This case won third prize in the 2019 oikos Case Writing Competition organized by oikos Foundation, Switzerland

Sistema Biobolsa: Addressing Challenges of Climate Change, Sustainable Agriculture and Waste Management in Mexico

Case Code: LDEN166
Case Length: 18 Pages
Period: 2007-2019
Pub Date: 2021
Teaching Note: Available
Price: Rs.500
Organization : Sistema Biobolsa
Industry : Energy
Countries : Mexico
Themes: Social Entrepreneurship, Social Enterprise, Socially-responsible Business Practices
Global Economic Impact of Coronavirus – Assessment and Mitigation (B)
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

The Bio-Digester System

Sistema Biobolsa’s bio-digester closely resembled natural ecosystems, which did not generate much waste. Whatever was generated became an input to another system. According to Eaton, “We take that waste and turn it into a clean, renewable energy source.”

The mission of Sistema Biobolsa was to empower farmers to manage their own resources in order to build a better future for themselves and their families. This was to be achieved through a well-designed technology and by raising awareness about the system and its benefits..

Outreach Programs

The main challenge lay in making people who had scarce resources spend a substantial amount on a product, whose benefits they were yet to witness. To enable this, the company carried out ground level, rural outreach programs..

Financing

The equipment was sold as an integrated package consisting of the necessary connections, appliances, and a biogas cookstove. The system installed for a small farm produced 1 m3 (volume of one cubic meter equal to 1000 liters) of biogas every day, and gave biogas for 2 to 4 hours. The smallest and most popular bio-digester was called BB4 and contained 4 m3 of waste storage. It cost US$ 600 and included the tubing, installation..

Installation

The head office of the company was located in Mexico City, and there were three regional offices and operations spread across 25 states in the country. A team of two technicians installed the product and the customers were trained on using the system. There was a one year guarantee on the product and a 20-year guarantee on the geomembrane. The installation was completed in 2-5 hours..

The Impact

Sistema Biobolsa believed that small, sustainable farms played a major role in bringing in economic prosperity. It involved low-income groups as consumers, distributors, and employees. It aimed to create a culture of sustainable resource management by increasing the number of systems installed. On the impact he desired to create..

Going Global

To support the farmers, the company decided to not only sell the equipment but also train rural families on using the bio-digesters to process waste into energy. The founders planned to reach millions of small farmers across the world through this system..

Looking Ahead

There was a huge potential for bio-digesters across the world. As per the Food and Agriculture Organization of the United Nations, there were more than 500 million small farms in the world , while the number of digesters was only around 10 million, showing a huge gap between supply and potential demand..

Exhibits

Exhibit I: Need for Clean Energy
Exhibit II: Social Entrepreneurship in Mexico
Exhibit III: Bio-Digesters
Exhibit IV: Sistema Biobolsa – Revenue from Sales Vs Grants
Exhibit V: Sistema Biobolsa – Revenue and Expenditure
Exhibit VI: Benefits of Biogas
Exhibit VII: Sistema Biobolsa – Characteristics
Exhibit VIII: Parts of the Biobolsa System
Exhibit IX: Loan Eligibility Criteria
Exhibit X: Sistema Biobolsa – Global Goals

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