biogas based projects idcol formanul-islam
DESCRIPTION
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S. M. Formanul Islam Deputy CEO
November 2014
Prospects of Biogas based Electricity Projects and Available Support from IDCOL
IDCOL Biogas based Electricity Program
IDCOL Biogas based Electricity Program:
Motivational factors
Technologies
Financial structure
Implemented projects and target
Motivational
Factors
Biogas based
Electricity Projects
Generation of gas and/or electricity from waste
Generation of highly profitable by-products
Scope for replacement of existing diesel generators
Effective alternative to grid electricity
Scope of meeting increasing demand for household
gas consumption in the country
Environment friendly as it leads to efficient
utilization of waste
Availability of proven technology
Selection of Technology
Proven technology
Competency and experience of the supplier in
home and abroad
Supplier is selected on competitive basis
IDCOL is working with various stakeholders in
this sector to bridge the gaps and promote a
robust market for biogas and biogas projects
Technology
Biogas based
Electricity Projects
Equipments Project Cost Components
Biogas based
Electricity Projects
Biogas Generators and/or
Biogas Distribution Lines
Civil Construction & Others
Biogas Digester(s)
Generation unit building
Wiring and/or piping
Slurry Pit
Fertilizer Shed
Fencing
Biogas based Electricity Projects
300 m3 bio-electricity plant at Tetulia, Panchagarh
210 m3 bio-electricity plant at Bhuapur, Tangail
Biogas based electricity projects financed by IDCOL
Factors Affecting Project Cost
Biogas based
Electricity Projects
Location
Availability of sufficient organic waste
Use of biogas generated by the project
Number and size of bio-digesters
Size of electricity generation plant
Slurry Utilization Plan
Quality and origin of equipments to be used
Based on the above criteria, a 50 KW biogas electricity project can cost BDT 7 million
Financial Details (Sample of a 50 KW Biogas Electricity Plant)
Biogas based
Electricity Projects
Land Requirement 720 sft (digester and generator) 15,000 sft (fertilizer processing)
Civil Construction Digester & Mixing Tank Engine & Distribution
Room Slurry Pit Fertilizer Shed
Tk. 4,500,000 2,500,000
100,000
900,000 1,000,000
Machinery and Equipment 50 KW Genset
Tk. 2,500,00 2,500,000
Total Capital Cost (excluding land)
Tk. 7,000,000
Revenue Tk. 10,037,500/ year
Revenue from Electricity
Tk. 730,000/ year (@ 5 Tk/ KWh with annual escalation of 5%)
Revenue from Fertilizer
Tk. 7,756,250/ year (@ 5 Tk/ KG with annual escalation of 5%)
Payback Period: 22 months or 1.82 years
Financing Structure
Biogas based
Electricity Projects
Particulars (%)
Equity From 30%
Debt Up to 70%
Grant Discretionary (Up to 20%)
Total 100%
Facility Interest Rate Tenor Grace Repayment Repayment
Frequency
Term loan From 9% 7 years 1 Year Annuity Quarterly
Allocation of Equity, Debt and Grant
Financing Terms
IDCOL Supports
Financial Support
Concessionary loan for a period of 7 years
Tailored debt financing
Technical Support
Selection of suppliers based on technical and
financial competency
Project performance test after installation
Project performance monitoring after project
implementation
Biogas and
Biomass Project
Responsibility of Sponsor
Selection of areas and target customers
Maintain project after installation
Ensure adequate supply of raw materials for running the project
Manage sales of biogas/electricity and bio-fertilizers
Payment of IDCOL installment on due time
Monitor project performance and effect on surrounding environment of the project according to the requirements of environmental and social screening report
Biogas based
Electricity Project
Biogas based Electricity Projects: Role of
Stakeholders
Multilateral Agencies
•Provides grant and soft loans to IDCOL
•Provides technical assistance needed
IDCOL
•Provides soft loans
•Provides grants to make the project commercially viable
•Monitors implementation
Sponsor
•Identify potential customers and areas
•Ensure adequate raw material for project
•Monitoring supplier’s work
•Ensure Revenue Collection
EPC Contractor
•Install equipment
•Provides after sales services
Support from Development Partners
Credit Support The World Bank
JICA
Grant Support USAID
KfW (Proposed)
IDCOL’s Vision
Biogas Based Electricity Projects
At least 450 commercial biogas plants by 2017
Tremendous Potentials
Highly Profitable
Endless Potentials
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Thank You