The Potential of Electricity Generation from Poultry Waste in ...

The Potential of Electricity Generation from Poultry Waste in
Bangladesh. A Case Study of Gazipur District
Submitted by
SHEIKH ASHRAF UZ ZAMAN
Matriculation No. 533137
M.Sc.-Thesis submitted as a partial fulfilment of the requirements for the degree
of
“Master of Science (M.Sc.) in Energy Systems and Management”
Supervisors:
1. Dipl.-Ing. Wulf Boie 2. Dr. Dieter W. Klein
SESAM - Sustainable Energy Systems and Management
International Institute of Management
University of Flensburg, Germany
August 2007

TABLE OF CONTENTS
Title Page
TABLE OF CONTENTS ........................................................................................................ii
LIST OF ABBREVIATION ...................................................................................................v
LIST OF TABLE ...................................................................................................................vii
LIST OF FIGURES..............................................................................................................viii
LIST OF UNITS.......................................................................................................................x
ACKNOWLEDGEMENT......................................................................................................xi
EXECUTIVE SUMMARY ...................................................................................................xii
ZUSAMMENFASSUNG (Summary in German)..............................................................xvi
CHAPTER 1 INTRODUCTION ........................................................................................1
1.1 Background................................................................................................................1
1.2 Objective of the Study ...............................................................................................2
1.3 Research Question .....................................................................................................3
1.4 Research Hypothesis:.................................................................................................3
1.5 Significance of the Study:..........................................................................................4
1.6 Overview of the Chapters ..........................................................................................4
CHAPTER 2 BACKGROUND INFORMATION ............................................................5
2.1 Country Background..................................................................................................5
2.1.1 General Overview ...........................................................................................5
2.1.2 Energy Sector in Bangladesh..........................................................................7
2.1.3 Poultry Sector in Bangladesh........................................................................13
2.2 Study Area Background...........................................................................................15
2.2.1 Geography.....................................................................................................15
2.2.2 Key Statistics of the Study Area ...................................................................16
2.2.3 Available Energy information in the study area ...........................................16
2.2.4 Poultry Sector in the Study Area ..................................................................17
CHAPTER 3 METHODOLOGY .....................................................................................20
3.1 Approach..................................................................................................................20
3.2 Sampling Method.....................................................................................................21
3.3 Data Collection ........................................................................................................22
3.3.1 Secondary Data Collection ...........................................................................23
3.3.2 Primary Data Collection ...............................................................................23
3.4 Data Analysis...........................................................................................................23
ii

TABLE OF CONTENTS (Contd…)
Title Page
3.5 Scenario Method ......................................................................................................24
3.6 The Scope and Limitation of the Study ...................................................................25
CHAPTER 4 ENERGY CONSUMPTION STATUS IN POULTRY FARMS ............27
4.1 EXISTING UTILIZATION OF ELECTRICITY....................................................27
4.1.1 Electricity consumption of major electrical appliances used........................27
4.1.2 Daily Electricity Consumption Pattern .........................................................32
4.1.3 Electricity Deficit and the Use of Back Up System......................................33
4.2 EXISTING UTILIZATION OF OTHER ENERGY ...............................................35
4.2.1 Use of Biogas + Size of Existing Biogas Plant.............................................35
4.2.2 Use of Slurry and Disposal of Poultry Waste ...............................................36
4.3 Attitudes and Barriers ..............................................................................................38
CHAPTER 5 PRESENT STATUS OF ELECTRICITY GENERATION FROM
POULTRY WASTE ...................................................................................39
5.1 Some Properties of Biogas:......................................................................................41
5.1.1 Characteristics of Biogas ..............................................................................41
5.1.2 Impact of H2S................................................................................................42
5.1.3 Impact of CO2 ...............................................................................................42
5.2 Status of Technology Used in GTZ Flagship Project at Raj Poultry Farm .............43
5.2.1 Biogas plant ..................................................................................................44
5.2.2 H2S Removal Unit.........................................................................................45
5.2.3 Moisture Removal Unit.................................................................................47
5.2.4 Generator.......................................................................................................48
5.2.5 Regeneration of Steel Wool and Silica Gel ..................................................49
5.3 Status of Technology used in the Study Area:.........................................................49
5.4 Status of Energy Generation ....................................................................................51
5.5 Problems Encountered with the Technology (Owners’ View):...............................52
CHAPTER 6 POTENTIAL OF ELECTRICITY GENERATION FROM POULTRY
WASTE........................................................................................................53
6.1 Financial Analysis....................................................................................................54
6.1.1 Assumptions:.................................................................................................55
6.1.2 Overview of Scenario result: ........................................................................60
6.2 Analysis of Scenario I & II results:..........................................................................62
6.3 Estimate of Total Potential.......................................................................................67
6.4 Sensitivity Analysis .................................................................................................69
6.4.1 Effect of variation of investment cost...........................................................69
6.4.2 Effect of variation of Discount Rate .............................................................71
iii

TABLE OF CONTENTS (Contd…)
Title Page
CHAPTER 7 CONCLUSION AND RECOMMENDATION........................................75
7.1 Conclusions..............................................................................................................75
7.2 Recommendation .....................................................................................................77
BIBLIOGRAPHY..................................................................................................................78
APPENDICES .....................................................................................................................81
DECLARATION .................................................................................................................100
iv

LIST OF ABBREVIATION
°C : degree Celsius
°F : degree Fahrenheit
am : ante meridiem
BB : Bangladesh Bank
BBS : Bangladesh Bureau of Statistics
BCAS : Bangladesh Centre for Advance Studies
BCSIR : Bangladesh Council for Scientific and Industrial Research
BDT : Bangladesh currency Taka
BPDB : Bangladesh Power Development Board
cc : cubic centimeter
CDM : Clean Development Mechanism
CFL : Compact Fluorescent Lamp
CPP : Captive Power Plant
dia : diameter
DLO : District Livestock Officer
DLS : Department of Livestock Services
ft 3 : cubic feet
g : gram
GDP : Gross Domestic Product
GS : Grameen Shakti
GTZ : German Technical Cooperation
GWh : Gigawatt hour
HP : Horse Power
HZ : Hertz
IRR : Internal rate of return
IPP : Independent Power Producer
kg : kilogram
kgoe : kilogram of oil equivalent
KV : kilovolt
kW : Kilowatt
kWh : Kilowatt hour
v

LIST OF ABBREVIATION (Contd…)
l : litre
LGED : Local Government Engineering Department
LPG : Liquid Petroleum Gas
m³ : Cubic meter
MJ : Mega Joule
MMCF : Million cubic feet
MW : Megawatt
MWh : Megawatt hour
NEP : National Energy Policy
NPV : Net present value
PBP : Pay back period
PBS : Palli Bidyuit Samity
pm : post meridiem
PPA : Power Purchase Agreement
ppm : parts per million
PVC : Polyvinyl chloride
REB : Rural Electrification Board
SPP : Small Power Plant
sq km : square kilometer
TCE : Ton of coal equivalent
TCF : Trillion cubic feet
TGTDCL : Titas Gas Transmission and Distribution Company Limited
VAT : Value Added Tax
vi

LIST OF TABLE
Title Page
Table 2.1 Estimated sizes of the poultry farms........................................................................14
Table 2.2 Key Statistic of Gazipur District..............................................................................16
Table 3.1 Sample distribution of different size of poultry farm ..............................................22
Table 5.1 Heating values of commercial fuels and its correspond to Biogas..........................41
Table 5.2 Test results of dry biogas produced from poultry litter ...........................................42
Table 6.1 Cost of Generators ...................................................................................................57
Table 6.2 Financial parameters................................................................................................60
Table 6.3 Cost of different sizes generators from Fair Trade International.............................64
Table 6.4 Summary of estimated potential of electricity generation, fertilizer production and
CO2 savings in Scenario I ................................................................................................68
Table 6.5 Summary of estimated potential of electricity generation, fertilizer production and
CO2 savings in Scenario II...............................................................................................68
Table 6.6 Summary of estimated potential of electricity generation in GWh/ Year in Gazipur
district ..............................................................................................................................71
Table 6.7 Summary of estimated potential of electricity generation in GWh/ Year in
Bangladesh.......................................................................................................................71
Table 6.8 Summary of estimated potential of electricity generation in GWh/ Year in Gazipur
district ..............................................................................................................................73
Table 6.9 Summary of estimated potential of electricity generation in GWh/ Year in
Bangladesh.......................................................................................................................74
vii

LIST OF FIGURES
Title page
Figure 2.1 Showing the Geography of Bangladesh ...................................................................6
Figure 2.2 Consumption of natural gas by category of sectors..................................................7
Figure 2.3 Total Installed Capacity by Type of Fuel.................................................................8
Figure 2.4 Sector wise Final Consumption of Commercial Energy ..........................................9
Figure 2.5 Estimates of Energy Supplied by Traditional Fuels.................................................9
Figure 2.6 Trend of growth of poultry birds in Bangladesh during 2001-02 to 2005-06.......13
Figure 2.7 Trend of growth of poultry farms in Bangladesh in different periods ...................13
Figure 2.8 Geography of Gazipur District ...............................................................................15
Figure 2.9 Upazillawise total number of poultry farm ............................................................18
Figure 2.10 Upazillawise total number of poultry bird............................................................18
Figure 2.11 Average number of bird in layer farm in different upazilla .................................19
Figure 3.1 Sample distribution according to upazilla and biogas plant...................................22
Figure 4.1 Showing different types of lamp ............................................................................28
Figure 4.2 The percentage of poultry farms using different types of bulb ..............................28
Figure 4.3 Showing Fan...........................................................................................................29
Figure 4.4 Duration of using fan in poultry farms...................................................................30
Figure 4.5 Showing the brooder...............................................................................................31
Figure 4.6 Showing Electric Pump and Hand Tube Well........................................................32
Figure 4.7 The daily electricity consumption pattern in summer ............................................33
Figure 4.8 The daily energy consumption pattern in winter....................................................33
Figure 4.9 Duration of load shedding frequency .....................................................................34
Figure 4.10 Percentage of back up system...............................................................................34
Figure 4.11 Existing size of biogas plant as a percentage of total potential............................36
Figure 4.12 Disposal of poultry droppings ..............................................................................37
Figure 5.1 Showing different components of power plant at Bogra Poultry Complex ...........39
Figure 5.2 Showing different components of power plant at Bogra Poultry Complex ...........40
Figure 5.3 Moisture filter and Generator set in Faridpur Muslim Mission .............................41
Figure 5.4 Flow diagram of GTZ Flagship Project at Raj Poultry Farm.................................44
Figure 5.5 Biogas plants in Raj Poultry Farm..........................................................................45
Figure 5.6 Shows the H2S removal unit...................................................................................46
Figure 5.7 Moisture removal unit ............................................................................................48
viii

LIST OF FIGURE (Contd...)
Title page
Figure 5.8 Shows the generator and venturi ............................................................................49
Figure 5.9 Flow diagram of producing electricity in the study area........................................50
Figure 5.10 Different components of the plant........................................................................51
Figure 6.1 Cost of bio gas plant...............................................................................................56
Figure 6.2 NPV of different size of farms with different product for revenue under Scenario I
.........................................................................................................................................61
Figure 6.3 NPV of different size of farms with different product for revenue under Scenario II
.........................................................................................................................................61
Figure 6.4 IRR of different size of farms with different product for revenue under Scenario I
.........................................................................................................................................62
Figure 6.5 IRR of different size of farms with different product for revenue under Scenario II
.........................................................................................................................................62
Figure 6.6 IRR of different size of farms with cost digression of generators for Scenario I...65
Figure 6.7 IRR of different size of farms with cost digression of generators for Scenario II .66
Figure 6.8 IRR at different investment cost (1000 birds farm)................................................70
Figure 6.9 IRR at different investment cost (1000 birds farm)................................................70
Figure 6.10 NPV at different discount factor (3000 birds farm) .............................................72
Figure 6.11 NPV at different discount factor (3000 birds farm) .............................................73
ix

LIST OF UNITS
1 Ton of coal equivalent = 0.695 Ton of oil equivalent
1 Ton of coal equivalent = 27.55 ×10 6 British thermal unit
1 MMSCF of natural gas = 172.3 barrels of crude oil equivalent
1 MJ = 947.8171 British thermal unit
1 GWh = 10 9 kWh
1 kWh = 3.6 MJ
1 HP = 0.746 kW
1 MMCF = 28316.85 m³
1 kgoe = 42 MJ = 11.63 kWh
1 m 3 = 35.31 ft 3
Currency conversion
The exchange rate was considered at 68.50 BDT/ US$.
Source: http://www.bangladesh-bank.org/econdata/exchangerate.php date:06.07.2007
x

ACKNOWLEDGEMENT
The author is grateful to express his sincere gratitude to Deutscher Akademischer Austausch-
Dienst (DAAD) for providing him an opportunity to pursue higher education in Germany.
The author is also grateful to University of Flensburg, where he gained invaluable academic
knowledge during seminar phase. In this connection, the author expresses his hearty gratitude
to the professors and lecturers who contributed a lot in the seminars. The author is gratified to
express his deep sincere thanks to Dipl.-Ing. Wulf Boie and Dr.Dieter W. Klein for their
valuable guidance and suggestion at different stages of this research. The author would like to
express his gratitude to Prof. Dr. M. A. Rashid Sarkar for supervising him during the field
research. Then his sincere thanks go to Dr. Khursheed-Ul-Islam and Dr. M. Khaleq-uz-zaman
of GTZ Bangladesh and Mr. M. A. Gofran of Grameen Shakti for supporting to carry out the
field visit and providing relevant information of the study. The author also expresses his
sincere thanks to all the stakeholders of the study area for providing information regarding
this research. The author is also grateful to Titas Gas Transmission & Distribution Company
Limited for giving the opportunity to pursue this study. At last but not least, the author
expresses his sincere thanks Ms. Khetsiwe Khumalo and Ms. Skadi Zscheile for their kind
cooperation.
The Author
xi

EXECUTIVE SUMMARY
Introduction: The Per capita energy consumption in Bangladesh is 197 kg of oil equivalent
(kgoe), which is far less than the averages for low income (563 kgoe) countries 1 . Around
33% (Hossain and Tamim, 2005/2006, p. 16) of the total population is covered by electricity
network and 4% (ibid, p. 13) are covered under natural gas network. About 40% of the total
primary energy of the country comes from renewable energy, mainly biomass (Draft NEP,
2006, p. 1). Biogas is one of the promising renewable energy sources in Bangladesh.
Different sources of biogas in the country are cattle dung, poultry dropping, crop residue,
kitchen waste etc. The country has a promising poultry industry to meet up the protein need
of the people. There were about 130 thousand poultry farms in the country in 2005-2006 2 .
The number of birds in poultry farms was about 194.82 million in 2005-2006 (ibid). These
poultry farms have a huge potential to produce biogas which can later be used to generate
electricity. Recently, the government, non government organizations (NGO) and private
entrepreneurs have installed small scale gas generators in some poultry farms to produce
electricity. At the same time the poultry farms in the country are facing enormous power
shortage every day which hampers the production of the industry. Dissemination of the
technology could meet the poultry sector’s electricity demand as well as the need of adjacent
households. This can reduce the burden on national electricity grid and contribute to the
national economy as well.
Objective: The main objective of the study was to identify the economic potential of
electricity generation from poultry waste in commercial poultry sector in Bangladesh.
Methodology: The study was carried out as a case study in Gazipur district of Bangladesh
during April 2007 to June 2007. Data was collected by interviewing poultry farmers with
structured questionnaire, visiting poultry farms, discussions and interviews with key
personnel and visiting different concerned institutions. All the quantitative data was analyzed
using Microsoft excel. To find out the minimum size of poultry farm financial analysis was
done for different size of poultry farms. For financial analysis, the technology used in GTZ
flagship project at Raj Poultry Farm in Faridpur district was considered. Two different
scenarios were considered in the analysis based on the time duration for which the poultry
1
http://www.acdis.uiuc.edu/Research/OPs/Samrina/contents/part1.html, printed on 18.08.2007
2
Data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of Livestock Services (DLS),
Dhaka-1215, Bangladesh, 17.05.2007
xii

farms can produce electricity. Scenario I considered electricity production for five hours in
the country peak hour while Scenario II considered electricity production for twelve hours,
which is the total daily consumption of the poultry farms. Four different cases were
considered under each scenario. The first case considered only electricity as a product to earn
revenue, while the second case considered cost of CO2 and cost of electricity as revenue
earning products. Third case considered the cost of fertilizer and cost of electricity as
products to earn revenue and lastly, the fourth case considered CO2, fertilizer and electricity
all together as revenue earning products. All these cases were considered under each scenario
to find out the minimum sizes of poultry farm. Then the potential of electricity production for
different cases under different scenarios were estimated on the basis of sample data in the
study area.
Energy Consumption Status in Poultry Farms: Electricity is inevitable for the production
of eggs and for the growth of the birds as well. Electricity is used in the industry mainly by
lamps to provide proper lighting in the poultry shed, fans to maintain the required
temperature, brooder to brood up the chicks and the water pumps to supply water.
The daily electricity consumption of poultry farms usually starts at about 10 am in the
morning and continues till 10 pm in the evening. 100% poultry farms experience load
shedding for about 4 hours a day mostly in the evening. Only 30% of the farms have backup
system to face power cut whereas the rest 70% does not have any back up system.
Biogas produced in different poultry farms is used mainly for household cooking. Very few
poultry farms in Gazipur district and as well as in the country use biogas both for thermal
purpose and producing electricity. About 38% farms can sell their biogas to at least one
customer and the rest 62% does not have any market to sell it. So production of electricity
could be an option to utilize the biogas properly. Only 8% of the farms use slurry as fertilizer,
whereas the rest 92% does not use it as fertilizer due to lack of awareness of the farmers
about the benefit of using it. At the same time, the existing law does not permit farmers to sell
slurry without patent. Currently there is no market for slurry. However, few large farms sell
slurry as fertilizer with patent.
Present Status of Electricity Generation from Poultry Waste: Electricity production from
poultry waste is relatively new in Bangladesh. Different types of technologies are being used
in different poultry farms in the country. The most common one is to use natural gas
generator which uses biogas as fuel. Most of the farms which are producing electricity from
poultry waste do not have any H2S removal unit. H2S is severely corrosive to all metals
xiii

associated with the transportation of gas and metal parts of engine which is driven by such
gas containing H2S. To overcome these problems associated with H2S, GTZ Bangladesh has
installed a flagship project at Raj Poultry Farm in Faridpur district which is more scientific
than any other technology being used in the currently.
Financial Analysis: On the basis of different assumption NPV, IRR and Payback Period
were calculated for poultry farms with the sizes of 500, 1000, 2000, 3000, 4000, 5000, 6000,
7000, 8000, 9000, 10000, 15000, 20000 and 50000 birds. The discount rate was considered at
8% and the life of the project was considered 20 years. NPV, IRR and Payback Period were
calculated for each size of poultry farms under both Scenarios I & II for four different cases.
The calculation was done to find out the minimum sizes of poultry farms which could
produce electricity with financial viability.
It was found that poultry farms ranging from 500 birds to 50000 birds all face negative NPV
and lower IRR than the discount rate and very high payback period in the case when only
electricity is considered as a product to earn revenue. In addition of CO2 cost with electricity
cost can not make any size of poultry farm financially viable in Scenario I where electricity is
produced for five hours a day. On the other hand in Scenario II where electricity is produced
for twelve hours a day, in addition of CO2 cost with electricity cost makes the farms
financially viable with a capacity of 6000 birds and above. In addition of fertilizer cost in
stead of CO2 cost with electricity cost, makes the farms financially viable with the capacity of
1000 birds and above. In this case NPV was found positive, IRR is higher than the discount
rate and pay back period is much lower than the project life. Finally, the addition of CO2 cost
with fertilizer and electricity cost also makes viable the farms with the capacity ranging from
1000 birds and above. However, for the farm with capacity of 500 birds, it was found that
NPV is negative and IRR is lower than the discount rate for even considering CO2, fertilizer
and electricity all together as product to earn revenue.
Estimate of Total Potential: There is no economic potential in the study area as well as in
the country to produce electricity from poultry waste in this case if only electricity is
considered as a product to earn revenue. The estimated potential to produce electricity is
about 13 GWh in Gazipur district and 135 GWh in the country per year when CO2 cost is
added with electricity cost provided electricity is produced for twelve hours a day for the total
daily consumption of the farm. However, there is no economic potential if the electricity is
produced for five hours a day only during the country peak. The maximum estimated
potential to produce electricity for Gazipur district and the country is 34 GWh/year and 360
xiv

GWh/year respectively provided fertilizer cost is added with electricity cost irrespective of
numbers of hours of electricity generation.
Conclusion: There is a potential to produce electricity from poultry waste and there is high
interest from farmers to produce the electricity. This interest has come due to the fact that all
the poultry farms experience load shedding through out the day mostly in the evening which
hampers the production of the farm. Electricity can be produced from poultry waste for the
total daily consumption of most of the poultry farms and in addition electricity can also be
produced for the peak hour only to save farms from being cut off. Electricity generation for
12 hours through out the day is more financially feasible than producing electricity for 5
hours during peak hour. However, only electricity as a product to earn revenue in not enough
to make the poultry farms financially viable to produce electricity. Fertilizer is the most vital
element as a product to earn revenue with electricity to make poultry farms financially
feasible to produce electricity. Therefore, to harness the energy from poultry waste in the
national energy mix the amendment of existing law is required to eliminate the bureaucratic
obstacles and awareness raising is required among the people regarding the benefit of slurry
as fertilizer to create the market for slurry.
xv

ZUSAMMENFASSUNG (Summary in German)
Einleitung. Der Pro-Kopf-Energieverbrauch in Bangladesch beträgt 197 kgoe, was
wesentlich unter dem Durchschnitt der einkommensschwachen Länder liegt. Rund 33% der
Gesamtbevölkerung sind an das Stromnetz angeschlossen, 4% werden durch Erdgas versorgt.
Etwa 40% der gesamten Primärenergie des Landes wird durch erneuerbare Energien
gewonnen, überwiegend Biomasse. Eine der erfolgsversprechenden Quellen im Bereich der
erneuerbaren Energien in Bangladesch ist Biogas. Zu den verschiedenen Biogasquellen des
Landes gehören Kuhdung, Geflügeldung, Getreideabfälle, Küchenabfälle etc. Das Land
besitzt eine vielversprechende Geflügelindustrie, die den Proteinbedarf der Menschen decken
soll. In den Jahren 2005 bis 2006 gab es rund 130.000 Geflügelfarmen im Land. Die Anzahl
der Vögel auf den Geflügelfarmen betrug dabei rund 194,82 Millionen. Diese
Geflügelfarmen besitzen ein sehr großes Potential, Biogas zu produzieren, welches später zur
Sromerzeugung verwendet werden kann. Kürzlich haben die Regierung,
regierungsunabhängige Organisationen und private Unternehmer Kleingasgeneratoren in
einigen Geflügelfarmen angebracht, um Strom zu erzeugen. Gleichzeitig sind die
Geflügelfarmen im Land täglich Energieengpässen ausgesetzt, was die Produktion hemmt.
Die Verbreitung der Technologie könnte den Elektrizitätsbedarf im Bereich der
Geflügelzucht sowie den Bedarf der angrenzenden Haushalte befriedigen. Dies kann dann die
Belastung auf das nationale Stromnetz verringern und einen Beitrag zur Volkswirtschaft
leisten.
Ziel der Studie. Das Hauptziel der Studie war, das wirtschaftliche Potential der
Stromerzeugung mittels Geflügeldung im kommerziellen Geflügelbereich in Bangladesch zu
bestimmen.
Methodik. Die Studie wurde als Fallstudie im Gazipur Bezirk von Bangladesch von April bis
Juni 2007 durchgeführt. Daten wurden gesammelt, indem Geflügellandwirte mit
strukturiertem Fragebögen befragt und Geflügelfarmen besichtigt wurden. Außerdem wurden
Diskussionen und Interviews mit Schlüsselpersonal geführt und unterschiedliche beteiligte
Einrichtungen besichtigt. Alle quantitativen Daten wurden mit Hilfe von Microsoft Excel
analysiert. Um die minimale Größe einer Geflügelfarm zu bestimmen, wurde eine finanzielle
Analyse für Geflügelfarmen mit unterschiedlicher Größe durchgeführt. Für die finanzielle
Analyse wurde die Technologie, die im GTZ Flaggschiffprojekt auf Raj Geflügelfarm im
Faridpur Bezirk verwendet wurde, in Betracht gezogen. Bei der Analyse wurden zwei
xvi

unterschiedliche Szenarien berücksichtigt, die darauf basierten, in welcher Zeitspanne die
Geflügelfarmen Strom produzieren können. Szenario I betrachtete die Stromerzeugung fünf
Stunden lang in der Spitzenzeit des Landes, während Szenario II die Stromerzeugung zwölf
Stunden lang betrachtete, was dem Gesamttagesverbrauch der Geflügelfarmen entspricht.
Vier unterschiedliche Fälle wurden jeweils bei den Szenarien betrachtet. Beim ersten Fall
wurde Strom nur als ein Produkt betrachtet, um Einnahmen zu erzielen, während beim
zweiten Fall Kosten für CO2 und die Kosten für Strom als Einnahmequellen betrachtet
wurden. Beim dritten Fall wurden die Kosten für Düngemittel und die Kosten für Elektrizität
als Einnahmequellen betrachtet. Beim vierten Fall schließlich wurden CO2, Düngemittel und
Strom zusammen als gewinnbringende Produkte angesehen. Alle Fälle wurden unter jedem
Szenario betrachtet, um die minimale Größe einer Geflügelfarm zu ermitteln. Dann wurde
das Potential der Stromgewinnung, auf der Grundlage von Beispieldaten im Studiengebiet,
für unterschiedliche Fälle unter unterschiedlichen Szenarien geschätzt.
Status des Stromverbrauchs auf Geflügelfarmen. Elektrizität ist für die Produktion der
Eier und für das Wachstum der Vögel unabdingbar. Elektrizität wird in der Industrie
hauptsächlich für Lampen verwendet, um korrekte Beleuchtung in der Geflügelhalle zu
erzeugen, für Ventilatoren, um die erforderliche Temperatur zu gewährleisten, im Brutkasten,
um die Küken zu brüten und für die Wasserpumpen, die das Wasser liefern. Der tägliche
Stromverbrauch der Geflügelfarmen beginnt gewöhnlich 10 Uhr morgens und setzt sich bis
10 Uhr abends fort. 100% der Geflügelfarmen haben einen Lastabwurf von ca. 4 Stunden pro
Tag, meistens am Abend. Nur 30% der Farmen haben eine Ausweichanlage für den Fall eines
Stromausfalls, die restlichen 70% verfügen über keinerlei Sicherungssystem. Biogas, das auf
den unterschiedlichen Geflügelfarmen produziert wird, wird hauptsächlich für das Kochen im
Haushalt verwendet. Nur eine sehr gerine Anzahl von Geflügelfarmen im Gazipur Bezirk
sowie im gesamten Land benutzt Biogas sowohl für Wärmeerzeugung als auch zur
Stromerzeugung. Ungefähr 38% der Farmen können ihr Biogas an mindestens einen Kunden
verkaufen, der Rest von 62% hat keinen Markt, um es zu verkaufen. Daher könnte die
Erzeugung von Strom eine Methode sein, das Biogas in geeigneter Weise zu verwenden.
Nur auf 8% der Farmen wird Flüssigmist als Düngemittel benutzt, während die restlichen
92% der Landwirte Flüssigmist nicht als Düngemittel verwenden, da ihnen das Wissen über
den Nutzen fehlt. Gleichzeitig verbietet das geltende Recht den Landwirten, den Flüssigmist
ohne Patent zu verkaufen. Z.Z. gibt es daher keinen Markt für Flüssigmist. Jedoch verkaufen
wenige große Farmen Flüssigmist als Düngemittel mit Patent.
xvii

Gegenwärtiger Status der Stromerzeugung durch Geflügeldung. Stromerzeugung ist
relativ neu in Bangladesch. In den unterschiedlichen Geflügelfarmen des Landes werden
verschiedene Technologien verwendet. Die gebräuchlichste ist die Verwendung eines
Erdgasgenerators, der Biogas als Treibstoff verwendet. Die meisten Farmen, die Strom durch
Geflügeldung gewinnen, haben keine H2S-Abfuhr. H2S ist gegenüber allen Metallen streng
ätzend, die mit dem Transport der Gas- und Metallteile einer Maschine verbunden sind, die
durch ein solches Gas, das H2S enthält, angetrieben wird. Um die mit H2S verbundenen
Probleme zu überwinden, hat GTZ Bangladesch ein Flaggschiffprojekt auf der Raj Geflügel-
Farm im Faridpur Bezirk ins Leben gerufen, das wissenschaftlicher ist als jede mögliche
andere Technologie, die z.Z. verwendet wird.
Finazielle Analyse. Auf der Grundlage von unterschiedliche Annahmen, wurden NPV, IRR
und Amortisationsdauer für Geflügelfarmen mit den Größen von 500, 1000, 2000, 3000,
4000, 5000, 6000, 7000, 8000, 9000, 10000, 15000, 20000 und 50000 Vögeln errechnet. Der
Diskontsatz wurde bei 8% betrachtet und die Lebensdauer des Projektes wurde auf 20 Jahre
festgesetzt. NPV, IRR und Amortisationsdauer wurden für jede Größe von Geflügelfarmen
unter den Szenarien I und II für vier unterschiedliche Fälle errechnet. Die Berechnung wurde
durchgeführt, um die minimale Größe für Geflügelfarmen, die Elektrizität mit finanzieller
Rentabilität erzeugen können, herauszufinden. Es wurde festgestellt, dass Geflügelfarmen,
mit 500 Vögeln bis zu 50.000 Vögeln alle einem negativen NPV und niedrigeren IRR
gegenüberstehen, als der Diskontsatz sowie eine sehr hohe Amortisationsdauer in dem Falle,
dass Elektrizität als alleinige Einkommensquellle angesehen wird. Auch wenn es CO2– und
Elektrizitätseinnahmen gibt, ist nicht jede Größe von Geflügelfarmen finanziell
kostendeckend, wie im Szenario I, wo täglich 5 Stunden Elektrizität pro Tag erzeugt wird. Im
Szenario II hingegen, wo Elektrizität für zwölf Stunden pro Tag produziert wird, sind die
Farmen dann finanziell kostendeckend, wenn Sie eine Kapazität von 6000 Vögeln und mehr
aufweisen. Werden anstelle des CO2 Gewinne durch Düngemittel und Strom erzielt, muss mit
mindestens 1000 Vögeln und mehr gewirtschaftet werden. In diesem Fall konnte das NPV als
positiv erachtet werden; das IRR ist höher als der Diskontsatz und der Rückzahlungszeitraum
ist wesentlich geringer als die Projektlebensdauer. Letztendlich arbeiten Farmen, die CO2 –,
Düngemittel- und Elektrizitätseinnahmen haben dann kostendeckend, wenn Sie eine
Kapazität von 1000 Vögeln und mehr haben. Bei Farmen, die eine Kapazität von 500 Vögeln
haben, ist der NPV jedoch negativ und das IRR geringer als der Diskontsatz, selbst wenn man
das CO2, Düngemittel und Elektrizität als Einnahmequellen betrachtet.
xviii

Es besteht kein wirtschaftliches Potential, sowohl im Studiengebiet als auch im Rest des
Landes, um Elektrizität durch Geflügeldung zu erzeugen, wenn nur die daraus resultierende
Stromerzeugung als Einkommensquelle dient. Das geschätzte Potential der
Elektrizitätserzeugung entspricht etwa 13 GWh im Gazipur Bereich und 135 GWh im
gesamten Land pro Jahr, wenn die CO2--Einnahmen zu den Elektrizitätseinnahmen
dazugerechnet werden. Dabei wird vorausgesetzt, dass 12 Stunden/Tag für den
Gesamtverbrauch der Farm produziert wird.
Wenn jedoch nur 5 Stunden/Tag Energie während der Spitzendstunden des Landes erzeugt
wird, besteht kein wirtschaftliches Potential. Das geschätzte maximale Potential der
Elektrizitätserzeugung im Gazipur Bereich entspricht 34 GWh/Jahr und 360 GWh im
gesamten Land pro Jahr, wenn entsprechend die Einnahmen für Düngemittel zu den
Elektrizitätseinnahmen dazugerechnet werden, unabhängig von der Stundenanzahl der
Stromerzeugung.
Fazit. Elektrizität aus Geflügeldung zu gewinnen, stellt ein Potential dar. Seitens der
Landwirte besteht ein hohes Interesse an dieser Form der Stromerzeugung. Dieses Interesse
besteht aufgrund der Tatsache, daß alle Geflügelfarmen während des Tages, meistens am
Abend, einen Lastabwurf haben, was die Produktion der Farm hemmt. Die gewonnene
Elektrizität aus Geflügeldung kann den Gesamttagesverbrauch der meisten Geflügelfarmen
decken. Zusätzlich kann Elektrizität auch nur für die Spitzenzeiten produziert werden, was
die Farmen vor einem Stromausfall bewahrt. Die Stromerzeugung für zwölf Stunden pro Tag
ist finanziell kostengünstiger, als die Stromerzeugung für 5 Stunden während der
Spitzenzeiten. Allerdings wirtschaften die Farmen nicht kostendeckend, wenn der gewonnene
Strom die einzige Einnahmequelle darstellt. Düngemittel ist das wichtigste Element, damit
mit der Stromerzeugung Einnahmen erzielt werden können, denn nur so können die Farmen
die Kosten, die mit der Stromgewinnung einhergehen, decken. Um die Stromgewinnung
durch Geflügeldung in den nationalen Energiemix einzubringen, ist eine Änderung des
vorhandenen Gesetzes notwendig, die daraus besteht, die bürokratischen Hindernisse zu
beseitigen. Außerdem muss den Menschen bewusst gemacht werden, dass Flüssigmist als
Düngemittel verwendet werden kann. So kann ein Markt für dieses Produkt geschafft werden.
xix

1.1 Background
CHAPTER 1 INTRODUCTION
The Per capita energy consumption in Bangladesh is 197 kg of oil equivalent (kgoe), which is
far less than the averages for low income (563 kgoe) countries 3 . Around 33% (Hossain and
Tamim, 2005/2006, p. 16) of the total population is covered by electricity network and 4%
(ibid, p. 13) are covered under natural gas network. About 82% of total electricity comes
from natural gas 4 . Lack of energy is the main hindering force for poverty alleviation. On the
other hand the reserves of natural gas are running out. To make the energy system of the
country sustainable, searching for alternative sources of energy is mandatory.
Biogas is one of the promising renewable energy sources in Bangladesh. Different sources of
biogas in the country are cattle dung, poultry dropping, crop residue, kitchen waste etc.
Bangladesh has a promising poultry industry to meet up the protein need of the people.
Commercial poultry farms in Bangladesh are growing at a rate of 7% per year since 2001-
2002 5 and the number of birds in the poultry farms is growing at 5.59% per year since 2000-
2001 (ibid). There were about 130 thousand poultry farms in the country in 2005-2006 6 . The
number of birds in poultry farms was about 194.82 million in 2005-2006 (ibid). Theoretically
from these poultry farms about 19482 tonnes of chicken’s droppings can be produced every
day. There are two types of poultry farms in the country and these are; layer farms and broiler
farms. The droppings from broiler farms are not used for biogas generation in the country due
to the nature of rearing the broiler birds which produces droppings in batch not continuous.
However, the droppings from broiler farms can be used to produce electricity by incineration
technology. Biogas can be produced from the layer poultry droppings through digester
technology. The total amount of biogas that can be produced from poultry dropping in the
country is about 753046 m 3 per day 7 . At present, biogas is used mostly for thermal purposes
especially for household cooking and very few for electricity production. The total amount of
3
http://www.acdis.uiuc.edu/Research/OPs/Samrina/contents/part1.html, printed on 18.08.2007
4
http://www.bpdb.gov.bd/installed_fuel.htm, printed on 20.08.2007
5
own calculation based on data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of
Livestock Services (DLS), Dhaka-1215, Bangladesh, 17.05.2007
6
Data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of Livestock Services (DLS),
Dhaka-1215, Bangladesh, 17.05.2007
7
own calculation based on data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of
Livestock Services (DLS), Dhaka-1215, Bangladesh, 17.05.2007 and data provided by Mr. Md. Kafiluddin
Bhuyan, District Livestock Officer, Gazipur, 13.05.2007
1

electricity that could be produced from the poultry farms through digester technology is about
1000 MWh per day (ibid).
Recently, the government, non government organizations and private entrepreneurs have
installed small scale gas generators in some poultry farms to produce electricity. For
example, Local Government Engineering Department (LGED) of Bangladesh has installed an
electricity generation unit from poultry waste at Faridpur Muslim Mission which serves the
farm’s own electricity demand during power cut. On the other hand, Bogra Poultry Complex
itself has installed a system to produce electricity from poultry waste to meet the farms own
electricity demand through out the day. The biogas produced from the poultry waste is using
to generate electricity mostly by natural gas generator.
The poultry farms in the country are facing enormous power shortage every day which
hampers the production of the industry. Dissemination of the technology could meet the
poultry sector’s electricity demand as well as the need of adjacent households. This can
reduce the burden on national electricity grid and contribute to the national economy as well.
1.2 Objective of the Study
The main objective of the study is to identify the economic potential of electricity generation
from poultry waste in commercial poultry sector in Bangladesh.
Specific objective:
1. To estimate the amount of electricity which can be produced if only electricity is
considered as a product to earn revenue under different scenarios.
2. To estimate the amount of electricity which can be produced if CO2 and electricity are
considered as a product to earn revenue under different scenarios.
3. To estimate the amount of electricity which can be produced if fertilizer and
electricity are considered as a product to earn revenue under different scenarios?
4. To estimate the amount of electricity which can be produced if CO2, fertilizer and
electricity are considered as a product to earn revenue under different scenarios.
2

1.3 Research Question
To satisfy the above specific objectives, the study intends to investigate the following
research questions;
1. What is the energy consumption pattern and energy needs in poultry farms?
2. What kind of technology is presently used to produce electricity from poultry waste in
the country?
The above two questions correspond to all the specific objectives.
3. What is the minimum poultry farm size that is economically viable to produce
electricity if only electricity is considered as a product to earn revenue under different
scenarios?
The above question corresponds to the first specific objective.
4. What is the minimum poultry farm size that is economically viable to produce
electricity if CO2 and electricity is considered as a product to earn revenue under
different scenarios?
The above question corresponds to the second specific objective.
5. What is the minimum poultry farm size that is economically viable to produce
electricity if fertilizer and electricity is considered as a product to earn revenue under
different scenarios?
The above question corresponds to the third specific objective.
6. What is the minimum poultry farm size that is economically viable to produce
electricity if CO2, fertilizer and electricity are considered as a product to earn revenue
under different scenarios?
The above question corresponds to the fourth specific objective.
1.4 Research Hypothesis:
1. Poultry waste in commercial poultry sector as a source of biogas has substantial
potential for electricity generation.
2. Producing electricity from poultry waste of commercial poultry sector as a source of
biogas is economically feasible.
3

1.5 Significance of the Study:
Bangladesh is one of the least developed countries in the world and energy poverty is the
main hindrance for poverty alleviation in the country. This study will give the policy makers
a new direction to a more sustainable energy source which can reduce the energy crisis of the
country significantly. This will help to reduce the dependency on fossil fuel to meet up the
energy demand of the country. The study looks into the present status of energy consumption
in different poultry farms which will give the people concerned an idea to find a way to
reduce the energy consumption in poultry sector. The study aims to identify the minimum
poultry farms size which is financially feasible to produce electricity. To disseminate the
technology it is necessary to know the minimum size of poultry farm which are financially
viable. Therefore, the study will help the different stakeholders to disseminate the technology
in a sustainable manner. The study also estimates the total potential of electricity that could
be generated from poultry waste. This will help the public and private sector investors to take
decision in investing for electricity generation from poultry waste.
1.6 Overview of the Chapters
This report is divided into seven chapters. Each chapter is further divided into sub chapters to
look at the subject matter in depth. The first chapter describes an introductory background of
the study, significance of the study, research questions and main objectives of the study.
Second chapter provides the background information of the country as well as the study area
relevant to the study such as energy sector in the country, energy policy issues, poultry sector
etc. and some general features. Third chapter discusses the methodology of the study which
includes the approach of the study, data collection, data analysis, different scenario methods
and scope and limitation of the study. Fourth chapter gives a detail analysis of the energy
consumption status in poultry farms. Fifth chapter describes the present status of electricity
generation from poultry waste in the country. Sixth chapter describes an in depth analysis of
the potential of electricity generation from poultry waste in the country as well as in the study
area. Finally, chapter seven concludes the findings of the study and proposes some
recommendations based upon the findings.
4

CHAPTER 2 BACKGROUND INFORMATION
2.1 Country Background
2.1.1 General Overview
Geographically, Bangladesh lies in the north eastern part of South Asia between 20º34´ and
26º38´ north latitude and 88º01’ and 92º41’ east longitude (BBS, 2007, p. XIX). Bangladesh
is surrounded by India on west, north and north-east and Myanmar on the south-east and the
Bay of Bengal on the south (ibid). The total land area of the country is 56,977 square miles or
1,47,570 square kilometer (sq km) (ibid). The map of the country is given in figure 2.1. The
climate of Bangladesh is sub-tropical monsoon climate. In winter the temperature ranges
from a minimum of 7.22º C -12.77º C to maximum of 23.88º C -31.11º C. The maximum
temperature of the country recorded in summer from 36.66º C to 40.55º C (ibid, p. XX).
The enumerated population of the country is currently 123.8 million (according to the
population census 2001). (BBS, 2007, p. XIX-XX). Out of which the percentage of rural
population is 80.2% and the rest 19.8 % is urban population (ibid, p.32-33 and own
calculation ). The inter-censal growth rate of population in 2001 was 1.48% per annum. (ibid,
p.33) The density of population is 839 per sq km (ibid, p. XIX-XX and own calculation). The
literacy rate in the country is 45.3% for population 7 years or above (ibid, p. XIX-XX).
Bangladesh has six administrative divisions (ibid, p. XXI). These divisions are subdivided
into district or zilla (ibid). The total number of district or zilla in the country is 64 (ibid). Each
district or zilla is further sub-divided into upazila or thana. (ibid).
In 2004-2005 the per capita GDP of the country at current market prices was 27061 BDT or
US$ 440 (1 US$= 61.39 BDT, ibid, p.418) approximately.
5

Figure 2.1 Showing the Geography of Bangladesh
Source: www.un.org/Depts/Cartographic/map/profile/banglade.pdf printed on 04.06.07
6
Gazipur
District

2.1.2 Energy Sector in Bangladesh
Primary Commercial Energy Resources
About 60% of the total primary energy in the country comes from commercial energy sources
(NEP, 2006, p. 1).The primary commercial energy resources in Bangladesh are natural gas
and recently discovered coal. The recoverable proven and probable natural gas reserve in the
country is 20.51 Trillion Cubic Feet (TCF) and the cumulative production up to June, 2004
was 5.90 TCF (BBS, 2007, p. 244). The total gas consumption in 1999-00 and 2004-05 was
8780 MMCF and 12922 MMCF respectively (BBS, 2007, p. 251). The average growth of gas
consumption in the last six years is 7.86%. (ibid and own calculation) With this average
growth of consumption the reserve of natural gas could sustain the country up to the year
2020 without any discovery of new gas fields (BBS, 2007, p. 244, 246, 251 and own
calculation). Natural gas is used both as primary and secondary fuel in the energy mix of the
country. Figure 2.2 shows the consumption of natural gas in different sectors.
in MMCM
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Figure 2.2 Consumption of natural gas by category of sectors
3976
2661
1463
7
137
1486
1199
Power Fertilizer Industrial Commercial Domestic Others
Sector
Source: BBS, 2007, p. 246 and own plotting
The proven coal reserve in Bangladesh is estimated at over 1 billion tons which is equivalent
to 38 TCF of natural gas which is more than three times the remaining proven and probable
gas reserve in the country (NEP, 2006, p. 15).

Power Sector
The total installed capacity of electricity generation in Bangladesh is 5245 MW 8 . Currently
the country is facing enormous electricity deficit. The amount of load shedding is 572 MW
against a maximum load of 3548 MW as on 03.06.2007 9 . Natural gas is the prime source of
primary energy in electricity generation followed by furnace oil. Figure 2.3 shows the
installed capacity of electricity generation by type of fuel.
4.08%
Figure 2.3 Total Installed Capacity by Type of Fuel
5.34% 4.39% 4.77%
Total 5245 MW
8
81.84%
Gas
Diesel
Furnace oil
Hydro
Source: http://www.bpdb.gov.bd/installed_fuel.htm printed on 20.08.2007
Final Consumption of Commercial Energy
Commercial energy includes natural gas, electricity, petroleum products and coal (BBS,
2007, p. 252). The commercial energy consumed by different sectors is shown in Figure 2.4.
The total final energy consumption was 33416 thousand tons of coal equivalents (TCE) in
2003-04 (ibid). The share of consumption of final commercial energy in different sectors are
as follows: domestic 17.43%, industrial 9.83%, commercial 0.95%, transport 23.70%,
agriculture & others 12.45% and non energy use ( use as a raw material for fertilizer
production) 35.63%. (ibid and own calculation)
8 http://www.bpdb.gov.bd/key_statistics.htm printed on 20.08.2007
9 http://www.bpdb.gov.bd/download/Daily_Summery_Report.pdf printed on 20.08.2007
Coal

'000' tons of coal equivalent
14000
12000
10000
8000
6000
4000
2000
0
Figure 2.4 Sector wise Final Consumption of Commercial Energy
5826
Demestic/
Residential
Traditional Fuel Supply
3286
317
Industrial Commercial/
Services
9
Sector
7921
4160
Transport Agriculture &
Others
11906
Non-energy
use
Source: BBS, 2007, p. 252 and own plotting
About 40% of the total primary energy of the country comes from renewable energy, mainly
biomass (NEP, 2006, p. 1). The total amount of energy supplied by traditional biomass fuel in
unorganized sector was 15353 thousand TCE in 2004-05 (BBS, 2007, p. 253). Figure 2.5
shows the estimates of energy supplied by different types of traditional fuel in 2004-05. The
percentage distribution of different types of traditional fuels are as follows: cow dung
16.49%, jute stick 5.72%, rice straw 9.18%, rice hulls 18.59%, bagasse 2.55%, firewood
26.29%, twigs leaves 11.39% and other wastes 9.15% (ibid and own calculation).
'000' tons of coal equivalent
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Figure 2.5 Estimates of Energy Supplied by Traditional Fuels
2532
878
1410
Cowdung Jute Stick Rice
Straw
2854
392
4133
1749
Rice Hulls Bagasse Firewood Twigs
Leaves
Type of fuel
1405
Other
Wastes
Source: BBS, 2007, p. 253 and own plotting

Biogas plant in the country
Different organizations both government and non government are involved in disseminating
the biogas technology through out the country. Total number of biogas plants in the country
is about 25000. So far Bangladesh Council for Scientific and Industrial Research (BCSIR)
has installed about 22000 biogas plants in the country 10 . Besides, Local Government
Engineering Department (LGED) has installed about 1167 11 , Bangladesh Rural Advancement
Committee has installed about 1200 (Nes et al., 2005, p. 36), Grameen Shakti (GS) has
installed 500 12 and Department of Environment has installed about 260 biogas plant (Ali
2005, p. 26) in the country. However, the number of biogas plants in the poultry sector is not
significant. Out of the total number of biogas plants, in the poultry sector BCSIR has installed
about 3000 to 3500 biogas plants 13 , whereas the number of biogas plants installed in poultry
sector by LGED and GS are 20 14 and 150 15 respectively.
Energy Policy in Bangladesh
Energy is one of the driving forces for the socio-economic development of the country.
Government of Bangladesh has given continuing attention for the overall development of
energy sector. As a consequence the government had declared the first National Energy
Policy (NEP) of the country in 1996. Due to the rapid change in the global situation as well
as in the country the government has updated the NEP in 2004 (NEP, 2004, p. 1-2). The main
objectives of the revised NEP are as follows:
“(i) To provide energy for sustainable economic growth so that the economic
development activities of different sectors are not constrained due to shortage of
energy.
(ii) To meet the energy needs of different zones of the country and socio-economic
groups.
(iii) To ensure optimum development of all the indigenous energy sources.
(iv) To ensure sustainable operation of the energy utilities
(v) To ensure rational use of total energy sources.
(vi) To ensure environmentally sound sustainable energy development programmes
causing minimum damage to environment.
(vii) To encourage public and private sector participation in the development and
management of the energy sector.
(viii) To bring entire country under electrification by the year 2020.
10 Interview by the author with Mr. Kazi Akhtaruzzaman, Director, BCSIR Laboratories, Dhaka, 13.06.2007
11 http://www.lged-rein.org/biomass/biopro_lged.htm, printed on 15.08.2007
12 http://www.grameen-info.org/grameen/gshakti/index.html, printed on 15.08.2007
13 Interview by the author with Mr. Kazi Akhtaruzzaman, Director, BCSIR Laboratories, Dhaka, 13.06.2007
14 http://www.lged-rein.org/biomass/biopro_lged.htm, printed on 15.08.2007
15 Interview by the author with Mr. M.A.Gofran, Biogas Consultant, Grameen Shakti, Dhaka, 21.05.2007
10

(ix) To ensure reliable supply of energy to the people at reasonable and affordable
price.
(x) To develop a regional energy market for rational exchange of commercial energy
to ensure energy security” (NEP, 2004, p. 2).
Renewable Energy Policy
The National Energy Policy (NEP) 1996 also covers the Renewable Energy Policy. There are
different objectives set in the policy for the development of renewable energy sectors. The
objectives are given below:
“• Promotion of renewable energy attracting private capital investment
• To accelerate electrification program using renewable energy resources
• To reduce pressure on commercial fuels
• Generation of power utilizing renewable energy to share at least 5% of total demand by
2010 and 10% by 2020.
• To ensure optimum development of all renewable energy sources
• To ensure environmentally sound sustainable energy development programs causing
minimum damage to environment.
• To encourage public and private sector participation in the development renewable
energy
• To promote competition among the entrepreneurs” (NEP, 2004, p. 42).
Under the policy, the renewable energy entrepreneur is responsible to find its consumer for
electricity. The tariff of electricity can be settled mutually by the entrepreneur and the
consumer. The entrepreneur can build its own distribution system or it can use the existing
distribution system of different utilities subject to payment of wheeling charges. The utilities
may buy the electricity from the grid connected renewable energy projects through mutually
agreed Power Purchase Agreement (PPA). The policy offers different financial incentives to
promote the sector. The renewable energy entrepreneurs shall be exempted from corporate
income tax for a period of 15 years. 100% depreciation in the first year was considered for
solar projects and 100% depreciation for 5 years was considered for other renewable projects
such as wind, biogas etc. Import of renewable energy plant or equipments will be free of
custom duties and Value Added Tax (VAT). Foreign investors are encouraged to enter the
business with join venture. The policy also offers some other incentives for the foreign
investors (NEP, 2004, p. 43-44).
11

Small Power Plant (SPP) Policy 16
Under Small Power Policy the private investors are allowed to generate electricity for their
own use and sell the excess electricity to the other consumers. The SPPs can be located at any
part of the country. The SPPs can use natural gas as primary energy if it is within the natural
gas network or the SPPs can arrange their own fuel. It is the responsibility of the SPP to find
out their customers for electricity and they will have direct contract with the consumers for
the sell of electricity. For power transmission the SPPs can build their own distribution
network or they can use the existing transmission system subject to the payment of wheeling
charges and the adequacy of the capacity of the network. The tariff of electricity shall be as of
the tariff announced by the government if the area is covered by the national grid. On the
other hand, where there is no electricity network, the tariff can be negotiated between the
SPPs and the consumers. However, it is not clear whether government would charge any
tax/VAT on such sell.
Captive power policy 17 :
For a long time the country had no captive power policy, however, the government approved
the captive power policy in February 2007. According to the policy the Captive Power Plants
(CPP) are now allowed to sell their excess electricity to the electric utility. However, the
electric utility power purchaser has the right not to purchase electricity from CPP during offpeak
hours. CPP is responsible to build the interconnection network required for the supply
of electricity on to the grid. The cost for inter connection with network including switch gear;
metering, protection etc. will be born by the owner of the CPP. To sell electricity to the
electric utility other than the host electric utility, CPP may use the existing transmission
system subject to payment of the wheeling charge applicable and the adequacy of the
capacity of the network. The tariff for purchasing power from a CPP shall not exceed the
tariff by which Bangladesh Power Development Board (BPDB) sells power at 132 KV
excluding wheeling charge. No banking of energy is allowed under this policy. Separate
billing will be carried out for export and import of energy by the CPP.
16 Summarized from Policy Guidelines for Small Power Plant (SPP) in private sector, 2001.
17 Summarized from Policy Guidelines for Power Purchase from Captive Power Plant, 2007
12

2.1.3 Poultry Sector in Bangladesh
In 2005-06 the total number of poultry birds was 194.82 million and the number of poultry
farms was 130 thousand 18 . It is shown from Figure 2.6 that the poultry industry in
Bangladesh has flourished in the late 90’s and the number of poultry farm is increasing day
by day. Since 2001-02, the rate of growth of poultry farm is about 7% and since 2000-01, the
rate of growth of poultry bird is about 5.59% (ibid and own calculation). Figure 2.6 and
Figure 2.7 shows the trend of growth of poultry bird from 2001-02 to 2005-06 and the
cumulative number poultry farms in different periods respectively.
in Million
Figure 2.6 Trend of growth of poultry birds in Bangladesh during 2001-02 to 2005-06
250
200
150
100
50
0
152.24
162.44
13
172.63
183.45
194.82
2001-2002 2002-2003 2003-2004
Year
2004-2005 2005-2006
Source: Own plotting based on data provided by Mr. A. S. Md. Abdul Hannan, Scientific
Officer, Department of Livestock Services (DLS), Dhaka-1215, Bangladesh, 17.05.2007
in Thousand
Figure 2.7 Trend of growth of poultry farms in Bangladesh in different periods
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
0.79
60.67
91.43
118.53
1979-1980 1997-1998 2000-2001
Year
2004-2005 2005-2006
Source: Own plotting based on data provided by Mr. A. S. Md. Abdul Hannan, Scientific
Officer, Department of Livestock Services, Dhaka-1215, Bangladesh, 17.05.2007
18
data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of Livestock Services (DLS),
Dhaka-1215, Bangladesh, 17.05.2007
130

It is really difficult to get reliable data or statistics on the size of poultry farms in Bangladesh
as there is no poultry census in the country. However, Dr. Mahbubur Rahman in an interview
(quoted in BCAS, 2005, p. 38) gave a more detail estimate of the farm sizes which are shown
in Table 2.1.
Table 2.1 Estimated sizes of the poultry farms
Size (No of birds) No. of farms (approximate) Percentage
100-249 15000 12.90%
250-499 35000 30.11%
500-999 45000 38.71%
1000-4999 12000 10.32%
5000-9999 8000 6.88%
10000-50000 1200 1.03%
> 50000 50 0.04%
Total 116520
Source: BCAS, 2005, p. 38 and own calculation
14

2.2 Study Area Background
2.2.1 Geography
Gazipur district lies between 23º53´ and 24º21´ north latitude and 90º09’ and 90º22’ east
longitude (BBS, 2006, p. 1). It is bordered by Kishoreganj and Maymenshing on the north,
Dhaka, Narayanganj and Narsingdi districts on the south, Narsingdi district on the east and
Dhaka and Tangail district on the west (ibid). The geography of the district is shown in
Figure 2.8.
Figure 2.8 Geography of Gazipur District
Source: http://www.banglapedia.search.com.bd/Maps/MG_0065.GIF printed on 10.06.2007
15

2.2.2 Key Statistics of the Study Area
Gazipur zila was previously a sub-division of Dhaka district. It was upgraded to a district in
1984 (BBS, 2006, p. 1). Key statistic of the study area is given in the following table Table
2.2 .
Table 2.2 Key Statistic of Gazipur District
Established 1984
Population 2 Million
Area 1741 sq km
Household 448258
Number of Household electrified
Administrative Units
235768
Upazilla 5
Union 45
Village 1162
Municipality 2
Literacy 56.4%
Per Capita GDP 693 US$
Growth rate 5.17%
Source: Author based on BBS 2007, p. 490 and BBS, 2006, p. Xi, 1, 9
2.2.3 Available Energy information in the study area
Electricity: In Gazipur district as a whole the total 56.39% (BBS, 2006, p. 146) of household
is grid connected which is higher than the country average of 33%. In the rural areas the
percentage of household which is grid connected is about 33.47% whereas in pauroshava
(Municipility) and in urban areas the percentages are 91.49% and 67.72% respectively (ibid
and own calculation).
Natural Gas: The district is partially covered by natural gas network. There are about 42 km
natural gas pipe line network in the district. All the upazillas are partially covered by the
natural gas distribution network 19 .
19 Interview by the author with Mr. Tareq Mustafa, Assistant Engineer, TGTDCL, Dhaka, 21.06.2007
16

Biogas Plant in poultry sector in the study area: There are about 300 to 350 biogas plants
installed by BCSIR in different poultry farms in the district 20 . The number of biogas plants in
poultry farms installed by GS is about 150 21 .
2.2.4 Poultry Sector in the Study Area
Gazipur district is one of the most densely poultry populated districts in Bangladesh. The
district has about 10% of the total poultry farms in the country 22 . The total number of poultry
farm in the district is 12471 and the total number of bird is 18.14 million 23 . There are two
types of farm in the district: layer farm and broiler farm. The total number of layer farm in
the district is 7135 and the total number of layer bird is 11.13 million (ibid). The number of
broiler farm is 5336 and the number of broiler bird is 7 million (ibid). The average number of
bird in layer and broiler farm is 1560 and 1312 respectively, where as the total average is
1454 (ibid and own calculation).
There are 5 upazillas in the district called Gazipur Sadar, Kaliakair, Sreepur, Kapasia and
Kaliganj. Among the upazillas Gazipur Sadar has the highest number of poultry farm. The
percentages of poultry farm in different upazillas are as follows: Gazipur Sadar 63.85%,
Kaliakair 3.95%, Sreepur 7.02%, Kapasia 17.40% and Kaliganj 7.78% (ibid and own
calculation). The upazillawise number of poultry farm is given in Figure 2.9.
20 Interview by the author with Mr. Kazi Akhtaruzzaman, Director, BCSIR Laboratories, Dhaka, 13.06.2007
21 Interview by the author with Mr. M.A.Gofran, Biogas Consultant, Grameen Shakti, Dhaka, 21.05.2007
22 own calculation based on data provided by Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of
Livestock Services (DLS), Dhaka-1215, Bangladesh, 17.05.2007 and data provided by Mr. Md. Kafiluddin
Bhuyan, District Livestock Officer, Gazipur, 13.05.2007
23 data provided by Mr. Md. Kafiluddin Bhuyan, District Livestock Officer, Gazipur, 13.05.2007
17

875
2170
493
Figure 2.9 Upazillawise total number of poultry farm
970
18
7963
Gazipur sadar
Kaliakair
Sreepur
Kapasia
Kaliganj
Source: Own plotting based on data provided by Mr. Md. Kafiluddin Bhuyan, District
Livestock Officer, Gazipur, 13.05.2007
The percentages of poultry bird in different upazillas are as follows: Gazipur Sadar 55.96%,
Kaliakair 4.32%, Sreepur 28.67%, Kapasia 7.89% and Kaliganj 3.15% 24 . The upazillawise
number of poultry bird is given in Figure 2.10.
5.1997
Figure 2.10 Upazillawise total number of poultry bird
1.4317
0.78375
0.572
In Million
10.148193
Gazipur sadar
Kaliakair
Sreepur
Kapasia
Kaliganj
Source: Own plotting based on data provided by Mr. Md. Kafiluddin Bhuyan, District
Livestock Officer, Gazipur, 13.05.2007
24
own calculation based on data provided by Mr. Md. Kafiluddin Bhuyan, District Livestock Officer, Gazipur,
13.05.2007

In case of layer farm, Sreepur upazilla has the highest number of birds per poultry on average
and Kaliakair upazilla stands at second position. The average number of layer birds per
poultry farm is given in Figure 2.11.
Number
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
Figure 2.11 Average number of bird in layer farm in different upazilla
1089
2851
19
8031
415
2000
Gazipur sadar Kaliakair Sreepur Kapasia Kaliganj
Upazilla
Source: Author based on data provided by Mr. Md. Kafiluddin Bhuyan, District Livestock
Officer, Gazipur, 13.05.2007

3.1 Approach
CHAPTER 3 METHODOLOGY
The study was carried out as a case study in Gazipur district of Bangladesh. Through
literature review and discussion with the experts the author identified that the density of
poultry farm in Gazipur district is the highest in Bangladesh. Out of 64 districts of
Bangladesh, Gazipur district has about 10% of the total poultry farms in Bangladesh. The
total number of poultry farms and birds in the district is 12471 and 18.14 million respectively
where as the country statistics is 130 thousand and 194.82 million respectively. In terms of
number of birds, the district has about 10% of the total birds in the country. There are two
types of poultry farms in Bangladesh as well as in the study area. These are layer farm and
broiler farm. Currently in the country as a whole, there is no practice of producing biogas
from broiler farms. All the poultry farms producing biogas are layer farms. One of the
reasons why broiler farms do not produce biogas, is the nature of rearing the birds which
produces the droppings in batch not continuous. Therefore, the study was conducted among
the different layer poultry farm in the different areas of the study area.
Through discussion with different experts in the sector the author came to know that there are
two poultry farms outside the study area called Faridpur Muslim Mission in Faridpur district
and Bogra Poultry Complex in Bogra district which are presently producing electricity from
their own poultry waste. To get a preliminary idea about poultry farms and the technology of
producing electricity from poultry waste, the author visited the afore mentioned poultry
farms. Grameen Shakti (a sister concern of Grameen Bank) is currently disseminating the
biogas technology among poultry farms in the study area through micro credit, while GTZ,
Bangladesh is a development partner of the project. The author communicated with GTZ
personnel to get access to visit different poultry farms through Grameen Shakti in the study
area. The Maona unit office of Grameen Shakti helped the author to visit different poultry
farms. However, the Grameen Shakti project was limited within a union (substrata of
upazilla). Hence, the author communicated with some poultry feed dealers or distributors in
the district through social relationship to contact with some other poultry farm owners.
Through discussion with different stakeholder in promoting biogas technology in the country
such as Grameen Shakti, BCSIR and LGED the author was able to identify all the farms in
the study area which are producing electricity from poultry waste. The author also came to
know from GTZ experts that GTZ Bangladesh has installed a flagship project to produce
20

electricity from poultry waste at Raj poultry Farm in Faridpur district. The author also visited
Raj Poultry Farm to get an idea about the technology used there and to compare it with other
technologies currently being used in the country as well as in the study area. Besides, two
other farms in Mymensingh district were visited one of which has installed biogas plant to
produce electricity and the other already producing electricity from poultry waste. Visiting
different farms outside the study area revealed that the nature of rearing poultry bird and
energy consumption pattern in poultry farms is similar to that of the study area. It was also
observed that the way of producing biogas from poultry droppings in different poultry farms
is almost similar irrespective of its geographical location in the country. Thus justifies that a
case study in Gazipur district is representative for the whole country.
Moreover, it was the convenience of the author to get access to visit the poultry farms and to
communicate within the study area. Besides, the time constraint limited the author to study
in a particular area. Therefore the author was intent to investigate the potential of electricity
generation from poultry waste in Gazipur district that can be exaggerated for the whole
country as well.
3.2 Sampling Method
Out of five upazillas (sub-strata of district) in the district the survey was conducted in two
upazillas. The upazillas are Sreepur upazilla and Gazipur Sadar upazilla. These upazillas
were selected because in Sreepur upazilla the average number of bird per poultry farm is the
highest in the district and in Gazipur Sadar upazilla the number of poultry farm is the highest
in the district. Moreover, Gazipur Sadar upazilla has the highest number of poultry birds
among the upazillas in the district whereas Sreepur upazilla stands at second position.
In total 50 farms were visited randomly during survey. Out of the 50 farms 25 farms were
visited in Sreepur upazilla and the rest 25 were visited in Gazipur Sadar upazilla. Among
these 50 farms 26 farms already have biogas plant and the rest 24 farms do not have any
biogas plant. As Grameen Shakti is currently disseminating biogas technology in Maona
uninon under Sreepur upazilla, the number of poultry farms with biogas plant is higher in
Sreepur upazilla than in Gazipur Sadar upazilla. Figure 3.1 shows the sample distribution
according to upazilla and the biogas plant.
21

Number
20
18
16
14
12
10
8
6
4
2
0
Figure 3.1 Sample distribution according to upazilla and biogas plant
19
7
Poultry farms with biogas plant Poultry farms without biogas
plant
22
6
18
Sreepur upazilla
Gazipur Sadar upazilla
Source: Author
Different sizes of poultry farms were visited during field visit. The size of the farms ranges
from 600 birds to 11000 birds. The following Table 3.1 shows the sample distribution of
different sizes of poultry farms.
Table 3.1 Sample distribution of different size of poultry farm
Number of Number of % No of birds %
birds
farm
less than 1000 3 6 2300 2
1000 to 1999 14 28 18675 14
2000 to 2999 19 38 40600 30
3000 to 3999 5 10 15700 12
4000 to 4999 2 4 8000 6
5000 to 5999 3 6 15000 11
6000 to 6999 0 0 0 0
7000 to 7999 1 2 7000 5
8000 to 8999 2 4 16500 12
9000 to 9999 0 0 0 0
more than
10000
1 2 11000 8
Total 50 100 134775 100
Source: Author
3.3 Data Collection
Various types of data were collected related to the study from different types of sources.
Secondary data was collected from different institutions, relevant literature and internet

searching. Primary data was collected by means of a questionnaire survey in different poultry
farms.
3.3.1 Secondary Data Collection
Different concern institutions/ organizations were visited to collect necessary information for
the study. Poultry sector related data were collected from Department of Livestock Services
(DLS) and Office of the District Livestock Officer, Gazipur. Biogas related data were
collected from Grameen Shakti, GTZ Bangladesh, Local Government Engineering
Department (LGED) and Bangladesh Council of Scientific and Industrial Research (BCSIR).
Energy related data were collected from Bangladesh Power Development Board (BPDB),
Rural Electrification Board (REB), Power Cell, Titas Gas Transmission and Distribution
Company Limited (TGTDCL). The country information and the study area information were
collected from Bangladesh Bureau of Statistics (BBS). The different organizations mentioned
above were visited, discussions with relevant officials were held, and the relevant literatures,
documents and publications were collected. Besides, internet searching was done and various
relevant files from different web sites were downloaded.
3.3.2 Primary Data Collection
Primary data was collected by means of a questionnaire survey (a copy of this is attached as
annex A) and interview with the poultry farmers. Questions were asked to know about the
present energy consumption, deficit of energy supply, backup system, the problems facing
with the technology, size of biogas plant, use of slurry, the interest of the farmers to produce
electricity, and the barriers to disseminate the technology.
3.4 Data Analysis
All the quantitative data collected from the field were encoded in Microsoft Excel program
and then analyzed. Financial analysis was done to find out the different sizes of poultry farm
which are economically viable to produce electricity. The following indexes were determined
in the analysis such as Net present value (NPV), Internal Rate of Return (IRR) and Payback
Period. Different sizes of poultry farms ranges from 500 birds to 50000 birds were considered
for financial analysis. Each of the farms was analyzed for different cases under different
scenarios to find the minimum size of farm which is financially viable to produce electricity.
The minimum size of financially viable poultry farm was then used to estimate the total
potential of electricity production for different cases under different scenarios. In the
financial analysis the following issues were considered such as existing electricity tariff,
23

commercial bank interest rate, market price of locally available gas generator, income from
residue as fertilizer, cost of CO2 for Clean Development Mechanism (CDM) projects in
developing countries and the cost of biogas plant as local standard etc.
Different wattage of electric lamps are being used in different poultry farms. The lamps are of
100 watts, 60 watts, 40 watts and 26 watts. Energy consumption of different farms of same
capacity varies with the wattage of lamp used in the farm. Therefore, the percentages of
energy consumption of poultry farms from own generation was considered as the average of
the percentage consumption of energy for using different wattage of lamps both for scenario
I& II.
In calculation of the total potential of electricity that could be generated from poultry waste,
the sample data was considered as the basis. To find out the total potential in Gazipur district,
the total number of layer birds in the district was taken and the sample data was magnified at
district level data.
The data regarding the number of layer birds in the country was not available. However the
total number of birds including layer and broiler birds was available. To find out the number
of layer birds in the country, the ratio of the number of layer birds and the total number of
birds in Gazipur district was considered. Then the sample data was magnified at country level
data to find out the total potential of electricity generation from poultry waste in Bangladesh.
3.5 Scenario Method
Two different scenarios were considered to find out the potential of electricity generation
from poultry waste for the study area and for the country as well. Scenarios are based on time
duration for which the poultry farms can produce electricity for its own consumption as well
as to sell it to adjacent household. Different cases were also considered under each scenario.
The following will discuss the different scenarios and different cases.
Scenario I (Production of electricity for five hours during the country peak): In this
scenario it was considered that the poultry farms would produce electricity for five hours a
day. The five hours was considered on the basis of the country’s peak hour and the duration
in which the farms mostly experience power cut. The country’s peak is 6 hours from 17:00
hours to 23:00 hours. However, it was found that most of the poultry farms stop their
electricity consumption by 22:00 hours. On the other hand, the poultry farms face huge load
shedding through out the day mostly in the evening. The duration of load shedding for most
of the farms is about 4 hours a day. Moreover it was found from the experience of poultry
24

farms which are currently producing electricity from poultry waste that the available gas
generators using in the industry cannot run more than five hours at a time. Combining all
these factors Scenario I was made to produce electricity for five hours a day mainly during
peak hours of the country.
Scenario II (Production of electricity for twelve hours a day): In this scenario it was
considered that the poultry farms would generate electricity for twelve hours a day. Such a
scenario was made on the basis of daily energy consumption pattern of poultry farms. It was
found that most of the farms use electricity for about twelve hours a day from 10:00 to 22:00
hours. In this scenario the farms can run independently on their own electricity production
hence may not need to pay for electricity to the electricity distributors. However, during
brooding and maintenance of engine still, they will need grid electricity. Therefore they may
not necessary need to be totally disconnected from grid and this will mean they will still have
to pay the minimum charge to the electricity distributors every month.
Different Cases:
Four different cases were considered under each scenario. The cases were based on the
different product through which revenue can be earned. Different products are electricity,
CO2, and fertilizer. Different cases are as follows:
Case 1: Only electricity was considered as a product to earn revenue. Since under the
existing frame work condition only electricity can be sold or consumed commercially.
Case 2: Electricity and CO2 were considered as product for revenue. In this case CO2 was
added to see the impact CDM projects on the total potential.
Case 3: Electricity and fertilizer were considered as product for revenue. In this case
fertilizer was added as there are very few farms selling slurry as fertilizer commercially.
However the market is not open for all. Only the farms who have patent can sell the fertilizer.
So in future with the change of existing laws and through awareness development among the
people a market could be created for slurry as fertilizer.
Case 4: Electricity, CO2 and fertilizer were considered as revenue earning product.
3.6 The Scope and Limitation of the Study
The study was focused on electricity production from poultry waste for decentralized off grid
system at individual poultry farm. The centralized system for electricity generation by
collecting poultry waste from different farms was not considered in the study. The study did
not consider feed electricity on to the grid. The study was based on a micro survey due to
25

time constraint. Very large scale farms could not be visited due to unwillingness of the
concern farms. There is no poultry census in the country so data regarding poultry statistics
was not adequate. The total potential of electricity generation for the country was magnified
from the data available of the study area.
26

CHAPTER 4 ENERGY CONSUMPTION STATUS IN
POULTRY FARMS
The poultry farms in Gazipur district are covered by the national electricity grid. Gazipur
Palli Bidyuit Samity (PBS) a rural electric cooperative under Bangladesh Rural
Electrification Board (REB) is responsible for the commercial operation of electricity in the
district. All most all the poultry farms are grid connected. There is a huge power shortage in
the study area as well as in the country. For uninterrupted power supply some poultry farms
use back up system such as diesel generator. On the other hand, to avoid the power
interruption there are a very few large scale farms which are not grid connected and have
independent power plants based on natural gas. The daily energy consumption pattern in
poultry farms is almost similar. Usually, the farms consume less energy in the day time and
consume more in the evening. However, the farms using energy efficient lamps use less
electricity in the evening than day time. Few poultry farms in the district have biogas plants.
The majority of the bio gas plants are undersized as compared to its total potential. Three
poultry farms in the district currently produce electricity from biogas during the power
outage. The other poultry farms use biogas for thermal purposes mainly for household
cooking. The details of utilization of different types of energy in the poultry farms are
discussed in this chapter.
4.1 EXISTING UTILIZATION OF ELECTRICITY
4.1.1 Electricity consumption of major electrical appliances used
Electricity is inevitable for the production of eggs and for the growth of the birds as well.
Electricity is used in the industry mainly by lamps to provide proper lighting in the poultry
shed, fans to maintain the required temperature, brooder to brood up the chicks and the water
pumps to supply water. Following are the details of the status of electricity use for the main
appliances in the poultry farms.
Use of Lamp
For the optimum production of eggs and the normal growth of birds it requires 16 - 17 hours
lighting a day (Ghoshal, 2005, p, 119). Normally, from 6 am to 6 pm is considered as day
light and no artificial lighting is required during this period. However in some dark days it
may require some additional lighting during the period. Usually, artificial lighting is required
27

for four hours a day from 6 pm to 10 pm in the evening. All the farms use electric lamps for
lighting. Different farms use different types of lamps. From the survey it was found that
farms use incandescent lamp, compact fluorescent lamp (CFL) and fluorescent tube lamp
(Figure 4.1). Interview with the farmers during survey reveals that normally 10 lamps with
the wattage ranges from 26 to 100 watts are used for 1000 birds and for the larger farms the
number of lamp increases proportionally. However, it was also found that some farms are
using less than 10 lamps per 1000 birds.
Figure 4.1 Showing different types of lamp
Incandescent lamp Fluorescent tube lamp CFL Lamp
Out of 50 farms surveyed it was found that 7 farms use CFL lamp, 21 farms use incandescent
lamp and 22 farms use fluorescent tube lamp. The figure 4.2 shows the percentage of poultry
farms using different types of lamp.
Figure 4.2 The percentage of poultry farms using different types of bulb
44%
28
14%
42%
Source: Author
CFL
Incandescent
Fluorescent tube
Source: Author

The figure above shows that 14% farm uses energy efficient CFL lamp and 44% farm uses
fluorescent tube lamp. The rest does not use it because of the high cost of CFL lamps or
fluorescent tube lamp and lack of awareness about the use of energy efficient lamps. The
figure shows that the majority of the farm uses energy efficient lamps. However the
percentage of farm using non energy efficient incandescent lamp is still significant. An
awareness development program could help the farmers to reduce their energy consumption
by using CFL lamp. For example, one 5000 birds’ farm using 100 watts incandescent lamp
could reduce its annual energy consumption by about 40% only by replacing the incandescent
lamp with CFL lamp where the other things remain the same.
Use of Fan
29
Figure 4.3 Showing Fan
The temperature in the poultry shed is usually
maintained between 12.8ºC to 27ºC for the optimum
production of eggs (Ghoshal, 2005, p, 126). Fan (Figure
4.3) is used in the poultry farm to maintain the required
temperature through out the year except in winter. In Fan
winter for about three months no fan is in use due to the
lower ambient temperature. Fan is used in the poultry
farm from 6 hours to 12 hours a day depending upon the
number of birds in the farm and ambient temperature.
Source: Author
The larger farms use fans for more hours and the smaller farms use for less hours. Similarly,
in hot summer when ambient temperature goes high, it requires more use of fan than the other
period of the year. Figure 4.4 shows the percentage of poultry farms using fan for different
hours.

% of poultry farms
21%
Figure 4.4 Duration of using fan in poultry farms
7%
43%
30
2%
12%
14%
6 hrs 7 hrs 8 hrs 9 hrs 10 hrs 12 hrs
Number of hours
Source: Author
Out of 50 farms surveyed it was found that 42 farms use fan. Out of 42 farms using fan it was
found that 9 farms use fan for 6 hours, 3 farms for 7 hours, 18 farms for 8 hours, 1 farm for 9
hours, 5 farms for 10 hours and 6 farms for 12 hours. The wattage of fan used in the poultry
farm is 55 watts. Interview with the farmers during survey reveals that six fans are used for
1000 birds and for the larger farms the number increases proportionally. However, it was also
found that some farms using less than six fans per 1000 birds. On the other hand, the survey
also reveals that not all the farms are using fans to maintain the required temperature in the
shed. It was found that 84% farm using fans and the rest 16% farms are not using fans at all.
These farms which are not using fans are comparatively smaller farms and could not afford to
buy it. As a result it reduces the egg production of the farm.
Use of Brooder
A brooder is a heated container used to brood up the chicks (Figure 4.5).

Brooder
Figure 4.5 Showing the brooder
Usually, Electric lamp is used to heat up the brooder. In the study area, it takes two weeks per
brooding. For the first week the temperature required is 95ºF or 35ºC and for second week it
requires 90ºF or 32ºC (Latif, 1981, p, 58). Usually, one brooder contains four lamps. In
summer due to higher ambient temperature it requires less temperature and 100 watts
incandescent lamps are used in the brooder. In winter due to lower ambient temperature 200
watts lamps are used in the brooder. However, there is no specific time period for brooding in
the year. It depends on the situation of the farm. Whenever farms need new chicks it broods.
During brooding it needs continuous 24 hours heating. Number of brooders and times of
brooding per year in a poultry farm depends on the size of the farm. While the number of
brooders is higher, the times of brooding per year is lower. For example: one 5000 birds’
farm has eight brooders and it broods two times a year. On the other hand another 5000 birds’
farm has four brooders and it broods three times a year. Besides using electricity in the
brooder it was also found in Mymensingh district that one farm is using biogas directly to
heat up the brooder. So it is possible to use other forms of energy for brooding.
Use of Electric Pump
Water supply is required in the poultry farm to feed the birds and for cleaning purpose. For
water supply the poultry farms use electric pump or hand tube well (Figure 4.6).
31
Brooder
house
Source: Author

Figure 4.6 Showing Electric Pump and Hand Tube Well
The survey reveals that about 60%
farms use electric pump for water
supply and the 40% farms depends
on hand tube well. These farms
using hand tube well are
comparatively smaller farms and
could not afford to buy an electric
pump.
Hand Tube Well Electric Pump
The capacity of electric pumps
Source: Author
used in the poultry farms ranges
from 0.5 HP to 3 HP depending on the size of the farm and the daily operation of pump
ranges from one hour to three hours. However it was also found that some smaller farms have
higher capacity of pump than the larger farms. Therefore pumps used in the poultry farm
should be designed properly to reduce the investment cost and the energy consumption as
well.
4.1.2 Daily Electricity Consumption Pattern
Usually, electricity consumption in summer starts in the morning at 10 am with the operation
of fans and water pumps and sometimes continues until 10 pm in the evening. The operation
of fan varies as shown in Figure 4.4. For the daily consumption pattern the use of fan is
considered eight hours as the maximum farms use the fan for this period. The use of brooder
is not considered in the daily energy consumption pattern as it is not a daily phenomenon.
Brooding period varies from 15 days to 90 days a year depending on the farm. In winter fans
are not used due to lower ambient temperature. Therefore in winter electricity consumption is
less than in summer. Figure 4.7 and Figure 4.8 shows the daily energy consumption pattern
of a 5000 birds poultry farm in summer and winter respectively. This farm uses 50 of 100
watts incandescent lamp, 30 fans of 55 watts and a water pump of 1.5 HP. The electricity
consumption for the brooder was not considered here. The energy consumption status of
different farms according to their size is shown in Appendix 4.
32

KW
KW
6
5
4
3
2
1
0
6
5
4
3
2
1
0
Figure 4.7 The daily electricity consumption pattern in summer
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
33
Hours
Figure 4.8 The daily energy consumption pattern in winter
Source: Author
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours
4.1.3 Electricity Deficit and the Use of Back Up System
Source: Author
Power outage or load shedding is a regular phenomenon in Gazipur district. The poultry
farms face enormous load shedding or power outage every day. 100% of the poultry farms
experience load shedding everyday. However, the duration of load shedding varies from three
hours to seven hours in a day. It can happen any time through out the day but mostly it
happens in the evening during the country peak hour (17:00 pm to 23:00 pm). Figure 4.9
shows the percentage of load shedding duration in the poultry farms.

% of poultry farm
12%
Figure 4.9 Duration of load shedding frequency
58%
Percentage
34
4%
26%
3 hr 4 hr 5 hr 7 hr
Hours
Source: Author
To maintain the optimum production of the poultry farm it needs a back up system to provide
electricity during load shedding. However, only 30% farm has back up system to provide
electricity during power cuts. The rest 70% farm does not have any back up system because
they could not afford it. It was found that only three farms uses biogas generator as back up
system whereas the rest uses diesel generator for the same. Usually the farm has a capacity of
more than 4000 birds uses the back up system. In contrast, some smaller farms also have back
up systems but they don’t use them as back up during power cut because of the high price of
diesel. They use them only during brooding when it needs 24 hours energy supply for the
chicks. Figure 4.10 shows the percentage of back up system according to different size of
poultry farm.
% of back up system
0%
Figure 4.10 Percentage of back up system
7%
21%
40%
100%

4.2 EXISTING UTILIZATION OF OTHER ENERGY
4.2.1 Use of Biogas + Size of Existing Biogas Plant
Use of Biogas
The biogas produced in different poultry farms is mainly used for household cooking as the
farms are located near to the house. Only three farms use biogas both for producing
electricity and thermal purpose. In these farms the biogas plant and generator to produce
electricity was provided by Grameen Shakti on micro credit. These three farms are located
near a growth center and sell biogas to adjacent households and to commercial tea stalls as
well. The income from selling biogas ranges from 2900 BDT to 4000 BDT per month.
Interestingly, this income is a bit higher than the monthly installment cost for the installation
of biogas plant and generator. There is no practice of selling of electricity from biogas plant
through the so called mini grid. Some other farms also sell biogas to the adjacent households
and the income varies fro 400 BDT to 1200 BDT. The quantity of sold biogas is not
measured any way. Farms selling biogas at 400 BDT per household connection which is
almost same as for the natural gas connection within the natural gas network in the country.
However most of the farms do not have market to sell biogas. Only About 38% farm can sell
their biogas to at least one customer and the rest 62% does not have any market to sell it. The
farms which can not sell biogas use it for their own cooking purpose. At the same time these
farms consume electricity from grid or some times from diesel generator to run the industry
and for household as well. So there is a possibility to use this source of biogas from poultry
waste or dropping to produce electricity locally.
Regarding saving money from using biogas for cooking, only 12% respondents save money
from buying wood fuel or Liquid Petroleum Gas (LPG). The rest does not save any money
because before using biogas they used dry leaves, branches of trees, twigs etc which were
free of cost.
Size of The Existing Biogas Plant
Theoretically, the size of the biogas plant depends on the size of poultry farm. The larger
farms should have a larger biogas plant and the smaller farm should have a smaller one.
However, it was found from the survey that some smaller farms have larger biogas plants as
compared to the larger farms. For instance, one 5000 bird’s farm has a 6 m 3 biogas plant
whereas one 2000 bird’s farm has a 9 m 3 biogas plant. The reason could be to make biogas
plant financially viable as the aim of installing biogas plant was for cooking only. The
35

geographical location of 2000 birds’ farm made it financially feasible as it is located near the
growth center where it has a potential market to sell biogas. On the other hand the 5000 birds’
farm does not have any market to sell biogas and hence the size is limited for its own
consumption to reduce the construction cost. Most of the biogas plants are not constructed at
its total potential. That means most of the farms are not using its total raw material or poultry
dropping for the biogas production. Figure 4.11 shows the existing size of biogas plant as a
percentage of total potential in different poultry farms.
Figure 4.11 Existing size of biogas plant as a percentage of total potential
19%
19%
36
31%
23%
8%

the slurry as fertilizer because the farmers are not aware of the benefit of using biogas slurry.
The study reveals that currently there is no market of biogas slurry as organic fertilizer.
However, there is no standard specification of organic fertilizer in the country to market it
and it is not allowed to market the biogas slurry as organic fertilizer without patent. So the
existing law and lack of awareness are the two hindering forces for the marketing of biogas
slurry as organic fertilizer.
On the contrary, few big poultry farms are doing commercial marketing of dried slurry as
organic fertilizer. For example, Faridpur Muslim Mission situated in Faridpur district sells
dried slurry at 6.66 BDT per kg which is dried by bio gas and Bogra Poultry Complex
situated in Bogra district sells sun dried slurry at 0.80 BDT per kg which is dried naturally
under sun.
Disposal of Poultry Waste
It was found that there is no slaughter house in the poultry farms. So the only type of poultry
waste is from poultry droppings. The farm having biogas plant is supposed to dispose its
waste into the biogas plant. However, most of the farms put the waste partly into the biogas
digester as the biogas plants are not designed for the total potential of droppings. The rest is
disposed into the environment or taken away by local fish farm as fish feed. On the other
hand, the farm which does not have any biogas plant usually dispose the droppings to the
environment or it is taken away by the local fish farm. It was found that the poultry waste of
about 60% farm is taken away by fish farm and the rest 40% is disposed in to the
environment. In disposing the waste into the environment either a ditch is dug or it is dumped
on the ground (Figure 4.12). The waste disposed into the environment creates a bad smell of
ammonia gas. To reduce the bad smell the farmers use bleaching powder, lime etc. The cost
to reduce the bad smell is not significant. However, the amount of reduction of bad smell is
also not significant.
Figure 4.12 Disposal of poultry droppings
Fish Farm Ditch Dumped on Ground
37
Source: Author

4.3 Attitudes and Barriers
Attitudes
The poultry owners are very much positive to produce electricity from poultry waste. It was
found that 86% respondents are interested to produce electricity from poultry waste. People
are interested because they think it will be cheaper to produce electricity as the biogas is free
of cost. On the other hand using diesel generator is costly as the price of diesel is increasing
every year. People need alternatives to provide uninterrupted power supply as there is
enormous power outage which reduces their production. Moreover, it will reduce the load on
national grid and benefits the country as a whole. However, they will not produce electricity
from poultry waste if it costs more than that of grid electricity. In contrast, about 14%
respondents are not interested to produce electricity from poultry waste. Some people are not
interested because of the initial investment cost. Where as some other thinks power shortage
does not hamper their production and some people are not interested due to the geographical
location of the farm which is located in an isolated place and difficult to sell electricity or
biogas. It was also found that about 23% respondents are not aware of the possibility of
producing electricity from poultry waste.
Barriers
One of the main hindrance forces of disseminating the technology is the technology itself.
There is no proven technology yet in the country. The farms which are producing electricity
from poultry waste in the country are facing problems to operate the system. To disseminate
the technology it needs a proven and sustainable technology. The investment cost for
installing the system is another barrier. All the farm owners are not financially sound to buy
the system. There is no government subsidy or incentive to disseminate the technology.
Moreover, lack of awareness of the poultry owner regarding the technology is another main
hindrance.
38

CHAPTER 5 PRESENT STATUS OF ELECTRICITY
GENERATION FROM POULTRY WASTE
Electricity production from poultry waste is relatively new in Bangladeshi. Most of the farms
producing electricity from poultry waste have installed their electricity generation systems
since 2005. However, Bogra Poultry Complex situated in Bogra district installed its system in
the late 90’s. This is the only poultry farm in the country which meets its electricity demand
from own generation. This farm is independent of grid electricity although the farm is located
under REB grid network. During the field visit, it was found that Bogra Poultry Complex is
using different technology than what other farms are using at present in the country. This
farm is using two Toyota engines of 1500 cc capacity with a dynamo. The maximum output
of the plant is 7.5 kW. The engines used in the plant are old car engines and these engines are
running alternatively. It was found that biogas from the digester is fed into the engine only
through a moisture filter unit to remove the moisture content in the gas. There is no device to
remove hydrogen sulfide (H2S). The Figure 5.1 and 5.2 show the different components used
in the power plant in Bogra Poultry complex.
Figure 5.1 Showing different components of power plant at Bogra Poultry Complex
Gear
box
Belt-pulley
Toyota engine
Dynamo
39
Control panel
Source: Author

Figure 5.2 Showing different components of power plant at Bogra Poultry Complex
Battery
Fly wheel
Toyota engine
Faridpur Muslim Mission uses 3 of 4.5 kW natural gas generators. The plant was installed in
the year 2005. The generators used in the plant are Honda Model: EM6000GN, single phase
and generate 220 V at 50 HZ. It runs 2 generators at a time and the duration is maximum 4
hours a day only when there is power outage. The generator can not run more than 4 hours a
day. In this farm the biogas comes from the digester through a Polyvinyl chloride (PVC)
flexible pipe to the generators. From the biogas plant the PVC pipe is elevated up to a certain
level so that the moisture condensed in the pipe can go back to the digester again. This allows
it to remove a part of the moisture content in the biogas. To remove the rest of the moisture
content in the biogas it passes through a moisture filter before entering the generator which is
placed near to the generator set. The moisture filter contains two sponges on the two sides
and some silica gel in between. Like Bogra Poultry Complex this plant also does not have
any H2S removal system. Figure 5.3 shows the moisture filter and the generator set used in
the plant.
40
Moisture filter
Gear box
Exhaust
Source: Author

Figure 5.3 Moisture filter and Generator set in Faridpur Muslim Mission
Miosture
filter
5.1 Some Properties of Biogas:
5.1.1 Characteristics of Biogas
Biogas is rich in methane and can be used to generate heat or electricity. The methane content
in biogas varies from 40% to 60%. The calorific value of biogas depends on temperature,
pressure and water-vapor content. Water-vapor content in biogas depends on temperature and
pressure. The heating value of biogas containing 60% methane is about 20-22 MJ/m 3 or 6
kWh/m 3 . The octane rating is 130. The auto ignition temperature of methane is 650-750º
Celsius. The density of biogas is 1.2 g/l. (Rehling, 2006, p. 9). The following Table 5.1 gives
the different heating values of different commercial fuels and its’ corresponds to biogas
containing 60% methane.
Table 5.1 Heating values of commercial fuels and its correspond to Biogas
Fuel Heating Value Biogas Natural Gas/ Propen gas/ m3
/ m3 m3
1 m3 biogas
1 m3 Natural
22.1 MJ/m3 Correspond to 1 0.7 0.48
gas 33.5 MJ/m3 Correspond to 1.5 1 0.73
1 m3 Propane 46 MJ/ m3 Correspond to 2.1 1.3 1
1 l Diesel 36 MJ/l Correspond to 1.6 1 0.78
1 l Kerosene 30.5 MJ/l Correspond to 1.4 0.9 0.66
1 kg Charcoal
1 kWh
29 MJ/kg Correspond to 1.3 0.8 0.6
electricity 3.6 MJ/kWh Correspond to 0.2 0.1 0.07
Source: Rehling, 2006, p. 9
41
Generator
Source: Author

The biogas from the poultry waste contains methane, carbon dioxide, hydrogen sulfide,
nitrogen and moisture. Table 5.2 shows the chromatographic test results of dry biogas
produced from poultry litter in a biogas plant at Maona in Gazipur district. The biogas sample
was tested by Institute of Fuel Research and Development , BCSIR.
Table 5.2 Test results of dry biogas produced from poultry litter
Sl. No. Specification Result
1 Methane 58.72%
2 Carbon Dioxide 38.25%
3 Hydrogen Sulfide 0.35% or 3500 ppm
4 Nitrogen 2.68%
Source: BCAS, 2005, p. 32
Unlike natural gas it has high percentage of carbon dioxide and hydrogen sulfide. H2S is toxic
and corrosive and when combines with moisture it forms sulphuric acids or sulphurous that
can corrode all metal parts that come in its contact. CO2 has a volumetric disadvantage when
used in an engine for combustion. The following paragraph will discuss about the impact of
H2S and CO2 in producing electricity.
5.1.2 Impact of H2S
In Bangladesh, H2S presence in biogas from poultry waste was found from 0.30% (3,000
ppm) to 0.8% (8,000 ppm) 25 . However, the tolerable level of H2S in pipe line quality natural
gas is 4 ppm. H2S is severely corrosive to all metals associated with the transportation of gas
and metal parts of engine which is driven by such gas containing H2S. Moreover it is even
corrosive to stainless steel. This problem may lead to the failure of the system. On
combustion, H2S forms SO2 which is also toxic and corrosive (Kumar, 1987, pp. 255-256).
Therefore to make the system sustainable and user friendly a H2S removal system is required
in producing electricity from biogas.
5.1.3 Impact of CO2
In biogas from poultry waste CO2 presence is about 40%. CO2 has no heating value and its
removal is required to increase the energy intensity of the gas per unit volume. Sometimes
CO2 removal is also required because it forms a complex called CO2..CO2 which is quite
corrosive in presence of water. In addition CO2 removal is necessary for gas used in
25 Interview by author with Mr. M. A. Gofran, Grameen Shakti Dhaka, 21.05.2007
42

cryogenic plant to prevent the solidification of CO2 (Kumar, 1987, p. 256). For power
generation, CO2 presence in biogas reduces the air fuel ratio of the engine because to supply
the same thermal input the system requires more biogas. Thus reduces air flow into the
engine under a constant volume. Limited air flow into the engine reduces the maximum
output of the engine. However the overall efficiency of the engine does not change too much.
(Naznin, 2006, pp. 25-27)
Hence, for small scale power generation plant CO2 removal is not mandatory.
5.2 Status of Technology Used in GTZ Flagship Project at Raj Poultry Farm
To overcome the technical drawbacks of the system for producing electricity from poultry
waste GTZ Bangladesh has installed a flagship project at Raj Poultry Farm which is situated
in Faridpur district. The farm has 15000 birds from which it can produce 105 m 3 biogas per
day. The farm has 3 X 35 m 3 or total 105 m 3 biogas plant. GTZ installed 2 X 5 kW i.e. total
10 kW generators to produce electricity. GTZ considered it as a test case and they will go for
replication after 6 months observation. The details of GTZ system is given in the followings.
In this system the biogas from the digester passes through a H2S removal unit where the H2S
content in the biogas is reduced to an acceptable limit (250 ppm) 26 . After the H2S removal
unit, the gas passes through a moisture removal unit where the gas is freed from moisture.
Then the gas enters into the generator. GTZ also considered a regeneration system to
regenerate the material used in the H2S removal unit and moisture removal unit. For
regeneration the system uses the exhaust gas of the generator. The flow diagram of GTZ
Flagship project to produce electricity from poultry waste is given Figure 5.4.
26 Interview by author with Dr. Khursheed-Ul-Islam, GTZ Dhaka, 17.06.2007
43

Droppings
Figure 5.4 Flow diagram of GTZ Flagship Project at Raj Poultry Farm
removal
unit
Biogas H2S
Poultry
Shed
H2S free
Biogas
Biogas Plant
(Fixed Dome)
Source: Author based on interview by author with Dr. Khursheed-Ul-Islam, GTZ Dhaka,
17.06.2007 and filed visit.
5.2.1 Biogas plant
Hot Air
Moisture
removal
unit
Hot Air
Electricity
There are 3 biogas plants in the poultry farm with a capacity of 35 m 3 gas production per day
each. The plants are fixed dome type. A Fixed dome plant is an enclosed dome consists of a
digester and a gas chamber which is fixed and non- movable. The gas is stored in the upper
part of the digester. The normal practice in Bangladesh is that the volume of the gas chamber
is one-third of the total volume of the dome. The capacity of the plant is defined by the
volume of gas production per day. When gas production begins the slurry is displaced into
the compensating tank. Gas pressure increases with the volume of gas stored. A pressure
regulator is required to maintain a constant pressure of gas flow to the engine. The
advantages of fixed dome plant is its low construction cost, no moving parts, longer life (20
44
Moisture and
H2S free
Biogas
Generator
Fresh air
Exhaust gas
Heat
exchanger
Compressor
Exhaust gas

years or more) and affording protection from winter cold and saving space. On the other
hand the disadvantages are porosity or cracks of the plant, low gas temperature, and
fluctuation of gas pressure (Rehling, 2006, p. 34). However, the construction of the biogas
plant in the poultry farm was beyond the battery limit of GTZ flagship project. The Figure 5.5
shows the biogas plants at Raj Poultry Farm.
Inlet
Figure 5.5 Biogas plants in Raj Poultry Farm
All three plants are interconnected by Galvanized Iron pipe and at the top of each digester
there is a pressure gauge to measure the pressure of the gas chamber.
5.2.2 H2S Removal Unit
Dome covered with earth
The biogas containing H2S, moisture, CO2 and other constituents comes to the H2S removal
unit from biogas plant through a PVC flexible pipe. The Iron Sponge process is used to
remove H2S. The unit consists of two gas tight transparent cylindrical plastic tanks. The gas
containing H2S or the sour gas is passed through a bed of red oxide in the form of steel wool.
The steel wool basically is the rusted iron chips found in the lathe workshop. The steel wool
bed is placed at the bottom of the towers. The gas enters at the bottom of the tower, then
passes through the bed and finally comes out on the top of the tower. The dimension of each
transparent tank used in the plant is 1.3 ft dia X 3.2 ft height i.e. 4.25 ft 3 or equivalent to 0.12
m 3 . The amount of steel wool in a batch is 8 kg and the life of the bed is 7 days. Almost onethird
of the tower is full of red oxide. The cost of steel wool is 20 BDT per kg in the local
45
Hydraulic chamber
Source: Author

market 27 . At present the steel wool is regenerated by exposing it air under sun. Two towers
are used to keep the operation uninterrupted so that one tower is on stream when the other is
being charged. Figure 5.6 shows the H2S removal unit installed in Raj Poultry Farm.
Transparent
tower
Steel wool
Figure 5.6 Shows the H2S removal unit.
The red oxide has a high affinity to react with H2S. The chemical reaction of red oxide with
H2S is given in the following equation.
Fe2O3 + H2S = Fe2S3 + 3H2O (Manning and Thompson, 1991, p. 101)
After reaction with H2S the steel wool becomes black iron sulfide. When the black corroded
iron sulfide reaches 75% height of the bed, its time to change it and feed a fresh charge. The
corroded steel wool can be reused after being oxidized to rust by exposure to air. The towers
are transparent so that the change of color of red oxide is visible. (BCAS, 2005, p. 33)
For continuous regeneration or revivification of steel wool or ferric oxide a small amount of
air or oxygen is added to the inlet sour gas stream to oxidize the Fe2S3 back to Fe2O3
immediately the H2S is absorbed. The continuous regeneration reaction is given below.
Fe2S3 + 3 O = Fe2O3 + 3S (Manning and Thompson, 1991, p. 101)
27 Interview by author with Dr. Khursheed-Ul-Islam, GTZ Dhaka, 17.06.2007
46
Gas outlet
Source: Author
Gas inlet

The temperature of the bed should not be more than 120ºF or 48.9ºC. The temperature above
120ºF or 48.9ºC leads to the loss of the water of crystallization of the ferric oxide and the bed
becomes very difficult to regenerate. (Kumar, 1987, p. 258)
However, the interview with the operator of the plant revealed that the generators cannot run
with full load after few minutes it started. The cause may be due to the siltation of steel wool
or iron chips in the H2S removal unit. As a result gas cannot flow properly to the engine
though there is enough gas in the digester.
5.2.3 Moisture Removal Unit
The biogas enters into the moisture removal unit after passing the H2S removal unit. The
adsorption dehydration method is used in this process. Adsorption dehydration is a process
where a solid desiccant is used for the removal of water vapor from a gas stream. Adsorption
is a surface phenomenon and all solid surfaces have some ability to adsorb or capture and
hold vapors and liquids on their surface. There are two types of adsorption dehydration. One
is chemisorption and the other is physisorption. Chemisorption or chemical adsorption
involves specific chemical (or electrovalent) bonding of the gas molecules (or adsorbate) in a
monolayer onto the solid surface atoms. On the other hand, physisorption or physical
adsorption is caused by van der waals forces between the gas molecules and the surface thus
forming multi layers of adsorbate on the surface. Chemisorption looks like a chemical
reaction between a particular gas and the solid surface. In contrast, physisorption is the
general condensation of gas on any surface. (Shikdar, 2005, p. 27)
The physisorption or physical adsorption method is used in the moisture removal unit. There
are different materials used for this, such as alumina, silica gels, silica-alumina gels and
molecular sieves (ibid, p. 28). In the moisture removal unit silica gel is used as an absorber.
Silica gel is a hard, rugged material with good abrasion resistance characteristics. It is
manufactured by chemical reaction. Silica gel is the product of chemical reaction between
sulfuric acid and sodium silicate and consists almost solely of silicon dioxide (SiO2). Gels
can reduce the moisture content to 10 ppm and can be regenerated. They adsorb heavy
hydrocarbons and release them easily during regeneration. The regeneration temperature for
silica gel is 212ºF or equivalent to 100ºC. Silica gel does not react with H2S however; sulfur
can deposit and block their surfaces. So silica gels are useful if the H2S content is less than 5-
6% (ibid, p. 28)
47

In GTZ flagship project, the unit consists of 2 small transparent plastic cylindrical tanks. The
tanks are gas tight as well. Two tanks are used for two different H2S removal unit. One
moisture removal unit is connected with one H2S removal unit. The dimension of each of the
moisture removal tank is 0.5 ft dia X 2 ft height i.e. 0.4 ft 3 or equivalent to 0.01 m 3 . Figure
5.7 shows the moisture removal unit at Raj Poultry Farm. 5 kg of silica gel is used per batch
and the life of one batch of silica gel is about 5 months. The cost of 25 kg silica gel bag is
4000 BDT 28 .
Figure 5.7 Moisture removal unit
However, when the gas is so dry sometimes the moisture removal unit is by passed.
5.2.4 Generator
Two natural gas generators of 5 kW each are used in the plant to produce electricity from
poultry waste. The biogas from the moisture removal unit comes to the generator. There are
two stainless steel ball valves one for each generator are used to control the gas flow to the
generators. The generators are Green Power Model: CC 5000 –G-B, single phase and could
28 Interview by author with Dr. Khursheed-Ul-Islam, GTZ Dhaka, 17.06.2007
48
Source: Author
Gas outlet
Moisture
removal
tank
Silica gel

generate 230 volt at 50 HZ. The generators can run on both LPG and natural gas. LPG is only
used to start up the generator which is later fuelled by biogas. A venturi has been introduced
in to the system to enhance the mixing of air and fuel for improved combustion. Figure 5.8
shows the generator and venturi at Raj Poultry Farm.
Venturi
Generator
Figure 5.8 Shows the generator and venturi
Venturi
5.2.5 Regeneration of Steel Wool and Silica Gel
49
Source: Author
For the regeneration of steel wool and silica gel needs certain temperature. For steel wool the
required temperature is 48.9ºC and for silica gel it is 100ºC. The exhaust gas of the engine at
high temperature is used through a heat exchanger to heat up steel wool and silica gel. A
small compressor is used to supply fresh air into the biogas stream; this air passes through the
heat exchange mechanism to carry the heat into the H2S and moisture removal unit.
5.3 Status of Technology used in the Study Area:
LPG tank
Like in other parts of Bangladesh digester technology is used in the study area to produce
electricity from poultry waste. The process used to produce electricity from biogas generated
from poultry waste is similar to other farms producing electricity except Bogra Poultry
Complex in Bogra district and GTZ flagship project at Raj Poultry Farm in Faridpur district.
A fixed dome digester is used to produce biogas from poultry waste. The poultry dropping is
directly feed into the inlet chamber of the biogas plant. The biogas is then taken away
through a flexible PVC pipe to the generator through a water trap and a small moisture filter
unit to remove the water content of the biogas. Figure 5.9 shows the flow diagram of the
process used in the study area to produce electricity from poultry waste.

Figure 5.9 Flow diagram of producing electricity in the study area
Biogas
Biogas plant
(Fixed
Dome)
Droppings
Poultry
Shed
Water Trap
50
Biogas
Electricity
Moisture
Filter Unit
Gas
Generator
Household
Moisture free
Biogas
Source: Author based on field visit
There is no H2S removal unit in the process. Only three poultry farms in the study area are
currently producing electricity from poultry waste. These all are very small scale generation.
The capacity is between 2 kW and 3 kW. All the generators are single phase and could
generate 230 Volts at 50 HZ. Different models of generators are used in the study area.
However the moisture filter is almost similar but different types of water trap are used. The
different components of electricity production unit in the study area are shown in Figure 5.10.
Electricity

Water trap
Moisture filter
Figure 5.10 Different components of the plant
51
Source: Author
The above discussions (Section 5.2 to Section 5.3) satisfy the second research question of
the study.
5.4 Status of Energy Generation
Generator
Bogra poultry Complex is running independently of grid electricity. So the total annual
energy consumption of the farm comes from own electricity generation plant. The farm’s
annual energy consumption is about 19 MWh which produced from poultry waste. On the
other hand, all of the farms are producing electricity from poultry waste during power cut.
Faridpur Muslim Mission runs the generators for about 4 hours a day. Its annual energy
production from own generator is about 9.5 MWh. At Raj Poultry Farm in Faridpur district
the generators are in operation for about 4 hours a day. The annual energy production is about
11.6 MWh. In the study area all the three farms producing electricity during power outage
and the total annual energy production for these three farms is about 2 MWh.

5.5 Problems Encountered with the Technology (Owners’ View):
According to the owner of Bogra Poultry Complex, the farm does not face any problem to
operate the system. It needs only regular maintenance once in a year and needs a technician
to operate it. However, the other poultry farms currently producing electricity from poultry
waste are not running the system very smoothly. In the country and as well as in the study
area the installation of the system is very recent phenomenon. In the study area the system
has been installed at the end of the year 2006 and in the beginning of the year 2007. The
farms are facing some problems both in technical and management point of view.
The main technical problem is to start up the engine and this is due to the carbon deposition
in the spark plug. It needs very frequent servicing of the spark plug and the life of spark plug
is very short and it needs very frequent replacement. Besides, carbon deposition on the engine
head is another problem. It also needs frequent servicing. Moreover, tearing and wearing of
belt and pulley is a problem as well. As it is not a long experience, the impact of H2S such as
rusting, corrosion, fatality of engine etc. could not be identified yet.
On the other hand from management point of view the poultry farms encounter some
problems. There is no supply of spare parts. The generator suppliers do not provide the spare
parts required. If there is any problem with the engine part it can not be replaced within a
short time. So the engine faces some idle time. There are no people with technical know how
in the farm. So they need to hire a mechanic or technician from outside to service the engine
and by this they incur further expenses.
There is one poultry farm in Mymensingh district which has a 1.5 kW natural gas generator
to produce electricity from biogas. Due to frequent disturbances the owner dismantled the
engine for servicing. However, he does not have proper technical know how of it and he
could not reassemble it. As well there is no technician around to make the engine fit. As a
result due to lack of technical support this farm can not produce electricity.
There is no pressure gauge to measure the pressure of the gas chamber. So the owners or
operators don’t know exactly whether there is enough gas to run the engine. They also don’t
know the amount of gas produced in the biogas plant. As there is no gas meter they can not
measure the gas flow so it’s a problem to identify for how long the engine can run.
52

CHAPTER 6 POTENTIAL OF ELECTRICITY GENERATION
FROM POULTRY WASTE
At present there are different types of technologies used in the country to produce electricity
from poultry waste. The technology used in the GTZ flagship project (discussed in chapter
5.2) was considered for the financial calculation to find out the economic potential because it
is more scientific technology than any other technologies being used in the country. To find
out the economic potential of electricity generation from poultry waste, two different
scenarios were considered. These scenarios are based on the time duration for which the
poultry farms can produce the electricity for its own consumption as well as to sell the excess
electricity to adjacent neighbors through the mini grid. The current practice in the country is
to produce electricity during load shedding and for the whole consumption of the poultry
farm as well.
In Scenario I the production of electricity was considered for five hours during the country
peak which will reduce the burden on national grid during the peak and ensure uninterrupted
power supply to the poultry farms. On the other hand, in Scenario II the production of
electricity was considered for twelve hours for the whole consumption of the farm which will
reduce the load on national grid as well as ensure uninterrupted power supply to the farm and
the electricity produced from the poultry sector can be used in other sectors. In scenario II
poultry farms will consume more energy from own generation than in Scenario I. Moreover,
in Scenario I the system will require one set of generators and in Scenario II the system will
require two sets of generators that will result in a variation of investment cost. However, the
size of generator will vary since in Scenario II the size of generator is lower than that of
Scenario I.
Four different cases were considered under each scenario. The cases were based on the
product through which revenue can be generated. These different products are electricity,
CO2, and fertilizer. In the first case only electricity was considered as a product to earn
revenue. In the second case, electricity and CO2 were considered as products for revenue. In
the third case, electricity and fertilizer were considered as product for revenue and finally the
fourth case, considers electricity, CO2 and fertilizer as revenue earning products.
So an analysis of these scenarios for different cases will help the people concerned to take
decision for their further planning in this field.
53

6.1 Financial Analysis
For financial analysis three different financial indexes were calculated to find out the
economic feasibility of producing electricity from poultry waste. These indexes are as
follows:
Net Present Value (NPV) 29
This is the difference between sum of discounted cash flow which is expected from the
project during the project’s life time and the initial investment. A project is financially
feasible if the NPV is positive. The bigger the NPV, the more profitable is the project. If the
NPV is zero it means the project is at break even point. The formula for NPV is as follows:
Each cash inflow/outflow is discounted to its present value. Then they are summed.
Therefore,
NPV
n
= ∑
t=
1
Ct
t
( 1+
r)
− C
Where
t = the time of the cash flow
n = the total time of the project
r = the discount factor
Ct = the net cash flow at time t
0
C0 = the capital outflow at the beginning of the investment time (t=0)
Internal Rate of Return (IRR)
Internal rate of return is the discount factor at which the NPV is zero. If the IRR is higher
than the discount rate then the project is feasible. The formula used to calculate the IRR is as
follows:
IRR = i1-NPV1*[(i2-i1)/(NPV2-NPV1)]
i1= is the interest at which NPV is positive
i2= is the interest rate at which NPV is negative
NPV1 = Net present Value at interest rate i1
NPV2 = Net Present Value at interest rate i2 (Boyd, 2006, p. 36)
29 http://en.wikipedia.org/wiki/Net_present_value, printed on 15.08.2008
54

Pay Back Period 30
Pay back period is defined as the length of time period required to recover the initial
investment through discounted the annual cash flow generated by the investment. The shorter
the pay back period is better the project.
The equation of Payback Period when the cash flows are same every year during the project
life:
Payback Period = Investment/ annual cash inflow
The equation of Payback Period for variable cash flow is given below:
Payback Period = last year with a negative cash flow + (|value of net benefits|)/total cash flow
(next year).
6.1.1 Assumptions:
Electricity consumption: It was assumed that all the biogas will be consumed for electricity
generation. It was also assumed that all the electricity will be produced in the poultry farm
will be consumed either by the poultry farm itself or by the adjacent household or enterprises.
Feeding the excess electricity on to the grid was not considered. To feed electricity onto the
grid needs the interconnection and according to the existing policy the cost for
interconnection shall be born by the electricity producers. Hence, the interconnection cost
would result in a higher investment cost. The rate at which BPDB purchases electricity from
Independent Power Producers (IPP) is about 2.05 BDT/kWh 31 which could be the limit for
the utilities to purchase electricity from the poultry farms. On the other hand, the domestic
tariff of electricity ranges from 2.53 BDT/kWh to 3.89 BDT/kWh 32 which is higher than the
BPDB rate for the IPPs. Therefore, it is more feasible to sell the excess electricity to
neighboring households or enterprises then feed on to the grid. It was estimated that in
Scenario I on an average 33% energy will be consumed by the poultry farm and the rest 67%
energy will be sold to the adjacent households. In Scenario II it was calculated that on an
average 57% energy will be consumed by the poultry farm and the rest 43% will be sold to
adjacent households. The detail calculation is given in Appendix 6.1.
30 http://www.odellion.com/pages/online%20community/Payback/financialmodels_payback_equations.htm
printed on 10.08.2007
31 own calculation based on BPDB, 2004-2005, p. 78
32 interview by author with Mr. Susanta Chandra Sarkar, Assistant General Maganger (Finance), Gazipur PBS,
dated 28.06.07
55

Cost of biogas plant: The construction costs of different available sizes of biogas plant in the
country are shown in Figure 6.1.
Cost (BDT)
400000
350000
300000
250000
200000
150000
100000
50000
0
Figure 6.1 Cost of bio gas plant
17197 18526 28161 32678
56
44491
63990
75050
118500
357500
2 3 4 6 9 11.4 14.3 28.6 70
Size (m3)
Source: Compiled and translated by author based on BCSIR, 1998 as quoted in BCAS, 2005,
p. 20 and interview by the author with Mr. M. A. Gofran, Grameen Shakti, Dhaka,21.05.2007
The average cost of the available sizes was considered as the construction cost of biogas plant
per m 3 .
Operation and Maintenance (O & M) cost of bio gas plant: Operation cost consists of
labor cost and cost of poultry litter and maintenance cost is considered as the cost of changing
valves, gas pipe etc.
Labor cost for biogas plant: Labor cost for charging the droppings into the biogas plant is
considered zero in the analysis as the poultry farm needs to clean the droppings to avoid the
bad smell and to clean the poultry shed for hygienic reason. It was observed that there is a
drainage system around the poultry shed which is connected to the inlet chamber of biogas
plant and the charge can flow into the inlet chamber due to gravity. So there is no additional
cost incurred to charge the dropping into the biogas plant for producing electricity. So what
ever work else is associated with charging the dropping into the inlet chamber can be done by
the existing manpower used in the poultry. The cost of poultry droppings is considered zero
as the electricity will be generated in individual poultry farms from their own poultry
droppings.

Maintenance cost of biogas plant: Maintenance cost of biogas plant is considered as the
replacement cost for valves, socket, gas pipe etc. It was considered that valves, gas pipe etc,
has to be replaced every three years due to leakage. For a 6 m 3 biogas plant the cost is
considered as 1035 BDT (Grameen Shakti, 2006, p. 27). For a larger size of biogas plant the
replacement cost of valves, gas pipe etc would not very too much. Therefore it was
considered as the unit cost for one biogas plant
Cost of slurry pit: For storing the slurry coming out of the biogas plant a pit is required. The
cost for 1000 birds’ poultry farm is considered as 4000 BDT (BCAS, 2005, p. 43) and for
larger farms it increases proportionally.
Maintenance cost for slurry: It was found that slurry is not used as fertilizer commercially.
Usually, the neighboring farmers or fish farmer take it away free of cost and the poultry
farmers do not handle it. So in the case where there is no revenue income from slurry, the
cost for its maintenance was considered zero. However in the case where it is considered that
slurry could be sold commercially the cost of maintenance is considered as 25% of selling
price.
Cost of generator: Currently only three to four different sizes of generators are being used in
different poultry farms which are producing electricity from poultry waste. The sizes are 2
kW, 3 kW, 4.5 kW and 5 kW. However, the costs of only three different sizes of generators
are available which is given in the following Table 6.1.
Table 6.1 Cost of Generators
Size (kW) Cost (BDT)
2 21700
3 36000
5 50000
Source: Compiled by author based on interview by author with Mr. M. A. Gofran, Grameen
Shakti, Dhaka, 21.05.2007 and Dr. Khursheed-Ul-Islam, GTZ Bangladesh, Dhaka,17.06.2007
So for larger sizes of generators the cost is synthesized from the cost of available sizes. For
example, the cost of a 10 kW generator was considered as the total cost of two 5 kW
generators. Similarly, the cost of a 50 kW generator was considered as the summation of ten
5 kW generators. Cost of digression was not considered due to lack of adequate data.
57

However, one analysis is made on the effect of cost digression of generator later in section
6.2.
Maintenance cost of generator: The annual maintenance cost generator was considered as
10% of its investment cost.
Operation cost of generator: The operation cost of generator was considered zero as biogas
is free of cost for the generator.
Cost H2S and moisture removal unit: In the GTZ flagship project at Raj Poultry Farm in
Faridpur district, the cost of H2S and Moisture removal unit for 10 kW plant was considered
as 10000 BDT 33 . For other size of plant the cost would be different. For the simplicity, the
cost for H2S and Moisture removal unit was considered as per kW which is drawn from the
flagship project. For example, for a 1 kW plant the cost was considered 1000 BDT.
Maintenance/ operation cost of H2S removal unit: Maintenance cost for H2S removal unit
was derived from GTZ flagship project. The cost is considered as per kW. For 10 kW plant
the maintenance cost is 8350 BDT per year (ibid). So the cost for 1 kW plant was considered
as 835 BDT per year.
Maintenance/ operation cost of moisture removal unit: Maintenance cost for moisture
removal unit was also derived from GTZ flagship project. The cost is considered as per kW.
For 10 kW plant the maintenance cost is 2000 BDT per year (ibid). So the cost for 1 kW plant
was considered 200 BDT per year.
Cost of compressor for regeneration process: In GTZ flagship project for 10 kW plant the
cost of compressor was 4000 BDT (ibid). For other sizes of power plant it was considered
proportionally. However, the minimum cost of compressor was considered 1000 BDT.
Amount of CO2 saved: The amount of CO2 could be saved from this project was compared
with the system that producing electricity from natural gas. Because more than 85%
electricity of the national grid comes from natural gas and poultry farms are grid connected.
As an alternative source of energy CO2 emission is considered zero for producing electricity
from poultry waste. The calculation of CO2 emission in Bangladesh from natural gas power
plant is shown in Annex 6.3.
33 Interview by the author with Dr. Khurshieed-Ul-Islam, GTZ, Dhaka, 17.06.2007
58

Cost of CO2: The cost of CO2 was considered as equivalent to US$ 10 per ton of CO2 which
is the average cost of Certified Emission Reduction (CER) in developing countries in the year
2006 (Kapoor and Ambrosi, 2007, p. 4)
Cost of electricity: The cost of electricity for the amount of energy consumed by the farm
itself was considered as commercial tariff and the excess energy to be sold to adjacent
household was considered as domestic tariff. Different electricity tariffs of Gazipur PBS are
given in Appendix 6.2. The electricity tariff was inflated every year with the considered
inflation rate.
Cost of Fertilizer: Cost of fertilizer was considered as the minimum rate or price of sun
dried slurry found during field visit.
Inflation: The inflation rate was considered 5.28% as the average of the inflation rate in the
country since 1998 to 2006 (BB, 2005-2006, pp. 16-17 and own calculation).
Litter/droppings production: It was considered that a layer bird produces 0.1 kg droppings
per day (BCAS, 2005, p.43).
Biogas production: It was considered that with a 40 days retention time at 30ºC, 0.063 m 3
gas is produced from 1 kg of droppings (ibid).
Fertilizer production: It was considered that 40% of the droppings are converted into
fertilizer (ibid, p. 44).
Electricity production: It was considered that 0.75 m 3 biogas is required to generate 1 kWh
of electricity (Gofran, 2004, p. 113).
59

The other parameters considered in the financial calculation are given in Table 6.2.
Table 6.2 Financial parameters
Litter/ droppings production 0.1 kg/ day per bird
Biogas production per kg of droppings 0.063 m 3 /day at 30º C
Fertilizer production 40% of droppings
Amount of bio gas required to produce electricity 0.75 m 3 / kWh
Cost of fertilizer 0.8 BDT/ kg
CO2 emission for natural gas power plant 0.57 ton/ MWh
Cost of CO2
60
$ 10/ t CO2 or 685 BDT/ t CO2
Cost of electricity (Domestic) + 5% VAT 2.70 BDT/ kWh
Cost of electricity (Commercial) +5% VAT –
20% Rebate
4.29 BDT/ kWh
Life of biogas plant 20 years
Life of generator 5 years
Discount rate 8%
Tax 0%
Inflation 5.28%
Depreciation 20 years
6.1.2 Overview of Scenario result:
On the basis of different assumption as described in chapter 6.1.1, the different parameters
showed in Table 6.2 NPV, IRR and Payback Period were calculated for different sizes of
poultry farms such e.g. 500, 1000, 2000, 3000, 4000, 5000, 6000, 7000, 8000, 9000, 10000,
15000, 20000 and 50000 birds. NPV, IRR and Payback Period were calculated for each size
of poultry farms under both Scenarios I & II for four different cases. The calculation was
done to find out the minimum size of poultry farms for different scenarios and for different
cases as well which could produce electricity with financial viability. These minimum sizes
later help to estimate the total potential to produce electricity from poultry waste. The
summary results of Scenario I and Scenario II are shown in the following figures graphically.
The detail result of NPV, IRR and Payback Period for Scenario I and Scenario II are given in
Appendix 6.4 and Appendix 6.5 respectively. The following Figure 6.2 and Figure 6.3 show
the NPV for different sizes poultry farms for Scenario I and Scenario II respectively.

Figure 6.2 NPV of different size of farms with different product for revenue under Scenario I
NPV (BDT)
4000000
3000000
2000000
1000000
0
-1000000
-2000000
500
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
15000
20000
50000
Size of poultry farm
61
E
E+C
E+F
E+F+C
Source: Author
Figure 6.3 NPV of different size of farms with different product for revenue under Scenario II
NPV (BDT)
4000000
3000000
2000000
1000000
0
-1000000
-2000000
500
1000
2000
3000
4000
5000
6000
Size of poultry farm
7000
8000
9000
10000
15000
20000
50000
E
E+C
E+F
E+F+C
Source: Author
The following Figure 6.4 and Figure 6.5 show the IRR for different sizes poultry farms for
Scenario I and Scenario II respectively.

Figure 6.4 IRR of different size of farms with different product for revenue under Scenario I
IRR (%)
24
20
16
12
8
4
0
Size of poultry farm
62
E
E+C
E+F
E+F+C
Source: Author
Figure 6.5 IRR of different size of farms with different product for revenue under Scenario II
IRR (%)
28
24
20
16
12
8
4
0
500
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
500
15000
1000
20000
2000
50000
3000
4000
5000
6000
7000
8000
9000
10000
15000
20000
50000
Size of poultry farm
6.2 Analysis of Scenario I & II results:
Case 1: Only electricity as a product to earn revenue
E
E+C
E+F
E+F+C
Source: Author
It is evident from Figure 6.2, 6.3 and from Figure 6.4, 6.5 that the size of poultry farms
ranging from 500 birds to 50000 birds all faces negative NPV and the IRR is much lower
than the discount rate. So in this case no farm is financially viable to produce electricity.
Therefore, there is no economic potential in the study area as well as in the country to
produce electricity from poultry waste in this case.
The above discussions satisfy the third research question of the study.

Case 2: Electricity and CO2 as product to earn revenue
It is clear from Figure 6.2 and 6.4 that, for Scenario I where farms produce electricity only for
five hours in the country peak, even the cost of CO2 can not make it financially viable. The
NPV calculated for different sizes of poultry farms is negative and IRR is also much lower
than the discount rate. So there is no potential to produce electricity from poultry waste in
this case for Scenario I. However, due to addition of CO2 cost both NPV and IRR is little
higher than case 1.
On the other hand, for Scenario II where electricity production was considered twelve hours
through out the day, it is seen from Figure 6.3 and Figure 6.5 that the addition of CO2 cost
makes electricity production financially viable for the farms with 6000 birds and above. For
the farms with the capacity of 6000 birds and above, NPV was found positive and IRR is
above discount rate. The farms with the capacity of less than 6000 birds are not financially
feasible to produce electricity from poultry waste.
In scenario II the farms produce electricity for twelve hours and consume it through out the
time. So as compared to scenario I, in scenario II poultry farms consume more energy than it
sells to neighboring household. Hence, the revenue earning from electricity is higher in
scenario II than in scenario I as the tariff for poultry farms is higher than it sells to household.
At the same time larger farms produce more energy, hence save more CO2 which makes the
larger farms financially viable to produce electricity from poultry waste.
The above discussions satisfy the fourth research question of the study.
Case 3: Electricity and Fertilizer as product to earn revenue
It is obvious from Figure 6.2, 6.4 and from Figure 6.3, 6.5 that for both Scenario I and
Scenario II, the addition of fertilizer cost with electricity makes most of the farms financially
viable to produce electricity from poultry waste. It was found that for the farms ranging from
1000 birds to 50000 birds, the NPV is positive and the IRR is much above the discount rate.
It is manifested that the most important factor to make the project viable is the addition of the
cost of fertilizer to the cost of electricity. Since the revenue earning from fertilizer is always
higher than the revenue earning from electricity. However, the NPV for farms with the
capacity 500 birds was found negative and the IRR is much lower than the discount rate for
both scenario I and II. So farms with 500 birds are not financially feasible to produce
electricity since the installation cost is much higher as compared to energy generation.
The above discussions satisfy the fifth research question of the study.
63

Case 4: Electricity, Fertilizer and CO2 as product to earn revenue
In this case besides electricity and fertilizer, CO2 is added as a product to earn revenue. Like
case 3, it was found that for the farms ranging from 1000 birds to 50000 birds, the NPV is
positive and the IRR is much above the discount rate for both Scenarios I and II. Due to the
addition of cost of CO2 the NPV and IRR is little bit higher and the pay back period is lower
than in case3. However, even the addition of CO2 cost can not make 500 birds’ farm
financially viable to produce electricity due to the high installation cost as compared to
energy generation.
The above discussions satisfy the sixth research question of the study.
From Figure 6.4 and Figure 6.5, it is shown that for case 3 & 4, the IRR for the poultry farms
with capacity 2000 birds and above is much higher than the discount rate. However, the IRR
for the poultry farms with capacity 1000 birds and below is much lower. Since the tariff from
electricity in case of 1000 birds and below was considered as domestic rate which is much
lower than the commercial rate. On the other hand, there is no IRR for the farms with the
capacity of 1000 birds and below in case 1 & 2.
Effect of Cost Digression of Generators
Cost digression of generators was considered on the basis of data provided by one generator
distributor/supplier in Bangladesh called Fair Trade International. The costs of available sizes
are shown in Table 6.3. As all the sizes required for the financial analysis are not available in
table 6.3, the cost of other sizes required were synthesized from these available prices by
interpolating or extrapolating.
Table 6.3 Cost of different sizes generators from Fair Trade International
Size (kW) Cost (BDT)
2 35000
3 48000
5 72000
10 225000
15 250000
20 260000
24 270000
Source: Data provided by Mr. Harun Ur Rashid Talukder, Manager, Fair Trade International,
Dhaka, Bangladesh, 20.08.2007.
The following Figure 6.6 shows the IRR of different size of poultry farms with cost
digression of generators under Scenario I.
64

Figure 6.6 IRR of different size of farms with cost digression of generators for Scenario I
IRR (%)
32
28
24
20
16
12
8
4
0
500
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
15000
20000
45000
50000
Size of poultry farm
65
E
E+C
E+F
E+F+C
Source: Author
For Scenario I it was found that the farms with the capacity of 20000 birds and above are
financially viable to produce electricity for case 2 where cost of electricity and cost of CO2
are considered as product to earn revenue. It was also found that farms with the capacity of
45000 birds and above are financially viable to produce electricity even in case 1 where only
electricity is considered as revenue earning product. However, for such big farms some
unseen cost such as cost for control equipment etc. can make it financially unviable as the
IRR is not too high as compared to discount rate and the cost considered for generator is
extrapolated from some smaller sizes of generators which may vary in reality. In terms of
financially viability for case 3 and case 4 it does not make any differences as compared to the
analysis where cost digression for generators was not considered as shown in Figure 6.4.
However, it is seen in Figure 6.6 that IRR is decreasing from the farms with 3000 birds to
6000 birds for all cases due to the high cost escalation between 5 kW and 10 kW generators
as shown in Table 6.3. In this case multiple generators can be used as considered before in
the financial calculation without considering cost digression.
The following Figure 6.7 shows the IRR of different size of poultry farms with the cost
digression of generators under Scenario II.

Figure 6.7 IRR of different size of farms with cost digression of generators for Scenario II
IRR (%)
32
28
24
20
16
12
8
4
0
500
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
15000
20000
50000
Size of poultry farm
66
E
E+C
E+F
E+F+C
Source: Author
In Scenario II it was found that for case 1 and case 2 the farms with 50000 birds are
financially viable to produce electricity. This differs from the result shown in Figure 6.5
where no cost digression was considered. For case 2 the farms with capacity 6000 birds and
above were found financially viable where the cost digression was not considered and no
farms were found financially viable for case 1. It is also seen from Figure 6.7 that 2000 birds’
farm and above are financially feasible to produce electricity for case 3 and case 4. Whereas
it was found that 1000 birds’ farm are also financially feasible to produce electricity without
considering cost digression. So it can be said that for smaller farms use of multiple units of
generator is more feasible. It is also seen from Figure 6.7 that IRR is decreasing for the farms
with the capacity from 9000 birds to 15000 birds due to the high price escalation between 5
kW and 10 kW generators as shown in Table 6.3. In this case using multiple units of
generator is more feasible.
The prices shown in table 6.3 are much higher than the price considered in table 6.1. The data
provided in Table 6.3 could not be verified whether it is competitive or not as it was taken
from one supplier.
Through the analysis it can be concluded that considering cost digression of generators does
not make too much differences in most of the cases to make the project financially viable or
unviable. Using multiple units of generators has more financial advantage for the smaller and
middle sizes poultry farms whereas using single unit generator set has the advantage for large
scale farms. However, it is also true that the extrapolation or interpolation also does not

epresent the real cost of technology. Therefore, the estimation of total potential of electricity
production on the basis of calculation without considering cost digression of generators is
also justified.
6.3 Estimate of Total Potential
Case 1: Only electricity as a product to earn revenue
There is no economic potential in the study area as well as in the country to produce
electricity from poultry waste in this case.
Case 2: Electricity and CO2 as product to earn revenue
In this case for Scenario II it was estimated from the survey data that the total production of
electricity would be about 13 GWh per year and the corresponding annual fertilizer
production and CO2 savings was estimated at 59 thousand ton and 7 thousand ton
respectively in the study area.
Similarly, for the whole country, the total production of electricity was estimated at 135 GWh
per annum and the corresponding annual fertilizer production and CO2 savings was estimated
640 thousand ton and 77 thousand ton respectively.
However, there is no economic potential to produce electricity in Scenario I.
Case 3: Electricity and Fertilizer as product to earn revenue
In this case, for both Scenario I & II, based on the survey data the total annual electricity
generation in the study area was estimated at 34 GWh and the corresponding annual fertilizer
production and CO2 savings was estimated at 159 thousand ton and 19 thousand ton
respectively.
Likewise, for the whole country the total annual electricity generation was estimated at 360
GWh and the fertilizer production and CO2 savings per year was estimated at 1715 thousand
ton and 205 thousand ton respectively.
Case 4: Electricity, Fertilizer and CO2 as product to earn revenue
Like case 3, on the basis of survey data, in this case the total annual electricity generation was
estimated at about 34 GWh in the study area and the corresponding fertilizer production and
CO2 savings was estimated at about 159 thousand ton and 19 thousand ton per year
respectively.
67

The corresponding country electricity generation was estimated at about 360 GWh per annum
and the fertilizer production and CO2 savings was estimated at about 1715 thousand ton and
205 thousand ton per year respectively.
The summary of estimated potential of electricity generation and corresponding fertilizer
production and CO2 savings in each case under different scenarios is given in the following
Table 6.4 and Table 6.5.
Table 6.4 Summary of estimated potential of electricity generation, fertilizer production and
CO2 savings in Scenario I
Potential of Scenario I
Electricity Fertilizer (000’ CO2 (000'
(GWh/year) ton/year)
ton)/year
Case 1 Gazipur district 0 0 0
Bangladesh 0 0 0
Case 2 Gazipur district 0 0 0
Bangladesh 0 0 0
Case 3 Gazipur district 34 159 19
Bangladesh 360 1715 205
Case 4 Gazipur district 34 159 19
Bangladesh 360 1715 205
Source: Author
Table 6.5 Summary of estimated potential of electricity generation, fertilizer production and
CO2 savings in Scenario II
Potential of Scenario II
Electricity Fertilizer (000’ CO2 (000'
(GWh/year) ton/year)
ton)/year
Case 1 Gazipur district 0 0 0
Bangladesh 0 0 0
Case 2 Gazipur district 13 59 7
Bangladesh 135 640 77
Case 3 Gazipur district 34 159 19
Bangladesh 360 1715 205
Case 4 Gazipur district 34 159 19
Bangladesh 360 1715 205
68
Source: Author

6.4 Sensitivity Analysis
The sensitivity analysis was carried out for both the Scenarios I & II to determine how the
financial indexes react with the variation of the different parameters e.g. market price for
different installation. Two parameters were considered in the sensitivity analysis and these
are the variation of investment cost and the variation of discount factor.
6.4.1 Effect of variation of investment cost
Since the financial viability may be concluded from IRR, only the variation of IRR is shown
in the analysis. The sensitivity analysis was carried out for the variation of investment cost by
±20%. It is obvious that the higher investment cost would results to lower IRR and the lower
investment cost would results to higher IRR. However, it was found that with the variation of
investment cost by ±20% some farms for different cases become financially viable or
unviable. So only the farms which are sensitive in a sense to make it financially viable or
unviable with the variation of investment cost are shown in the analysis.
Scenario I:
In Scenario I larger farms are not sensitive to the increase or decrease of 20% investment cost
which means that the variation of the investment cost can not make any farms financially
viable or unviable for either of the cases. For example, the change of IRR for a 10000 birds’
capacity farm is given in Appendix 6.6.
However, figure 6.8 shows that the increase of investment cost by 20% makes the 1000 birds’
farm financially unviable for case 3 where the fertilizer cost is added with the electricity cost.
So the increase of investment cost by 20% would reduce the total potential to produce
electricity.
69

IRR (%)
18
16
14
12
10
8
6
4
2
0
Scenario II:
Figure 6.8 IRR at different investment cost (1000 birds farm)
-20% 0%
% variation on investment cost (1000 birds)
20%
70
E
E+C
E+F
E+F+C
Source: Author
In Scenario II the increase or decrease of investment cost by 20% has effect on different sizes
of poultry farms. It is seen from figure 6.9 that with 20% increase of investment cost makes
1000 birds’ poultry farm financially unviable in case 3 where both electricity and fertilizer
cost is considered as revenue earning. Hence the total potential would be decreased in this
case. However, case 4 is still financially viable with the variation of investment cost.
IRR (%)
18
16
14
12
10
8
6
4
2
0
Figure 6.9 IRR at different investment cost (1000 birds farm)
-20% 0%
% variation on investment cost (1000 birds)
20%
E
E+C
E+F
E+F+C
Source: Author
It was found that 4000 birds’ farms, 6000 birds’ farms and 10000 birds’ farms are also
sensitive to the variation of investment cost by ±20%. The sensitivity analyses of these farms
are given in Appendix 6.6 graphically.

The summary of estimated potential of electricity generation in each case under different
scenarios with the variation of investment cost is given in the following Table 6.6 and Table
6.7.
Table 6.6 Summary of estimated potential of electricity generation in GWh/ Year in Gazipur
district
Scenario I
Scenario II
Variation in
Investment
Cost
Case 1
(E)
71
Case 2
(E+C)
Case 3
(E+F)
Case 4
(E+C)
0% 0 0 34 34
-20% 0 0 34 34
20% 0 0 29 34
0% 0 13 34 34
-20% 13 15 34 34
20% 0 0 29 34
Source: Author
Table 6.7 Summary of estimated potential of electricity generation in GWh/ Year in
Bangladesh
Scenario I
Scenario II
Variation in
Investment
Cost
Case1
(E)
Case 2
(E+C)
Case 3
(E+F)
Case 4
(E+F+C)
0% 0 0 360 360
-20% 0 0 360 360
20% 0 0 309 360
0% 0 135 360 360
-20% 135 156 360 360
20% 0 0 309 360
Source: Author
6.4.2 Effect of variation of Discount Rate
The sensitivity analysis was carried out for different cases under both Scenarios I & II at
different discount rate and these are 8%, 6% and 4%. It is obvious that the higher discount
rate would result lower NPV and the lower discount rate would result higher NPV. However,
it was found that with the variation of discount rate some farms for different cases become
financially viable or unviable. So only the farms which are sensitive to the variation of
discount factor are shown in the analysis.

Scenario I
It was found that for case 2 where the cost of CO2 and electricity is considered for revenue, at
4% discount rate the farms with the capacity of 3000 birds and above are financially feasible
to produce electricity. However, at 6% discount rate the farms are not sensitive in any cases.
Figure 6.10 shows the variation of NPV with the variation of discount factor for a 3000 birds
capacity farm.
NPV (BDT)
500000
400000
300000
200000
100000
0
-100000
-200000
Scenario II
Figure 6.10 NPV at different discount factor (3000 birds farm)
8% 6%
Discount Factor (3000 birds farm)
4%
72
E
E+C
E+F
E+F+C
Source: Author
It was found that at 6% discount rate the farms with 3000 birds and above are financially
viable to produce electricity for case 2 where the cost of CO2 and electricity is considered for
revenue and the farms with 6000 birds and above are even viable for case 1 where only
electricity cost is considered for revenue. Figure 6.11 shows the variation of NPV at different
discount rate for 3000 birds’ and the variation of NPV for 6000 birds’ farm are given in
Appendix 6.6.

NPV (BDT)
500000
400000
300000
200000
100000
0
-100000
Figure 6.11 NPV at different discount factor (3000 birds farm)
8% 6%
Discount Factor (3000 Birds)
4%
73
E
E+C
E+F
E+F+C
Source: Author
At 4% discount rate, it was found that for case 2 farms with 2000 birds and above are
financially viable and for case 1 farms with 3000 birds and above are financially viable to
produce electricity. The variation of NPV with the variation of discount factor for a 2000
birds’ farm is shown in Appendix 6.6.
The summary of estimated potential of electricity generation in each case under different
scenarios with the variation of discount factor is given in the following Table 6.8 and Table
6.9.
Table 6.8 Summary of estimated potential of electricity generation in GWh/ Year in Gazipur
district
Variation of Case 1 Case 2 Case 3 Case 4
Discount Rate (E)
(E+C) (E+F) (E+F+C)
Scenario I 8% 0 0 34 34
6% 0 0 34 34
4% 0 19 34 34
Scenario II 8% 0 13 34 34
6% 13 19 34 34
4% 19 29 34 34
Source: Author

Table 6.9 Summary of estimated potential of electricity generation in GWh/ Year in
Bangladesh
Variation of Case 1 Case 2 Case 3 Case 4
Discount Rate (E)
(E+C) (E+F) (E+F+C)
Scenario I 8% 0 0 360 360
6% 0 0 360 360
4% 0 199 360 360
Scenario II 8% 0 135 360 360
6% 135 199 360 360
4% 199 309 360 360
Source: Author
74

7.1 Conclusions
CHAPTER 7 CONCLUSION AND RECOMMENDATION
The study looked at the present energy consumption status in different poultry farms, the
financial viability of the minimum sizes of poultry farms for different scenarios and different
cases and the potential of electricity generation from poultry waste.
The study has revealed that there is a potential to produce electricity from poultry waste and
there is high interest from farmers to produce the electricity. This interest has come due to the
fact that all the poultry farms experience load shedding through out the day mostly in the
evening which hampers the production of the farm. According to the findings electricity can
be produced from poultry waste for the total daily consumption of most of the poultry farms
and in addition electricity can also be produced for the peak hour only to save farms from
being cut off.
Energy efficient lamps can be used in every poultry farm as the purpose of using lamps is
lighting only, not heating.
The capacity of most of the biogas plants installed in different poultry farms is undersized
than its total potential. Producing electricity is more significant than using biogas for thermal
purpose because only few farms can sell biogas at least to one customer whereas the majority
of the farms does not have any market to sell biogas.
At present there is no commercial value or market of slurry as fertilizer in general. Since
people are not aware of the value of the slurry as organic fertilizer and existing law does not
permit to sell biogas slurry in the market without patent.
The technology used in the industry to produce electricity is not proven yet as it is relatively
new in the country. However, the technology used in GTZ flagship project is more scientific
than others.
The main barriers to dissemination of the technology is the existing law for marketing slurry
as organic fertilizer and the lack of awareness of the people using slurry. Moreover, the
technology itself is a barrier as it is not proven yet. Furthermore, the initial investment cost
for the installation is also a barrier for the farmers.
Financial analysis was done for plants ranging from 500 birds up to 50000 birds. From the
analysis it was concluded that electricity generation for twelve hours through out the day is
financially more feasible than producing electricity for five hours in the peak.
75

Only electricity as a product to earn revenue cannot make the project feasible for any of the
scenarios. In addition of CO2 cost with the cost of electricity still can not make the project
feasible for Scenario I irrespective of poultry size. However, for scenario II, farms with 6000
birds and above can go for electricity production.
In addition of fertilizer cost with electricity cost makes the project feasible for both the
scenarios for the farms with a capacity of 1000 birds and above. Addition of CO2 cost with
fertilizer and electricity cost makes the project more profitable for both the scenarios for the
farms with a capacity of 1000 birds and above. The farms with the capacity of 500 birds are
no way financially feasible to produce electricity.
So, it can be said that CO2 can not make too much difference. Fertilizer makes the
difference.
There is no economic potential to produce electricity if only electricity is considered as a
product to earn revenue. In addition of CO2 cost with electricity cost the estimated power
production is 13 GWh/year in Gazipur district and 135 GWh/year in Bangladesh if the
electricity production is run for twelve hours a day. However, there is no potential in this case
if electricity is produced for five hours a day. On the contrary, in addition of fertilizer cost
with the electricity cost the estimated power production is 34 GWh/year in Gazipur district
and 360 GWh/year in Bangladesh irrespective of the duration of electricity production.
Rejection/ acceptance of the hypothesis: From the above discussion it can be said that there
is a potential of producing electricity from poultry waste. So it justifies the first hypothesis
“Poultry waste in commercial poultry sector as a source of biogas has the significant or
substantial potential for electricity generation”.
On the other hand, the above discussion shows that all the poultry farms are not financially
viable to produce electricity from poultry waste. For different cases under different scenarios
there is a variation of potential to produce electricity as because the minimum size of poultry
farm is different for different cases. So the second hypothesis “Producing electricity from
poultry waste of commercial poultry sector as a source of biogas is economically
feasible” is partially accepted.
76

7.2 Recommendation
On the basis of findings and analysis of the study the author recommends the followings:
Amendment of existing law is required to eliminate the bureaucratic obstacles for the
marketing of slurry as organic fertilizer.
Awareness development program is required to build up the knowledge about the
benefit of using slurry as fertilizer among the people to create the market.
Awareness development program is required to make the poultry farmers aware about
the use of energy efficient appliances which can reduce the electricity consumption of
the farm.
To make the technology sustainable and proven, H2S removal is necessary. For
dissemination, the technology being used in GTZ flagship project can be replicated
after being tested properly.
After installation of the system in poultry farms, the farmers should be properly
trained for regular maintenance of the system otherwise it will incur additional cost to
hire a technician.
The supply of spare parts for the engine and other accessories has to be ensured.
Some enterprises can be established to serve the poultry farmer in case of necessity
regarding the technology used for electricity production.
Installation of biogas plant in the poultry farms should be made mandatory to avoid
the environmental hazards and should be integrated in the national policy document.
Further study is required for the dissemination of the technology at mass level.
Further study can be done to find out the potential of producing electricity from
poultry waste through a centralized system to feed on to the grid.
77

BIBLIOGRAPHY
Ali, Monshof, 2005: “The Use and Status of Biogas Plants in Pabna District in Bangladesh”.
M.Sc. thesis, SESAM, Institute of International Management, University of Flensburg,
Germany (Unpublished).
BB, 2005-2006: Annual Report 2005-2006. Bangladesh Bank http://www.bangladesh-
bank.org printed on 20.08.2007
BBS, 2006: Population Census-2001, Community Series, Zilla: Gazipur. Bangladesh Bureau
of Statistics, Dhaka.
BBS, 2007: 2005 Statistical Year Book of Bangladesh. Bangladesh Bureau of Statistics,
Dhaka
BCAS, 2005: Report on Feasibility Study on Biogas from Poultry Droppings. Bangladesh
Centre for Advance Studies.
Boyd, Britta, 2006: Foundation Course in Business Studies. SESAM, University of
Flensburg, Germany
BPDB, 2004-2005: Annual Report 2004-2005. Bangladesh Power Development Board
Ghoshal, A. K., 2005: Poultry biggyan (Poultry Science). Adittya Prokashaloy, Kolkata, 272
pp. (Translated by Author)
Gofran M. A., 2004: The Biogas Technology. Ashraf Jazan Begum, Dhaka, 127 pp.
(Translated by Author)
Grameen Shakti, 2006: Biogas Projukthi Nirdeshika. Grameen Shakti, Grameen Bank
Bhavan, Mirour-2, Dhaka. (Translated by Author)
Hossain, Ijaz and M. Tamim, 2005/2006: Energy and Sustainable Development in
Bangladesh. In: Sustainable Energy Watch 2005/2006, HELIO International
http://www.helio-international.org/reports/pdfs/Bngldesh-EN.pdf printed on 20.08.2007
Kapoor, K. and Philippe Ambrosi,. 2007: State and Trends of The Carbon Market 2007.
Washington D. C. http://etseq.law.harvard.edu/images/uploads/StateCarbon.pdf p. 4, printed
on 06.07.2007
Kumar, Sanjay, 1987: Contributions in Petroleum Geology and Engineering, Volume 4: Gas
Production Engineering. Gulf Publishing Company, Huston, 646 pp.
Latif, Md. Abdul, 1981: Primary Poultry Science. Bangla Academy, Dhaka, 130
pp.(Translated by Author)
78

Manning, Francis S. and Richard E. Thompson, 1991: Oil Field Processing of Petroleum,
Volume One: Natural Gas. Pennwell Publishing Company, Tulsa, Oklahama, 408 pp.
Naznin, Nadira, 2006: “Study of a SI Engine Using Biogas for Driving a Small Generator”.
M.Sc. Engineering thesis, Department of Mechanical Engineering, BUET, Dhaka,
Bangladesh (Unpublished).
NEP, 2004: National Energy Policy. Ministry of Power, Energy and Mineral Resources,
People’s Republic of Bangladesh http://www.petrobangla.org.bd/NEP_2004_fulldoc.pdf
printed on 15.08.2007
NEP, 2006: National Energy Policy (Draft). Ministry of Power, Energy and Mineral
Resources, People’s Republic of Bangladesh (Unpublished).
Nes Wim J. van, Willem Boers and Khurseed-Ul-Islam, 2005: Feasibility of a national
programme on domestic biogas in Bangladesh, Netherland Development Organisation,
Hague, Netherland
http://www.idcol.org/files/download/Report_on_biogas_feasibility_study_Bangladesh__final
.pdf printed on 20.08.2007
Policy Guidelines for Power Purchase from Captive Power Plant, 2007. Power Division,
Ministry of Power, Energy and Mineral Resources, People’s Republic of Bangladesh.
Policy Guidelines for Small Power Plant (SPP) in private sector, 2001. Bangladesh Gazette
http://www.idcol.org/files/download/pgspp.pdf printed on 15.08.2007
Rehling, Uwe, 2006: Small Biogas Plants. SESAM, University of Flensburg, Germany.
Shikdar, Muhammad Hassanuzzaman, 2005: “Study of Natural Gas Processing in
Bangladesh”. M. Engineering thesis, Department of Petroleum and Mineral Resources
Engineering, BUET, Dhaka, Bangladesh (Unpublished).
Internet Sources
http://banglapedia.search.com.bd/Maps/MG_0065.GIF printed on 10.06.2007
http://en.wikipedia.org/wiki/Net_present_value, printed on 15.08.2008
http://www.acdis.uiuc.edu/Research/OPs/Samrina/contents/part1.html, printed on 18.08.2007
http://www.bangladesh-bank.org/econdata/exchangerate.php printed on 06.07.2007
http://www.bpdb.gov.bd/download/Daily_Summery_Report.pdf printed on 20.08.2007
http://www.bpdb.gov.bd/installed_fuel.htm printed on 20.08.2007
http://www.bpdb.gov.bd/key_statistics.htm printed on 20.08.2007
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uations.htm printed on 10.08.2007
79

http://www.un.org/Depts/Cartographic/map/profile/banglade.pdf printed on 10.06.2007
Person contacted and organization visited
1. Dr.-Ing. Khursheed-Ul-Islam, Consultant, GTZ Bangladesh, Dhaka
2. Local Government Engineering Department, Agargaon, Dhaka
3. Mr. A. S. Md. Abdul Hannan, Scientific Officer, Department of Livestock Services,
Dhaka-1215, Bangladesh
4. Mr. Harun Ur Rashid Talukder, Manager, Fair Trade International, Dhaka, Bangladesh
5. Mr. Kazi Akhtaruzzaman, Director, BCSIR Laboratories, Dhaka
6. Mr. M.A.Gofran, Biogas Consultant, Grameen Shakti, Dhaka
7. Mr. Md. Kafiluddin Bhuyan, District Livestock Officer, Gazipur
8. Mr. Susanta Chandra Sarkar, Assistant General Maganger (Finance), Gazipur PBS
9. Mr. Tareq Mustafa, Assistant Engineer, TGTDCL, Dhaka
10. Power Cell, Power Division, Ministry of Power, Energy and Mineral Resources, Govt. of
the People's Republic of Bangladesh
80

Appendix A: Questionnaire
APPENDICES
Survey on the Potential of Electricity Generation from Poultry Waste
in Bangladesh. A case study of Gazipur District
SL No:
Part A: General Information
1.1 Name of the farm :
1.2 Address :
1.3 District:
1.4 Contact Number:
1.5 Contact Person:
1.6 Number of Bird: -------------- No.
1.7 Type of Birds:
1Broiler
2Layer
Part B: Present Energy Consumption Status
2.1 What is the name of your electricity provider?
1PDB
2REB
3DESA
4DESCO
5Others (please specify) ---------------
2.2 Do you have any energy deficit (Load Shedding)?
1Yes, go to question 2.3
2No, go to question 2.4
2.3 What is the frequency of load shedding (hours/day)?
Please specify --------------------------------
2.4 Do you have any back up system?
1Yes, go to question 2.5
2No, go to question 2.7
81
Date: . . 07

2.5 What type of back up system do you have?
1Diesel Generator
2Natural Gas Generator
3Biogas generator
4Grid
5Others (Please specify) -------------
2.6 What is the capacity of your back up systems?
----------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------
2.7 What is your monthly energy consumption according to different energy carriers? Please
specify the consumption and energy carriers.
N
o
Energ
y
Carrie
rs
Monthly Consumption
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
82
Total Unit

2.8 What is your total annual energy demand?
Electrical
Equipment/
Appliances
Light
Fan
Brooder
Scrapper
motor
Water motor
Qty
Total
Power
(kW)
Power
factor (if
applicab
le)
83
Average
use
hours
in week
day
Average
use
hours
in
weekend
Total
hours
per
week
Weeks
in
operatio
n per
year
Total
energy
per
year
(kWh)
2.9 What is your daily energy consumption/ demand pattern in summer?
Hours of
Power (KW) Total
day
(KW)
Light Fan Brooder Scrapper Water
motor motor
0-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24

2.10 What is your daily energy consumption/ demand pattern in winter?
Hours of
Power (KW) Total
day
(KW)
Light Fan Brooder Scrapper Water
motor motor
0-1
1-2
2-3
3-4
4-5
5-6
6-7
7-8
8-9
9-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
17-18
18-19
19-20
20-21
21-22
22-23
23-24
2.11 What is the amount of poultry waste from slaughtering per day?
---------------------------------------------------------------------------------------------------kg/day
2.12 How do you dispose your poultry waste? (Please specify)
a) From droppings -------------------------------------------------------------------------------------
b) From slaughtering ----------------------------------------------------------------------------------
2.13 Do you use the poultry waste as fertilizer?
1Yes, go to question 2.15
2No, go to question 2.17
2.14 What is the quantity of your poultry waste as fertilizer? ------------------ ------kg/ year
2.15 What is amount of your income from selling fertilizer? -------------------- ----Tk./year
2.16 Do you already have a biogas plant from poultry waste?
1Yes, go to question 2.18
2No, go to Section C
84

2.17 What is the size of the biogas plant?
Please specify the amount of biogas production/ day --------------------------------------------
2.18 In which year or date did you install the biogas plant?
Please specify ------------------------------------------------------------------------------------------
2.19 Do you sell biogas?
1Yes, go to question 2.21
2No, go to question 2.23
2.20 What is the quantity of sold biogas per month?
Please specify ------------------------------------------------------------------------------------------
2.21 What is the amount of money do you earn from selling biogas per month?
Please specify ------------------------------------------------------------------------------------------
2.22 Do you produce electricity from your biogas plant?
1Yes, go to question 2.24
2No, go to Section C
2.23 What is the capacity and ratings of the generator?
Please specify ------------------------------------------------------------------------------------------
2.24 In which year or date did you install the generator for electricity production?
Please specify ------------------------------------------------------------------------------------------
2.25 What is the percentage of your demand that is met by electricity generated from biogas
plant?
Please specify ------------------------------------------------------------------------------------------
2.26 Do you experience any problem with the system?
Please specify ------------------------------------------------------------------------------------------
85

Part C. Attitude toward Electricity Generation from Poultry Waste
3.1 Are you interested to produce electricity from your own poultry waste?
1Yes, go to question 3.2
2No, go to Section D
3.2 Why are you interested to produce electricity from your own poultry waste?
Please specify the reasons ----------------------------------------------------------------------
86

Part D. The Barriers of the Dissemination of the Technology
4.1 What is/are the barriers of the dissemination of the technology to produce electricity from
own poultry waste?
Please specify the reasons -------------------------------------------------------------------------
Thank you for taking the time to fill out the survey. Your input is greatly appreciate
87

Size of
poultry Farm
No. of
lamps
used
Wattage
of lamp
Appendix 4
Energy Consumption Status of Different Poultry Farms:
No of
fans
used
No.
hours
use of
fan
Hours of
load
shedding
per day
Use of
back up
system
Size of
back up
system
(kW)
Annual energy
consumption
(kWh)
Existing size
of biogas
plant (m 3 )
Size of biogas
plant (m 3 ) with
total potential
2000 18 26 10 10 4 Yes 2 5379 9 14
1250 9 40 6 6 4 Yes 3 2435 9 9
2400 20 26 7 7 4 Yes 3 5105 9 17
2500 18 60 13 6 4 No - 3573 9 18
2500 25 60 10 9 4 No - 9458 6 18
1625 10 40 0 0 4 No - 3139 9 12
2000 20 26 0 0 4 No - 2123 6 14
2000 12 40 0 0 4 No - 1245 9 14
1400 12 40 6 6 4 No - 2942 9 10
1350 6 40 3 6 4 No - 1342 9 10
1450 9 40 0 0 4 No - 1102 6 10
3000 24 40 0 0 4 No - 3761 6 21
1600 16 40 2 6 4 No - 1476 4 11
1400 8 40 2 6 4 No - 1769 6 10
3000 22 40 1 6 4 No - 3072 4 21
2500 26 40 0 0 4 No - 2094 2 18
3200 20 40 2 6 4 No - 2009 4 23
1000 8 60 0 0 4 No - 701 6 7
7000 80 40 50 12 4 Yes 15 20508 9 50
800 6 26 5 12 3 No - 1135 4 6
1000 5 26 3 7 3 No - 507 3 7
2000 20 40 16 8 7 Yes 5 5261 6 14
2000 16 40 10 8 7 No - 3476 6 14
5000 40 100 20 8 7 No - 12908 6 35
2000 20 100 10 8 7 No - 4994 6 14
Sheikh Ashraf Uz Zaman, SESAM 2007, University of Flensburg 88

Size of
poultry Farm
No. of
lamps
used
Wattage
of lamp
Appendix 4 (Contd…)
Energy Consumption Status of Different Poultry Farms:
No of
fans
used
No.
hours
use of
fan
Hours of
load
shedding
per day
Use of
back up
system
Size of
back up
system
(kW)
Annual energy
consumption
(kWh)
Existing size
of biogas
plant (m 3 )
Size of biogas
plant (m 3 ) with
total potential
5000 50 100 30 8 7 Yes 7.5 11747 6 35
1000 10 40 5 10 4 No - 1340 - -
900 20 60 6 8 4 No - 2750 - -
1500 8 26 5 10 4 No - 2342 - -
1800 12 40 0 0 4 No - 701 - -
2000 6 100 8 10 3 No - 2838 - -
2000 6 100 6 3 3 No - 1350 - -
1300 12 60 8 8 4 No - 2978 - -
600 8 60 4 10 3 No - 1882 - -
3500 22 40 20 8 4 Yes 5 5129 - -
5000 60 40 32 12 4 Yes 10 14465 - -
3000 18 40 24 12 5 Yes 7.5 9408 - -
11000 72 40 84 12 4 Yes 7.5 23179 - -
4000 50 100 18 12 4 Yes 5 7579 - -
8500 50 40 50 15 4 Yes 7.5 21144 - -
2000 20 100 8 8 7 Yes 15 4752 - -
4000 40 100 20 8 7 Yes 15 10852 - -
1000 10 100 6 8 7 No - 3050 - -
2000 16 100 10 8 7 No - 4410 - -
2500 16 100 3 8 7 No - 4427 - -
2000 20 100 10 8 7 No - 4994 - -
8000 80 100 40 8 7 Yes 10 21610 - -
2000 10 100 6 6 7 No - 3050 - -
2200 12 26 12 6 3 No - 1817 - -
2000 18 100 12 6 5 No - 5013 - -
Sheikh Ashraf Uz Zaman, SESAM 2007, University of Flensburg 89

Appendix 6.1
Percentage consumption of energy from own production for Scenario I
Hours of operation 5
number of bird 5000
Droppings/day 500 kg
gas production 31.5 m3
electricity production 42 kWh
generator size 8.4 kW
annual consumption by poultry 8113.75 kWh
annual production
% consumption
15330 kWh
Consider 100 watt lamp 52.92727 %
Consider 60 watt lamp 33.87965 %
Consider 40 watt lamp 24.35584 %
Consider 26 watt lamp 17.68917 %
Average consumption 32.21298 %
So, % of energy to be sold 67.79 %
Percentage consumption of energy from own production for Scenario II
Hours of operation 12
number of bird 5000
Droppings/day 500 kg
gas production 31.5 m3
electricity production 42 kWh
generator size 3.5 kW
annual consumption by poultry 11794 kWh
annual production 15330 kWh
% consumption
100 watt lamp 76.93 %
60 watt lamp 57.88 %
40 watt lamp 48.36 %
26 watt lamp 41.69 %
Average consumption 57 %
% of energy to be sold 43 %
90

Electricity Tariff of Gazipur PBS
Appendix 6.2
Category Range Tariff Unit
Domestic Up to 100 unit= 2.53 Tk/ kWh
Domestic 101 to 300 unit= 2.57 Tk/ kWh
Domestic 301 to 500 unit= 3.89 Tk/ kWh
Domestic More than 500 unit= 5.3 Tk/ kWh
Minimum charge for domestic 84 Tk/month
Commercial 5.11 Tk/ kWh
Minimum charge for commercial 120 Tk/month
Charitable institute 3.28 Tk/ kWh
Small Industrial 4.01 Tk/ kWh
Large Industry 3.91 Tk/ kWh
depends on load and other factors
Minimum charge
Irrigation 3.02 Tk/ kWh
Street light 3.75 Tk/ kWh
VAT Applicable 5%
*Poultry farms are considered under commercial category.
*Poultry farms having upto 1000 birds are considered under domestic category
*Poultry farms having more than 1000 birds are under commercial category and these farms
get 20% rebate on the total bill.
Source: interview with Susanta Chandra Sarkar, Assistant General Maganger (Finance),
Gazipur PBS, dated 28.06.07
91

Appendix 6.3
Calculation of CO2 savings of producing electricity from poultry waste:
As biogas is an alternative source of energy the emission of producing electricity from
poultry waste is considered zero.
More than 85% electricity of the country comes from natural gas (discussed in chapter 2). So
the total saving of CO2 can be compared with the CO2 emission from the natural gas power
plant.
According to BP World Energy (2005) the total electricity production in Bangladesh was
21.57 TWh in the year 2004. (http://www.iaea.org/inisnkm/nkm/aws/eedrb/data/BD-elp.html
date: 06.08.2007)
According to US DOE 2005 the total energy related CO2 emission was 35.67 million ton in
the year 2003 in Bangladesh. (http://www.iaea.org/inisnkm/nkm/aws/eedrb/data/BDenem.html,
date:06.08.2007)
According to US DOE (2005) the fraction of CO2 emission from natural gas was 60.9% of
the total energy related emission.
(http://www.iaea.org/inisnkm/nkm/aws/eedrb/data/BD-enemgas.html, date: 06.08.2007)
Out of the total energy related consumption of natural gas, power sector consumes about
48.12% (calculated from figure 2.1 of this report).
So total emission from natural gas involved in electricity production is 35.67 X 60.9% X
48.12% which is equal to 10.45 million ton of CO2.
Hence the CO2 emission from natural gas electricity in the country is 10.45 Mt of CO2/(21.57
TWhX85.5%) which is equivalent to 0.57 ton of CO2 per MWh.
92

Appendix 6.4
Detail result of Scenario I (producing electricity for 5 hours during country peak):
No. of Birds Products for revenue earning NPV (BDT) IRR
(%)
500
1000
2000
3000
4000
5000
6000
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
93
Pay back
period (Years)
-64000 - -
-58626 - -
-22605 2.58 36.94
-17231 3.83 30.74
-72621 - -
-61873 - -
10168 9.69 9.63
20917 11.47 8.42
-100015 - 84.65
-78518 1.01 49.95
65564 13.92 7.28
87061 15.85 6.57
-82442 2.64 37.74
-50198 4.74 28.02
165926 18.88 4.41
198171 20.97 4.05
-128398 1.77 43.67
-85406 3.85 31.27
202760 17.93 4.55
245752 20.00 4.18
-135827 2.62 37.73
-82086 4.74 27.93
278121 19.10 4.35
331862 21.22 3.99
-154364 2.83 36.47
-89876 4.97 27.13
342373 19.52 4.28
406862 21.67 3.93

Appendix 6.4 (Contd…)
Detail result of Scenario I (producing electricity for 5 hours during country peak):
No. of Birds Products for revenue earning NPV (BDT) IRR
(%)
7000
8000
9000
10000
15000
20000
50000
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
94
Pay back
period (Years)
-199316 2.34 39.54
-124079 4.48 28.88
380211 18.89 4.37
455448 21.01 4.02
-206744 2.80 36.63
-120759 4.94 27.21
455572 19.53 4.27
541557 21.67 3.93
-225282 2.91 35.92
-128549 5.09 26.77
519824 19.76 4.23
616557 21.92 3.89
-270234 2.58 38.04
-162753 4.73 27.99
557662 19.29 4.30
665143 21.44 3.95
-367117 2.98 35.49
-205896 5.20 26.48
874726 19.95 4.2
1035948 22.13 3.86
-560038 2.36 39.41
-345076 4.52 28.71
1095753 19.13 4.32
1310715 21.29 3.96
-1277215 2.80 36.67
-739809 4.96 27.15
2862262 19.73 4.22
3399668 21.90 3.88

Appendix 6.5
Detail result of Scenario II (producing electricity for 12 hours a day):
No. of Birds Products for revenue earning NPV (BDT) IRR (%) Pay back
period(Years)
500
1000
2000
3000
4000
5000
6000
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
95
-56812 - -
-51438 - -
-15417 3.92 30.73
-10043 5.35 25.89
-73413 - -
-62665 - -
9377 9.56 12.49
8.51
20125 11.33
-50256 3.28 33.99
-28760 5.30 26.16
115323 18.91 4.40
136820 20.91 4.05
-42740 5.18 26.57
-10496 7.33 21.29
205629 21.60 3.97
237873 23.70 3.68
-86220 3.81 31.45
-43228 5.89 24.46
244938 19.97 4.19
287931 22.04 3.87
-83185 4.70 28.09
-29444 6.83 22.27
330763 21.18 4.00
384503 23.29 3.71
-57167 6.03 24.17
7321 8.27 17.69
439570 23.08 3.76
504059 25.27 3.49

Appendix 6.5 (Contd…)
Detail result of Scenario II (producing electricity for 12 hours a day):
No. of Birds Products for revenue earning NPV (BDT) IRR (%) Pay back
period(Years)
7000
8000
9000
10000
15000
20000
50000
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
Electricity
Electricity + CO2
Electricity + Fertilizer
Electricity + Fertilizer + CO2
96
-53343 6.43 23.25
21894 8.67 14.01
526184 23.65 3.70
601421 25.85 3.43
-68490 6.23 23.7
17495 8.48 16.59
593826 23.39 3.72
679811 25.58 3.45
-63252 6.55 22.98
33481 8.79 13.73
681854 23.85 3.67
778587 26.06 3.40
-70467 6.54 22.99
37015 8.79 13.74
757429 23.87 3.67
864910 26.09 3.40
-42953 7.41 21.15
118269 9.71 12.07
1198890 25.09 3.53
1360112 27.36 3.27
-181933 6.09 24.03
33029 8.37 17.11
1473858 23.44 3.71
1688820 25.66 3.44
-250781 6.93 22.08
286625 9.24 12.83
3888696 24.55 3.58
4426102 26.8 3.33

IRR (%)
IRR (%)
28
24
20
16
12
8
4
0
32
28
24
20
16
12
8
4
0
Appendix 6.6
Sensitivity Analysis
Effect of Variation of Investment cost by ±20%
Variation of IRR at different investment cost (Scenario I)
-20% 0% 20%
% variation on investment cost (10000 birds)
Variation of IRR at different investment cost (Scenario II)
-20% 0% 20%
% variation on investment cost (4000 birds)
97
E
E+C
E+F
E+F+C
E
E+C
E+F
E+F+C

IRR (%)
IRR (%)
36
32
28
24
20
16
12
8
4
0
36
32
28
24
20
16
12
8
4
0
Variation of IRR at different investment cost (Scenario II)
-20% 0% 20%
% variation on investment cost (6000 birds)
Variation of IRR at different investment cost (Scenario II)
-20% 0% 20%
% variation on investment cost (10000 birds)
98
E
E+C
E+F
E+F+C
E
E+C
E+F
E+F+C

NPV (BDT)
NPV (BDT)
1200000
1000000
800000
600000
400000
200000
0
-200000
350000
300000
250000
200000
150000
100000
50000
0
-50000
-100000
Effect of Variation of Discount Rate
Variation of NPV at different discount factor (Scenario II)
8% 6% 4%
Discount Factor (6000 Birds)
Variation of NPV at different discount factor (Scenario II)
8% 6% 4%
Discount Factor (2000 Birds)
99
E
E+C
E+F
E+F+C
E
E+C
E+F
E+F+C

DECLARATION
I hereby certify that this thesis was independently written by me. No material was used other
than that referred to. Sources directly quoted and ideas used, including figures, tables,
sketches, drawings and photos, have been correctly denoted. Those not otherwise indicated
belong to the author.
Place, date: Signature
Sheikh Ashraf Uz Zaman, SESAM 2007, University of Flensburg 100