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Appraisal of Domestic Biogas Plants in Bangladesh

H. Kabir
Associate Professor, Department of Agricultural Economics,Bangladesh Agricultural University, Mymensingh-2202, Bangladesh. Email Addresses: hkabir75@yahoo.com, Tel.: +8801716417219

M. S. Palash
Department of Project and Regional Planning, JLU Giessen, Germany

S. Bauer
Department of Project and Regional Planning, JLU Giessen, Germany

Abstract/ Executive Summary:

The main concern of paper is to appraise the cost and benefits of biogas plants in Bangladesh. Biogas activities in Bangladesh have been expanding to meet the needs of alternative energy sources and reduce of the country dependence on biomass energy. Biogas is viewed an innovative and most promising option toward a partial mitigation of the existing energy problems in Bangladesh. This study examined the cost-capacity relationships of biogas plant use while considering the financial and economic feasibility with several decision making tools. Data were collected from 150 small scale biogas plants from four districts of Bangladesh. Often three sizes of biogas plants- small (2.4 m3), medium (3.2 m3) and large (4.8 m3) were found in the sample areas. Financial and economic analyses were done based on the decision making tools of Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Net Benefit Increase (NBI). Four scenarios (with subsidy, without subsidy, health benefit, and income generate from time savings) and one scenario (carbon trading) were accounted under financial and economic evaluations, respectively and stated that biogas plants can be installed as profitable business in the potential areas of Bangladesh. The results highlighted that the investment cost would have a burden of biogas users while subsidy and credit were played a vital role to adopt the decision on biogas plant adoption. Considering five sensitive cases the investment cost also acutely inspired to implement the biogas project across the country. Finally, it may conclude that Bangladesh having a great potentiality to adopt more biogas plants, especially in the livestock prone areas for mitigating the existing environmental degradation, biomass difficulties and generating the income with good health.

Keywords: Appraisal, Biogas plant, Cost and benefit

Location:

Start Date: 00-06-2011

End Date: 00-09-2011

Program Area: Crop-Soil-Water Management

Commodity: Bio fertilizer

Objectives:

To appraise the cost and benefits of domestic biogas plants in Bangladesh.

Methodology:

The study was conducted by a survey method on respondents from June to September 2011 in six sub-districts (Mymensingh sadar, Fulpur, Chatmohor, Atghoria, Thakurgaon sadar, and Bochaganj) covering four selected districts (Mymensingh, Pabna, Thakurgaon and Dinajpur) in Bangladesh. Primary data were collected from 150 respondent households. Stratified random sampling technique was use to select the respondents since the number of biogas users in comparison to the total number of households was pretty smaller in the study zone. From the sample of households data related to direct cost and revenue, indirect benefits were collected. The data collection was carried out through semi-structured one-to-one interview based on a pre-tested questionnaire. In addition to the primary data collection, secondary data were collected from several journals, books, NGOs and Government offices in Bangladesh. Financial and economic appraisal of different domestic biogas plants based on decision making tools including NPV, IRR, PBP and NBI, and sensitivity analyses also were conducted with considering few sensitive items.

Source of Information: Bangladesh J. Agric. Econs. XXXV, 1&2(2012) 71-89

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The results highlighted that the investment cost would have a burden of biogas users while subsidy and credit were played a vital role to adopt the decision on biogas plant adoption. Considering five sensitive cases the investment cost also acutely inspired to implement the biogas project across the country. Finally, it may conclude that Bangladesh having a great potentiality to adopt more biogas plants, especially in the livestock prone areas for mitigating the existing environmental degradation, biomass difficulties and generating the income with good health.

Knowledge Management: Journal