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The Domestic Biogas System - Turning Waste into Value

Periodic Reporting for period 1 - Homebiogas (The Domestic Biogas System - Turning Waste into Value)

Reporting period: 2016-09-01 to 2016-11-30

European food service and retail businesses generate over 15 million tonnes of food and kitchen waste every year, resulting in multiple environmental impacts and estimated associated costs of more than €20 billion. Waste management carries significant costs for companies in the form of waste management fees (up to €1,400 per year for the weekly collection of 1 cubic meter of waste), while public concern on the environmental impact generated by unsustainable waste management practices is growing. Businesses are looking for alternatives to recycle and valorise their organic waste on-site. However, solutions for treating organic waste at the source that are affordable and easy to adopt are not currently available. HOMEBIOGAS LTD (HBG) produces and markets advanced affordable and easily assembled biogas systems for households. Our patented technology conveniently transforms organic waste into biogas and fertiliser, generating savings for our clients while reducing their environmental footprint. Our current HOMEBIOGAS TG1 appliance targets families and communities in the tropical and sub-tropical “developing nations” of Africa, SE Asia and Latin America. After careful evaluation of our TG1 system commercial success, customers’ feedback demanding higher capacity systems, and the successful trial of two business-to-business (B2B) systems, we recognised that there is a significant business opportunity on an advanced medium sized biogas system able to fulfil the requirements of food services and retailers.
Through the HOMEBIOGAS project, we will develop a commercial biogas system adapted to the requirements of the European climate and public, helping European businesses to reduce their carbon footprint and operating costs and create a sustainable cycle of waste disposal and clean energy for cooking and heating: HOMEBIOGAS TG6.
HOMEBIOGAS TG6 has been demonstrated at TRL6 through the successful development and commercialisation of our TG1 system and the development and trial of two different business-to-business (B2B) pilots. Before engaging in the full project development we have conducted a Feasibility Study, described in this document, to ensure the technical, commercial and financial viability of HOMEBIOGAS
Following the approval of our Phase 1 project, we have performed a 3 months feasibility study on HOMEBIOGAS TG6. The following key aspects of the project were assessed:
- Technical viability plan: We identified the required component modifications and implementations to develop the commercial version of HOMEBIOGAS TG6, on the basis of our TG1 system and B2B pilots. We also planned the technical requirements (equipment selection, software design, bacteria mix) and defined a work plan to bring HOMEBIOGAS TG6 into the market (TRL9). Additionally, we identified the expert subcontractors and suppliers needed to perform specific tasks: materials manufacturers/suppliers, local service companies to install the pilot systems, safety auditors, CE marking laboratory and patentability auditors.
- Commercialisation plan: Based on the commercial success of our TG1 system, our customers’ feedback demanding bigger systems and the outcome of our B2B pilot trials, we understood that there is a bigger business opportunity in a B2B biogas system rather than in an upgraded version of our household systems. We therefore identified the target end users of such a system (food services and retailers), its markets and potential competitors and defined our commercialisation and exploitation strategy. Additionally we performed a patent search to ensure our Freedom to Operate (F.T.O.) defined our IPR protection strategy and developed a regulatory analysis to identify the legal requirements of HOMEBIOGAS TG6.
- Financial Plan: We estimated the economic projections for the 5 years following the commercialisation of HOMEBIOGAS TG6 in order to evaluate the potential profit and Return of Investment (R.O.I.) derived from the HOMEBIOGAS project.
- Business Plan: A definition of the business model and a risk assessment were elaborated.
The results of the study proved HOMEBIOGAS TG6 to be technically, commercially and financially feasible and confirmed us on our decision to continue with the project and pursue the SME Instrument Phase 2 funding opportunity.
There is no system like TG6 in the market. Thanks to HOMEBIOGAS TG6, food services and retailers will be able to dispose of their bio-waste on-site, reducing their waste disposal and energy expenses in more than €5,000 per year while contributing to a more sustainable world. The feasibility study has demonstrated the technical, commercial and financial viability of HOMEBIOGAS TG6 and therefore we have decided to continue with the project. We have identified the technical and commercial tasks that need to be developed in order to successfully bring HOMEBIOGAS TG6 into the market and their most practical and coherent distribution. As the natural path after the Phase 1 project from the SME Instrument, HOMEBIOGAS considers the Phase 2 funding opportunity as the best option. We expect the accumulated revenues from HOMEBIOGAS TG6 to be over €68 million by 2023 while the total turnover by that year is estimated to be more than €106 million