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California dairies are turning manure to money (Methane & Energy)
Bakersfield Californian ^ | 7/20/04 | Juliana Barbassa - AP

Posted on 07/20/2004 5:19:00 PM PDT by NormsRevenge

FRESNO, Calif. (AP) - More than a dozen dairies in California are building contraptions to turn one of their least-valued products - the gases that rise from decomposing manure - into one of the state's most sought-after commodities - energy. The state's 1.72 million dairy cows, clustered heavily in the Central Valley, have made California the country's top dairy state. Their milk and cream sell for more than $4 billion a year, and the industry brings jobs and tax revenue to counties with double-digit unemployment.

But according to air officials, the state's cows also contribute about 10 percent of the chemical compounds that combine in the atmosphere to produce ozone, a principal component in the smog that plagues the San Joaquin Valley's air.

By capturing the offending gases of dairy air, farmers are not only reducing the emissions that cloud the valley, but cutting their own electricity costs. The decidedly low-tech technology also has the potential to play a role, albeit a small one, in meeting the state's constant hunger for new power sources.

To produce energy, the farmer has to scrape up the manure, mix it with water, and pour it into a lagoon typically covered by an enormous plastic bag. When the mixture is heated, it produces methane, which is trapped by the bag, piped into a generator, and burned to create electricity.

The experiment comes a time when the agriculture industry is having to abide by air pollution regulations for the first time. By the end of the month, the local air district is expected to issue guidelines for clean-air technology that will be required in new dairies - and so-called "methane digesters" are part of the solution, officials said.

"This is probably one of the best forms of emission control from dairies," said Dave Warner, who leads the San Joaquin Valley Air Pollution Control District's permit program.

But what really got farmers interested, they said, was that the machines literally turn manure into money.

Ron Koetsier, who has 1,200 dairy cows on 160 acres near Visalia in Tulare County, invested about $1 million to get a digester built in 1985.

The technology back then proved a disappointment, he said, but the idea was a good one. When he qualified for a matching grant from the state, he retrofitted the system and since 2002 has been saving about $30,000 a year on energy costs - about half his annual bill - because he can now produce most of the energy he needs onsite.

Once his digester is hooked up to the local utility company, Koetsier said he'll be able to bank energy with the company. When he feeds excess energy into the system, his electricity meter will run backward and he will be able to withdraw what he needs when his demand increases or his power production runs low.

He eventually expects to save about 75 percent of his total energy costs, reducing the bill to about $15,000 a year.

Methane digesters won't produce enough energy to make a significant dent in the state's energy demand - or even come close, experts said.

Manure from one cow can generate up to two kilowatts per day - enough to brighten two light bulbs, said Warner, and it takes a dozen cows to power an average house.

Even if all of the 65 billion pounds of manure produced in California every year went into a methane digester, the energy generated could only power a medium-sized town like Modesto.

But the other advantages - allowing farmers to save money, trapping gases and other chemicals that would have turned into harmful pollutants, and reducing the volume of animal waste - make the machines an alternative supported by environmentalists as well.

"We've been advocating for years the use of anaerobic digesters, or other 'cover and capture' technology," said Brent Newell, with the environmental advocacy group Center on Race, Poverty & the Environment. "It's definitely beneficial."

Legislation that in 2001 set aside grant money that farmers could apply for, then match with their own cash, has contributed to the recent growth in the system's popularity. Each one of the 14 participating dairymen got up to $431,000.

Their gamble is being closely watched by other dairy farmers.

As of July 1, all farms and dairies that emit more than 12.5 tons per year of gases that contribute to smog had to apply for local air quality permits and pay hundreds of dollars in annual fees. For the first time, 1,350 of the largest farms and dairies in the nation's most productive farm counties were asked to account for the air pollution they produce.

While existing dairies have to apply for operating permits from the local air district, dairies built from now on will have to use the best control technology available, Warner said.

As long as cleaning the air is also economically feasible, farmers are ready to enlist in the struggle, they said.

"Yeah, it's going to clean the air," said Larry Castelanelli, a third-generation farmer who milks 1,500 cows near Lodi and pays an annual utilities bill that tops $100,000. "Yeah, there's a concern there. But this is dollar driven. I'm competitive. I'm trying to survive in the dairy industry."

---

On the Net:

San Joaquin Valley Air Pollution Control District: http://www.valleyair.org

To learn about methane digesters: http://www.suscon.org/dairies/methanedigesters.asp


TOPICS: Business/Economy; Culture/Society; Government; US: California
KEYWORDS: california; dairies; digestion; energy; environment; manure; methane; money; turning
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1 posted on 07/20/2004 5:19:02 PM PDT by NormsRevenge
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To: california


2 posted on 07/20/2004 5:19:48 PM PDT by NormsRevenge (Semper Fi Mac ... Godspeed x40 ... Support Our Troops!!! ......Become a FR Monthly Donor ...)
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To: NormsRevenge

Bubba has been doing the same thing for years. It's called giving a speech.


3 posted on 07/20/2004 5:24:30 PM PDT by Paul Atreides
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To: NormsRevenge

$$$$$$$$$ it's back to the horse and buggy?


4 posted on 07/20/2004 5:25:12 PM PDT by maestro
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To: NormsRevenge

There's a dairy up here that generates enough electricity this way that they can sell some of it back to the electric company.


LQ


5 posted on 07/20/2004 5:27:19 PM PDT by LizardQueen
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To: NormsRevenge
This is great news. Now that these dairy farmers have a way to supplement their income, maybe we can wean them off their stupid subsidies.

Yeah...right.

6 posted on 07/20/2004 5:36:41 PM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all)
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To: NormsRevenge
So.....

Spent 1.5 Million to save 75% on electricity?

That is a savings of 26,250 a year.

So if the cost of money was free and he had a zero interest rate loan it would take 58 years for this investment to pay off.

Sounds like we would have been better off trucking it off. More enviromental religion, it doesn't matter how much it costs as long as it helps the planet (sarcasm).
7 posted on 07/20/2004 5:50:08 PM PDT by dila813
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To: dila813
That is a savings of 26,250 a year.

I thought the article suggested his total bill had been $60k, and he was saving $45k/year...still a 20+ year undertaking.

I guess if the residue can be used as fertilizer without further processing, you might have another revenue stream.

8 posted on 07/20/2004 6:42:25 PM PDT by fourdeuce82d
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To: NormsRevenge

My neighbor here in Bavaria has been doing the same thing for some years but it only makes economic sense if subsidized, a concept not foreign to European farming.


9 posted on 07/20/2004 6:52:47 PM PDT by nathanbedford
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To: fourdeuce82d
It says he saved 75% and it states his bill was reduced to about $15,000 a year.

It is then easy to do the math of a 58 year payback if you assume zero cost of cash with a zero interest rate.

Also, manure revenue stream doesn't require a 1.5million dollar investment even though it would generate more money than this venture detailed in this article even if it was free.
10 posted on 07/20/2004 6:53:01 PM PDT by dila813
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To: NormsRevenge
To produce energy, the farmer has to scrape up the manure, mix it with water, and pour it into a lagoon typically covered by an enormous plastic bag. When the mixture is heated, it produces methane, which is trapped by the bag, piped into a generator, and burned to create electricity.

These people are just pulling our chain, right? How are they heating this lagoon? The enormous plastic bag is probably oil based, the methane is piped by existing electrical power no doubt, and what is left? A lagoon full of cow$hit.

They should just shove a hose where the sun don't shine in all their cow's and decrease the overhead, it makes more sense.

11 posted on 07/20/2004 6:53:21 PM PDT by X-FID ( The police aren't in the streets to create disorder; they are in the streets to preserve disorder.)
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To: X-FID
hey, a new invention, the butt plug hose adapter!

You will be a millionaire, the state will have to pay you a commission on the money you saved.
12 posted on 07/20/2004 7:02:39 PM PDT by dila813
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To: dila813

Thank's, but I'll keep my day job!


13 posted on 07/20/2004 7:12:05 PM PDT by X-FID ( The police aren't in the streets to create disorder; they are in the streets to preserve disorder.)
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To: fourdeuce82d
I guess if the residue can be used as fertilizer without further processing,

You can't spread manure on a field if the run off could enter a stream or the Water Quality Control Board will be on you with big fines. Did it say each of those systems received nearly a half million dollars of our tax money...

14 posted on 07/20/2004 7:27:17 PM PDT by tubebender (If I had known I would live this long I would have taken better care of myself...)
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To: NormsRevenge
Who woulda thought cow $hit be worth sumthin?

Only in America.

15 posted on 07/20/2004 7:30:31 PM PDT by BureaucratusMaximus ("We're going to take things away from you on behalf of the common good" - Hillary Clinton)
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To: X-FID
These people are just pulling our chain, right? How are they heating this lagoon? The enormous plastic bag is probably oil based, the methane is piped by existing electrical power no doubt, and what is left? A lagoon full of cow$hit.

The system produces its own heat. In cold climates, it is also used to heat the barns in winter. The system produces its own electricity. What is left is both solid and liquid waste. The solid waste is dried and used for animal bedding and the liquid is a high quality low odor fertilizer sprayed on fields.

Basically what this does is keep pollutants, like bacteria, out of the water system, turn a liability into an asset, and make farmers more independent. How could that be bad?

16 posted on 07/20/2004 7:48:36 PM PDT by lucysmom
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To: lucysmom
"....and make farmers more independent." If you think 50% matching grants of taxpaper money makes them more independent, then a 100% matching grant must be complete freedom from dependence on the taxpayer.
17 posted on 07/20/2004 8:13:16 PM PDT by dila813
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To: maestro

he saves 30,000 a year on a piece of equipment that cost 1 million + a federal grant that is not spelled out. That means it only takes 25 years for the investment to pay off.


18 posted on 07/20/2004 8:33:43 PM PDT by q_an_a
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To: q_an_a
he saves 30,000 a year on a piece of equipment that cost 1 million + a federal grant that is not spelled out. That means it only takes 25 years for the investment to pay off.

You are assuming that what was true almost 20 years ago is true today.

Ron Koetsier, who has 1,200 dairy cows on 160 acres near Visalia in Tulare County, invested about $1 million to get a digester built in 1985.

Technology has improved since 1985 and costs have come down.

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2004/05/14/BAGJG6LG3R15.DTL

The Straus Farms' covered-lagoon methane generator, powered by methane billowing off a covered pool of decomposing bovine waste, is expected to save the operation between $5,000 and $6,000 per month in energy costs. With those savings, Straus estimates he will pay back his capital investment in two to three years.

19 posted on 07/20/2004 10:22:04 PM PDT by lucysmom
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To: lucysmom
It says 50% matching grant above which would be 500k.

the quote"Straus estimates he will pay back his capital investment in two to three years." is not found in the article above.

Another problem, it says he "since 2002 has been saving about $30,000 a year on energy costs" then almost in the same breath says, "eventually expects to save about 75 percent of his total energy costs, reducing the bill to about $15,000 a year"

This is a 34 year payback, not a 2-3 year pay back. If he started in 1985 he would have at least 15 years to go.

A dollar today isn't worth a dollar yesterday. 1mill from 1985 would be worth over 60 million dollars today. You have to look at the cost of money and interest or the performance in relationship to a managed or indexed investment. Then he added 500 thousand in 2001 that would be 780k in todays dollars, so the system cost today would be 61 million dollars.

That is the true cost of the system. So what is the true payback on the system?

Only 1373 years!
20 posted on 07/21/2004 7:11:34 AM PDT by dila813
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