From cost to profit for Langage Farm's biogas digestate

Posted: 9 September, 2013. Written by James Beard

Langage Farm predicts profit from digestate in 2014 thanks to Biofertiliser Certification

Industry and the media invited to learn more about biofertiliser at RWM

Langage Farm announces today that it expects to make a profit from its biogas plant’s digestate next year having successfully built up a market for biofertiliser. The dairy farm, based in Devon and famed for its artisan ice cream, installed a 500kW anaerobic digester in 2011 and, following successful accreditation under the Biofertiliser Certification Scheme, is now forecasting that demand will outstrip supply for its biofertiliser products in 2014. Digestate is a nutrient-rich by-product of anaerobic digestion that can be used as an organic fertiliser, displacing more expensive chemical fertilisers. Anaerobic digestion is the conversion of organic wastes and feedstocks into renewable biogas for heating, electricity or transport fuel.

Disposing of digestate has historically been a problem for the AD industry because of a lack of awareness and confidence among farmers of its potential use as biofertiliser. The Biofertiliser Certification Scheme is transforming digestate from costly waste into profitable resource by providing trusted certification according to the PAS 110 standard. The BCS was set up by the Renewable Energy Association’s Biogas Group and is managed by the REA’s subsidiary company Renewable Energy Assurance Ltd (REAL).

REA Head of Biogas David Collins will be explaining the BCS to industry and the media at RWM in Birmingham, this Wednesday at 1pm on the REA’s Organics Recycling stand in the Materials Village (F12 in Hall 19) [1].

John Deane, who manages Langage AD’s Digestate Business Development, said:

“Managing digestate output and developing a market for the product was a sizeable challenge. At first we didn’t realise the full scale of the challenge as we were initially focused on getting the machinery and business systems up and running. But as we saw the digestate tank rapidly filling up, we knew we had to respond with a strategic solution which, it seems, has set a good precedent.

“We have worked very hard to explain to farmers the benefits of using digestate as biofertiliser, and there are a lot of variables to consider, such as farming systems, soil nutrient levels and, above all, the farmers’ willingness to explore innovative new products. Gaining accreditation under the BCS greatly reduced our workload and costs, helped build confidence among these potential customers and accelerated our ability to supply the product.”

BCS accreditation reduces the cost of using digestate as biofertiliser, for instance, by mitigating the need for expensive permits from the Environment Agency for spreading digestate to land. In the first year of operation at Langage AD, digestate management costs exceeded £100,000. In the second year, costs dropped to around £80,000 and demand for biofertiliser greatly increased. This year costs are predicted to be below £20,000 and demand has now begun to outstrip supply, meaning that by the end of 2014 Langage AD’s biofertiliser business will be running at a profit (all things being equal).

REA Head of Biogas David Collins, who leads REAL’s work on the BCS, said:

“Congratulations to Langage AD for developing a sustainable market for their digestate. Government support levels are very tight for the on-farm AD sector at present – a matter we are currently pressing the Government to resolve – and securing a market for digestate could mean the difference between make or break for developers trying to progress their projects. One plant at a time we are turning the economics of digestate upside down, and transforming waste disposal into market opportunity.”

Journalists and organics recyclers are invited to meet David Collins at 1pm this Wednesday on the REA’s Organics Recycling Stand at RWM, located in the Materials Village (F12 in Hall 19). David will present the Langage AD case study in more detail and explain how the BCS is helping to open up new commercial opportunities for biogas and biomethane producers at all scales.

REAL’s parent company the REA will be exhibiting on Stand B12 at The Renewables Event, which is co-located with RWM [2]. REA Chief Executive Dr Nina Skorupska and Senior Policy Analyst Mike Landy will both be giving presentations in the Re:Word Theatre on Wednesday 11th September [3].

Notes to editors

• Langage Farm has been a producer of high quality dairy products in the Devon area since 1980. The farm and manufacturing plant have recently become known for closing the loop in their manufacturing process through the introduction of an anaerobic digestion plant. Langage Farm has been invited to enter the 2013 Zayed Future Energy Prize for their contributions to the UK renewable energy industry.
  For more information, see: www.langagead.com
  To view and download images of Langage AD’s biofertiliser in action, please visit: www.langagead.com/biofertiliser.html
   
• The Biofertiliser Certification Scheme (BCS) provides assurance to consumers, farmers, food producers and retailers that digestate produced from anaerobic digestion is safe for human, animal and plant health. Biofertiliser is the name adopted for the quality digestate that meets the PAS110 & ADQP or ASRS specification.
  For more information, see: www.biofertiliser.org.uk

• Renewable Energy Assurance Ltd carries out a range of certification and consumer protection activities, all of which promote sustainable energy. REAL’s activities fall under two headings: consumer codes and certification schemes. REAL was incorporated in 2006. It is a wholly-owned subsidiary of the Renewable Energy Association.
  For more information, see: www.renewableenergyassurance.org.uk
   
• The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with over 1,000 members, ranging from major multinationals to sole traders.
  For more information, see: www.r-e-a.net

1. RWM takes place at the NEC in Birmingham from 10th-12th September 2013. For more information, please visit: www.rwmexhibition.com
    
2. The Renewables Event takes place at the NEC in Birmingham from 10th-11th September 2013. For more information, please visit: www.therenewablesevent.com
    
3. For more information about the REA’s activities at RWM and The Renewables Event, please visit: www.r-e-a.net/news/new-rea-ceo-to-give-first-keynote-speech-at-the-renewables-event