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Project Profile of Biogas Power Generation Unit in Bangladesh

    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.

    ParticularsDetails
    Project TitleBiogas Power Generation Unit (1 MW Capacity)
    Project LocationMymensingh / Bogura / Jessore (Proposed Sites)
    Project TypeRenewable Energy Generation
    Installed Capacity1 Megawatt (MW)
    Raw MaterialsCow Dung, Poultry Litter, Crop Residue, Organic Waste
    TechnologyAnaerobic Digestion with CHP (Combined Heat and Power)
    Project Implementation Time12 Months
    Estimated Project CostBDT 180 Million (Approx. USD 1.6 Million)
    Expected Project Life20 Years
    Ownership PatternPrivate 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:

    1. To generate clean electricity from organic waste.
    2. To reduce methane emission and environmental pollution.
    3. To create rural employment opportunities.
    4. To produce organic fertilizer as a byproduct.
    5. 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 SourceDaily Requirement (tons)Source Distance (km)Remarks
    Cow Dung605From dairy farms
    Poultry Litter258From poultry sheds
    Crop Residue / Straw1510Local farmers
    Vegetable Waste54Nearby markets
    Total Feedstock105 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.

    1. Collection and Pre-Treatment – Raw materials are gathered and mixed with water to form slurry.
    2. Anaerobic Digestion – The slurry is placed in sealed digesters where bacteria break down organic matter, producing methane gas.
    3. Gas Cleaning and Storage – Hydrogen sulfide and CO₂ are removed from raw gas.
    4. Power Generation – Clean biogas runs a generator connected to a gas engine to produce electricity.
    5. 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

    ActivityDuration (Months)Cumulative Progress (%)
    Project Planning and Feasibility Study15%
    Land Development and Civil Works325%
    Equipment Procurement350%
    Installation and Erection375%
    Testing and Commissioning190%
    Commercial Operation1100%
    Total Duration12 Months

    7. Estimated Project Cost

    ParticularsAmount (BDT Million)
    Land and Site Development10
    Civil Construction and Buildings25
    Biogas Digesters and Reactors40
    Gas Cleaning and Storage System15
    Power Generation Equipment (1 MW)30
    Piping and Fittings5
    Electrical and Control Systems10
    Vehicles and Transport5
    Miscellaneous Tools and Accessories5
    Preliminary and Pre-Operative Expenses5
    Working Capital10
    Total Project Cost180 Million BDT

    8. Means of Finance

    Source of FundBDT Million% of Total
    Sponsor’s Equity7240%
    Term Loan (Bank)10860%
    Total180100%

    9. Operating Cost (Annual)

    ItemAmount (BDT Million)
    Raw Material Collection and Handling12
    Labor and Salaries8
    Maintenance and Repairs5
    Utilities and Water2
    Fuel for Transport1.5
    Administrative Expenses3
    Loan Interest8
    Depreciation6
    Total Operating Cost per Year45.5 Million BDT

    10. Income and Profitability Forecast

    DescriptionUnitYear 1Year 2Year 3Year 4Year 5
    Power GenerationkWh (million)7.27.57.87.87.8
    Sale PriceBDT/kWh10.0010.0010.5010.5010.50
    Total RevenueMillion BDT727581.981.981.9
    Operating CostMillion BDT45.546474747
    Gross ProfitMillion BDT26.52934.934.934.9
    Net Profit After TaxMillion BDT1719222222
    Payback PeriodYears4.5
    ROI (Average)%20%

    11. Manpower Requirement

    CategoryNo. of PersonsMonthly Salary (BDT)Annual Cost (BDT Million)
    Project Manager180,0000.96
    Electrical Engineer160,0000.72
    Mechanical Engineer155,0000.66
    Plant Operators435,0001.68
    Lab Technician130,0000.36
    Helpers & Cleaners418,0000.86
    Security & Admin Staff225,0000.60
    Total14 Persons5.84 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

    1. Energy Independence: Decreases reliance on imported fossil fuels.
    2. Rural Employment: Creates local jobs in collection, maintenance, and logistics.
    3. Farm Income Boost: Farmers can sell waste instead of dumping it.
    4. Organic Farming: Bio-slurry acts as a natural fertilizer, improving soil health.
    5. 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

    RiskImpactMitigation Strategy
    Feedstock Supply FluctuationMediumLong-term contract with farms
    Technical FailureLowUse proven German/Chinese technology
    Gas LeakageLowRegular maintenance and gas monitoring
    Market Price ChangeMediumPPA (Power Purchase Agreement) with fixed rate
    Regulatory DelayMediumEarly approval from SREDA and DOE

    16. Financial Analysis Summary

    IndicatorValue
    Total Project Cost180 Million BDT
    Equity72 Million BDT
    Debt108 Million BDT
    Annual Revenue72–82 Million BDT
    Annual Operating Cost45.5 Million BDT
    Annual Net Profit17–22 Million BDT
    ROI20%
    Payback Period4.5 Years
    Project Life20 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.