cooperative approaches to facilitate the use of anaerobic digesters on dairy farms carolyn liebrand...
TRANSCRIPT
Cooperative Approaches to Facilitate the Use of Anaerobic Digesters on Dairy Farms
Carolyn LiebrandUSDA Rural Development
Biofuels: Prospects and Challenges in Development and Policy
Southern 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 effluent
and
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
