1. Re-Defining Confined Livestock Farming: Farm-based Renewable Energy Systems Bruce T. Bowman Expert Committee on Manure Management Canadian Agri-Food Research Council Presented to: Rural Ontario Municipal Association (ROMA) Toronto, Ontario June 2, 2005

2. Farm Bio-Energy A.D. Manure Processing Rural Society Benefits Farm Economic Benefits Presentation Objective To demonstrate the central role of manure processing & farm bio-energy systems for revitalizing rural economies - GHGs - Odours - Pathogens - Deadstock - Conservation - Recycling - Nutrient availability Environmental Remediation Nutrient Issues Biogas

3. Water volumes Carbon = Energy $$$ Three priority issues to manage: Nutrients Odours Pathogens Priority Issues for Manure Management............................. but also …….

4. Food Products Human Consumption Cereal Production LARGE SCALE ONE-WAY NUTRIENT FLOWS Recycling Nutrients & Organic Matter Annual Mineral Fertilizer Additions Nutrients & O.M. NOT recycled Regional nutrient excesses Local Farm Manure Odour Pathogens Wastes Landfills Nutrient inputs

5. Conditions for exporting manure nutrients: 1. Odour-free 2. Pathogen-free 3. Dewatered (dried) for transportation Manure processing (anaerobic digestion) can solve these issues. Exporting Surplus Livestock Nutrients The need to export surplus nutrients will increase with further intensification of livestock operations.

6. Mimicking fermentation in a ruminant stomach (no oxygen). (most digesters are mesophylic ~ 37°C – body temp.) Closed system – no nutrient or gaseous losses (e.g. N) - closer N:P ratio than with raw manure – better for crops About 50% of carbon biogas (CH 4 + CO 2, 65:35, tr. H 2 S); - Biogas used to generate electricity by co-gen units - (nutrients in more plant available, predictable form) (~ 25% C blown off conventional slurries by bacterial decomp.) Anaerobic Digestion A Few Facts

7. Certain antibiotics can STOP digestion processes Processing Time: 20 – 35 days @ 37°C Odour Reduction: ~ 90% or more Pathogens Reduced to:~ 1/1000 – 1/10,000 (37°C) - Eliminate pathogens by pasteurizing (1hr @ 70°C ) Anaerobic Digestion …….. More Facts

8. Environmental Reduce odours & pathogens - flexibility to export surplus nutrients Conserve nutrients (N) - reduce mineral fertilizer use Reduce gaseous emissions - GHGs, ammonia, hydrogen sulfide Societal Reduce siting / zoning problems Regain public support Opportunity for new rural partnerships Economic Renewable energy generation - energy independence Export surplus Livestock nutrients Emission reduction trading credits Tipping fees – food-grade wastes - 20 – 25% energy boost Why Digest Manure? Potential Benefits

9. Yield / Productivity Environmental Issues Societal Concerns Balancing Issues in a Sustainable Farming Operation 1. Yield/Productivity (economics) 2. Environmental Issues Both are science-based 3. Societal Concerns Perception-based, emotional Can over-ride other 2 factors. Opposition difficult to reverse once initiated Pre-1965 Since 1970s 2-D Since 1990s 3-D

10. High Tech Manure Processing Anaerobic Digestion Low Tech

11. 1. Investment, Incentive & Payback Issues 2. Managing Regulatory Issues 3. Developing Reliability, Trust & Expertise 4. Managing Complexity Barriers to Adoption of Anaerobic Digestion Technology

12. 1. Investment, Incentive & Payback Issues $300K - >$5M, depending on scale of operation – Plant Life = 20 – 30 yr before reconditioning – Payback = <7 yr (electricity, solids sales, emission credits) – Breakeven – 110 cow dairy; 1200 hog; 25,000 poultry (Considerably less in Europe because of greener policies) Policy Issues – Need consistent policies & incentives across 3 levels of government - Environ. Loan Guarantees (manage risk) - Tax Incentives for green electricity Feasibility Assessment - How does the farmer put a realistic value on odour & pathogen-free manure? – changes from societal opposition to opportunities for new partnerships. Overcoming Barriers to Adoption of Anaerobic Digestion Technology

13. Sale of Processed Solids/ Org. Fertilizers – excess nutrients exported – promotes nutrient re-use Emission Trading System currently developing - sell credits for reducing emissions - current value of e-CO2 in Europe ~ $10/tonne Tipping Fees for Receiving Food-Grade Wastes – boost biogas output (20 – 30%) increases revenue 1. Establishing Revenue Streams Electricity Purchase Agreements – Net Metering, Dual Metering – Peak Demand Generation – Nova Scotia, Ontario, Saskatchewan - leading provinces – may be sufficient to be energy independent; delivered power ~ 2 x generating costs (ON = 12 - 15¢/kwh) Overcoming Barriers to Adoption of Anaerobic Digestion Technology

14. 2. Managing Regulatory Issues Electrical generation – interconnects / net metering Power Utilities starting to change policies for small renewable energy generators (up to 500 kw) Off-farm biomass inputs (boost biogas production) can result in C.of A.s – regulations being changed to allow <20% food-grade wastes Managing emissions / discharges Biogas flare, fugitive GHGs, liquid discharges Fertilizer/amendment products - quality assurance, certification; labeling requirements Overcoming Barriers to Adoption of Anaerobic Digestion Technology

15. 3. Developing Reliability, Trust & Expertise Small number of installed digesters in Canada (12 – 18 in advanced design or already built) Limited knowledgeable Canadian design/build firms - limited track record Demonstration Program – AAFC/NRCAN - 3 yr - Energy Co-generation from Agricultural/Municipal Wastes (ECoAMu) 4 digesters (AB – Beef; SK – Hogs; ON – Beef; QC - Hogs) ECoAMu Program On ManureNet http://res2.agr.gc.ca/initiatives/manurenet/en/hems/ecoamu_main.html Overcoming Barriers to Adoption of Anaerobic Digestion Technology

16. 4. Managing Complexity A.D. adds yet another new technology to be managed by farmer – Time; Skill-sets Service agreements Co-Generation – Power Utility – electricity export Remote monitoring & process control in real- time – practical technology now available Overcoming Barriers to Adoption of Anaerobic Digestion Technology

17. Resource Centre Electricity Clean Water HeatCO 2 Co-Located Industries Greenhouses (Veg., Flowers) Fish Farm Slaughterhouse Bio-ethanol plant A Centralized Co-op Rural Energy System Potential Components Liquid Digestate Dewatered Digestate Food Grade Organics Local Municipal Organics Rendering, Deadstock Organic Fertilizers water Co-gen Wet Distillers Grain - 15% savings

18. Challenges Facing Confined Livestock Operations Increasing price volatility (The China factor) Less reliable supplies (Declining fossil reserves) Will also increase N fertilizer costs Continuing vulnerability of farm incomes Increasing costs of compliance Increasing regulations – nutrients, pathogens Municipal waste issues (biosolids) Rendering / deadstock – limited uses/value GHG emission reductions – Kyoto protocol Increasing livestock intensities – odour Energy Environment / Health Economics

19. Future livestock operations will be structured around bio-energy energy independence using co-generation technologies. Facilitates conservation and recycling of resources (nutrients, carbon = $$$) Income stabilization through diversification (new revenue streams independent from commodity prices!) - Green Electricity - Processed manure solids - Emission Trading Credits - Co-located integrated industries - Tipping fees for food-quality wastes (energy boost) Re-Inventing Confined Livestock Farming

20. Reduces existing environmental issues – Reduced odours, pathogens diminished societal concerns – Flexibility for applying/exporting processed manure products Strengthens rural economy utilizing more local inputs (employment, resource inputs – biomass crops) - Municipality can be a partner (wastes, buy energy) - Farmer co-ops take increased control of rural businesses ADD value to products BEFORE leaving farm gate - Reduced transportation costs for manufacturing (bio-based) Re-Inventing Confined Livestock Farming

21. Electricity Manure solids Emission credits Tipping fees Heat Electricity Clean water CO2 Municipal Organic wastes Co-located industries Local biomass inputs Odours Pathogens Nutrient export & Recycling Reduce herbicide use GHG reductions Deadstock Farm Bio-Energy Centres As Integrators & Facilitators Environmental Solutions Income Stabilization Rural Revitalization Farm Bio-Energy A.D. Processing Energy Independence Independen t of Livestock prices

22. In Summary A.D. manure processing is the key to: Remediating environmental problems (odours, pathogens) Improving community relations Providing flexibility for managing surplus nutrients Generating bio-energy (thermal, electrical) energy independence & rural business opportunities Economics are rapidly improving, but policies, incentives & regulations need to be coordinated across 3 levels of govt to facilitate adoption of this technology. Efforts to increase technical support and assistance are required to foster adoption of the technology.

23. Resource Information on http://res2.agr.gc.ca/initiatives/manurenet/manurenet_en.html 6,100 external web links Several hundred digital technical/research reports Manure Treatment Digester Compendium Nutrient Recovery Ammonia Emissions Nutrient Management Environmental Issues GHG Emissions Odour Management Land Application Storage & Handling Housing / Feedlots Feeding Strategies Codes, Acts, Regulations Health & Safety Links Digital Library Expertise Environmental Archive (>170 digital reports)

25. Micro CHP (Combined Heating and Power) Distributed Power Generation Electricity + Heat generated at each residence Small engine + generator replace furnace & water heater Grid 85 % efficiency

26. Micro CHP (Combined Heating and Power) Distributed Power Generation Centralized Gas- Fired Plant Micro CHP INPUT 100 Waste Energy 57<15 Line Losses 4 - 70 Electricity 3920 Useful Heat Energy 065 Net Useful Energy 36-3985+

27. Micro CHP units run on natural gas or biogas More efficient use of resources (15% vs 60% loss) (39 vs 85 % efficiency) Excess electricity exported to grid (10 kw units - $$) Blackout & Terrorist proof (totally distributed generation) Significant GHG reductions Almost eliminate line losses (electricity used on-site) In Ontario – 2 million homes would produce 10,000 Mw – equivalent to several nuclear power plants No environmental assessments required – minor impacts Several thousand units being tested in Europe & Japan; USA senate holding hearings on technology potential Micro CHP (Combined Heating and Power) Advantages