The different activities performed at BIOFERLUDAN project (SME Instrument - phase 1) can be grouped in four tasks:
1. Analysis of the intellectual property rights (IPR) and the freedom to operate (FTO)
2. Identification of the structure and segments of the targeted market
3. Identification of commercial channels for BIOFERLUDAN fertilizers
4. Detail of the exploitation/financial plan
Main results obtained after the completion of these tasks were:
+ There is total freedom to develop the plant in Spain and the rest of Europe, except perhaps Germany, that would need a more thorough analysis. BIOFERLUDAN invention is novel and has a clear industrial application. Moreover, since it has not made public the invention, the company (Ludan Renewable Energy S.L.) aims to protect the process by means of patent application procedures.
+ Biogas plants markets with more potential to implement BIOFERLUDAN process are segmented in those with co-digestion or organic waste in terms of type of feedstock. Second segmentation can be done respect current digestate use and future perspectives. Strict quality control of materials used as feedstock will be the first and most important step of digestate quality management that will be revised and controlled in targeted Biogas plants ensuring maximum ecological and economic benefits from use of digestate as organic/humic fertiliser.
+ New markets identified for solid digestate products beyond traditional composting are: home garden products, landscaping, horticulture (commercial nurseries and seedlings producers) and use on city parks and gardens. On the other hand, new markets selected for liquid digestate products beyond traditional agricultural spreading are horticulture, liquid plant feeds, turf fertilizers, algal culture and Biofuel production. In both cases (solid and liquid products) fertilizer production may require supplementing with Phosphor and Potassium due to nutrients content of digestate.
+ Regarding legislative requirements for the fertilizer products obtained by BIOFERLUDAN process will be classified as organic fertilizers and biostimulants with humic substances. Since these categories are not included on the inorganic fertilisers European Regulation (EC) No 2003/2003, most member states have in place national provisions regarding marketing of this kind of products.
+ At the fertilizer sector, main concern of all manufacturers is to comply with the legislation and for the specific product obtained from digestate; it should have good adaptation to the use. In addition, main market barriers are the distribution having a good commercial network of sales and sales channel; and the extensive timing of a proper agronomic validation of the product.
+ For the Biogas sector, economic barriers were remarked because scale economy and final prices of fertilizers are key aspects to be able to monetize the implementation of more comprehensive treatments of digestate.
+ Market of humic fertilizers presents a great variety both in composition and forms of presentation adapted to the different needs and requirements of the soils (around 200 references only in Spain). Despite this, due to the growing market the products which are going to be developed in BIOFERLUDAN project, will present perfect conditions to have a niche on both the domestic and international markets.
+ For the commercialization of fertilizers, performed analysis of both typical/alternative commercial channels and currently company experience/capacities indicate that B2B scheme is the best structure of commercialization route. Consequently the suitable commercial channel for BIOFERLUDAN fertilizer would be the fertilizer producers with similar products and with high distribution capacities able to deliver the products to different identified consumers (Farms, cooperatives and agricultural companies, gardening shops, supermarkets, etc.).
+ After the economic study of the fertilizer plant, it has been obtained an average installation cost of 1 million € considering auxiliary equipment and the development costs. There were also calculated a breakdown of the operational costs, the operation and maintenance of the plant, the energy supply and management. It also shows the incomes for the fertilizer production and dehydrated products.
+ Finally, two business models were developed based on a loan of the 65% of the total project, for a period of 10-years and 6% interest. The business models of the plant if the target prizes can be reached, is very interesting. The humic and fulvic liquid fertilizer prizes could be competitive with local organic sources.
Beyond mentioned barriers, opportunities for developing a digestate market exist as it is a sustainable fertiliser and soil improver that can be produced. Biogas plants operators will be running a profitable business from the contracts and associated fees they receive from accepting wastes as well as the energy they generate, the digestate being an added bonus that can further increase revenue.
