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Business Model Case studies

and Methodology for the


Farming and Forest Sector
This document was prepared
in the framework
of the AGRIFORVALOR project

(Grant Agreement 696394)

28.08.2018

Authors:
Katalin Kurucz1, Cristina Cabeza², James Gaffey³, Hartmut Welck4
1
Bay Zoltan Nonprofit Ltd., Hungary
2
Agencia Andaluza del Conocimiento
Consejería de Economía, Spain
³ Institute of Technology Tralee, Ireland
4 Steinbeis 2i GmbH, Germany

All rights reserved @ AGRIFORVALOR Project

www.agriforvalor.eu
www.facebook.com/agriforvalor
www.twitter.com/agriforvalor

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Content

1 About AGRIFORVALOR......................................................................................................... 5
2 Summary ................................................................................................................................ 5
3 Methodology to engage farming / forestry sector in the business modelling process .............. 6
4 Selection of “The Best Business Model“ ................................................................................. 7
Circular CANVAS business model................................................................................. 7
Methodology for scoring the best business model ......................................................... 8
5 Innovation Partnership Groups that competed with their Business Models ............................. 9
Business models from the Irish hub............................................................................... 9
5.1.1 BioReFARMERies - Small-scale Farmer Led Green Biorefineries............................... 9
5.1.2 Biochar for Farm Bioeconomy ................................................................................... 10
5.1.3 Bioterm - Transformation Terminal for Local Biomass Supply Chains ....................... 11
5.1.4 Biorefining of sugar beet for food, feed, biochemical/polymer applications ................ 12
Business models from the Hungarian hub ................................................................... 14
5.2.1 Production of eco-insulation material using wood bark .............................................. 14
5.2.2 A regional service package for technology including seeds for medicinal plants ....... 15
5.2.3 Developing a new Woodchip-based Scrap Board ..................................................... 16
Business models from the Andalusian hub .................................................................. 18
5.3.1 Production of biofertilizers from the washing sludge of olives and oil (oil mill rafts)
and litter ............................................................................................................................. 18
5.3.2 Transforming solid and liquid digestates from biogas plants into biofertilizers....... 19
5.3.3 Valorisation of asparagus industry waste & by-products into fibres for agricultural
and industrial applications .................................................................................................. 20
6 The winners of The Best Business Model Awards ................................................................ 22
The Best Business Model Awards ............................................................................... 23
Awarding Ceremony at the Final Conference .............................................................. 23
7 Contact ................................................................................................................................. 24

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
3
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

List of figures
Figure 1: Circulab Business Model ............................................................................................. 7
Figure 2: Circular Business Model on Small-scale Farmer Led Green Biorefineries ................. 10
Figure 3: Circular Business Model on Biochar for Farm Bioeconomy ....................................... 11
Figure 4: Circular Business Model on Transformation Terminal for Local Biomass Supply
Chains ..................................................................................................................................... 12
Figure 5: Circular Business Model on Biorefining of sugar beet for food, feed,
biochemical/polymer applications............................................................................................. 13
Figure 6: Circular BM CANVAS on bark valorization ................................................................ 15
Figure 7: Circular BM CANVAS on biogas digestate valorization ............................................. 16
Figure 8: Circular BM CANVAS on wood chips valorization ..................................................... 17
Figure 9: Circular Business Model on Production of biofertilizers from the washing sludge of
olives and oil (oil mill rafts) and litter......................................................................................... 19
Figure 10: Circular Business Model on Transforming solid and liquid digestates from biogas
plants into biofertilizers............................................................................................................. 20
Figure 11: Circular Business Model on Valorisation of asparagus industry waste & by-products
into fibres for agricultural and industrial application .................................................................. 21

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
4
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

1 About AGRIFORVALOR
AGRIFORVALOR is a Horizon 2020 project that works on closing the research and innovation
divide by connecting enterprises with research and academia in multi-actor innovation
partnership networks in order to exploit biomass from agriculture and forestry.
AGRIFORVALOR builds on the principles of EIP AGRI and supports effective exchange of
existing knowledge on innovative approaches on sidestream valorisation and bioeconomy
implementation for agriculture and forestry sectors.
Three AGRIFORVALOR Biomass Innovation Design Hubs have been set up in Spain
(Andalusia), in Hungary and Ireland, respectively. The hubs’ members’ shared research results
and good practice on valorisation of biomass sidestreams from agriculture and forestry and
matched with the specific regional needs and opportunities in each hub. Hub managers
collected new grass-roots ideas and cooperated with the idea owners on developing them into
near the market products. Dedicated innovation support was supplied to selected topics within
multi-actor innovation partnership groups.
AGRIFORVALOR consortium works on sharing best practice and research results that are near
to market with a focus on facilitating market uptake and exploitation with the development of
new business model concepts and supply chain strategies for agriculture and forestry sectors.
All three partner countries or regions (Spain/Andalusia, Ireland and Hungary) in
AGRIFORVALOR set up their own national or regional Biomass Innovation Design Hub in the
first project year. The hubs collected and disseminated information on best practice in biomass
sidestream valorisation the first project year. The best practice examples are available in the
Biomass Sidestream Value Tool on the AGRIFORVALOR website1.

2 Summary
This brochure summarizes the information relating to the business model development including
the methodology on how to engage with the farming/ forestry sector and awarding process. Out
of 10 Innovation partnership groups (IPGs) receiving support in entrepreneurial trainings and
business modelling, 3 best business models were selected and awarded.
Best awarded circular business models
 Organic compost from olive mill residues (Andalucia)
 Bark-based Insulation Material (Hungary)
 Small-scale Grass Biorefineries (Ireland)

1 www.agriforvalor.eu/downloads

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
5
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

3 Methodology to engage farming / forestry sector in the business


modelling process
Several regional and national networking events, workshops and discussions were held in
the three hubs in Ireland, Spain and Hungary where innovative ideas for biomass sidestream
valorisation opportunities were identified. In addition to searching for near-to-market
applications, the hubs have also worked to finding new grass roots ideas through design
thinking workshops. Each hub manager then worked with the idea owners to set up Innovation
Partnership Groups (IPGs) on idea to business model development.
Basis for the business modelling process were hence the IPGs which consist mainly out of
Farmers/foresters, (bio)industry and research organizations.
IPGs got different support services: Exploitation trainings were offered along the following
aspects: e.g. legal issues (IPR), innovation management, financing opportunities and
bioeconomy principles) training on entrepreneurship skills necessary to set up new start up
companies.
Business model development trainings were also offered including trainings on:2

 Strategy and Organisation;

 Social Enterprise Development;

 Business Planning and Models;

 Commercialisation and Intellectual Property Rights;

 Finance and Marketing

 Networking and Negotiation


These trainings were complemented with IPG specific mentoring and coaching services by
the hub managers to help them to prepare their own business models using the circular
Business Model Canvas.
The aim of these support activities was to:
- help the capacity building in entrepreneurship of the members of the IPGs (primarily
farmers and foresters)
- initiate new business-concepts by developing of at least 3 business models using the
circular CANVAS Model per hub
- trigger new start-ups around innovative (grass roots) Business Models.
After the Business modelling process, first a national/regional and afterwards an international
competition was launched among the Business models described along the Circular Business
Model CANVAS methodology in order to define the best Business Model per hub.
The Best Business Models received their awards during a ceremony at the AGRIFORVALOR
closing conference in Brussels, on 6 July 2018.

2 Documents available under www.agriforvalor.eu/downloads, rubric: Academy

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
6
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

4 Selection of “The Best Business Model“


Circular CANVAS business model
For awarding The Best Business Model label, the circular CANVAS business model was chosen
as basic descriptive method. Incorporating CANVAS to describe the ideas in the Innovation
Partnership Groups provided a standardized format that allowed to compare business models
and it ensured consistency among the hubs.
The circular CANVAS business model used by the hubs to describe the business models of the
Innovation Partnership Groups include information about the special value proposition of the
IPG. The value proposition communicates the number one reason why a product or service is
best suited for a customer segment. It lists the natural, technological and energy resources
used; provides the list of partners and the planned key activities of the IPG.
Being a circular model, it elaborates the upcycling opportunities (that is the creative reuse, or
the process of transforming by-products, waste materials, useless, or unwanted products into
new materials or products of better quality or for better environmental value) at the end of the
life of the product – how they can be reused, repaired or recycled? It challenges groups to think
about their customer relationships, revenue streams and cost structure.

Figure 1: Circulab Business Model3

3 Source: http://circulab.fr/wp-content/uploads/2015/09/circulab-board2.pdf

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
7
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Methodology for scoring the best business model


Each Innovation Partnership Group idea described along the circular CANVAS model could
score with 100 points max.
70 % of the scoring was allocated on the aspects Partners, Key activities, Key Resources,
Value Proposition, Customers and contexts, Distribution and Upcycling.
30 % of the scoring was allocated to key criteria by the AGRIFORVALOR consortium (Multi-
actor involvement, Sustainable differential advantage, Range of applications, Commercial
Viability, Serving customer needs, Scalability, Transferability to other regions and/or sectors
with similar preconditions, TRL level improvement). Extra information on cost structure and
revenue streams within the canvas could also gain extra marks here at discretion of hub.
The hub managers and Steering Committees did the scoring as they have worked closely with
the IPGs. Each hub awarded one best business model.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
8
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

5 Innovation Partnership Groups that competed with their Business


Models
Business models from the Irish hub
The Irish Innovation Partnership Groups chose to work on ideas that introduce the
cascading approach to biomass. 5 “ideas” covering a fresh grass biorefinery idea, a
biochar idea, biogas and energy production ideas and the valorisation of sugar beet idea
were at the centre of the Irish biomass hub's attention.

Out of the five AGRIFORVALOR Innovation Partnership Groups set up in Ireland, 3


applied for funding for an EIP AGRI Grant, and two of these received funding.

5.1.1 BioReFARMERies - Small-scale Farmer Led Green Biorefineries


Taking into account that 90% of Irish agricultural land is grassland, this operational group set
out to demonstrate a small-scale grass biorefinery that could be integrated widely into traditional
Irish agriculture. Their value proposition is natual ressource / climate effect.
The initiative involves a fresh grass biorefinery model which attempts to improve the usable
protein per hectare of grass whilst helping farmers to diversify their product base. Monogastric
animal feed is produced, in addition to an optimized cattle feed which each animal receiving the
grass protein fraction that they utilise most effectively. The production of sufficient supplies of
indigenous protein is a key concern for Ireland that currently imports about two thirds of its
overall feed. Additional high value products, including pre-biotic sugars are produced in the
process. The unit is being designed with a growing level of automation to improve opportunities
for primary producers or contractors to become bio-processors. The unit is mobile, so the
demonstration will take place on a number farms, ensuring that circular principles can be
applied to unutilized minerals. Nitrogen, Phosphorus and Potassium can be separated in the
refinery and reapplied to land as necessary. In this way, manure and ammonia emissions can
be addressed at the front end of the cow. With agricultural emissions accounting for over a third
of overall GHG emissions in Ireland, this is a key opportunity for Ireland to decarbonize its
agricultural sector.
The group has a novel approach to structure and getting products to market, and bioeconomy
business model development is envisaged as part of the knowledge transfer activities. The
group have been successful in receiving phase 1 approval through EIP-Agri 2017 and are
currently in the process of submitting a second phase 2018 application for full funding.
The Group includes Carbery Food Ingredients (Farming Co-op), Barryroe Co-op, Institute of
Technology Tralee, University College Dublin and GRASSA B.V.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
9
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Figure 2: Circular Business Model on Small-scale Farmer Led Green Biorefineries

5.1.2 Biochar for Farm Bioeconomy


The focus of this operational group was on developing a feedstock flexible mobile biochar unit,
which would allow farmers to improve their on-farm productivity by producing a soil additive to
improve fertility and promote carbon sequestration, or as a valuable feed source from residues
generated on farm. An innovation partnership group was supported by AGRIFORVALOR
towards an operational group for national funding to build a mobile pyrolysis unit. This pyrolysis
unit will be used to test a variety of feedstocks for biochar production creating significant
quantities which would allow further research on the potential feed and soil amendment
properties of biochar produced from various agricultural sources. Biochar could play a key role
in carbon sequestration and the unit is powered using waste heat from the production process.
The group received funding of €995,000 from 2017 phase 2 application in order to build the unit
and carry out its project over a 4-year period.
The group includes The Irish Biochar Co-operative, University College Dublin, Premier Green
Energy and IBEC (AGRIFORVALOR partner).

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
10
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Figure 3: Circular Business Model on Biochar for Farm Bioeconomy

5.1.3 Bioterm - Transformation Terminal for Local Biomass Supply Chains


In order to improve routes to market for underutilized biomass and to address issues of scale,
another operational group was established to test the viability of a Biomass Trade Centre. Such
a centre may represent an opportunity to add value and create markets for local wood residues,
forestry thinning, miscanthus and agri-residues through a co-operative approach with suppliers
and operators in the region coming together to make it a viable and replicable business. Starting
from virgin fibre and other residues the project would test a range of added value products such
as quality assured woodchip, biomass briquettes, bio-coal production (through torrefaction) as
well as non-combustion products (poultry and cattle bedding). The project could substantially
improve rural employment while decarbonising the local rural economy in three ways: displacing
fossil fuels imports, reducing long haulage requirements for low value raw materials and by
enabling the continued development of Ireland young forest resource as carbon sink, by
facilitating much needed local markets for thinnings. The Operational Group applied for funding
through the EIP-Agri program in 2017; however, it was unsuccessful in its application.
The group members include Kantoher Development Group, Teagasc (AGRIFORVALOR
partner), Limerick & Tipperary Wood Producer Group, BHSL Hydro Ltd, Irish Eco Fuels and
Waterford Institute of Technology.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
11
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Figure 4: Circular Business Model on Transformation Terminal for Local Biomass Supply Chains

5.1.4 Biorefining of sugar beet for food, feed, biochemical/polymer


applications
Recognizing the CAPEX barriers associated with traditional large-scale beet production, this
operational group developed around a small-scale sugar beet bio-refining technology which
provides an innovative and efficient solution to reduce the large heat demands of traditional
beet production and to avoid transportation costs. Through the addition of an anti-solvent the
solubility of sugar in water is reduced, allowing the crystallization of sugar to occur at relatively
high-water concentrations, replacing three processing steps of the traditional large-scale sugar
refinery with one efficient step, to allow competitive beet refining at a fraction of the scale. Since
the viscosity of the mixture is much lower than a sugar/water mixture, the sugar crystals can be
harvested without the need for energy intensive centrifugation and the anti-solvent is recovered
and recirculated in a closed loop system. In this way, a reduction of approximately 50% of
energy requirements of beet processing could be achieved. Sugar can be sold to the food
market (locally, displacing imports) but could also be used for fermentation uses including
chemical building blocks using a decentralized approach. The residues contain a low volume
but relatively high value amino acid, while pressed sugar beet pulp has a very high feeding
value for cattle. The operational group developed a concept which included improvements on
beet growing techniques, demonstration of new small-scale biorefinery of sugar, including for
biopolymer production and business model development. The application, however, was not
successful in its application for funding to the 2017 EIP-Agri program.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
12
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

The Group includes Institute of Technology Tralee, the Irish Farmers Association, Teagasc,
Limerick Institute of Technology, University College Cork, Bord Bia and Prokris Technologies.

Figure 5: Circular Business Model on Biorefining of sugar beet for food, feed, biochemical/polymer
applications

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
13
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Business models from the Hungarian hub


The Hungarian Biomass Innovation Design hub concentrated on relevant issues in
biomass sidestream valorisation that offer possible solution for obtaining products of
added value from biomass. Energy production being at present the most frequent
product of biomass use; the Innovation Partnership Groups aimed at introducing new
technologies for valorisation purposes other than energy or fuel production to diversify
the market and obtain new opportunities in otherwise unused niches. All 3 IPGs worked
on biomass sidestreams that are otherwise quite difficult to use for industrial purposes
(bark, biogas digestate and wood chips).

5.2.1 Production of eco-insulation material using wood bark


Hardwood bark is produced in a large amount in more Hungarian sawmills as a by-product. Its
estimated quantity is around 500.000 m3 annually and it is mostly used for energy production.
The bark-based insulation material was developed at the Innovation Center of University of
Sopron. The developers selected the most appropriate types of bark for the innovative use of
this raw-material; and determined the optimal compression level for producing bark insulating
panels. The insulating capacity of plant-based panels approaches the best artificial insulating
materials. The product is currently on TRL level 7, and it is near to the large-scale production.
The Innovation Partnership is going to help to take this final step towards to the market. The
project involves the use of bark-based biomass that was identified in the business cases for
Hungary within AGRIFORVALOR project.
Members of the Innovation Partnership group are University of Sopron and NARIC Forestry
Research Institute.
The value proposition of this Canvas was considered strong, with similar products already on
the market in other EU countries. The product has a well-defined application providing a viable
route to market – however distribution channels need to be more clearly defined.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
14
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Figure 6: Circular BM CANVAS on bark valorization

5.2.2 A regional service package for technology including seeds for


medicinal plants
The IPG works on valorising biogas digestate that is the end product of anaerobic fermentation
of biogas production. The project aims to determine a new cultivation technology that includes
the use of biogas digestate as organic fertilizer and a germination promoting carrier of seeds. In
order to do this, the seeds and the digestate will be sown together to serve as a starter organic
fertilizer limited only in the seedbed.
The new technology will be combined with the introduction of growing medicinal herbs in line
with the possibilities that the given plantation area offers. The project also involves to some
extent the use of straw that was identified in the business case for Hungary within the project.
These elements will be used in an integral way to produce new nutrient-recycling methods in
agriculture for improving soil fertility.
This business Canvas contains strong and wide-ranging partnerships with steps to bring
product to market well detailed. Farmer can benefit from technology which can be customised to
their needs. The product is considered commercially viable although investment is needed to
make it profitable
The Operational Group applied for funding through the EIP-AGRI program in 2017; however,
the result of this application is not announced yet.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
15
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Members of the Innovation Partnership group are two companies (Csókaerdő Kft. and Nagy-
Gombakert Kft.); a research institute: MTA ATK TAKI (Institute for Soil Sciences and
Agricultural Chemistry, Centre for Agricultural Research, Hungarian Academy of Sciences), 2
farmers; 3 counsellors and the Local Government of Bács-Kiskun County.

Figure 7: Circular BM CANVAS on biogas digestate valorization

5.2.3 Developing a new Woodchip-based Scrap Board


This Forestry Innovation Partnership Group aims to valorise woodchips and to develop an
innovative chipboard (WBS - Wood-chips Based Scrap board) manufactured from this low-value
raw material. Woodchips are produced primarily in short-rotation coppices, or they come as a
processing waste from the timber industry. Wood-chips are produced as a by-product during
wood processing in an annual volume of 275000 m3. Additionally, it is produced as a main
assortment in energy plantations.
The glued and pressed scrap board has several practical uses e.g. construction, furniture or
packaging industry. The expected physical characteristics of this WSB panels are close to OSB
panels, already widely used in the building and furniture industries.
The development is currently at low TRL level. The next development phase will include the
preparation of specimen boards and the testing of different raw material types. The lab tests are
planned to start in the frame of a PhD project at the University of Sopron in September 2018.
This canvas was deemed to have a strong value proposition given its high marketability and
advantages over competing products. The fact that the product can be used multiple times
indicates strong upcycling potential.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
16
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

The members of the IPG are NARIC Forest Research Institute, University of Sopron and Zala
County Foundation for Enterprise Promotion.

Figure 8: Circular BM CANVAS on wood chips valorization

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
17
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Business models from the Andalusian hub


The Andalusian Biomass Design Hub concentrated on agricultural residues as biomass
sidestreams that are available in large quantities in the region, especially, on olive
wastes due to its high processing. The production technologies of biofertilizers from agri
sidestreams and the use of asparagus industry waste and valorising them as fibre for
industrial applications were in the limelight of the Andalusian hub.

5.3.1 Production of biofertilizers from the washing sludge of olives and oil
(oil mill rafts) and litter
This Project consists of the start-up of a composting plant from the collection of sludge from
olive mills and olive leaves, its subsequent digestion (5-7 months) and maturation (2-4 months).
By means of applying innovative techniques of composting and vermicomposting, a high quality,
economical organic fertilizer that can be obtained and used in all types of agriculture. In
addition, the project includes awareness and dissemination actions among cooperatives, oil
mills and farmers, with the aim of carrying out a knowledge transfer that contributes to the
modernization and efficiency of the olive sector.
The value proposition is based on its potential to valorise waste with high environmental impact
(olive mill waste) while achieving a reduction in costs at the industries generating the waste. It
also obtains a final product with economic value and contributes to “zero waste”.
Cooperativa San Isidro de Loja, SCA submitted a proposal to the EIP-AGRI 2017 regional call,
and received 176,688 euros funding.
This project started in 2018 and it will entail clear environmental benefits such as the reduction
of the cumulative load of the waste in the mills, prevention of erosion and desertification, thanks
to the increase of the organic matter in the soil, improvement of the quality of water and
prevention of climate change. From the point of view of oil mills, cooperatives and producers, a
more efficient, sustainable and competitive olive production will be achieved.
The group includes Cooperativa San Isidro de Loja, SCA, Cooperativas Agroalimentarias de
Andalucía and the Andalusian Council of official Colleges of agricultural technical engineers.
Furthermore, University of Granada and Estación Experimental del Zaidín (Spanish Council of
Research) are also involved in the project development.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
18
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

Figure 9: Circular Business Model on Production of biofertilizers from the washing sludge of olives and oil
(oil mill rafts) and litter

5.3.2 Transforming solid and liquid digestates from biogas plants into
biofertilizers
Agroenergía de Campillos owns and operates an anaerobic digestion plant in Andalusia (the
"Campillos Biogas Plant"). The plant transforms pig slurry and other organic waste (food
industry waste, olive mill waste, etc.) into biogas. The process generates as by-product a
digestate (both solid and liquid fraction), that due to the high content in N of the input material
(mostly linked to pig slurry), contains high N levels.
The project aims at valorising this digestate by:

 Separating the digestate into a liquid and a solid fraction


 Composting, drying out and pelletizing the solid digestate, to obtain a solid biofertilizer
with high quality to be employed in agriculture.
 Applying to the liquid digestate a partial nitrification and annamox process, which would
permit to reduce N levels in the digestate, whilst maintaining P and K levels. This would
foster its application as biofertilizer in the area surrounding the biogas plant, whose
groundwater are currently polluted with N due to the intense pig farming activity.
Whilst the separation of the two fractions of the digestate and the process to obtain the solid
biofertilizer are already commercially available, the treatment of the liquid digestate is a
biological process that should be first conducted at pilot scale, to tune up the process and,
specially, to develop and calibrate a monitoring system that permit to optimise the process.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
19
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

In this sense, the partial nitrification and annamox process foreseen is a cost-efficient
technology with investment and operation costs much lower than existing N-recovery
technologies (e.g. N-stripping). Therefore, the project will permit to provide biogas plants with
new cost-efficient alternatives to minimise the environmental impact of their operation, whilst
valorising the digestate into new formats of biofertilizers more easily applicable by farmers.
The value proposition is based on its potential to valorise waste with high environmental impact
(pig slurry) while providing a final product with high economic value and that can also offer
environmental benefits.
The Group is led by Agroenergía de Campillos.

Figure 10: Circular Business Model on Transforming solid and liquid digestates from biogas plants into
biofertilizers

5.3.3 Valorisation of asparagus industry waste & by-products into fibres for
agricultural and industrial applications
The project focuses on the waste and by-product of the asparagus industry. This processing
industry generates as a result wastes rich in fibres (mostly non-processed parts of the
asparagus), whose management induces significant operation costs.
In this context, the project aims to apply a bio-fermentation process to these asparagus (using
micro-organisms and enzymes), in order to achieve two fractions: a solid and a liquid fraction,
rich in different fibres. These fractions can then be used by different industries and sectors,
mostly:

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
20
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

 Agricultural sector, for its use as biofertilizer


 Agri-food industry, for its use in the formulation of foods rich in fibre
 Paper industry, for its use as alternative to other fibres
 Plastic industry, as potential material for the formulation of bioplastics
The project requires of experimental development to optimise the bio-fermentation process,
characterise the liquid and solid fractions obtained and to conduct the economic assessment of
the process.
The value proposition in this case is based on the valorisation of asparagus waste, with medium
to low environmental impact. It achieves a reduction in costs in the industries generating the
waste and versatility, but requires further treatment by end-users in order to adjust it to their
particular needs. Regarding the environmental aspects, it contributes to "zero waste" and
provides environmental benefits through the valorisation of waste and the obtention of
bioresources with applications in other sectors/industries.
The Group is led by Innoplant -Tecnología e Investigación Agrícola, S.L.

Figure 11: Circular Business Model on Valorisation of asparagus industry waste & by-products into fibres for
agricultural and industrial application

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
21
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

6 The winners of The Best Business Model Awards

Organic compost from olive mill residues (Andalusia, Spain)


Partners: Cooperativa San Isidro de Loja, SCA; Cooperativas Agroalimentarias de Andalucía;
Andalusian Council of official Colleges of Agricultural Technical Engineers; University of
Granada; Estación Experimental del Zaidín (Spanish Council of Research).
The Business model refers to launching a composting plant using sludge from olive mills and
olive leaves. By means of innovative techniques of composting and vermicomposting, a high
quality, economical organic fertilizer that can be obtained and used in all types of agriculture.
The project includes awareness and dissemination actions among cooperatives, oil mills and
farmers, with the aim of carrying out a knowledge transfer that contributes to the modernization
and efficiency of the olive sector.

Bark-based Insulation Material (Hungary)


Partners: University of Sopron; NARIC Forestry Research Institute
The Business model refers to the production of the most environment friendly thermal insulation
material similar to what has been used by trees for thousands of years. This is the insulation of
the nature combined with high technology.
Environment friendly insulation materials provide the CO2-neutral insulation materials and have
high insulation performance. Besides, they provide a lot higher specific heat than traditional
foam or fibre insulation materials. The higher specific heat increases the comfort of municipal
and residential buildings. Bark insulation materials is not vapor barrier and by this the building
can breathe. The main customers are families and companies wishing to build healthy buildings
and having an environment-conscious way of thinking.

Small-scale Grass Biorefineries (Ireland)


Partners: Carbery Food Ingredients (Farming Co-op); Barryroe Co-op; Institute of Technology
Tralee; University College Dublin; University College Cork; GRASSA B.V.
The Business model refers to a fresh grass biorefinery model that attempts to improve the
usable protein per hectare of grass whilst helping farmers to diversify their product base. As a
result, monogastric animal feed is produced, in addition to an optimized cattle feed which each
animal receiving the grass protein fraction that they utilise most effectively. The production of
sufficient supplies of indigenous protein is reduces import-dependency for Ireland. Additional
high value products, including pre-biotic sugars are produced in the process. The unit is being
designed with automation to improve opportunities for primary producers or contractors to
become bioprocessors. Demonstration will take place on a number farms, ensuring that circular
principles can be applied to unutilized minerals. Nitrogen, Phosphorus and Potassium can be
separated in the refinery and reapplied to land as necessary. This is a key opportunity for
Ireland to decarbonize its agricultural sector. The group has a novel approach to structure and
getting products to market, and bioeconomy business model development is envisaged as part
of the KT activities.

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
22
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

The Best Business Model Awards

Picture of the awards4

The awards have been prepared by University of Stuttgart and they consist of a high-density
flexible fiber board patented under the name Bioflexi©. This material is made of up to 80-90%
agricultural waste materials that do not stand in competition with food production. Bioflexi is
recyclable, compostable, and free from harmful additive and biodegradable components.

Awarding Ceremony at the Final Conference


The Best Business Models received their awards at the ceremony at the Final Conference of
the AGRIFORVALOR project on 6 July 2018 in Brussels:5

From left to right: Katalin Kurucz (Hub manager Hungary) took the prize for Zoltán Pásztory
(winner team from Hungary), José Antonio Camacho, Cristina Cabeza (Hub manager
Andalusia), Mercedes Rodríguez, Antonio Rodriguez (winner team from Andalusia), Johan
Sanders (winner team from Ireland), James Gaffey (Hub manager Ireland).
See also blog under www.agriforvalor.eu/news.

4 Photo: University of Stuttgart, Institute of Building Structures and Structural Design


5 Photographer: Alexander Louvet, © Steinbeis 2i GmbH

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
23
Business Model Case studies and Methodology for the Farming and Forest Sector
Bringing added value to agriculture and forest sectors by closing the research and innovation devide

7 Contact
Hartmut Welck (Coordinator) welck@steinbeis-europa.de
Steinbeis 2i GmbH, Germany www.steinbeis-europa.de

The project started on 1 March 2016 and finishes on 31 August 2018.


Website: www.agriforvalor.eu

This project has received funding from the European Union’s Horizon 2020
research and innovation programme under grant agreement No 696394.
24

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