Energy Crops
Concept
Energy crops are farm-grown crops that can be used to provide renewable heat and electricity. Crops such as maize, whole crop grains or grass are grown specifically for their potential for biogas production. After harvest they shredded in preparation for anaerobic digestion, a natural process of fermentation that takes place in the absence of oxygen (in airtight vessels) and by which organic matter is broken down and converted into methane (known as biogas). In addition, various residues from farming such as animal manures/slurries, food processing and cooking waste can be integrated into the feedstock to supplement the level of biogas generation.
Closed Loop System
Biogas from the AD process can be used to generate heat and/or electricity just like natural gas. The key difference is that the energy generated from biogas is practically carbon neutral. The by-product biofertiliser is a valuable soil improver and fertiliser substitute. This can then be spread back onto the agricultural land significantly reducing the requirement for chemical fertiliser and pesticides making energy crop anaerobic digestion a closed loop system.
Site Location
Suitable site location is essential. Access, availability of feedstock, suitable amounts of land for digestate dispersal and ease of grid connection are just some of the site specific considerations. Potential for electricity, heat and CO2 generated to be used on site will improve the financial performance of the development. Each feedstock has a different cost, energy yield and gate fee associated with it and security of supply is essential. As a rule of thumb for a crop only plant approximately 200 ha of maize would be required to power a 500Kw plant (enough to power up to 1000 homes). This may have a capital expenditure of around £2million.
Project Development
- Feasibility study
- Funding
- Technology choice
- Planning and permitting
- Grid connection
- Feedstock commitments
- Power purchase agreements
- Project Management
- Construction
Oaktech Environmental
Our company is built on the principles of providing reliable renewable energy and being dependable partners to farmers, the wider rural community and the clean energy sector. Our reputation depends on dealing fairly and openly with all our partners.
Our highly qualified management team has unique experience and knowledge in the field of biogas production, process improvement and the application of new technologies. As well as looking to acquire suitable land for energy crop projects, Oaktech seek to enter into option and lease agreements or Joint Ventures with farmers or landowners. Such agreements can help diversify farm income streams, limit market exposure and operating risk at a time when volatility in the agricultural sector is at an all-time high. Energy crops such as maize and grass can help farmers reduce risks by removing the link to speculation driven soft commodity markets. To fit in with different farming and landholding arrangements Oaktech aim to approach any such contractual arrangements with a high degree of flexibility.
Energy Crop AD Opportunities
- Rental income for sites
- Shares of revenue through Joint Ventures, reducing risk
- Income from incentives such as FiT/ROC/RHI
- Income from the sale of electricity and/or heat
- Displaced costs of electricity and/or heat on site to enhance returns
- Income for provision of feedstock (eg maize) which can act as a strategic break crop
- Gate fees for the receipt and handling of some wastes
- Digestate to the land as fertiliser
