Capital investment

The items needed for capital investment may include land acquisition, site development, buildings and structures, equipment, engineer and contractor fees, permitting. A developer or engineer can define the items needed more clearly. Once defined, the options for securing these include self-financing, lender financing and third-party investment. All these options can and should consider available government support and/or subsidies.

Operating expenses

There can be “new and unfamiliar” operating expenses for an anaerobic digester. Some of these may include:

engineering costs and permits
construction insurance
interconnection (to the electric grid) costs
digestate storage
dairy digester management and oversight
H2S removal

While farm staff may be able to adapt to many of the tasks for digester operation and management, this will likely take some specialized support and assistance and will take time away from the dairy.

Potential revenues

Each potential revenue source, while real, will take some negotiation of specific requirements and possible relationships.

Tipping fees

Tipping fees can be earned by taking on more manure volumes from nearby farms or other organic materials from plants, businesses, etc. These must be identified and negotiated.

Biogas sales

Biogas sales will require identifying users (off-takers) and negotiating agreements with these parties.

Digested solids

Digested solids sales as a fertilizer to nearby farms will require standardization, perhaps some testing and negotiation of the terms with the buyer.

Separated solids post digestion

Separated solids post digestion may have value to users in other industries. These high-fiber materials may be of value to the lawn and garden or the construction industry. Again, this will require identifying potential users, producing a standardized product and negotiating the terms for an agreement.

Credits

Credits can be acquired and can support the digester budget. These need to be clearly identified, their applicability assessed, and their relatively strict rules followed. Some of these include Renewable Fuel Standard, Low Carbon Standard and Carbon Offset Credit.

Digester FAQ's