How do you turn garbage into gold? đ The Math on Biogas & What it Takes to Build a Profitable CBG Plant in Indiaâhereâs the financial breakdown for entrepreneurs looking to enter the space. đ Revenue Streams: Whereâs the Money? ââââââââââââââââââââââââ 1ď¸âŁ CBG Sales: The main revenue source. SATAT-backed OMC contracts provide price stability at âš46-60/kg. 2ď¸âŁ Tipping Fees: Large plants get âš500-1000/ton from municipalities to process waste (major revenue boost). 3ď¸âŁ Organic Fertiliser Sales: Digestate converted to compost, adding âš500-2000/ton in revenue. 4ď¸âŁ Carbon Credits: Future potentialâCBG reduces methane emissions, making plants eligible for carbon credit revenue. đ° Financial Projections & Breakeven Analysis ââââââââââââââââââââââââ đşSmall (5 Tons Per Day): - CAPEX: âš5-6 Cr - OPEX: âš0.3-0.4 Cr per year - Revenue: âš0.45 Cr per year (@âš50/kg) - Payback Period: Over 10 years (not viable without subsidies) đşđşMedium (50 TPD): - CAPEX: âš20-30 Cr - OPEX: âš2.5 Cr per year - Revenue: âš5.0 Cr per year (@âš50/kg) - Payback Period: 6-7 years (moderate viability) đşđşđşLarge (500 TPD): - CAPEX: âš120-150 Cr - OPEX: âš25 Cr per year - Revenue: âš54.75 Cr per year (excluding tipping fees) - Payback Period: 4-5 years (strong IRR >20%) đĄ Key Takeaways ââââââââââââââââââââââââ â Small plants struggle unless they get subsidies or tap into premium/niche markets. â Mid-sized (50 TPD) plants can work but need tipping fees or subsidies for strong ROI. â Large-scale (500 TPD) plants dominate with faster payback, better margins, and diversified revenue. ââââââââââââââââââââââââ đ Want the 10,000 word deep dive into tech, government policies, and full economic analysis? Check out âThe CBG Playbook: What It Takes to Build a Profitable Biogas Plant in Indiaâ, here: https://originalgenome.notion.site ââââââââââââââââââââââââ Would you start or invest in a CBG plant? Or do you see another energy play? đ
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