1. Introduction
Historically, the management and disposal of manures from small and dispersed livestock farms was not considered a problem [
1]. Besides, these wastes, both solid and liquid, were rich in organic matter and nutrients, primarily nitrogen, phosphorus, and potassium, making them valuable for maintaining soil fertility [
1,
2]. Until now, they are typically spread on arable land after undergoing long-term stabilization in lagoons and composting piles [
3]. Unfortunately, in such cases, the energy content of manure is not utilized, combined with the release of greenhouse gases, notably methane, and odors into the atmosphere [
4]. Incidents of surface and groundwater pollution are frequently reported when lagoons and composting pits lack proper insulation [
5]. Nowadays, the importance of sustainable livestock waste management, environmental protection, and creating value for farmers is increasingly recognized.
Energy recovery from animal waste can be achieved through thermal or biochemical processes [
6,
7]. One widely used technology for livestock waste treatment is anaerobic digestion, a biochemical process wherein organic compounds are converted into biogas and digestate. Biogas typically comprises methane (55-65%), carbon dioxide (45-35%) and traces of other gases like sulfide and ammonia [
8]. The residue left after anaerobic digestion, known as digestate, is rich in organics and nutrients and can serve as a soil conditioner to enhance agricultural production [
9]. Implementing anaerobic digestion technology offers several advantages, including waste volume reduction, odor control, decrease in manure pathogens (especially during thermophilic processes), recovery of nutrients in digestate, and energy production [
10].
Anaerobic digestion facilities represent complex technical systems that demand substantial investments in infrastructure such as buildings and tanks, mechanical, and safety equipment [
11,
12]. The setup of such a facility involves meticulous design, construction of infrastructure, acquisition and installation of equipment, operation overseen by trained personnel, and annual maintenance to minimize or address unforeseen breakdowns. Specialized construction firms, known as EPC technology providers, collaborate with waste producers (i.e. livestock farmers) to establish these facilities. Given the variations in livestock farms regarding type and size, leading to the generation of diverse types and quantities of waste, technology providers implement customized solutions tailored to each client’s needs. These solutions encompass various aspects, including anaerobic digestion technology (e.g. wet, dry, mesophilic, thermophilic) and waste pretreatment technology, as well as equipment for biogas utilization (e.g. hot water production, electricity, and heat, or biomethane upgrading).
According to the European Biogas Association (EBA), as of 2023, Europe hosted ~21,000 anaerobic digestion facilities generating approximately 21 billion cubic meters (bcm) of biogas. While biogas was primarily utilized for electricity generation, there was a growing trend of upgrading it to biomethane, which was either injected into the natural gas grid or used as a vehicle fuel. The EBA reported a significant increase in biomethane production from 0.9 to 4.2 bcm between 2013 and 2023. Despite this progress, the Repower EU initiative has set a target of further increasing biomethane production to 35 bcm by 2030. Achieving this objective necessitates the establishment of an additional 14 bcm of biogas production capacity, equivalent to the construction of ~14,000 new anaerobic digestion facilities, alongside the conversion of existing facilities into biomethane plants. Many European countries, such as Greece, Ukraine, Latvia, Ireland and Serbia, lag behind in biogas production, each hosting fewer than 60 biogas plants. Consequently, a considerable amount of energy from manure remains untapped. The advantages of expanding anaerobic digestion facilities are manifold and include bolstering the local economy, generating new job opportunities (both during construction and operation), safeguarding the environment and public health, reducing greenhouse gas emissions, and enhancing the production of renewable fuels [
13,
14,
15,
16].
Implementing anaerobic digestion for waste management in small and medium-sized animal husbandry operations presents significant challenges. Moreover, the EU agro-food sector is characterized by a multitude of small and medium-sized enterprises [
17]. In such scenarios, the expenses associated with collecting and transporting waste to large centralized anaerobic digestion facilities are substantial, ranging from 0.15 to 0.20 € tn
-1 km
-1 [
18]. For instance, for a 500 kW anaerobic digestion facility processing 30,000 tn of livestock and/or agroindustrial waste annually, transportation costs could amount to as much as 120,000 € per year [
19]. Additionally, plant operators often resort to energy crops to enhance biogas production, a practice that can potentially double operational expenditures, considering the utilization of 2000 tn of maize silage per year, with prices ranging between 40 and 60 € tn
-1 [
19].
Anaerobic digestion facilities designed for individual farms do not necessitate additional raw materials or the use of energy crops. Consequently, operating costs are primarily limited to electricity consumption (for mechanical equipment), labor salaries, equipment maintenance (including CHP unit, motors and pumps), the use of chemicals (e.g., for biogas desulfurization), and consulting services. These consulting services typically offer specialized expertise to optimize digester operation and may also provide chemical additives aimed at enhancing biogas production efficiency.
This study aimed to assess the economic feasibility of anaerobic digestion facilities equipped with combined heat and power (CHP) engines ranging from 50 to 400 kW, for treating livestock waste from individual animal husbandry enterprises. To achieve this goal, data were gathered from various livestock operations (including dairy cattle, poultry, swine, dairy sheep and goat) regarding their annual production, revenues, electricity and fuel usage, as well as waste generation. Additionally, waste samples were collected and analyzed to determine their biomethane production potential, thus estimating the revenue from renewable electricity generation. The capital and operational costs of anaerobic digestion facilities, ranging from 50 and 400 kW in capacity, were calculated using the equations developed within the “eMT cluster” project. The economic feasibility was further evaluated by computing the investment payback period, considering different feed-in-tarrifs for electricity fed into the grid (ranging from 0.21 to 0.26 € kWh-1), as well as potential subsidies for the construction of anaerobic digestion plants.
4. Discussion
The findings of this study reveal that a feed-in tariff (FIT) of 0.21 € kWh
-1 is inadequate to render investment in anaerobic digestion facilities financial attractive for capacities less than 250 kW. Hence, it is imperative to either increase the FIT to 0.26 € kWh
-1 or provide investment subsidies for capital expenditures (CAPEX), or ideally, both. Investment in anaerobic digestion should yield value for the farmer, accompanied by a short payback period, preferably under 5 years. As evidenced by the results, significant economic returns are feasible for dairy cattle and sheep/goat enterprises. Poultry farms, despite their substantial consumption of fossil fuels (primarily for barn heating), incur overall fuel costs amounting to less than 5% of the annual turnover, thus mitigating the significance of this issue for farmers. Previous studies indicated that small-scale anaerobic digestion facilities are rarely implemented due to their limited financial attractiveness [
23]. Nevzorova and Kutcherov [
24] highlighted the barriers hindering the widespread adoption of anaerobic digestion technology in small and medium-sized livestock enterprises, including lack of interest by the farmer, high investment costs (attributed to the scarcity of qualified construction companies), limited access to bank loans, absence of suitable subsidies and support programs, and complex bureaucratic procedures for financing and obtaining permits/ licenses.
According to a survey conducted by Burg et al [
25] in Switzerland, farmers with a small number of animals exhibit limited interest in biogas production. The primary motivation for adopting anaerobic digestion facilities is the potential income derived from selling electricity to the grid. Similarly, factors contributing to the limited adoption of anaerobic digestion technology include high investment costs, absence of subsidies, and difficulties in collaborating with neighboring companies to establish larger capacity plants. Furthermore, investing in anaerobic digestion technology often requires significant involvement from the farmer, spanning from the design, construction, and especially operation phases, which may divert attention from their primary activities of animal breeding and/ or milk production. Therefore, for the successful implementation of anaerobic digestion projects in small and medium-sized livestock enterprises, it is crucial to ensure a positive economic balance, coupled with low capital and operational expenses, while ensuring that farmers maintain their commitment to their core production activities.
Organic waste management poses a significant challenge for the animal husbandry sector, which produces substantial quantities of residues and wastes, both liquid and solid, necessitating proper treatment and disposal. Inadequate waste management can result in greenhouse gas emissions, environmental pollution, health hazards, and economic losses. Hence, there is a pressing need for sustainable and efficient solutions to mitigate the environmental impact of waste while extracting value from it. Achieving this objective demands a paradigm shift towards a business model with minimal farmer involvement, alongside low CAPEX or simplified technology.