World-Scale Manure-to-Fuel Facility Has Successful Start-up

December 05, 2019

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(Iogen) Threemile Canyon Farms’ Oregon facility is steadily producing renewable natural gas -- Iogen Corporation would like to congratulate Threemile Canyon Farms and Equilibrium for the successful opening and operation of Oregon's only dairy manure renewable natural gas production facility - one of the largest in the US.

The facility, located near Boardman Oregon, uses the manure from 33,000 dairy cows to feed an anaerobic digester system followed by a biogas clean-up system that injects renewable natural gas (“RNG”) into the natural gas grid. The RNG is used as a transportation fuel to eliminate about 130,000 tonnes of carbon dioxide emissions per year, which equates to removing 28,000 cars from the road. The $55 million project began injecting RNG into the grid in July of 2019 and the RNG is currently being used as transportation fuel in California.

Iogen provided the project with a structured RNG offtake agreement that helped maximize project returns within risk boundaries. Under a 10-year agreement, Iogen is providing an investment-grade floor price for RNG with market upside sharing, and is managing all fuel compliance activities, including generating and monetizing D3 RINs under the federal Renewable Fuel Standard and LCFS Credits under the California Low Carbon Fuel Standard program.

“When our farm recently converted our methane digester to produce RNG, Iogen’s industry experience and long-term business relationships were pivotal to the project’s success. This project was significant because it further demonstrates our commitment to environmental stewardship and takes our regenerative farming philosophy to the next level. Iogen’s technical knowledge and expertise added considerable value to the project,” said Marty Myers, General Manager for Threemile Canyon Farms.

Converting waste manure to RNG is a winning combination for dairy farms and the environment. The use of an anaerobic digester not only reduces farms' methane emissions by converting manure into a low carbon emissions sustainable vehicle fuel, but also creates clean and comfortable bedding for the dairy cows and produces a natural fertilizer used to enrich the soil for organic and feed crops.

“Equilibrium’s Water, Waste, and Energy investment team is pleased to be working with Threemile Canyon Farms and Iogen on this Project,” said Raimund Grube, Principal. “This project is one of the largest of its kind in the United States, serving a dairy that is committed to sustainable and best in class operations. Both Iogen and Threemile Canyon Farms are leaders in their industry with the deep experience and proven capabilities that we seek in all of our partners,” added Raimund Grube.

About Iogen Corporation
Iogen is a pioneer in the conversion of waste and residues into transportation fuel. With more than 35 years’ experience, 300+ patents, $500+ million invested, Iogen works with biofuel producers, investors, and obligated parties to realize higher profits and manage risk by implementing innovative supply chains, technology, and market solutions. Iogen offers RNG producers investment-grade offtake agreements and uses the RNG in novel supply chains that help obligated parties reduce compliance costs. Iogen also develops and invests in low carbon intensity fuel projects that use biogas or cellulosic residues as a feedstock. READ MORE

Iogen: Dairy manure RNG project begins operations in Oregon (Biomass Magazine)

First dairy manure to RNG facility in Oregon, US celebrates opening (Bioenergy Insight)

Money from Manure (Capital Press)

Vermont Gas sees growing demand and potential for renewable natural gas (Energy News Network)

Could Renewable Natural Gas Be the Next Big Thing in Green Energy? (Yale Environment 360)

Manure is big business at Oregon's largest dairy with conversion to natural gas (Statesman Journal)

New biogas facility to be built in Québec (Bioenergy Insight)

Mega Dairy Integrates RNG Production (BioCycle Magazine)

Excerpt from Capital Press: ‘This is modern farming’ The digester complex at Threemile Canyon overlooks rows of free-stall barns where cows wait to be milked at the 93,000-acre farm west of Boardman.

Rick Morck, a consultant and engineer who helped design the digester, stood in the control room where workers monitor the production of biogas 24/7. Every step of the process is automated.

“This whole operation, nothing passes through that isn’t used, reused or optimized,” Morck said.

It starts with flushing manure from the barns, which is done four times a day. The sludge collects in a large concrete lagoon, and is then pumped through a series of rotating screens to remove most solids. From there, it goes into settling tanks known as clarifiers, and finally to 30-foot-deep stilling basins where anaerobic digestion occurs.

The basins look like two large half-inflated air mattresses, capable of holding a combined 15 million gallons of manure. A thick vinyl cover traps the harmful gas emissions.

During the digestion process, bacteria and microorganisms break down the manure at 100 degrees over 23 days, giving off mostly methane and carbon dioxide. It is currently used to fire three generators capable of producing up to 4.8 megawatts of electricity — enough power for a city the size of nearby Boardman, population 3,329.

The remaining dried solids are also recycled to make animal bedding, which has the texture and feel of sawdust. It can also be used as a nutrient-rich soil amendment.

Leftover liquid is reused as clean water to flush out the barns, starting the process anew.

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Patrick Serfass, executive director of the American Biogas Council, said there is massive potential for industry growth.

There are 2,200 biogas systems in operation across the country, including 250 farm-based digesters, 1,300 systems at wastewater treatment plants, 80 stand-alone food scrap digesters and 600 at landfills, Serfass said.

The American Biogas Council, EPA and USDA predict there is enough capacity to add 14,000 biogas projects. That includes 8,000 farm digesters.

“We have so much organic material to deal with,” Serfass said, pointing to 31 billion gallons of wastewater every day and manure from 8 billion cows, chickens, turkeys and hogs.

“None of those numbers are going down,” he said. “We have to develop the infrastructure to handle all that material.”

Historically, digesters were installed primarily to reduce odor, Serfass said, but the benefits they provide are multi-faceted.

Digesters kill 99% of the pathogens in manure and wastewater while capturing methane, a potent greenhouse gas. Not only can the gas be recycled as renewable fuel, but the digested fiber is useful as animal bedding and fertilizer, he said.

He pointed to Magic Dirt, a company in Idaho that makes organic potting soil from digested fiber. According to the company, 10 cubic feet of Magic Dirt sequesters approximately a third-ton of greenhouse gas, and the product is capable of holding three times its dry weight in moisture.

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Environmental groups are wary of creating more biogas systems, which they argue are a “false solution” to climate change and a ruse to build more large farms.

Food & Water Watch, an organization based in Washington, D.C., issued a five-page report earlier this year against producing biogas from farm waste, calling it “dirty energy.”

Burning biogas still releases carbon dioxide, the report states, along with smog-forming pollutants such as nitrogen oxide, ammonia and hydrogen sulfide, potentially offsetting other greenhouse gas reductions.

The report also raises concerns about accidental leaks from manure digesters, as happened in July at the Port of Tillamook Bay along the Oregon Coast. A digester at the port spilled 300,000 gallons of liquid waste, some of which entered a nearby storm water pipe. All but a small amount of digestate was recovered.

Oregon regulators tested for bacteria in Tillamook Bay, and found there was no public health risk.

Tarah Heinzen, senior attorney at Food & Water Watch, said she worries digesters producing RNG will increase the country’s reliance on “unsustainable factory farms” that are significant polluters.

“Digesters are really only technologically feasible, much less economical, for the very largest factory farms,” Heinzen said. “It’s the confinement, and the liquid waste storage, that leads to the large amount of greenhouse gases being emitted from this industry in the first place.”

Serfass pushed back against the claims, saying digesters can make a farm of any size more environmentally friendly.

Frear, who also serves on the American Biogas Council’s Board of Directors, said that while no one technology can solve every environmental problem, he believes digesters are sustainable in the long term.

“I personally believe climate change is a real and imminent threat,” Frear said. “Anaerobic digestion or production of renewable natural gas checks a lot of boxes.”

Myers, at Threemile Canyon Farms, said RNG production does offer the dairy some savings and revenue, but not enough to encourage them to expand their cow herd, even with lower milk prices. He also expects the value of tax credits will depreciate over time as more projects come online.

“It’s just an additional adaptation by this farm to increase our best management practices and reduce our emissions,” he said. “It is really being driven by people trying to reduce the carbon footprint of their operations. And they’re being encouraged to do that.” READ MORE

Excerpt from BioCycle Magazine: Threemile Canyon Farms received the Innovation Center for U.S. Dairy’s 2020 Outstanding Dairy Farm Sustainability Award, judged by an independent panel of dairy and conservation experts who consider innovation, scalability and replicability when choosing winners. The farm uses the digested solids for cow bedding, and the liquid effluent to irrigate its crops. “We grow about 300,000 tons of potatoes each year, which are processed at a local manufacturing plant,” notes the farm’s website. “Any processing waste, such as ‘peels and culls’, is returned to the farm and recycled as feed for our dairy cows.” READ MORE