The business concept is to privately generate clean renewable energy for sale to the national Government for rural electrification. The business will generate revenues from three sources namely (i) sale of grid electricity as above; (ii) sale of fertilizer as a by product of the process; and (iii) carbon credits trading.
The electricity will be generated from a 2.5 megawatt biogas plant which will be sold to the Government of Kenya under the Kenya 2010 Feed-in-Tariff, where the sale of electric power to the national grid from biogas technology has been guaranteed for 20 years at a rate of USD$ 0.08 per KWH generated. The major by-product of the electricity generation process is a digested feedstock that makes up a high quality fertilizer that will be sold to the local farming community on cash basis or a feedstock in exchange of the slurry effluent (fertilizer) arrangement. The business will also comprise of a carbon trading component to leverage on the significant quantities of CO2 that will be saved from the project.
The plant comprises of three key components (i) A biogas turbine; (ii) biogas digester; and (iii) an organic fertilizer packaging component.
The turbine forms the most significant cost and will be imported on a turn key basis from among several identified established suppliers with a proven track record in the field of biogas technologies. A biogas plant digester will be constructed with capacity to produce sufficient gas (with 62% methane purity) to power the generator for 66.66% of the time per year. Finally, the byproduct of the process is a high quality organic fertilizer which will be packaged for sale to a fast growing organic food supply sector and/or to farmers under a feedstock-for-fertilizer arrangement.