Sustainable Biogas from Mushroom By-Products
About this good practice
Pilze-Nagy Ltd., a leader in Hungary and Europe for oyster mushroom production, faced a challenge regarding the disposal of approximately 3,000 tons of spent mushroom substrate (SMS) generated annually. The company sought an economical and environmentally friendly solution to manage this waste and they introduced the biogas technology. The initiative was supported by research under the Competitiveness in Economic Development Operational Programme and implemented between June 2007 and October 2008.
The primary objective was to dispose of SMS sustainably while enhancing the economic and environmental viability of mushroom production. This goal is achieved by establishing a biogas plant to convert SMS and other agricultural waste into biogas.
Key steps in implementation include:
• Constructing a 2,000 m³ fermentor as the core unit for biogas production.
• Incorporating agricultural waste, poultry manure as inputs to produce biogas.
• Utilising gas engines to produce electricity and heat energy.
• Distributing the thermal energy for mushroom-growing operations and biological processes.
The primary stakeholder is Pilze-Nagy Ltd. as the developer and operator of the biogas plant. Beneficiaries: the environment through sustainable waste management, the community by minimising transportation impacts and the energy sector by supplying renewable electricity. Nearby farms and the economy also gain from raw material collaboration and improved mushroom production profitability.
Resources needed
Almost 70% of the HUF 340 million investment was financed by the company (part of it by a loan), while another HUF 110 million was provided by the Environment and Infrastructure Operational Programme. The development required human resources as specific expertise in bioeconomics and energy.
Evidence of success
The plant produces 1.2 million m3 of biogas per year, which requires 7-9000 tonnes of agricultural organic matter (coming from mushroom cultivation, supplemented with diluted poultry manure) per year.
Utilising gas engines, the plant is able to supply 2 million kWh of electricity per year to the national grid and 2.4 million kWh of heat energy yearly, needed for the biological processes in the fermenter and the mushroom growing tents.
Potential for learning or transfer
Pilze-Nagy Ltd.’s innovative use of spent mushroom substrate (SMS) for biogas production is a model for sustainable waste management and renewable energy. This practice repurposes agricultural by-products, reducing landfill use and generating electricity and heat, which improve economic efficiency and support a circular economy. It is scalable and adaptable to regions with similar agricultural contexts with the aim of achieving the full ecological cycle - circular bioeconomy.
Policymakers can learn from the integration of research funding, public-private partnerships and local resource utilisation. The project’s financing model, combining company investment and government support, highlights the importance of collaboration. Additionally, enabling policies for renewable energy integration, such as feeding electricity into the grid, are crucial for replication. This practice offers a replicable solution for sustainable development, aligning with environmental and economic goals.
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