Big, brave and bankable? No, thought not...

18 months ago the multiple benefits of anaerobic digestion technology looked set to put fire in the belly of farmers, policy makers, businessmen, environmental charities and many others. Today, the fire is still there but it is one fuelled by frustration rather than sense of opportunity. Grimly, we sit waiting; hoping that things will change and we can get on with our ambitious plans to shape farming’s future for the better.

In April 2010, the Government launched its Clean Energy Cash Back scheme, designed to kick start a revolution in the generation of renewable electricity through the use of Feed-in Tariffs (FITs). However, for many the scheme missed a vital trick – appropriate tariffs for on-farm anaerobic digestion (AD).

On-farm AD development is struggling under the weight of a number of issues. From poor financial incentives and confusion over access to grants, to expensive grid connection, lack of access to good feedstocks and default ‘no’ responses from most planners - the mountain any farmer has to climb is prohibitively steep. But two issues in particular are in need of urgent consideration.

Firstly, the financial return farmers require from AD needs to be improved. In the short term, few farmers other than the very big, the brave and the bankable, are able to get into AD. A FIT bonus for using manure as a feedstock in AD plants would have a positive effect in reducing methane emissions (so long as manure is not stock-piled before use) and associated improvements in farm nutrient cycling would reduce nitrous oxide emissions from fertiliser use. These greenhouse gas benefits could even exceed the nevertheless useful contribution AD can make towards meeting the UK’s renewable energy targets and if rewarded appropriately will improve financial viability.

Secondly, taking a longer perspective, a mapping exercise is required to identify and promote suitable locations for beneficial collaboration between farmers, local authorities and food waste producers.

Continental Europe is showing the way. In Germany farmers have installed over 4500 on-farm AD plants. Their maize yields are admittedly higher per acre than in the UK, but they have also been rewarded with extra payments for the use of maize as an energy crop. In the UK the Department for Energy and Climate Change used a zero cost for maize in their calculations. As any farmer will tell you it does cost money to grow a crop!

In Sweden local authorities have joined forces with their neighbouring farmers to convert manure and food waste into biomethane which is used to power the local buses and trains. Not only is this good news environmentally, but the locals are enjoying the clean air – both manure and diesel smells have vanished!

The current climate for AD in the UK is regrettable not just from the point of view of potential farm income, but also in terms of the wasted opportunity to reduce farm GHG emissions, manage farm nutrient cycling and reduce our dependence on oil and fertilisers.

The energy argument for AD is good. The financial argument is lacking. A dialogue is required.

What’s your perspective on AD? If you would like to read more about Andrew’s recommendations, please click here.

Andrew is South East England’s AD sector champion and farms 400 acres in Hampshire.