DLG and BioCirc open for biomass agreements and enable investments in the energy company

In a strategic collaboration, DLG and BioCirc will ensure that the value that agriculture supplies for renewable energy production remains in the industry. Therefore, the parties are now presenting a model where farmers can make agreements for the supply of animal manure, get a degassed product back with a lower climate footprint and at the same time get the opportunity to invest in BioCirc's current energy production and future energy projects that will ensure a green local production of electricity, gas, fuel, and heat.

CEO of BioCirc Group, Bertel Maigaard, says:

"Together with DLG, we have done a thorough job, where we have jointly wanted agriculture to share in the value that the industry also helps to create. Therefore, I am pleased that we have found a model where, in addition to making agreements on biomass, farmers also get the opportunity to invest in BioCirc's pallet of energy projects that extend far beyond the local biogas plant that they supply to."

There will be two types of biomass supply agreements that customers and owners of DLG can enter with BioCirc*. It is the conclusion of these agreements that gives farmers the opportunity to invest in BioCirc's current energy activities and future land-based circular energy clusters, which include biogas production, solar and wind energy as well as technologies such as electrolysis, methanol production and biorefining of grass.

A concrete measure with concrete reductions

It is barely a year since DLG made its largest investment in the green transition to date and became part of the ownership group of BioCirc. The great ambitions and synergies between the two companies are also something the cooperative is looking forward to unfolding for its owners and customers, who have requested cooperation on the supply of biomass.

"Today, farmers are both food and energy producers. Therefore, it is also natural and important for us that we bring our 26,000 owners closer to the value chain and to the synergies that exist between DLG and BioCirc. This is the starting signal for a larger part of agricultural biomass to be included in the production of CO2-neutral energy and contribute positively to a lower climate footprint of the animal manure that agriculture drives out into the fields," says Jesper Pagh and adds.
"Agriculture is already a prerequisite for us as a society to reach the goal of the green transition, and this is yet another concrete initiative where the industry delivers concrete reductions."

Jesper Pagh also states that DLG's sales organization is well equipped to talk to customers and owners about biomass. He also encourages farmers to reach out to their contact person at DLG if questions arise.

Potential to degas more animal manure.

Today, it is approximately 25 percent of Danish agricultural manure, corresponding to 10 million tons. which is delivered to a biogas plant. Thus, there is still a huge potential for even more animal manure to be used for energy production and still contribute fertilizer value in crop production.

*Initially, farmers can enter into an option or supplier agreement with BioCirc Group, where they can collect their manure and at the same time get back a degassed declared fertilizer product that has a lower climate footprint. The option agreement is not initially an actual supplier agreement. Initially, it is primarily option contracts that will be subscribed. This is because BioCirc is in the process of obtaining environmental approvals and approvals for expansion of existing plants before the option agreement can become a supplier agreement.

In certain geographical areas, however, it will soon be possible for the farmer to have his manure purchased.