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Business models for the financial viability of biogas projects | BioE Webinar

5 September 2024

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In this webinar on business models for the financial viability of biogas projects, Aida Lorenzo, Bioenergy community of practice coordinator (CoP BioE) of the LEDS LAC Platform, welcomed the participants, highlighting the relevance of sharing experiences and learnings among members of the BioE CoP throughout their eight years of existence, which has grown significantly and now has more than 50 active members from 12 Latin American countries.

During the session, specific cases were presented regarding the waste utilization for biogas generation, underlining the importance of the circular economy in agricultural production. The fundamental role played by the business models in the implementation of sustainable projects, presenting successful experiences such as those developed at the "Cosecha Real" farm in Colombia and by Sistema Bio in Central America and Colombia. In addition, dynamics were carried out to get to know the participants and their sector of origin, highlighting the diversity and potential of bioenergy in the region. 

The presentation of Angela Tamayo focused on the trajectory of the Cosecha Real Estate, which has operated for more than four decades with an integrated approach to sustainability, quality and circularity. The farm, founded by a family committed to nature, has managed to combine traditional knowledge with clean technologies, implementing biodigesters that transform waste into biofertilizer and caloric energy, which has reduced energy costs and improved the fertilization of coffee crops. In addition to swine production, the farm has diversified its activities into coffee growing and beekeeping, with the "Cosecha Real" brand dedicated to organic coffee cultivation and honey production, thus contributing to reforestation and increasing biodiversity. The farm has also positioned itself as an ecotourism destination, where visitors can learn about sustainable agricultural practices while enjoying the natural environment. Its commitment to animal welfare and gender equality is evident in its facilities, designed to ensure a suitable environment for the animals and facilitate labor inclusion, which has improved working conditions. All of this has made the farm a model of sustainable and circular rural development that balances positive environmental impact with economic and social benefits for the community.

Miguel Granados, in his speech, he explained the Bio System approach in the implementation of biodigestion projects, highlighting its 14 years of experience in the sector and its expansion to more than 30 countries, where it has adapted its business models to the diverse regional realities. In Central America and the Caribbean, the company collaborates with strategic allies to offer customized solutions to medium and large producers, maximizing sustainability and return on investment. In addition, Sistema Bio has developed a social model that facilitates access to biodigestion technologies for small producers and organizations with social purposes, improving the quality of life and promoting the circular economy in communities with fewer resources. In this way, the company manages two business models: one oriented to large producers, focused on efficiency and results, and the other focused on providing solutions to small communities with specific needs.

Finally, Camilo Arias addressed the topics of biogas generation and carbon credits, emphasizing the implementation of biodigesters in the agricultural sector as both a sustainable and cost-effective solution. The importance of adapting biodigestion technology to the characteristics and capabilities of small and medium-sized producers, rather than forcing changes in their practices to conform to available technology, was highlighted. This approach has ensured greater adoption and successful implementation, allowing producers to obtain concrete benefits, such as reduced costs in liquefied petroleum gas (LPG) and fertilizers, efficient waste management and increased agricultural productivity, thus contributing to the Sustainable Development Goals (SDGs). One of the highlights was the presentation of a pilot plan in Colombia that foresees the initial implementation of 300 biodigestion systems, with the ambitious goal of expanding this number to 3,000 within two years. This project includes an innovative carbon credit certification component, in collaboration with recognized Gold Standard entities, which will allow end users to obtain economic benefits from the sale of these carbon credits. This financing model significantly reduces the cost of biodigesters for producers, making the technology more accessible and sustainable in the long term. The critical importance of proper management and maintenance of the biodigestion systems to ensure their viability over time was also highlighted, emphasizing that the success of the program depends not only on the installation of the systems, but also on the education and involvement of the producers in the biodigestion process. It was emphasized that proper installation is essential to avoid gas leakage and maximize the efficiency of the biodigesters, ensuring that producers fully understand the benefits and responsibilities involved in the use of this technology.

Finally, Aida Lorenzo gave the closing remarks, thanking the presenters, Camilo, Miguel and Angela, for their outstanding participation, which contributed to the success of the event. She acknowledged that, despite the doubts that still exist, the meeting demonstrated the vast potential for progress in bioenergy. In addition, the importance of these spaces for collaboration between the public, private and agricultural sectors for continuous learning and the expansion of bioenergy in the region was underscored. 

Key messages:
  • Circular economy and business models: The importance of the circular economy in agricultural production and how business models are fundamental for the successful implementation of sustainable projects was emphasized, highlighting successful cases such as the "Cosecha Real" farm and Sistema Bio.

  • Sustainability at the Cosecha Real Farm: Finca Cosecha Real has become a model of sustainable rural development, combining traditional knowledge with clean technologies and diversifying its activities into pork production, coffee farming, beekeeping, and ecotourism.

  • Innovation in biodigestion by Bio System: Sistema Bio has focused on adapting biodigestion technology to the needs of different regions, developing customized business models for large producers and an accessible social model for small producers.

  • Biodigester pilot plan in Colombia: A pilot plan in Colombia seeks to implement 300 biodigestion systems with the goal of expanding to 3,000 in two years, incorporating carbon credit certification to reduce costs and make the technology more affordable.

  • Maintenance and education in biodigestion: The importance of proper management and education of producers in the use of biodigestion systems was emphasized to guarantee their long-term viability, ensuring that their efficiency is maximized and the benefits of the technology are understood.

Learn more about:

The Bioenergy Community of Practice, Cosecha Real Estate, Bio System

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