Ivak Bio-Fuels

Detailed Project Report: 5 TPD Bio-CNG Plant by Ivak

Bio Fuels

Executive Summary
This Detailed Project Report outlines the setup of a 5 TPD Bio-CNG plant by Ivak Bio Fuels in
India using Napier grass as feedstock, with a total budget capped at ₹10 Cr. The plant aims to
sell Bio-CNG to oil marketing companies at ₹65/kg, with provisions for slurry management and
water reuse for sustainability. The report includes feedstock analysis, process flow, machinery,
infrastructure, manpower, costs (including all hidden costs), ROI, breakeven, IRR, and
sustainability metrics, based on 2025 Indian market conditions.

1. Feedstock Analysis
1.1 Quantity of Napier Grass Required

●​ Daily Requirement: 50 tons/day, assuming 100 kg Bio-CNG per ton of feedstock (based
on 20-30% total solids, 85-90% volatile solids).
●​ Annual Requirement: 50 tons/day × 330 operational days = 16,500 tons/year.

1.2 Procurement Plan

●​ Source: Local farmers within 50 km, contracted for Napier grass cultivation for Ivak Bio
Fuels.
●​ Cultivation Model: Engage 50-60 farmers, each cultivating 5-6 acres (yield: ~25
tons/acre/year, 4-5 harvests).
●​ Logistics:
○​ Daily collection via 2 leased trucks (10-ton capacity, 3 trips/day).
○​ Farmer contracts with fixed pricing and seasonal commitments.
●​ Storage: On-site storage for 100 tons (2 days) to buffer disruptions.

1.3 Cost per Ton

●​ Farmgate Price: ₹1,500/ton (2025 market rate).

●​ Transportation Cost: ₹300/ton (50 km, ₹6/km/ton).
●​ Total Cost per Ton: ₹1,800/ton.
 ●​ Annual Feedstock Cost: 16,500 tons × ₹1,800 = ₹2.97 Cr/year.

1.4 Seasonal Variation Risks

●​ Risks:
○​ Monsoon (June-Sept): 10-15% yield reduction due to waterlogging.
○​ Dry season (Mar-May): Irrigation costs may increase.
●​ Mitigation:
○​ Diversify sourcing across agro-climatic zones.
○​ Maintain 2-week buffer stock during monsoon.
○​ Support farmers with drip irrigation advice.

2. Technology and Process Flow

2.1 Process Flow

1.​ Napier Grass Shredding:

○​ Input: 50 tons/day.
○​ Process: Shred to 2-5 cm pieces for digestion.
○​ Equipment: Industrial shredder (50 TPD).
2.​ Anaerobic Digestion:
○​ Input: Shredded grass + water (1:1).
○​ Process: Continuous stirred tank reactor (CSTR), 35-40°C, 20-30 days,
producing raw biogas (55-65% CH₄, 35-44% CO₂, H₂S traces).
○​ Output: ~12,500 m³/day raw biogas (250 m³/ton).
3.​ Biogas Purification:
○​ Process: H₂S removal (iron oxide filters), water scrubbing for CO₂ reduction.
○​ Output: Biogas with ~90% CH₄.
4.​ CO₂ Removal:
○​ Process: Pressure swing adsorption (PSA) for >96% CH₄ purity (IS 16087:2016).
○​ By-product: CO₂ (sold or vented).
5.​ Compression:
○​ Process: Compress to 250 bar.
○​ Output: 5,000 kg/day Bio-CNG.
6.​ Bottling:
○​ Process: Fill into cascades for transport.
○​ Equipment: Automated bottling unit (5 TPD).

2.2 Process Flow Diagram

Napier Grass → Shredder → CSTR Digester → Biogas (CH₄, CO₂, H₂S) → H₂S Scrubber →

Water Scrubber → PSA (CO₂ Removal) → Compressor → Bio-CNG → Bottling → Cascades

3. Machinery and Equipment
3.1 Equipment List and Cost (2025 Prices)

Equipment Quantity Unit Cost (₹) Total Cost (₹ Cr)

Industrial Shredder (50 TPD) 1 50,00,000 0.50

CSTR Digester (1,500 m³) 2 1,50,00,000 3.00

H₂S Scrubber (Iron Oxide) 1 25,00,000 0.25

Water Scrubber 1 30,00,000 0.30

PSA Unit (CO₂ Removal) 1 75,00,000 0.75

Multi-stage Compressor (250 1 1,00,00,000 1.00

bar)

Bottling Unit (5 TPD) 1 50,00,000 0.50

Gas Analyzer (Quality Control) 1 15,00,000 0.15

Storage Cascades (500 kg) 10 5,00,000 0.50

Total 6.95 Cr
4. Civil and Infrastructure
4.1 Construction Area

●​ Total Area: 20,000 sq ft (0.46 acres).

○​ Digester and processing: 10,000 sq ft.
○​ Storage and feedstock handling: 5,000 sq ft.
○​ Control room and office: 2,000 sq ft.
○​ Drainage and slurry management: 3,000 sq ft.

4.2 Civil Work Cost

Item Quantity Unit Cost (₹) Total Cost (₹ Cr)

Land Preparation (Grading, Leveling) 20,000 sq ft 100/sq ft 0.20

Digester Tank (RCC, 1,500 m³ × 2) 2 50,00,000 1.00

Flooring (Concrete, Industrial) 15,000 sq ft 200/sq ft 0.30

Control Room (2,000 sq ft) 1 1,500/sq ft 0.30

Drainage System 3,000 sq ft 150/sq ft 0.045

Fencing (Perimeter, 600 m) 1 500/m 0.03

Total 1.875 Cr

5. Manpower
5.1 Staffing Plan
 Role Number Monthly Salary (₹) Total Monthly Cost (₹)

Plant Manager 1 80,000 80,000

Process Engineers 2 50,000 1,00,000

Operators (Skilled) 6 25,000 1,50,000

Maintenance Technicians 2 30,000 60,000

Logistics Staff (Drivers, Loaders) 4 20,000 80,000

Quality Control Analyst 1 40,000 40,000

Security Guards 2 15,000 30,000

Administrative Staff 1 25,000 25,000

Total 19 4,65,000

●​ ​
Annual Manpower Cost: ₹4,65,000 × 12 = ₹0.558 Cr.

6. Utilities and Recurring Costs

6.1 Annual Utility Costs
 Item Annual Cost (₹ Description
Cr)

Water 0.10 1,000 m³/month for digestion and

scrubbing

Electricity 0.15 50 kW × 12 hr/day × 330 days @

₹8/kWh

Diesel 0.05 For trucks and backup DG set

Maintenance 0.20 3% of machinery cost + civil

maintenance

Insurance 0.05 Plant and equipment coverage

AMC (Annual Maintenance 0.10 For compressor, PSA, etc.

Contract)

Total 0.60 Cr

7. Hidden/Ignored Costs
All hidden costs are explicitly accounted for to ensure comprehensive budgeting.

Item Cost (₹ Cr) Description

Land Preparation 0.20 Included in civil work (grading, leveling)

Borewell Installation 0.05 For water supply

Transformer Installation 0.10 For stable power supply

Licensing & Approvals 0.05 Pollution Control Board, local bodies

Pollution Control Board Approvals 0.02 Environmental clearances

Local Body Permissions 0.02 Municipal/panchayat approvals

Fire Safety Compliance 0.03 Extinguishers, sprinklers, alarms

DG Backup (100 kVA) 0.15 For power outages

Fencing 0.03 Included in civil work (600 m perimeter)

Site Security Systems 0.02 CCTV, alarms

Legal Expenses 0.02 Contracts, compliance

Total 0.59 Cr

8. CAPEX vs OPEX Breakdown

Category Item Cost (₹ Cr)

CAPEX Machinery & Equipment 6.95

Civil & Infrastructure 1.875

Hidden Costs (Borewell, Transformer, Licensing, etc.) 0.59

Total CAPEX 9.415

OPEX Feedstock (16,500 tons × ₹1,800) 2.97

Manpower 0.558

Utilities & Recurring Costs 0.60

Total OPEX 4.128

●​ ​
Total Project Cost: ₹9.415 Cr (within ₹10 Cr budget).
●​ Annual OPEX: ₹4.128 Cr.

9. ROI Projection
9.1 Assumptions

●​ Bio-CNG Yield: 100 kg/ton of Napier grass.

●​ Annual Production: 5 TPD × 330 days = 1,650 tons/year.
●​ Selling Price: ₹65/kg to oil marketing companies.
●​ By-product Revenue: Slurry sold as organic manure at ₹2,000/ton, 10 tons/day (3,300
tons/year).

9.2 Revenue Projections

 ●​ Bio-CNG Revenue: 1,650,000 kg × ₹65 = ₹10.725 Cr/year.
●​ Slurry Revenue: 3,300 tons × ₹2,000 = ₹0.66 Cr/year.
●​ Total Revenue: ₹10.725 + ₹0.66 = ₹11.385 Cr/year.

9.3 Profit and Payback

●​ Annual Profit: ₹11.385 Cr - ₹8.256 Cr = ₹3.563 Cr.

●​ Payback Period: ₹9.415 Cr ÷ ₹3.563 Cr = 32.6 months.
●​ Breakeven: ~33 months, assuming consistent production and sales.