green valley dairy profile - university of arizonaoct 11, 2007 · *green valley engine has 15000...

Proceedings of the 6th Annual Arizona Dairy Production Conference October 11, 2007 Phoenix, AZ - 37

METHANE DIGESTION FROM A PRODUCER’S POINT OF VIEW

John Jacobs Green Valley Dairy

Green Valley, Wisconsin

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GREEN VALLEY DAIRY PROFILEGREEN VALLEY DAIRY PROFILE

2500 cows on site2500 cows on site2000 2000 –– 2150 milking2150 milkingBuilt in 2000 & expanded in 2001 as a Built in 2000 & expanded in 2001 as a mattress facility using sawdustmattress facility using sawdustUsed sand from 2003 thru 2005Used sand from 2003 thru 2005Introduced BioIntroduced Bio--Solids in January 2006Solids in January 2006

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DecisionDecisionInstall a Sand Separator / $350,000Install a Sand Separator / $350,000

Install a Methane Digester/ $2Install a Methane Digester/ $2--2 2 ½½ millionmillionPlug FlowPlug FlowComplete MixComplete Mix

Mesophilic (100 Degrees Fahrenheit)Mesophilic (100 Degrees Fahrenheit)Thermophilic (120 Degrees Fahrenheit)Thermophilic (120 Degrees Fahrenheit)

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Why Now?Why Now?

Long Term Solution to ManureLong Term Solution to ManureOdor Control (Problem w/Sand Separators)Odor Control (Problem w/Sand Separators)Grant AvailableGrant AvailableFavorable Green Power Buy Back RatesFavorable Green Power Buy Back RatesSatisfied Found Right Technology Satisfied Found Right Technology

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Benefits of SandBenefits of Sand

Forgiving of Management Forgiving of Management Cow Comfort=Higher ProductionCow Comfort=Higher Production

Better Traction=Lower Cull Rate (less injuries)Better Traction=Lower Cull Rate (less injuries)Better BreedingBetter Breeding

Udder Health=Lower Cull Rate (lower SCC)Udder Health=Lower Cull Rate (lower SCC)

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Disadvantages of SandDisadvantages of Sand

Disposal (Winter Spreading)Disposal (Winter Spreading)Use extra water (More Disposal Cost)Use extra water (More Disposal Cost)

Winter StorageWinter StorageSpreadingSpreading

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Cost Benefit AnalysisCost Benefit Analysis

$70,000Sand Disposal

$263,400$263,400$50,000$50,000Total Operating Expenses

$15000$0$0Digester Manure Reduction 5%

$50,400$0$0Manure Irrigation vs. Hauling

Net Operating Cost Savings $213,400

$50,000$0$0Extra H2O for Sand SeparationOr Sand Disposal

$0$0$50,000$50,000Increase Bedding FrequencyIncrease Bedding Frequency

$78,000$78,000$0$0Sand for BeddingSand for BeddingSand SepSand SepDigesterDigesterOperating CostOperating Cost

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Undeveloped OpportunitiesUndeveloped Opportunities

•Bio-Solids Sales $31,200 - $62,400

•Carbon Credits

•Excess heat energy

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Management Risks & UnknownsManagement Risks & Unknowns

Udder HealthUdder Health 100,000 SCC = $186,500100,000 SCC = $186,500Hospital waste milk (lost revenue)Hospital waste milk (lost revenue)Increased operating costs (drugs & labor)Increased operating costs (drugs & labor)

Cull RateCull Rate1% = $45,0001% = $45,000

Cow ComfortCow ComfortDeep Beds vs. BioDeep Beds vs. Bio--Solids on mattressesSolids on mattressesMilk Production 1lb = $100,000Milk Production 1lb = $100,000

Crop production increase, resulting from better Crop production increase, resulting from better manure application practicesmanure application practices

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The TransitionThe TransitionInterim Bedding SourceInterim Bedding Source

Sawdust Sawdust –– clinical mastitis increaseclinical mastitis increaseStraw Straw –– flies, and cow bunchingflies, and cow bunchingSoybean StubbleSoybean StubbleBioBio--solids not availablesolids not available

Milk Production Loss 5 lbs.Milk Production Loss 5 lbs.SCC 50,000SCC 50,000--75,00075,000CullsCulls

Injuries,30Injuries,30--50 head50 headClinical Mastitis, 30Clinical Mastitis, 30--50 head50 head

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Transition LessonsTransition Lessons

Critical to startCritical to start--up during mid summerup during mid summerFloor SurfacesFloor Surfaces

Grooved before sand removed.Grooved before sand removed.Sawdust!!Sawdust!!Straw = Flies and BunchingStraw = Flies and BunchingDo not mix beddingsDo not mix beddingsDry BioDry Bio--Solids to 33Solids to 33--34% DM minimum34% DM minimumDry wipe in parlor is criticalDry wipe in parlor is critical

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Digester Retention Time Digester Retention Time –– target 25target 25--30 days30 daysManure Production Manure Production –– 34 to 36 gal/cow/day34 to 36 gal/cow/day

GVD retention time 20 daysGVD retention time 20 daysResults in a manure preResults in a manure pre--heating step during extreme coldheating step during extreme coldSize generator to productionSize generator to production

Complete Mix Mesophilic Digester 3 cows/kwComplete Mix Mesophilic Digester 3 cows/kw80% of digestion occurs within first 48 hours80% of digestion occurs within first 48 hoursCopper Sulfate footbathsCopper Sulfate footbaths’’ –– lowers gas lowers gas production about 15%?production about 15%?Cow comfort with BioCow comfort with Bio--Solids comparable to SandSolids comparable to Sand

Questions AnsweredQuestions Answered

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After Separation 1After Separation 1stst PitPitlbs/ 1000glbs/ 1000gDM 2.8%DM 2.8%

1 year1 year99

4.64.613.413.4

Total Total N 22.4N 22.4P 7.7P 7.7K 16.7K 16.7

1 year1 year77

3.53.512.2712.27


1 year1 year3.73.7.96.96

13.813.8


1 year1 year5.85.85.55.53.53.5


To DigesterTo Digesterlbs/ 1000glbs/ 1000gDM 8.3%DM 8.3%

2nd Pit to Pivot2nd Pit to Pivotlbs/ 1000glbs/ 1000gDM 1.4%DM 1.4%

Solids lbs/ TonSolids lbs/ TonDM 37.5%DM 37.5%

Manure Nutrient Profile

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Are Digesters the Solution to Are Digesters the Solution to Manure Management Manure Management ??

Manure is nearly odorless!Manure is nearly odorless!Able to irrigate larger vol. of diluted soluble Able to irrigate larger vol. of diluted soluble nutrients when crops require it.nutrients when crops require it.

Lagoon nutrient stratificationLagoon nutrient stratificationPathogen kill is 98Pathogen kill is 98--100%100%Reduced road trafficReduced road traffic

More N and K appear to be splitting off into the More N and K appear to be splitting off into the liquid. liquid. PP22OO5 5 is split evenly. Soluble portion is split evenly. Soluble portion moving toward the liquid manure and the moving toward the liquid manure and the particulate portion staying with the solid.particulate portion staying with the solid.

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Project:Project:Complete Mix Mesophilic Methane Digester Complete Mix Mesophilic Methane Digester w/600 KW Cat Powered Genset & w/600 KW Cat Powered Genset & Manure Separation SystemManure Separation System

Capital CostsCapital Costs2 2 --1 million gal Digester Tanks1 million gal Digester Tanks $1,000,000$1,000,00011--600 KW Cat Powered Genset600 KW Cat Powered Genset $ 550,000$ 550,00022-- Fan Separator,Bldg &conveyerFan Separator,Bldg &conveyer $ 220,000$ 220,000Switch gear, controls, site work,Switch gear, controls, site work,pumper, wiring plumbing, etcpumper, wiring plumbing, etc $ 430,000$ 430,000TotalTotal $2,200,000$2,200,000

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MaintenanceMaintenanceRoutineRoutine $/yr$/yr

Oil change, plugs, Oil change, plugs, chiller repairs, regular enginechiller repairs, regular engineinspectioninspection $60,000$60,000

Escrow for RebuildEscrow for Rebuild60,000 hr60,000 hr $21,500$21,500($150,000 ~ 7yrs)($150,000 ~ 7yrs)

Annual Annual MaintainanceMaintainance $81,500$81,500

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RevenueRevenueElectric GenerationElectric Generation600kw600kw--60kw parasitic load60kw parasitic load540kw (95% load time)540kw (95% load time)

Total Annual KWH Total Annual KWH 4,500,0004,500,000Total Electric RevenueTotal Electric Revenue

$/KWH$/KWH 66¢¢ 88¢¢ 1010¢¢$270,000$270,000 $360,000$360,000 $450,000$450,000

BeddingBedding $ 75,000$ 75,000 $ 75,000$ 75,000 $ 75,000$ 75,000Gross Revenue Gross Revenue $345,000$345,000 $435,000$435,000 $525,000$525,000

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Return on EquityReturn on Equity

Revenue/KWHRevenue/KWH 66¢¢ 88¢¢ 1010¢¢

Gross RevenueGross Revenue $345,000$345,000 $435,000$435,000 $528,000$528,000MaintenanceMaintenance ($81,500)($81,500) ($81,000)($81,000) ($81,000)($81,000)DepreciationDepreciation ($110,000)($110,000) ($110,000)($110,000) ($110,000)($110,000)InterestInterest$1,650,[email protected]%$1,650,[email protected]% ($123,750)($123,750) ($123,750)($123,750) ($123,750)($123,750)Net RevenueNet Revenue $29,750$29,750 $119,750$119,750 $209,750$209,750Equity $550,000Equity $550,000ROEROE 5.4%5.4% 21.8%21.8% 38.1%38.1%

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What We Think What We Think ……

Select the right system to fit your climateSelect the right system to fit your climate--Dry moderate climateDry moderate climate

Thermophilic & add a substrate?Thermophilic & add a substrate?*Less parasitic load*Less parasitic load

*10% Substrate by volume can double gas *10% Substrate by volume can double gas production with same digesterproduction with same digester

Copper Sulfate/ Lime has a negative Copper Sulfate/ Lime has a negative effect on gas production (15% effect on gas production (15% -- 20%).20%).

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Drop the H2O out of the GasDrop the H2O out of the GasControl Hydrogen SulfideControl Hydrogen Sulfide*Green Valley Engine has 15000 hrs.*Green Valley Engine has 15000 hrs.(We mic the values every 3mo and are seeing (We mic the values every 3mo and are seeing

nono value recession)value recession)*We change the oil every 800 hours because of *We change the oil every 800 hours because of

acid not metal contamination. (Further acid not metal contamination. (Further reducing our H2S could extend oil changes reducing our H2S could extend oil changes perhaps to every 1200 hrs or more.)perhaps to every 1200 hrs or more.)

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Buy a 42% efficient engine vs. 34%Buy a 42% efficient engine vs. 34%

19% more electric production?19% more electric production?

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What we think we knowWhat we think we know……3 milking cows/kw (3 milking cows/kw (Mesophilic Complete Mix)Mesophilic Complete Mix)Must keep tank temperatures constant Must keep tank temperatures constant within 2 degrees of 100 degrees within 2 degrees of 100 degrees Fahrenheit.Fahrenheit.Feed tanks consistent dietFeed tanks consistent diet (80% of digestion (80% of digestion occurs in the first 48 hrs.)occurs in the first 48 hrs.)Northern climate manure heat requirementsNorthern climate manure heat requirements-- 25% to maintain temperature25% to maintain temperature-- 75% to bring manure to temperature75% to bring manure to temperature

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IT WORKSIT WORKS

Acceptance of technology and systems have come Acceptance of technology and systems have come a long way.a long way.

Lender AcceptanceLender Acceptance•• 2 years ago lenders were weary of performance and 2 years ago lenders were weary of performance and

the financial risks associated with financing the the financial risks associated with financing the systems. Now the business risk of not properly systems. Now the business risk of not properly managing manure is greater than the financial risk managing manure is greater than the financial risk placed on large livestock operation.placed on large livestock operation.

•• Manure management systems on large operations Manure management systems on large operations will become the norm and not the exception. You will will become the norm and not the exception. You will need it as a part of your business plan long term.need it as a part of your business plan long term.

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THANK YOU!THANK YOU!John JacobsJohn Jacobs

[email protected]@yahoo.com

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green valley dairy profile - university of arizonaoct 11, 2007 · *green valley engine has 15000...

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