New webinar: “Methane is an asset, not a liability”
Methane is one of the most exciting and contentious discussions on large US dairy farms today. The webinar 'Monetizing methane’ is the latest episode in the Cainthus ‘An Eye on your Future’ webcast series. Webinar host Aidan Connolly, CEO of Cainthus, was joined by renowned methane expert Frank Mitloehner, US dairy producer Michael Crinion and Mark Stoermann from the company Newtrient, catalyst and partner in the dairy manure business.
The 5 key takeaways from this webinar are:
Methane is broken down in the atmosphere fast and doesn’t accumulate like CO2. The quest is no to produce more methane than what is broken down.
Find the right tech (manure processing) partners that have the same philosophy and values as you have
Get your successors on board as well. They have to understand the value of your decision
Manure digesters are best suited for large dairies (from 2500 cows approx.) when used as biogas. When using a heated digester, gross income can go up to $2,000 per cow per year
Not all systems work in all regions. Manure lagoons for example are not ideal for cold weather conditions.
WEBCAST
PODCAST
Methane: different than carbon dioxide
Frank Mitloehner - Professor and Air Quality, Extension Specialist at UC Davis, Department of Animal Science and also well-known under this Twitter handle GHGGuru - addressed that “methane is not the same as the greenhouse gas (GHG) carbon dioxide (CO2). Methane might be a fast and furious GHG, it is broken down in the atmosphere. As long as we make sure the production of methane does not exceed the speed of breakdown, we don’t contribute to global warming. CO2 does accumulate in the atmosphere, and while methane is a short-lived gas, CO2 has a lifespan of 1,000 years”. Mithloener explained that methane emissions from cattle herds are at consistent levels over time as long as herds are not expanded. When we do increase herd sizes, we should reduce the production of methane. “And this is possible with the use of manure lagoons, manure digesters and methane-reducing feed additives. We should see methane as a valuable asset, not a liability”.
Growth of renewable energy
The rise of manure lagoons and digesters is seen all over the US. In California specifically, it is a hot topic. The Low Carbon Fuel Standard is a market-based program that focuses specifically on reducing carbon intensity of fuels in California. Turning methane into clean biogas and pumping it back into the state's pipelines fits perfectly in this program. “California wants to cut methane emissions by 40% in the coming 10 years and in three years’ time, we have already reduced methane emissions by 25% here”, Mitloehner explains. “It is encouraging to see that anaerobic manure digesters are finally taking off and many investors are looking into it. Not only in California, but also other US states are looking more into low carbon fuel standards. This way, dairy farmers can be part of the solution and create another income stream as well to be able to grow our business”.
One of the dairy farmers using manure digesters is dairy producer Michael Crinion of Ash Grove Dairy who is using a digester and ‘rents’ the manure out to take the methane gas. After 21 days, the manure - free of methane - can be used to fertilize the land. At the webinar, Crinion agreed with Mitloehner that agriculture is one of the solutions to reduce methane. “We have a digester on our farm and I think it can be a good extra income for us. And maybe even in the long run, the production of renewable energy sources can grow up to half of our dairy farm income. With the current tight margins for milk, selling biogas in the form of methane could be really interesting”. I would advise farmers to take time to find the right partners on this topic. It is like finding the right bank to work with. We work with Dynamic, a company that has been building digesters since 2006”.
Revenue per cow
Mark Stoermann is Chief Operating Officer of Newtrient, a company that helps dairy producers reduce their environmental footprint while making it economically viable. Stoermann explained that farmers should look closely at their own operation and make a decision not only based on the opportunity that renewable energy has, but the capabilities on the farm. “It is also important that the next generation is in agreement that this is the right way to go, as your children have to work with the system in the future as well. There is a considerable amount of companies talking to dairy producers and trying to encourage them to sign all kinds of carbon agreements. My advice: don't sign anything before you do a little bit of research yourself. Try to be a reasonable partner yourself and manage your expectations”. Stoermann sees great potential for digesters on large farms. “This is also because some costs are involved to get connected to interstate pipelines. When you use biogas to create electricity, then systems also work well for smaller farms. Potentially, when using a heated digester, 2,000 dollars per cow per year* can be earned as an additional gross revenue on top of the milk, without the (starting) costs included. Think about it”, Stoermann concluded.
* The $2,000 per cow per year is based on the price of natural gas plus D3 RIN’s plus the LCFS Credit of a dairy with a -250 CI score. In actuality the revenue per cow would be dependent on the days that each of these credits are sold and the market price on those days.