AgriClean David C. Palmer, P.E. Managing Partner Cost-effective Anaerobic Digestion Technologies and Their Role in Green Power

AgriClean, LLC An emerging leader in the areas of manure management & anaerobic digestion Not an outfit with an answer in search of a problem Rather, a solutions oriented company that can provide a least-cost customized method to meet customer needs Specializing in dairy, swine and agricultural processing wastes Energy Recovery AgriClean

AgriClean, LLC Significant technological solutions AgriJet process can significantly reduce water volumes used for flushing AgriGas process can provide a tailored AD solution AgriClean can optimize organic waste removal and treatment systems plus energy recovery AgriClean

Types of Digesters Used Depends on… Type of waste (feedstocks) Feedstock total solids (TS) concentration Facility location Management structure AgriClean

With Livestock Operations Manure Management Systems Traditional flushed barns have dilute total solids (less than 3%) Scraped barns have higher total solids (greater than 3%) AgriClean

Flushing Example #1 AgriClean

Flushing Example #2 AgriClean

Anaerobic Digestion (AD) System Options Suspended Growth Systems Solids Retention Time = Hydraulic Retention Time (SRT = HRT) Covered Lagoons Complete Mix Attached Growth Systems SRT ≠ HRT Fixed Film Others in development pipeline AgriClean

AgriJet Substitutes pressure for volume in hydraulic flushing operations Can reduce water use by up to 80% in new facilities and 50% in existing facilities Programmable control system set to flush at user-specified, such as milking times All pipes, nozzles and gutters positioned to allow animal movement and to avoid breakage AgriClean

AgriJet Depending on design criteria, AgriJet can deliver manure to the digester with up to 6% Total Solids Greater Total Solids can significantly reduce AD system cost! More organic loading = higher gas yields and greater energy potential AgriClean

AgriJet Dairy Farm Example A 1,000 head dairy using standard hydraulic flushing techniques would use a flush volume of about 100,000 gallons/day Conventional digester would require a volume of around 2,000,000 gallons AgriJet system on the same farm will require 35,000 gallons/day for flushing Fixed-film digester w/ a volume of 175,000 gallons Other system aspects (pipes, heat exchangers, pumps, solids separators, etc.) are also made smaller AgriClean

AgriGas AgriClean has several types of AD systems with gas capture in its portfolio Covered lagoon Fixed film AD licensed from the patent-holder Continuously stirred (complete mix) AgriClean

Fixed Film AD System Development AgriClean

Fixed Film AD System Advantages Designed for use w/ dairy manure, but also well suited for hog manure Small footprint 2-6 day HRT v. 20 days for suspended growth Modular design Deployed at ~30% less cost than suspended growth High Methane yields Up to 80% Methane v. ~60% for suspended growth Very high destruction of Volatile Solids (VSd) Up to 65% VSd w/ hog manure AgriClean

On-Farm Projects Underway Fixed-film digester and biogas use system on a 400 head dairy (around 560 animal units or AU) near Hillsboro, MS in partnership with the Mississippi Alternative Energy Enterprise Fixed-film digester and biogas use system on a swine finishing farm producing 30,000 animals/year (around 1600 AU at steady-state) near Greenville, NC in partnership with the Animal and Poultry Waste Management Center of NC State University Fixed-film digester and biogas use system on a swine farrow-to-finish operation producing 64,000 animals/year (around 3580 AU at steady-state) in Canada Covered lagoon digester and biogas use system on a 4000 head swine nursery farm in Montpelier, MS AgriClean

Ag Processing Plant Projects Underway Fixed-film digester and biogas use system at a 1000 head/day beef packing plant Covered lagoon digester with biogas capture at a 6000 head/day swine processing facility AgriClean

What is Green Power…? Solar Wind Geothermal Biomass AgriClean

What is Biomass…? Wood, forestry residuals Agricultural waste Industrial waste Municipal waste Food processing residuals Other organic by-products Crops grown for energy production AgriClean

What is Anaerobic Digestion…? A biological process that occurs in the absence of dissolved oxygen Three temperature ranges for AD Psychrophilic (ambient…swamps, sediments of lakes and ponds, landfills, intestines of animals) Mesophilic (95-105 degrees F) Thermophilic (125-135 degrees F) AgriClean

How is Biogas Produced? Microbiological conversion of organic wastes into methane, carbon dioxide and trace elements like hydrogen sulfide Amount and quality of biogas depends on the composition and biodegradability of the feedstock AgriClean

How is the biogas used to create energy? Most efficient use is to replace other fuel sources like natural gas or propane The gas can also be used to fuel engine generators or microturbines to produce electricity In some cases the gas is used to fuel vehicles AgriClean

Utility Issues Interconnection agreements System and generation protection requirements Normal and emergency operating provisions Metering Cost and ownership Power sales agreements AgriClean

Harris Farm Project Overview Under contract from the NCAG Smithfield/Premium Standard Farms Agreement for Environmentally Superior Technologies through NCSU’s Animal and Poultry Waste Management Center Projected economics to be at or below the costs of current lagoon/sprayfield-based treatment systems Farm owner agreement allows for the retained ownership of the system by AgriClean AgriClean

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Harris Farm Project Overview 12,000 head finishing farm Animals are added in two barns every two weeks LAW remains fairly constant; w/ tank heated @ 35°C, biogas production should not vary significantly Barns use a pit recharge, pull plug flushing system Flushing schedule is every 3 days Daily flow now in excess of 240,000 gpd 20,000 g/barn/day Changed flush schedule & AgriJet system indicates the use of 30,000 gpd for flushing and 18,000 gpd of flow from the animals 4,000 g/barn/day AgriClean

Harris Farm Project Overview Organic loading used to establish initial volume COD is controlling factor Based on the lab analyses, digester loadings at 48,000 gpd will be: Component Concentration (mg/l) Pounds TS 25,216 10,079 VS 21,490 8,589 COD 40,227 16,079 TKN 2,880 1,151 AgriClean

Harris Farm Project Overview Farm connected to the electrical grid Sales agreement to sell peak power to Greenville Utilities from existing diesel engine/generators Current plan is to offset the increased farm load resulting from the waste treatment facility Present utility rates and standby charges in North Carolina make it uneconomical to sell excess power Exploring using the biogas to meet farm’s existing peaking contract May provide an economical sales structure to sell peak power from the biogas AgriClean

What are the economics of producing Green Power from Anaerobic Digestion? It costs about 6.5 cents per KWh to produce electricity from AD In most parts of the country, the price utilities will pay for this renewable energy is about half what it costs to produce it Currently the environmental benefits of AD (odor control, water, air and land pollution reduction) are the driving factors in selecting this as a preferred waste treatment option AgriClean

How can utilities encourage the development of this source of Green Power? Progress Energy has a target of 5% of its load from Green Power (about 1,100 MW) Some others have targets as high as 25% TVA and its distributors offer a Green Power Switch program including solar, wind and biomass AgriClean

AgriClean Contacts Nashville TN, David Palmer @ 615-279-9797 Scott Pogue @ 615-594-8657 Pierre SD, Phil Lusk @ 605-224-4334 agriclean@agriclean.com AgriClean