A Sample Biogas Production Business Plan Template

Industry Overview

Biogas is the combination of gases produced by the breakdown of organic matter in the absence of
oxygen. Biogas can be produced from raw materials such as agricultural waste, manure, municipal
waste, plant material, sewage, green waste or food waste. Biogas is a renewable energy source.
Compressed biogas is becoming widely used in Sweden, Switzerland, and Germany.

Biogas can be used for electricity production on sewage works, in a CHP gas engine, where the waste
heat from the engine is conveniently used for heating the digester; cooking; space heating; water
heating; and process heating. If compressed, it can replace compressed natural gas for use in vehicles,
where it can fuel an internal combustion engine or fuel cells and it is a much more effective displacer of
carbon dioxide than the normal use in on-site CHP plants.

Biogas production business is a subset of the Biomass Power industry and businesses in this industry
operate electricity – generating facilities using biomass (e.g. agricultural byproducts, landfill gas and
biogenic municipal waste). Establishments engaged in operating trash disposal incinerators that also
generate electricity are classified in the Waste Treatment and Disposal Services industry.

The Biomass Power industry is a thriving sector of the economy of countries like Germany, Japan, China,
South Korea, France, The United Kingdom and the united states of America. In the U.S., the industry
generates over $908 million annually from more than 122 registered and licensed biotechnology
companies (biogas production companies inclusive.

The industry is responsible for the employment of over 1,397 people. Experts project the Biomass Power
industry to grow at a 0.8 percent annual rate between 2014 and 2019. Progress Energy is one company
with the a market share of the market in the United States of America.

A recent report published by IBISWorld shows that the Biomass Power industry has grown slowly over
the five years to 2019. The industry’s expansion has been propelled in part by several federal renewable
energy tax credits that encouraged the use of biomass power.
Furthermore, the majority of states have enacted renewable portfolio standards (RPSs), which require
local utilities to generate electricity from renewable power as a percentage of their total energy
portfolio. Increased campaigning for green technology also influenced industry performance by sparking
interest in technologies that replace pollutant-generating energy sources, such as coal and gas.

Some of the factors that encourage aspiring entrepreneurs and investors to start a biogas production
business is the fact that the market is growing rapidly in the United States and it is not seasonal. That
makes it easier for entrepreneurs who are interested in the business to come into the industry at any
time they desire; the entry barriers might be high but any serious minded entrepreneur can comfortably
raise the startup capital even if it means collecting loans from the bank.

The Biomass Power industry is a green and highly profitable industry and it is open for entrepreneurs to
come in; you can choose to start on a small scale by producing and supplying at a community level or
you can start on a large scale with distribution networks spread across key cities all around the United
States of America.

Table of Content

Biogas Production Business Plan – Executive Summary

Biogas Production Business Plan – SWOT Analysis

Biogas Production Business Plan – MARKET ANALYSIS

Biogas Production Business Plan – SALES AND MARKETING STRATEGY

Biogas Production Business Plan – Publicity and Advertising Strategy

Biogas Production Business Plan – Sustainability and Expansion Strategy

Biogas Production Business Plan – Executive Summary

Green Gas® Biogas Production Company, Inc. is a licensed biogas production company that will be
involved in the production and distribution of biogas to retailers, industries, and households. We have
been able to lease a production facility that is a perfect fit and the facility is centrally located in North
Platte – Nebraska.

Green Gas® Biogas Production Company, Inc. will produce and supply biogas and other biofuels to end
users at affordable prices.

There is growing interest in biomass power especially biogas and new enterprises are springing up,
which is why we spent time and resources to conduct our feasibility studies and market survey so as to
offer much more than our competitors will be offering. We have robust distribution network; strong
online presence and our distributors are armed with the various payments of options available in the
United States.

Beyond the distribution and supply of biogas, our customer care is going to be second to none in the
whole of North Platte – Nebraska and our deliveries will be timely and highly reliable. We know that our
customers are the reason why we are in business which is why we will go the extra mile to get them
satisfied when they patronize our products.

Green Gas® Biogas Production Company, Inc. will ensure that all our customers are given first class
treatment whenever they order biogas and other biofuel from us. We have a CRM software that will
enable us manage a one on one relationship with our customers no matter how large our customer base
and distribution network may grow to.

Green Gas® Biogas Production Company, Inc. will at all times demonstrate her commitment to
sustainability, both individually and as a firm, by actively participating in our communities and
integrating sustainable business practices wherever possible. We will ensure that we hold ourselves
accountable to the highest standards by meeting our client’s needs precisely and completely.

Green Gas® Biogas Production Company, Inc. is a family business that is owned by Sutton Jones and his
immediate family members. Sutton Jones has a B.Sc. in Microbiology and MSc. in Biotechnology, with
over 15 years’ hands on experience in the biomass power industry, working for some of the leading
brands in the United States.

Our Products and Services Offering

Green Gas® Biogas Production Company, Inc. is in the Biomass Power industry and we will be involved in
the production and distribution of quality and safe biogas and other biofuel products. We are in the
Biomass Power industry to make profits and we will ensure that we do all that is permitted by the law in
the United States to achieve our business aim and objectives.

Our Vision Statement

Our vision is to be listed amongst the top 5 biogas production companies in the whole of the United
States of America.

Our Mission Statement

Our mission is to establish a biogas production plant and supply business that will distribute quality and
safe biogas at affordable prices to retailers, and industries in North Platte and other cities in and around
Nebraska where we intend marketing our biogas and other biofuel.

Our Business Structure

Green Gas® Biogas Production Company, Inc. does not intend to compete at the local level; our
intention of starting a biogas production company is to build a standard company in North Platte –
Nebraska. We will ensure that we put the right structures in place that will support the kind of growth
that we have in mind while setting up the business.

We want to put modalities in place that will guide us in hiring people that are qualified, honest,
customer centric and are ready to work to help us build a prosperous business that will benefit all the
stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following
positions that will be made available at Green Gas® Biogas Production Company, Inc.;

Chief Executive Officer (Owner)

Production Manager

Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

Accountants / Cashiers

Customer Services Executive

Drivers / Distributors

Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling,

and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities;
planning, monitoring, and appraising job results;

Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e.
leading the development and implementation of the overall organization’s strategy.

Responsible for fixing prices and signing business deals

Responsible for providing direction for the business

Responsible for signing checks and documents on behalf of the company

Evaluates the success of the organization

Reports to the board

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization

Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.

Ensures operation of equipment by completing preventive maintenance requirements; calling for

repairs.

Defines job positions for recruitment and managing interviewing process

Carries out induction for new team members

Accountable for training, evaluation and assessment of employees

Responsible for arranging travel, meetings and appointments

Oversees the smooth running of the daily office activities.

Production Plant Manager

Responsible for overseeing the smooth running of the biogas production plant

Part of the team that determines the quantity and quality of biogas and biofuels that are to be produced

Maps out strategies that will lead to efficiency amongst workers in the plant

Responsible for training, evaluation and assessment of plant workers

Ensures the steady flow of raw materials to the plant and easy flow of finished products through
wholesale distributors to the market

Ensures operation of equipment by completing preventive maintenance requirements; calling for

repairs.

Ensures that the plant meets expected safety and health standard at all times.

Responsible for using space and mechanical handling equipment efficiently and making sure quality,
budgetary targets and environmental objectives are met

In charge of using and coordinating automated and computerized systems where necessary

Accountable for producing regular reports and statistics on a daily, weekly and monthly basis

Ensures that proper records of biogas and other biofuel products are kept and warehouse does not run
out of products

Controls biogas supply inventory

Supervises the workforce in the production floor.

Merchandize Manager

Manages vendor relations, market visits, and the ongoing education and development of the
organizations’ buying teams

Responsible for the purchase of biogas and other biofuel products for the organizations
Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

Manages external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones

Models demographic information and analyze the volumes of transactional data generated by customer
purchases

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Identifies development opportunities; follows up on development leads and contacts

Responsible for supervising implementation, advocate for the customer’s needs, and communicate with
clients

Documents all customer contact and information

Represents the company in strategic meetings

Helps to increase sales and growth for the company

Accountant/Cashier:

Responsible for preparing financial reports, budgets, and financial statements for the organization

Provides managements with financial analyses, development budgets, and accounting reports

Responsible for financial forecasting and risks analysis.

Performs cash management, general ledger accounting, and financial reporting

Responsible for developing and managing financial systems and policies

Responsible for administering payrolls

Ensures compliance with taxation legislation

Handles all financial transactions for the organization

Serves as internal auditor for the organization

Client Service Executive

Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a
personalized customer service experience of the highest level

Through interaction with customers on the phone, uses every opportunity to build client’s interest in the
company’s products and services

Manages administrative duties assigned by the human resources and admin manager in an effective and
timely manner

Consistently stays abreast of any new information on the organizations’ products, promotional
campaigns etc. to ensure accurate and helpful information are supplied to customers when they make
enquiries.

Distribution Truck Drivers

Assists in loading and unloading biogas and other biofuel products

Maintains a logbook of their driving activities to ensure compliance with federal regulations governing
the rest and work periods for operators.

Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment

Assists the transport and logistics manager in planning their route according to a distribution schedule.

Inspects vehicles for mechanical items and safety issues and perform preventative maintenance

Complies with truck driving rules and regulations (size, weight, route designations, parking, break
periods etc.) as well as with company policies and procedures

Reports defects, accidents or violations

Biogas Production Business Plan – SWOT Analysis

Our goal of starting out in North Platte is to test run the business for a period of 3 to 5 years to know if
we will invest more money, expand the business and then start our biogas production and supply all
around the state of Nebraska.

We are quite aware that there are several biogas production companies and contractors all over North
Platte and even in the same location where we intend locating ours, which is why we are following the
due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength, leverage on the opportunities that will be available to us, mitigate
our risks and be equipped to confront our threats.

Green Gas® Biogas Production Company, Inc. employed the services of an expert HR and Business
Analyst with bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help
us create a Business model that will help us achieve our business goals and objectives. This is the
summary of the SWOT analysis that was conducted for Green Gas® Biogas Production Company, Inc.;

Strength:

Our location, the business model we will be operating on (robust distribution network), reliable
distribution tankers, varieties of payment options, quality and safe biogas and other biofuel products
and our excellent customer service culture will definitely count as a strong strength for us. So also, our
management team are people who have what it takes to grow a business from startup to profitability in
record time.

Weakness:

A major weakness that may count against us is the fact that we are a new biogas production company
and we don’t have the financial capacity to compete with leaders in the industry especially as it relates
to leveraging on economy of scales.

Opportunities:

Regional public utility commissions regulate retail electricity prices. Biomass power plants controlled by
regulated utility companies are subject to regulated retail prices. Industry operators that successfully
petition for rate hikes benefit from increased revenue and profitability, while companies that are unable
to obtain favorable rulings will have difficulty operating in the industry. In 2019, the price of electric
power is expected to increase, representing a potential opportunity for the industry.

Threat:

Tax credits make biomass-power projects more affordable for biomass-power generation enterprises to
execute. With cost savings, operators can more effectively compete based on the price of electricity
with other types of energy-generation technologies. With the expiration of the production tax credit and
no renewal planned in 2019, the net value of tax credits directed at biomass power generation are
expected to decrease, representing a potential threat to the industry.

Biogas Production Business Plan – MARKET ANALYSIS

Market Trends

In recent time, particularly in the United States, the awareness and use of biogas is rapidly increasing
because it has been proven to be environmentally friendly and efficient when used in any machine that
runs on gas. It has lower to zero emission compared to the liquefied natural gas.

Strong growth in the current period is expected to continue, technological advancements spurred
demand from downstream industries and the industry is developing new revenue streams from
outsourced research and other related bio products. Please note that external factors such as global
research and development funding and global investor confidence in the Biomass Power industry will
impact industry performance.

Many investors are now going into the production of biogas because it has been proven to be a better
substitute for gas and that is why it is now produced in commercial quantities in the US thereby
reducing the importation and dependence on natural gas.

Our Target Market

The Biomass Power industry has a wide range of customers; a good number of manufacturing
companies and owners of gas – powered machines make use of biogas and other biofuel products.

In view of that, we have positioned our biogas production company to service businesses in North Platte
– Nebraska and every other location we will cover in Nebraska. We have conducted our market
research and we have ideas of what our target market would be expecting from us. We are in business
to retail (distribute) biogas and other biofuel products to the following businesses;

Manufacturing companies

Power plants that run on biogas

Households
Facility managers that make use of biogas

Our competitive advantage

Green Gas® Biogas Production Company, Inc. is launching a standard biogas production company that
will indeed become the preferred choice for gas – powered machine owners and biogas distributors et al
in North Platte – Nebraska.

Our competitive advantage revolves around our ability to attract local support and patronage, easy
compliance with government regulations, ability to quickly adopt new technology, ability to raise
financing and our ability to educate the wider community on the need to switch to green energy.

One thing is certain; we will ensure that we have biogas and other biofuel products available in our
distribution network at all times. One of our business goals is to make Green Gas® Biogas Production
Company, Inc. a one stop biogas production company. Our excellent customer service culture, timely
and reliable delivery services, online presence, and various payment options will serve as a competitive
advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within
our category in the industry meaning that they will be more than willing to build the business with us
and help deliver our set goals and achieve all our aims and objectives. We will also give good working
conditions and commissions to freelance sales agents that we will recruit from time to time.

Biogas Production Business Plan – SALES AND MARKETING STRATEGY

Sources of Income

Green Gas® Biogas Production Company, Inc. will generate income by producing and supplying biogas
and other biofuel products within the scope of the Biomass Power industry in the United States of
America.

Sales Forecast
One thing is certain, when it comes to biogas production, if your business is centrally positioned coupled
with effective and reliable tankers/trucks and distribution network, you will always attract customers
cum sales and that will sure translate to increase in revenue generation for the business.

Green Gas® Biogas Production Company, Inc. is well positioned to take on the available market in North
Platte – Nebraska and we are quite optimistic that we will meet our set target of generating enough
income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the Biomass Power industry, we have analyzed our chances in the
industry and we have been able to come up with the following sales forecast. The sales projections are
based on information gathered on the field and some assumptions that are peculiar to startups in North
Platte – Nebraska.

Below are the sales projections for Green Gas® Biogas Production Company, Inc., it is based on the
location of our business, and other factors as it relates to biogas and other biofuel products start – ups
in the United States;

First Fiscal Year: $335,000

Second Fiscal Year: $650,000

Third Fiscal Year: $1.1 million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that
there won’t be any major economic meltdown and there won’t be any major competitor offering same
products as we do within same location. Please note that the above projection might be lower and at
the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location to launch Green Gas® Biogas Production Company, Inc., we conducted a
thorough market survey and feasibility studies in order for us to penetrate the available market and
become the preferred choice for retailers of biogas and other biofuel in North Platte – Nebraska. We
have detailed information and data that we were able to utilize to structure our business to attract the
number of customers we want to attract per time.
We hired experts who have good understanding of the biogas production business to help us develop
marketing strategies that will help us achieve our business goal of winning a larger percentage of the
available market in North Platte – Nebraska.

In summary, Green Gas® Biogas Production Company, Inc. will adopt the following sales and marketing
approach to win customers over;

Introduce our business by sending introductory letters alongside our brochure to biogas and other
biofuel products retailers, factories, facility managers, hotels, households and key stake holders in and
around North Platte – Nebraska

Ensure that we have a biogas and other biofuel products in our distribution network at all times.

Make use of attractive hand bills to create awareness business

Position our signage / flexi banners at strategic places around North Platte – Nebraska

Biogas Production Business Plan – Publicity and Advertising Strategy

Even though our biogas production company is well structured and well located, we will still go ahead to
intensify publicity for the business.

Green Gas® Biogas Production Company, Inc. has a long-term plan of opening distribution channels all
around the state of Nebraska which is why we will deliberately build our brand to be well accepted in
North Platte before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to
effectively communicate our brand. Here are the platforms we intend leveraging on to promote and
advertise Green Gas® Biogas Production Company, Inc.;

Place adverts on community – based newspapers, radio and TV stations

Encourage the use of word of mouth publicity from our loyal customers

Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter,
LinkedIn, Snapchat, Google+ and other platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around North Platte –
Nebraska

Distribute our fliers and handbills in target areas in and around our neighborhood

Advertise our biogas production company in our official website and employ strategies that will help us
pull traffic to the site

Brand all our official cars and distribution vans/trucks and ensure that all our staff members and
management staff wear our branded shirt or cap at regular intervals.

Our Pricing Strategy

Pricing is one of the key factors that give leverage to distribution companies and retailers, it is normal
for retailers to purchase products from distribution companies that they offer cheaper prices. We will
work towards ensuring that all our biogas and other biofuel products are distributed at highly
competitive prices compared to what is obtainable in the United States of America.

Payment Options

The payment policy adopted by Green Gas® Biogas Production Company, Inc. is all inclusive because we
are quite aware that different customers prefer different payment options as it suits them but at the
same time, we will ensure that we abide by the financial rules and regulation of the United States of
America.

Here are the payment options that Green Gas® Biogas Production Company, Inc. will make available to
her clients;

Payment via bank transfer

Payment via credit cards/Point of Sale Machines (POS Machines)

Payment via POS machines

Payment via online bank transfer

Payment via check

Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for
biogas and other biofuel products purchase without any stress on their part.

Startup Expenditure (Budget)

From our findings, we were able to come with the areas we will spend our resources on and this is what
it will cost us to set up Green Gas® Biogas Production Company, Inc. in the United of America;

The total fee for registering the business in the United States of America – $750.

Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S
machines and other software) – $3,300.

Production Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per
copy) for the total amount of $3,580.

The cost for hiring business consultant – $2,500.

The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a
total premium – $2,400.

The cost for payment of rent for 12 months at $1.76 per square feet tank facility cum mini depot in the
total amount of $250,000.

The total cost for production facility remodeling (construction of mini depot / tank far) – $100,000.

Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).

Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $150,000

The cost for Start-up inventory (stocking with biogas and other biofuel products raw materials et al) –
$200,000

The cost for store equipment (cash register, security, ventilation, signage) – $13,750

The cost of purchase and installation of CCTVs – $5,000

The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System,
tables and chairs et al) – $4,000.

The cost for the purchase of distribution tankers / trucks – $75,000

The cost of launching a website – $600

Miscellaneous – $10,000
We would need an estimate of $1.2 million to successfully set up our biogas production company in
North Platte – Nebraska.

Generating Funds/Startup Capital for Green Gas® Biogas Production Company, Inc.

Green Gas® Biogas Production Company, Inc. is a private business that is owned and financed by Sutton
Jones and his immediate family members. They do not intend to welcome any external business partner
which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

Generate part of the startup capital from personal savings

Source for soft loans from family members and friends

Apply for loan from the bank

N.B: We have been able to generate about $500,000 (Personal savings $450,000 and soft loan from
family members $50,000) and we are at the final stages of obtaining a loan facility of $700,000 from our
bank. All the papers and documents have been signed and submitted, the loan has been approved and
any moment from now our account will be credited with the amount.

Biogas Production Business Plan – Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Green Gas® Biogas Production Company, Inc. is to ensure
that we continue to deliver quality services, improvise on how to do things faster and cheaper. We are
not going to relent in providing conducive environment for our workers and also the required trainings
that will help them deliver excellent services at all times.

From our findings, another factor that kills new business is financial leakages. In order to plug financial
leakages, the management of Green Gas® Biogas Production Company, Inc. will adopt the use of
payment machine and accounting software to run the business.

We are quite aware that our customers are key component to the growth and survival of our business
hence we are going to continuously engage them to give us ideas on how to serve them better.
Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and
technically sound employees, create a conducive working environment and employee benefits for all
our staff members. We know that if we implement our business strategies, we will grow our biogas
production business beyond North Platte – Nebraska to other states in the U.S in record time.

Check List/Milestone

Business Name Availability Check: Completed

Business Registration: Completed

Opening of Corporate Bank Accounts: Completed

Securing Point of Sales (POS) Machines: Completed

Opening Mobile Money Accounts: Completed

Opening Online Payment Platforms: Completed

Application and Obtaining Tax Payer’s ID: In Progress

Application for business license and permit: Completed

Purchase of Insurance for the Business: Completed

Leasing of mini depot facility and construction of production plant: In Progress

Conducting Feasibility Studies: Completed

Generating capital from family members: Completed

Applications for Loan from the bank: In Progress

Writing of Business Plan: Completed

Drafting of Employee’s Handbook: Completed

Drafting of Contract Documents and other relevant Legal Documents: In Progress

Design of The Company’s Logo: Completed

Printing of Promotional Materials: In Progress

Recruitment of employees: In Progress

Purchase of the needed machines, technology, furniture, reservoirs, computers, electronic appliances,
office appliances and CCTV: In progress

Purchase of distribution tankers/trucks: Completed

Creating Official Website for the Company: In Progress

Creating Awareness for the business both online and around the community: In Progress

Health and Safety and Fire Safety Arrangement (License): Secured

Establishing business relationship with biogas and other biofuel products distributors all across the
United States of America: In Progress

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