Source – Author Own

 

Modular Renewable Systems and the future of agriculture

The agricultural sector here in the UK is under increasing pressure to reduce its environmental impact whilst also maintaining financial viability. 

With rising energy costs and stringent environmental regulations & restrictions, UK farmers are seeking innovative solutions to these problems; solutions such as Modular Renewable Systems or MRS. 

“Energy costs are going through the roof and they’re never going to come down again, which is a real worry. That’s why I think small-scale AD is such a fantastic opportunity.“

Graham Adams, UK Farmer

MRS, identified by the Anaerobic Digestion Biogas Association (ADBA) as small on farm anaerobic digestion (SOFAD), offer a sustainable pathway for UK farms to generate renewable energy, reduce greenhouse gas (GHG) emissions, and improve waste and nutrient management. 

MRSs are becoming increasingly attractive to farmers, particularly in the current economic climate, being a “plug & play” system, they can be deployed quickly, to power the farm from its waste in short order, helping right away to reduce energy bills and the need for expensive carbon removal technologies.

The last 12-18 months has seen a significant shift in the perceived affordability and viability of SOFAD. As such, Bio-Drive is keen to return to our very roots of supporting Farmers, and ensure they have access to affordable, realistic alternatives to big AD. 

The environmental benefits & economic considerations of MRS

Figure 2 – Biogas Process Diagram 

Source – O’Connor, S., et al. 2021

As MRS are bespoke, decentralised, small-scale AD, and they are considered to be more flexible and cost-effective than large-scale AD plants, offering a wealth of environmental benefits, including: 

• • A reduction in GHG emissions such as methane and carbon dioxide

• • A sustainable waste management solution

• • A water & nutrient recycling solution, allowing for regenerative agriculture

• • A source of renewable energy, both heat and electricity

“AD is much more a kind of farming activity than a non-farming activity. You’re not just dealing with waste; you’re creating a useful resource from something that would otherwise be a problem.“

Jonathan Scurlock, 

NFU Chief Advisor, Renewable Energy & Climate Change

Figure 3 – UK Agri-GHG Emissions 2021 

Source – DESNZ GOV.UK, 2023

Alongside these are some important economic benefits, such as: 

• • MRS can reduce operating costs, such as waste, electricity and heating fees/bills.

• • MRS can provide energy independence by removing your reliance on volatile resource markets.

• • MRS can generate revenue from selling excess electricity, heat or the valorised organic fertilisers outputs 

• • MRS is modular allowing for expansion/downsizing depending on demand.

“The most successful MSSAD projects utilise a free supply of feedstock, slurry predominantly. When you eliminate high feedstock costs and optimise nutrient recovery, the economics become far more attractive compared to large-scale AD, especially for smaller farms looking to become energy independent.“

Lucy Hopwood, 

NNFCC Business Development Director & Principal Bioenergy Consultant

With this are also some barriers to adoption that need to be resolved; limited access to funding, a lack of clear policies around MRS and technical challenges. 

 

Assessing the Benefits of Modular Renewable Systems (MRS) Over Existing Small-Scale AD

Following an extensive study comparing existing static small-scale anaerobic digestion (AD) systems with modular renewable systems (MRS) on UK farms, we assessed their environmental impact, economic feasibility, and adoption potential. This included a case study, financial modeling, interviews with industry specialists and UK farmers, and policy analysis from ADBA, DEFRA, DESNZ, Ofgem, and the EU Commission. Our findings indicate that MRS offers a superior alternative due to its enhanced flexibility, cost-effectiveness, and scalability.

• • Perceptions:
    
    • • Farmers perceive waste management and energy cost reduction as key benefits of all on farm AD.
    • • Farmers showcased knowledge gaps regarding maintenance and regulatory requirements of all on farm AD.
    • • MRS is viewed as a lower-risk, more adaptable solution compared to traditional static AD units.

• • Environmental Impact:
    
    • • Methane & Carbon Dioxide Reduction: Both MRS and static small AD can reduce emissions by up to 90%
    • • Renewable Energy Integration: Both MRS and static small AD generate biogas used for heating and electricity generation.
    • • Soil Health: Both systems produce nutrient-rich digestate, but MRS offers better nutrient control in the various outputs due to our Bio-Recover option that splits digestate into 30% solid fertiliser, 5% concentrated liquid fertiliser and 65% clean water for discharge to watercourse. Massively reducing liquid waste storage requirements.
    • • Water Conservation: MRS also goes a step further recovering and reusing water, an improvement over many traditional small AD units that rely on greater water consumption.

• • Economic Feasibility:
    
    • • Traditional static small AD systems typically require £250,000+ minimum with little room for movement and are typically valued off revenue opportunities, leading to long term payback periods of 6-12 years.
    • • The MRS utilises a tailored costing of your current opex alongside the more cost effective modularised units, focusing on money saved rather than generated. Leading to shorter term payback periods of less than 5 years.
    • • Being modular, means the system can be moved or traded between farms, meaning traditional equipment finance options are likely to be a preferred route for the farmer.
    • • Traditional static small AD systems are fixed and require large expenditure to expand, whereas the modular nature of the MRS allows for easy incremental expansion/contraction based on farm size.

Figure 4 – Economic results of existing Irish SOFAD systems over a 20-year lifespan 

Source – O’Connor, 2020

Please note Bio-Drive MRS systems offer lower capital costs over static systems, allowing much improved returns on investment compared with the above study.

• • Adoption Barriers:

• • Financial Challenges: While MRS has lower upfront costs, limited government subsidies still slow adoption of both technologies.

• • Technical Knowledge: Farmers require training, but MRS offers full automation of simplified technology that allows farmers to maintain them themselves if they wish with full remote support and automated solutions, reducing the burden of maintenance.

• • Policy Misalignment: The UK government does not yet classify MRS separately from traditional AD, making it harder to access tailored incentives.

“Farmers often struggle to access financing for these systems because the government hasn’t yet classified them separately from traditional AD units.“

Grace M. O’Dwyer, Deputy Head of Agriculture, HSBC

Figure 5 – Barriers to Existing SOFAD

Source – O’Connor, S., et al. 2021

Case study: HA Farm

HA Farm in Ross on Wye successfully operates a static small AD system, which provided extensive data for our study. The technology has proved significant financial and environmental benefits, such as – greenhouse gas emissions being reduced by over 80%. However, our findings suggest that an MRS system would provide even greater advantages, including:

• • Greater financial returns with a lower initial investment and a faster payback period (currently 6-8 years depending on energy prices).

• • Scalability for future growth, as MRS systems can expand incrementally, unlike the farm’s current fixed-design AD unit.

• • Enhanced environmental sustainability, integrating water and nutrient recovery—a feature the farmer has identified as a crucial next investment (valued at £250,000) but already incorporated in MRS backend technology.

By learning from the successes and limitations of static AD systems, farms like Hope Ash can transition to MRS for even greater efficiency, cost savings, and sustainability.

Is UK farming ready for MRS?

Modular Renewable Systems (MRS) offer all the environmental benefits of traditional AD while improving economic feasibility, flexibility, and efficiency. However, widespread adoption depends on:

• • Financial support models, including targeted subsidies and incentives recognising MRS’s unique benefits.

• • Enhanced technology training & maintenance programs to bridge the knowledge and support gaps for farmers.

• • Policy reform to classify MRS separately, ensuring appropriate funding and support.

Despite its existing feasibility, if the UK is to unlock the full potential of MRS, government policies must evolve to support smaller, modular systems as an integral part of the UK’s sustainable farming future.

“Farmers aren’t great at working together, but this is a real opportunity for collaboration. If we can deploy modular AD projects in a standardised way, it could be a game changer.“

Lucy Hopwood, 

NNFCC Business Development Director & Principal Bioenergy Consultant

Conclusion

In short, MRS can make a significant and positive impact on UK farms; reducing greenhouse emissions, improving soil health, providing a cost saving on energy, plus an additional revenue stream – selling excess energy into the grid or for carbon credits. 

Where originally large scale AD was more viable, the current market and social conditions across the globe have enhanced the viability of MRS for UK farmers. With a natural rate of adoption soon to follow. However, to drive widespread adoption, government funding, low-interest grants, and clear policy support must be established, ensuring that farmers can confidently integrate this technology into their operations.

MRS could change the economic landscape for UK farmers, as well as positively contribute to Net Zero and the UK’s search for energy independence. We simply need funding & policies to catch up.

Want to know more about MRS? Contact us today.

Figure 6 – Bio-Drive MRS Suggested Setup

Source – Author Own