Top of this document
Go directly to navigation
Go directly to page content

 
Business start-up

2

Biogas Solutions Group

The Biogas Solutions Groups is a wholesale supplier of small-scale biodigesters to public and private development groups.

Biogas Solutions Group will build and distribute pre-fabricated biodigester systems for development groups across Latin America. Biodigester end users realize economic and other benefits in the form of waste treatment, renewable energy, improved health conditions, and organic fertilizer. The national economy benefits from development funds aimed at the reduction of GHG emissions through biodigester installations.

Facts

Legal status business
Not registered
Year of establishment

2010

Sales (US$)
Two years ago:
Last year:
This year (forecast): 898,220
Year 2 (forecast): 1,563,965
Year 3 (forecast): 2,505,375
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 6,257
Year 2 (forecast): 72,080
Year 3 (forecast): 231,100
Total number of Employees
Two years ago:
Last year:
This year (forecast): 6
Year 2 (forecast): 8
Year 3 (forecast): 20

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 38,800
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 115,350
Total finance needed (US$) 154,150

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 9,150
Loans (debt) 60,000
Share capital that you seek from investors (equity) 65,000
Other sources 20,000
Total finance needed (US$) 154,150

The Business

What is your product/service?

The Biogas Solutions Group will produce pre-fabricated high-quality biodigesters and biogas management equipment for wholesale to NGOs, government agencies, and private businesses that are conducting biogas installation projects. We also produce educational material and manuals to support installation, operations, and maintenance of biodigester systems. Our complete systems will include repair kits and replacement parts.

What customer need/problem do your products/services satisfy?

Millions in Latin America could benefit from biodigesters, but do not have access to the technology. Biodigesters provide renewable energy, waste treatment, GHG reductions, health benefits and fertilizers.

How will you make the product/service?

We eliminate inefficiencies in the current biodigester installation process by assembling systems and shipping them to groups that need them. The production process for our biodigesters is short and straightforward as most of the connections are made with PVC adhesive or metal clamps. We receive pre-fabricated polypropylene vessels and assemble the effluent inlet and outlet connections and the gas management systems in our main facility.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Our first year of sales will be through our established partner groups that are currently involved in rural, low carbon, or health intervention development. Additional clients will be driven to our website through online marketing and social networks. The development groups in our target market have field technicians and outreach specialists that will act as our distribution network. We will package and ship complete systems to these groups.

To whom are you selling, what is your market?

There are over 300,000 farms and millions of households in Mexico alone that could currently utilize biodigester technology and realize economic, environmental, and health benefits. Market estimates in other areas of Latin America show the regional market to be many millions of households and farms. This market is primarily accessed through NGO, government, and private groups and programs that are already working closely with communities.

Describe your competitors?

Players in the biodigester market include material suppliers, educational groups, government outreach programs, and university research programs. No private businesses currently supply a similar product in Mexico. There are other groups constructing homemade biodigesters, but these groups are not competitors as we will supply them with biodigesters in the future to make their installation process more efficient.

What makes your business different/better than your competitors (competitive advantage)?

Our experience has generated a patented biodigester system unlike any design available, and our relationships with the top material suppliers and other industry players give us a distinct advantage.

What makes your business, your product or service innovative?

Our product is innovative because it changes the paradigm of biodigester installation from a project that requires a high technical ability, to an easy-to-install, high-quality product. In addition, all of our packing and shipping materials are re-used in the installation so no waste is generated. Our business model is one of cooperation with the ultimate goal being access to biodigesters for millions of families in Latin America.

How will you ensure the growth of your business?

We have developed a business model that is scalable, and we will expand from Mexico into other countries. We believe the biodigester market is poised for massive growth as energy prices rise, emissions agreements are finalized, and health and environmental consciousness increases. In addition, new uses for biodigestion will create a larger demand in our current markets, and increased benefits will open the door to new funding sources.

The Entrepreneur & Management

Describe the entrepreneur & management

Alex Eaton, the developer of the improved biodigester, has installed biodigesters across Latin America and started the Mexico Biogas Program and the Latin American Biodigester Network. With an advanced degree in Energy Development, Alex will oversee this effort. Mexican businessmen that represent current eco-technologies will bring experience in marketing, business development and industrial design and fabrication to the management team.

What specifically makes you and (if relevant) your management team most qualified to build this business?

This management team has been the “go to” group for biogas in Mexico for years, with national and international consulting contracts, hundreds of courses and community workshops, and hundreds of biodigester installations. We have developed the improved biodigester system, and have the contacts and business experience to successful commercialize it. We are also motivated by the social and environmental benefits of our product.

How much time do/will you expect to spend per week in the business?

I will dedicate about 20 hours per week directly to the business with staff covering the primary fabrication and management functions of the business.

Development

How does your business improve the local living standards (social and environmental)?

The biodigesters produced by this business have a myriad of environmental, social, and economic benefits. Benefits to the end user include renewable energy, a waste disposal system, reduced organic contamination, health benefits and a source of organic fertilizer. Women receive many of the health benefits through reduced air pollution. Biodigesters also reduce greenhouse gases, support sustainable development, and provide economic benefits.

2 comments

Sovereign Wealth Fund Initiative.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.

22 July 10, 16:11 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 16:11

Interés desde Argentina

Alex, nos conocimos en Holanda en la Bid Week, soy Martin Aboaf Petit de Murat de GESTAMBO y hemos tenido algunas consultas de establecimientos lecheros para el reaprovechamiento de los desechos del ganado como biogas. Te ruego que te contactes conmigo en función de ver qué posibilidades hay de armar algo para Argentina.

Saludos, Martin

6 July 11, 16:51 Martin Aboaf Petit de Murat, 6 July 11, 16:51