Integrated Manure Biogas Systems: Impacts on Farmers & Their Rural Communities Bruce T. Bowman Expert Committee on Manure Management Canadian Agri-Food Research Council Presented to: Enhancing Biogas Opportunities in Alberta Edmonton, AB April 3, 2006

Objective 1 To identify and discuss links between: Environmental issues, Economic issues, and Societal issues ….. …. challenging livestock farming that can be mediated by manure processing. (e.g. treating the entire manure volume)

Rural Society Benefits Objective 2 To demonstrate the central role of manure processing & farm bio-energy systems for revitalizing rural economies - GHG’s - Odours - Pathogens - Deadstock Environmental Remediation Nutrient Issues - Conservation - Recycling - Nutrient availability A.D. Manure Processing Biogas Farm Economic Benefits Farm Bio-Industries Rural Society Benefits

Priority Issues for Manure Management Three primary issues to manage: Nutrients Odours Pathogens ............................. but also ……. Large water volumes Carbon (O.M.) - new use Energy = $$$ Soil Quality

Conserving Nutrients: Gaseous Nitrogen losses from Manure Two major loss pathways: As volatile ammonia (NH3) Rapid losses can occur at any stage of handling with continued exposure to air. As nitrous oxide (N2O) (GHG – 310x effect of CO2) More prevalent under reducing/denitrifying conditions.

Conserving Nutrients: Ammonia losses from Manure Ammonium (NH4+) - non-volatile; Ammonia (NH3) - volatile pH 9.4 [NH3] / [NH4+] = 0.50 (50.0%) @(20°C) pH 7.5   [NH3] / [NH4+] = 0.018 ( 1.8%) pH 7.0   [NH3] / [NH4+] = 0.0056 ( 0.56%) Keep pH near 7 (neutrality) to minimize NH3 losses Ammonia losses are rapid from bare floors; Remove manure when fresh to closed storage to minimize NH3 losses.

Conserving Nutrients: Ammonia losses from Manure Why should we minimize these losses? Increasing replacement costs for commercial N = $$$ - Urea production  energy intensive + GHG emissions Ammonia emissions receiving more scrutiny from both animal and human health perspectives (smog potential – aerosols - lower Fraser Valley in BC) Ammonia - a toxic substance under CEPA (Canadian Environmental Protection Act) Secondary source for nitrous oxide (N2O) production.

Trends in the Fertilizer Industry -- Post WWII (1945) -- Cheap & plentiful mineral fertilizers helped spur intensification and specialization in production agriculture after 1945. Cereal production (cash-cropping) is often separate from livestock production, relying only on mineral fertilizers. Has created some regional nutrient surpluses (Quebec, North Carolina, mid-west USA). Consequence: Nutrients in livestock manures originating from imported feeds - not recycled back to source for next cash-crop production cycle.

LARGE SCALE ONE-WAY NUTRIENT FLOWS Recycling Nutrients & Organic Matter Nutrient inputs Food Products Human Consumption Cereal Production Local Farm Manure Odour Pathogens Wastes Landfills Annual Mineral Fertilizer Additions Nutrients & O.M. NOT recycled Regional nutrient excesses

Exporting Surplus Livestock Nutrients The need to export surplus nutrients will increase with continuing intensification of livestock operations. Conditions for exporting surplus manure nutrients: Odour-free Pathogen-free Dried (dewatered) for transportation Manure processing (anaerobic digestion) can remediate these issues. Composting also… BUT without renewable energy component.

Anaerobic Digestion A Few Facts Mimicking fermentation in a ruminant stomach (no oxygen). (most digesters are mesophylic ~ 37°C – body temp.) Closed system – no nutrient or gaseous losses (e.g. N) closer N:P ratio than with raw manure – better for crop growth ~ 50% of carbon  biogas (CH4 + CO2, 65:35, tr. H2S) Labile fraction of carbon  biogas (easily converted in soil) Biogas  generate electricity by co-gen units or for thermal uses Digested nutrients in more plant available, predictable form ~ 25% C blown off conventional slurries by bacterial decomposition

Anaerobic Digestion …….. More Facts Certain antibiotics can STOP digestion processes Processing Time: 20 – 35 days @ 37°C Odour Reduction: ~ 90% or more Pathogens Reduced to: ~ 1/1000 to 1/10,000 (37°C) Eliminate pathogens of concern by pasteurizing (1hr @ 70°C)

Why Digest Manure? Potential Benefits Environmental Reduce odours & pathogens - flexibility to export surplus nutrients Conserve nutrients (N) - reduce mineral fertilizer use Reduce gaseous emissions - GHGs, ammonia, hydrogen sulfide Economics Renewable energy generation - energy independence Export surplus Livestock nutrients Emission reduction trading credits Tipping fees – food-grade wastes - 20 – 30% energy boost Societal Reduce siting / zoning problems Regain public support Opportunity for new rural partnerships

Balancing Issues in a Sustainable Farming Operation 1. Yield/Productivity (Economics) 2. Environmental Issues Both are science-based Pre-1965  1-D Yield / Productivity Since 1970s  2-D Societal Concerns Environmental Issues 3. Societal Concerns Perception-based, emotional Can over-ride other 2 factors. Opposition difficult to reverse once initiated Since 1990s  3-D

Challenges Facing Confined Livestock Operations Energy Environment / Health Economics Increasing price volatility (S.E. Asia demand) Less reliable supplies (Declining fossil reserves) Result  Escalating N fertilizer & fuel costs Increasing regulations – nutrients, pathogens Municipal waste issues (biosolids) Rendering / deadstock – limited uses/value GHG emission reductions – Kyoto protocol Increasing livestock intensities – odour Continuing vulnerability of farm incomes Increasing costs of compliance Global market competition

Co-Digestion of Livestock Manures Co-mingling of different manure sources (on-farm, off-farm) and / or the addition of other organic wastes to the on-farm manure stream. Purpose  increase digester efficiency. – Safest option: food-grade wastes (beverage wastes, cooking oils, vegetable wastes, etc.) Benefits Increases biogas output at minimal cost (20 – 30%) Facilitates recycling of organic wastes from the food & beverage industry (tipping fees?) Limitations Current regulations for importing off-farm manure or wastes require Certificate of Approvals – Ontario  changes to allow up to 20% off-farm inputs.

Co-Digestion of Livestock Manures Know your inputs – Keep them consistent. Sudden changes disrupt digester performance. Pre-mix + equilibrate input wastes before digestion. Digester bacteria are highly sensitive to some antibiotics (e.g. tetracyclines) and to some feed additives. Best to pasteurize inputs before digestion (70°C for 1hr). Minimizes competition with digester bacterial culture. Minimizes pathogens in digestate final product.

Barriers to Adoption of Anaerobic Digestion Technology Investment, Incentive & Payback Issues Managing Regulatory Issues Developing Reliability, Trust & Expertise Managing Complexity

Overcoming Barriers to Adoption of Anaerobic Digestion Technology Investment, Incentive & Payback Issues $300K - >$5M, depending on scale of operation – Plant Life –- 20 – 30 yr before reconditioning – Payback –- <7 yr (electricity, solids sales, emission credits) – Breakeven –- 110 cow dairy; 1200 hog; 25,000 poultry Policy Issues – Need complimentary policies & incentives across 3 levels of government - Environ. Loan Guarantees to manage risk (US. Farm Bill) - Standard Purchase Offers for green electricity (Ontario - 11¢/Kwh) - Business Energy Tax Credits (Oregon) – up to 35% of cost Feasibility Assessment - value of odour & pathogen-free manure? A Switch” - Change from societal opposition  Opportunities for new partnerships.

Overcoming Barriers to Adoption of Anaerobic Digestion Technology (cont’d) Payback - Establishing Revenue Streams Electricity Purchase Agreements – Std. Purchase Offers – single most important  long-term stable planning and ability borrow capital Sale of Processed Solids (Org. Fertilizers) – Surplus nutrients exported – promotes nutrient re-use Emission Trading System (currently developing) - sell credits for reducing emissions – 2 cases in USA (Jan. 2006) - recent value of e-CO2 in Europe ~ $10/tonne Tipping Fees for Receiving Food-Grade Wastes – boost biogas output (20 – 30%)  increases revenue

Overcoming Barriers to Adoption of Anaerobic Digestion Technology Managing Regulatory Issues Electrical generation – interconnects for net/dual metering Power Utilities starting to change policies for small renewable energy generators (up to 500 kw) (2-phase/3-phase lines) Off-farm biomass inputs (boost biogas production) can result in C. of A.’s – regulations being changed to allow up to 20% food-grade wastes Managing emissions / discharges Biogas flare, fugitive GHGs, liquid discharges Fertilizer/amendment products - quality assurance, certification; labeling requirements

Overcoming Barriers to Adoption of Anaerobic Digestion Technology Developing Reliability, Trust & Expertise Small number of installed Ag digesters in Canada (< 2 doz. in advanced design or already built) Limited knowledgeable Canadian design/build firms - very limited track record Demonstration Program – AAFC/NRCAN - 3 yr - Energy Co-generation from Agricultural/Municipal Wastes (ECoAMu) 4 digesters (AB – Beef; SK – Hogs; ON – Beef; QC - Hogs) ECoAMu Program On ManureNet http://res2.agr.gc.ca/initiatives/manurenet/en/hems/ecoamu_main.html

Overcoming Barriers to Adoption of Anaerobic Digestion Technology Managing Complexity A.D. adds yet another new technology to be managed by farmer – Time; Skill-sets Service agreements Co-Generation – Power Utility – electricity export Remote monitoring & process control in real-time – practical technology now available from several Canadian companies

A Centralized Co-op Rural Energy System Potential Components Dewatered Digestate Organic Fertilizers Liquid Digestate water Resource Centre Electricity Clean Water Heat CO2 Co-gen Food Grade Organics Co-Located Industries Greenhouses (Veg., Flowers) Fish Farm Slaughterhouse Bio-ethanol plant Local Municipal Organics Rendering, Deadstock Wet Distillers Grain - 15% savings

Farm Bio-Energy Systems: The Concept Electricity Manure solids Emission credits Tipping fees GHG reductions Deadstock Income Stabilization Odours Pathogens Nutrient export & Recycling Reduce herbicide use Environmental Solutions Independent of Livestock prices Heat Electricity Clean water CO2 Farm Bio-Energy Energy Independence Rural Revitalization Municipal Organic wastes Co-located industries Local biomass inputs

Components of Integrated Farm Energy System: Anaerobic Digester – Bio-Fuel Facility1 A.D. livestock manure processing system Biogas  electricity + excess thermal energy used in bio-fuel production facility – increases efficiency Bio-Fuel Plant (output ≤ 10 M L/yr alcohol/bio-diesel) Biomass sources – corn, sweet potato, switchgrass, etc. < 10,000 acres local inputs per facility Byproducts from alcohol plant – value-added animal feed Local Bio-Fuel Refueling Centre  Refueling Network Decreased transportation costs Decreased GHG emissions, air pollution 1 Rentec Renewable Energy Technologies

Lynn Cattle Turnkey Integrated Manure Processing Facility Indoor Beef Feedlot: 5,500 head (11,000/yr throughput) Farm Owner/Operator: Mr. Phil Lynn & Family Farm Size: 4,500 ac Location: NW of Lucan, Ontario Project Start: Early 2003; Expected Startup: Spring 2006 Design/Builder: Rentec Renewable Energy Technologies

Lynn Cattle Integrated Manure Processing Facility Rentec Renewable Energy Technologies www.rentec.ca

Lynn Cattle Integrated Manure Processing Facility Expected Outputs 11,000 head/yr beef (2 cycles of 5,500) 7,000 Mwhr/yr electricity surplus (=1600 users @350Kwh/mo) 9,000 tonnes/yr organic soil amendment/fertilizers 10M L/yr alcohol production Direct GHG emission reductions – 25,000 tonnes/yr e-CO2 Partnerships Local Municipality – will purchase green electricity for municipal buildings, street lighting, sports complexes. A “Green Community”

Lynn Cattle Integrated Manure Processing Facility

Comparison of Bio-Fuel Production Models Centralized Bio-Fuel Production (> 200 M L/yr) Controlled by large energy companies or large co-ops Large source area for biomass inputs  high transportation costs (GHG emissions & air pollution) Most benefits accrue  corporate investors Distributed Farm-based Bio-Fuel Production (<10 M L/yr) Large single farm operations or small farm co-ops Local sources for biomass inputs (↓Transportation/GHG emissions) Increased local employment + Municipal tax base Distributed production facilitates re-fueling centre network Most benefits accrue  local farms & rural communities Once-in-lifetime transition from fossil  bio-fuels happening NOW…. Farmers & rural commmunities need to get involved to benefit.

Examples of Manure-Powered Bio-fuel Production Panda Energy, Dallas, TX is building three, $120M 100 M gal/yr manure-powered ethanol plants in Texas, Colorado and Kansas. E3 Biofuels LLC, Omaha, NE is building a $45 M closed loop alcohol-from-manure facility at a Mead, NE 30,000 head feedlot (8 M bu. of corn/yr  24 M gal/yr) – to be in production Fall 2006. ManureNet Digester Compendium: http://res2.agr.gc.ca/initiatives/manurenet/en/man_digesters.html

In Summary - Benefits Future livestock operations will be structured around bio-energy  energy independence & financial stability for farmers, using anaerobic digestion/co-generation technologies. Facilitates conservation and recycling of resources (nutrients, carbon = $$$) Income stabilization through diversification (New revenue streams independent from cyclic commodity prices, providing stable base for income!)

In Summary - Benefits Reduces environmental footprint Reduced odours, pathogens  diminished societal concerns Flexibility for applying/exporting processed manure products Kills weed seeds – reduces herbicide usage Strengthens rural economy using local inputs (employment, resource inputs – biomass crops) Municipality can be a partner (green wastes, buy energy) Farmer co-ops take increased control of rural businesses ADD value to products BEFORE leaving farm gate Reduced transportation costs for manufacturing (bio-based)

Conclusions Economics are rapidly improving, but policies, incentives & regulations need to be coordinated across 3 levels of government to facilitate adoption. Environ. Loan guarantees, long-term std. purchase offers, etc Access to electrical grids for small renewable generators Farmland energy & conservation subsidies considered by WTO as legitimate “green box” programs – not subject to trade sanctions. Need to increase technical support and assistance to foster timely adoption of the technology. Agriculture sector needs to get involved in bio-fuels production at farm-scale – one-time transition from fossil sources  benefits to rural communities.

Micro CHP (Combined Heating and Power) Distributed Power Generation Electricity + Heat generated at each residence Small engine + generator  replace furnace & water heater 85 % Efficiency Grid

Micro CHP (Combined Heating and Power) Distributed Power Generation Centralized Gas-Fired Plant Micro CHP INPUT 100 Waste Energy 57 <15 Line Losses 4 - 7 Electricity 39 20 Useful Heat Energy >65 Net Useful Energy 36-39 85+

Micro CHP (Combined Heating and Power) Advantages Micro CHP units run on natural gas or biogas More efficient use of resources (15% vs 60% loss) (39 vs 85 % efficiency) Excess electricity exported to grid (10 kw units - $$) Blackout & Terrorist proof (totally distributed generation) Significant GHG reductions Almost eliminate line losses (electricity used on-site) In Ontario – 2 million homes would produce 10,000 Mw – equivalent to several nuclear power plants No environmental assessments required – minor impacts Several thousand units being tested in Europe & Japan; USA senate holding hearings on technology potential

Resource Information on http://res2.agr.gc.ca/initiatives/manurenet/manurenet_en.html 6,500 external web links Several hundred digital technical/research reports Manure Treatment Digester Compendium Nutrient Recovery Ammonia Emissions Nutrient Management Environmental Issues GHG Emissions Odour Management Land Application Renewable Energy Systems Storage & Handling Housing / Feedlots Feeding Strategies Codes, Acts, Regulations Health & Safety Digital Library Expertise Environmental Archive (200 digital reports)