The Indian compressed biogas (CBG) sector is growing rapidly, driven by the need for cleaner energy. This growth offers benefits like reducing natural gas imports, cutting emissions, and supporting rural livelihoods. However, building CBG plants requires careful planning, flawless execution, and a strong commitment to on-time project delivery.
This blog explores what it takes to keep CBG projects on track. We’ll cover supplier management, regulatory challenges, and digital tools like Venwiz. Learn strategies to ensure projects are completed on time and within budget. Discover how technology can transform CBG project success.
Challenges in CBG plant execution and results
| Problem | Description |
|---|---|
| Low in-house manufacturing of plant equipment | Most of the critical equipment and machinery for bio-CNG plants are predominantly sourced from international suppliers. This reliance on imports often introduces challenges such as extended lead times, higher costs due to logistics and duties, and potential delays caused by geopolitical or supply chain disruptions, making availability a significant concern for project execution. |
| Large-diameter RCC tank costs | CBG plants necessitate multiple large-diameter tanks, typically ranging from 10 to 15 meters in diameter and up to 30 meters in height. Constructed using slipform shuttering technology, these tanks—such as digester and storage tanks—are integral to operations but contribute significantly to the escalating costs of plant setup. |
| Plant locations | CBG plants are often established in remote locations, far from major cities or industrial hubs, posing significant challenges in sourcing competitive vendors. This limited accessibility can result in higher costs and delays in execution. |
| Technology evolving | CBG technology in India is still in its early stages, with the industry only beginning to scale up to large projects. Frequent changes to product specifications or designs, even after the design phase is completed, can lead to delays and increased costs, complicating project execution. |
Building a CBG plant is a major undertaking that requires significant time and resources. It typically takes 10 to 12 months to commission a plant, with costs ranging from 3 to 5 crores per TPD. To maximize returns on investment, it’s essential to speed up the plant’s commissioning and start producing and selling CBG as quickly as possible.
When we break down the capital expenditure (capex) of a CBG plant, we find that around 80% of the costs are attributed to machinery and equipment. This highlights the crucial importance of efficient procurement.
As India’s leading platform for industrial capex procurement, Venwiz can help you save up to 5% to 12% on costs and save over 300 man-hours by helping in support sourcing & assessment. Let’s explore how some of India’s top EPC companies have achieved remarkable success in their CBG projects with Venwiz.
Shaping the Future of CBG and Renewable Energy: Venwiz’s Proven Impact
Venwiz has proudly partnered with some of the most prominent EPC companies leading India’s CBG revolution. We’ve been instrumental in supporting these industry giants who are setting new benchmarks in CBG infrastructure and scaling up projects nationwide. Here are some of the interesting projects listed below:
Case Study 1: Building CBG Plant with 30% Faster Project Completion
Our client, a leading renewable energy company, is expanding its CBG plant in Rajahmundry, Andhra Pradesh. To support this growth, they sought our expertise to identify a suitable vendor for civil works.
The Scope of Work
The primary focus of the civil works involved constructing approximately 10-12 tanks using a slipform and conventional shuttering techniques and buildings. The tank specifications were as follows:
- Digester Tanks: 5 tanks, each 12 meters high and 30 meters in diameter.
- Water Tank: 1 tank (specific dimensions not provided)
- Mixing Tanks: 2 tanks, each 4.5 meters high and 12 meters in diameter.
- Buffer Tank: 1 tank (specific dimensions not provided)
- Slurry Tanks: 2 tanks, each 4.5 meters high, 16 meters in diameter, and 230 millimetres thick.
At Venwiz, we ensured all vendors met rigorous Pre-Qualification Requirements (PQR), and through seamless collaboration across departments, we delivered exceptional results:
- 30% TAT reduced from vendor discovery to mobilisation & project completion schedule
- 300+ man-hours saved for Projects & procurement team with Venwiz support in sourcing & assessment
- Up to 5% cost savings by identifying a technically superior vendor compared to the client’s previous options.
Case Study 2: Cutting Costs and Saving Time in CBG Projects
A full-stack renewable energy company was in the process of establishing a biofuel project in Rajasthan. They required civil contractors for their CBG plant with specialized technical skills and proven field experience.
Leveraging our in-house AI tools, Venwiz efficiently shortlisted five highly qualified vendors, enabling the client to achieve remarkable outcomes:
- Up to 5% cost savings realized from the next best quote with the client
- We sourced local vendors skilled in slipform shuttering technology to construct a 10–15 meter diameter RCC tank with a height of approximately 30 meters.
- Improved technical team efficiency and 300+ man hours saved through Venwiz SaaS.
Case Study 3: Efficient Transformer Procurement with 12% Cost Savings in Weeks
An EPC firm specializing in manufacturing Compressed Biogas (CBG) plants, our client needed around 30 transformers across India, with a focus on reducing turnaround times and minimizing costs.
Here’s how Venwiz contributed to the project:
- Up to 12% cost savings in the procurement process compared to the EPC’s usual methods.
- Shared 10+ quotes for the installation of 30 transformers (worth INR 500 Cr) within 2 weeks.
- Improved team efficiency, with a 60% reduction in man-hours through Venwiz SaaS tools.
Read more about The Importance of Efficient Procurement of Transformers for On-Time CBG Plant Delivery.
Venwiz: Your One-Stop Solution for Seamless CBG EPC Projects
Venwiz provides a comprehensive, tailored platform for CBG EPC projects, a one-stop solution for high-quality vendors, and a custom fit for your EPC projects. We simplify vendor sourcing and assessment to enable on-time project delivery while securing top vendors at competitive prices.
Key Benefits of Venwiz
- Enhanced Vendor Discovery: Our database of over 30,000 pre-vetted vendors helps you find the perfect match for your project needs.
- Cost Optimization: Achieve up to 5% cost savings through efficient procurement processes and competitive bidding.
- Time Efficiency: Streamlined vendor discovery and procurement processes reduce timelines, speeding up project execution.
- Man-Hour Savings: We handle vendor scouting, assessment, and quote collection, freeing up your project team’s bandwidth.
- Estimation and Bidding: Venwiz’s in-house team creates detailed cost estimates and engages relevant vendors for precise bidding.
- Vendor Finalization: We provide detailed vendor assessments, including quote evaluation and standardization, ensuring you select the best fit.
- End-to-End Project Tracking: Our platform offers digital project tracking, with financial support to vendors, ensuring seamless project completion.
By leveraging Venwiz’s digital solutions, you can streamline procurement, reduce costs, and accelerate delivery for your CBG projects.
Conclusion
India aims to establish 5,000 CBG plants to produce 15 billion metric tons of biofuel annually. This goal is driving rapid sector growth. To achieve this, your company must identify and partner with reliable vendors. Timely and cost-effective project execution is key. Venwiz has a proven track record. We’ve completed 20+ CBG projects and managed capex worth over ₹400 crore.
Our platform simplifies vendor discovery and procurement. It delivers 5%-12% cost savings and ensures on-time project delivery. By partnering with Venwiz, your team can focus on strategy. We handle procurement challenges, helping you meet sector demands efficiently.
Looking for something similar?
Book a demo or get in touch with shubham@venwiz.com to explore how Venwiz can help optimize your CBG projects and drive sustainable success.
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