Wisconsin Biogas Strategic Plan Development
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The German Biogas Success Story & the Wisconsin Strategic Plan Process October 6, 2011 Gary Radloff
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Gary Radloff's 2011 Wisconsin Bioenergy Summit presentation.
Transcript of Wisconsin Biogas Strategic Plan Development
The German Biogas Success Story & the Wisconsin Strategic Plan Process
October 6, 2011
Gary Radloff
Biogas Awareness Month • WBI Summit at Monona Terrace (Madison) on
October 6th
• LaCrosse National Alternative Vehicle Day Event on October 9th Honda Motorwerks
• German – American Chamber of Commerce Event Monona Terrace in Madison on October 25th
• BioCycle Conference in Madison on October 31st-Nov.2nd
Biogas Awareness Month
• For more information: • BioCycle: • http://www.jgpress.com/biocycleenergy/
biogas_awareness_month.html
• American Biogas Council (ABC) • http://www.americanbiogascouncil.org/
The Biogas process
Waste
Was
te w
ater
Pre-treated
biogas
Biogas
Diges
tate
Biomasses
Agricultural
products
CHP
Hea
ting
Indu
stria
l pr
oces
ses
Agricultu
ral
mach
inery
Private
cars
Lorries
Buses
Gas grids
Sewage sludge
Land!ll
Organic industrial
waste
Municipal household
waste Manure
Residues
Energy crops
Clean bio fertilizer
Contaminated bio fertilizer
FlareDistrict
heating
Waste
Was
te w
ater
Pre-treated biogas
(Compressed
natural gas (CNG)) Biogas
Diges
tate
Biomasses
Agricultural
products
CHP
Hea
ting
Indu
stria
l pr
oces
ses
Agricultu
ral
mach
inery
Private
cars
Taxi cabs
Buses
Gas grids
Sewage sludge
Land!ll
Organic industrial
waste
Municipal household
waste Manure
Residues
Energy crops
Clean bio fertilizer
Contaminated bio fertilizer
FlareDistrict
heating
The Biogas process
What is Biogas? – Inputs
Biological Ac0vity Inputs Outputs
Manure
Anaerobic Digester
Biogas (50‐75% Methane)
Substrates • Corn Silage
• Wheat • Grass (hay) • Food Waste
• Others
• Microbes • Heat • No oxygen
Digested Solids
What is Biogas? – Outputs and End Uses
Biological Ac0vity Outputs End Uses
Solids
Biogas
Fer0lizer Animal Bedding
Upgrade to Pipeline Quality
Combustion
Transportation Fuel
Direct Use
Heat
Electricity
Anaerobic Digester
Germany – The World Leader in Biogas
Sources: Beyond Biofuels: Renewable Energy Opportunities for US Farmers, Heinrich Böll Stiftung (2010) Biogas: Rethinking the Midwest’s Potential, Peter Taglia (2010)
Three Lessons from Germany
1. Business Models – Industry pioneers; co-ownership; partnering with
universities, nearby communities, energy utilities 2. System Scale and Design
– Large vs. small systems; unique system designs
3. Innovative Inputs and End Uses – Substrates; additives; uses of heat; pipeline gas
Germany Experience
• Renewables are now more than 15% of genera0on. (53% of global PV capacity)
• More than 80,000 employed in wind industry • 50,000 employed in PV industry • More than 90,000 in biomass industry • More than 10,000 in biogas industry • More than 250,000 employed in renewables sector
Opera0onal On‐Farm Anaerobic Diges0on Projects
Source: U.S. EPA AgStar Program, April 2010. h^p://www.epa.gov/agstar/accomplish.html#ky
Wisconsin Biogas Stakeholder Communities
Wisconsin Biogas Strategic Plan
Environmental GroupsDigester
Manufacturers
Energy Distributors
Energy Producers
AgricultureStatewide
Biogas Policy
Community Bene!ts
County & StateGovernment
Market development of electricity from Biogas plants
GACC - 2010 12 Source: German BioEnergy Association (BBE)
Problem: 1) Dairy operators spend $48.5 million annually on manure management 2) Run‐off of nutrients and pathogens degrades water quality and poses health risks
Waste Management – Livestock Waste
Anaerobic Digesters: 1) Reduce volume of manure through evapora0ve loss 2) Convert nutrients to forms easily absorbed by plants 3) Reduce pathogen loads
Result: State Savings 1) Reduce strain on aging municipal water facili0es 2) Cleaner water: fewer beach‐day advisories
‐ State collects $66 million per year from state park revenues
3) Reduce healthcare costs due to food‐ and water‐borne illness
Livestock Manure Problem: 1) offensive odors reduce local property values and quality of life
2) Manure emits powerful greenhouse gases (CH4 and N2O), and agricultural fossil fuel use is significant
Result: 1) Increase rural property values by $100 million? 2) Current: 2% reduc0on in statewide agricultural GHG emissions
Poten0al: 15 ‐ 50% reduc0on?
Anaerobic Digesters: 1) Reduce ‘smell‐free’ distances by factor of 4 2) Reduce GHG emissions from:
‐ Decomposi0on of animal waste ‐ Applica0on of synthe0c fer0lizers ‐ Replacement of fossil fuel combus0on with biogas
Economic Opportuni0es – Energy Independence
Problem: 1) Wisconsin pays $18.6 billion out‐of‐state for energy each yr 2) Dairy industry is struggling
• 25% plan to discon0nue opera0on in 5 years • 40% struggling to meet basic financial needs • 90% have decreased number of paid workers
Anaerobic Digesters: 1) Produce biogas, a homegrown and versa0le energy source 2) Offer new sources of on‐farm income
• Bedding, fer0lizer, carbon markets, phosphorus trading credits
3) S0mulate a new biogas industry, help prevent job loss
Result: 1) Off‐set $17 million/yr of coal and natural gas fossil fuels • Poten0al: $185 million of natural gas?
2) Co‐products sales for ‘~100 head’ farm: $34,000 per year 3) German biogas industry employed 11,000 in 2009
Wisconsin’s Biogas Strategic Plan
Wisconsin Bioenergy Ini0a0ve effort to iden0fy short‐term and long‐term strategies to capture the biogas opportunity
• Graduate student and stakeholder tour of Germany’s biogas success
• Stakeholder forum at UW Madison’s 2010 Bioenergy Summit
• 2011 Strategic Plan released on 3/28/2011 www.wbi.wisc.edu/policy‐analysis
• Educa0on and outreach con0nue in 2011
Money for Growth or Expenses? • In the United States, some 30 percent of all food is taken to the landfill. This is a waste
of a great feedstock to power anaerobic digesters and is a waste of landfill space.
• Farmers in Wisconsin spend over $48.5 million a year on nutrient management.
• Farmer spending on fertilizers and gas could be reduced?
• Food Processing: This sector can save over $500,000 a year on municipal wastewater treatment fees.
• Food Processing can save money now spend on landfill tipping fees.
• $18 billion leaving the state to purchase energy • Or $185 million of homegrown renewable natural gas? (Note: All manure converted)
A Few Key Findings • Substantial Economic & Environmental
Benefits to the State of Wisconsin • Size of Farm Should Not Be a Barrier • Long-Term Cash Flow is Critical Compared to
Capital Investment • Current Power Purchase Agreements and Tax
Credits Calls for Greater Collaboration Across the Biogas Energy Value Chain (p. 19-24)
The German Biogas Success
Lessons learned: 1. Integrative business models 2. Appropriate scale and design 3. Innovative inputs and end uses 4. Social context and values are important
Wisconsin’s needs, assets, challenges, and socio-political environment are unique. What are Wisconsin’s motivations for biogas?
• Wisconsin‐specific analysis • Describe the benefits of biogas • Quan0fy in economic terms • Focus on benefits for:
1. Average size dairy (~100 head) 2. CAFOs (~1000 head) 3. Food processing plants
Filling the Gap: The Full Benefits of Biogas
Biogas Substrate Research Source: Cologne University of Applied Sciences, Dr Michael Bongards
SOCIAL DRIVER
TECHNOLOGY POLICY
Why is Germany the world leader in biogas production?
UW‐Madison CHANGE Team
Authors of the student report • Steve Plachinski • Aleia McCord • Jeffrey Starke • Mirna Santana • Sarah Stefanos
Acknowledgements
• German hosts – Robert Höre – Jurgen Fischer – Bernd Roth – Rolf Weigel – Petra Hess – Klaus Hoppe – Paul Thürwächter – (Biogasanlage Binder – Herbert Binder operator)
• Trip Participants -- Amanda Bilek (GPI) – Ted Petith
• The CHANGE program – Rob Beattie – Carmela Diosana – Jonathan Patz – Gregg Mitman, Nelson
Institute Interim Director
Integrative Business Model
How Can Wisconsin Do This?
– Consider a variety of ownership structures (utilities, companies, etc.)
– Work with researchers (universities, etc.) – Identify possible partnerships with local community
or businesses – Synergies with other
bioenergy resources (ex. ethanol and biogas)
Source: National Agricultural Statistics Service, USDA (2010)
System Scale and Design
How Can Wisconsin Do This?
– Small-scale biogas systems are possible
– Consider a variety of system designs
– Explore new technologies that can lower costs and increase system versatility
Social Context / Motivations 1. Progressive approach to waste 2. Climate Change 3. Energy Security
German Policies 1. Feed-in-Tariff is instrumental 2. Result of a bottom-up process
Social & Policy Context for Germany’s Biogas Success
Different social context and policy environment in Wisconsin
• How is the motivation for biogas different in Wisconsin? • What might Wisconsin’s social and policy environment need to be to grow its biogas industry?
