By digesting manure in sealed units, we prevent uncontrolled methane emissions that would occur in open manure lagoons or piles. For instance, 40,000 tons of feedlot manure producing biogas translates to avoiding ~80,000 tons CO₂-equivalent GHG per year. Under mechanisms like the UN Clean Development Mechanism (CDM) or voluntary carbon markets (Verra, Gold Standard), projects can earn Certified Emission Reductions (CERs) for each ton of GHG avoided. The African Carbon Market is growing and South African projects can sell credits internationally. At an estimated 50,000–100,000 tCO₂e avoided annually, and current voluntary carbon prices around $5–10/ton, this could mean $250k–$1M per year (R4–16M) additional income.
The EU is phasing in a Carbon Border Adjustment Mechanism (CBAM) on imports of carbon-intensive goods. While agricultural products are not yet included, the trend is toward favoring low-carbon supply chains. We anticipate that in 5–10 years, importers (of beef, for example) may prefer or even require proof of low emissions per kg. By acting early, our farm can brand its products as carbon-neutral or close to it. Milk powder and beef produced with biogas energy and solar have a far lower carbon footprint than standard. We plan to get carbon footprint certification for our milk and meat.
The South African government, through DALLRD (Department of Agriculture, Land Reform and Rural Development) and DMRE (Department of Mineral Resources and Energy), offers various incentives for exactly this kind of integrated project. Possible supports include grant funding for agro-processing equipment (the Agro- Processing Support Scheme APS), tax rebates for renewable energy, already mentioned 125% depreciation Tax incentives are crucial to South Africa's energy transition), and soft loans from the Land Bank for projects that create rural jobs. Additionally, the Free State provincial government has initiatives to promote value-add agriculture – we could receive an infrastructure grant for things like building roads to the farm or upgrading power lines, etc.