Farmer’s engineering skills make farm net electricity producer

A mechanically minded Yorkshire farmer has made the family farm a net electricity producer by capitalising on tariffs and applying his engineering skills.

Former oil industry engineer and mixed farmer Mark Hutchinson, of Spikers Hill Farm near Scarborough, returned home in 2008.

On his return he bought a second farm – Magdalen Grange, 10 miles away near Filey – and installed solar and wind power on both holdings to supply power.

See also: Farm businesses facing energy bills increase of up to 400%

The big investment came in 2016, when the farm bought a gas-fired, combined heat and power (CHP) unit using woodchip. This made the business self-sufficient in electricity. 

He made the most of the Renewable Heat Inventive (RHI) payments, Feed-in Tariffs (Fits) and Renewable Obligation Certificates (Rocs) on offer at the time, many of which run for 20 years.

Today, the farm sells about two-thirds of the electricity it produces back to the grid.

Mark Hutchinson with CHP unit

© MAG/Michael Priestley

Farm Facts

  • Finishing 120 Angus-cross cattle
  • Supplying Dovecote Park
  • Close to 240ha (1,000 acres) farmed, of which 24ha (59 acres) is grassland
  • 295ha (730 acres) owned, the rest is rented
  • Growing malting barley, feed wheat, beans and rape and renting out land for potatoes

Early adopter

After completing an engineering degree and spending 15 years in oil exploration, energy was at the forefront of Mr Hutchinson’s mind at the start of his farming career. 

He admits that it could be harder now for businesses to make investing in renewables stack up, but the higher electricity prices mean the savings are bigger.

The farm business benefits from the CHP unit, as it can dry grain for no cost. About half of the 2,000t of grain the farm produces was dried this year – each crop is dried in one go as a 500t batch over a vented floor.

The woodchip – mostly from local sawmills – must be chunky and have a low bark content, and is heated to produce a gas.

Woodchip costs about £40,000/year, but saves £30,000-£40,000 in fuel and generated £100,000-worth of electricity last year.

The cattle sheds at Spikers Hill run east to west, meaning a south-facing roof can be used to position solar panels.

A multipurpose shed supports the solar panels at Magdalen Grange, which also has a south-facing roof.

Cattle are checked using a rechargeable all-terrain vehicle, powered by the farm’s electricity. Cattle are bedded on straw in winter, as the woodchip is relatively expensive.

Tips for farmers

  • South-facing roofs are best for solar panels
  • Estimate wind speed considering prevalent winds, hills, and trees before siting a turbine. (Lowering the tower on the Gaia turbine from 18m to 15m due to planning restrictions when relocating almost halved production from 40,000kWh to 22,000kWh)
  • Insulation is the best investment – look at flooring and walls as well as roof cavity
  • Solar and wind sources benefit from free fuel, but CHP/biomass options are not weather dependent
  • 1kW of wind gives 3,0000kW/year, compared with 1,000kW of solar
  • Planning permission and grid connection can be the biggest drawbacks – seek advice if needed
  • Three-phase power is needed for larger projects. Small projects are fine on single phase

Pros, cons and earnings of renewables

 

Generation method

Positives

Negatives

Income and use

Solar panels

 

20kW at home placed on cattle shed roofs

 

10kW at Magdalen Grange on multi-purpose shed

 

Both installed in 2012, capitalising on Feed-in Tariffs

Makes use of otherwise idle roof space

 

Does not take up farmland

 

No labour input and very simple to run

More intermittent form of energy

 

Not much production from November to March

 

Low energy generation – 10kW equates to about 35 panels

10kW of panels produces about 10,000kWh/year

 

Tariff = 15p/kWh

 

Panels at Spikers Hill cost £10,000 and were paid off in about seven years

Wind turbines

 

A 13kW Gaia turbine cost £30,000 in 2010

 

A larger 50kW Endurance turbine cost £250,000 in 2021

Good performance from both

 

A 20kW wind turbine produces three times the power of a 20kW solar system

Big bills when things go wrong

 

Facing a £30,000 cost to replace blade holders

 

Relocation halved output on Gaia

Gaia 22,000kWh/year

 

Endurance will produce about 190,000kWh/year

 

Tariff= 30p/kWh

 

Together they bring in about £70,000/year

CHP unit

 

Installed in 2016 for £250,000

 

Heat is used to dry woodchip and grain through a vented floor

 

Runs 7,000-8,000 hours a year

 

Produces huge amounts of energy (350,000kWh/year) and not weather dependent

 

Both heat and electricity from gas produced from heating woodchips (pyrolysis) can be used by the farm

On a bad day it can take all day to fix

 

Big outlay but quick payback of five years

 

Woodchip cost £40,000/year

RHI = 640,000 kWh at 6.7p/kWh

 

Rocs = 350,000kWh at 9.5p/kWh

 

Can export power to grid at 15p/kWh

 

Produces about 90% of the farm’s renewable energy

 

Brings in about £80,000/year

Ground source heat pump

 

Installed in 2019 for three holiday lets at Magdalen Grange for £30,000

Not much work

 

Very little visual disturbance

 

Constant, low-energy source

 

Heating costs reduced by 60% compared to original wall-mounted electric heaters

Needs well insulated properties to benefit most

Paid off in 10 years with RHI alone (10p/kWh)

 

But paid off in five years when factoring in the electricity savings

Biomass boiler

 

Installed January 2010

 

Heats five properties at Spikers Hill, including farmhouse

Only requires 500 bales of straw/year

 

Easy to operate, fill and maintain

Higher installation cost than oil boiler, at £30,000

RHI = 9p/kWh up to 110,000kWh/year

 

RHI paid off investment in three years