NY Governor Cuomo Announces $21 Million to Create Economic Opportunity for Dairy Farmers Statewide

Governor Andrew M. Cuomo today announced nearly $21 million will be available to create new economic opportunities for New York’s dairy farmers by helping them to produce renewable energy and improve their business operations. The funding will help dairy farmers convert farm waste to energy and develop individualized business and environmental plans to reduce operating costs and increase profitability. The funding for these efforts stem from recommendations made at Governor Cuomo’s Yogurt Summit in 2012 to ensure that the industry continues to grow and create jobs in New York State. In his 2014 State of the State Address, Governor Cuomo pledged a second Yogurt Summit to identify additional economic growth opportunities within this growing sector of the economy.

“The State is committed to creating new economic opportunities for our dairy farmers, who have helped make New York the Yogurt Capital of the nation,” Governor Cuomo said. “With this funding, we are providing significant financial assistance to farmers so they can cut their energy costs, increase efficiencies in their operations, and develop plans to expand their businesses and contribute to cleaner communities. This year, we are also launching a second Yogurt Summit to ensure the state’s dairy industry continues to thrive and grow the Upstate economy.”

John B. Rhodes, President and CEO, New York State Energy Research and Development Authority (NYSERDA), said, “The anaerobic digester funding coupled with the Dairy Acceleration Program funding is another step the State is taking, under Governor Cuomo, to assist farmers in reducing their operating costs and in generating clean energy. Farmers that utilize anaerobic digester technology are able to produce renewable energy and lower their costs while providing a number of environmental benefits to their local communities.”

Department of Environmental Conservation (DEC) Commissioner Joe Martens said, “Governor Cuomo’s continued support has achieved environmentally responsible growth in the dairy industry throughout the state. This collaboration with our partners, including Cornell University, provides farms with the technical expertise they need to help protect New York’s natural resources and open spaces.”

Waste-to-Energy Anaerobic Digesters

Starting on January 17, $20 million will be available through NYSERDA to install anaerobic digester technology that produces renewable biogas used to produce electricity and heat from organic wastes. Farms, food processing manufacturers or municipal wastewater sites would be eligible for up to $2 million per project.

Biogas-to-power technology has several steps. Dairy manure and other organic wastes are pumped into digestion tanks where bacteria break down the waste, creating a methane-rich gas called biogas and a nutrient-rich effluent that can be applied to crops as fertilizer. The biogas is burned in engines to produce electricity and heat. Through this process, farmers can often eliminate a significant portion of the electricity they would otherwise purchase from the utility grid, and periodically export surplus electricity onto the electrical grid in exchange for credits. Furthermore, farmers can realize operational savings in other areas as well.

Over the past 10 years, NYSERDA and the New York Power Authority have awarded nearly $30 million toward anaerobic digestion projects and related technology, resulting in significant energy savings to New York-based businesses while reducing the use of fossil fuel. Currently, this funding supports 20 operational digester projects. The digester technology funding will be available on a first-come, first-served basis for eligible projects.

Dairy Acceleration Program

Funding for the Dairy Acceleration Program (DAP) will be increased by $850,000, which is in addition to the $1 million announced by the Governor this past August. DAP is jointly funded by the Department of Agriculture and Markets and DEC. DAP is resonating very positively with dairy farmers across the state, most with herds under 300 cows. Combined with some funding still available under the current program, this new funding will serve at least 100 more dairy farms across New York.

Payments under DAP may include: up to $5,000 per farm to write a business plan or develop a combination of a business and facility growth plan; and up to $4,500 to update an existing Comprehensive Nutrient Management Plan (CNMP) or $6,000 to develop a new one. Additional funds also will be available to design farm practices described in CNMPs. CNMPs are a conservation system for animal feeding operations designed to address soil erosion and water quality concerns. The CNMP encompasses the storage and handling of manure as well as using and applying manure nutrients on farm land. Through DAP, the state awarded dozens of projects already for farms with an average herd of about 140 cows.

Business planning may include financial analysis, farmstead development planning, facility planning and capital investment planning for increased milk production per cow. Environmental planning includes CNMP development and updates. Farms without an existing CNMP can hire a certified Nutrient Management planner to develop a new CNMP.

To be eligible for DAP, a dairy cattle farm must have complete financial records. Preference will be given to farms with under 300 cows. DAP funding will cover up to 80 percent of a project’s cost.

Modern milk production requires expertise from a number of disciplines, ranging from agronomics, environmental science, animal husbandry, crop science, human resource management, and financial and strategic planning. Through DAP, farmers will be able to tap into the expertise of the Cornell Cooperative Extension (CCE) network, Cornell PRO-DAIRY, certified Agricultural Environmental Management planners and other agricultural programs to facilitate and grow their business and in turn increase production on their farms.

Tom Overton, Professor of Dairy Management at Cornell University and Director of PRO-DAIRY, said, “We have been very pleased with the excellent response of New York dairy farmers to this program to date. The awarded projects have been of high quality and will help these farms both meet the increased demand for milk and be successful as businesses. These new funds will be directed entirely toward funding additional projects under this program. We thank Governor Cuomo and New York State for their vision in recognizing that success at the farm-level is imperative for long-term support of our growing dairy manufacturing industry.”

Gary and Connie Menard, Owners of Happy Haven Dairy, a 60-cow dairy farm in Clinton County, said, “Our dairy farm has begun our very first generational transfer. This brings us to a crossroads that offers many options and possibilities. The Dairy Acceleration Program has allowed us to hire independent consultants to crunch our numbers and evaluate our business with the goal of offering profitable suggestions as we move forward. These types of professional people are always impractical to hire at our farm size because the cost was always prohibitive with the cash flow that smaller farms work with. Our farm has a very exciting future and the Dairy Acceleration Program came at a perfect time for us. We strongly suggest any progressive farm willing to make changes for a better future to look into this program.”

Bear Republic Brewing And Cambrian Innovation Unveil Pioneering Wastewater Reuse System

Cambrian Innovation and Bear Republic Brewing Company, Inc. today announced the unveiling of an EcoVolt water treatment system at Bear Republic’s brewery in Cloverdale, CA. The EcoVolt system employs a proprietary bioelectric technology to treat wastewater and generate biogas, transforming waste into an asset. Bear Republic is the first brewery to purchase the energy positive EcoVolt system, which will cut water treatment costs, generate clean water and energy for use on site, and significantly reduce the brewery’s CO₂ footprint.

EcoVolt is the world’s first and only industrial-scale, bioelectrically enhanced wastewater treatment and reuse system. Electrically active organisms rapidly eliminate 80-90 percent of the biological oxygen demand (BOD). The bioelectrochemical system also converts carbon dioxide directly into high-quality biogas that can be used on-site to generate both heat and electricity for Bear Republic’s production process. The EcoVolt is expected to deliver an annual return on investment of more than 25 percent. With this pioneering system, the brewery can:

• Generate enough clean heat and electricity to eliminate more than 50 percent of the site’s baseload electricity use
• Supply more than 10 percent of the facility’s requirements with recycled water
• Cut operational costs by hundreds of thousands of dollars annually.

“We are pleased to announce this partnership with Cambrian Innovation as Bear Republic phases in this revolutionary wastewater reuse system,” said Richard R. Norgrove, Sr., Bear Republic CEO.

“Sustainable production practices have been a cornerstone of Bear Republic’s business since we started in 1996,” says Richard “Ricardo” Norgrove, Jr., Bear Republic Brewmaster and COO. “Cambrian’s innovative technology not only fulfills this mission, but also has proven to be a valuable asset for our business, especially as California is in the midst of a drought. By removing barriers to production expansion due to water resource limitations, we can fulfill a family dream of expanding our business within Sonoma County and creating a true destination brewery.”

The EcoVolt installation includes a “headworks” unit, modular reactors for treatment and a packaged combined heat and power system. The reactors are delivered on a flatbed truck and are the size of a cargo shipping container, enabling rapid and simple system installation and commissioning. The modular design enables food and beverage companies to incrementally add capacity as they grow, reducing upfront capital expenses. Bear Republic plans to treat current water capacity and expand units as it grows. EcoVolt’s bioelectric capabilities allow for continuous, remote monitoring and control, further reducing operational costs.

“Bear Republic is not just implementing one of the most advanced water treatment and reuse systems ever developed—they’re also saving money from day one,” said Dr. Matthew Silver, Founder and CEO of Cambrian Innovation. "EcoVolt is proven to treat wastewater and generate energy in a single process, reducing operating expenses and aiding with wastewater regulation compliance. With this installation, Bear Republic has reaffirmed its reputation as a pioneering brewery.”

Beer brewing is a water-intensive industry, typically consuming up to ten times the amount of water for beer produced. Bear Republic has worked hard to achieve a 3.5 to 1 ratio and with EcoVolt they expect to do even better. The system enables varying types of water reuse ranging from tank washing to irrigation, cutting sewer charges substantially while ensuring a stable water supply for the City of Cloverdale.

Murphy-Brown and Roeslein Alternative Energy To Develop $100 Million Northern Missouri Biogas Project

Murphy-Brown of Missouri, LLC (MBM) and Roeslein Alternative Energy, LLC announced today their joint plans to develop a $100 million renewable biogas project in northern Missouri. Murphy-Brown is the livestock production subsidiary of Smithfield Foods, Inc.

The project is a unique and innovative model for sustainability that will demonstrate how underutilized agricultural resources can create renewable fuel, benefit the ecosystem and generate economic opportunity. The joint venture envisions combining technology and animal waste to optimize alternative energy production for regional distribution.

Biogas, also called renewable natural gas, is created when organic matter decomposes without oxygen present. Biogas will be harvested from MBM finishing farms in northern Missouri using state-of-the-art anaerobic digestion technology developed and installed by Roeslein Alternative Energy, LLC.

Roeslein has engaged investment banking firm Stern Brothers & Co. to underwrite the entire financing for this project. The Missouri Clean Energy District's PACE program is being reviewed as a financing option. Construction is scheduled to begin in the spring of 2014.

"This is an important sustainability project for Murphy-Brown of Missouri. Not only does it demonstrate our ongoing commitment to the environment and to our neighbors, but it also allows us to make facility upgrades that are good for our employees, our animals and the continuous improvement of our business in northern Missouri," said Michael Rainwater, general manager of MBM.

"This capital project is a robust investment in our northern Missouri operation, producing additional good-paying jobs and promoting economic development that is vitally important to our region," Rainwater said.

"All of us at Smithfield Foods are tremendously proud of the many people at Murphy-Brown and Roeslein Alternative Energy who have already worked very hard on this project, and we're looking forward to the day when Missouri residents will benefit from this innovative source of biogas energy," said Dennis H. Treacy, Smithfield's chief sustainability officer.

Impermeable synthetic covers will be placed on existing nutrient treatment lagoons, and barn scraper technology will be utilized to deliver raw nutrients of livestock waste to covered lagoons. Alternative fuel equipment will then harvest and commercialize biogas produced inside the lagoons. The biogas will then be utilized as a renewable, green energy resource.

"Environmental benefits from this project will be significant," explained Rudi Roeslein, president of Roeslein Alternative Energy and CEO of Roeslein & Associates, a global leader in systems integration specializing in sophisticated modular construction.

"Utilizing proven anaerobic digestion technology, we expect to achieve reduced greenhouse gas emissions, shrink MBM's carbon footprint, eliminate rainfall effects on treatment systems, all while capturing a valuable and renewable biogas energy resource," Roeslein said.

The anaerobic digestion process modules will be fabricated by Roeslein & Associates' wholly-owned subsidiary, Roeslein Manufacturing, in Red Bud, Illinois. Funding for these projects is not being provided by Smithfield Foods or MBM.

GM Announces $24 Million Landfill Gas Investment

General Motors announced recently a $24 million investment in electrical generation equipment that will allow the company to use more landfill gas at its Fort Wayne, Ind., and Orion, Mich., assembly plants.

The new equipment will generate more than 14 megawatts of electricity from landfill gas, a renewable energy source, which will help GM avoid producing more than 89,000 metric tons of CO2 per year. That’s equivalent to the annual greenhouse gas emissions of 18,542 passenger vehicles. GM also will save a combined $10 million in energy costs each year at the facilities.

The investment will provide powerhouse construction at each assembly plant, as well as generation equipment and machinery.

“We have made a public commitment to increase our use of renewable energy within GM to 125 megawatts by 2020,” said Rob Threlkeld, GM global manager of renewable energy. “This expansion represents more than 10 percent of that goal.”

Orion Assembly has used landfill gas since 1999. Currently it helps heat a portion of an upgraded paint shop that uses half the energy per vehicle as the one it replaced. When the electric-generation project is completed, 54 percent of Orion’s energy will come from renewable landfill gas.

Fort Wayne Assembly has used landfill gas since 2002. The investment will increase its landfill gas use four-fold, to 40 percent. Earlier this year, Fort Wayne was named a U.S. EPA Energy Star certified facility for its prudent energy management.

“With this project in place, we are converting landfill gas into our own electricity, which, in essence, allows us to act as our own utility,” said Bill Mortimer, GM co-generation project manager. “Not only does this help us save on energy costs, but it limits the amount of greenhouse gas released into the atmosphere.”

The excess gas flare that normally escapes into the air is now redirected into the facility to create electricity energy for manufacturing.

Construction on both projects has begun, and is expected to be complete and operational by May of 2014.

Largest Dry Fermentation Anaerobic Digestion Facility in the World Opens

A grand opening event took place Friday, November 22 for the world’s largest dry fermentation anaerobic digestion facility and the first large-scale commercial facility of its kind in the United States. The facility in San José will process an estimated 90,000 tons per year of commercial organic waste that would otherwise go to landfill, instead converting it to 1.6MW of renewable energy and 32,000 tons compost.

Owned and operated by Zero Waste Energy Development Company (ZWEDC), the anaerobic digestion facility is a joint venture between GreenWaste Recovery and Zanker Road Resource Management. The companies came together to take organics recovery to the next level—composting organic material to keep it out of landfill while extracting its energy value.

“Our company started to transform the way we look at waste,” said Rich Cristina, President of ZWEDC and host of the event. Cristina told the 600+ crowd, “We saw there was no such thing as waste, no such thing as garbage. We looked at the materials collected and being composted and saw the potential for greatness.”

Another firm, Zero Waste Energy, LLC (ZWE) holds the exclusive license for the patented anaerobic digestion technology in the Americas and Asia with 20 projects in the planning and development phase throughout North and South America, as well as China and the Middle East. The facility is enclosed and ventilated and includes 16 anaerobic digesters plus four in-vessel composting tunnels. Dry fermentation anaerobic digestion is a natural biological process whereby bacteria break down organic matter in an oxygen-free environment. Decomposition occurs in several stages and converts organic matter into a combustible biogas with a high methane content.

Eric Herbert, CEO of ZWE, was on hand to explain the technology. “We’re sitting in an organic waste processing facility,” said Herbert. “We’re doing what nature does, very efficiently in a controlled way. The significance of this facility is the demonstration of this technology in the U.S. on a major commercial scale. But organic waste and its proper treatment and green energy is what this project is all about.”

The ZWEDC facility models how to reduce landfill statewide and worldwide. The high-quality compost produced will be used to enrich soils, and the renewable biogas will provide both onsite power and power for sale to local users of green energy. Development of the ZWEDC facility moves San José closer to achieving its goal of zero waste to landfill by 2022.

City of San José Mayor Reed spoke about the city’s implementation of its Green Vision, saying, “Our Green Vision has ten bold goals. One of those goals is to be a zero waste city. We already do the recycling part. What about the organics, the largest single category going into the waste stream? We knew we needed to be creative and innovative and build something like this.”

U.S. Congressman Mike Honda congratulated everyone involved with the project for helping future generations. “ The global production of organic waste is 600 billion tons per day, and here in this valley is how to address that global waste accumulating. Because of this first spot, this kind of sustainable activity can now grow in other parts of the country and other parts of the world.”

CalRecycle Director Caroll Mortensen delivered the facility’s official operating permit from the State and affirmed, “This it the type of project that Governor Brown and his administration sees as the future of California, attaining not just environmental goals but creating and sustaining jobs, renewable energy, fuel production, and diverting greenhouse gasses.”

The audience in attendance for the invite-only luncheon, presentations, and tours included elected officials from surrounding cities and counties, as well as business and industry groups representing construction, finance, nonprofits, and education.