FEASIBILITY REPORT

INSTALLATION OF BIO GAS PLANT ON COMMERCIAL BASIS

BRIEF DESCRIPTION:

Bio gas is a mixture of primarily methane and CO2, it also contains

traces of suphides, hydrogen and nitrogen. Biogas can be used as an
alternative of natural gas and can be produced from biomass by the
anaerobic digestion of organic matter. Biomass refers to the mass of
living organisms, including plants, animals, and microorganisms, or,
from a biochemical perspective, cellulose, lignin, sugars, fats, and
proteins.

Biogas differs from natural gas in that it is a renewable energy source

produced biologically through anaerobic digestion rather than a fossil
fuel produced by geological processes. Biogas is environmental friendly
and help in reducing pollution. Rural areas where natural gas facility is
not available, bio-gas can fulfill domestic requirements.
 PROCESS OF BIOGAS GENERATION:

Biogas is produced from An-aerobic Digestion which is a microbiological

process of decomposition of organic matter in absence of oxygen. The
main products of this process are biogas and digestate. Biogas is a
combustible gas and Digestate is the decomposed substrate, resulted
from the production of biogas. The sustainable cycle of biogas from An-
aerobic Digestion is follows;
 BIOGAS PLANT SIZES

Following sizes of biogas plants may be considered by SNGPL on

commercial basis;

1) Family size small biogas plants

Family size small bio gas plants (5 m3 to 10 m3) is available in market.
These plants are sufficient to fulfill the requirement of single home.

2) Community based biogas plants

Community based biogas plants may range from medium to high
depending upon the size of the community. Digester capacity ranges
from 100 m3 to 20,000 m3. It is apprised that 100 m3 Biogas plant has been
installed by SNGPL at Melovarkan, Sheikhupura which is currently
operational

3) Large scale biogas plants (Digester capacity > 35,000 m 3 )

Large scale biogas plants of digester capacity over 35000 m3 (1 MMCFD)
may be installed for supply of gas to SNGPL’s network .
 BIOGAS PLANT
SIZES
In Pakistan, biogas plants are mostly installed plants of small / medium
capacities. Following biogas plants were visited:

1. University of Lahore (2800 m 3 )

2. Bahadar Nagar, Okara (375 m 3 )

3. Crystalline Chemical, Sargodha (54000 m 3 , Raw material: Molasses)

4. Al-Rehman Garden , Phase-2 Lahore (Bismillah Energy Pvt Ltd, 5 MW from

rice husk)
 BIOGAS PLANT
SIZES
Salient features of aforementioned biogas plants are illustrated below;
Biogas plants
Description (
Family size Community based Large scale
Digester Capacity 5 to 10 m 3
100 m 3
16500 m 3
35000 m 3
Bio Gas (60%) produced per day 2 to 5 m 3 75 m3 14850 m 3 31500 m 3
Bio Gas (60%) produced per
60 to 150 m 3 2250 m 3 445500 m 3 945000 m 3
month
Bio Methane (97%) produced per
- 48.32 m 3 9568.30 m 3 20296.39 m 3
day

Bio Methane (97%) produced per 1449.74 m 3 217461 m 3 469716 m 3

-
Month 51.30 MMBTU 7695.02 MMBTU 16621.25 MMBTU
Bio Methane (97%) produced per
Year
. -
16913.66 m 3 2537048.97 m 3 5480025.77 m 3

(350 days) 598.5 MMBTU 89775.26 MMBTU 193914.57 MMBTU

20 Kg kitchen /
garden waste or
1.66 ton 275 ton 583 ton
Daily Fuel requirement 55 kg cow dung
(manure) (manure) (manure)
or 30 Kg chicken
dung
Consumers (No. of Houses)
1 house requires – 35 CFT / hr i.e. 8m3 1 6 1196 2537
per day)

Land - 2 Kanal 2 Acre 3 Acre

Plant Cost Rs 75,000 Rs 1.9 million Rs 248 million Rs 525 million

Land cost (Rural area – Rs 5 million
- Rs 1.25 million Rs 10 million Rs 15 million
per acre)
Total Capex - Rs 3.15 million Rs 258 million Rs 540 million
Opex / working capital (Based on
- Rs 0.58 million Rs 57.46 million Rs 112.525 million
raw material – manure )
 BIOGAS PLANT
SIZES
REMARKS
1) The analysis has been made based on stand-alone project.
2) Analysis has been made on 20 Years (Estimated useful plant life).
3) Profit margin considered as 20%. (Currently no policy / legal framework exist in
respect of biogas tariff).
4) Pipeline network cost for supply to consumers is not included.
5) Digestate slurry / composite solid (fertilizer) are produced from biogas plant.
Revenue by selling these items is not included in analysis.
6) Cost of raw material (Cow dung) estimated as Rs 500 / ton. In case of other raw
materials, feasibility analysis will vary. (1 cow produces 10 kg of dung per day)
5) Land cost is dependent on location. In urban areas it cost around Rs. 20 million
per acre whereas in rural areas it will be around Rs 5 million per acre. For the
purpose of this analysis we have considered rural area land. Furthermore land
suggested for 16500 m3 plant is 2 Acre which may be extended to 3 Acre
considering future expansion and similarly for 35000 m3 plant suggested land is
3 Acre which may be extended to 4 Acre.
6) Biogas production is estimated as 75% of digester capacity for 100 m3 biogas
plant and 90% for 16500 m3 and 35000 m3 plants.
7) Produced biogas is utilized for power generation otherwise electricity cost will
be higher.
8) Daily fuel requirement is based on 30 days retention period in digester. (Raw
material 50% and water-50%)
9) Plant cost is estimated as Rs 15000 per m 3 of digester capacity.
 BENEFITS OF BIO-GAS
1) Environmental
a. Clean and renewable energy source.
b. Reduction in greenhouse emissions.
c. Reduces soil & water pollution.
d. Reduces deforestation.

2) Financial
a. Benefits for the farmers.
b. Availability of low cost gas.
 POTENTIAL OF BIOMASS

The existing biomass resources on our planet can give us an idea of the
global potential of Biogas production. The European Biomass
Association (AEBIOM) estimates that the European production of
biomass based energy can be increased from the 72 million tones
(Mtoe) in 2004 to 220 million tones (Mtoe) in 2020. The largest potential
lies in biomass originating from agriculture.

The German Institute for Energy and Environment states that the
biogas potential in Europe is as high enough to be feasible to replace
the total consumption of natural gas, by injection of upgraded biogas
(biomethane) into the existing natural gas grid.

20 percent of Germany’s natural gas is supplied from biogas, according

to Andrea Horbelt of the German Biogas Association.
 POTENTIAL OF BIOMASS
Details of Livestock census, 2006 is as follows;
Cows &
PROVINCE Buffaloe Sheep Goat Camel Horses Mule Donkey Poultry
s

32.45 6.36 19.83 0.198 0.163 0.0633 2.23 25.90

PUNJAB
million million million million million million Million million

Khyber
7.888 3.363 9.59 0.064 0.076 0.067 0.56 27.69
Pakhtun
million million million million million million Million million
Khwa

Cost of raw material (Cow and Buffaloes dung) estimated as Rs 500 / ton.
Estimated Prices of biomass by UNIDO is as follows:
 POTENTIAL OF BIOMASS

In Punjab, UNIDO has identified 17 locations across Punjab where biomass collection
centers could potentially be set up. Cumulatively, the available residues are capable of
generating up to 1,013 MW of power annually.
 POTENTIAL OF BIO-GAS PLANTS IN PUNJAB
193 MMCFD Natural Gas may be produced from animal dung.
303 MMCFD Natural Gas may be produced from Agri-waste (Ref: UNIDO)
Biogas plant
Dung Natural Gas CNG
Sr No. District Cow and Buffaloes (Capacity 15000 m3)
Tons per day Nos. m3 / Day MMCFD Nos.
1 Jhang 2047989 10240 37 349089 12.318 217
2 Muzaffargarh 1773128 8866 32 302238 10.665 188
3 Faislabad 1608218 8041 29 274128 9.673 171
4 Kasur 1474588 7373 27 251350 8.869 156
Rahim Yar
5
Khan 1339391 6697 24 228305 8.056 142
6 Bahawalnagar 1301629 6508 24 221869 7.829 138
7 Sargodha 1262572 6313 23 215211 7.594 134
8 Okara 1209809 6049 22 206217 7.277 128
9 Bahawalpur 1159730 5799 21 197681 6.976 123
10 Khanewal 990255 4951 18 168793 5.956 105
11 Vehari 959236 4796 17 163506 5.770 102
12 Multan 915042 4575 17 155973 5.504 97
13 Sahiwal 908991 4545 17 154942 5.467 96
14 Sialkot 884816 4424 16 150821 5.322 94
15 Layyah 883114 4416 16 150531 5.312 94
16 D.G Khan 864123 4321 16 147294 5.198 92
17 Gujaranwala 852791 4264 16 145362 5.129 90
18 Sheikhupura 813843 4069 15 138723 4.895 86
19 Bhakkar 799044 3995 15 136201 4.806 85
Mandi
20
Bahaudin 794240 3971 14 135382 4.777 84
21 Pakpattan 772635 3863 14 131699 4.647 82
22 Toba Tek Singh 712238 3561 13 121404 4.284 76
23 Hafizabad 683667 3418 12 116534 4.112 73
24 MianWali 648556 3243 12 110549 3.901 69
25 Lodhran 599321 2997 11 102157 3.605 64
 POTENTIAL OF BIO-GAS PLANTS IN PUNJAB
193 MMCFD Natural Gas may be produced from animal dung.
303 MMCFD Natural Gas may be produced from Agri-waste (Ref: UNIDO)
Biogas plant
Dung (Capacity 15000 Natural Gas CNG
Sr No. District Cattle m3)
Tons per day Nos. m3 / Day MMCFD Nos.
26 Rawalpindi 591410 2957 11 100809 3.557 63
27 Rajanpur 585816 2929 11 99855 3.524 62
28 Chakwal 580772 2904 11 98995 3.493 62
29 Cholistan 577433 2887 10 98426 3.473 61
30 Gujrat 559059 2795 10 95294 3.363 59
31 Lahore 538408 2692 10 91774 3.238 57
32 Nankana 531718 2659 10 90634 3.198 56
33 Khushab 513356 2567 9 87504 3.088 54
34 Attock 507568 2538 9 86517 3.053 54
35 Narowal 467136 2336 8 79625 2.810 50
36 Jehlum 312548 1563 6 53275 1.880 33
37 Islamabad 135607 678 2 23115 0.816 14
32159797 160798.985 585 5481784 193.436 3413
Note:
Cattle dung – 10 Kg / day
Provision of dung estimated as 50%
Plant requirement – 275 tons per day
Biogas composition 60%
Consumption of CNG pump estimated as 0.05668 MMCFD
 CHALLENGES / BARRIERS IN ADOPTION OF
BIOMASS ENERGY IN PAKISTAN

 1) Lack of policy framework for utilization of biomass for production

of biogas
 
a. Without policy / legal framework, buying price of biomass and selling
price of biogas is not defined which is essential for feasibility analysis.

b. Licensing issue for the production and sale of biogas.

 CHALLENGES / BARRIERS IN ADOPTION OF
BIOMASS ENERGY IN PAKISTAN

2) Lack of a structured biomass value chain

Continuous availability of raw materials e.g. cow dung, rice husk, wood chips / waste etc is
a challenge. There is a need for developing the biomass value chain / supply chain
beginning with the development of a market where biomass is commercially available as
a commodity / structured product available for sale. UNIDO proposed establishment of a
network of biomass collection and processing centers. Proposed biomass supply chain is
as follows:
 CHALLENGES / BARRIERS IN ADOPTION OF
BIOMASS ENERGY IN PAKISTAN

3. Lack of awareness in the agriculture sector regarding the use of

agricultural residues.

4. Lack of precedent for successfully setting up a large scale

biomass energy plant.

5. Operation and maintenance (O & M) / up-keeping of biogas

plants is a challenge.

6. Seasonal availability of raw materials e.g. rice husk, wood chips /

waste etc is a challenge.
 PROPOSED LOCATIONS FOR BIOGAS PLANTS

1. Military Farms, Okara

2. Hafizabad
 PROPOSED LOCATIONS FOR BIOGAS PLANTS

1. Military Farms, Okara

▪ Potential of Raw Materials

Number of Cattles 6500 (Cows and Buffalos)

Animal Dung 65 Tons
Total Military Units 05 (within radius of 20 Km)
Vegetable Market waste Market at a distance of around 10 Km
Rice Straw 153,000 tons (As per UNIDO)

Note: As per census-2006, 1.2 million (cow and buffalos) in Okara district.

▪ Land
Proposed location for biogas plant is Khyber Unit.
 PROPOSED LOCATIONS FOR BIOGAS PLANTS

1. Military Farms, Okara

Pros
Joint collaboration with Army
High potential of Raw material
Cow Dung
(Cattles of Army Farms and Bahadar
Nagar Farms)
Rice Straw / Corn stover
Vegetable market waste
Land available (Army )
Cons
-Network is to be laid of
around 6 Km for Army Dairy
Factory and for 100 Nos. of
Houses in Khyber farm.
(Electricity generation may be
considered)
Currently animal dung is
collected in diluted form (floor
is washed with water)
 PROPOSED LOCATIONS FOR BIOGAS PLANTS

2. Hafizabad
▪ Potential of Raw Materials

Rice Straw 123,000 tons (As per UNIDO)

683,667 (Cows and Buffalos)

Cattles
As per Census-2006

▪ Land – Proposed location is Jalapur Bhattian

Dairy Farm (Matrix) at a distance of 20 Km (2500 cows i.e. 25 ton
animal dung). Poultry farm is also in Jalalpur Bhattian.

▪ Potential Buyers of biogas / bio-methane

Jalalpur Bhattian City - 5 TBS, consumers 4000-5000

Small / medium biogas plant may be installed for supply to

isolated locality through dedicated TBS.
 RAW MATERIAL FOR BIOGAS PLANT

Raw Material Cost per annum (Rs. in million)

Plant Capacity
Animal Dung Rice Straw

100 m3 0.29 1.11

16500 m3 48.125 184.32

35000 m3 102.02 390.755

Bio methane (97%) cost per MMBTU

Plant Capacity
Animal Dung Rice Straw

100 m3 1131 2504

16500 m3 778 2295

35000 m3 716 2205

PCRET also recommends Animal Dung as raw material rather than

rice straw.
 COMMUNITY BASED – 16500 M 3 BIO GAS PLANT

Biogas plant of digester capacity 16500 m3 may be proposed on following

terms with respective community;
a. Provision of Raw material (Animal dung / rice husk) without cost by the
community
b. Sale of biogas and fertilizer by SNGPL
Cost of plant including land cost Rs 233 million

Operation and maintenance cost Rs 9.33 million

Cost of biogas Rs 246 per MMBTU
Life of biogas plant 20 years
Production of biogas per year 3937500 m3 / 83421 MMBTU
Sale Price of biogas Rs 422 per MMBTU
Production of Fertilizer per year 1400 ton (4 ton per day)
Sale Price of Fertilizer Rs 3 per Kg
 VENDORS OF BIO-GAS PLANTS

Sr # International

Quotation awaited.
01 Envitech, Germany Emails sent on 23.12.2020 and 13.01.2021
Video link meeting on 13.01.2021
Response awaited.
02 Plan ET, Germany
Emails sent on 23.12.2020 and 18.01.2021
03 Ammongas, Denmark Preliminary quote of 6 million USD received

Response awaited.
04 Fenghuo, China
Emails sent on 24.12.2020 and 18.01.2021
Spectrum Renewable Energy, Response awaited.
05
India Emails sent on 08.01.2021 and 18.01.2021.
 VENDORS OF BIO-GAS PLANTS

Sr # Local

Quotation received on 07.01.2020 for biogas

01 Revgreen, Lahore
plant of capacity 15000 m3 / day
National Biogas Program Response awaited.
02
Faisalabad Emails sent on 07.01.2021 and 18.01.2021.
Response awaited.
03 Bio-Tech, Lahore
Emails sent on 06.01.2021 and 18.01.2021
Response awaited.
04 Renewable Stars, Islamabad
Emails sent on 07.01.2021 and 18.01.2021.
Response awaited.
05 Beta Pak, Islamabad
Emails sent on 07.01.2021 and 18.01.2021.
Response awaited.
06 Nord Tec, Karachi
Emails sent on 07.01.2021 and 18.01.2021.
Pak Green Engineering, Response awaited.
07
Islamabad Emails sent on 07.01.2021.
 BIO-CNG

Conversion of biogas to Bio-CNG requires removal of impurities such

as water, N2, O2, H 2S and CO2 from raw biogas. Bio-CNG is then made
by compressing the purified biogas (>97% CH4) at a pressure of 200
bar.

Cost of new CNG plant is estimated as around Rs 20-25 million and

for refurbished / old equipment is around Rs 10 million.

Land cost (1.5 to 2 Kanal) is dependent on location. Land may be

obtained on lease for 15-20 years.