Sustainable Biogas from Mushroom By-Products
About this good practice
In the Southern Great Plain region of Hungary, managing large volumes of agricultural by-products – especially spent mushroom substrate (SMS) – became an increasing environmental and logistical challenge. To address this, regional actors with support from national and EU co-funding, developed a circular economy solution: biogas production from agricultural waste.
The initiative, implemented from June 2007 to October 2008 under the Competitiveness in Economic Development Operational Programme, aimed to sustainably process around 3,000 tonnes of SMS generated annually. The core objective was to reduce environmental pressure while improving the environmental viability and profitability of oyster mushroom production.
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
The innovative use of spent oyster mushroom substrate for biogas production is a model for sustainable waste management and renewable energy. A key objective was to stimulate innovation in the bioeconomy by supporting pilot models that transform agricultural by-products into valuable resources. It is scalable and adaptable to regions with similar agricultural contexts with the aim of achieving the full ecological cycle.
Policymakers can learn from the integration of research funding, public-private partnerships and local resource utilisation. The project stands as a strong example of how environmental challenges can be addressed through collaborative public-private action under a supportive policy ecosystem. 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 broader national environmental and economic goals.
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