Anaerobic Digestion in the US: 6 Federal and State Incentives and Funding

The use of biogas as an energy source is on the rise in the United States, due to both federal and state incentives and funding initiatives. Biogas is a renewable energy source produced from the decomposition of organic matter, such as food waste, manure, and other organic materials.

In this blog article, we will explore the federal and state regulations and funding initiatives that have driven the recent rise of biogas energy in the US. We will also look at the long-term potential of biogas energy as a viable renewable energy source.

An Overview of Biogas in the US

Biogas is an increasingly important part of the US energy landscape, with a range of federal and state regulations and funding helping to drive its growth.

In this post, we will provide an overview of the biogas industry in the US, including the types of biogas operations, the number of facilities, and their locations. We will also discuss the federal and state regulations that govern biogas production, any incentives or funding available, and their impacts on the industry. Finally, we will analyze the potential for biogas to play a larger role in the US energy landscape in the coming years.

Currently Dominated by Agricultural On-farm Anaerobic Digestion the Industry is Set to Also Develop in Other Industry Sectors

The biogas industry in the US is currently dominated by agricultural operations, such as dairy farms, hog farms, and poultry farms. These operations produce a variety of biogas, including methane, hydrogen sulfide to a small extent, and carbon dioxide.

The number of facilities in total is estimated to be around 2,000, with the majority located in the Midwest and California. This total is very small when compared with China or India to which some commentators attribute several million digesters in all.

Anaerobic Digestion Support from the Current Democratic Party Administration

The US Department of Energy, notable since the start of the Biden administration in January 2021, has been supporting biogas research and development, providing funding for projects that aim to increase efficiency and reduce costs associated with biogas production.

Will the US Administration Now See the True Potential Which Exists in US Anaerobic Digestion?

There is ample proof that the historic impact of federal and state regulations and funding on the growth of biogas production in the US has largely been to overlook the potential of anaerobic digestion.

However, with the recent passage of the Farm Bill, the US Inflation Reduction Act, and the current EPA proposed regulations, there is good evidence that the federal government sees the potential for biogas production. It will be keen to see the US anaerobic digestion and biogas industry grow rapidly in the near future.

If the federal and state governments continue to provide the necessary incentives and funding, the US could catch up rapidly and once again become a global leader in the biogas industry.

Why Anaerobic Digestion in the US Missed Out on Global AD Industry Growth

Over the last 20 years, the United States has lagged behind other countries in the development of biogas production technology and use. Anaerobic Digestion in the US missed out on the global AD industry growth which for commercial AD started with German subsidies on maize crop biogas production in the early 2020s.

Despite the potential environmental and economic benefits of utilizing biogas, the US saw very low growth in the development of anaerobic digestion systems through the Trump era and its predecessors. As a result, the US market in biogas technology looks to mostly European companies to provide cutting-edge technology to the US sector.

Reasons for this lack of progress which became most marked under Trump, but started at least 15 years earlier have included:

• very low energy prices in the US which made competing on price with other energy sources almost impossible
• exacerbated by very limited, or non-existent incentives and funding from the federal and state levels
• the significant upfront cost of designing and installing systems
• uncertainty about the availability of some of the feedstocks needed, and
• a lack of access to capital.

However, all that seems to be changing. Read on and we will explain how this is happening at the Federal and State levels.

A US National Overview of The Potential of Biogas Production

The US is beginning to recognize the potential of biogas as an energy source and is taking steps to encourage its production. State regulations and funding are playing an important role in this shift. States are beginning to implement regulations and incentives that encourage biogas production, as well as provide economic and environmental benefits.

States are implementing regulations to help ensure biogas producers comply with environmental standards. They are also providing incentives to help reduce the cost of biogas production. These incentives include tax credits, grants, and other financial assistance. In addition, states are providing support for the development of anaerobic digestion and biogas production facilities.

The economic benefits of biogas production in the US are clear. Biogas production can reduce energy costs, create new jobs, and increase economic activity. In addition, biogas production can provide a reliable, renewable source of energy that can help reduce our reliance on fossil fuels.

The environmental benefits of biogas production are also significant. Biogas production can reduce greenhouse gas emissions and help improve air quality. In addition, biogas production can reduce waste, as it can convert organic waste into useful energy.

As the US continues to recognize the potential of biogas as an energy source, it is important that states continue to support and extend their incentives to biogas production through regulations and low levels of seed finance funding.

The potential economic and environmental benefits of biogas production make it an attractive option for states that are looking to reduce energy costs and improve air quality for their citizens and businesses.

Federal Incentives – Regulatory Instruments and Funding for Biogas

The use of biogas is on the rise in the United States as more states adopt regulations that support the production and use of this renewable energy source. Biogas is certainly a renewable energy source. It is produced from the anaerobic digestion of organic materials such as food waste, manure, wastewater, and sewage sludge. It is a clean, renewable energy source that can be used to generate electricity, heat, and transportation fuel.

At the federal level, the U.S. Department of Energy has set a goal of reducing greenhouse gas emissions to net-zero by no later than 2050.

To achieve this goal, the U.S. Department of Energy has released a number of policies and funding opportunities to spur the development of renewable energy sources, including biogas. The federal government also provides funding for research and development of biogas technology, as well as for projects that convert waste into energy.

A List of 6 Federal Incentives for Anaerobic Digestion in the US

We have found the following list of 6 Federal Incentives – Regulatory Instruments and Funding Initiatives, which apply to biogas projects:

1. The US Inflation Reduction Act
2. US EPA Support for Biogas
3. A Possible New US Energy Policy Act
4. Rural Energy for America Program (REAP)
5. Renewable Portfolio Standards
6. California Air Resources Board (CARB) Funds.

In the sections which follow we provide details of the 6 existing incentives:

1 – The US Inflation Reduction Act

The Inflation Reduction Act was passed by the U.S. House of Representatives in August 2022 and is the biggest recent development of several in this area.

The Inflation Reduction Act of 2022, calls for unprecedented investments in spending and tax policies to encourage the expanding production of clean energy facilities and set the United States on a road to 40% emissions reductions by 2030.

The US Inflation Reduction Act provides many opportunities for investors as it extends the current investment tax credit for spending money on clean fuel production infrastructure.

Andrew Benedek, Chairman, and Chief Executive officer of Anaergia, a major producer of renewable natural gas (RNG), released a statement in favor of the bill.

He said that the US Inflation Reduction Act will do more to reduce greenhouse gas emissions in the United States than any other legislation in the nation’s history. 

Renewable Fuel Standard Incentivizes Biogas Use

At the federal level, the Renewable Fuel Standard (RFS) has recently been introduced and provides incentives for biogas production and use in transportation.

The RFS requires that a certain percentage of transportation fuels must come from renewable sources, such as biogas.

2 – US EPA Support for Biogas

The EPA has also developed the Renewable Fuel Standard (RFS), which requires the use of renewable fuels such as biogas in transportation and other applications. The RFS is designed to reduce the quantity of greenhouse gases emitted by motor vehicles.

The EPA also supports the research and development of biogas production technologies, as well as providing technical assistance to biogas projects.

It provides a wide range of educational materials to help raise awareness of the benefits of biogas production.

The EPA has also created a voluntary program, called the Greenhouse Gas Reporting Program, which encourages businesses and organizations to report their emissions of greenhouse gases. This program is designed to help identify areas where biogas production can reduce emissions.

By encouraging biogas production, the EPA is helping to reduce greenhouse gas emissions and promote renewable energy sources. The agency’s efforts are helping to make biogas a viable alternative to fossil fuels and providing economic and environmental benefits to the US.

In addition, the US Environmental Protection Agency (EPA) has established regulations on emissions from biogas production, including limits on greenhouse gas emissions and other pollutants.

3 – New Hope for Improved Biogas Energy Incentives Under New US Energy Policy Act

The Energy Policy Act of 2005 provided tax credits for the production of biogas but the credits expired in 2007. Only very recently in October 2022 has the U.S. Treasury begun a series of meetings with utilities, labor unions, clean power organizations, and others to set specific guidelines for $270 billion in recently authorized incentives for green energy projects.

It is true that many states have implemented renewable portfolio standards that require utilities to produce a certain percentage of their electricity from renewable sources. But these standards have been largely limited to solar and wind energy.

4 – Rural Energy for America Program (REAP)

The potential for federal and state funding to increase biogas production and use is growing.

For example, the recent passage of the Farm Bill in 2018 included funding for the Rural Energy for America Program (REAP), which provides financial assistance for projects that reduce energy costs. In addition, the EPA has recently proposed several regulations that would provide incentives for biogas production and use.

How the Rural Energy for America Program 2021 Provides Support for Biogas Facilities

The Rural Energy for America Program (REAP) Improvement Act of 2021 amended the prior regulations and increased financing for the REPA, with a special emphasis on greenhouse gas reduction. The Department of Agriculture (USDA) encourages energy efficiency and the growth of renewable energy for agricultural producers and rural small businesses via the program.

The ability of a project to reduce greenhouse gas emissions and offer other climate benefits must be taken into account by USDA as part of the selection criteria for a grant or loan from the program. Additionally, the measure forbids USDA from limiting the volume of energy produced with the help of a grant or loan.

The measure also broadens the program by allowing nonprofit groups, energy cooperatives, and agricultural producer cooperatives to participate.

Support for Biogas at the Individual State Level

At the state level, many states have implemented their own regulations and incentives to support the growth of biogas. For example, some states offer financial incentives to biogas producers, such as tax credits, grants, and loans.

5 – Renewable Portfolio Standards Support Biogas

In an interesting development, some states have established renewable portfolio standards, which require that a certain percentage of electricity must come from renewable sources, such as biogas.

The combination of federal and state regulations and incentives has been key to the growth of the biogas industry in the US since 2021 and the arrival of President Biden.

The industry is still relatively small compared to other sources of renewable energy, but its potential for expansion is significant. With continued support from both federal and state governments, biogas could play an increasingly important role in the US energy landscape in the coming years.

At the state level, many states have adopted regulations that promote the development and use of biogas.

California's Renewable Portfolio Standard (RPS)

For example, California has adopted a Renewable Portfolio Standard (RPS) that requires utilities to obtain a certain percentage of their electricity from renewable sources such as biogas. Other states are taking similar steps to promote biogas, with many offering tax credits and other incentives to encourage its production and use.

The potential benefits of increased biogas production and use in the US are significant.

In addition to the merits of biogas already mentioned here, biogas can help to reduce carbon emissions and create jobs, while also providing an alternative to traditional fossil fuels. In addition, biogas can help to reduce waste, cut costs, and support local agriculture.

Washington is the greenest state, according to ConsumerAffairs' grading methodology. It stands out for producing a disproportionately greater amount of conventional hydroelectric electricity as well as overall renewable energy. Oregon, New Hampshire, Vermont, and Maine come after it.

6 – California Air Resources Board Support for Anaerobic Digestion Facilities

In California, which is another leading renewable energy state in the US, funding for biogas and energy from waste is available through the California Air Resources Board (CARB). This funding can be used to help with the development and implementation of biogas projects, as well as for research and development of biogas technology.

The rise of biogas in the US is an encouraging sign for the future of renewable energy. With the right federal and state regulations and funding, the US can become a leader in the production and use of this clean, renewable energy source.

Opportunities for the American Anaerobic Digestion Industry Growth

The development of biogas as a renewable energy source is gaining momentum in the US, and federal and state regulations are helping to spur that growth.

Biogas is not just a form of renewable energy produced through the anaerobic digestion of organic waste. This process can reduce greenhouse gas emissions and provide a more sustainable form of energy. In addition, biogas production can reduce the amount of landfill waste and reduce air and water pollution.

The Energy Independence and Security Act of 2007 made anaerobic digestion a part of the federal and state renewable energy portfolio. This legislation was the first to open up new opportunities for the size of the American anaerobic digestion industry to grow.

The EPA has also set a goal of installing anaerobic digestion plants at all sewage treatment works (municipal wastewater treatment facilities) by 2035. This effort can significantly reduce methane emissions and create a new source of renewable energy and is to be welcomed.

US Food Waste Reduction Targets will be Enabled by Energy Extraction from Food through Biogas Production

New sources of biowaste in the United States, such as domestic source-segregated kitchen waste curbside collection, are also helping to increase the amount of biogas available for use.

States such as California, Massachusetts, and New York have already implemented separate food waste collection, and alongside the US National Target, to reduce food waste by 50% such programs will proliferate in the near future.

The potential economic and environmental benefits associated with biogas production are numerous. Biogas can be used to generate electricity, heat homes, and power vehicles. But, not least is the fact that extracting the energy from food waste will be able to fund the necessary source-segregated food waste collection of household kitchen scraps.

With the right regulations and funding, the anaerobic digestion industry will help in a host of integrated and symbiotic ways to create a more sustainable future for the United States.

Opportunities for the Private Sector to Invest in Biogas Projects

The need for renewable and sustainable energy sources is more pressing than ever, and biogas is a resource that can help the US meet its growing energy needs.

The process of producing biogas is much cleaner and more efficient than other forms of energy production. In addition, biogas can be used to generate electricity, which can be fed into the national grid and can be used to fuel various transportation and industrial applications.

With the right federal and state regulations and funding, biogas development in the US can continue to grow. In recent years, the federal government has implemented various tax credits and incentives to encourage the growth of biogas projects.

These include the Biogas Production Incentive (BPI), the Biogas Production Tax Credit (BPTC), and the Renewable Fuel Standard (RFS). Furthermore, many states have passed their own laws to support biogas projects, such as the California Biogas Production Incentive Program.

US Inflation Reduction Act Opportunities

The Inflation Reduction Act has a number of provisions that will help newly constructed U.S. biogas facilities:

The Act has a number of provisions that will help newly constructed U.S. biogas facilities:

• The Investment Tax Credit (ITC) has been enlarged to cover biogas property built before the end of 2024. With a potential 10% additional credit for projects that fulfill domestic content standards, the credit rate may amount to 30% of the investment. Biogas company Anaergia anticipates that a number of biogas facilities now being built in the US will immediately benefit from the extended ITC.
• The introduction of a fresh tax credit beginning in 2025 to encourage domestic production of clean fuel. The proposed tax credit would be applicable to all transportation gasoline sold up to the end of 2027 and may be up to $1 per gallon of nonaviation fuel. This clean fuel production credit has the potential to directly assist a large number of biogas plants, both current and under construction.
• The 45Q tax credit for sequestering carbon dioxide might be extended and modified to provide credits of up to $85 per tonne of geologically sequestered carbon. For the first 12 years of the facility's operation, this credit would be available to facilities that start construction before the end of 2032.

The potential for private sector investment in biogas projects is clear. Investing in biogas projects can bring both economic and environmental benefits.

Biogas can both provide a source of revenue and can help reduce emissions of greenhouse gases. Furthermore, the cost of biogas production is falling due to advances in technology and increased competition.

Public-Private Partnerships

Public-private partnerships are essential in supporting the growth of biogas projects in the US.

By encouraging private sector investment in biogas projects, the government can ensure that the projects are financially viable and can help to reduce the time and cost associated with the development of biogas projects. In addition, private sector investors can bring valuable experience and expertise to the table, which can help to ensure the successful completion of biogas projects.

We conclude that investing in biogas projects can be a great opportunity for the private sector. With the right regulations and funding in place, biogas development in the US can continue to grow, bringing both economic and environmental benefits.

Anaerobic Digestion Case Studies

Examples of successful anaerobic digestion projects in America.

As the use of biogas for energy production in the US grows, anaerobic digestion (AD) is becoming an increasingly popular form of renewable energy.

In the US, AD is being used in a variety of ways, including for energy production, wastewater treatment, and fertilizer production. But what are some of the most successful AD projects in the US?

One of the most prominent Anaerobic Digestion systems in the US is located in New York City. The Newtown Creek Wastewater Treatment Plant has been operational since the early 2000s and is the largest anaerobic digestion system in the US.

This facility processes wastewater while producing energy in the form of biogas. The biogas produced by the plant is used to generate electricity and heat, which powers the facility and parts of the surrounding area.

Research published by the US Department of Energy has found that the Newtown Creek facility is a successful example of an AD project and that its operations have a positive environmental impact.

Home Biogas Plants in the US

In recent years, home biogas plants have become more popular among the uses of anaerobic digestion in the US. These systems are small-scale AD systems that are used to produce biogas for cooking and heating for family homes. They can also be used to produce nutrient-rich fertilizers for their gardens and house plants.

Many people are using them to utilize their kitchen waste while at the same time reducing their reliance on traditional energy sources.

Research Shows Anaerobic Digestion in the US Economically Viable with a Positive Environmental Impact

Finally, there are many research papers published about anaerobic digestion facility performance and economic operation. These papers provide valuable insight into AD system design, operation, and maintenance. They also provide evidence that AD systems can be economically viable and have a positive environmental impact.

Impacts of Biogas on the Environment

Biogas can have a tremendous impact on the environment by reducing greenhouse gas emissions and improving air quality. The use of biogas can reduce reliance on fossil fuels, which in turn will reduce the amount of carbon dioxide emitted into the atmosphere.

Biogas production can also reduce the amount of organic waste that is sent to landfills, which can help reduce the impact of landfills on the environment.

Biogas can also improve soil fertility, as the biogas produced can be used as a fertilizer. This can help reduce the amount of chemical fertilizer needed for agricultural production, which can help protect water sources from contamination.

The US government has set ambitious goals to increase the use of biogas, and many states have begun to incentivize biogas production through grants and other funding. With the help of federal and state regulations and funding, the US will continue to lead the way in the development and use of biogas.

Is Biomethame the Future of Biogas in the US?

Biomethane is an increasingly popular form of renewable energy that is being explored in the US as a way to supplement existing renewable energy sources and reduce greenhouse gas emissions in the short to medium term.

Biomethane is the purified form of biogas produced by the decomposition of organic matter, and once compressed biomethane can be used to replace fossil fuel natural gas. It can for example fuel low emissions transport vehicles and be injected into natural gas networks as a fossil fuel replacement.

This gives biomethane a premium value above that of the raw gas “biogas”. However, as described in the next section, biomethane is just about to become useful in a whole new way. We are talking about the hydrogen fuel economy predicted as the next step to take the globe to net zero and beyond!

Hydrogen production from Biomethane

One exciting development in the biogas industry is the potential to produce hydrogen from biogas which has been upgraded to pure methane (biomethane). Hydrogen production from biomethane is becoming increasingly popular due to the ability to produce renewable hydrogen this way. Using natural gas (a fossil fuel) would be to negate all but a few of the benefits of hydrogen fuel.

The process of producing hydrogen from biomethane is relatively simple:

• biogas is first separated into its two main components, methane and carbon dioxide. The methane is then processed in a reformer, which uses heat and pressure to convert the methane into a mixture of hydrogen and carbon dioxide.
• The hydrogen is then collected and can be used for fuel production, electricity generation, and other industrial applications.

The US Department of Energy has recently announced funding opportunities for hydrogen production from biomethane.

This funding could be used to develop and deploy advanced technologies that make hydrogen production from biomethane more cost-effective and efficient. Additionally, the US Environmental Protection Agency has established regulations that encourage the use of biogas for hydrogen production.

As the biogas industry continues to grow in the US, hydrogen production from biomethane will become increasingly attractive.

With the right incentives and regulations in place, hydrogen production from biomethane can help reduce carbon emissions while providing a reliable source of renewable energy.

Concluding Our Article on “The Rise of Anaerobic Digestion in the US: Federal and State Regulations and Funding”

The use of biogas as an energy source is on the rise in the United States, due to both federal and state regulations and funding initiatives.

Biogas is a renewable energy source produced from the decomposition of organic matter, such as food waste, manure, and other organic materials. So it is certainly “green” and sustainable, and an excellent way to show a company's commitment to sustainable business.

In this blog article, we explored the federal and state regulations and funding initiatives that have driven the recent rise of biogas energy in the US.

We also looked at the long-term potential of biogas energy as a viable renewable energy source.

Our conclusion is that the future is bright for anaerobic digestion in the US.

There are also many excellent investment opportunities for anaerobic digestion in the US available to those who wish to be involved in reducing climate change while others have yet to appreciate the profitability of well-established and proven biogas technology.

Appendix: US Anaerobic Digestion Facility Case Studies

Anaerobic Digestion In The US Northwest

(This article section was first posted in April 2012.)

In addition to dairy digesters, some were even, back in 2012, operated as co-digesters, two projects in development at that time were designed to process source-separated food waste streams.

Article originally published in “BioCycle Magazine”; March 2012, Vol. 53, No. 3, p. 33 – by Dan Sullivan.

Washington, Oregon, and Idaho are experiencing an uptick in on-farm anaerobic digestion projects, with a total of 13 manure-based digesters between them (USEPA AgSTAR data). Additional farm digester projects are in development.

The Northwest also will soon be home to a number of digesters being designed and built primarily to process food waste streams.

These include Columbia Biogas in Portland, Oregon, and Green Lane Energy outside of Junction City, Oregon. This roundup features a few of these new and developing projects in the Northwest region.

Case Study 1: Lochmead Farms, Inc./Revolution Energy Solutions – Recently Operational in 2012

“They’re the kind of guys that make changes in American agriculture.”

So says Alan Tank of Revolution Energy Solutions, which installed a patented, psychrophilic (low temperature), sequential-batch anaerobic digester on Lochmead Farms, a 3,000-acre, 750-cow dairy operation near Junction City, Oregon, owned by Buzz and Jock Gibson, brothers and third-generation farmers.

“We design, build, own and operate,”

explains Tank, a managing partner who has been involved in agriculture and food production his whole career.

“We understand that every dairy or other livestock farm in the United States already has a complex manure management system that is existing and paid for,”

he says, therefore to make AD projects work they must enhance what’s already in place.

“We say, ‘We’re going to bring all capital, we want you to bring the feedstock.’ That’s the premise we start with.”….

Funding for the $2.2 million project included Oregon’s Business Energy Tax Credit (BETC) program, which can cover up to half of the eligible project costs, and federal 1603 Treasury Grant funds, which can cover up to a third of eligible costs. Since some of those “eligible costs” overlap and can’t be funded twice,

“you get cut one way or the other,”

notes Tank.

Case Study 2: Farm Power – Operational in 2012

Farm Power Northwest, LLC, has five major anaerobic digesters (AD) projects online for completion or in the works in the Pacific Northwest.

These include Farm Power Rexville and Lynden in Washington State, with Rainier Biogas (under construction in 2012), and Farm Power Tillamook and Misty Meadow (under construction in 2012) in Oregon.

In 2007, brothers Kevin and Daryl Maas founded the company, which uses a community-based build-own-operate project development model.

Farm Power Rexville encompasses a 750 kW mixed plug-flow digester served by a total of 1,500 cows on two adjacent farms. Farm Power Linden is similarly configured, only it serves 2,000 cows, and one of the partnering farms heats a 3-acre greenhouse with waste heat from the generator set. Both are co-digestion projects that take in food waste.

Rainier Biogas near Enumclaw, Washington, was set up to manage the waste of 1,400 cows on four neighboring dairy farms and specifically to capture and export nitrogen and phosphorous out of a sensitive watershed…….

Another challenge in Oregon has been the dropping price point of electricity. About 50 percent of the region’s electricity comes from hydro, and it’s relatively inexpensive (2012 comment).

“We moved into Oregon knowing the prices of power [5-6 cents/kWh] were lower than in Washington,”

he notes.

“That’s why we focused on just these two projects. If we were out there to really push the envelope, I think the falling power prices would have clobbered us.”

Farm Power Tillamook is a 1,000 kW mixed plug-flow digester designed for 1,800 cows on three neighboring farms and is scheduled to begin producing electricity sometime in April 2012. Just a few miles away, Farm Power Misty Meadow represents the third digester project in Tillamook County and the second owned by Farm Power.

“Both of these projects are within a mile of downtown Tillamook,” says Maas. “It’s great to be there and great to have the community support the dairy industry. It’s important to us to be in a place where they want dairy farms to stick around … and it’s better for stakeholder engagement.”

Case Study 2: Rock Creek Dairy/New EnergyOne, LLC – Reporting During Their Start-Up Phase (in 2012)

Three adjacent dairy farms in Filer, Idaho, owned by Bettencourt Dairies and operated under the name Rock Creek Dairy, will supply manure to a new anaerobic digester project being developed by New Energy One, LLC. The project will utilize digester technology from Northern Biogas of Green Bay, Wisconsin, and will be operated under contract with New Energy One by Standley & Co. of Jerome, Idaho. It will treat manure from 8,900 cows. Northern Biogas is supplying six approximately 1 million gallon vessels; five will be used to process the manure and one will be available for experimentation and research……..

The installed capacity of the project is 3 MW.

“We are putting in two Caterpillar G3520 units,”

says Kesting, adding that since Western States is a Caterpillar dealer the company was able to use CAT nonrecourse project financing and thereby minimize financial risks.

New Energy One has signed a power-purchase agreement with Idaho Power. The project represents the fourth digester in Idaho’s Magic Valley. The first manure was added to the tanks in early February. Initial energy production is scheduled for March and full-scale operation is expected by August 2012.

Heat from the engines is being used to heat the digesters. A chemical separator is being installed for phosporus removal.

“Chemical polymers sequester the phosphorus, and it stays with the fiber as opposed to going back to the lagoon,”

he explains.

“We’re able to pull out about 85 to 90 percent of the phosphorus.”

There are currently no plans to process any off-farm organics.

“Part of the permit with the county states that any outside organics have to be approved by the county,”

Kesting says.

Case Study 3: Columbia Biogas – During Development And Construction in 2012

A $55 million biogas facility on an 11-acre site within the city of Portland, designed to provide 4.2 MW of power at build-out, is on track for an August 2013 startup.

“We have our permits with the Oregon Department of Environmental Quality, have a solid waste franchise agreement, air quality permits from the state of Oregon and have had a preapplication meeting with the city of Portland for construction,”

explains project engineer Dale Richwine.

A Good Neighbor Agreement with local residents provided a means to incorporate input from the community into the design. The facility will provide up to 15 full-time jobs. In order to secure Section 1603 Treasury Grant funds, Columbia Biogas had to invest at least 5 percent of project costs in order to qualify for “Safe Harbor” before that potential funding stream — for up to 30 percent of eligible costs — expired at the end of 2011.

“We actually purchased our tanks last December, and they will be delivered in April to our warehouse,”

says Richwine. A final hurdle is securing a guaranteed maximum price (GMP) from the general contractor, hand-in-hand with finalizing financing.

Phase I of the project will involve processing 100,000 tons annually of mixed food waste, industrial solids and liquids from local industry, along with grease trap waste……

“We plan to break ground in June of this year,” he notes.

……The biggest challenge fitting a biogas project into an urban setting is to make it cost-effective, says Richwine.

“You can’t land apply the digestate, and you have to treat the liquids so they can be discharged to the sanitary sewer.”

To tackle both environmental and economic concerns, the project will enlist such technologies as ammonia stripping in order to both create value-added products (e.g., ammonium sulfate and calcium carbonate) and minimize impacts to the local sewer system.

Case Study 3: Green Lane Energy – At Construction Stage in 2012

A $13 million bioenergy plant near Junction City, Oregon, will turn waste straw, commercial organics such as vegetable and fruit waste and FOG (fat, oils and grease) collected from the city of Eugene, and livestock manure from area dairies, into 1.6 MW of electricity through anaerobic digestion.

Funding for the project includes $2 million from the Energy Trust of Oregon, a nonprofit that channels public-purpose funds collected from ratepayers within the service territory of investor-owned utilities to energy efficiency and renewable energy projects.

Funding also included a 1603 Treasury Grant for up to a third of eligible project costs, a 1605 American Recovery and Reinvestment Act grant, a $3 million renewable energy grant from the state of Oregon, and a $1.725 million grant from the U.S. Department of Energy.

The projected return on investment is 10 years. The project will utilize continuous-stirred reactor wet digester technology supplied by Entec biogas Gmbh.

The industrially zoned site sits adjacent to 10,000 acres of broad-scale agriculture, mostly grass seed production, says project engineer Dean Foor. All permits are in place and excavating has begun, but construction was stalled due to some initial cost overruns. Concrete work is now scheduled to begin in April.

…….. “All supply and off-take agreements are in place,”

says Foor, also commenting on the chicken-and-egg nature of getting feedstock agreements in place prior to project completion.

“It’s incredibly painful to build the relationship with folks who supply that material in a way that they believe you are going to accomplish something that hasn’t been done before, and that they should contractually obligate themselves to that.”…

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[Post first published in 2012. Updated in July 2019. Rewritten, and extended in January 2023.]