Productive biogas:

concepts, business models, incentives

Biogas (and manure) sector
development in 20 countries with over
660,000 bio-digesters installed.
Multiple benefits of bio-digesters
Carbon
revenues

Health & Environment

sanitation

Local
Agriculture economy
Energy

Biodigester
Large scale, Industrial biogas

• Heating buildings
• Sugar refinery, distillery, paper
mills, dairy, baking ovens
• Electricity
• Vehicle fuel

Bio-digester
Small scale bio-digesters

• Design: fixed dome (2-20m³)

• Local materials & resources
• Feeding: livestock manure &
human excreta (> 15 kg daily)
• USD 300-1,500
• Life: > 15 years
• Gas use: cooking/basic lighting
• Bio-slurry: organic fertiliser
Bio-digester
Biogas milk chilling, processing; bioslurry for crops
sale
Milk
sale
Income /
loan
Customer Dairy sector
installment Training
helpdesk FARMER
alignment
entrereneurship

Training cow Income

rearing & milking
Cow stable

Cow
Biogas Stove Fodder Crops
Production, sale
installation,
training, quality Production,
control, service installation
Biogas

& service
Biogas
Milk Chiller
Food crop Training slurry
Cow management
manure production
Bio-slurry

Biogas System
Monitoring
Medium scale bio-digester coffee
cooperative 550 members Honduras
• Design: PVC (48- 104m³)
• Feeding: coffee waste water
livestock manure for start-up
• Repayment time: 14 years
• Gas use: electricity for admin.
cooperative. Gas for roasting
coffee.
• Bio-slurry: organic fertiliser
Bio-digester
Medium scale communal bio-digester Peru

• Design: PVC (2x 75 m³) and 2

generators 6 & 10 Kw.
• Feeding: livestock manure ( 162
kg daily)
• USD 125.000 ; Life: > 10 years
• Gas use: 16 Kw electricity for 42
households, SME’s.
• Bio-slurry: organic fertiliser
Biodigester
Bio-digester
Medium scale communal biodigester palm
oil waste Indonesia
• Design: fixed dome (50 m³)
• Feeding: palm oil effluent (750 lt )
start-up 30% dung
• Users manage transport
feedstock; costs USD 5,500
• Gas use: pipe system for cooking
in 15 households
• Bio-slurry: organic fertiliser
Bio-digester
Medium scale bio-digester Tofu industry
Indonesia
Tofu waste as feedstock.
• Design: fixed dome (20m³)
• Feeding: Tofu waste water
• USD 1700; repayment 17
months.
• Gas use: 10 hrs. per day water
heating for Tofu production
• Bio-slurry: organic fertiliser (tbc)

Bio-digester
Medium scale bio-digesters pig farms
Vietnam
• Design: fixed plug flow dome
(150- 500m³)
• Feeding: livestock manure (>
2000 kg daily)
• USD 6000 – 20.000; repayment
• 3 – 10 yrs.
• Gas use: cooking/pig feed, few
generate electricity
• Bio-slurry: organic fertiliser
Bio-digester
 Business Model:
Functions National Sector Development

Promotion Operation & maintenance Extension

Training
Sales
R&D Financial
& after sales
services
Q-Control service
M&E
Coordination/implementation

Coordination/policy level
 Business model: Community managed biogas
powered minigrid Peru
Implementing Only exists during implementation of the project,
afterwards converts in Support and Supervision Unit. Owner of the
agencies system

SNV Communal
Municipality of Huimbayoc
Practical Action Electrification Steering
(MDH)
Regional Direction of Committee (GIEC)
Energy & Mines Contract with USEC for
Promotes activities to delivering AO&M services
implement the project
Companies / Service
providers
Support and
Funding: Users
Supervision Unit Periodic reports

Regional Government

Tariff payment
Contract for energy supply
FACT Foundation
Cordaid Communal Energy Services Unit (USEC)

Administration, Operation and Maintenance of

the system (AO&M)
Administrates:
- User register
- Financial balances
- Maintenance fund
Maintenance Fund
Access to energy in isolated communities of the
Peruvian Amazon, based on local production of biogas
Business model: cooperative Honduras

• Installation by local companies

• Cooperative’s management and
staff trained in operations,
maintenance and application of
biogas.
• Redistribution of cost savings
through potential improvement
coffee sales price to members.
Bio-digester
Business model:
Private enterprise – inclusive business
• For-profit business model of private biogas and stoves production
companies
• Ecofriendly production: biodigester from recycled plastic, crop residue
feedstock
• Affordable, good quality biodigester, stove for low income communities
• Decent jobs in production, distribution and sales for low income people
• Inclusion of low income suppliers in the value chain.

Bio-digester
Incentives

• Innovative finance: results based incentives, carbon finance.

• Cost reduction for customers, market intelligence for investors.
• Conducive environment: laws and reguiations for pollution, waste treatment
• Social pressure in demand creation: admiration, condemnation

Bio-digester
Incentives: Results Based Finance
Shift in Practice & Thinking
Up-Front Subsidies biogas owners 
Conditional Post-Incentives construction companies;
Non-Delivery = Non-Payment
Risk from Donors  Market Actors

Temporary Incentive to Trigger Growth

Responsive Design to Unique Market Context
Flexibility for Private Sector to Drive Business Modelling

Bio-digester
Conditions for scaling

• Technical, economical feasibility studies

• Market based, private sector driven
approach
• Conducive governance environment
• Access to finance
• Capacity building of all stakeholders

Bio-digester
Find out more on www.snvworld.org/re

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