Biogas! The Big Cellulosic Fuel Breakthrough?

by Jim Lane (Biofuels Digest) Already, biogas as a renewable fuel is accounting for 90% of all cellulosic RIN production under the Renewable Fuel Standard. Food and paper manufacturers, ethanol & biodiesel plants, cities, landfill operators, and animal feeding operations stand to benefit. How does it work? We spoke with EcoEngineers CEO, Shashi Menon.

It’s the “quiet monster” that’s turning industrial, municipal and farm waste into valuable added income — ridding us of unwanted wastes, and reducing dependence on foreign fossil fuels.

“We always talk about climate change, but what do we do about it?” muses EcoEngineers CEO Shashi Menon. “It doesn’t matter if you believe in the science or not, there’s a great opportunity here.”

“There’s been so much attention on liquid fuels that the potential that biogas fueling has to make an impact on this space hasn’t quite sunk in. The raw material to convert is huge and untapped, and ethanol and biodiesel, from what I observe, only have so much upside on starch and vegetable oils before the returns soften. But the opportunity to harness fuels from industrial, agri and muni waste — we haven’t connected it yet, and its powerful.”

“There were lot of untapped opportunities upstream, so many undeveloped area. With the amount of manure and industrial and ag waste, the American Biogas Council has said 12000 digesters could be installed. Hundreds of asset owners are simply flaring gas, or using it in inefficient power gen or boiler operations.

“A lot of the work is with the asset owners and also the community. We show how we can take advantage of waste residue to bring higher value, create jobs and a greater tax base and GDP growth. ... "

"... Often, they are already using digesters, and they obviously are experts in handling their waste streams using their existing process. But a lot of people don’t know about the RFS and the biogas rule – so, people don’t know about the extent of the opportunity.

“But people are skeptical, we’re not the first to come to a farm community talking about blue sky opportunity. If you don't have at least 12-24 percent returns, farmers don't want the bother. If you promise more than that, they don't believe you. They’re intelligent people who have developed strong ag industries in their townships. But business moves at the speed of trust, and you have to build it over time.”

“I am not sure if they are surprised at the values. What they welcome is that there is an investment opportunity, something they can stop viewing as a cost center, and start thinking of the municipal facility as a biorefinery. Municipalities always need more cash.”

“We’re technology neutral – we solicit technology bids if needed, usually off the shelf – nothing radically new. There are plenty of mature vendors with good products. Occasionally there is a more creative element such as water treatment, or nutrient removal.

“The driving force to do this is RINs, we are primarily looking at it to drive towards the quota on RFS. But there are other reasons for asset owners. For example, to mitigate odor for feed-yard, which affects quality of life, and when people want to do more animal processing, in a new location or expanding an existing capacity, there is a certain amount on NIMBYism around odor, and this is a good way to address this.

“Plus, AD is also a way to control pathogens, for example, before land-applying manure as fertilizer. Also, nutrient management, AD can have a positive impact on soil quality and nutrient management. We see a whole lot of drivers that all promote the use.

“The whole RFS program was a match to light off this entire garland of fireworks. All these other things are popping up — odor, nutrient, pathogen, more sustainable way for agriculture — all of these positive outcomes are unexpected benefits of the push for renewable fuels.” READ MORE