Implementing circularity in organic oyster mushroom production for enhanced environmental, economic, and social performance
Under standard European Union production methods, mushroom substrate is typically disposed of after a single use, which creates both financial costs and logistical challenges for farmers. The CO-FRESH project proposed a solution to implement a circular system for organic oyster mushroom production. This approach uses the spent mushroom substrate to create additional value through products like biogas and digestate, which can then be used as fertiliser for future substrate production, effectively closing the production loop.
The innovation addresses the wasteful and costly practice of disposing of spent mushroom substrate in the horticultural sector. A pilot case study in the CO-FRESH project, led by Pilze-Nagy Ltd in Hungary, demonstrates a circular system where nothing is wasted. In this model, the spent substrate is used in an anaerobic digester to produce biogas for renewable energy and a nutrient-rich “digestate”. This digestate is then returned to the fields as fertiliser, creating a zero-waste, sustainable production cycle.
The potential impact of this innovation is significant, offering environmental, economic, and social benefits. It provides farmers with opportunities for income diversification through the sale of fresh mushrooms, value-added mushroom products, and renewable energy (biogas). By creating a closed-loop system, it enhances sustainability, reduces waste, and promotes nutrient recycling. This model transforms a waste product into valuable resources, increasing the overall efficiency and profitability of mushroom farming.
The mushroom industry is Ireland’s largest horticultural sector, with a farm gate value of €119 million. Currently, the industry is not fully circular, and for every tonne of mushrooms produced, three tonnes of spent compost must be disposed of. Adopting a circular model presents a significant opportunity for Irish mushroom producers to enhance sustainability and diversify their income streams. This aligns with Ireland’s National Biomethane Strategy, which identifies the agri-centric biogas sector as a key diversification option for farmers. By leveraging its position as a leading producer of agricultural “waste” from spent substrate, the Irish mushroom industry could become a key player in the bioeconomy, providing substrate for biogas production and creating digestate for fertiliser.
Find out more about this innovation by contacting Leo on leo@erinn.eu.




