Fresno Bee

Cow Power

Company plans to produce electricity using Valley manure.

By Robert Rodriguez The Fresno Bee

(Published April 6, 2001)

A Colorado energy company is entering a partnership with the Laguna Irrigation District and six Central Valley dairies to use cow manure as a source for generating electricity.

Doug Rayner, general manager of the irrigation district that straddles Fresno and Kings counties, said the agency has signed an agreement with Microgy Cogeneration Systems of Golden, Colo., to distribute power cultivated on dairy farms in Kings and Tulare counties.

How much energy can be harvested will depend on several factors, but a Microgy official said that larger dairies with as many as 1,500 cows can produce from three-quarters to one mega watt of power. One megawatt of power can supply an estimated 750 to 1,000 residences.

Microgy ranks among the leaders in building highly specialized energy systems known as anaerobic digesters. Simply put, a digester is an airtight container that uses bacteria to break down manure. As part of that process, methane gas is produced and used to power electrical generators.

Although the idea of using manure to produce electricity is not new, the technology has been refined and is gaining greater prominence in California's energy-strapped and environmentally sensitive dairy community.

Given that the Tulare, Kings, Fresno and Madera counties make up the richest dairy region in the nation -- topping $1.5 billion in milk production in 1999 -- Microgy and similar companies see the potential for growth.

"Our goal is to build this program as fast as we can, but with controlled growth," said Tim Biehler, director of West Coast Business Development for Microgy.

As part of its agreement with the water district, Microgy will sell the energy it produces to Laguna, which under California law can function as a utility. The water district will then provide electricity at a "competitive rate" to those within its 36,000-acre district. Rayner estimates the demand in his district totals 15 megawatts of power, and about half of that will be supplied by the six dairies involved in the project.

"We will be the first in California to do a project like this," Rayner said.

It comes as no surprise to most that the state's energy crisis and the dairy industry's concerns over air, ground and water pollution are luring out-of-state energy companies to California.

Companies such as Microgy and Bioscan LLC of Denmark are talking with dairy operators from Chino to Hanford about ways they can reduce harmful gases and ammonia while also sharing the benefit of electricity produced on their dairy.

Kings County supervisor and dairy operator Tony Oliveira said those were precisely the reasons he began exploring the issue nearly two years ago. His dairy will be among those outfitted with a digester later this summer.

"As a farmer and a county supervisor, this is a no-brainer," Oliveira said. "I think that what we will find is that the dairy industry in Kings and Tulare counties are going to become major contributors of electrical generation."

That may not happen without the help of state legislators, including Sen. Jim Costa, D-Fresno, who are working to make it easier for irrigation districts to tap into a utility company's distribution network and to provide tax incentives and financing for biogas projects.

On their own, few dairy farmers, if any, are able to finance construction of anaerobic digester systems on their ranches.

Oliveira said the cost can run in excess of $1 million for a plant. Under his agreement with Microgy, the company builds the plant and Oliveira collects a rental payment. He also estimates he could save 30% on his utility bill.

Dairy operators also get back improved manure; stripped of methane gas, it has fewer pathogens and less potential to pollute air, ground and water resources than raw manure.

Biehler said there also is the potential for dairy operators to reduce their operating costs by using waste heat for hot water or refrigeration.

The Central Valley project is expected to begin construction later this summer.

To date worldwide, Microgy has developed about 20 systems that have been in operation from 10 to 15 years. Its two newest projects are in California and its dairy rival, Wisconsin.

For his part, Rayner hopes that pending state legislation will make it easier for irrigation districts to operate as utilities.

"There has been somewhat of a reluctance on the part of the utility company to gain access to the distribution facility," Rayner said.

In California, four irrigation districts sell electricity on the retail market: Turlock Irrigation District, Modesto Irrigation District, Imperial Irrigation District and Merced Irrigation District.

In the short run, Rayner said, Laguna's plan is to provide electricity to potential customers in its region. It's long-term goal is to be independent of the state's power grid by producing its own power and controlling its own distribution system.

One of Tulare County's largest cheese processors welcomes the new technology, saying it will help dairy operators become more efficient and potentially provide a more stable and affordable power supply.

"Land O' Lakes is such a heavy user of energy that any new source that can come online will lessen the demand on the total grid," said Larry Serpa, director of member relations for Land O' Lakes. "And that helps everyone."

The reporter can be reached at brodriguez@fresnobee.com or 441-6327.

-- Anonymous, April 08, 2001