Authors: Daniel Ciolkosz, Michael, Hile, Bill Lazarus, and Gary Musgrave, Penn State Extension
Overview:
This business opportunity plan describes the steps involved in establishing an on-farm anaerobic digester that produces biogas from a combination of manure and perennial grass (in this case, switchgrass), and sells it as Renewable Natural Gas (RNG) for injection into an adjacent pipeline. The overall configuration of the facility is described, sizes and capacities of major equipment are laid out, and estimated costs along with a project rollout schedule. The scenario envisioned here involves an existing dairy farm with 800 cows, where 500 acres of switchgrass feedstock is added from nearby fields.
The finished project is projected to consist of the following systems: 1) feedstock management/handling, 2) digestion, 3) digestate storage and handling, 4) biogas treatment and utilization. The project is estimated to require 2 years for planning and installation, including establishment of the perennial grass crop. Total startup cost is estimated to be $4.1 Million, and has a Net Present Value of $534,000 Dollars. The system creates one part time job, and injects an estimated $7.0 Million into the local economy over the digester’s 20 year nominal lifespan.
For a full copy of the report, please contact the authors