Climate change series
Focus on biogas from anaerobic digestion
C A S E S T U D Y
Name: Owen Yeatman
Region: Dorset
Grows: Dairy herd and arable crops
Size: 400 head herd and 1200 acres arable crops
Number of farm/office staff: 10
16
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Background
I’m a third generation farmer and I took over from
my father in the mid 1980s. In my time I’ve added
the share and contract farming and started the
biomass side of the business. Dairy and biogas are
perfect partners as methane is the principal
component of natural gas.
How long have you been working with
biogas?
I’ve been a director of Wessex Grain since the early
1980s and my first involvement in investigating
alternative fuels came through them. The next stage
was in 2004 when I wanted a Nuffield Farming
scholarship. Biogas interested me and I knew a lot
of work was happening in Germany but not here,
so that became the basis of my study. Through my
travels and investigation I looked at all the different
technologies and began to understand what the
drivers and economic returns could be.
My research helped me avoid the pitfalls of other
initiatives and find a provider that worked well for
me. We secured planning permission and a grant
from Defra (the Bioenergy Capital Grant Scheme)
to help us with the costs. Methane has a
calorific value, and is commercially valuable
(1cu/m biogas = 0.5 litres diesel), so we were able
to convince our investors that it would be profitable
as well as a renewable, non fossil fuel. Three
cows produce enough gas to provide electricity
for one household.
How much did it cost?
If you look at it per £1000 spent, you get a much
better return by investing in bioenergy than dairy.
Our Lowbrook digester cost around £750,000.
It can supply enough power for 400+ houses and
the digestate can be used as a fertiliser for crops.
The project returns around 19% and this stands to
improve as the price for bioenergy goes up.
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How did you secure the finance?
We had no equity left in the business because of
previous dairy investments. So, we set up another
company called Farmergy to fund the development.
The banks are wary of new technology in business
so we brought in equity from other investors and
through grants, as well as asset finance for the
Combined Heat and Power unit. The Government’s
support, through things like the Energy White Paper
announcement May 2007 and the doubling of the
ROC entitlement for the price for electricity from
anaerobic digestion (AD), underwrites the economics
of the project. The electrical output is now priced
similar to that received by German farmers.
Do you think climate change will make
a difference?
I got involved in biomass for economic reasons. I knew
I could make a more profitable farming business using
its technology. But, having spent the time looking into
the science, and seeing the carbon savings I could
make, I have to say it changed my point of view.
Agriculture can help make a positive contribution
towards solving the problem. Weather patterns have
been changing in my farming lifetime. We can’t
continue to dump the amount of carbon in the
atmosphere as we have previously and not expect to
see changes. Like most farmers, I take the long term,
multi-generational view of my business. I want to hand
on my land in a better state than when I got it. Society
and politics don’t appear to take that attitude towards
the next generation. We have issues as a society that
I can’t solve, but as a farmer I can do a lot.
What have been your biggest challenges?
Planning permission and connection to the grid can
be big barriers. I got through the planning stage by
selecting technology that sits below the tree line and
that fitted in with the landscape. I held talks to
reassure the community and gained their support.
It all went through in eight weeks and we even got
letters of support. This technology is unobtrusive;
it creates jobs, keeps the farm profitable and
doesn’t affect people negatively.
With grid connections the first thing you need to do is
establish what your connection size is. The size of
connection determines the size of the unit you can use.
Access to the grid can be hugely expensive and you
need to factor this in before you select your location.
The good news is that you can move the plant to
where the electricity is. Our connection cost £70,000.
What opportunities does climate change
present to you?
Climate change, and the move to a low carbon
society will encourage the use of biomass.
Working with biogas provides many opportunities
for the agricultural industry, such as reduction of
methane emissions, saving of mineral fertiliser,
reduction of odour emissions, strengthening of
rural infrastructure, security and decentralisation
of energy supply and the diversification of
agricultural income.
Where do you see yourself going
from here?
I can see myself being a sole energy-producing
farmer. The dairy industry has become more
profitable of late, but there is a more secure future in
energy rather than dairy. I could go on to sell biogas
to other people.
What advice would you give to those
considering change?
This is a huge opportunity to make money on your
farm. Farmers can move from being commodity
suppliers, up the value chain, to new market places
like energy and heat. At the moment there are only
four working biogas plants producing electricity in
the UK. There are 4000 in Germany. People needn’t
worry about learning new skills. Everyone who is a
good farmer can be a good biogas producer. It’s still
a production industry and farmers can use all their
own resources, assets and skills.
For news, events, and links to stories about how other farmers are managing
climate change on their farms, please visit: www.farmingfutures.org.uk
With thanks to: ARF, BBRO, BPC, BPEX, Carbon Trust, CLA, Defra, EBLEX, Forum for the Future, HDC, HGCA,
MDC, NFU, PGRO and UKCIP