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Modelling the economics of farm-based anaerobic digestion in a UK whole-farm context

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  • Jones, Philip
  • Salter, Andrew

Abstract

Anaerobic digestion (AD) technologies convert organic wastes and crops into methane-rich biogas for heating, electricity generation and vehicle fuel. Farm-based AD has proliferated in some EU countries, driven by favourable policies promoting sustainable energy generation and GHG mitigation. Despite increased state support there are still few AD plants on UK farms leading to a lack of normative data on viability of AD in the whole-farm context. Farmers and lenders are therefore reluctant to fund AD projects and policy makers are hampered in their attempts to design policies that adequately support the industry. Existing AD studies and modelling tools do not adequately capture the farm context within which AD interacts. This paper demonstrates a whole-farm, optimisation modelling approach to assess the viability of AD in a more holistic way, accounting for such issues as: AD scale, synergies and conflicts with other farm enterprises, choice of feedstocks, digestate use and impact on farm Net Margin. This modelling approach demonstrates, for example, that: AD is complementary to dairy enterprises, but competes with arable enterprises for farm resources. Reduced nutrient purchases significantly improve Net Margin on arable farms, but AD scale is constrained by the capacity of farmland to absorb nutrients in AD digestate.

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  • Jones, Philip & Salter, Andrew, 2013. "Modelling the economics of farm-based anaerobic digestion in a UK whole-farm context," Energy Policy, Elsevier, vol. 62(C), pages 215-225.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:215-225
    DOI: 10.1016/j.enpol.2013.06.109
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    1. Tranter, R.B. & Swinbank, A. & Jones, P.J. & Banks, C.J. & Salter, A.M., 2011. "Assessing the potential for the uptake of on-farm anaerobic digestion for energy production in England," Energy Policy, Elsevier, vol. 39(5), pages 2424-2430, May.
    2. Butler, Allan J. & Hobbs, Phil & Winter, Michael, 2011. "Expanding biogas on UK dairy farms: a question of scale," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108937, Agricultural Economics Society.
    3. Alan Swinbank, 2009. "EU Policies on Bioenergy and their Potential Clash with the WTO," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(3), pages 485-503, September.
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    Cited by:

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    7. Smith, Laurence G. & Jones, Philip J. & Kirk, Guy J.D. & Pearce, Bruce D. & Williams, Adrian. G., 2018. "Modelling the production impacts of a widespread conversion to organic agriculture in England and Wales," Land Use Policy, Elsevier, vol. 76(C), pages 391-404.
    8. Campos-González, Jorge & Gadanakis, Yiorgos & Mancini, Mattia & Bateman, Ian, 2023. "Modelling the economic performance of Recirculating Aquaculture Systems (RAS) at the farm level," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334548, Agricultural Economics Society - AES.
    9. Dahlin, Johannes & Herbes, Carsten & Nelles, Michael, 2015. "Biogas digestate marketing: Qualitative insights into the supply side," Resources, Conservation & Recycling, Elsevier, vol. 104(PA), pages 152-161.
    10. Iria Soto & Berta Sanchez Fernandez & Manuel Gomez Barbero & Thomas Fellmann & Emilio Rodriguez Cerezo, 2017. "Datasets on technological GHG emissions mitigation options for the agriculture sector," JRC Research Reports JRC104084, Joint Research Centre.
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    12. Sean O’Connor & Ehiaze Ehimen & Suresh C. Pillai & Gary Lyons & John Bartlett, 2020. "Economic and Environmental Analysis of Small-Scale Anaerobic Digestion Plants on Irish Dairy Farms," Energies, MDPI, vol. 13(3), pages 1-20, February.
    13. Dávid Nagy & Péter Balogh & Zoltán Gabnai & József Popp & Judit Oláh & Attila Bai, 2018. "Economic Analysis of Pellet Production in Co-Digestion Biogas Plants," Energies, MDPI, vol. 11(5), pages 1-21, May.
    14. Baboo Lesh Gowreesunker & Savvas A. Tassou, 2016. "The Impact of Renewable Energy Policies on the Adoption of Anaerobic Digesters with Farm-Fed Wastes in Great Britain," Energies, MDPI, vol. 9(12), pages 1-23, December.
    15. Nixon, J.D., 2016. "Designing and optimising anaerobic digestion systems: A multi-objective non-linear goal programming approach," Energy, Elsevier, vol. 114(C), pages 814-822.

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