BIOGAS PRODUCTION AND PACKAGING

Biogas is a good substitute for the conventional gas. It is a renewable fuel that doesn’t pollute the
environment. This renewable energy can be used for heating, electricity, and many other operations that use a
reciprocating internal combustion engine.
Starting a biogas production company is capital intensive and it also requires serious planning and hard work
but the fact remains that it is indeed a profitable business to go into and it is still very much open for more
investors to come in. Below is my biogas production business plan that will help me successfully launch my
own business.

The Bioto Biogas Production Business Plan

1. Industry Overview
Biogas is the combination of gases produced by the breakdown of organic matter in the absence of oxygen.
Biogas can be produced from raw materials such as
I. Agricultural waste,
II. Manure or animal waste,
III. Municipal waste,
IV. Plant material,
V. Sewage,
VI. Green waste or food waste.

Biogas is a renewable energy source. Compressed biogas is becoming widely used in Sweden, Switzerland,
and Germany.
Biogas can be used for electricity production, in a CHP gas engine, where the waste heat from the engine is
conveniently used for heating the digester; cooking; space heating; water heating; and process heating. If
compressed , it can replace compressed natural gas for use in vehicles, where it can fuel an internal
combustion engine or fuel cells and it is a much more effective displacer of carbon dioxide than the normal use
in on-site CHP plants.
Biogas production business is a subset of the Biomass Power industry and businesses in this industry operate
electricity – generating facilities using biomass (e.g. agricultural byproducts, landfill gas and biogenic municipal
waste). Establishments engaged in operating trash disposal incinerators that also generate electricity are
classified in the Waste Treatment and Disposal Services industry.
The Biomass Power industry is a thriving sector of the economy of countries like Germany, Japan, China,
South Korea, France, The United Kingdom and the united states of America. In the U.S., the industry
generates over $908 million annually from more than 122 registered and licensed biotechnology companies
(biogas production companies inclusive.
The industry is responsible for the employment of over 2,397 people. Experts project the Biomass Power
industry to grow at a 0.9 percent annual rate between 2023 and 2026.
A recent report published by Grand View Research shows that the Global Biomass Power industry market size
is valued at 121,340 million USD in 2021 and is projected to exhibit a compound annual growth rate (CAGR)
of 6% from 2022 to 2030. The industry’s expansion can be propelled in part by renewable energy tax credits
that can encourage the use of biomass power.
Furthermore, the majority of states have enacted renewable portfolio standards (RPSs), which require local
utilities to generate electricity from renewable power as a percentage of their total energy portfolio, Increased
in campaigning for green technology which also influences the industry performance by sparking interest in
technologies that replace pollutant-generating energy sources.
 BIOGAS PRODUCTION AND PACKAGING
Some of the factors that encourage me to start a biogas production business is the fact that the market for gas
is growing rapidly in Uganda and East Africa and then Biogas production is not seasonal. That makes it easier
for people who are interested in the business to come into the industry at any time they desire; the entry
barriers might be high but any serious capable and minded entrepreneur can comfortably raise the startup
capital even if it means collecting loans from the bank.
The Biomass Power industry is a green and highly profitable industry and it is open for entrepreneurs to come
in; one can choose to start on a small scale by producing and supplying at a community level but I suggest
with proper funding can start on a large scale with distribution networks spread across key cities and towns all
around the Uganda .

2. Executive Summary
Bioto Gas® Biogas Production Company, will be a biogas production company that will be involved in the
production and distribution of biogas to retailers, industries, and households, production and distribution of
biogas biodigesters to communities, production and distribution of biogas stoves, biodigesters construction
and installation to schools and other public places like universities. We shall be able to lease production
facilities that will be perfectly fit and the facilities will be located near the major market cities and towns .
Bioto Gas® Biogas Production Company, will produce and supply biogas and other biofuels to end users at
affordable cheap prices compared to the liquefied petroleum gas that is imported .
There will be a growing interest in biomass power especially biogas and new enterprises will spring up, which
is why we spent time and resources to conduct our feasibility studies and market survey so as to offer much
more than our competitors will be offering. We shall have robust distribution network; strong online presence
and our distributors will be armed with the various payments of options available in Uganda.
Beyond the distribution and supply of biogas, our customer care is going to be second to none in the whole of
the country and our deliveries will be timely and highly reliable. We know that our customers will be the
reason why we shall strive in business which is why we will go the extra mile to get them satisfied when they
patronize our products.
Bioto Gas® Biogas Production Company will ensure that all our customers are given first class treatment
whenever they order biogas ,biofuel and other products from us. We shall have a CRM software that will
enable us manage a one on one relationship with our customers no matter how large our customer base and
distribution network may grow to.
Bioto Gas® Biogas Production Company will at all times demonstrate her commitment to sustainability, both
individually and as a firm, by actively participating in our communities and integrating sustainable business
practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by
meeting our client’s needs precisely and completely.
3. Our Products and Services
Bioto Gas® Biogas Production Company will be in the Biomass Power industry and we will be involved in the
production and distribution of quality and safe biogas and other biofuel products. We shall be in the Biomass
Power industry to make profits and we will ensure that we do all that is permitted by the laws in Uganda to
achieve our business aim and objectives.
4. Our Mission and Vision Statement

 Our vision is to be listed amongst the top biogas production companies in the whole of the East Africa
and Africa at large.
 Our mission is to establish a biogas production plant and supply business that will distribute quality and
safe biogas at affordable prices to retailers, and industries in Uganda and other cities in and around the
East African community where we intend marketing our biogas and other biofuel.
 BIOGAS PRODUCTION AND PACKAGING
Our Business Structure
Bioto Gas® Biogas Production Company, does not intend to compete at the local level; our intention of starting
a biogas production company is to build a standard company in Uganda. We will ensure that we put the right
structures in place that will support the kind of growth that we have in mind while setting up the business.
We want to put modalities in place that will guide us in hiring people that are qualified, honest, customer
centric and are ready to work to help us build a prosperous business that will benefit all the stake holders. As a
matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will
be based on their performance for a period of specific years or more.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions that
will be made available at Bioto Gas® Biogas Production Company.

 Chief Executive Officer (Owner)

 Production Manager
 Human Resources and Amin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Accountants / Cashiers
 Customer Services Executive
 Drivers / Distributors

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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

and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities;
planning, monitoring, and appraising job results;
 Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e.
leading the development and implementation of the overall organization’s strategy.
 Responsible for fixing prices and signing business deals
 Responsible for providing direction for the business
 Responsible for signing checks and documents on behalf of the company
 Evaluates the success of the organization
 Reports to the board

Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative tasks for the organization
 Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
 Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
 Defines job positions for recruitment and managing interviewing process
 Carries out induction for new team members
 Accountable for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities.

Production Plant Manager

 Responsible for overseeing the smooth running of the biogas production plant
 Part of the team that determines the quantity and quality of biogas and biofuels that are to be produced
 Maps out strategies that will lead to efficiency amongst workers in the plant
 BIOGAS PRODUCTION AND PACKAGING
 Responsible for training, evaluation and assessment of plant workers
 Ensures the steady flow of raw materials to the plant and easy flow of finished products through
wholesale distributors to the market
 Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
 Ensures that the plant meets expected safety and health standard at all times.
 Responsible for using space and mechanical handling equipment efficiently and making sure quality,
budgetary targets and environmental objectives are met
 In charge of using and coordinating automated and computerized systems where necessary
 Accountable for producing regular reports and statistics on a daily, weekly and monthly basis
 Ensures that proper records of biogas and other biofuel products are kept and warehouse does not run
out of products
 Controls biogas supply inventory
 Supervises the workforce in the production floor.

Merchandize Manager

 Manages vendor relations, market visits, and the ongoing education and development of the
organizations’ buying teams
 Responsible for the purchase of biogas and other biofuel products for the organizations
 Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones
 Models demographic information and analyze the volumes of transactional data generated by customer
purchases
 Identifies, prioritizes, and reaches out to new partners, and business opportunities .
 Identifies development opportunities; follows up on development leads and contacts
 Responsible for supervising implementation, advocate for the customer’s needs, and communicate with
clients
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Accountant/Cashier:

 Responsible for preparing financial reports, budgets, and financial statements for the organization
 Provides managements with financial analyses, development budgets, and accounting reports
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial reporting
 Responsible for developing and managing financial systems and policies
 Responsible for administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Client Service Executive

 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a
personalized customer service experience of the highest level
 Through interaction with customers on the phone, uses every opportunity to build client’s interest in the
company’s products and services
 BIOGAS PRODUCTION AND PACKAGING
 Manages administrative duties assigned by the human resources and admin manager in an effective and
timely manner
 Consistently stays abreast of any new information on the organizations’ products, promotional campaigns
etc. to ensure accurate and helpful information are supplied to customers when they make enquiries.

Distribution Truck Drivers

 Assists in loading and unloading biogas and other biofuel products

 Maintains a logbook of their driving activities to ensure compliance with state regulations governing the
rest and work periods for operators.
 Keeps a record of vehicle inspections and make sure the trucks are equipped with safety equipment
 Assists the transport and logistics manager in planning their route according to a distribution schedule.
 Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
 Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods
etc.) as well as with company policies and procedures
 Reports defects, accidents or violations

6. SWOT Analysis
Our goal of starting out in Uganda is to test run the business for a period of 1 to 2 years to know if we will
invest more money, expand the business and then start our biogas production and supply all around Uganda
and East Africa.
We are quite aware that there are some biogas production companies and contractors in Uganda and even in
the same location where we intend locating ours, which is why we are following the due process of
establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our
business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks
and be equipped to confront our threats.
Bioto Gas® Biogas Production Company, will employ the services of an expert HR and Business Analyst with
bias in retailing and distribution to help us conduct a thorough SWOT analysis and to help us create
a Business model that will help us achieve our business goals and objectives. This is the summary of the
SWOT analysis that was conducted for Bioto Gas® Biogas Production Company, Inc.;

 Strength:

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

 Weakness:

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

 Opportunities:

Regional public utility commissions regulate retail electricity prices. Biomass power plants that may be
controlled by regulated utility companies are subject to regulated retail prices. Industry operators that
successfully petition for rate hikes benefit from increased revenue and profitability, while companies that are
 BIOGAS PRODUCTION AND PACKAGING
unable to obtain favorable rulings will have difficulty operating in the industry. In 2023, the price of electric
power is expected to increase, representing a potential opportunity for the industry.

 Threat:

Tax credits make biomass-power projects more affordable for biomass-power generation enterprises to
execute. With cost savings, operators can more effectively compete based on the price of electricity with other
types of energy-generation technologies. With the expiration of the production tax credit and no renewal
planned in 2023, the net value of tax credits directed at biomass power generation are expected to decrease,
representing a potential threat to the industry.

7. MARKET ANALYSIS
 Market Trends

In recent time, particularly in the uganda, the awareness and use of biogas is rapidly increasing because it has
been proven to be environmentally friendly and cheap and efficient when used in homes and any machine that
runs on gas. It has lower to zero emission compared to the liquefied natural gas.
Strong growth in the current period is expected to continue, technological advancements will spurr demand
from downstream industries and the industry will develope new revenue streams from outsourced research
and other related bio products. Please note that external factors such as global research and development
funding and global investor confidence in the Biomass Power industry will impact industry performance.
Many investors will soon go into the production of biogas because it has been proven to be a better substitute
for gas and that is why it will be produced in commercial quantities in East Africa thereby reducing the
importation and dependence on natural gas.
8. Our Target Market
The Biomass Power industry has a wide range of customers; a good number of manufacturing companies and
owners of gas – powered machines make use of biogas and other biofuel products.
In view of that, we shall position our biogas production company to service businesses in uganda and every
other location we will cover in East Africa. We have conducted our market research and we have ideas of
what our target market would be expecting from us. We are in business to retail (distribute) biogas and other
biofuel products to the following businesses;

 Manufacturing companies
 Power plants that run on gas and as well as biogas
 Households
 Facility managers that make use of biogas

Our competitive advantage

Bioto Gas® Biogas Production Company is launching a standard biogas production company that will indeed
become the preferred choice for gas production– powered machine owners and biogas distributors in cities
around Uganda.
Our competitive advantage revolves around our ability to attract local support and patronage, easy compliance
with government regulations, ability to quickly adopt new technology, ability to raise financing and our ability to
educate the wider community on the need to switch to green energy.
One thing is certain; we will ensure that we have biogas and other biofuel products available in our distribution
network at all times. One of our business goals is to make Bioto Gas® Biogas Production Company, a one
 BIOGAS PRODUCTION AND PACKAGING
stop biogas production company. Our excellent customer service culture, timely and reliable delivery services,
online presence, and various payment options will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our
category in the industry meaning that they will be more than willing to build the business with us and help
deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and
commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY

 Sources of Income

Bioto Gas® Biogas Production Company, will generate income by producing and supplying biogas and other
biofuel products within the scope of the Biomass Power industry in Uganda.
10. Sales Forecast
One thing is certain, when it comes to biogas production, if your business is centrally positioned coupled with
effective and reliable tankers/trucks and distribution network, you will always attract customers cum sales and
that will sure translate to increase in revenue generation for the business.
Bioto Gas® Biogas Production Company, will be well positioned to take on the available market in Uganda
and we are quite optimistic that we will meet our set target of generating enough income/profits from the first
six months of operation and grow the business and our clientele base.
We have been able to examine the Biomass Power industry, we have analyzed our chances in the industry
and we have been able to come up with the following sales forecast. The sales projections are based on
information gathered on the field and some assumptions that are peculiar to startups in Uganda.
Below are the sales projections for Bioto Gas® Biogas Production Company, it is based on the location of our
business, and other factors as it relates to biogas and other biofuel products start – ups in the Uganda ;

 First Fiscal Year: $335,000

 Second Fiscal Year: $650,000
 Third Fiscal Year: $1.1 million

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

 Marketing Strategy and Sales Strategy

Before choosing a location to launch Bioto Gas® Biogas Production Company, we conducted a thorough
market survey and feasibility studies in order for us to penetrate the available market and become the
preferred choice for retailers of biogas and other biofuel in Uganda . We have detailed information and data
that we were able to utilize to structure our business to attract the number of customers we want to attract per
time.
We hired experts who have good understanding of the biogas production business to help us
develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the
available market in Uganda .
In summary, Bioto Gas® Biogas Production Company, will adopt the following sales and marketing approach
to win customers over;
 BIOGAS PRODUCTION AND PACKAGING
 Introduce our business by sending introductory letters alongside our brochure to biogas and other biofuel
products retailers, factories, facility managers, hotels, households and key stake holders in and around
Uganda .
 Ensure that we have a biogas and other biofuel products in our distribution network at all times.
 Make use of attractive hand bills to create awareness business
 Position our signage / flexi banners at strategic places around the major cities and routes

11. Publicity and Advertising Strategy

Even though our biogas production company is going to be well structured and well located, we will still go
ahead to intensify publicity for the business.
Bioto Gas® Biogas Production Company, has a long-term plan of opening distribution channels all around
Uganda which is why we will deliberately build our brand to be well accepted in Uganda before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to
effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise
Bioto Gas® Biogas Production Company,

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

 Encourage the use of word of mouth publicity from our loyal customers
 Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter,
LinkedIn, Snapchat, Google+ and other platforms to promote our business.
 Ensure that our we position our banners and billboards in strategic positions all around uganda
 Distribute our fliers and handbills in target areas in and around our neighborhood
 Advertise our biogas production company in our official website and employ strategies that will help us
pull traffic to the site
 Brand all our official cars and distribution vans/trucks and ensure that all our staff members and
management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

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

 Payment Options

The payment policy adopted by Bioto Gas® Biogas Production Company, is all inclusive because we are quite
aware that different customers prefer different payment options as it suits them but at the same time, we will
ensure that we abide by the financial rules and regulation of Uganda
Here are the payment options that Bioto Gas® Biogas Production Company, will make available to her clients;

 Payment via bank transfer

 Payment via credit cards/Point of Sale Machines (POS Machines)
 Payment via POS machines
 Payment via online bank transfer
 Payment via check
 Payment via bank draft
 Payment via mobile money
 Cash payment to distributors and suppliers
 BIOGAS PRODUCTION AND PACKAGING
In view of the above, we have chosen banking platforms that will enable our client make payment for biogas
and other biofuel products purchase without any stress on their part.

13. Startup Expenditure (Budget)

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

 The total fee for registering the business in the Uganda is 2,700,000 ugx.
 Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S
machines and other software) 11,880,000 ugx.
 Production Company, flyer printing (3,000 flyers at 1500 ugx per copy) for the total amount of 4,500,000
ugx.
 The cost for hiring business consultants and expert services – 9,000,000 ugx.
 The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total
premium – 8,600,000 ugx.
 The cost for payment of rent for 12 months at $1.76 per square feet tank facility cum mini depot in the
total amount of 360,000,000 ugx.
 The total cost for production facility remodeling (construction of mini depot / tank far) – $100,000.
 Other start-up expenses including stationery (1,800,000 ugx) and phone and utility deposits (7,200,000
ugx).
 Operational cost for the first 3 months (salaries of employees, payments of bills ) – 54,000,000 ugx
 The cost for Start-up inventory (stocking with biogas and other biofuel products raw materials) –
72,000,000 ugx
 The cost for store equipment (cash register, security, ventilation, signage) – 49,500,000 ugx
 The cost of purchase and installation of CCTVs – 18,000,000 ugx
 The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System,
tables and chairs) – 14,000,000 ugx.
 The cost for the purchase of distribution 2 tankers / trucks – 54,000,000 ugx
 The cost of launching a website – 2,200,000 ugx
 Miscellaneous –36,000,00 ugx

We would need an estimate of 1.06308 billion to successfully set up our biogas production company in
Uganda .
Generating Funds/Startup Capital for Bioto Gas® Biogas Production Company,
Bioto Gas® Biogas Production Company can be registered as aprivate company or a government initiative
towards clean Energy production. it does intend to welcome any external business partner who may wish to
join the investment and not restricting the sourcing of the startup capital through many sources.

 government funding through the parish modalities

 selling shares to interested individuals
 Generate part of the startup capital from personal savings
 Source for soft loans from family members and friends
 Apply for loan from the central bank

N.B: We have been able to generate about 5,000,000 ugx (Personal savings 3,500,00 ugx and soft loan from
family members 1,500,000 ugx) and we are at the final stages of obtaining a loan facility of 80,000,000 ugx
from our bank. All the papers and documents will be signed and submitted to the loan providers.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Bioto Gas® Biogas Production Company, is to ensure that we
continue to deliver quality services, improvise on how to do things faster and cheaper. We are not going to
 BIOGAS PRODUCTION AND PACKAGING
relent in providing conducive environment for our workers and also the required trainings that will help them
deliver excellent services at all times.
From our findings, another factor that kills new business is financial leakages. In order to plug financial
leakages, the management of Bioto Gas® Biogas Production Company, will adopt the use of payment
machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence
we are going to continuously engage them to give us ideas on how to serve them better.
Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and
technically sound employees, create a conducive working environment and employee benefits for all our staff
members. We know that if we implement our business strategies, we will grow our biogas production business
beyond Uganda to other states in the East Africa and Africa in a record time.
Check List/Milestone

 Business Name Availability Check: Completed

 Business Registration: Completed
 Opening of Corporate Bank Accounts: Completed
 Securing Point of Sales (POS) Machines: Completed
 Opening Mobile Money Accounts: Completed
 Opening Online Payment Platforms: Completed
 Application and Obtaining Tax Payer’s ID: In Progress
 Application for business license and permit: Completed
 Purchase of Insurance for the Business: Completed
 Leasing of mini depot facility and construction of production plant: In Progress
 Conducting Feasibility Studies: Completed
 Generating capital from family members: Completed
 Applications for Loan from the bank: In Progress
 Writing of Business Plan: Completed
 Drafting of Employee’s Handbook: Completed
 Drafting of Contract Documents and other relevant Legal Documents: In Progress
 Design of The Company’s Logo: Completed
 Printing of Promotional Materials: In Progress
 Recruitment of employees: In Progress
 Purchase of the needed machines, technology, furniture, reservoirs, computers, electronic appliances,
office appliances and CCTV: In progress
 Purchase of distribution tankers/trucks: Completed
 Creating Official Website for the Company: In Progress
 Creating Awareness for the business both online and around the community: In Progress
 Health and Safety and Fire Safety Arrangement (License): Secured
 Establishing business relationship with biogas and other biofuel products distributors all across the United
States of America: In Progresss idea

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