Cost effective use of digestate from biogas as a substitute for mineral fertilizers at the farm level in Finland
2025
Kosgallana Durage, Bodhani | Helsingin yliopisto, Maatalous-metsätieteellinen tiedekunta | University of Helsinki, Faculty of Agriculture and Forestry | Helsingfors universitet, Agrikultur-forstvetenskapliga fakulteten
In Europe, use of digestate in agriculture is a significant trend due to the importance placed on sustainability in the EU area. This thesis aims to study how economically benefited farmers are by using digestate, a nutrient-dense product of anaerobic digestion of biogas production, is a circular and sustainable substitute for synthetic (Mineral) fertilizers by converting organic waste into a useful soil enhancement product which is related to a case study of ongoing project in HSY (waste management services in Helsinki area) in Finland. The study considers crop nutrient requirement information, gross margin assessments, and Net Present Value (NPV) models for two investment scenarios such as farms with and without having existing storage capacity paying attention to sustainability and long-term economic viability. The outcomes indicate that using digestate makes economic sense and could generate benefits for farmers by improving profitability over time. Farms using digestate under existing storages projects a positive NPV as of year 2 under a 3% discount rate for those without storage takes up to year 8 to gain benefit. Sensitivity analysis was conducted and had findings indicating that digestate is still of economic benefit to farms even under worst-case scenario assumptions of nitrogen loss in use of digestate (30% leached). The results illustrate digestate's ability to increase resource efficiency and reduce reliance on mineral fertilizers and support Finland's climate-related objectives and circular economy. However, adoption requires consideration of logistics, compliance with regulations, and ensuring accurate nutrient management. The research identifies practical implications for farmers, and biogas producers and helps to inform policy recommendations; it also suggests more work is needed in field-based agronomic research to support adoption of digestate to scale.
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