carbon credits

Byproducts or "Everyone Wins"

Of significant importance in our approach is the holistic, system methodology that differentiates us from conventional growers. Rather than the traditional linear model, which encourages consumption of “resources” and generation of “wastes”, we ask the innovative question, inspired by nature: “For what are inputs and outputs of any given system useful?” In nature, there is no waste. All natural outputs are inputs for another system. Humankind is unique in our generation of wastes that do not fit into natural systems. Part of our business model integrates this approach into industrial partnerships to reveal opportunities, reducing waste and providing us with inputs. This model reduces our costs of production and is an example of differentiation and competitive advantage.

Spent mushroom substrate (a byproduct/output) can be sold to cattle and hog farms. It is a high protein/nutrient feed with conversion rates of 5:1 for beef and 7:1 for pork (5 pounds of SMS yield 1 pound of beef). Dairy farms seek this source of high protein feed additive, using it as a component for their total mixed ration at up to 18% of dry matter content. It is instructive to contrast with the brewery output of spent grain, which becomes an input for Mana Mushrooms. In the current model, spent grain is sold to farmers or given away in trade for the cost of hauling it. This provides the farmer with a component for their TMR. This component, however, is high in lignocellulose, which is difficult for the cattle to digest. Consequently, there is an undesirable increase in greenhouse gas (methane) emissions indicative of system imbalance. By inserting Mana Mushrooms’ process between the brewers and the farmers, everyone wins. The brewers still get their byproduct removed, the farmers get a higher protein and more easily digested component for the TMR, and Mana Mushrooms gets a material to use in its cultivation process. The environment gets a “win” as well: reduced greenhouse gas emissions. These represent yet another revenue stream in the form carbon credits. On the local scale, carbon offsets may not be a significant revenue source. Mana Mushrooms is actively engaged with a firm that produces 600 million tons of spent grain per year to develop improved systems to recapture value through creative partnerships. The downstream implications for emissions reductions and associated revenues are promising.

It is critically important to remember that breweries are only one example of industrial partnerships that can yield mutual benefits for all involved parties.

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