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Economic sustainability of a biomass energy project located at a dairy in California, USA

Author

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  • Kay Camarillo, Mary
  • Stringfellow, William T.
  • Jue, Michael B.
  • Hanlon, Jeremy S.

Abstract

Previous experience has demonstrated the tenuous nature of biomass energy projects located at livestock facilities in the U.S. In response, the economic sustainability of a 710kW combined heat and power biomass energy system located on a dairy farm in California was evaluated. This biomass energy facility is unique in that a complete-mix anaerobic digester was used for treatment of manure collected in a flush-water system, co-digestates were used as additional digester feedstocks (whey, waste feed, and plant biomass), and the power plant is operating under strict regulatory requirements for stack gas emissions. Electricity was produced and sold wholesale, and cost savings resulted from the use of waste heat to offset propane demand. The impact of various operational factors was considered in the economic analysis, indicating that the system is economically viable as constructed but could benefit from introduction of additional substrates to increase methane and electricity production, additional utilization of waste heat, sale of digested solids, and possibly pursuing greenhouse gas credits. Use of technology for nitrogen oxide (NOx) removal had a minimal effect on economic sustainability.

Suggested Citation

  • Kay Camarillo, Mary & Stringfellow, William T. & Jue, Michael B. & Hanlon, Jeremy S., 2012. "Economic sustainability of a biomass energy project located at a dairy in California, USA," Energy Policy, Elsevier, vol. 48(C), pages 790-798.
    • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:790-798
    DOI: 10.1016/j.enpol.2012.06.020
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    References listed on IDEAS

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    1. William F. Lazarus & Margaretha Rudstrom, 2007. "The Economics of Anaerobic Digester Operation on a Minnesota Dairy Farm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 349-364.
    2. William F. Lazarus & Margaretha Rudstrom, 2007. "The Economics of Anaerobic Digester Operation on a Minnesota Dairy Farm," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 349-364.
    3. Clark P. Bishop & C. Richard Shumway, 2009. "The Economics of Dairy Anaerobic Digestion with Coproduct Marketing," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 394-410, September.
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    Citations

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    Cited by:

    1. Luhmann, Henrike & Schape, Christian & Theuvsen, Ludwig & Weiland, Ingke, 2016. "Was Bedingt Die Bereitschaft Deutscher Milcherzeuger Zur Teilnahme An Einem Nachhaltigkeitsstandard? Ergebnisse Einer Empirischen Untersuchung," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244758, German Association of Agricultural Economists (GEWISOLA).
    2. Benavidez, Justin & Thayer, Anastasia W., 2018. "Poo Power: Revisiting Energy Generation from Biogas on Dairies in Texas," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266636, Southern Agricultural Economics Association.
    3. Anh Sam & Xiang Bi & Derek Farnsworth, 2017. "How Incentives Affect the Adoption of Anaerobic Digesters in the United States," Sustainability, MDPI, vol. 9(7), pages 1-14, July.
    4. Camarillo, Mary Kay & Stringfellow, William T. & Hanlon, Jeremy S. & Watson, Kyle A., 2013. "Investigation of selective catalytic reduction for control of nitrogen oxides in full-scale dairy energy production," Applied Energy, Elsevier, vol. 106(C), pages 328-336.
    5. Luhmann, Henrike & Schaper, Christian & Theuvsen, Ludwig, 2016. "Acceptance of a Sustainability Standard: Evidence from an Empirical Study of Future-Oriented Dairy Farmers," 2016 International European Forum (151st EAAE Seminar), February 15-19, 2016, Innsbruck-Igls, Austria 244538, International European Forum on System Dynamics and Innovation in Food Networks.
    6. T. Chen & M. Liu & Y. Takahashi & J.D. Mullen & G.C.W. Ames, 2016. "Carbon emission reduction and cost--benefit of methane digester systems on hog farms in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 59(6), pages 948-966, June.
    7. Benavidez, Justin R. & Thayer, Anastasia W. & Anderson, David P., 2019. "Poo Power: Revisiting Biogas Generation Potential on Dairy Farms in Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 682-700, November.
    8. Luhmann, Henrike & Schaper, Christian & Theuvsen, Ludwig, 2016. "Future-Oriented Dairy Farmers’ Willingness to Participate in a Sustainability Standard: Evidence from an Empirical Study in Germany," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 7(3), pages 1-15, July.

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