at more than 70

gigawatt (GW)”
- E&Y, 2012, URL: goo.gl/4Ghkw
Bio Gas Technology - Quick facts
• Biogas is produced by the anaerobic decomposition of

Principle organic matter
• Flexibility in scale of system is possible.

Capacity Modularization leads to easily expandability.
Area Required • Customized solution can be found for Biogas plant
Period of • The system functions for 365 days a year on 24 hrs

Functioning basis
• System can be used for thermal application, vehicle

Biogas utility filling and power generation
Utilization of Biogas
BIOGAS
Drying, Gas conditioning with or

Desulfurization without CO2 separation
Reformation
(possibly)
Boiler CHP Compression Filling station Fuel cell
Heat Electricity & Bottling or Fuel Electricity

Heat gas grid &heat
Substitute
for LPG or
nature gas
Biogas in India – An Analysis
Project Uniqueness
Development of the number of biogas plants and the total

installed electric output in MW as of 11/2012
Challenges
Finance
Energy
Technical
management
Challenges Social
O&M engineering
Cost
Policy
Indian Biogas Scenario
Scattered market
No established player at national level
Market needs someone offering end to end solution
Experienced and skilled workforce is lacking
Government active intervention is needed
Promotion of organic crops is lacking
Different approach is needed for small, medium and large
scale biogas plant promotion
Supply chain management is to be streamlined
Substrate from Agricultural, Urban and Industrial origin
Cow Dung, poultry litter

Agricultural residues as rice
straw, banana stem, maize
stalks
Sugar mill press mud,
Distilleries spent wash, Sago
plant effluent
Municipal Solid Waste,
slaughter house waste,
vegetable market waste,
kitchen waste
Silage from agricultural crops
as Napier grass, Sugar beet,
Sugar cane, Maize
Professional Feedstock Storage
Available Substrates potential in India
Cattle dung alone can generate ~4.9 X 107 m3 (~5000 MW) of

biogas from 980 million tones produced annually in India (ref:
CRDT, IIT-Delhi)
Only ~5% of the potential is utilized till date that too in a

decentralized manner and in unorganized sector
Biogas Potential (in MW)
94 65 Sugar
69
363 Pulp and paper
Starch
Distillery
503
58 Milk processing
129 Slaughterhouse
Poultry
Small biogas plant upto 85 Ncum per day biogas generation
Financial Analysis
1.8-2.1 Units of Electricity
INR 14.7 @ INR 7/KWh*

(Euro 0.17)
1 Ncum of Biogas 0.4 Kg of Compressed Biogas
INR 24 @ INR 60/Kg*

(Euro 0.29)
INR 5 @ INR 5/Ncum
(Euro 0.06)
* CAPEX & OPEX almost similar for both type of plants
Not to forget – Biofertilizer is an intrinsic part of revenue

for Biogas business!
Biofuels in Comparison
Biogas upgradation plants identified by IEA Bioenergy Task 37
Annual Biogas Generation
Biogas in Million NCum

Others
MW
Tanneries 300 Ncum/hr, 3000 Nos, Potential sites: 159
Paper 300 Ncum/hr, 600 Nos, Potential sites: 210
STPs 300 Ncum/hr, 300 Nos
Distillery 500 Ncum/hr 320 Nos
0 200 400 600 800 1000 1200 1400
Full Market Potential ~ USD 3 billion

Target Market Potential ~ USD 1.2 billion
Annual Biogas 2000 million NCum
Annual CBG potential 900 million kgs
Small CBG Demostration plants sanctioned by MNRE
Warana Bio-CNG Project
Highlights
• Developed on a BOOT (Build, Own, Operate and Transfer) basis

• Daily capacity of approximately 100 tons, or 35,000 annual tons, of
sugarcane waste (pressmud)
• Daily production of approximately 7,000 to 9,000 kg’s of Bio-CNG per day
• PESO (Petroleum and Explosives Safety Organization) License for storage
and filing of Bio-CNG in high pressure cylinders
• Daily production of organic manure/soil conditioner after further
processing for commercial sale
• NOCA (National Organic Certification Association) approved organic
manure for further sale to farmers
• MNRE (Ministry of New and Renewable Energy) approved investment
subsidy received in early 2013
• Substantial cost savings for industrial customers due to low-cost Bio-CNG
use
• Climate friendly – CO2 negative: Biogas-to-CNG conversation is the most
productive use of agricultural waste
Biogas, Enrichment and Bottling unit at Jaipur - I
Indigenously developed LPSA system
Biogas, Enrichment and Bottling unit at Jaipur - II
Buffer balloons
PEDA 1 MW Biogas Plant, Ludhiana
Organic fertilizer
Weighted average arable land of world:

~40% of land area, whereas India has
~61% of land area as arable land i.e.
1,697,000 square kilometers
Weighted average organic farming in

world: 242,708 hectares (Total =
21,358,307 hectares), whereas organic
farming in India is just 41,000 hectares
Chemical fertilizer consumption in India:

16,122,580 metric tons, which could be
reduced by the use of organic fertlizer
If youRates
thinkfororganic food is expensive,
organic fertilizer have you priced cancer lately?
can be veryfied
between 2500 – 7000 INR for- Joel Salatin, founder of Polyace farms
70% TDS
Fertilizer production I
Fertilizer production II
Modularisation
Modular Biogas plant in Germany
Ca. 45,000 m3 biogas/day,

Liquid fertilizer storage capacity ca. 48,000 m3
Comparison
Competitive Matrix
CBG – Compressed Biogas, LPG- Liquefied Petroleum Gas, CNG – Compressed Natural Gas
Biogas: A need for Indian rural and Industrial sector
• India has the natural resources.

• It provides a buffer against energy security concerns.
• It offers a hedge against fossil fuel price hikes and volatility.
• Off-grid energy supply can meet demand in un-served rural
areas.
• It can be supplied to both urban and rural poor.
• It can support attainment of India’s climate change goals.
• India aims to be a global leader in renewable energy!
Socio-economic model of Biogas: An example
Source: emapsworld.com www.biogas-india.com

Gobar Bank Concept
Project Uniqueness
• Bhitbhudrak model showed the importance of social

engineering along with technology to make biogas a success
• The design was kept very simple and yet robust
• The length of pipeline in the village is 2500 meters
• The villagers are facilitated with cleaner and consistent source
of energy for cooking
• Improved economics of village:
- By way of providing more earnings from dung
- By way of improved crop production because of use of
organic fertilizer
• Improved health and hygiene
• Providing smoke free atmosphere into kitchen
• Providing cleaner environment in to village
• Women empowerment
Financial Projections (I)
Illustrative Example of ROI Analysis for 85 and 170 m3/day Biogas Plant
30
40
25
Amount in Lacs
Amount in Lacs
20 Subsidy 90% 30
Subsidy 80%
15
20
10
10
5
2 4 6 8 10 12 1 2 3 4 5 6 7 8 9 10
Years Years
85 m3/day 170 m3/day
Without taking into account 90% and 80% government subsidy, investment in project
could be recovered within 10-12 year for 85 m3/day and 7-8 year for 170 m3/day
respectively.
Financial Projections (II)
2500
2000 CBG & SUC

CBG
Electricity
Amount in Lacs
1500
1000
500
0
1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Years
Project Cost
Project Cost with Grantt
Grantt
Cumulative Cash Accrual - CBG
Cash Accrual
SWOT Analysis
Strength Weakness
• Proven and reliable Technology; • Usual practice of using conventional
• Cheapest sustainable energy solution; energy;
• Energy efficient process; • Unsecured capital structure for the project;
• Business process expertise; • Untrained man power;
• PPP mode is possible; • Weak work culture and ethics across cross
• No shortage of human resources for section of Indian society;
Technology;
• The financial model can grow with the
increase in gas price;
Opportunity Threat
• Conventional fuel prices are going up; • Repeated break in supply chain;
• Shortage of gas supply; • Acceptance of organic manure;
• Gas grid is still not in place; • No proper policy framework
• Focus on enterprise customers opens a
new dimension in value creation, further
enhancing income for many stakeholders;
• Huge premium valuation for projects and
great opportunities to investors;
• Partnership as energy providers with small
– medium scale enterprises and other
industries will hedge income drivers
Summary
• Biogas: Versatile and efficient

• R&D: Improvement of efficiency and environmental performance of biogas
production and utilization
• For Biogas development, clear governmental policies are crucial
• Integration and compensation of biogas – technically, financially and
socially
• Trees can be retained
• Biogas is a quick, easily controlled fuel
• No smoke or smell (unless there is a leak)
• Clean pots
• Sludge is a better fertilizer than manure or synthetic fertilizers (and
is cheaper than manufactured products)
• Reduced pathogen transmission compared to untreated waste
Q&A
Commonsense is the realised sense of proportion!
Gaurav Kedia
E: info@biogas-india.com
M: +91-9983498904
A: #B-2/2392, Vasant Kunj,
New Delhi – 110 070, India

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What are the main benefits of biogas?

What are the main benefits of biogas?

What are some challenges to developing biogas in India?

What are some challenges to developing biogas in India?

IHK, Düsseldorf, 06 November 2013

Indian Biogas Association (iba)

“Current trends and developments for biogas in India”

IBA and Biogas in India - an introduction

The association was founded in 2011 and is

The 2014 Global Green Award

“Plans to make India an emerging bio-economy have led to talks with

Total biomass potential in India is estimated at more than 70

• Biogas is produced by the anaerobic decomposition of

• Flexibility in scale of system is possible.

Area Required • Customized solution can be found for Biogas plant

Period of • The system functions for 365 days a year on 24 hrs

• System can be used for thermal application, vehicle

Drying, Gas conditioning with or

Boiler CHP Compression Filling station Fuel cell

Heat Electricity & Bottling or Fuel Electricity

Development of the number of biogas plants and the total

Cow Dung, poultry litter

Cattle dung alone can generate ~4.9 X 107 m3 (~5000 MW) of

Only ~5% of the potential is utilized till date that too in a

1.8-2.1 Units of Electricity

INR 14.7 @ INR 7/KWh*

INR 24 @ INR 60/Kg*

Not to forget – Biofertilizer is an intrinsic part of revenue

Biogas in Million NCum

Paper 300 Ncum/hr, 600 Nos, Potential sites: 210

STPs 300 Ncum/hr, 300 Nos

Distillery 500 Ncum/hr 320 Nos

0 200 400 600 800 1000 1200 1400

Full Market Potential ~ USD 3 billion

• Developed on a BOOT (Build, Own, Operate and Transfer) basis

Indigenously developed LPSA system

Weighted average arable land of world:

Weighted average organic farming in

Chemical fertilizer consumption in India:

Ca. 45,000 m3 biogas/day,

• India has the natural resources.

Source: emapsworld.com www.biogas-india.com

• Bhitbhudrak model showed the importance of social

2000 CBG & SUC

• Biogas: Versatile and efficient

Commonsense is the realised sense of proportion!

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