Business Model Innovation as a Facilitator of Biogas Diffusion in the Taiwanese Swine Industry

Abstract: This thesis is designed to explore the use of biogas in Taiwan and identify the barriers to biogas diffusion and is conducted with a focus on the swine industry, the major actor involving in biogas production in Taiwan. The Business Model Innovation (BMI) framework is proposed in this study to overcome the barriers through facilitating key business model (BM) elements in the swine industry. The research is done through a series of literature reviews and in-depth interviews with stakeholders as well as a case study of a renewable energy company (Taiwan New Energy Co.) with new biogas BM. The barriers underlined in this study are the economical, infrastructure, and institutional barriers. The study argues that in swine farms, the root cause of these barriers to biogas diffusion is "incomplete BM" that features value proposition discrepancy between BM elements (value propositions and financials) and between stakeholders (farmers and the government) as well as weak partnership networks. The results reveal that BMI can help to address the root cause by strengthening cross-sectoral collaboration (e.g. the energy and agricultural sector) and to enhance the possibility of turning biogas into a disruptive niche to alter the current socio-technical system of high carbon and energy dependence as well as to contribute to sustainable agriculture. Policy recommendations from this study for biogas development are (1) strengthening the value proposition of biogas; (2) altering the swine farming practices inadequate for biogas production; (3) developing partnership networks between biogas stakeholders; and (4) formulating supportive agricultural policies. Researches on other biogas sources such as municipality waste are also needed for further biogas development and future waste management development in Taiwan.