Title: Making money from waste: The economic viability of producing biogas and biomethane in the Idaho dairy industry

Abstract

Milk is presently Idaho’s most valuable agricultural commodity contributing 3.2 % to the state’s annual Gross Domestic Product. The dairy industry is characterized by a high number of large farms, concentrated in southern Idaho. The resulting spatial density of animals causes several environmental impacts. Anaerobic digestion is one promising technical solution to alleviate most of these impacts while simultaneously providing a regional energy source. This analysis assesses the economic viability of using dairy cow manure for either (i) the on-farm production and use of biogas to generate electricity and heat or (ii) the upgrading biogas to biomethane, a natural gas substitute. A non-linear optimization model was developed to optimize the anaerobic digestion plant capacity and maximize the net present value (NPV) for each option by farm size. The analysis implies that at least 3,000 cows per farm are required for an economically viable anaerobic digestion plant operation. For farms with up to 3,600 animals, the highest NPV was achieved for the on-farm use of biogas. Farms larger than that achieved their best economic results via the production of biomethane. In total about 45 % of Idaho’s dairy manure could be utilized by biogas and biomethane plants economically feasible. A highermore » manure utilization rate could be achieved through joint, cooperative anaerobic digestion plants and manure transportation. To do so, we recommend the exchange of information through (e.g.) the use of best-practice examples and provide similar results to policy makers.« less

Authors:

Lauer, Markus; Hansen, Jason K.; Lamers, Patrick ;

• Search DOE PAGES for author "Lamers, Patrick"
• Search DOE PAGES for ORCID "0000-0001-8142-5024"

Thrän, Daniela

Publication Date:

Sun Jul 01 00:00:00 EDT 2018

Research Org.:

Idaho National Lab. (INL), Idaho Falls, ID (United States); German Biomass Research Centre (DBFZ), Leipzig (Germany)

Sponsoring Org.:

USDOE Office of Energy Efficiency and Renewable Energy (EERE), Sustainable Transportation Office. Bioenergy Technologies Office; Federal Ministry of Food and Agriculture (BMEL) (Germany); International Energy Agency (IEA)

OSTI Identifier:

1756493

Alternate Identifier(s):

OSTI ID: 1469342; OSTI ID: 1478242

Report Number(s):

INL/JOU-18-44477-Rev000
Journal ID: ISSN 0306-2619; S0306261918305695; PII: S0306261918305695

Grant/Contract Number:  

AC07-05ID14517

Resource Type:

Published Article

Journal Name:

Applied Energy

Additional Journal Information:

Journal Name: Applied Energy Journal Volume: 222 Journal Issue: C; Journal ID: ISSN 0306-2619

Publisher:

Elsevier

Country of Publication:

United Kingdom

Language:

English

Subject:

09 BIOMASS FUELS; manure utilization; anaerobic digestion; net present value; environmental impact; biogas; biomethane; 09 - BIOMASS FUELS