Small scale bio-gas businesses

March 29, 2012

The new Renewable World bio-gas programme was recently established to enhance and support the growth of business opportunities in rural communities in the both mountainous northern Nepal, and the hot low lying southern Nepalese Terai. The bio-gas businesses are being established in partnership with BSP-N our local partner who have years of experience of stimulating local bio-gas business sector.  We are working alongside BSP-N to enhance their ability to respond to demand from local entrepreneurs to establish successful businesses using bio-gas produced from community level systems. The energy generation businesses which are being established to run the bio-gas systems will buy inputs from local farmers and sell bio-gas to local entrepreneurs, thus stimulating multiple layers of small scale and household level income generation. The management of the bio-gas business will be paid for their labour from the sale of gas. Multiple entrepreneurs have already been identified and trained by BSP-N, who has worked with local individuals to design and build business plans for each of their initiatives.

A example of a bio-gas digester which will be installed as part of Renewable World’s project with BSP/N

One example of a local business person who has enthusiastically grabbed the opportunities offered by this programme is Urmila Tharu a young mother who animatedly told us of her plans to build a candle making business using the bio-gas purchased from the system. Urmila had already bought the machinery, required raw materials and other necessary inputs for making candles and had been practicing making the finished product. She plans to make 600 candles a day and sell them at two local markets. If she sells her entire day’s production she will make an estimated 2000 Nepalese rupees or $25. If she alternates her days producing and selling she can realistically expect to bring in an income $75 a week. These would adequately cover her outgoings and provide her with a healthy profit. She has already scoped out the local competition and knows that the nearest alternative candle maker produces in a market 20 km away.

Urmila Tharu a young mother who hopes to start up a candle making business using energy from the bio-gas digesters

Urmila recently attended a BSP-N/Renewable World training session and has subsequently worked hard on creating her business plan with help from the talented Bishwa, BSP-N’s very impressive and dynamic Vice President with responsibility for small business stimulation and growth. Bishwa is a champion of the private sector involvement in economic development has recently established a private company to sell services in market stimulation through energy provision. I can see a long and fruitful relationship between Bishwa and Renewable World.