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METHANE RECOVERY FROM ANIMAL MANURES: THE CURRENT OPPORTUNITIES CASEBOOK derived from the measure of offsets in currently purchased electricity and from the recovery of heat from the engine/generator that was used to warm dairy sanitary wash water. The digester was assumed to have an average production capacity of 81-kW and to have annually produced 504,111 kWh. Purchased electricity costs had a demand charge of about $5.00/kW, with an energy charge of $0.05/kWh. Available waste heat was used as an offset for purchased propane costing $0.75/gal, with 2,800 Btu recovered for every kWh generated. Table 3.9 provides the investment merit statistics for this project. As mentioned earlier, a positive NPV indicates that a project is cost-effective. Evaluation of the NPV data in Table 3.9 reveals that a covered lagoon digester has investment merit when both electricity and recovered heat can be used as creditable offsets in the analysis. But if, for example, the waste heat recovered from the engine/generator were to be used for heating the digester during the winter in cooler climates to balance daily biogas production, the covered lagoon digester would no longer be cost-effective. TABLE 3.9: 1,000 Head California Dairy Farm with Covered Lagoon Digester NPV IRR SPP CCF Full Income $36,075 11.8% 6.2 years $200,987 Electricity Only ($23,476) 6.2% 8.3 years $93,419 3.3.2 300-Head South Dakota Dairy Farm with Plug-Flow Digester The manure was collected for this digester by scraping the apron and feedlane daily. It was assumed that 100% of the manure was collected and placed into the digester after it was diluted with enough water to produce the desired TS concentration. The value of the 300-head South Dakota plug-flow digester was derived, in part, from a change in manure management. It was assumed that the facility formerly used a hauling company to remove the manure from the farm at an annual cost of $2.00/cow. This assumption means that the former expenses associated with manure disposal were converted into revenue for the farm operator. It was also assumed that the digested solids were used as a soil amendment with a value of $2,000 annually. The farm received offsets from currently purchased electricity and from the engine/generator’s recovered heat used for dairy sanitary wash water. The digester was assumed to have an average production capacity of 35-kW, and annually produced 216,047 kWh. Purchased electricity costs had an energy-only charge of $0.075/kWh. The digester produced more electricity than was consumed on the farm, and the surplus was sold at $0.05/kWh. Available waste heat was used as an offset for purchased propane costing $0.75/gal, with 2,800 Btu recovered for every kWh generated. Table 3.10 provides the investment merit statistics for this example. As mentioned earlier, a positive NPV indicates that a project is cost-effective. Evaluation of the NPV data in Table 3.10 reveals that a plug-flow digester has investment merit when all of the energy and recoverable coproducts can be used as creditable offsets in the analysis. But if, for example, the manure disposal savings and digested solids recovered were not creditable, and the waste heat from the engine/generator was not recovered and was instead used to heat the digester during the winter, the plug-flow digester is no longer cost-effective. 3-18PDF Image | Methane Recovery from Animal Manures The Current Opportunities Casebook
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