# Presentation: 707643

## AgSTAR-Profitable Energy From Manure Management

## What is AgSTAR?

**A voluntary program jointly sponsored by EPA, USDA, and DOE.**
**Overcomes informational, technical, and financial barriers.**
**Encourages the use of profitable on-farm methane recovery technologies.**
**Reduces pollutants, odors and greenhouse gases**

## States with Greatest Potential for AgSTAR Technologies

**Over 3000 **
**profitable sites!**

## Business Benefits

**Reduce utility bills.**

**Increase revenues through sale of manure co-products.**

## Environmental Benefits

**Reduces odor problems.**
**Protects water resources.**
**Controls pathogens.**
**Reduces methane emissions -- a potent greenhouse gas.**

## AgSTAR Participant Types

**Partners**
**Allies**
**Industry**
**Utility**
**Academic**
**Government (Federal, State, Municipal)**
**Endorsers**
**Professional Trade Associations**
**Non-Profit Groups**

## AgSTAR Participants: Responsibilities and Benefits

**Ally**

**Partner**

**Endorser**

## Informational Tools

**AgSTAR Hotline: 1-800-95AgSTAR**
**Brochures, Fact Sheets, and Semiannual Update**
**Slide Shows and Videos**
**Workshops and Trade Booths**

## Technical Tools

**Interim Standards and Technical Notes**
**Technical Fact Sheets**
**Showcase Fact Sheets**
**AgSTAR FarmWare**
**AgSTAR Handbook**
**Charter Farms**

## Financing Options

**Commercial and Private Lending Institutions**
**Leasing Programs**
**State and Local Government Sources**

## Charter Farms

**Producers resist methane systems because of:**
**known technical failures;**
**a lack of understanding of available appropriate technologies; and**
**a lack of documented financial performance.**

***Charter Farms are foundation of strong field component to overcome resistance.***

## What is a Charter Farm?

**“****On-farm” biogas technology that complements existing manure handling and demonstrates:**
** **
**simple operation**
**profitability**
**compatibility with regulatory and permit requirements**
**high replication potential**

## What are Expected Benefits?

**Informational and Technical Outreach:**
**Formal and informal farm visits;**
**First hand technical and operational understanding;**
**Strong promotional and public relations opportunities;**
**Documented energy and financial data identifying opportunities for:**
**(1) Utilities as a load management system, and**
**(2) Financing Institutions; and**
**Important methane and nutrient data.**

## Interim Selection Criteria

_**First Tier**__**	**_
**	****1) Ownership type:  private/university**
**	****2) Has financial stake in project**
**	****3) Accepts operational and maintenance responsibility**
**	****4) Allows farm access for visitation**
**	****5) Reduces methane**

_**Second tier -> Final Selection**_
**	****1) Meets profitability hurdle**
**	****2) Has replication potential**
**	****3) Utility support**

**Pre-screening For Evaluation:  2 Tier Process:**

## Outreach Plans

**NRCS**
**CSREES**
**NACD, NASCA**
**Producer Organizations**
**Agri-Business Companies (Allies)**
**Utilities**
**Producers (Partners)**

## Making Dollars and Sense from Manure

## What This Session Will Cover

**Economics of manure management projects**
**Costs, benefits, and financial performance for the Polka Dot Pig methane recovery facility**
**How to measure financial performance**
**Costs, benefits, and financial performance for the Long View methane recovery facility**

## Economics of Manure Management Before AgSTAR

**Costs of collecting, treating, storing, transporting, and utilizing manure**
**Costs of odor**
**Benefits of the nutrients (N, P, K)**

## Economics of Manure Management with AgSTAR

**Cost of methane recovery facilities**
**Benefit of offsetting energy purchases**
**Benefit of odor reduction**

## What This Session Will Cover

**Economics of manure management projects**
**Costs, benefits, and financial performance for the Polka Dot Pig methane recovery facility**
**How to measure financial performance**
**Costs, benefits, and financial performance for the Long View methane recovery facility**

## Polka Dot Pig Methane Recovery Facility

***Polka Dot Pig Farm***
*** ******(farrow to finish)***

**Number of Sows:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**

**1,400**
**Flush**
**SE North Carolina**
**Covered Lagoon**

## Costs for Polka Dot Pig Farm

**Covered Lagoon Cost:**
**Engine Generator Cost:**
**Other Cost:**
**Design/Management Cost:**
**Total Construction Cost:**
**Annual Operating Cost:**

**$169,262**
**$105,600**
**$22,686**
**$25,000**
**$322,548**
**$17,695**

## Financial Performance for Polka Dot Pig Farm

**Total Capital Cost:**
**Annual Operating Cost:**
**Annual Benefits:**
**Financial Performance**
**	****Payback Years:**
**	****Net Present Value (NPV):**
**	****Internal Rate of Return (IRR):**
**Is it Profitable?**

**$322,548**
**$17,695**
**$84,929**
**4.8**
**$13,615**
**16%**

## What This Session Will Cover

**Economics of manure management projects**
**Costs, benefits, and financial performance for the Polka Dot Pig methane recovery facility**
**How to measure financial performance**
**Costs, benefits, and financial performance for the Long View methane recovery facility**

## Project Profitability

**Payback Years**
**Net Present Value (NPV)**
**Internal Rate of Return (IRR)**

## What is Payback Years?

**Payback**
**Years**

**=**

**Capital Outlay**

**Benefits minus Expenses**

## What is the Net Present Value (NPV)?

**The Net Present Value (NPV) is the present**
**value of all cash inflows and outflows**
**of a project at a given discount rate.**

## NPV Calculations:  Lottery Example

**Year**

**Payment**

**Discount**
**Factor**

**Present**
**Value**

**0**
**1**
**2**
**3**
**4**
**5**
**6**
**7**
**8**
**9**

**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**
**$4,000,000**

**1.000**
**0.909**
**0.826**
**0.751**
**0.683**
**0.621**
**0.564**
**0.513**
**0.467**
**0.424**

**$4,000,000**
**$3,636,364**
**$3,305,785**
**$3,005259**
**$2,732,054**
**$2,483,685**
**$2,257,896**
**$2,052,632**
**$1,866,030**
**$1,696,390**

**Present Value**
**of Winnings =**
**$27,036,095**

**Tickets =**
**($5)**

**NPV =**
**$27,036,090**

## NPV Calculations:  Methane Recovery Facility (10% Discount Rate)

**Year**

**Cash Flow**

**Discount**
**Factor**

**Present**
**Value**

**0**
**1**
**2**
**3**
**4**
**5**
**6**
**7**
**8**
**9**
**10**

**($100,000)**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**

**1.000**
**0.909**
**0.826**
**0.751**
**0.683**
**0.621**
**0.564**
**0.513**
**0.467**
**0.424**
**0.386**

**NPV =**** ****$22,891**

**($100,000)**
**$18,182**
**$16,529**
**$15,026**
**$13,660**
**$12,418**
**$11,289**
**$10,263**
**$9,330**
**$8,482**
**$7,711**

## NPV Calculations:  Methane Recovery Facility (16% Discount Rate)

**1.000**
**0.862**
**0.743**
**0.641**
**0.552**
**0.476**
**0.410**
**0.354**
**0.305**
**0.263**
**0.227**

**NPV =**** ****($3,335)**

**($100,000)**
**$17,241**
**$14,863**
**$12,813**
**$11,046**
**$9,522**
**$8,209**
**$7,077**
**$6,101**
**$5,259**
**$4,534**

**Year**

**Cash Flow**

**Discount**
**Factor**

**Present**
**Value**

**0**
**1**
**2**
**3**
**4**
**5**
**6**
**7**
**8**
**9**
**10**

**($100,000)**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**

## What is the Internal Rate of Return (IRR)?

**The Internal Rate of Return (IRR) is**
**the discount rate which makes the NPV**
**of an income stream equal to zero.**

## NPV Calculations:  Methane Recovery Facility (15.1% Discount Rate)

**Year**

**Cash Flow**

**Discount**
**Factor**

**Present**
**Value**

**0**
**1**
**2**
**3**
**4**
**5**
**6**
**7**
**8**
**9**
**10**

**($100,000)**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**
**$20,000**

**1.000**
**0.869**
**0.755**
**0.656**
**0.570**
**0.495**
**0.430**
**0.374**
**0.325**
**0.282**
**0.245**

**NPV =**** ****$0**

**($100,000)**
**$17,376**
**$15,097**
**$13,117**
**$11,396**
**$9,901**
**$8,602**
**$7,474**
**$6,493**
**$5,642**
**$4,902**

## Financial Performance for Polka Dot Pig Farm

**Total Capital Cost:**
**Annual Operating Cost:**
**Annual Benefits:**
**Financial Performance**
**	****Payback Years:**
**	****Net Present Value (NPV):**
**	****Internal Rate of Return (IRR):**
**Is it Profitable?**

**$322,548**
**$17,695**
**$84,929**
**4.8**
**$13,615**
**16%**
**YES!**

## What This Session Will Cover

**Economics of manure management projects**
**Costs, benefits, and financial performance for the Polka Dot Pig methane recovery facility**
**How to measure financial performance**
**Costs, benefits, and financial performance for the Long View methane recovery facility**

## Long View Dairy Methane Recovery Facility

***Long View Dairy***

**Number of Milkers:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**

**500**
**Scraper**
**Upstate New York**
**Plug Flow**

## Costs for Long View Dairy

**Plug Flow Digester Cost:**
**Engine Generator Cost:**
**Other Cost:**
**Engineering Design:**
**Total Construction Cost:**
**Annual Operating Cost:**

**$84,447**
**$66,150**
**$34,099**
**$25,000**
**$209,606**
**$8,278**

## Financial Performance for Long View Dairy

**Total Capital Cost:**
**Annual Operating Cost:**
**Annual Benefits:**
**Financial Performance**
**	****Payback Years:**
**	****Net Present Value (NPV):**
**	****Internal Rate of Return (IRR):**
**Is it Profitable?**

**$209,606**
**$8,278**
**$56,910**
**4.3**
**$25,818**
**21%**
**YES!**

## Review

**Economics of manure management**
**Investment and operating costs of methane recovery facilities**
**Benefits of methane recovery facilities**
**How to measure financial performance**

## Where Do We Go From Here?

## Introduction to Farm Dissection

## What This Session Will Cover

**What is Farm Dissection?**
**AgSTAR Charter Farm Pre-Screening Evaluation Form**
**Polka Dot Pigs and Long View Dairy**

## What is Farm Dissection?

**Type of farm**
**Animal number and livestock facilities**
**Manure collection and treatment facilities**
**Energy expenses**
**Other information**

**Identify key information necessary to evaluate**
**a farm for methane recovery**

## What This Session Will Cover

**What is Farm Dissection?**
**AgSTAR Charter Farm Pre-Screening Evaluation Form**
**Polka Dot Pigs and Long View Dairy**

## What This Session Will Cover

**What is Farm Dissection?**
**AgSTAR Charter Farm Pre-Screening Evaluation Form**
**Polka Dot Pigs and Long View Dairy**

## Understanding  FarmWare

## What This Session Will Cover

**What is FarmWare?**
**What information do you need to run FarmWare?**
**How does FarmWare work?**
**Polka Dot Pigs and Long View Dairy**

## What is FarmWare?

**Computerized decision support system**
**Easily evaluates the costs and benefits of the AgSTAR methane recovery facilities**
**Requires Windows 3.1, PC-compatible 386SX or better, 4 MB memory**

## What This Session Will Cover

**What is FarmWare?**
**What information do you need to run FarmWare?**
**How does FarmWare work?**
**Polka Dot Pigs and Long View Dairy**

## What Information Do You Need To Run FarmWare?

**Basic information required:**
**type of farm**
**farm location**
**manure collection facilities**
**manure treatment and/or storage facilities**
**energy expenses**
**AgSTAR Charter Farm Pre-Screening Evaluation Form**

## What This Session Will Cover

**What is FarmWare?**
**What information do you need to run FarmWare?**
**How does FarmWare work?**
**Polka Dot Pigs and Long View Dairy**

## How Does FarmWare Work?

**Design methane recovery facility**
**manure quantity**
**collection system**
**climate**
**Calculate methane production and size utilization equipment**
**Calculate costs and benefits**
**Analyze and report the financial results**
**Based on working designs and their actual costs and benefits**

## What This Session Will Cover

**What is FarmWare?**
**What information do you need to run FarmWare?**
**How does FarmWare work?**
**Polka Dot Pigs and Long View Dairy**

## Today’s Advances and Lessons From the Past

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## Successful and Unsuccessful Digesters

**Anaerobic digestion is nothing new**
**Thousands of successful digesters in operation throughout the world**
**A few notable unsuccessful digesters**

## Unsuccessful Digesters - What Happened?

**Poor designs**
**Operating problems**
**Economic failure**

## Design Errors Resulting in Failures

**Basic design for manure properties**
**Digester heating and mixing**
**Improper component sizing**
**Proper “prime power” biogas engines**

## Operating Issues Resulting in Failures

**Inadequate operator training**
**Poor design making operation time-consuming**
**Over/under feeding or over/under heating**
**Improper maintenance of mechanical components**

## Economic Factors Resulting in Failures

**System cost more than product value**
**Loss in value of products**
**Loss of market for products**
**Operating costs exceed revenues**

## What’s Different Now:  AgSTAR Program

**Digester designs that work**
**Simple operation and maintenance**
**Proven economic benefits**

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## What is Anaerobic Digestion?

**Anaerobic digestion occurs when organic material decomposes in the absence of oxygen**
**Anaerobic digestion is a natural process that we have all seen work**

## Process of Biogas Production

**Acid forming bacteria**

**Methane forming bacteria**

***Process of Biogas Production***

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## Products of Anaerobic Digestion

**Methane - same energy value as natural gas**
**Treated effluent and/or digested manure solids**

## Benefits of Anaerobic Digestion

**Odor reduction**
** **
**Preservation of ground and surface water quality**

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## Components of AnaerobicDigester Facility

**Collection**
**Pre-treatment**
**Digester**
**Gas Use**
**Storage/Application**

## Collection

**Basis for system design**
** **
**Manure solids and process water - this is very important**

## Considerations for Dairy Digester Design

**Collectible Fresh Manure:**
***Flush****** *****- Very dilute, requires solids separator prior to covered lagoon.**
***Daily Scrape *****- Thick, high digestibility, may need some dilution water.**
***Weekly Scrape *****- Minor loss of digestibility, usually requires some dilution water.**
***Drylot Manure *****- Infrequent collection, not usually put into digester because of loss of digestibility and high dirt content.**

**RCM Inc., Berkeley, CA**

## Dairy Process Water Sources

**Vacuum pump**
**Refrigeration compressor**
**Milk precooler**
**Milking claw backflush system**

_**Water Used in Cleanup**_
**Cow sprinkler wash**
**Parlor floor flush**
**Parlor wash hoses**
**CIP**

_**Miscellaneous**_
**Leaky troughs**
**Leaky pipes**
**Hose washing cow traffic areas**

***Dairy Process Water Sources***

**RCM Inc., Berkeley, CA**

## Considerations for Swine Digester Design

**Collectible Fresh Manure:**
***Flush****** *****- Very dilute, only covered lagoon is possible.**
***Daily Scrape *****- High digestibility, complete mix digestion.**
***Weekly Scrape *****- Minor loss of digestibility, usually requires increased frequency of collection to use a digester.**
***Drylot Manure *****- Infrequent collection problematic for digestion, loss of digestibility, requires change of management to feed a digester daily.**

**RCM Inc., Berkeley, CA**

## Swine Process Water Sources

**Nipple waterers**
**Manual or automatic trough watering**
**Bowl waterers**
**Leaky pipes, valves, nipples**

**RCM Inc., Berkeley, CA**

_**Water Used in Cleanup**_
**Pressure washers**
**Hose washing**

_**Water Cooling**_
**Seasonal misting**
**Direct drip coolers**

_**Flush Technique**_
**Freshwater flush**
**High volume recycle flush**
**Pit recharge**

***Swine Process Water Sources***

## Components of AnaerobicDigester Facility

**Collection**
**Pre-treatment**
**Digester**
**Gas Use**
**Storage/Application**

## Components of AnaerobicDigester Facility

**Collection**
**Pre-treatment**
**Digester**
**Gas Use**
**Storage/Application**

## Three Types of Digesters

**Covered Lagoon**
** **
**Complete Mix**
** **
**Plug Flow**

## Components of AnaerobicDigester Facility

**Collection**
**Pre-treatment**
**Digester**
**Gas Use**
**Storage/Application**

## Components of AnaerobicDigester Facility

**Collection**
**Pre-treatment**
**Digester**
**Gas Use**
**Storage/Application**

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## AgSTAR Digesters

**Covered Lagoon Digester**
** **
**Complete Mix Digester**
** **
**Plug Flow Digester**

## Features of AgSTAR Digesters

**Covered**
**Lagoon**

**Complete**
**Mix**

**Plug**
**Flow**

**Level of**
**Technology**

**Digestion**
**Vessel**

**Supplemental**
**Heat**

**low**

**medium**

**low**

**deep**
**lagoon**

**round, square**
**in/above ground**

**rectangular**
**in ground**

**no**

**yes**

**yes**

***Features of AgSTAR Digesters***

## Features of AgSTAR Digesters(Continued)

**Covered**
**Lagoon**

**Complete**
**Mix**

**Plug**
**Flow**

**Solids**
**Concentration**

**Type of**
**Solids**

**HRT ****1**
**(days)**

**0.5-2%**

**3-8%**

**11-13%**

**fine**

**coarse**

**coarse**

**45+**

**15+**

**15+**

**1**** HRT = Hydraulic Retention Time**

***Features of AgSTAR Digesters******(Continued)***

## Features of AgSTAR Digesters(Continued)

**Covered**
**Lagoon**

**Complete**
**Mix**

**Plug**
**Flow**

**Farm**
**Type**

**Optimum**
**Location**

**dairy, hog**

**dairy, hog**

**dairy only**

**temperate**
**and**
**warm**
**climates**

**all**
**climates**

**all**
**climates**

***Features of AgSTAR Digesters******(Continued)***

## Covered Lagoon Digester 

## Collection

**Dilute flush or hose wash water **

## Pre-treatment

**Solids separation mandatory for dairy; optional for swine**

## Covered Lagoon

**Ambient temperature**
**Best performance in warm climates**

## Complete Mix Digester 

**COLLECTION**

## Collection

**Thin slurries - 3 to 8 percent total solids**

## Pre-treatment

**Optional**

## Complete Mix Digester

**Heated**
**Mixed**

## Plug Flow Digester 

**COLLECTION**

## Collection

**Scraped dairy manure only**

## Pre-treatment

**Adjustment to proper solids concentration**

## Plug Flow Digester

**Heated**
**Not mixed**
**Functions by displacement**

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## Gas Production from Animal Manures

_**Animal Type**_

**Range of**
**Gas Production**
_**Per Mature Animal**_

**Dairy cow**
**Hog**

**50-80 ft****3****/day**
**4-6 ft****3****/day**

## How to Handle and Use the Biogas

**Gas Handling**
** **
**Gas Use to Produce Energy**

## Gas Handling

**Filter/moisture trap**
** **
**Gas pump**
** **
**Gas meter**

## Gas Utilization

**Engine generator**
** **
**Utility intertie**
** **
**Boiler**
** **
**Chiller**

## Utility Intertie Options: On Farm First Use, Sale to Utility

**RCM Inc., Berkeley, CA**

## Utility Intertie Options: Sale to the Utility, Direct Purchase

**RCM Inc., Berkeley, CA**

## What This Session Will Cover

**A Brief History Lesson - Successful and Unsuccessful Digesters**
**What is Anaerobic Digestion?**
**Products of Anaerobic Digestion**
**Components of an Anaerobic Digester Facility**
**AgSTAR Digesters**
**How to Handle and Use the Biogas**
**Case Studies**

## Polka Dot Pig Methane Recovery Facility

***Polka Dot Pig Farm***

**Number of Sows:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**
**Avg. Daily Methane Produced:**
**Generator Capacity:**

**1,400**
**Flush**
**SE North Carolina**
**Covered Lagoon**
**45,520 ft****3**
**176 kW**

## Long View Dairy Methane Recovery Facility

***Long View Dairy***

**Number of Milkers:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**
**Avg. Daily Methane Produced:**
**Generator Capacity:**

**500**
**Scraper**
**Upstate New York**
**Plug Flow**
**21,197 ft****3**
**63 kW**

## Royal Farms Methane Recovery Facility

***Royal Farms Swine Farm***

**Number of Sows:**
**Manure Collection Facility:**
**Location:**

**1,700**
**Flush**
**Tulare County, California**

## Royal Farms Methane Recovery Facility

***Royal Farms Swine Farm***

**Number of Sows:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**
**Avg. Daily Methane Produced:**
**Generator Capacity:**

**1,700**
**Flush**
**Tulare County, California**
**Covered Lagoon**
**45,000 ft****3**
**175 kW**

## Machaca Dairy Methane Recovery Facility

***Machaca Dairy (Drylot)***

**Number of Milkers:**
**Manure Collection Facility:**
**Location:**

**1000**
**Flush Parlor & Feed Apron**
**Tulare County, California**

## Machaca Dairy Methane Recovery Facility

***Machaca Dairy (Drylot)***

**Number of Milkers:**
**Manure Collection Facility:**
**Location:**
**Type of Digester:**
**Avg. Daily Methane Produced:**
**Generator Capacity:**

**1000**
**Flush Parlor & Feed Apron**
**Tulare County, California**
**Covered Lagoon**
**28,000 ft****3**
**100 kW**