Business: Producing biogas in a large-scale and providing biogas plant installation services.
Business type: Energy production, science, and technology, innovation.
Most suitable for: Business owners with huge capitals or people who know how to arrange crowd funding.
Biogas is a fuel used for cooking. Biogas is produced primarily from cow dung or vegetable waste. Nearly 14% of the rural India uses biogas as a substitute for LPG. Fortunately setting up a biogas unit is very simple. Nowadays, you can get ready-made biogas installation units manufactured from different companies which can directly be installed in homes.
What are the business plans?
There are two business opportunities here. This business needs a lot of capital and land.If you have either of them, then it is a suitable business for you. Manufacturing small biogas units seems to be a very good business idea, but producing biogas in a power plant and selling it can be profitable too. Let’s look into both of the business opportunities.
1. Small biogas manufacturing units
Biogas production has one of the simplest basic model systems. Many companies offer services where they manufacture different parts and join them together to form a biogas plant during the installation. Some companies manufacture a single biogas unit and sell it directly to the customers. You can choose either of the methods or both of them. All you need to do is to manufacture such units and to sell directly to your customers.
Many people complain that they don’t have a regular supply of the raw materials like cow dung or vegetable waste. It is actually possible to regulate the raw materials to them and charge an extra amount of money for that service.
This is a stable and better plan for business compared to the next one which is purely experimental.
2. Biogas production in huge containers (Bio-CNG)
This is a very expensive and a bit experimental business project. Such projects are in action in many parts of the world. I would NOT recommend this if you are focussing on the profit.
Producing biogas on a large scale is not a very big problem. But, purifying and liquefying the final product is a very expensive and cumbersome process. It can only work if you have a stable and large consumer group.
The problem with the biogas is, it is highly corrosive and it has a very large amount of good for nothing gas CO2. Some companies produce bio-CNG from these plants and
A research team in Germany says that if we can remove CO2 and H2S in an economical way, then it can serve as the best fuel alternative to any petroleum derived fuels. In fact, a company called Mahindra in India has set up a huge bio-CNG power plant where they produce biogas and process it to make bio-CNG for vehicles, cooking etc…
I don’t know about the economic side of such huge power plants, but I’m optimistic about the technology involved. Try contacting the people involved in this business.