The two manure worlds within one government

Biogas from manure fermentation is an important basic raw material for the production of green gas, biofuels and hydrogen. The energy transition is the policy area of ​​the Ministry of Economic Affairs and Climate (EZK). Manure policy is the domain of the Ministry of Agriculture, Nature and Food Quality (LNV). The approach and rules regarding manure differ significantly between these ministries. 

The green gas blending obligation that is being prepared will apply to energy suppliers when supplying gas to the built environment. Manure is by far the most important bio-raw material for this. Green gas is biogas upgraded to natural gas quality. Biogas is now produced annually from approximately 3,5 million tons of manure (and from 1,7 million tons of co-substrates) (source: NCM). Rabobank expects that 25 million tons of liquid manure will soon be fermented. That is approximately half of the liquid manure produced in manure pits. Good for 30% of the green gas target of 1,6 billion cubic meters of blending in 2030.

Availability of biomass
New players in the manure market such as Shell and Vitol are building large industrial installations for the production of green gas, biofuels and hydrogen. For green gas certificates, this production must take place in the Netherlands. The energy companies are important as a sales channel for manure. If there is insufficient manure and other biomass available in our country, they will undoubtedly obtain the fermentable biomass, including manure, from elsewhere. And this happens at a time when the manure policy is actually lowering the manure production ceilings for phosphate and nitrogen for livestock farming. Mineral-rich digestate does not have these production limitations. All digestate from at least 50% manure and the rest permitted co-substrates has the status of animal manure.

Separate worlds
The Ministry of Economic Affairs and Climate Policy pays little attention to the digestate. This ministry is itself an interested party and participates in the energy transition with its company Energie Beheer Nederland (EBN) (EBN profit in 2022: €9,8 billion according to EW Weekblad). CE Delft - an important advisor for EZK - only writes about digestate in the advisory report "Additional obligation of green gas (2022)": "In theory, the digestate that remains after the fermentation of manure could be used again as fertilizer. In Denmark this is the practice and good results are being achieved with the recycling of digestate". I think this says everything about how the blending obligation of the Ministry of Agriculture, Nature and Food Quality and the fertilizer policy of the Ministry of Agriculture, Nature and Food Quality are two completely separate and different worlds. As if we do not have extensive research and experience with the use of digestate in the Netherlands.

exclusivity
Energy suppliers have an exclusive option to pass on all costs of the blending obligation in the price to end users. And therefore also the costs for processing and marketing of digestate. Green gas producing livestock farmers and manure intermediaries cannot do this. Wealthy concerns can undoubtedly produce high-quality end products from digestate for a purchasing market at home and abroad. But they are not obliged to do so. They have no processing obligation. Livestock farmers and manure intermediaries who take care of the manure supply will require this when delivering manure. A large additional demand for manure is beneficial for the manure sales costs for livestock farmers.

The separate worlds of LNV and EZK in which manure ends up and the unequal approach and rules also make it clear that the current manure policy must be overhauled.

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.

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.