FE Report
Infrastructure Development Company Ltd (IDCOL) and Brac Bank Limited signed a financing agreement with Paragon Agro Limited (PAL) for setting up three biogas-based electricity generation plants.
One plant will be established in Mymensingh and two in Gazipur, with a combined capacity of 430-kW as well as a 20-MT organic fertilizer plant in Gazipur.
Total cost of the project is BDT 146.89 million and IDCOL and Brac Bank Limited will jointly provide BDT 88.13 million.
Electricity generated from the plants will be supplied to the adjacent poultry farms of Paragon Poultry Ltd.(PPL), one of the largest poultry houses of Bangladesh and a sister concern of PAL.
PPL will supply the required poultry waste which will be used as feed material in the biogas digesters for production of gas, which, after purification, will be used to run three biogas generators. The slurry produced as byproduct from the biogas digesters will be transported to the proposed organic fertilizer plant located at Sreepur, Gazipur for composting purposes.
Mr. Mashiur Rahman, Managing Director, Paragon Agro Limited, Mr. Islam Sharif, CEO, IDCOL and Mr. Mahbubur Rahman, Managing Director, Brac Bank Limited signed the agreement on behalf of their respective companies.
-----------------------------------------------------------------------------------
Thursday, June 3, 2010
Business
Paragon plans biogas plants to produce power, fertiliser
Sohel Parvez
Paragon Agro Ltd has signed up for establishing two biogas plants to generate a total of 430 kilowatts of electricity by the year-end.
The company says it will also make organic fertiliser using the slurry produced as by-product from the biogas digesters.
The plants will be set up in Mymensingh and Gazipur with a total investment of Tk 15 crore. Gazipur plant will generate 260 KW.
The proposed project will produce 25 tonnes of organic fertiliser a day and reduce carbon emissions by 12,000 tonnes a year, the company says.
"It will give us the scope to better manage poultry waste and become environment friendly," said Moshiur Rahman, managing director of Paragon Agro Ltd, a concern of Paragon Group having tea-feed-poultry business.
"We will meet our power demand for poultry farms in the adjacent areas through these plants without depending on the national grid."
Paragon is one of the few large poultry farms that have started venturing into clean energy at a time when unplanned disposal of poultry waste from tens of thousands of farms is causing soil and water pollution.
The stakeholders said poultry industry now produces around 7,500 tonnes of waste a day, which can be used to generate up to 50 MW of electricity.
The slurry will improve the organic content of soil.
"Poultry waste has a very pungent odour and we have to face trouble in disposing those," said Rahman.
He said the project will help manage the waste properly. "It will also reduce the risk of diseases."
Paragon says it will use Chinse and Eurepean technologies to set up the biogas plants.
"We will borrow from IDCOL [Infrastructure Development Company Ltd] to establish the plants," Rahman said.
Under the project, IDCOL will finance 60 percent of the total cost at an annual interest rate of 9 percent.
Also the managing director of Paragon Group, Rahman said the electricity to be generated from the biogas plants will be supplied to the adjacent poultry farms of Paragon Poultry Ltd at Tk 4 per kWh (kilowatt-hour).
He however said the biogas plants would not make the venture cost-effective.
"Power generation through the biogas plants will be costlier. We plan to benefit from selling the fertiliser," he said.
Paragon expects that it will retail fertiliser at Tk 15 per one-kilogram packet. The price of bulk fertiliser will be lower.
Rahman said the company has already started works to implement the scheme. "We will be able to generate electricity from November."
250 kW Biomass Based Power Plant Project
IDCOL financed a 250 kW Biomass based power plant at Kapasia, Gazipur. IDCOL provided concessionary loans and grants to Dreams Power Private Limited (DPPL), the Project Sponsor, for setting up the plant. Total cost of this project is Tk. 2.50 crore. The plant uses locally available agricultural residues i.e. rice husk as fuel for power generation. Ankur Scientific Energy Technologies Pvt. Ltd, India is the equipment supplier of the project.
Being located in an un electrified area, the plant is expected to supply environment friendly grid quality power to 300 households and commercial entities of that area.
400 KW Biomass Based Gasification Plant
IDCOL's is financing a 400-kW rice husk gasification based power generation facility along with a precipitated silica plant at Chilarong, Thakurgaon sadar, Thakurgaon. IDCOL provided concessionary loans to Sustainable Energy & Agro-resource Limited (SEAL), the Project Sponsor, for setting up the plant. Total cost of this project is BDT 64.25 million. The plant will use locally available agricultural residues i.e. rice husk as fuel for power generation. Orbit, India is the turn key solution provider of the project. Once completed, the annual silica production capacity of the plant is expected to be 918 tonne. Generated electricity from the Project will be supplied to the adjacent silica production plant with a captive consumption of 75kW. The project may also supply power to a nearby poultry hatchery (minimum requirement 300kW), thirty irrigation pumps (10kW each) and/or numerous rice mills in the area.
This Project of generating electricity using gasification process will ensure efficient and environment friendly utilization of rice husk. Moreover, the Project will also produce a high value by-product such as precipitated silica. Precipitated silica is used in rubber, toothpaste and other chemical industries, and currently almost the entire local demand is met through imports. Therefore, apart from generating power from renewable sources, the Project is also expected to save the country's hard earned foreign currency.
Biogas Based Electricity Generation Plants
IDCOL is financing setting up of three biogas based electricity generation plants, one in Mymensingh and two in Gazipur, and one organic fertilizer plant in Gazipur by Paragon Agro Ltd. Electricity generated from these plants will be supplied to the adjacent poultry farms of Paragon Poultry Ltd. (PPL) at BDT 4 / kWh, while organic fertilizer will be sold in the market at BDT 15 per 1 Kg packet and BDT 400 per 40 Kg packet Total project cost is BDT 149.40 million.
Poultry waste supplied by Paragon Poultry Limited, a sister concern of Paragon Agro Limited, will be used as feed material in the biogas digesters for production of gas which after purification will be used to run three 100kW, and one 50kW biogas generators. The slurry produced as byproduct from the biogas digesters will be transported to the proposed organic fertilizer plant located at Sripur, Gazipur for composting purposes.
Fuel, power and good quality organic fertilizer make biogas investment a commercially viable venture. Moreover, economic benefits derived from such biogas plants in terms of fuel and chemical fertilizer saving can have notable impact on the national economy. In future, the biogas technology is expected to be the driving force for ongoing growth of the poultry industry in Bangladesh.
250 kW Biomass Based Power Plant Project
IDCOL financed a 250 kW Biomass based power plant at Kapasia, Gazipur. IDCOL provided concessionary loans and grants to Dreams Power Private Limited (DPPL), the Project Sponsor, for setting up the plant. Total cost of this project is Tk. 2.50 crore. The plant uses locally available agricultural residues i.e. rice husk as fuel for power generation. Ankur Scientific Energy Technologies Pvt. Ltd, India is the equipment supplier of the project.
Being located in an un electrified area, the plant is expected to supply environment friendly grid quality power to 300 households and commercial entities of that area.
400 KW Biomass Based Gasification Plant
IDCOL's is financing a 400-kW rice husk gasification based power generation facility along with a precipitated silica plant at Chilarong, Thakurgaon sadar, Thakurgaon. IDCOL provided concessionary loans to Sustainable Energy & Agro-resource Limited (SEAL), the Project Sponsor, for setting up the plant. Total cost of this project is BDT 64.25 million. The plant will use locally available agricultural residues i.e. rice husk as fuel for power generation. Orbit, India is the turn key solution provider of the project. Once completed, the annual silica production capacity of the plant is expected to be 918 tonne. Generated electricity from the Project will be supplied to the adjacent silica production plant with a captive consumption of 75kW. The project may also supply power to a nearby poultry hatchery (minimum requirement 300kW), thirty irrigation pumps (10kW each) and/or numerous rice mills in the area.
This Project of generating electricity using gasification process will ensure efficient and environment friendly utilization of rice husk. Moreover, the Project will also produce a high value by-product such as precipitated silica. Precipitated silica is used in rubber, toothpaste and other chemical industries, and currently almost the entire local demand is met through imports. Therefore, apart from generating power from renewable sources, the Project is also expected to save the country's hard earned foreign currency.
Biogas Based Electricity Generation Plants
IDCOL is financing setting up of three biogas based electricity generation plants, one in Mymensingh and two in Gazipur, and one organic fertilizer plant in Gazipur by Paragon Agro Ltd. Electricity generated from these plants will be supplied to the adjacent poultry farms of Paragon Poultry Ltd. (PPL) at BDT 4 / kWh, while organic fertilizer will be sold in the market at BDT 15 per 1 Kg packet and BDT 400 per 40 Kg packet Total project cost is BDT 149.40 million.
Poultry waste supplied by Paragon Poultry Limited, a sister concern of Paragon Agro Limited, will be used as feed material in the biogas digesters for production of gas which after purification will be used to run three 100kW, and one 50kW biogas generators. The slurry produced as byproduct from the biogas digesters will be transported to the proposed organic fertilizer plant located at Sripur, Gazipur for composting purposes.
Fuel, power and good quality organic fertilizer make biogas investment a commercially viable venture. Moreover, economic benefits derived from such biogas plants in terms of fuel and chemical fertilizer saving can have notable impact on the national economy. In future, the biogas technology is expected to be the driving force for ongoing growth of the poultry industry in Bangladesh.
Poultry farms in Bangladesh are producing approximately 7500 MT poultry waste per day. If not properly manage, this huge amount of poultry waste can pollute soil and water resources, loss fertilizer value and create a negative impact on social and regulatory environment. Lack of proper disposal system of poultry waste is creating environmental and health hazards adjoining areas of the poultry farms.
GTZ-SED has successfully developed, field-tested and standardized in Bangladesh, in cooperation with one of the leading poultry breeding farm in Bangladesh Paragon Poultry Ltd., as its Flagship Partner, a sustainable captive power generation system for Poultry, Dairy and other commercial (agricultural) establishments, which presently generate or have the potential to generate Biogas from bio-wastes, such as poultry litter, cow dung, agricultural / organic residues, produced either on-farm or having easy and cost-effective access to the latter.
The system involves use of locally developed cost-effective, user-friendly and simple sulfur and water removal (de-sulfurization and dehydration) process which has been developed and successfully field tested by GTZ-SED.
In addition, a system, proven through pilot /field-tests, for proper handling and use of the Nitrogen-Phosphorus-Potassium (NPK) rich effluent (both in its liquid and dried forms) as an organic fertilizer to minimize the use of environmentally harmful and soil-degrading chemical fertilizers (e.g. urea, triple super-phosphate, murate of potash etc.)
Central Laboratory of Soil Resource Development Institute and Paragon Agro Limited ( a sister concern of Paragon Group) took the initiative to carry out study on poultry waste Management through semi aerobic composting technology and its impact on soils and crops. Paragon would be the first company getting the permission by the Govt. of Bangladesh to produce and sell organic fertilizer.
Paragon House
5 Mohakhali C/A Gulshan
Dhaka 1212 Bangladesh
Telephone: +880 2 9882107, +880 2 9887242
Fax: +880 2 8821394
Email: info@paragongroup-bd.com
__._,_.___
