Biogas production in the agricultural sector – substrates, environmental benefits and business models

Farmers have the opportunity, through more efficient use of resources such as manure, residues and by-products, to contribute to both great societal benefits through the production of renewable energy and to reducing their own company’s climate impact. However, investing in new activities such as building a biogas plant or using and refining your residual streams in other ways is usually associated with barriers such as high investment costs, difficulty in finding a market, problems with pricing and too short-term support system. To create profitability, farmers must be prepared to change their business model for how they create, deliver and capture value.

Business model innovation therefore requires flexibility and cooperation but also willingness and preparedness to be able to handle the problems and take advantage of the opportunities that arise. Processes and methods to increase the readiness of agricultural entrepreneurs to utilize their raw material and create environmental benefit in new developed business models need to be initiated. Programs and policy tools aimed at strengthening preparedness for the introduction of new business models must include economic prerequisites as well as targeted measures that directly involve the entrepreneurs.

In this pilot project, farmers’ readiness for change in the existing business model is examined and stimulated, while obstacles and driving forces for investments are identified. The farmers are involved in business model development to develop sustainable and innovative business opportunities where bio-raw material and residual streams are utilized. The environmental and climate aspects of an efficient use of resources are investigated and suggestions will be presented for how support programs and subsidies should be designed. The project is carried out in close collaboration between researchers and agricultural companies interested in innovating their companies.