BUSINESS PLAN ON BIOGAS PRODUCTION AND PACKING

GROUP MEMBER 1. ABERA ZEWDU 2. EYUEL ABATE 3. FITSUM WOLDEMESKEL 4. GETINET GANTA

ID 00052/02 00332/02 0055/02 00381/02

SUBMITTED TO ABIYOU SOLOMON (Msc)

1. Executive Summary Ethiopia is well riches with a variety of energy and other natural resources. However, much of the energy resource available has yet to be exploited. The renewable energy resources with potential include Biogas, hydropower, and alternative forms of energy- solar, wind and geothermal energy. With the depletion of fossil fuel and the subsequent increase in price of these inputs, alternative energy sources such as Biogas produced on farm from animal waste may have application. In addition, the waste material from this process is valuable fertilizer that could reduce the need for bought chemical fertilizer. Waste management is increasingly a problem as dairies become larger, especially for green field sites that must meet stringent Environmental protection. Biogas production systems provide an option for helping to deal with this problem by treating the waste as a resource. Biogas is decomposition of waste materials without oxygen gas in a biogas plant and form a mixture of gases. This mixture is the biogas. Its main constituent is methane. This is used as a fuel for cooking and lighting purposes for house hold and hotels. It is none toxic, environmental friendly, and high quality with low cost. Continuous power is a feasible based startup enterprise dedicated to providing a cost effective renewable energy source (Biogas) in the form of different products, categorized according to different consumption patterns that will be extremely beneficial for our target costumer in the face of this sever energy crises in the country. The product offering of the enterprise include Biogas for house hold and for hotel. The enterprise will be formed in 2015 and it will have four founder members. The enterprise receives the input or waste material (caf food scrap) for the biogas production process from Jimma University student caf and it is far 8Km from the enterprise location. The initial capital required for the establishment and operation of the enterprise is 855950 ETB

2. Description of the Business The business can be described with respect to the product produced by the enterprise, the market opportunity of the service, and the available initial capital owned and required by the enterprise. The process is centered locally; a production of Biogas and packing as a product and supply to local market demand and in the future to export the product using the same materials as the outdoor producers which all are available in the local market. To promote the product is efficient, clean, safe, and affordable, substantial health, economic, social and environmental benefits. If Production of the packing Biogas is commenced; the business is clearly virgin with untapped potential of market opportunity, with no doubt. This is because the Biogas packing is produced with materials available locally, which are same as those packed gases that are found in the market, at low cost and high quality which in turn makes its selling price to be even lower than price of other packed gases. Properties of Biogas
Comparatively simple and can be produced easily. Burns without smoke and without leaving ash as residues. Household wastes and bio-wastes can be disposed of usefully and in a healthy manner. Reduces the use of wood and to a certain extent prevents deforestation. The slurry from the biogas plant is excellent fertilizer.

The important parts of biogas plant are

The tank where biogas undergoes decomposition (digester) The tank where biogas is mixed with water (mixing tank) The tank where slurry of biogas is collected (out flow tank) Arrangement to store gas.

Due to the action of bacteria in the absence of oxygen, biogas is produced in the plant. This is collected in the tank. In the gasholder type plant, the cylinder rises up as the gas fills the tank and the storage capacity increases.

2.1.General Objectives Producing, packing and distributing the Biogas throughout the country as well as exportation in the future with high quality. System design and construction, financial feasibility and operation management were evaluated at this site. To be involved in the technology transfer activities. Promote the benefits and uses of Biogas energy to the society. For the future upgrading production capacity of the enterprise.

2.2.Specific Objectives Satisfy customers need Create job opportunity Protect environmental pollution Introducing Biogas technology to the community

2.3. ProductSpecifications Accordingly, it is conceivable to describe the product specifications. As it is already mentioned in the description of the business, the business is production of Biogas and packing. The product specifications and materials that are necessary to build the digester and other components of the biogas plant are described as: HDPE ,PPR, galvanized Pipe and fittings 2 inch diameter and 12m length Compressor Pump Steel bar Gate valve Cements Stone Brick Concrete

Diameter and length of the digester is 6m for each. The volume of the digester is approximately 170m3

 Volume of Waste storage 10m3 Volume of gas holder 85m3 Initial number of cylinders for gas packing 500 pcs with holding capacity of 20Kg for each. Initial waste input 100 tones. Expected amount of production per day is 50 cylinders. Amount of Waste input per day is 500Kg. Price of packing cylinder 225 ETB only for the filled gas

2.4.Initial Capital Requirements Biogas production requirements land biogas tanker compressor safety equipments office furniture S.N. 1. 2. 3. 4. 5. 6. Requirements Land lease cost Construction Biogas tanker Compressor Safety equipments Office furniture Tables and Chairs equipments Desktop computer Printer Grand total cost Units m2 Pcs Pcs Pcs Set Pcs Pcs Pcs Pcs Quantity 1000 3 1 1 6 3 4 1 1 Total Cost 300,000.00 380,000.00 50,000.00 35,000.00 1250.00 3,000.00 3000.00 7,000.00 4,500.00 783750.00

Table 1. Machinery and equipment with cost.

Other requirements Electric consumption Telephone consumption Water consumption

biogas cylinder

S.N 1. 2. 3. 4. 5.

Requirements Electric power consumption Telephone Consumption Water consumption Biogas cylinder Total cost

Cost Per month 400.00 400.00 150.00 12500.00 13,600 Birr

Cost per Year 4800.00 4800.00 1800.00 150,000.00 163,200.00Birr

Table.2. Other Requirements with cost

Raw materials requirements waste product packaging cylinder

compressor

S.N. 1. 2. 3.

Raw Material Waste product(transportation) Packaging material Compressor

Units Kg litter Kw

Quantity 500 1 1

Cost (Birrs) 50 174.50 0.50 225

Cost of a single filled biogas cylinder

Land, Building, Civil work requirements and Plant Layout

The enterprise will have a land costing maximum of 300,000 Birrs. The proposed location of the enterprise can be in Jimma town.

Human resource and Training Requirements Man power requirement of the enterprise is 13 persons. The list of man power and salary requirement is as presented in table. The list of personnel required S.N. 1 2 3 4 5 6 7 8 Manager Accountant Store Keeper packaging unit Daily Laborer guards Quality Control Technician Quantity 1 1 1 2 3 1 2 2 Monthly Salary (Birrs) 1*3000.00 1*1500.00 1*1500.00 2*2000.00 3*900.00 1*1500.00 2*1200.00 2*400 16,600.00 Yearly (Birrs) 36,000.00 18,000.00 18,000.00 48,000.00 32400.00 18000.00 28800.00 9600 208800.00 Salary

Personnel Position Manager Accountant Store Keeper Packaging unit Daily Laborer Quality Control Technician Guard Sanitary worker

Total Salary

3. Marketing Plan 3.1. Product description

We have described about the product including its specifications in the business description section of this plan. In general, the enterprise is eager to construct biogas plant packed in the plastic baggage locally as a product and supply to local market demand. Concerning market opportunity of the product, the construction of biogas plant and packing in baggage in Ethiopia for the first time by the business owners, this process of packaging never done in Ethiopia, even if it was already exist technology used by other abroad country. It has never been produced by any other body in the country implying that if packed in baggage production of the biogas is commenced; the business is clearly happing for the first time and not yet used potential of market opportunity, with no shadow. Since the biogas is produced from waste materials that available easily ,such as the waste food from Jimma Unveritity and from town as input material, which are used as alternative energy source with low cost than

conventional fuel, so this attract more demand and it is the best technology never registered as an innovative work by the Ethiopia Intellectual Property Right nowadays .the energy demand of the people is radically increasing in fast rate ,as result, applying this technology is feasible. 3.2.Market Area The marketing areas of the product depend on the energy need of the customers. The target customers are domestic local people and other region people when the business is getting grown, and the location of production is already mentioned to Keto Foridisa kebele in Jimma town. Therefore, the beginning market area is selected to be in Jimma town, and when the financial potential of the enterprise gets stronger, the marketing area will include all over Ethiopian region where bio gas plant will be is constructed and the ethanol gas is purchased in baggage where the product can be distributed to those who need. 3.3. Target Customers According to our promotion, the main targeted costumers are house hold and hotels for their different needs. 3.4. Competitor Analysis Domestic cooking fuels used in Jimma town include kerosene, electricity, fuel wood, charcoal and residues (wood workshops, coffee mills). Kerosene and fuel wood are the most

important in terms of users. Ethanol is a new potential fuel for households in Jimma town and other urban area. The key stakeholders in the modern and traditional domestic fuel market are the domestic fuel market in Jimma town may be divided into the modern fuel sector constituting kerosene, electricity and the traditional biomass sector consisting of fuel. Competitor analysis criteria Lower selling price of the product with as compared with the other energy sources Considering no negative effect of using ethanol as energy source on the health and environment. Easy to hold in the baggage as compared to the above energy source. It is environmental friendly when related to other. SWOT analysis 1. Strength Low price Environmental friendly Initiative step for alternative energy Qualified management Government and public support No complexities in production of biogas Agricultural support No harmful material waste No pollution Ozone friendly Use of animal wastage

2. Weaknesses Product rate is low No more outlet Special technical staff Financial constraints

3. Opportunities

 4. Threats 3.5.Product Demand

Abundant ingredients for biogas production Economically feasible and socially acceptable concept Huge potential of around 1million houses Great backup from biogas support program

Fierce competition with gas grid extensions Antibiotics used in the feed of animal can cause difficulties in production Forest areas in Jimma hardly serves as the carbon sink

As information gathered from the energy demand, it is sure that the whole local people and those far requires the methane as a means of fuel for the household, so targeted market include Jimma town energy demand ,then after Ethiopian town as a whole. 3.6. Market Share It reduces the energy cost that requires and also, its contribution in saving the foreign currency, it initiates enterprise to build capacity for constructing other, it also back up five years transformation planning. 3.7. Pricing Competition is an important consideration in pricing the product from the view point of controlling the market over the competitors products. On this basis, a comparative method of pricing is used to determine price of the enterprise product. It has been mentioned that the quality and other features of the product are similar to those of the competitors. Provided that these conditions are considered, price of the product is determined as production cost (including Administration cost, Marketing cost, Amortization cost) + profit + Tax (15%). Therefore, the selling price of one cylinder gas is 225.00 birrs including VAT (15%). 3.8.Sales Forecasts Awareness creation -Public recognition and acceptance of ethanol as a cooking would

require extensive public education and promotion campaign through a variety of media and events. This is evident as most households have little or no information on ethanol say on local production capacity, potential uses and its comparative advantage over alternative fuels. The first and most important step in the process of ethanol fuel market development should therefore be to design an appropriate public education and awareness campaign. Such campaign will involve the use of a variety of media such as radio, TV and newspapers, distributed brochures and posters, posted signs at highways and organized workshops. And During the early stage awareness campaign should primarily focus on availability and sustainable supply of ethanol for cooking; efficiency and safety of the fuel and the stoves; comparative cooking cost ethanol and competing fuels; and health, social, economic and environmental benefits of using locally produced ethanol. Promotional campaign Public recognition and acceptance of biogas as a cooking would require extensive public education and promotion campaign through a variety of media and events. This is evident as most households have little or no information on biogas say on local production capacity, potential uses and its comparative advantage over alternative fuels. The first and most important step in the process of biogas fuel market development should therefore be to design an appropriate public education and awareness campaign. Such campaign will involve the use of a variety of media such as radio, TV and newspapers, distributed brochures and posters, posted signs at highways and organized workshops. During the early stage awareness campaign should primarily focus on availability and sustainable supply of biogas for cooking; efficiency and safety of the fuel and the stoves; comparative cooking cost biogas and competing fuels; and health, social, economic and environmental benefits of using locally produced biogas. Promotional campaigns Printed media: A. Information Leaflets: trifoliate, providing information on product description and why it is being promoted as a domestic cooking fuel. Leaflets could be made available at gas stations, supermarkets, and other frequently visited places such as banks and post offices, and government offices; B. Users guide: trifoliate, explaining safe and efficient operation of biogas stove and safe

storage and handling of biogas fuel. This users guideline should be distributed to stove retailers and be included in stove pack; C. Banners and posters: providing brief but clear message on the use of biogas for cooking, and where biogas fuel and stoves are available; i. Stickers: introducing biogas fuel, and distributed where biogas fuel and stoves are sold; and
ii.

Newspapers: quarter to half page advert on widely circulated newspapers.

Electronic media a) Radio: short radio adverts on where and at what price biogas fuel and CC stoves are available; some discussion programs on biogas as household cooking fuel; b) TV: advertising the availability and demonstration of safe use of biogas for cooking; and c) Short film on CDs: preparation and distribution of short void clips on CDs where use of biogas is demonstrated, and also contains basic information on biogas and other cooking fuels (safety, social, economic and environmental issues). Other means of promotion Bazaars/professional and public meetings: actual cooking demonstration using biogas, demonstration of safety features, explanation of the benefits of biogas. Demonstrations to housing cooperatives Promotional campaign should also directly focus on end-users living in the recently constructed low-cost condominiums through demonstration and distribution of leaflets. Training of Retail Staff Training of retail staff biogas retailers will ensure that they are knowledgeable enough to persuade and inform the end-users at the point-of- purchase. Training may include the comparative cost, health, economic and environmental benefits of biogas cooking fuel, safety measures in stove operation and fuel handling and storage. Design and Execution of Campaigns Radio and TV campaigns should be designed by experienced advertising agency. The agency

should propose different promotional packages. The campaign should be continuous and the agency should supervise the execution of the promotional activities. At least two radio stations should be used, one of which would be FM Radios and Radio Ethiopia, while TV advertisement would be made on ETV. Promotion would be in the Amharic language and transmitted between 8 to 9:30 pm on Saturdays and Sundays where entertainment programs are transmitted. The printed media should be designed to have attractive appeal and should be on good quality paper. Banners and permanent road sign posters should also be very appealing and should be placed in places of highly frequented areas. The contracted advertising agency should propose alternative designs and locations where such materials would be displayed. Marketing Strategy The enterprise follows Energy Resources, Supply and Consumption need in the Ethiopia and it works on alternative energy demands that are tremendously increasing, so this is the fuel for the enterprises to start and to have higher confidence on the market. Even though there are other form of satisfying energy demand like hydropower, solar energy, wind and geothermal etc., in comparison of this entire alternative, the enterprise found the renewable energy resources biogas as the best choice to satisfy the market need with cheap expenditure and with little environmental effect. The 4ps principle 1. Product Our basic and innovative product is biogas 2. price Our per unit price is 225 birr and whole promotion is based on the price strategy. We decided to compute with low price. This will increase production and sale rate, so the revenue increases ultimately. For biogas cylinder and electricity we have competitive price .for this two products we have cost pulse profit margin. We will offer biogas with - %less price than other conventional fuel. 3. Placement

It is an important factor, since the biogas production place is near to the city; it is not far from the town of distribution area. The customers can come and buy the product, but we use rent vehicle to transport the waste to production place.

4. Promotion It is our aim to spread information biogas for better life and economical feasible in the mind of customer .and we will use different methods: Personal selling Awareness programs Event Radio Public relation(mouth speak)

3.9.Marketing Budget

4. Production/ Operation Plan Biogas develops through an aerobic fermentation. During this process organic substances are decomposed by microorganism. The substances added to the system produce the biogas in an oxygen free environment. In the first step the organic substances are divided into molecular components (sugar, amino acid, glycerin and fatty acid). Microorganisms convert these intermediate products into hydrogen and carbon dioxide, which are then transformed into methane and water according to chemical reaction of Equation; CO2 + 4H2 CH4 + 2H2O 4.1.Location

The starting location for manufacturing the product is Jimma town Kitto furdisa kebele, behind Jimma institute of technology Kitto furdisa campus. In the future, as an expansion plan of the enterprise, the marketing locations will be in Addis Ababa. 4.2.Production process

4.3.Plant Layout Basically each biogas plant consists the same principle components; a digester, a gas holder, tubes, mixer etc. the rough layout is shown on the figure below

4.4. Production capacity and program 4.5. Fixed Capital

S.N.

Requirements

Units m2 Pcs Pcs Pcs Set Pcs Pcs

Quantity 1000 3 1 1 6 3 4

Total Cost 300,000.00 380,000.00 50,000.00 35,000.00 1250.00 3,000.00 3000.00

1. Land lease cost 2. Construction 3. Biogas tanker 4. Compressor 5. Safety equipments Office furniture and equipments Tables chairs

Desktop computer Printer Grand total cost

Pcs Pcs

1 1

7,000.00 4,500.00 783750.00

The fixed capital owned by the enterprise is tabulated as in table

4.6.Raw Materials and Supplies The raw materials and supplies required by the enterprise are given below as in table. The required raw materials and supplies along with their cost for a single packed biogas production

S.N.

Raw Material

Units Kg litter Kw

Quantity 5 1 1

Cost (Birrs) 50 174.50 0.50 225

1 Waste product(transportation) 2 Packaging material 3 Compressor

Cost of a single packed biogas

table Raw materials and supplies for the enterprise

4.7.Labor Requirements, availabilities, and cost The required man power for the enterprise is available and is shown by the following table as Table S.N. Personnel Position 1 Manager Quantity 1 Monthly Salary(Birrs) 1*3000.00 Yearly Salary (Birrs) 36,000.00

2 3 4 5 6 7 8

Accountant Store Keeper Packaging unit Daily Laborer Quality Technician Guard Sanitary worker

1 1 2 3 Control 1 2 2 Total Salary

1*1500.00 1*1500.00 2*2000.00 3*900.00 1*1500.00 2*1200.00 2*400 16,600.00

18,000.00 18,000.00 48,000.00 32400.00 18000.00 28800.00 9600 208800.00

4.8.Enterprise Overhead Expenses

The enterprise overhead cost incurring segments are given as table 4.8.1.

S.N 1. 2. 3. 4. 5. 6.

Requirements Electric power consumption Telephone Consumption Paper and writing material Plant maintenance Water Consumption Total

Cost Per month 400.00 400.00 150.00 1000.00 150.00 2100

Cost per Year 4800.00 4800.00 1800.00 12000.00 1800.00 25,200

4.9.Production Cost Production Cost The production cost includes cost of raw materials and supplies, cost of direct labor, and overhead costs. As these cost components are given in the above tables, assuming 25 working days in a month and 100m3 biogas per day production capacity Cost of Raw materials and supplies = 225 Birrs/ packed biogas Direct Labor cost = 16,600.00Birrs per 1250cylinder =13.28 Birrs/cylinder

Indirect

Enterprise

(Overhead)

costs=2100.00Birrs

per

1250cylinder

1.68Birr/cylinder

5. Organization and Management The business is organized as a private enterprise at the level of micro and small scale. For the business to be operated, the enterprise is structured in such a way that it has management personnel under which an accountant, a store keeper, laborers, a quality control technician, guard and secretary are responsible for their respective tasks.

5.1.Management and operations of the enterprise The business is organized as a private enterprise at the level of micro and small scale. For the business to be operated, the enterprise is structured in such a way that it has a management personnel under which an accountant, a store keeper, packaging unit, daily laborers, a quality control technician, guards are responsible for their respective tasks. The organizational structure is shown by the organization chart shown in the next subtopic.

5.2.Organizational Structure The organization chart showing organizational structure of the enterprise is given by the following chart based on the tasks of responsibility

6. Financial Plan 6.1.Basic financial Assumptions The costs associated with raw materials and supplies, direct labor, overhead expenses, and depreciation of fixed capitals vary year by year because of market fluctuations. The variation is expected to be the result of probable market inflation and other unprecedented factors that may raise costs. Therefore, it necessitates assuming cost factor figures that account for the cost inflation. The following assumptions are made for the next 2 year Yearly Cost variation rate (%) 5 10 15 10 5
Table. Operating Assumptions

Description Raw materials and Supplies Expenses Direct Labor Expenses Indirect (overhead) Expenses Depreciation Rate of Fixed capitals (machineries and equipments) Selling price

6.2.Project Costs

The total investment or project cost required to implement this business is divided into fixed costs of machineries, equipments, raw material and supplies, direct labor and miscellaneous expenses. There are also pre-operating costs for electric, telephone, and water supply lines as long as the enterprise is already established well by the owners monetary expense. Therefore, the amount of money required for the pre-operating costs is 72,200.00Birrs. The capital investment requirement is described by table. Costs for: construction and Equipment Pre investment studies Pre-0perating costs Preparatory investigation Telephone installation Management of project implementation Staff and labor training Electric installation Water lines installation Total pre operating cost Total
Table . Capital Investment Requirement

Cost (ETB) 783750.00 2000 3000 1000 50,000 5000 10,000 1200 72,200 855950

6.3.Source of finance For our project all the cost needed for implementation is loan from Small business supporting agencies which is to be paid back at the end of the second year, so this will cover all required materials cost, machinery and all necessary plants input. 6.4. Projected Financial Statement

Year 1 Revenue Raw materials Direct labor cost 3,375,000 67500.00 208800.00

Year 2 6,017,920.00 70875.00 229680.00

Production overhead Total cost of Production VAT Gross Profit Pre operating Expenses Depreciation expense Net Profit

25200.00 3,073500.00 506,250.00 2,567250.00 72,200 20, 880 2,474,170

28980.00 5,688,385.00 902,688.00 4,785,697.00 22,968.00 4,762,729.00

This projected income statement shows that the business will earn a net profit of 4,762,729.00 birr at the end of the second year.

6.5. Project Appraisal The investment capital of the business comprises of the fixed capital and the pre-operating expenses of the business. The total project capital of the business is therefore 855950.00 Birr and is shown by Table The return on Total capital Investment (ROI): This RIO is calculated for the first year

These imply that the business starts to pay back the full initial investment capital of the project by the end of the second year showing that it is viable. Break-Even Analysis (BEP): For this business, the break-even analysis is required to be used as an indicator to determine how much should be produced or sold at minimum to ensure the project does not lose money. Annual Sales: Annual Fixed Costs: 3,375,000 Birr 614605.34 Birr

Annual Variable Costs: Break Even Point (BEP) is given by

7,767,840 Birrs

BEPyear1

AnnualSales * AnnualFixe dCosts 11100000* 614605.34 2,047,356. 45Birrs AnnualSales AnnualVariableCosts 11100000 7767840

Therefore, the annual sales revenue should never be less than this annual sales specified by the break-even point calculation which is 2,047,356.45 Birrs. In this business, the annual sales will never be less than the break-even point because, as per the agreement with domestic investors, the minimum annual sales revenue is by the first year which is equal to 11,100,000 Birrs. Therefore, the project is viable and the profitability of the business has been shown by the five years projected financial statement. 6.6. Sensitivity Analysis This business maybe affect by different factor while the time goes in the way doing business. The main inflation that are expected to happen is that comparator may arise with qualified biogas product, the labor cost may increase ,the sealing price of raw material goes high ,transporting cost of waste material rise, governmental duty like tax may applied . This impact is shown in percentage as follow: the raw material supply& overhead expense show 10 increments, depreciating fixed capital 3%, and sailing price show decrement by 5%yearly and overhead expense varies with 15%Incremetnt. By this rate the project will be profitable by about 290% of the total capital investment at the end of the first year. This implies that the business will return the initial investment cost and earn about 190% of the investment as profit. Implicitly, this assures that the business is so much far from being sensitivity to the market inflation, this imply the business can resist the inflation that may happen unexpectedly. 6.7. Risk analysis and Strategy The problem that can encounter us in our business in regarding the income is the lack of awareness about the biogas. At the beginning of our business we may not have enough customers that purchase our product therefore we have to aware the community through an advertisement.

7. Social, Economic and environmental Analysis 7.1. Social benefit analysis This biogas enterprise helps the community by providing them a biogas which is easy to use. Since the burning of biogas produce no smoke, the users of our biogas will not face the problems associated with smoke which was there in the utilization of wood and charcoal fuels. The community will also be benefitted from the slurry (Biogas waste) by using it as a natural fertilizer which is recommended rather than synthetic fertilizer in their farming land. The creation of job opportunity is the other benefit of our business. This alternative energy resource especially biogas offer significant potential in terms of reducing women's drudgery and improving health condition, and allowing rural as well as urban women's to have enough time to involve in income generating, social and community development activities for their self enhancement and empowerment. Often the beliefs, prejudices, habits etc. prevailing in the society pose problems for promotion of the biogas technology. Factors such as educational background and income of the beneficiaries may also affect the speed of biogas technology. This has to be tackled in two ways; I. II. we have try to introduce the biogas technology to the society training some of the beneficiaries to enable them to take the message of the biogas technology to the wide society 7.2 Economic Analysis Energy sector is one of the most important sectors driving the economy of Ethiopia and that's why some of the latest fluctuations due to the energy crisis in Ethiopia having an advert impact on the economy the country coupled with the widening gap between demand and supply The enterprise helps the countrys economy by paying tax to government and collecting VAT of 506,250.00 from customers. It also encourages others to begin such entrepreneurial businesses which soundly increase the economic growth of our country. 7.3 Environmental Analysis

Since biogas is a green technology meaning it doesnt emit hazardous gases that harm the environment, there are no problems associated with the implementation of the plant or the use of its product the biogas. Regarding the environmental sanitation, the waste food caused problems will be decreased. Now days the government is attempting to raise the living standards of its citizen and has meant that economical has largely has taken precedence over environmental issues. Unchecked use of hazardous chemical, vehicle emission and industrial activity has contributed to a number of environmental and health hazards; chief among them is water pollution. Much of the country suffer from lack health and clean drinking water due to pollution The overall impact of the biogas technology in terms of environmental conservation is considerably beneficial as the process provides an environmentally sound means of managing animal and biomass wastes. An important advantage of biogas technology is that it results in considerable reduction in fuel wood demand. The substitution of fuel wood by biogas leads to three main benefits; First it slows down the deforestation trend, thus achieving numerous environmental benefits. Secondly, it generates less air pollution by the combustion of biogas instead of wood, fuel or animal dung. finally, we get natural fertilizer from biogas sludge, which is why biogas offers a safe and clean source of alternative energy

Appendix