Unlocking credit to promote commercial biogas in poultry industry

Duration: January 2018- March 2021
Project Location: Kathmandu
Partners: AEPC
Status: Completed

Project Information:
Domestic biogas installation in Nepal has been successful. However, biogas use in commercial enterprises is a new area. Several commercial enterprises like poultry, animal husbandry, hotels etc. have growing interest in installation of commercial biogas plants. The poultry industry in Nepal is particularly interested in biogas as it addresses two major problems.

  1. Waste generated creates odors and health risks leading to local social resistance to poultry farm; and
  2. The high-energy cost, as they must run diesel generators due to unreliable grid electricity.

Despite the availability of proven technology in regional countries, biogas in the poultry industry has not been scaled up in Nepal. Barriers are

  1. High investment cost and lack of credit from financial institutions
  2. Lack of confidence in the technology with no successful demonstration in Nepal and
  3. Inadequate information on technology, application and benefits available to poultry owners.

Winrock, NMB bank (A-class commercial bank) and Alternative Energy Promotion Centre (AEPC) envisaged promotion of commercial biogas plants in poultry farming through demonstration of projects that use an innovative business model of credit financing, equity and grants.

General Objective
The project aims to demonstrate the viability of an innovative business model that uses credit financing, grants and equity for promoting commercial biogas in the poultry industry in Nepal

Specific Objective:

  1. increase the confidence of poultry farm entrepreneurs in biogas technology through its demonstration;
  2. increase access to a reliable energy supply for the productive use of energy in the poultry industry;
  3. develop loan products for commercial biogas; and
  4. disseminate evidence and advocate for the up-scaling of the business model.