Anaerobic Biogas Digester Project in Sleman Yogyakarta - Indonesia

Sleman, Yogyakarta, has a rapidly growing agricultural sector with significant production. However, the high volume of agricultural waste that has not been optimally utilized presents a challenge to environmental sustainability and farmers' economic well-being.

Anaerobic Biogas Digester Project

1. Background

Sleman, Yogyakarta, has a rapidly growing agricultural sector with significant production. However, the high volume of agricultural waste that has not been optimally utilized presents a challenge to environmental sustainability and farmers' economic well-being. An innovative solution is the processing of agricultural waste into renewable energy, particularly biogas, which can be used as an alternative energy source for household and industrial applications.

Currently, livestock manure, agricultural residues, and food waste from households and markets remain underutilized. Through anaerobic digestion technology, these wastes can be converted into clean energy while also producing valuable byproducts such as organic fertilizers, soil conditioners, and animal feed additives. This project aims to establish an anaerobic biogas digester facility to enhance energy security, promote sustainable farming, and reduce environmental pollution.

2. Problem Solving

  • Underutilization of livestock and agricultural waste.
  • The need for renewable energy for industrial and household use.
  • Dependence on non-environmentally friendly fossil energy sources.
  • The need to improve farmers' welfare through business diversification.
  • Excessive waste disposal contributing to pollution.

3. Selected Technology

The main technology used in this project is an anaerobic biogas digester, which converts organic waste into methane gas (CH₄). The gas can be used as a fuel source for households and industries. This technology is highly efficient and has been widely implemented in agricultural and industrial settings.

The process involves:

  • Collection and preprocessing of organic waste.
  • Anaerobic digestion in a sealed reactor to produce biogas.
  • Purification to remove H₂S and CO₂, ensuring clean energy output.
  • Utilization of digestate as organic fertilizer, soil conditioner, and animal feed additive to enhance agricultural productivity.

4. Engineering & System Design

  • Anaerobic Digester: Initial capacity of 100 m³, expandable to 500 m³.
  • Biogas Purification System: Removes impurities and enhances gas quality.
  • Compressed Biogas System: Converts biogas into CNG for efficient distribution.
  • Energy Distribution System: Piped gas or bottled gas for households and industries.
  • Wastewater Treatment Plant (WWTP): Treats residual liquid waste to prevent pollution.
  • Byproduct Processing Unit: Converts digestate into organic fertilizer, soil conditioner, and animal feed additives.

5. Financial & Investment Feasibility Study

  • Phase 1: Biogas production capacity for 500 households and small industries.
  • Phase 2: Expansion to reach 1,500 households and medium-scale industries.
  • Phase 3: Full-scale commercial distribution through CNG bottling and transportation.

Investment Funding: This project will be 100% funded by investors, ensuring full financial support for its development and expansion.

6. Market Analysis & Revenue Streams

  • Potential Buyers of Biogas: Households, food processing plants, poultry farms, and small industries.
  • Distribution Channels: Bottled biogas (CNG), direct piping, or bulk sales to businesses.
  • Additional Revenue Streams: Sale of organic fertilizer, soil conditioners, and animal feed additives derived from digestate.
  • Government Incentives: Carbon credit trading and renewable energy subsidies.

7. Project Management & Structure

  • Project Director
  • Engineering & Construction Manager
  • Financial Controller
  • Operational & Maintenance Manager
  • Marketing & Sales Manager

8. Investment Cost

Item

Cost (USD)

Digester Construction

$190,000

Biogas Purification & Compression

$130,000

Distribution System

$95,000

Wastewater Treatment Plant

$65,000

Byproduct Processing Unit

$50,000

Land & Infrastructure

$1,200,000

Legal, Permits, and AMDAL

$250,000

Marketing & Sales Budget

$180,000

Technology Licensing & Installation

$150,000

Construction & Commissioning

$250,000

Early Production Costs (6 months)

$120,000

Total Investment

$2,680,000

9. Construction Schedule

  • Month 1-2: Planning & Feasibility Study
  • Month 3-5: Digester & Infrastructure Construction
  • Month 6-7: Installation of Purification & Distribution System
  • Month 8-9: Testing & Optimization
  • Month 10: Operational Launch

10. Investment Strategy & Exit Strategy

Investment Strategy

  1. Equity-Based Investment: Investors will own shares in the project and receive returns through profit-sharing.
  2. Debt Financing Model: Investors provide loans with agreed-upon interest rates and repayment schedules.
  3. Revenue-Sharing Model: Investors receive a percentage of total revenue over a defined period.
  4. Government Grants & Subsidies: Additional support through renewable energy incentives.

Exit Strategy

  1. Merger & Acquisition: The project can be acquired by a larger renewable energy company.
  2. Initial Public Offering (IPO): The company can go public after achieving stable growth and profitability.
  3. Buyback Option: Investors can exit by selling shares back to the company after a predefined period.
  4. Third-Party Sale: Shares can be sold to new investors or strategic partners.
  5. Revenue-Based Exit: Investors exit after receiving predetermined profit returns.

11. Financial Breakdown & ROI

  • Total Investment: $2,680,000
  • Revenue from Biogas Sales: $300,000/year
  • Revenue from Organic Fertilizer, Soil Conditioners, and Animal Feed Sales: $100,000/year
  • Total Annual Revenue: $400,000/year
  • Break Even Point (BEP): 6-7 years
  • ROI (Return on Investment): 18% per year after BEP

12. Operational Costs

Category

Cost (USD)

Workforce (15 employees x $500)

$7,500/month

Maintenance

$2,000/month

Administration & Operations

$1,000/month

Total

$10,500/month

13. Scalability & Future Growth

  • Year 1-3: Operational stabilization and market expansion.
  • Year 4-5: Expansion to provide biogas for 7,500+ households.
  • Beyond Year 5: Full-scale commercial production, additional CNG transportation, and integration with industrial energy solutions.

14. Conclusion

This project presents a sustainable solution for agricultural and livestock waste management while generating renewable energy. With an effective distribution model, government incentives, and revenue diversification strategies, it ensures economic viability while delivering substantial environmental and social benefits. The project is poised to contribute significantly to the region's sustainable development and energy independence, with 100% investment funding provided by external investors.

For investors who are interested and want to get more detailed information, please contact us at email: afakar@gmail.com; whatsapp: +6281368643249


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