Energy is the pulse of modern civilization. In Bangladesh, the demand for power grows faster than supply, while rural communities still face frequent load-shedding and rising fuel costs. Most important, this energy crisis also challenges food production and environmental balance. Biogas power generation can solve all three issues at once—it provides renewable energy, reduces waste, and strengthens rural livelihoods.
Because biogas plants convert organic waste like cow dung, poultry litter, and crop residue into gas and electricity, they offer an eco-friendly solution for industries, farms, and even municipalities. Therefore, investing in a Biogas Power Generation Unit in Bangladesh is not just profitable—it’s sustainable and socially impactful.
1. Project Overview
A biogas power plant uses anaerobic digestion technology to produce methane-rich gas, which is then used to generate electricity through gas engines or turbines.
Below is an overview of a 1 MW Biogas Power Generation Plant project for Bangladesh.
| Particulars | Details |
|---|---|
| Project Title | Biogas Power Generation Unit (1 MW Capacity) |
| Project Location | Mymensingh / Bogura / Jessore (Proposed Sites) |
| Project Type | Renewable Energy Generation |
| Installed Capacity | 1 Megawatt (MW) |
| Raw Materials | Cow Dung, Poultry Litter, Crop Residue, Organic Waste |
| Technology | Anaerobic Digestion with CHP (Combined Heat and Power) |
| Project Implementation Time | 12 Months |
| Estimated Project Cost | BDT 180 Million (Approx. USD 1.6 Million) |
| Expected Project Life | 20 Years |
| Ownership Pattern | Private Limited / Joint Venture |
2. Objectives of the Project
The main goal is to produce renewable power while utilizing agricultural and organic waste effectively.
Key objectives include:
- To generate clean electricity from organic waste.
- To reduce methane emission and environmental pollution.
- To create rural employment opportunities.
- To produce organic fertilizer as a byproduct.
- To contribute to the national renewable energy target (10% by 2030).
3. Market Potential in Bangladesh
Bangladesh has one of the world’s largest livestock and poultry populations. Every day, millions of tons of manure, crop residues, and municipal wastes are generated. Rather than polluting the environment, these can become energy resources.
- Estimated biogas potential: over 30,000 MW equivalent energy.
- Rural demand: 60% of villages have livestock suitable for biogas projects.
- Industrial demand: food processing, textile, and poultry farms require continuous power.
- Government incentives: 10-year tax holiday and reduced import duties for renewable energy projects.
Therefore, the market for biogas power plants is not only large but also supported by national energy policies and environmental goals.
4. Raw Materials and Supply
The project’s raw material is organic waste, mainly cow dung, poultry litter, and crop residues.
| Raw Material Source | Daily Requirement (tons) | Source Distance (km) | Remarks |
|---|---|---|---|
| Cow Dung | 60 | 5 | From dairy farms |
| Poultry Litter | 25 | 8 | From poultry sheds |
| Crop Residue / Straw | 15 | 10 | Local farmers |
| Vegetable Waste | 5 | 4 | Nearby markets |
| Total Feedstock | 105 tons/day |
These inputs will be collected using a scheduled transportation system and stored in airtight silos before feeding into the digester.
5. Process Flow of Biogas Power Generation
The process is simple yet scientifically precise.
- Collection and Pre-Treatment – Raw materials are gathered and mixed with water to form slurry.
- Anaerobic Digestion – The slurry is placed in sealed digesters where bacteria break down organic matter, producing methane gas.
- Gas Cleaning and Storage – Hydrogen sulfide and CO₂ are removed from raw gas.
- Power Generation – Clean biogas runs a generator connected to a gas engine to produce electricity.
- Byproduct Utilization – The remaining slurry is converted into biofertilizer and sold to farmers.
This cyclical process makes it a zero-waste system.
6. Project Implementation Schedule
| Activity | Duration (Months) | Cumulative Progress (%) |
|---|---|---|
| Project Planning and Feasibility Study | 1 | 5% |
| Land Development and Civil Works | 3 | 25% |
| Equipment Procurement | 3 | 50% |
| Installation and Erection | 3 | 75% |
| Testing and Commissioning | 1 | 90% |
| Commercial Operation | 1 | 100% |
| Total Duration | 12 Months |
7. Estimated Project Cost
| Particulars | Amount (BDT Million) |
|---|---|
| Land and Site Development | 10 |
| Civil Construction and Buildings | 25 |
| Biogas Digesters and Reactors | 40 |
| Gas Cleaning and Storage System | 15 |
| Power Generation Equipment (1 MW) | 30 |
| Piping and Fittings | 5 |
| Electrical and Control Systems | 10 |
| Vehicles and Transport | 5 |
| Miscellaneous Tools and Accessories | 5 |
| Preliminary and Pre-Operative Expenses | 5 |
| Working Capital | 10 |
| Total Project Cost | 180 Million BDT |
8. Means of Finance
| Source of Fund | BDT Million | % of Total |
|---|---|---|
| Sponsor’s Equity | 72 | 40% |
| Term Loan (Bank) | 108 | 60% |
| Total | 180 | 100% |
9. Operating Cost (Annual)
| Item | Amount (BDT Million) |
|---|---|
| Raw Material Collection and Handling | 12 |
| Labor and Salaries | 8 |
| Maintenance and Repairs | 5 |
| Utilities and Water | 2 |
| Fuel for Transport | 1.5 |
| Administrative Expenses | 3 |
| Loan Interest | 8 |
| Depreciation | 6 |
| Total Operating Cost per Year | 45.5 Million BDT |
10. Income and Profitability Forecast
| Description | Unit | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|---|
| Power Generation | kWh (million) | 7.2 | 7.5 | 7.8 | 7.8 | 7.8 |
| Sale Price | BDT/kWh | 10.00 | 10.00 | 10.50 | 10.50 | 10.50 |
| Total Revenue | Million BDT | 72 | 75 | 81.9 | 81.9 | 81.9 |
| Operating Cost | Million BDT | 45.5 | 46 | 47 | 47 | 47 |
| Gross Profit | Million BDT | 26.5 | 29 | 34.9 | 34.9 | 34.9 |
| Net Profit After Tax | Million BDT | 17 | 19 | 22 | 22 | 22 |
| Payback Period | Years | 4.5 | ||||
| ROI (Average) | % | 20% |
11. Manpower Requirement
| Category | No. of Persons | Monthly Salary (BDT) | Annual Cost (BDT Million) |
|---|---|---|---|
| Project Manager | 1 | 80,000 | 0.96 |
| Electrical Engineer | 1 | 60,000 | 0.72 |
| Mechanical Engineer | 1 | 55,000 | 0.66 |
| Plant Operators | 4 | 35,000 | 1.68 |
| Lab Technician | 1 | 30,000 | 0.36 |
| Helpers & Cleaners | 4 | 18,000 | 0.86 |
| Security & Admin Staff | 2 | 25,000 | 0.60 |
| Total | 14 Persons | 5.84 Million BDT/Year |
12. Environmental Impact
Biogas projects are carbon-negative, meaning they prevent more greenhouse gases than they emit. Each 1 MW biogas power plant can:
- Reduce 7,000 tons of CO₂ equivalent per year.
- Save 1,000 tons of firewood annually.
- Produce 20,000 tons of organic fertilizer per year.
Therefore, it directly supports Bangladesh’s Nationally Determined Contribution (NDC) targets and global climate commitments.
13. Economic and Social Benefits
- Energy Independence: Decreases reliance on imported fossil fuels.
- Rural Employment: Creates local jobs in collection, maintenance, and logistics.
- Farm Income Boost: Farmers can sell waste instead of dumping it.
- Organic Farming: Bio-slurry acts as a natural fertilizer, improving soil health.
- Women Empowerment: Provides cleaner cooking energy alternatives in rural homes.
14. Government Policy Support
The Government of Bangladesh promotes renewable energy through:
- SREDA (Sustainable and Renewable Energy Development Authority) incentives.
- RE Policy 2008 and Updated Renewable Energy Targets (2030).
- Tax exemptions and low-interest loans for renewable projects.
- Net Metering System for grid-connected energy producers.
Besides that, international organizations like IDCOL, GIZ, and ADB support biogas development with soft financing and technical support.
15. Risk Factors and Mitigation
| Risk | Impact | Mitigation Strategy |
|---|---|---|
| Feedstock Supply Fluctuation | Medium | Long-term contract with farms |
| Technical Failure | Low | Use proven German/Chinese technology |
| Gas Leakage | Low | Regular maintenance and gas monitoring |
| Market Price Change | Medium | PPA (Power Purchase Agreement) with fixed rate |
| Regulatory Delay | Medium | Early approval from SREDA and DOE |
16. Financial Analysis Summary
| Indicator | Value |
|---|---|
| Total Project Cost | 180 Million BDT |
| Equity | 72 Million BDT |
| Debt | 108 Million BDT |
| Annual Revenue | 72–82 Million BDT |
| Annual Operating Cost | 45.5 Million BDT |
| Annual Net Profit | 17–22 Million BDT |
| ROI | 20% |
| Payback Period | 4.5 Years |
| Project Life | 20 Years |
17. Sustainability Impact
A 1 MW biogas power plant can serve 1,000 rural homes or 50 small factories, reduce environmental pollution, and promote green industry in Bangladesh. Because it runs on waste, it ensures circular economy principles—turning waste into wealth, power, and jobs.
18. Conclusion
The Biogas Power Generation Unit project in Bangladesh is more than just an energy venture—it’s a social revolution powered by sustainability. It reduces pollution, generates green energy, and creates economic value in rural communities. With rising government focus on renewable energy, the timing for such projects is perfect.
Investors, industrialists, and agro-entrepreneurs should explore this sector before it becomes crowded. The technology is proven, the policy support is strong, and the returns are stable.
19. Call to Action
We, RAYHANS and China Bangla Engineers & Consultants Ltd. (CBECL), prepare bankable project profiles for biogas, renewable energy, agro, textile, and industrial sectors—both in Bangladesh and abroad.
If you want a customized, investment-ready project profile for bank loan, investor presentation, or government approval—
Contact us today.
📧 Email: [email protected]
🌐 Website: www.cbecl.com
📞 Phone: +8801716752370
Let’s build a cleaner, greener Bangladesh—one biogas plant at a time.