For farmers and dairy
companies, the motivation to produce biogas is simple. It will reduce their costs while providing an
additional source of revenue.
First, let’s look at the opportunity
to reduce costs for dairy farmers. The
use of home grown power allows farmers to become self- sufficient by using the
electricity made from their cow manure to power their farm. The amount of electricity that a dairy farm
uses every week is significant, primarily because of the refrigeration of the
milk and the electric milking machines.
An example of how much
electricity a dairy farm would normally use is the Haubenschilds' dairy farm
that uses 9,000 kw every week. With the
electricity rates in Ontario
ranging from 6,3 to 11,8 cents/ kWh they would be spending on average $900
dollars a week and $45 000 dollars a year! Not having to pay for electricity
would make a huge dent in their annual costs.
Another cost reduction is
heating by cogeneration. When the
generator is using the biogas to produce electricity, 60% of the energy used is
lost in the form of heat. Cogeneration
projects trap the heat created by the operation of the engine and use it for
various tasks such as heating water and heating rooms.
The other benefit for
farmers is revenue: This biofuel
provides four major sources of income:
-
Sale of electricity
-
Carbon offsets
-
Sale of livestock bedding
-
Sale of liquid fertilizer
The first source of income for the farmers is
the production of electricity. Because
most farms use the biogas to produce electricity, the surplus can be sold to utility
companies as green energy. The Ontario
government has put in place a green energy price of 11 cents/ kwh (14 cents at peak hours) so that the farmers get more
in return. The farmers can also sell the
biogas to gas utility companies because it is similar to commercial natural
gas.
Carbon credits are another source of income for the
farmers. Companies who need to offset
the greenhouse gases they’re releasing into the atmosphere want to buy carbon
credits from others. Farmers who produce
biogas from manure are able to claim
amounts of carbon credits by avoided methane emissions.
The last source of income
is the sale of bedding and fertilizer.
In my recent post I explained that during the digestion anaerobic
bacteria separates the manure in to its primary components so the methane rises
and is trapped at the top of the digester.
But what happens to the rest?
Post digestion offers two different types of waste: liquid and
solid. The first type, liquid waste, can
be used as fertilizer for crops. Due to the
transformation of nitrogen to ammonium in the digester, farmers are able to
reduce the quantity of fertilizer applied, allowing dairy farms to sell more of
it. The solid waste that comes out of
the digester can be used as bedding for animals. By using the digester, farmers are able to
eliminate most of the bacteria, making animals less prone to pathogens within
the bedding. The unused bedding can then be sold to other farms.
The
bedding here is coming out of the digester and is then being used in the
farm.
Another interesting thing that dairy companies
and farmers can do is invest in community digesters. Because
most dairy famers in Canada
don’t have enough cows on their farm to benefit from having a digester, the
installation of one would have no economic gain. A solution to this is installing a community
digester that is centrally located so that the surrounding farms can use it. This
is a benefit to dairy companies because it means that their farms can still
have a place to put their manure and still allow them to be self sufficient
with electricity, bedding and fertilizer.
The savings for farmers,
combined with the additional source of revenue would be an incentive for the
installation of a digester. The total
cost for a farm to install one depends on how much of the work and design they
do for themselves- the purchase of the actual digester only accounts for 35-40%
of the total cost. Other costs are the purchase of the land, the amount and
prices of material and labour input for excavation and installation. The total price of the digester is normally
around 300,000$! However in time the
digester will pay for itself.
Comparing a farm with a
digester and one without:
Diagram of a farm without an anaerobic digester.
Diagram for a farm with a digester.
These are two diagrams
that show the differences of a farm with an anaerobic digester and one
without. The red arrows represent all of
the negative products that come from dairy farms. The first diagram has methane emissions,
odour and run off as negative products.
These are each serious consequences by themselves and when added
together result in extremely high amounts of pollution. The second diagram has no negative products
because the anaerobic digester has been installed and instead has positive
products that result from the digestion.