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Opportunities created from farm waste

08/05/2008

cowsFuture changes to NVZ Regulations and the continual pressure on farmers to reduce the impact caused by manure and slurries is proving a growing headache to farmers.  Despite the recent consultation and the response from farmers and landowners to DEFRA , the proposed changes seem likely to go ahead.  While some farmers are able to absorb the change within their current farming operations and systems, for others they will be forced to make changes.  Such changes are viewed by many farmers as the Government interfering and in doing so creating a threat to their business, but despite this there are many opportunities presented.   

The opportunities which may arise will depend upon the individual farming system and scale but there are real and practical opportunities to use farm waste for energy production.  Anaerobic digestion to create heat and electricity, and other bio-energy technologies allows farms to use their farm waste in a variety of forms.   

In support of this, DEFRA launched Round 4 of the Bio-energy Capital Grant Scheme,  although it will close to new applicants on 20 May 2008.  The scheme is part of the Environmental Transformation Fund which is a new initiative to bring forward the development of new low carbon energy and energy efficient technologies in the UK.  The fund formally began in April 2008 and is jointly administered by DEFRA and the Department for Business Enterprise and Regulatory Reform (BERR).

Round 4 funds cover installations for bio-mass funded heat boilers and bio-mass fuel combined heat and power (CHP) equipment, including anaerobic digesters for heat only or CHP.  The scheme is open to business individuals, commercial and community sectors such as farmers, housing associations and schools.  It should be noted however that the scheme is not available for individuals or households.

There is a varying rate of grant of up to 40% of the capital costs with a maximum allowance of £100,000 per installation.  The current scheme closes on 20 May 2008 and despite this round being relatively short the scheme is due to reopen in the Autumn with further rounds in 2009 and 2010.  The presence of up to 40% funding makes the installation of anaerobic digesters more appealing and something that should be seriously considered by farmers.

Inevitably for some farmers, the investment in such a capital scheme will not be cost effective or applicable.  However, for many the opportunities are real and represent an alternative dealing with farm waste and slurry.  Systems can be designed to operate at a variety of scales with the end product being used to meet the energy demands of the individual farm, or at a larger scale, for providing heat and power for a new housing development.  For larger scale development, the opportunity from involvement

by smaller farms who would not otherwise be able to participate in such schemes represents an opportunity for them to dispose of their farm waste without having made the capital investment.

As with many schemes such as this, location is critical and distance between the source of supply and demand will greatly determine the viability of such a scheme.  Slurry and farm waste by its nature is bulky and expensive to transport and as such, the sitting of the plant needs careful consideration.  Supply to a plant also requires careful management to ensure that an even and consistent supply is maintained to maximise the efficiency of the plant.   Such management can be complicated by the presence of several smaller suppliers.  However, with estate systems, these can easily be overcome.  The use of an anaerobic digester represents an opportunity to farmers to help meet the continual changes and tightening of NVZ regulations.  The presence of a capital grant of up to 40% makes such schemes more inviting and appealing.   Whilst it is acknowledged that smaller farmers may not be in a position to invest in such a scheme despite the presence of the grant, there will be real and viable opportunities for their involvement in supplying larger centrally located plants capable of heating and powering new housing developments for example.

For further informaton, please contact Henry Sale or Tom Heathcote on 01858 410200.

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