Bio Gas Service

8/8/2019 Bio Gas Service

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Executive summary

The world is reeling under the impact of environmental degradation caused by industries anddumping of garbage due to rapid population growth. Almost all of the water bodies, Ground

water resources and Air have seen a dramatic rise in pollution levels leading to globalwarming.

The latest analysis of observations from WMO's Global Atmosphere Watch (GAW)

Programme shows that the globally averaged mixing ratios of carbon dioxide (CO2), methane(CH4) and nitrous oxide (N2O) have reached new highs in 2009 with CO2 at 385.2 ppm,

CH4 at 1797 ppb and N2O at 321.8 ppb: higher than those in pre-industrial times (before1750) by 38%, 157% and 19%, respectively. Atmospheric growth rates of CO2 and N2O in

2008 are consistent with recent years. The increase in atmospheric CH4 was 7 ppb from 2007

to 2009, similar to the increase of the years before. These are the largest increases since 1998.

The NOAA Annual Greenhouse Gas Index (AGGI) shows that from 1990 to 2008 the

radiative forcing by all long-lived greenhouse gases has increased by 26.2%. The combined

radiative forcing by halocarbons is nearly double that of N2O. Some halocarbons are

decreasing slowly as a result of emission reductions under the Montreal Protocol onSubstances That Deplete the Ozone Layer, whereas others are increasing rapidly. Each year

some 590-880 million tons of methane are released worldwide into the atmosphere through

microbial activity. About 90% of the emitted methane derives from biogenic sources, i.e.

from the decomposition of biomass

The biogas project aims at using manure from livestock and enormous waste generated by

hotels in Goa to produce biogas as cooking fuel .The most commonly used fuels for cookingare LPG and kerosene, Both of them are fossil-based refined fuels and, therefore, potential

CO2 emitters to the atmosphere. As CO2 from fossil fuels will be replaced and themanagement of organic manure will avoid CH4 (methane) emissions, the project activity will

greatly contribute to the reduction of GHG (green house gasses). The present project activity

will be based in bio systems comprising bio-digesters in which the manure and hotel wastewill be digested and methane produced. The fuel gas produced from substrates fermentationinside the bio-digesters will be pipelined to compressor for filling cylinders for house hold as

well as hotel cooking purposes. The project will provide employment to 10 people and each

bio digester will serve by around 30-50 animals. The biogas produced will be used as fuel for household energy needs while the sludge is to be used as fertilizer in household farming

fields to support the increasing demand for organic food and hence also increasing theincome of the community.



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Business summary

The idea of setting up a small scale biogas plant (60m3= 60cylinders every 15 days) is purely

based on the conviction of reducing global warming. The Entrepreneur has invested in this

business with the motive of mitigating carbon CO2, methane and also for seizing theopportunity of increasing dependence on non- conventional sources of energy. The idea of

establishing a Biogas plant germinated after closely observing the rising price trend of LPG,

the most widely used cooking gas which results in the emission of CO2 is bound to be in

shortage in a few decades. The plant will be highly depending on organic hotel waste along

the coastal stretch and will be situated in a 300sqmtr plot after Pilerne Industrial Estate. The

land is owned by the entrepreneur.

Location: - The location has been selected to abide the rules regulating a biogas plant which

states the non- existence of any residential area within the distance of 250mtrs from the plant.

The location will also provide the plant easy access to hotels waste in the coastal as well as

porvorim and panjim areas. The plant will also depend on the availability of cow dung fromthe nearby villages.

Objectives

To encourage hotels on using bio gas as an alternative to conventional LPG.

To spread awareness about the benefits of Bio gas.

To entice households to use bio gas as cheaper and safer means of cooking.

To ensure plant productivity. Establish proximity with various hotels to procure kitchen waste.

We aim to

Pioneering the service of supplying bio gas Become Goa¶s largest producer of biogas

Expand significantly and cater to a larger customer base.

MISSION STATEMENT

Our foremost milestone is to reduce the impact of green house gases by offering biogas with

the means of innovation and changes in daily life by meeting the needs of present generation

without damaging or depleting biodiversity for the future generation.

VisionTo create an environmentally sustainable world

Keys to success Attaining targeted number of clients.

Carefully monitoring the productivity of the plant. Controlling waste procurement costs.

Increased methane production from multiple substrates.

Optimum plant utilization.

Maintaining temperature for anaerobic digestion.



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Technology Description

The Fixed dome Bio Gas plant technology mainly consist of 3 main process

Mixing chamber: where animal excrement and other organic waste is mixed with water

before it is poured into digester chamber.

Digester chamber: where excrement and water are fermented. Methane and other gases will

be produced in the chamber due to anaerobic digestion and these gases will push manure and

slurry at bottom of the floor into expansion chamber.

Expansion chamber: collects excess manure and slurry. When gas is being used, manure andslurry will flow back into digester chamber to push gas up for usage. When the excess

manure exceeds the volume of the chamber, the manure will be drained out. This system iscalled dynamic system, when gas is produced inside the pit, the gas pressure will push

manure and slurry at the bottom of the pit to flow up into expansion chamber. When this gas

is used the slurry in the expansion chamber will flow back into the digester chamber to push

the gas up for usage.

Anaerobic digestion is a biological process that produces a gas principally composed of

methane (CH4) and carbon dioxide (CO2) otherwise known as biogas. These gases are

produced from organic wastes such as livestock manure, food processing waste, etc. Bio-

methanation is the process of conversion of organic matter in the waste (liquid or solid) toBio-Methane (usually termed as "Biogas´) and manure by microbial action in the absence of

air, known as "anaerobic digestion."(AD). Bio Methanation as an economic, environmentaland energy-saving waste treatment continues to gain greater interest world-wide and has led

to the development of a range of anaerobic reactor designs. Anaerobic Digestion (AD) promotes the bacterial decomposition of the volatile solids (VS) in animal wastes to biogas,

thereby reducing lagoon loading rates and odour. The primary component of an AD system isthe anaerobic digester, a waste vessel containing bacteria that digest the organic matter in

waste streams under controlled conditions to produce biogas.



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Benefits of using Bio gas:

A Biogas unit can yield a whole range of benefits for their users, the society and the

environment in general, the chief benefits being;

1) Production of renewable energy

2) Transformation of organic wastes into high quality fertilizer.

3) Reduces emission of 2 major GHG (CO2, methane)

4) Environmental advantages through protection of forests, soil, water and air.

5) Global Environmental Benefits of Biogas Technology.

6) Safer compared to LPG as Methane is lighter, it immediately get mixed into the air, hence

it¶s not flammable if leaked.

Production steps

Waste procurement: - the key element to maximizing methane production is to co-digest

multiple substrates in the digesters. Manure has relatively low energy content since cowshave already digested the feedstock. As complete mix anaerobic digestion technology, Biogas

digesters are extremely effective at treating various high-energy substrates. The reactorsaccept substrates other than manure, from grease to corn silage without any problems. Even

mixed food waste can be digested on its own as a significant source of energy.Since there are many big and small hotels situated on the coastal stretch which produce

enormous amounts of food and other organic wastes, waste from these hotels can be procuredeasily and can be used a major ingredient in producing Biogas. Apart from the waste from

hotels approximately around 400kg of cow dung will be required every 10days after the plantstarts running at full capacity, this will be obtained from farmers at a reasonable rate.

Digester: - the waste will then be bought to the plant which as the capacity of 60m3

and as per

the processes stated in the technology description; methane gas will be produced and stored

in fibre glass cylinders similar to LPG but are relatively cheaper.

Sludge: - bio gas digester is fed with cow dung slurry and organic waste at a design rate,

which is governed by local parameters. The output from the digester (digested manure) is

actually a high quality organic fertilizer. This fertilizer is very important, especially because

of the increasing demand for organic food. It has been calculated through university lab tests

in India that the fertilizer which comes from a bio-gas plant contains three times more

nitrogen than the best compost made through open air digestion. If you compost chickenmanure, for example, the finished compost will have in it only 1.58 to 2%o nitrogen. The

same manure digested in a bio-gas plant will analyze 6% nitrogen. Assuming that thedigested slurry is immediately utilized - and properly applied - as fertilizer, each daily kg can

be expected to yield roughly 0.5 kg extra nitrogen, as compared with fresh manure. If the

slurry is first left to dry and/or improperly applied, the nitrogen yield will be considerably

lower. This sludge can be sold as organic fertilizers and hence can also be a source of revenue.





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Marketing plan

SWOT ANALYSIS

STRENGTH

y Cheaper than LPG

y Safer as not flammable if leakedy Emits no odour and produces very minimal smoke

y No side effects to health

y Cost saving

WEAKNESS

y Minimal awareness

y Possibility of reluctance ( LPG¶s prominence)

OPPORTUNITY

y Increasing LPG prices(eventually shortage)

y Supplying Contracts from hotels.

y Increasing demand for organic fertilizers (by product)

y Increasing dependency on non-conventional energy sources

y Subsidies on biogas plants.

THREATS

y In house biogas plants

Targeting

Considering the limited output of Biogas during the start up, the target clients will be limitedonly to hotels which are looking forward at decreasing their cost of cooking.

Positioning

The biogas service will be positioned as a cheap and cost saving alternative against LPG.

Unique selling Point

The benefits of Using BIOGAS

Promotion No advertisement will be conducted due to very confined target market, instead the potential

clients (hotels) will be approached with the benefits of using Biogas and contracts will bemade.



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FINANCIAL PLAN

PROFIT AND LOSS ACCOUNT 2011

(amount in rupees)

Particulars Amount

Income

Gross income 12,52,144.28

Total 12,52,144.28

Expense

Salaries 2,16,000.00

fuel 96,22

9.28

Electricity 64,152.85

Water 21,384.28

cow dung 51,322.28

Miscelleneous 3,600.00

Telephone 2,400.00

Depreciation 3,69,996.00

License 15,000.00

Total 8,40,084.69

Profit before tax 4,12,059.59

less income tax 1,23,617.88

Profit after tax 2,88,441.71

transfer to general reserve 14,422.09

Profit available for distribution -

Proposed dividend -

tax on dividend -

Net profit transferred to balance sheet 2,74,019.63



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BALANCE SHEET AS ON 31ST 03 2011

(amount in rupees)

Particulars Amount

I. SOURCES OF FUNDS

Shareholders funds

Capital 16,00,000.00

General reserve 14,422.09

profit and loss a/c 2,74,019.63

Loan funds

Secured loans - -

TOTAL 18,88,441.71

II. AAPPLICATION OF FUNDS

Fixed asset

Gross block 14,80,000.00

Less :depreciation 3,69,996.00

Net block 11,10,004.00

Investment -

Current assets loans and advances

Inventory 207500.00

Debtors

cash and bank balance 5,70,937.71

Total 7,78,437.71

Less current liabilities and provisions

Liabilities

Creditors

Bank Overdraft -

Provisions -

Total - 7,78,437.71

TOTAL 18,88,441.71



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BREAK EVEN ANALYSIS

Month Revenues Cost Total

January 54,000.00 60,233.00 (6,233.00)

February 54,000.00 67,556.00 (13,556.00)

March 54,000.00 76,078.00 (22,078.00)

April 60,000.00 85,918.90 (25,918.90)

May 60,000.00 91,210.59 (31,210.59)

June 71,400.00 98,098.15 (26,698.15)

July 78,200.00 95,341.16 (17,141.16)

August (plant at full capacity) 1,02,000.00 87,715.18 14,284.82

September 1,16,284.82 72,698.12 43,586.70

October 1,45,586.70 31,447.93 1,14,138.77

November 2,16,138.77 77,604.79 1,38,533.98

December 2,40,533.98 80,431.97 1,60,102.01

12,52,144.28 9,24,333.79 3,27,810.48

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50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

300,000.00

Reve

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Cost



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Bio Gas Service

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