Financial assessment of integrating anaerobic digestion with cattle farming for biomethane production – Implications for farm economics and the supply chain
Year: 2025
Type: article
Abstract: Integrating anaerobic digestion (AD) into agriculture can support carbon neutrality and circular bioeconomy. However, economic benefits for stakeholders are crucial for implementing full-scale AD. This study assessed the financial implications of producing grass silage for AD on beef farms. It also assessed the financial viability of full-scale AD plants co-digesting grass silage and cattle slurry for biomethane, focusing on competitive grass silage pricing and support schemes. Results indicate that a grass silage price of €245/t dry matter (DM) is needed for competitiveness with beef production; this requires a biomethane certificate price of €0.12/kWh for the AD plant. At current prices (€0.098/kWh), the AD plant could afford €164/t DM for silage, requiring farm subsidies of €893/ha to cover price gaps. Methane yield of AD silage, along with biomethane certificate and silage prices, are key variables affecting the 20-year net present value of the AD plant. This study underscores the government's critical role in fostering a low-carbon livestock sector. • The economic viability of integrating AD within a beef farm should be addressed. • Pricing strategy for producing grass silage for AD on a beef farm was assessed. • AD silage price afforded by AD plant highly relied on biomethane certificate price. • Farm subsidies are needed to offset AD silage price gap between AD plant and farm. • Methane yield of AD silage, along with biomethane certificate and grass silage prices, are key drivers of the overall NPV.
Source: Biomass and Bioenergy
Language: English
Subfield: Building and Construction
Field: Engineering
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $4,270
Funder: Teagasc
Award: G5574997755
OpenAlex ID: W4407554935
