New opportunities for manure processing

Large-scale manure processing will come, but it will be managed differently than in the past. Climate policy and the energy transition are now the major drivers for manure processing.

In the late 80s, large-scale processing of slurry was the spearhead in tackling manure surpluses. At the time, the Manure Processing Realization Committee estimated that ten million tonnes of manure processing capacity would be available in 1996 and twenty million tonnes in 2000. Things turned out differently because of the bankruptcy of the first large-scale fertilizer processor PROMEST. This debacle has haunted and held back industrial manure processing for years. The main bottlenecks were: uncertainty about sufficient manure supply, financing and licensing.

Energy suppliers
But new opportunities for manure processing are emerging from an unexpected source. Due to the blending obligation for green gas with natural gas and bio-methane with fossil fuels, a strong expansion of the production of biogas is imminent. Processing biogas produces green gas. Large energy suppliers are responding to the blending obligation and are taking the initiative for biogas production on an industrial scale. They also take over existing biogas plants. The aim is to have around two billion cubic meters of green gas available by 2030. The current production is 200 million cubic meters and therefore only 10% of the target quantity. Livestock farmers with a mono-fermenter on their farm also take care of part of the green gas target.

Lots of manure
Green gas production creates a high demand for manure and (imported) co-products for manure fermentation. RaboResearch expects that about half of the available amount of manure can be fermented. This is now only about 5%. Based on the manure section of the (non-realised) draft Agricultural Agreement, it is expected that much more slurry will have to be processed in the future than is currently the case. 

Industrial manure processing
After biogas production, the released digestate is treated and processed into fertilizer products and soil improvers in particular. If at least half of the imported biomass consists of manure and the rest consists of permitted co-products, the digestate has the status of animal manure. Processing and sales facilitate the processing obligation for livestock farmers who supply manure. Regulations and a market with strong purchasing power will steer the production and sale of the end products. Solid organic fertilizers and fertilizer pellets are mainly exported, perhaps in combination with the import of co-products. The sale of the liquid fertilizer products is foreseen on the domestic fertilizer market. 

Manure market
Large green gas producers are at the same time fertilizer consumers, fertilizer producers through the addition of co-products, fertilizer processors and suppliers of fertilizer products. With their various activities, they can provide the necessary dynamism on the fertilizer market, including with regard to pricing in the market. Energy suppliers can pass on the costs of the blending obligation to their customers.

Urgent challenge
The bottlenecks of sufficient manure and financing are not an issue for wealthy energy suppliers. One major bottleneck remains and that is: permits. It quickly takes years of preparation to get this done. And in 6 years it will already be 2030. With the highest priority for climate control and the energy transition, removing this blockage shouldn't be that difficult, right? A major and urgent challenge for (new) national and provincial politics.   

Jaap Uenk

Jaap Uenk is the owner of consultancy Mestem and has more than 40 years of experience in various positions in the Dutch fertilizer sector.

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