Cost Efficiency and Benefit Analysis of Municipal Bio-Methanation Programs in Madhya Pradesh

Abstract

Municipal bio-methanation programs in Madhya Pradesh represent innovative waste-to-energy solutions addressing environmental sustainability and resource recovery imperatives. This study examines cost efficiency and comprehensive benefit analysis of bio-methanation initiatives across urban local bodies in Madhya Pradesh. The primary objective focused on evaluating cost structures, operational efficiency, and multidimensional benefits including economic, environmental, and social returns. The methodology employed comparative cost-benefit analysis of operational plants in Indore, Bhopal, and state-level data encompassing capital expenditure, operational costs, revenue streams, and externality valuation. We hypothesized that bio-methanation programs demonstrate superior benefit-cost ratios exceeding 1.5 when accounting for environmental externalities and social benefits. Results revealed unit processing costs declining from Rs 814 per tonne for 15 TPD plants to Rs 276 per tonne for 550 TPD facilities, establishing significant economies of scale. Benefit-cost ratios ranged from 1.38 to 2.84 depending on externality inclusion, with annual net benefits of Rs 28-42 crores for large-scale facilities. Discussion emphasizes greenhouse gas mitigation valued at Rs 8.2 crores annually, employment generation of 450 jobs per 550 TPD plant, and avoided landfill costs of Rs 12 crores. This study concludes that bio-methanation programs deliver exceptional cost efficiency and comprehensive benefits, justifying public investment and policy prioritization for Madhya Pradesh municipalities.