Farmer-owned methane digesters maximize profits

Biogas projects make lots of money, but for whom?

A few years ago, milk prices were bad, grants hard to get and prices for renewable energy low. As a result, many farms could not afford a methane digester. Then in 2022, everything changed with $40 billion directed to USDA for greenhouse gas mitigation – making a biodigester affordable.

Big-money investors were attracted to America’s largest dairies due to the high prices paid for biogas, particularly RNG (renewable natural gas). As always, however, these investors want equity and maximum profits.

Forgotten is the fact these projects couldn’t exist without hard work at the farm to produce the “liquid gold” (manure) needed to feed a digester.

Agricultural Digesters LLC focuses on the farmer-owned business model. Rather than significant equity in one large project, we build our success on:

• Economies of scale by developing many, similar, dairy methane digesters
• Establishing multiple revenue streams beyond the sale of energy

In this model, the farm keeps the vast majority of the profits and gains the income needed to ensure long term financial viability.

How do I maximize benefits at my farm?

Work with experienced professionals.

Unlike wind and solar energy, biogas systems (anaerobic digesters) have lots of “moving parts” and potential revenue streams based on circumstance. Since farmers want to farm, Agricultural Digesters handles all development steps through launch. Including:

1. Calculating economic feasibility over 20 years.
2. Identifying all revenue streams available including energy sales, environmental benefits, bedding and heat offsets, Compost and peat moss replacement sales as well.
3. Knowing the available grants and obtaining them.
4. Matching each farm with the right equipment provider.
5. Obtaining electrical interconnections or upgrading biogas (RNG).
6. Identifying and obtaining organic feedstocks to increase output.
7. Finding investment by leveraging the Investment Tax Credit.
8. Consulting on the permitting process.
9. Operational guidance and equipment servicing post launch.

A manure separator can process digestate from the anaerobic digester at a dairy farm. Odor and pathogen free, the solid fraction provides free, superior, animal bedding – offsetting tens of thousands of dollars annually. The liquid fraction is more easily spread on fields, especially via draglining  and is more “plant available”.

Will my farm smell better?

85% to 90% odor reduction improves real estate prices, reduces neighbor complaints and improves quality of life for all.

Studies suggest a digester reduces manure odors 85%-90%. This means higher surrounding property values as well as fewer legal complaints from area homes and businesses.

At one Vermont farm, an elementary school is located less than 100 yards from its manure pit. When launched, the methane digester under contract will eliminate this distraction to students. “Future farmers” will see first hand not only the economic benefits of biogas energy, but also the importance of dairies being good stewards of the environment.

Biodigester in USA for 1,400 cows. Above ground, complete mix, German designed, system for the anaerobic digestion of food waist and cow manure.

How valuable is biogas energy?

Going off grid, eRINS and producing renewable natural gas.

If your state pays little for renewable electricity you can supplement this income with a new revenue stream for projects if the expected eRINS program passes. It will allow the monetization of the environmental benefits from a digester producing electricity at a surprisingly high rate per kW. Agricultural Digesters has specialists who will do this for your farm.

Another option for larger farms located near pipelines is to upgrade their biogas to “pipeline quality” renewable natural gas (RNG) and inject it. Costs are higher but so are profits.

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Meeting for southern New England farmers Jim Muir organized that included the Connecticut EPA, a generator provider and representatives of five interested dairy farms. They heard from Jedd Moncavage of Team AG (far right) who traveled from Lancaster County, PA to share his experience with digested manure solids at the ten dairy farms he services. Here is a link to a page with Jedd in Pennsylvania sharing this with a visiting group from China. Today three of these have an operating digester, one has a large RNG digester under development and the fifth plans to truck their manure to that farm.

I’ve heard of farmers up at 3 a.m. with their methane digesters. Seems like there is always something to fix?

Challenges occur when a digester is fed different organics from various sources, in varying amounts, at different times. This does not happen to the farmer who uses consistent slurry waste from his own farm – for example, manure. Another sure way to limit operational supervision time is to co-digest a small percentage of the same off-farm substrate, such as brewery waste, in consistent quantities, on a regular basis.

This is not to say co-digesting multiple feedstocks is a bad idea. Such a system near a population center attracts tipping fees from food waste haulers and can be more profitable than a “manure only” digester.