The asiaBIOGAS Company Business Model

AsiaBIOGAS is first and foremost an alternative energy provider as a developer and operator of industrial organic waste to energy systems. The Company’s biogas energy systems can be used in a number of applications including:

  • Replacement of liquid fuels [HFO, Diesel]
  • Replacement of Biomass [husks, bagasse]
  • Electricity Generation [kWh]
  • Steam Generation
  • Thermal Energy Generation

The Company’s primary form of business relationship with its clients is the Build-Own-Operate-Transfer structure (also known as BOOT or BOT). In the BOOT funding model ABC designs, builds, funds, owns and operates the biogas energy plant. The client only needs to provide the wastewater and on site space for the biogas plant. The AsiaBIOGAS plant will sell biogas and/or electricity to the client at a significant discount (up to 20%) to prevailing market rates. At the end of the BOOT contract period (typically 7-15 years) AsiaBIOGAS will transfer the plant ownership to the client for a nominal price.

In select situations ABC will construct Turnkey projects for clients where the Company will design, engineer and build the facility and the client will be responsible to pay for and operate the plant. AsiaBIOGAS has extensive experience in developing Turnkey projects for clients with many built and several in progress.

Build-Own-Operate-Transfer Model (BOOT)

There are many advantages for the client in the BOOT model, beginning with AsiaBIOGAS’ experience and expertise in developing and operating biogas plants.  For the client a BOOT plant is essentially 100% off balance sheet financing. The client never pays any of the capital costs to develop the project nor does it make any lease or purchase payments. The only requisite payments are for the energy delivered at the discounted rate. The biogas operation demands none of the client’s time or attention; ABC handles all operations, maintenance and staffing, including all related costs. 

A key aspect of the BOOT model is the single provider/single customer nature of the relationship. AsiaBIOGAS will be the primary energy provider and the client will be the lone customer. Thus it is important that both parties are well established and financially secure. The client needs to have confidence that AsiaBIOGAS can and will deliver a consistent, uninterrupted energy supply and ABC needs to have confidence that the client will continue operations, supplying wastewater to the biogas plant and purchasing the energy produced.

As the long term owner and operator AsiaBIOGAS uses the highest quality building materials and equipment including Caterpillar and Jenbacher electrical generators, Weishaupt burners, Emersen sensors and meters, and ABB and Omron controls. Such superior equipment is essential to achieving maximum energy output, operating efficiency and minimal downtime. The costs of these advanced components do not affect the discounted rate paid by the client for energy.  

Responsibilities of the Parties

AsiaBIOGAS will provide at no charge to client:

  1. Design
  2. Engineering
  3. Construction & Construction Management
  4. Plant Operations & Management
  5. 100% total cost of biogas energy plant

Client will provide:

  1. Minimum Annual Volume [in cubic meters] and average carbon composition [as measured in CODt mg/l] process waste water
  2. Dedicated site of land for the construction of the biogas plant - for an minimal annual lease cost

Financial Arrangements

  1. AsiaBIOGAS will provide 100% of the development & construction costs
  2. Client will pay only for energy delivered with no payment due until the first delivery of biogas or electricity
  3. Client will pay for energy at a significant discount to the prevailing local market prices of fuel oil [for the energy equivalent amount of biogas] and electricity
  4. At the completion of the contract period (typically 7-15 years) AsiaBIOGAS will transfer the plant assets to the client for a nominal price

Turnkey Projects

For clients who have the desire to own the biogas plant and the financial capacity to pay for all of the plant design, engineering, construction and commissioning costs, as well as the ability to manage the on-going annual operations and maintenance, AsiaBIOGAS will design, engineer, build and commission a biogas energy plant, offering minimum daily energy output guarantees. In the later stages of construction and commissioning ABC will train the client’s staff in operations, procedures, and maintenance. If the client wishes, AsiaBIOGAS will manage the biogas plant under an operations and maintenance contract for a negotiated fixed annual fee.