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/
Landfill
Municipal household waste
Organic industrial waste
Manure Residues
Wa ste wa ter
Sewage sludge
bss criae r i xo TaL
Biogas process
Clean bio fertilizer
Biogas
e at ir v rs P ca
CHP
re Fla
Heating
Contaminated bio fertilizer
ct Dis tri ng heati
Ag ma ricu ch ltur ine al ry I nd u pro stria ces l ses
Energy crops
Biomasses
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s Bu se
The
s ga biod ted te ed ) ea ea ss G) -tr -trpreass (CN Pre PrCeomiog a ( bal g tur na
ids Gas gr
l ra tu u l cts ri c d u Ag pro
Waste
What is Biogas? – Inputs Inputs
Biological Ac0vity
Outputs
Manure Substrates • Corn Silage • Wheat • Grass (hay) • Food Waste • Others
Anaerobic Digester
• Microbes • Heat • No oxygen
Digested Solids
Biogas (50‐75% Methane)
What is Biogas? – Outputs and End Uses Biological Ac0vity
Outputs
End Uses
Heat Electricity Combustion
Anaerobic Digester
Biogas Solids
Fer0lizer Animal Bedding
Direct Use Upgrade to Pipeline Quality Transportation Fuel
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
Digester Manufacturers
Environmental Groups
Wisconsin Biogas Strategic Plan
Agriculture
Energy Producers
Energy Distributors
County & State Government
Statewide Biogas Policy
Community Benefits
Market development of electricity from Biogas plants
GACC - 2010
Source: German BioEnergy Association (BBE)
12
Waste Management – Livestock Waste 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
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
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
Result: 1) Increase rural property values by $100 million? 2) Current: 2% reduc0on in statewide agricultural GHG emissions Poten0al: 15 ‐ 50% reduc0on?
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. 2. 3. 4.
Integrative business models Appropriate scale and design Innovative inputs and end uses Social context and values are important
Wisconsin’s needs, assets, challenges, and socio-political environment are unique. What are Wisconsin’s motivations for biogas?
Filling the Gap:
The Full Benefits of 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
Biogas Substrate Research Source: Cologne University of Applied Sciences, Dr Michael Bongards
Why is Germany the world leader in biogas production?
SOCIAL DRIVER
TECHNOLOGY
POLICY
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
Gary Radloff, WBI: 608-890-3449 gradloff@wbi.wisc.edu www.wbi.wisc.edu
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 & Policy Context for Germany’s Biogas Success 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
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?