Unlocking Credit to Promote the use of Commercial Biogas in the Poultry Industry

There have been many successful biogas installations in the domestic sector in Nepal, but only limited experience of the application of biogas technology in commercial enterprises such as poultry farming, animal husbandry or hotels.

However, the poultry industry in Chitwan and Kathmandu has shown an interest in biogas technologies adapted to the specific technical need of using poultry waste as a substrate for generating biogas. Using the waste to generate biogas could address two major problems faced by the poultry sector; on the one hand, the odours and health risks leading to local social resistance to poultry farms could be reduced and, on the other hand, the high energy costs could be lowered.

Currently, poultry farms often rely on diesel generators to meet their energy needs due to the unreliable supply of grid electricity. However, despite the perceived advantages, the implementation and upscaling of biogas technology in the commercial sector in Nepal faces several barriers. These include high investment costs, lack of credit from financial institutions, lack of confidence in the technology with no successful demonstration in Nepal and inadequate information about the application of the technology and its potential benefits for poultry farm owners.

To help overcome these challenges, this project, implemented by Winrock in collaboration with the Alternative Energy Promotion Centre (AEPC) and the NMB Bank, aims to demonstrate the viability of an innovative business model using credit financing, grants and equity for promoting commercial biogas use in the poultry industry in Nepal.

The specific objectives of the project are:

• To increase the confidence of poultry farm entrepreneurs in biogas technology through demonstration
• To increase access to reliable energy supply for productive use in the poultry industry
• To develop loan products for commercial biogas
• To disseminate evidence and promote the upscaling of this business model.

In a first step this project plans to conduct a baseline assessment, followed by a detailed feasibility study of one selected poultry farm. Based on the findings, capacity-building activities for the poultry sector will be put in place. Furthermore, suitable loan products for commercial biogas applications will be developed in cooperation with the NMB bank and to demonstrate the viability of biogas applications in the poultry sector a biogas pilot plant will be installed on a selected poultry farm.

To share the findings, knowledge products will be developed and a workshop at national level will be arranged to influence key stakeholders and policymakers to promote the widespread use of biogas technology and to scale up the business model.