Cooperative Approaches to Facilitate the Use of Anaerobic Digesters on Dairy FarmsCarolyn LiebrandUSDA Rural Development

Biofuels: Prospects and Challenges in Development and PolicySouthern Association of Agricultural Scientists and Southern Rural Sociology Association Annual meeting, February 2, 2009

This presentation is based on the forthcoming RBS Research Report 217, Cooperative Approaches for Implementation of Dairy Manure Digesters to be published circa Jan/Feb 2009 by USDA/Rural Business-Cooperative Service.

What is Anaerobic Digestion?

Manure + Oxygen-limiting environment =

Biologically stabilized effluentand

Methane, Carbon Dioxide, Hydrogen sulfide

Biologically stabilized effluent

Reduced Odor Avoided lawsuits Regulatory compliance

Improved nutrient quality Avoided fertilizer purchases Sales

Reduced pathogens; weed see viability

Avoided herbicide purchases Easier to handle

Lower energy use (revenues/avoided costs)

Biologically stabilized effluent

Liquid fertilizer (sales/avoided purchases)

Separated solids Cow bedding (sales/avoided

purchases) Gardening products (sales)

(revenues/avoided costs)

Biogas

(revenues/avoided costs)

Flare Fuel for farm equipment

Power a generator for electricity Cogeneration: heat/hot water Mobile engines: remove H2S,

pressurize Pipeline: clean and condition Sell carbon credits

Biogas “Global Warming Potential” (1 CH4 ~ 21 CO2)

Qualified to receive carbon credit if: Net reduction of carbon emissions from base period Measureable and verifiable Clear ownership of claim

CCX 1 contract = 100 MT of CO2-e ; <100 contracts need aggregator One cow represents 5 metric tons/year CO2-e (methane from AD) ~ 20 cows/contract; < 2,000 cows need aggregator

But! Only 95 AD projects on dairy farms in

19 states (according to NRCS, 2007)

Less than 0.2 % of licensed dairy farms

Obstacles to adoption of anaerobic digesters for dairy manure

Anaerobic digester Capital cost Limited number of providers Lack of information Adapting digester to exiting manure system Additional demands on operator time and

skill

Obstacles to adoption of anaerobic digesters for dairy manure

Capturing value low rates paid by utilities interconnection issues inability to utilize effluent on farm

Bedding, fertilizer

inability to market products from effluent Bedding, fertilizer, soil amendment, carbon

credits, gas

Negotiation Prices and terms with utilities Digester providers Firms with organic waste

Possible Cooperative Roles

Services Technical assistance Digester management Back-up equipment Manure hauling Financial

Possible Cooperative Roles

Possible Cooperative Roles

Carbon Credit trading Inform members of the opportunity Engage brokers or act as broker Engage aggregators or act as an aggregator

(pooling) Joint venture with other co-ops for

aggregator services Engage or have verifiers on staff

Marketing Green electricity Digested solids; liquid effluent

Centralized digester

Centralized gas plant

Possible Cooperative Roles

Limited function - ? - multiple functions

Cooperation—more efficient/effective than each adopter “going it alone” ?

Benefits of acting cooperatively > costs?

Summary

Questions/Comments?

Carolyn.Liebrand@wdc.usda.gov202/690-1414