The beleaguered livestock industry in the UK is in a superb position to exploit the move towards renewable energy by investing in micro-power generation plants and producing electricity or gas that can be sold into the National Grid network.
The imposition of Nitrate Vulnerable Zones across the UK has caused a significant headache for livestock farmers who have to get rid of millions of tons of muck, slurry and litter every year, and this problem is likely to intensify as environmental restrictions tighten under emerging EU legislation.
There is a solution which could generate a significant amount of non-farm income for the livestock producer. The process is simple: waste material is put into a sealed tank (most of which is located beneath ground), the tank is heated gently and the waste material breaks down under anaerobic conditions to produce methane gas. This is then tapped off to a storage tank, and the remaining fibrous material can be spread on the land as fertiliser.
The methane gas can then either be pumped into the National Grid gas network or burnt to produce electricity, which again can be fed into the National Grid or put through a combined heat and power plant (CHP) to produce heat and power for use on the farmstead itself.
The gas and electricity sold into the National Grid are eligible for Renewable Obligation Certificate payments (ROCs) which effectively means that the renewable energy provider receives a higher price for the green energy sold into the grid than the normal dirty energy producers.
Depending upon the size of the farm, bio-gas plants can be installed for as little as £200,000 for personal use or up to £3 million for larger farms producing up to 30 mega watts of electricity for sale into the National Grid.
There are now various companies that will take small amounts from individual producers and put them together to produce a more favourable package on a co-operative basis. Livestock producers should therefore seriously consider this option, especially as grant funding could be available through the Regional Development Agencies.
Another plus is that given the security of income involved here, the banks are interested in providing capital for this type of project.
For further information, contact Stephen Rice 01295 226297 email stephen.rice@fishergerman.co.uk
