TITLE PAGE. from Dairy Manure and Mortality Digester. Keith Henn, Jeff Coombe, John Martin Jr., and Jennifer Purcell

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1 TITLE PAGE Generating Insert Tt World CNG Vehicle Graphic Fuel from Dairy Manure and Mortality Digester Keith Henn, Jeff Coombe, John Martin Jr., and Jennifer Purcell 0

2 !! Rendering Options for Mortality Disposal - Industry consolidation (no renders in Oregon) - Concern about BSE transmission!! On-site burial - Prohibited in some states due to groundwater contamination potential!! Landfill disposal -!Can be expensive (~$140 per unit) -!Not always an option due to operator refusal 1

3 Options for Mortality Disposal (cont.)!! Incineration/gasification - Expensive - Regulatory compliance issues!! Composting - More suitable for small animals (e.g. poultry)!! Anaerobic digestion -!Used in Europe for stabilization of slaughterhouse wastes -!Generates income to offset cost 2

4 Tillamook Background!! Landfilling is the primary current option for mortality management in Tillamook County!! Corvallis landfill currently only one taking mortality!! Expensive (>$250K/year for 160 mile T&D)!! In January 2011, Tetra Tech was selected by the Tillamook County Solid Waste Authority & Bioenergy Working Group to identify viable renewable energy solutions for organic wastes generated in the county 3

5 Bioenergy Technology Options Photosynthesis Biomass Conversion processes Biofuels and Bioenergy Application 6CO 2 + 6H 2 O C 6 H 12 O 6 + 6O 2 Wet biomass (organic waste, manure) Solid (lignocelluosic) biomass (wood, straw) Sugar and starch plants (sugar-cane, cereals) Oil crops and algae (sunflower, soybean) Anaerobic fermentation Gasification Combustion Pyrolysis Hydrolysis Hydrolysis Extraction Crushing Refining Biogas H 2, CH 4 Fuel gas Pyrolytic oil Ethanol Sugar Butanol fermentation Methyl ester Pure Oil (biodiesel) Electricity Heat Liquid biofuels Electrical devices Heating Transport co 2 After Christy, 2008 Transesterification 4

6 The Challenges!! Estimating potential methane yield from dairy cattle mortalities!! Evaluating the risk of BSE and Johne s disease transmission potential via digester effluent!! What, if any, co-substrates are needed to ensure the complete destruction of cow mortality 5

7 Background: Tillamook County, OR!! 110 dairy farms!! 32,000 milking cows in the county 6

8 Tillamook: Primary Project Feedstock Mortalities: 1739 tons/yr Manure: Manual Potential in Tillamook County Dairy Cows Manure Production (gallons/year) Dry weight (tons/year) Total Herd Size 32, ,145,000 87,429 Hooley Digester 5,000 36,425,000 13,659 Proposed digesters (est) 4,000 29,140,000 10,927 Remaining Potential 23, ,850,000 62,842 7

9 AD Biogas Yield For Various Feedstock Feedstock Type Animal Fat Waste Wheat (Whole Grain) Bakery Waste Fats - Grease Separator Sugar Residual Fats Grease Blood Floated Waste (DAF) Corn Silage Animal Carcass Triticale Food Waste (Left Over Food) Rye Straw Corn Silage Switchgrass Green Clippings (Garden) Waste Oats Municipal Wastewater Sludge Brewers' Grain (Waste) Potato Peelings Paunch Poultry - Chicken Manure Distiller Grain Wastewater Whey Fruit Waste Brewery Yeast Solution Swine Manure Dairy Manure 23,308 22,319 21,189 19,246 18,540 18,540 16,774 15,009 15,009 13,437 12,431 10,330 10,047 8,087 7,416 6,357 6,092 5,898 4,591 4,414 4,061 3,002 2,913 2,260 2,119 1,942 1,642 1,271 1,006 28, ,000 10,000 15,000 20,000 25,000 30,000 35,000 Biogas yield, cubic feet/wet ton 8

10 Alternative Feedstock Distribution -! Locations -! Haul Distances 9

11 Alternative Feedstocks Selected!!Meat Processing: 331 tons/yr! Processors pay (~$0.10/lb) for removal; opportunity for no-cost or tipping fee!!fog (Fats, Oils, and Greases)! Tipping fee and better value to customers (local service)!!brewery Wastewater! Significant shipping cost currently! Potential for new brewery at POTB 10

12 Estimate of Carcass & Manure Methane Production Carcass Methane Production Potential Based on Gross Energy vs. Dairy Manure:!! Average Holstein Carcass 1,970 kcal/kg LW = 496 Btu/kg LW = 0.52 ft 3 CH 4 /kg VS = 2.53 ft 3 CH 4 /lb VS!! Dairy Manure 3 to 4 ft 3 CH 4 /lb VS added 11

13 Estimate of Methane Yield and AD Management Estimate of Theoretical Methane Yield from Dairy Cattle Mortalities (Hejnfelt & Angelidaki, 2009) m 3 per kg VS (10.5 ft 3 per lb VS) or ~3,000 ft 3 per 1,400 lb cow Hejnfelt & Angelidaki (2009) suggested a high dilution rate (~95%) to avoid the accumulation of long-chained fatty acids inhibiting methanogenesis Martin, et al, AgStar (2012) 12

14 Bovine Spongiform Encephalopathy (BSE)!! U.S. ban on bovine derived meat & bone meal in cattle rations in May 1997!! First known case in US identified in 2003!! Through Feb 2011, only 22 cases identified in North America (3 in U.S. & 19 in Canada)!! APHIS s estimate of the prevalence of BSE in live cattle in the U.S. is only 1 in 1,000,000!! Removal of brain and spinal column tissue is an option Martin, et al, EPA AgStar (2012)

15 Johne s Disease!! Causative agent is Mycobacterium avium paratuberculosis.!! Route of transmission is fecal-oral!! Prevalent in U.S. dairy cattle!! Martin et al. (2003) reported a 99% reduction in Mycobacterium avium paratuberculosis during mesophilic anaerobic digestion Martin, et al, EPA AgStar (2012) 14

16 Manure + Mortality AD CHP or CNG Biogas CHP or CNG Local Dairy Farms Co- Substrates Mortalities 1,739 WT/yr Manure 81,957 WT/yr Maceration Preprocessing & Blending (Liquifaction) (Pulping) (Grit Removal) Influent Storage (5 day storage) Anaerobic Digester Mesophilic 1.2 M gallon 20 day retention time (Fats, Oils, & Grease) 182 WT/Yr Course Fiber Storage Composting Off Site Fiber Sale Source Separation Separated Liquid Storage (Lagoon or tank) Farm Irrigation On - Farm

17 Three Scenarios Evaluated Table 17: Scenarios Evaluated for the Tillamook County Bioenergy Project Feedstock Scenario 1 Scenario 2 Scenario 3 Mortalities 1,739 WT/yr 1,739 WT/yr 1,739 WT/yr Manure 81,957 WT/yr (3,000 cows) 163,913 WT/yr (6,000 cows) 163,913 WT/yr (6,000 cows) Meat Proc. Wastes 331 WT/yr 331 WT/yr 331 WT/yr Fats, oil, and grease 182 WT/yr 182 WT/yr 182 WT/yr Number of tank digesters 1 2 (in parallel) 2 (in parallel) Biogas Utilization Scenarios CHP CHP CNG 16

18 Combined Heat and Power Process Flow Diagram (as needed) Heat to digester Heat to adjacent user 17

19 Compressed Natural Gas Process Flow Diagram CNG Fueling Station CO 2 removal CNG Fuel Storage H 2 S Polishing skid Pressure Swing Adsorption (PSA) skid Compression skid (as needed) Thermal Oxidizer Low BTU tail gas CNG Fuel Storage Heat to digester Heat to adjacent user CNG Fueling Station 18

20 CNG Production Scenario 3 Includes incentives to support local CNG use:!! Vehicle conversion costs included! $30K per vehicle for 30 vehicles.!! CNG fuel at a 25% discount to current diesel fuel costs on an equivalent BTU basis (early 2011)!! Estimated CNG > 700,000 diesel gal equivalent (dge) annually!! More analysis is needed to determine CNG usage and conversion Renewable Identification Number (RIN)!! 77,000 BTUs is equal to 1 gallon equivalent or 1 RIN Conservative estimate of $0.50 per RIN 19

21 Financial Summary Table 26: Financial Modeling Projections Scenario 1 Scenario 2 Scenario 3 3,000-Head 6,000-Head 6,000-Head Performance Metric AD + CHP AD + CHP AD + CNG Total Construction Cost $7,405,278 $12,467,588 $14,069,488 Construction Cost / wet ton processed $87.32 $77.20 $88.77 Annual Total Revenues $872,977 $1,700,449 $2,629,421 Annual O&M Cost $408,226 $560,204 $692,640 Annual Capital Repayment $652,457 $1,111,074 $1,300,525 Annual Net Profit (Loss) ($187,706) $29,171 $636, year Net Present Value (NPV) ($39,843,295) ($25,349,500) $37,529,585 Annualized NPV ($3,197,129) ($2,034,109) $3,011, year Internal Return on Investment (IRR) 5% 9% 13% Simple Payback Year 15 Year 12 Year 8 20

22 Financial Summary Annual Net Present Value 21

23 Understanding & Mitigating Risks 1.! Feedstock Supply! Securing a long term contract 2.! Generation of Saleable Products! Securing long term contract and a reasonable price 3.! Project Location and Interconnects 4.! Permitting 5.! Mortality 6.! Risk of No-Action! Future landfill disposal challenges 22

24 Conclusions 1.! Dairy cattle mortalities can be successfully addressed & managed using AD:!! Digestion using a combination of mortality and manure is required The marketability of the digester effluent has limitations 2.! Significant potential methane production 3.! Two viable biogas utilization scenarios (CHP and CNG) made sense for this project 4.! More work is needed to refine this approach 23

25 Acknowledgement Bioenergy Project Advisory Workgroup:!! Tillamook County Economic Development Council (TCEDC)!! Port of Tillamook Bay (POTB)!! Tillamook County Creamery Association (TCCA)!! Tillamook People s Utility District (PUD) Others:!! ODOE!! Energy Trust of Oregon!! Community Members!! Jason Smith, Floriano Ferreira 24

26 TITLE PAGE Insert Thank Tt World You Graphic! Keith Henn, Jeff Coombe, John Martin Jr., and Jennifer Purcell 25