Biofuel Circle Establishes 70 Biomass Banks in Three Years
Biofuel Circle has launched 70 biomass banks across India, each designed as independent micro-enterprises. These banks aim to create sustainable rural economies by connecting agricultural producers to bioenergy markets, potentially transforming local economies through biomass aggregation.
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Biofuel Circle has established 70 biomass banks over three years, each requiring an investment of approximately ₹3 crore and generating annual revenues of ₹3 to ₹4 crore. Early performance indicates that a typical unit can achieve EBITDA positivity within 12-18 months and a capital payback period of three to four years.
The first ten units are profitable, with 25 more nearing profitability. The company's focus includes building reliable supply chains for biomass and integrating with other renewables to enhance energy resilience. Notably, Biofuel Circle does not rely on carbon credits for financial viability, viewing them as additional benefits rather than core components of the business model.
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