ENERGY AND POLLUTION PREVENTION nr Market Opportunities for Biogas Recovery Systems A Guide to Identifying Candidates for On-Farm and Centralized Systems ------- How to Use This Guide AgSTAR developed this guide to characterize the market opportunities for biogas energy for greenhouse gas reduction projects at swine and dairy farms in the United States. The guide identifies the states with the greatest opportunity to cost effectively install and operate biogas recovery systems using dairy and swine manure. This report is intended for anyone interested or involved in the development of renewable sources of energy; distributed generation; or the development, design, and financing of biogas systems at animal feeding operations. The guide is organized as follows: • The section on Biogas Recovery Systems explains the types of systems in use today. • The benefits of biogas recovery systems for odor control, water quality protection, and greenhouse gas emission reductions are explained in Substantial Environmental Benefits. • Identifying Profitable Systems describes the type and size of animal operations where biogas recovery systems are estimated to be technically feasible. • Energy Production Potential summarizes the market potential for methane production and electricity generation nationally. The state profiles at the end of the guide characterize dairy and swine operations in the states with the greatest potential for biogas recovery. The profiles show the sizes and types of operations, the estimated number of feasible operations, methane production potential, associated electricity generating potential, and potential methane emission reductions. • The Appendix explains the methodology used to estimate market potential. EPA-430-8-06-004 www.epa.gov/agstar ------- Contents Introduction 1 Biogas Recovery Systems 1 Substantial Environmental Benefits 2 Identifying Profitable Systems 3 Energy Production Potential 4 Top 10 states for Electricity Production from Dairy and Swine Manure 5 About AgStar 6 State Profiles 7 North Carolina: Swine 8 Iowa: Swine 9 Minnesota: Swine 10 Oklahoma: Swine 11 Illinois: Swine 12 Missouri: Swine 13 Indiana: Swine 14 Nebraska: Swine 15 Kansas: Swine 16 Texas: Swine 17 California: Dairy 18 Idaho: Dairy 19 New Mexico: Dairy 20 Texas: Dairy 21 Wisconsin: Dairy 22 New York: Dairy 23 Arizona: Dairy 24 Washington: Dairy 25 Michigan: Dairy 26 Minnesota: Dairy 27 Appendix: Methodology 29 State Animal Populations and Farm Profiles 30 Manure Management Practices 30 Methane Emissions Equation 31 Biogas Production and Electricity Generating Potential 31 References 32 Example Calculations: Impacts of a Biogas Recovery System Replacing a Manure Storage Facility and a Conventional Anaerobic Lagoon 33 Methane Conversion Factors by State for 2003 (percent) 34 ------- ------- Market Opportunities for Biogas Recovery Systems A Guide to Identifying Candidates for On-Farm and Centralized Systems Biogas recovery systems at livestock and poultry operations can be a cost-effective source of clean, renewable energy that reduces greenhouse gas emissions. Because of its high energy content, biogas can be collected and burned to supply on-farm energy needs for electricity or heating. In 2005, about 100 systems were operational or under construction in the United States, and another 80 in the planning stages. However, biogas recovery systems are estimated to be technically feasible at about 7,000 dairy and swine operations in the U.S. These facilities offer a substantial business oppor- tunity to increase farm income. Biogas recovery systems at these facilities have the potential to collectively generate up to 6 million megawatt-hours (MWh) per year, and displace about 700 MW of fossil fuel-fired generation on the electrical grid (Figure 1). Biogas is produced when the organic matter in manure decomposes anaerobically (i.e., in the absence of oxygen). Biogas typically contains 60 to 70 percent methane, the primary constituent of natural gas, and is a clean-burning fuel. The potential for generating methane is greatest when manure is collected and stored as a liquid, slurry, Figure 1 . Market Opportunities for Biogas Recovery Systems at Animal Feeding Operations Animal Sector Swine Dairy Total Candidate Farms 4,300 2,600 6,900 Electricity Generating Potential MW 363 359 722 MWh/year 3,184,000 3,148,000 6,332,000 or semi-solid. Because the vast majority of large dairy and swine operations in the U.S. use liquid or slurry manure management systems, the biogas production potential is greatest at these operations; and the greenhouse gas reductions are the most significant. Other animal sectors manage manure primarily in solid form, making energy conversion costly and offering little opportunity for greenhouse gas reductions. Biogas Recovery Systems A biogas recovery system has four components: • Manure collection system. Existing liquid/slurry manure management systems can readily be adapted to deliver manure to the anaerobic digester. • Anaerobic digester. An anaerobic digester is designed to stabilize manure and optimize the production of methane. A facility for digester effluent storage is also required. • Biogas collection system. Biogas is collect-ed and piped to a combustion device. Gas use device. Biogas can be used as a boiler fuel for space or water heating, but more commonly is used to power reciprocating engines to generate electricity for on-farm use, with excess electricity sold to the local public utility. Flares always are installed to combust the biogas during periods when a gas use device is not available. While other biogas recovery systems are available, the three most prominent designs currently used at U.S. farms (Figure 2) are described below. Typically, covered anaerobic ------- lagoons are less costly than complete mix or plug-flow systems, but cannot be used for energy applications above the 40th parallel due to low average ambient temperatures (more methane is produced at higher temperatures). Covered anaerobic lagoon1: An anaerobic lagoon is among the simplest and most common manure storage and stabilization systems currently in use. A flexible cover is installed over the lagoon, and the methane is recovered and piped to the combustion device. Plug-flow digester1: A plug-flow digester has a long, narrow tank with a rigid or flexible cover. The tank is heated and often built partially underground to reduce heat loss. Use of plug-flow digesters is limited to dairy manure collected by scraping. Complete mix digester1: A complete mix digester is an enclosed heated tank with a mechanical, hydraulic, or gas mixing system. Complete mix digesters work best when there is some dilution of the excreted manure with process water (e.g., milking center wastewater). Centralized biogas systems. In general, on-farm biogas recovery is most feasible at larger operations. However, centralized systems make it possible to develop an econom- ically successful venture by combining the manure from several farms within a region. A centralized system may be designed and operated by a corporation, a cooperative, or a third party such as an energy company. Two centralized systems are in operation today. The potential advantages of centralized biogas production include: • Economy of scale—Experience demonstrates significant economic benefits as biogas production capacity increases. • Marketing leverage—The ability to provide a significant supply of energy may be an advantage in negotiating contracts for the sale of electricity to the local utility. • Financing—Due to the scale of the project, additional sources of venture capital may be available as well as assistance from grants, tax credits, or renewable energy programs. • Third party management—Livestock producers can realize the environmental and economic benefits of biogas production without the responsibility for day- to-day operation of the system. Figure 2. Biogas Recovery Systems in the U.S.' i 2 Stage Mix 13 Ambient Temperature Covered Lagoon Attached Media Includes digesters in start-up and construction stage. Substantial Environmental Benefits One of the biggest challenges facing livestock producers is managing manure and process water in a way that reduces odor and protects environmental quality at a reasonable cost. Biogas recovery systems will reduce odors, protect water quality, and reduce greenhouse gas emissions. Odor control. Odors from anaerobically digested manures are significantly less than odors from conventional management systems. The primary sources of odor from stored livestock manure are volatile organic acids and hydrogen sulfide ( a "rotten egg" odor). In an anaerobic digester, volatile organic compounds are reduced to methane and carbon dioxide, which are odorless gases. Hydrogen sulfide is captured with the collected biogas and is destroyed during combustion. Water quality protection. Anaerobic digestion provides several water quality benefits. Digesters, particularly heated digesters, can destroy more than 90 percent of disease-causing bacteria that might otherwise enter surface waters and pose a risk to human and animal health. Digesters also reduce chemical oxygen demand (COD). COD is one measure of the potential for organic wastes to reduce dissolved oxygen in natural waters. Because fish and other aquatic organisms need minimum levels of dissolved oxygen for survival, farm practices that reduce COD protect the health of aquatic ecosystems. The Natural Resources Conservation Service of the U.S. Department of Agriculture has established practice standards for ambient temperature anaerobic digesters (Code 365) and controlled temperature anaerobic digesters (Code 366). ------- Greenhouse gas reductions. Digesters also reduce emissions that contribute to global climate change. Methane is a potent greenhouse gas with a heat trapping capacity of approximately 21 times that of carbon dioxide. Livestock and poultry manure emit 7 percent of annual U.S. methane emissions, and most of that 7 percent comes from swine and dairy operations. Biogas recovery systems capture and combust methane, thus reducing virtually all of the methane that otherwise would be emitted. As shown in Figure 3, installing digesters at dairy and swine operations where it is economically feasible would reduce methane emissions by 1.3 million tons per year (about 66 percent reduction from these operations). Biogas also is a renewable form of energy. The use of biogas to generate electricity provides the added environmental benefit of reducing fossil fuel use on the electric power grid, which in turn lowers emissions of carbon dioxide, another critical greenhouse gas. Identifying Profitable Systems Biogas recovery systems are potentially profitable for about 6,000 large dairy and swine facilities in the U.S. Figure 3. Significant Methane Emission Reductions Animal Sector Swine Dairy Total 2002 Methane Emissions (000 tons/year) 1,097 918 2,015 Potential Methane Emission Reduction' (000 tons/year) 772 (70%) 573 (62%) 1,345 (66%) Estimates are based on installing biogas recovery systems at all feasible operations, as defined in Figure 4. Figure 4. Characteristics of Dairy and Swine Farms Where Biogas Recovery Systems May be Profitable Animal Type Manure Management Method' Size of Operation Dairy Flushed or scraped freestall barns and dry lots >500 head Swine Houses with flush, pit recharge, or pull- plug pit systems2 >2,000 head These facilities are the larger operations that use liquid or slurry manure handling systems and collect manure from animal confinement areas frequently (Figure 4). Profitability depends on the ability to recover the capital and operating costs at a reasonable rate of return, and generate a long-term income stream. Experience has shown that the profitability of biogas systems depends on the size of the operation, the method of manure management, and local energy costs. Size of operation. Available data indicate that the unit costs for construction and operation decrease significantly as biogas system size increases. The potential for a positive financial return appears to be most likely at dairy operations with milking herds of more than 500 cows and swine operations with more than 2,000 head of confinement capacity. While these farm sizes provide a general guideline, the feasibility at individual operations depends on a number of local factors, including construction costs, energy prices, and farm management practices. 1 Total solids content < 15% and at least weekly manure collection. 2 Biogas systems are not currently used at swine confinement houses with deep pits. Deep pits under slatted floors are commonly used in cool regions such as the upper Midwest. Deep pit systems would need to be modified to remove manure more frequently (weekly or more often) before a biogas utilization system could be installed.The feasibility of conversion depends on the value of the biogas produced relative to the capital investment required. Estimates in this report assume that deep pit operations with more than 5,000 head could use biogas systems by converting to at least weekly manure removal. Manure Management Method. Current digester systems are designed for manure that is handled in a liquid, slurry, or semi-solid state (Figure 5). Collection frequency also influences the feasibility of biogas recovery systems. Manure that is collected frequently (i.e., at least weekly) minimizes the loss of the ------- Figure 5. Manure Handling Practices Affect the Feasibility and Choice of Biogas Digester Systems Total Solids (%) 10 15 20 25 30 „ Water Added Bedding Added Manure ' ' ' — Biogas Production | Recommended | Not Recommended Digester Type Cwered Complele _agoon or Mix biodegradable organic matter that will be converted into biogas. Confined swine and dairy operations typically remove manure as frequently as every few hours to every few days. In other animal sectors (e.g., poultry and beef operations), manure typically may be collected no more than 3 to 4 times per year. Energy costs. The value of methane depends on the energy costs avoided (e.g., electricity, fuel oil, propane). Typically, biogas is used to generate electricity for on-site use with any excess sold to the local electric utility. This methane use strategy provides four possible sources of income: Avoided cost of electricity. The cost savings from electricity not purchased depends on local electricity rates. Because the total revenue derived from biogas use depends heavily on the value of electricity, relatively modest changes in rates can result in significant changes in the size of operation that will be profitable. Sale of excess electricity to the local public utility. There is significant variation from state to state in the prices that utilities will pay small power producers. Rates can be very attractive in states with net metering, green power markets, or green pricing programs. Waste heat recovery. Waste heat from engine-generator sets can be recovered and used for space and water heating, thus reducing fuel oil or propane costs. • Greenhouse gas markets. An emerging source of income is the sale of "carbon credits" through brokerage houses to global greenhouse gas markets. Several dairies have begun receiving payments for combusting methane from biogas recovery systems, and more dairies are beginning to enroll in carbon credit programs. Candidate farms for installing biogas recovery systems were identified using the characteristics described in Figure 4. These characteristics were selected based on AgSTAR evaluations of the technical and economic performance of successful biogas recovery systems operating at commercial scale swine and dairy farms. These criteria were not based on a cost analysis. The methodology for identifying candidate farms and estimating the energy production potential is explained in the appendix. Energy Production Potential Nationally, swine and dairy operations could generate 6.3 million MWh of electricity each year - equivalent to 722 MW of electrical grid capacity. According to the U.S. Department of Energy, the average price of electricity was about 8 cents per kilowatt-hour in 2004. Using this rate, swine and dairy operations collectively could potentially generate electricity worth more than $500 million annually. State profiles at the end of this guide characterize the market potential in the top ten swine and dairy states with the greatest potential for biogas recovery. The number of dairy and swine farms with the potential to recover methane for a profit varies significantly from state to state. Figure 6 identifies the 10 states with the greatest electrical generating potential from swine and dairy operations. For swine, the top 10 states hold 85 percent of the electric generating potential. North Carolina and Iowa, the largest pork producing states, each account for more than 20 percent of the total. For dairies, the top 10 states hold 80 percent of the potential, with California alone accounting for almost 40 percent. ------- Figure 6. Top 10 States for Electricity Production from Dairy and Swine Manure State SWINE FARMS NORTH CAROLINA IOWA MINNESOTA OKLAHOMA ILLINOIS MISSOURI INDIANA NEBRASKA KANSAS TEXAS Remaining 40 States Subtotal DAIRY FARMS CALIFORNIA IDAHO NEW MEXICO TEXAS WISCONSIN NEW YORK ARIZONA WASHINGTON MICHIGAN MINNESOTA Remaining 40 States Subtotal U.S. Total Number of Candidate Farms 1,179 1,022 429 52 267 200 234 148 91 13 646 4,281 963 185 123 149 175 157 73 122 72 60 544 2,623 6,904 Methane Emissions Reduction (000 Tons) 247 126 40 54 36 53 28 25 29 21 113 773 263 61 62 32 8 6 35 22 6 3 75 573 1,346 Methane Production Potential (billion ftVyear) 11.5 10.2 3.5 2.9 2.8 2.7 2.2 2.0 1.6 I.I 7.3 48 18.1 4.0 3.9 2.3 2.1 2.0 1.9 1.9 1.9 0.7 9.4 48 96 Electricity Generation Potential (000 MWh/year) 766 677 234 196 184 177 145 134 109 75 487 3,184 1203 267 259 154 138 132 126 126 73 46 624 3,148 6,332 Note: The procedure for estimating the energy generation potential is explained in the appendix. ------- The pattern of regional concentration has been driven by three main factors: • Business practices. Vertical integration, especially in the swine industry, has led to significant geographic concentration. At the same time, economies of scale have led to increasingly larger but fewer operations over time. • State policies. In some states, policies have encouraged the growth of animal agriculture either for rural economic development or to replace the loss of other agricultural sectors. • Climate. Favorable climate, which reduces the cost of feed, housing, and energy, has led to some migration to warm climates. Mild climates also lead to more methane generation in anaerobic lagoons. The U.S. Department of Agriculture confirms the trend toward fewer but larger dairy and swine operations. Larger operations emit more methane because they tend to use more liquid manure handling systems and more anaerobic lagoons. As a result of this trend, methane emissions and energy generation potential are increasing at a faster rate than the growth in animal population. About AgSTAR AgSTAR is an outreach and educational program that promotes the recovery and use of methane from animal manure. AgSTAR is one of the many voluntary initiatives developed under the United Nations Framework Convention on Climate Change to reduce greenhouse gases. The program provides technical support, compiles and distributes information, and maintains the AgSTAR hotline to facilitate the development of commercial systems. AgSTAR has supported development of standards for anaerobic digestion systems and created project development tools such as the AgSTAR Handbook and FarmWare (a software tool for pre- feasibility assessment of aerobic digestion). ENERGY AND POLLUTION PREVENTION For more information about methane recovery technologies, contact an AgSTAR representative at: 1-800-95AgSTAR (1-800-952-4782) (Hours of Operation: 9:00am to 5:00pm EST) www.epa.gov/agstar ------- State Profiles ------- North Carolina Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 2,542 9,900 1,179 9,358 247 11.5 766 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size 2000-4999 head 21% Percentage of Swine Population Swine Population (number of head) Manure Management System Light < 2000 J Medium 2000 - 5000 || Dark > 5000 Percentage of Manure Managed ------- Iowa Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production Electricity generation potential (billion ftVyear) potential (000 MWh/year) 10,205 15,450 1,022 7,900 126 10.2 677 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System | Light < 2000 J Medium 2000 - 5000 || Dark > 5000 Percentage of Manure Managed Pasture 1% ------- Minnesota Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 5,628 6,050 429 3,083 40 3.5 234 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System Pasture 0% Percentage of Manure Managed | Light < 2000 J Medium 2000 - 5000 || Dark > 5000 10 ------- Oklahoma Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 2,49 1 2,368 52 2,099 54 2.9 196 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Swine Population (number of head) I Light < 2000 n Medium 2000 - 5000 Q Dark > 5000 Farm Size Percentage of Swine Population Manure Management System Pasture 1% Percentage of Manure Managed 11 ------- Illinois Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 3,929 4,225 267 2,076 36 2.8 184 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System Percentage of Manure Managed | Light < 2000 _] Medium 2000 - 5000 || Dark > 5000 12 ------- Missouri Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 3,449 2,938 200 2,189 53 2.7 177 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System Pasture Deep Pit \ 0% 14% Percentage of Manure Managed Light < 2000 J Medium 2000 - 5000 || Dark > 5000 13 ------- Indiana Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 4,087 3,213 234 1,829 28 2.2 145 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System Pasture 1% Percentage of Manure Managed Light < 2000 J Medium 2000 - 5000 || Dark > 5000 14 ------- Nebraska Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 3,075 2,963 148 1,579 25 2.0 134 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Swine Population (number of head) I Light < 2000 n Medium 2000 - 5000 Q Dark > 5000 Farm Size Percentage of Swine Population Manure Management System Pasture 1% Percentage of Manure Managed 15 ------- Kansas Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 1,648 1,565 91 1,192 29 1.6 109 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. Farm Size Percentage of Swine Population Swine Population (number of head) Light < 2000 J Medium 2000 - 5000 || Dark > 5000 Manure Management System Pasture 3% Percentage of Manure Managed 16 ------- Texas Swine Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Swine Operations Total number of mature swine (000 head) Number of feasible swine operations' Number of mature swine at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 4,671 958 13 845 21 I.I 75 1 Anaerobic digestion was considered feasible at all existing operations with flush, pit recharge, or pull-plug pit systems with more than 2,000 swine; and at deep pit systems with more than 5,000 swine. 2000-4999 head 1% Farm Size Percentage of Swine Population Swine Population (number of head) Manure Management System Pasture 2% Percentage of Manure Managed Light < 2000 J Medium 2000 - 5000 || Dark > 5000 17 ------- California Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 2,793 1,624 963 1,286 263 18.1 1,203 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 21% Deep Pit 0% Percentage of Manure Managed | Light < 500 J Medium 500 - 1000 | Dark > 1000 18 ------- Idaho Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 982 378 185 285 61 4.0 267 200-500 head 11% Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Deep Pit 1% Liquid/ Slurry Storage 23% Pasture 0% Percentage of Manure Managed Light < 500 J Medium 500 - 1000 J Dark > 1000 19 ------- New Mexico Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 377 291 123 276 62 3.9 259 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Anaerobic Lagoon 62% Liquid/ Slurry Storage 19% Deep Pit 0% Percentage of Manure Managed | Light < 500 _| Medium 500 - 1000 | Dark > 1000 20 ------- Texas Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 2,080 316 149 165 32 2.3 154 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 24% Deep Pit 2% Spread/ Pasture Solid \^ 8% / 0% Storage 13% Percentage of Manure Managed | Light < 500 _| Medium 500 - 1000 | Dark > 1000 21 ------- Wisconsin Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 1 6,886 1,283 175 148 8 2.1 138 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Deep Pit 4% Liquid/ Slurry Storage 24% Percentage of Manure Managed | Light < 500 J Medium 500 - 1000 J Dark > 1000 22 ------- New York Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 7,388 677 157 141 6 2.0 132 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 16% Anaerobic Lagoon 10% Deep Pit 2% Percentage of Manure Managed Light < 500 J Medium 500 - 1000 | Dark > 1000 23 ------- Arizona Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 274 140 73 135 35 1.9 126 Farm Size 200-500 head 2% Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 20% Deep Pit 0% Pasture 0% Percentage of Manure Managed | Light < 500 J Medium 500 - 1000 | Dark > 1000 24 ------- Washington Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 1,208 248 122 135 22 1.9 126 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Light < 500 J Medium 500 - 1000 J Dark > 1000 Deep Pit 1% Liquid/ Slurry Storage 22% Percentage of Manure Managed 25 ------- Michigan Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 3,013 300 72 78 6 I.I 73 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 33% Deep Pit — 4% Pasture 3% Daily Spread 10% Percentage of Manure Managed | Light < 500 J Medium 500 - 1000 | Dark > 1000 26 ------- Minnesota Dairy Market Opportunities to Generate Electricity with Anaerobic Digestion (2002) Total Number of Dairy Operations Total number of mature dairy cows (000 head) Number of feasible dairy cow operations' Number of mature dairy cows at feasible systems (000 head) Methane emission reduction potential (000 tons/year) Methane production potential (billion ftVyear) Electricity generation potential (000 MWh/year) 6,474 501 60 49 3 0.7 46 Farm Size Percentage of Dairy Cow Population 'Anaerobic digestion was considered feasible at all existing operations with liquid manure systems and more than 500 dairy cows. Dairy Cow Population (number of head) Manure Management System Liquid/ Slurry Storage 24% Deep Pit 5% Pasture 6% Percentage of Manure Managed | Light < 500 J Medium 500 - 1000 | Dark > 1000 27 ------- ------- Appendix: Methodology 29 ------- General Methodology This section describes the methodology used to estimate the maximum potential for U.S. swine and dairy operations to generate electricity from biogas. The general approach was to: liry animal populations and profiles of farm sizes by state. These data were taken from published USDA reports. • Estimate the distribution of manure management practices by state. These distributions were derived from USDA- supplied data and observations by EPA. • Estimate the animal populations on farms where biogas systems are feasible. The criteria described in Figure 4 was used. • Estimate baseline methane emissions and emission reductions from the candidate farms. Methane emissions were estimated using EPA's greenhouse gas inventory methodology. When farms convert to a biogas recovery system, the methane emission reduction is essentially 100 percent of baseline emissions. • Estimate the biogas production and electricity generating potential. These estimates were based on values reported in the literature and AgSTAR evaluations. A more detailed discussion of these steps, including data sources and calculation methodology, is presented below. State Animal Populations and Farm Profiles The potential to reduce methane emissions from dairy and swine manures was based on estimates of the number of milk cows that have calved and the number of hogs and pigs in each state in 2002. The estimates were based on inventory estimates issued by the USDA National Agricultural Statistics Service (NASS). The full methodology for estimating dairy and swine populations can be found in the Inventory for U.S. Greenhouse Gas Emissions and Sinks: 1990- 2002 (USEPA, 2002) In January of each year, NASS presents estimates of the number of dairy operations in each of the 29 leading dairy states by size. These data were used in conjunction with farm size data from the 2002 Census of Agriculture (USDA, 2002) to estimate the number of operations with milking herds of specified sizes and the number of cows at these operations. This methodology was also used to estimate the number of swine operations in each state with a confinement capacity of 2,000 or more head and the number of hogs and pigs confined on these operations. Manure Management Practices Manure management practices for dairy and swine operations were determined using data from USDA's 2002 Census of Agriculture, USDA's National Animal Health Monitoring System (NAHMS), EPA's Office of Water, and expert sources. For dairy operations, the distribution of manure production by waste management system for farms with more than 200 head was estimated using data from the EPA Office of Water. The methods of manure management for medium (200 to 500 head) and large (more than 500 head) farms and the percent of farms that use each type of system (by geographic region) were used to estimate the percent of manure managed in each type of system. Manure management estimates for small (less than 200 head) dairies were obtained from NAHMS Dairy '96 data. Information regarding the state distribution of daily spread and outdoor confinement (pasture, range, and paddock) operations for dairy cattle was obtained from personal communication with personnel from state Natural Resource Conservation Service offices, state universities, NASS, and other experts. For swine operations, the distribution of manure production by waste management system was estimated using USDA data broken out by geographic region and farm size. Manure management information for medium (200 to 2,000 head) and large (greater than 2,000 head) farms was obtained from USDA NAHMS Swine 2000 data. It was assumed that operations with less than 200 head were outdoor confinement operations. 30 ------- Methane Emissions Methane emissions were estimated based on the methodologies used for the Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2002 (USEPA, 2004). These methodologies were developed by the International Panel on Climate Change (IPCC) and presented in Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories (IPCC, 2000). Methane emission estimates were developed for each state and animal group using the equation presented in Figure 7- A sample calculation for two types of manure management systems is shown in Figure 8. For swine, total volatile solids (VS) was calculated using a national average VS excretion rate from the Agricultural Waste Management Field Handbook (USDA, 1992), which was multiplied by the average weight (TAM) of the animal and the State-specific animal population. For dairy cattle, regional VS excretion rates that are related to the diet of the animal were used (Peterson et al., 2002). Methane conversion factors (MCFs) were determined for each type of manure management system. For dry systems, the default IPCC factors were used. MCFs for liquid/slurry, anaerobic lagoon, and deep pit systems were calculated based on the forecast performance of biological systems relative to temperature changes as predicted in the van't Hoff- Arrhenius equation. The MCF calculations model the average monthly ambient temperature, a minimum system temperature, the carryover of volatile solids in the system from month to month, and a factor to account for management and design practices that result in the loss of volatile solids from lagoon systems. Methane conversion factors for each state are shown in Figure 9- Figure 7. Methane Emissions Equation Methane Emissions = Population xTAM xVS x MCF x B0 where: Population = 2002 state animal population TAM = Typical animal mass, Ib VS = Total volatile solids excretion rate, lbVS/1,000 Ib live weight-day MCF = Methane conversion factor, percent B0 = Maximum methane producing capacity, ft3 ChL/lb total volatile solids For dairy cows, B0 = 3.84 (Morris, 1976) For swine, B0 = 7.69 (Hashimoto, 1984) Biogas Production and Electricity Generating Potential The estimates of the biogas production potential from dairy cow and swine manures presented in this report are based on the following approach: • For swine manure, evaluations of the performance of a covered lagoon and a mesophilic, intermittently mixed digester suggest that both systems provide approximately the same degree of total VS reduction, 45 percent (Martin, 2002, 2003). In addition, the methane yield for both systems was similar and averaged 12 ft3 per Ib of VS destroyed This value is within the reported range of values for methane production from municipal wastewater treatment biosolids). • For dairy manure, results from two studies indicate that mesophilic plug-flow digesters with a 20-day hydraulic residence time (HRT) produce between 38 and 39 ft3 of methane per cow-day (Jewell et al., 1981; Martin, 2004). For this report, a value of 38.5 ft3 methane per cow per day was used. Although actual HRTs may vary, a 20-day HRT is the standard design value. 31 ------- • To calculate the energy content of biogas produced in swine and dairy digesters, a heating value of 1,010 BTUs per ft3 methane was used. • Based on performance data for engine-generator sets obtained from Caterpillar, Inc., it has been suggested that the maximum thermal conversion efficiency of biogas to electricity is 28.5 percent (Koelsch and Walker, 1981). However, sizing biogas fueled engine-generator sets to operate at maximum output is difficult, and these units cannot be operated 100 percent of the time due to maintenance and repairs. Accordingly, a thermal conversion efficiency of 25 percent and an on-line operating rate of 90 percent was used. Based on these factors, electrical output was estimated at 66.6 kWh per 1,000 ft3 of methane. References Hashimoto, A.G. 1984. Methane from Swine Manure: Effect of Temperature and Influent Substrate Concentration on Kinetic Parameter (K). Agricultural Wastes 9 (1984):299-308. IPCC. 2000. Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories, ]. Penman, D. Kruger, I. Galbally, T. Hiraishi, B. Nyenzi, S. Emmanul, L. Bundia, R. Hoppaus, T. Martinsen, J. Meijer, K. Miwa, and K. Tanabe (Eds). Institute for Global Strategies, Japan. Jewell, WJ., R.M. Kabrick, S. Dell'Orto, K.J. Fanfoni, and R.J. Cummings. 1981. Earthen-Supported Plug Flow Reactor for Dairy Operations. In: Methane Technology for Agriculture, NRAES -13- Northeast Regional Agricultural Engineering Service, Cornell University, Ithaca, New York. pp. 1-24. Koelsch, R., and L.P.Walker. 1981. Matching Dairy Farm Energy Use and Biogas Production. In: Methane Technology for Agriculture, NRAES-13- Northeast Regional Agricultural Engineering Service, Cornell University, Ithaca, New York. pp. 114-136. Martin, J.H., Jr. 2002. A Comparison of the Performance of Three Swine Waste Stabilization Systems. Final report submitted to the U.S. Environmental Protection Agency AgSTAR Program by Eastern Research Group, Inc., Boston, Massachusetts. Martin, J.H., Jr. 2003- An Assessment of the Performance of the Colorado Pork, LLC, Anaerobic Digestion and Biogas Utilization System. Final report submitted to the U.S. Environmental Protection Agency AgSTAR Program by Eastern Research Group, Inc., Boston, Massachusetts. Martin, J.H., Jr. 2004. A Comparison of Dairy Cattle Manure Management With and Without Anaerobic Digestion and Biogas Utilization. Final report submitted to the U.S. Environmental Protection Agency AgSTAR Program by Eastern Research Group, Inc., Boston, Massachusetts. Morris, G. R. 197'6. Anaerobic Fermentation of Animal Wastes: A Kinetic and Empirical Design Evaluation. Unpublished M.S. Thesis, Cornell University, Ithaca, New York. Peterson, K., J. King, and D. Johnson. 2002. Methodology and Results from Revised Diet Characterization Analysis. Memorandum to EPA from ICF Consulting under contract no. 68-W7-0069, task order 505-01. US DA. 1992. AgriculturalWaste Management Field Handbook, revised July 1996. Natural Resources Conservation Service, Washington, DC. USDA. 2004. 2002 Census of Agriculture. National Agricultural Statistics Service, Washington, DC. USEPA. 2004. Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2002. Report No. EPA 430-R-02-003- Office of Atmospheric Programs, Washington, DC. 32 ------- Figure S. Example Calculations: Impacts of a Biogas Recovery System Replacing a Manure Storage Facility and a Conventional Anaerobic Lagoon Factors Manure storage tank or pond Conventional anaerobic lagoon Methane emission reductions Number of cows Average live weight, Ib/cow Total volatile solids (VS) excretion rate, Ib/ 1,000 Ib live weight-day B0,ft3/lbVS MCF1, decimal Methane density, Ib/ft3 Methane emissions2, tons/yr Methane emission reduction from biogas capture and utilization3, ton/yr Equivalent reduction in carbon dioxide emissions4, tons/yr 500 1,400 8.5 3.84 0.292 0.041 50 50 1,048 500 1,400 8.5 3.84 0.707 0.041 121 121 2,538 Displaced emissions from utility electric generation Methane production, ft3/yr @ 38.5 ft3/cow-day Electricity generation potential5, kWh/yr Reduction in utility carbon dioxide emissions6, tons/yr Total greenhouse gas emission reductions as carbon dioxide, tons/yr 7,026,250 467,838 526 1,574 7,026,250 467,838 526 3,064 1 U.S. average MCF for manure storage tanks and ponds, and conventional anaerobic lagoons. 2 Methane emissions = number of cows * average live weight *VS excretion rate * I/I000 * B0 * MCF * methane density * 365 days/yr * ton/2000lb. 3 Biogas combustion destroys essentially 100 percent of baseline methane emissions. 4 Methane has approximately 21 times the heat trapping capacity of carbon dioxide. 5 Generation, kWh/yr = methane production * 1,010 Btu/ft3 of methane * kWh/3,41 3 Btu * 0.25 (methane to electricity conversion efficiency) * 0.9 (on-line efficiency). 'Assuming 2,249 Ib of carbon dioxide emitted per MWh generated from coal (Spath et al., 1999). 33 ------- Figure 9. Methane Conversion Factors by State for 2003 (percent) State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Storage Tank or Pond 38.5 13.8 44.8 36.1 37.7 22.2 23.9 29.7 52.2 38.3 59.7 23.2 26.9 26.0 24.7 31.9 30.4 46.1 19.5 27.6 23.2 22.0 22.8 40.1 30.4 Anaerobic Lagoon 75.8 48.3 79.3 65.0 76.2 66.7 69.4 73.9 77.8 75.6 77.1 68.3 71.5 70.6 69.7 74.5 73.2 77.2 63.3 72.1 68.7 66.7 67.9 76.1 73.8 State Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Storage Tank or Pond 21.1 26.7 25.7 21.0 26.4 32.6 21.7 33.7 21.7 24.8 36.5 22.8 25.2 24.6 37.8 24.2 32.6 41.6 26.2 20.2 27.9 23.4 25.3 22.4 21.3 Anaerobic Lagoon 65.9 71.5 70.5 65.5 71.9 74.4 66.6 74.4 66.9 69.5 76.1 67.0 70.4 70.4 75.8 69.6 74.2 77.0 71.1 64.5 72.0 67.9 69.8 67.7 66.0 : From Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2003 (EPA 430-R-O5-003). 34 ------- ------- ------- |