Prospects of Biogas based Electricity Projects and

Available Support from IDCOL

S. M. Formanul Islam
Deputy CEO

November 2014

IDCOL Biogas based

Electricity Program

IDCOL Biogas based Electricity

Program:
Motivational factors
Technologies
Financial structure
Implemented projects and target

Motivational
Factors

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

Biogas based
Electricity Projects

Availability of proven technology

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
Biogas based
Electricity Projects

robust market for biogas and biogas projects

Project Cost
Components

Equipments
Biogas Generators and/or
Biogas Distribution Lines

Civil Construction & Others

Biogas Digester(s)
Generation unit building
Wiring and/or piping

Slurry Pit

Biogas based
Electricity Projects

Fertilizer Shed
Fencing

Biogas based Electricity Projects

Biogas based electricity projects financed by IDCOL

300 m3 bio-electricity plant at

Tetulia, Panchagarh

210 m3 bio-electricity plant at

Bhuapur, Tangail

Factors
Affecting
Project Cost

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

Biogas based
Electricity Projects

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

Machinery and Equipment

50 KW Genset

Tk. 2,500,00
2,500,000

Total Capital Cost (excluding

land)

Tk. 7,000,000

900,000
1,000,000

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

Allocation of Equity, Debt and Grant

Particulars

(%)

Equity
Debt
Grant
Total

From 30%
Up to 70%
Discretionary (Up to 20%)
100%

Financing Terms
Facility Interest Rate

Biogas based
Electricity Projects

Term loan

From 9%

Tenor

Grace

Repayment

Repayment
Frequency

7 years

1 Year

Annuity

Quarterly

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

Biogas and
Biomass Project

Project performance monitoring after project

implementation

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

Biogas based
Electricity Project

project performance and effect on

surrounding environment of the project according
to the requirements of environmental and social
screening report

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
suppliers 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)

IDCOLs Vision
Biogas Based Electricity Projects

At least 450 commercial biogas plants by 2017

Tremendous Potentials
Highly Profitable

Endless Potentials

Thank You

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