Building a biogas industry
The main obstacle is not technology. “We have long been well versed in the technology for biogas power generation, but the business model used in Taiwan was not yet up to speed,” says Li Chih-chieh, manager of the Agricultural Energy Technology Development Department at the Central Region Campus of the Industrial Technology Research Institute (ITRI). In line with the government’s energy transition policies, in 2016 ITRI began guiding private-sector enterprises to expand biogas power generation.
However, Li observes that there had been little investment in biogas power projects in Taiwan and there were few equipment dealers. These factors drove up equipment installation costs and made maintenance more difficult. The solution to this chicken-and-egg problem was to build an industry around biogas power generation.
Fortunately, although at that time Taiwan had no businesses specializing in biogas power generation, there were a number of industries with potential to branch out into biogas. “For example, companies that built diesel generators could use the same generator head, but a different fuel [i.e., biogas], thereby developing another line of business. Boiler vendors that specialized in steam generation for the food industry could also use their combustion technology for biogas power generation,” says Li.
On his own initiative, Li began to play the role of facilitator and matchmaker, visiting private-sector firms to advocate for biogas power generation, until finally he got businesses in fields such as power generators, boilers, gas treatment, and wastewater treatment to expand their operations, so that step by step an industrial ecosystem took shape. Today there are about 40 domestic vendors in the field of biogas power generation, which Li jocularly calls “Team Taiwan.”
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