Biogas development in the u s current trends and future opportunities

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rescar-ci~cs rccjucst a copyfson~ Willia~rrs this to the College Libraries o r t o nialte orle f r o n ~ electronic versirtn 311 -Copying of the thesis is restricted for -years, at which time copies may be provided to any researcher 'i'l~isoprjoii allows the auil~or set a tiine limit o n copyiiip ssstl-ictioiis 1)uring i.11is period an to cicctroiiic ver-\ion of the thesis will he prorected agaiilst duplication, -Copying of the thesis or portions thereof, except as needed to maintain an adequate number of research copies available in the Williams College Libraries, is expressly prohibited The electronic version of the thesis will be protected against duplication Sele~tllig opilon dtJou> iro r cproductroni :o be llnciile i o l rc\e,~icllers The eizctritnic \ el51on ihii of the llle\t\ n ~ l he plitle~ieii l ,)gnrn\t C I J ~ I I C ~ ~ I O I I 1ill\ optioil ~Ii>es dl\-nllou te\elucheri i ~ o n ~ 1101 iedcl~ng/\ e \ ~ i n g i \ ~ i )kl 111 e ~ t h c ~ r ~ c o p r d ~ g ~ t 101m t the hn o dl Thesis title Accepted for the Libraries Date accepted 54 -7 - v s ,a w , ,rf*~fY~- BIOGAS DEVEILOPMENT IN THE U.S.: CURRENT TRENDS AND FUTURE OPPOlRTUNITIES Amelia Grace Bishop Sarah Ciardner, Advisor A thesis submitted in partial fulfillment of the requirement for the Degree of Bachelor of Arts with Honors in Environmental Studies Williams College Williamstown, MA 01267 TABLE OF CONTENTS List of Figures List of Tables -3 Acknowledgements Abstract Introduction -6 Chapter 1: Biogas in the U.S Problem Overview 10 Anaerobic Digestion as an Energy So~irce 10 Where in the World is Anaerobic Digestion? Setting the Stage 12 Energy Problem Overview 15 Biogas as a Partial Solution to the Energy Problem 18 Chapter 2: Resources for Biogas Development in the U.S 24 Federal Resources 25 Federal Laws/Policies 26 Federal Programs by Agency 28 Combined Agency EfSort 36 State Analysis: California, Vermont and Massachusetts 37 State Resources Summary 37 California 42 Renewable Portfolio Standard/' Energy Trust Fund 42 Biogas Energy Policy Overview 43 California Programs for Biogas 45 a Net Metering 45 b GrantsLoans 45 c T d r o d u c t i o n Inc'entives 47 California Non-governmental Initiatives 48 California Summary 49 Vermont 50 Renewable Portfolio Standard/' Energy Trust Fund 51 Biogas Energy Policy Overview 52 Vermont Programs for Biogas 54 a Net Metering 54 b GrantsLoans 55 c Tax/Production Incentives 57 Vermont Non-governmental Initiatives 58 Vemont Summary 60 Massachusetts 61 Renewable Porgolio Standard,'Energy Trust Fund 62 Biogas Energy Policy Overview 63 Massachusetts Programs for Biogas 64 a Net Metering 64 b Grants/Loans 64 c Tax/Production Incentives 67 Massachusetts Non-governmental Initiatives 69 Massachusetts Summary 70 Chapter Conclusions 71 Chapter 3: Resources for Biogas Development Abroad 79 Introduction 79 Geography 80 Foreign 80 United States 80 Summary 81 Laws and Policies 82 Foreign 83 87 Regional United States 87 Summary -90 Technology Development 91 91 Foreign United States 92 Summary 94 Dialog and Information Sharing 95 Foreign: International 95 Foreign: European 96 United States 97 Summary -99 Chapter Conclusions 100 Chapter 4: Biogas in the U.S Barriers to Widespread Application 104 Barriers to Biogas Development in the U.S 104 Overcoming the Barriers 110 Conclusions 116 Research Conclusions 116 Recommendations 118 Appendix A: Recommendations to a Municipality Retrofitting Digesters to Generate Electricity 122 Sources 123 LIST OF FIGURES Figure 1: Biogas Production 11 Figure 2: Renewable Energy vs Total Energy Consumption in the U.S 2004 13 Figure : The Origins of Biomass Energy 14 Figure 4: United States Fossil Fuel Productiocl/Consumption .16 Figure 5: Federal Biogas Incentives Summary 25 Figure 6: Impact of AgSTAR on the Number of Digesters in the U.S 30 Figure 7: SARE Grant Regions 31 Figure 8: EQIP Grant Program Allocations by State 33 Figure 9: United States Renewable Portfolio S'tandards 38 Figure 10: How Net Metering Works 40 Figure 11: United States Net Metering Programs by State 41 Figure 12: Massachusetts Renewable Energy Trust Awards by Municipality 66 Figure 13: New England Greenstart vs National Grid Energy Resources (Massachusetts) 69 Figure 14: Net Metering Size Limits; CA, VT!.MA 73 Figure 15: State Renewable Portfolio Standard Comparison; CA, MA 76 Figure 16: Sources of Japanese Electricity Generation, 2002 85 Figure 17: Sources of United States Electricity Generation, 2003 85 Figure 18: United States, Dairy Cows per Farrn -2001 107 LIST OF TABLES Table 1: U.S States with Renewable Energy Trust Funds 39 Table 2: State Renewable Energy Trust Fund Comparison; CA, VT MA 72 Table 3: United States Net Metering Customers by State and Customer Class 74-75 Table 4: State and Federal Grant Comparison 77 ACKNOWLEDGEMENTS Foremost I would like to thank my advisor, Sarah Gardner, for her time and effort in making this project happen I also owe a great deal to Professor David Dethier for his patience, comments, and guidance; all were instrumental in this process Thanks also to my father, who not only facilitated my digestion project but has inspired me to challenge myself over the years I owe a great deal to my contacts in California, Vermont, and Massachusetts; this project was only possible with your time and consideration ABSTRACT This paper addresses the potential for farm and municipal wastewater treatment plant anaerobic digestion facilities in the United States In light of rising oil and gas prices indicating increasing petroleum scarcity, this type of biogas is an important energy alternative to consider While current use of on-farm and municipal wastewater biogas represents a minimal portion of the renewable energy sector, there is considerable room for improvement Biogas is surely not the only solution, but this thesis establishes that its potential contribution both to the renewable energy sector and to emissions reduction makes more widespread integration worthwhile This paper looks first at how on-farm and niunicipal wastewater biogas is currently used in the United States and then at how it can be further developed Through a comparative case study of three states, this paper addresses current U.S policies, compares U.S initiatives with those of other countries, and establishes where there is room for improvement The thesis finds that, cln the whole, policies in foreign countries have been successful because they set requirements that generate more widespread and complex digester development, innovating ancl sharing information that fuel and are a result of these incentives This paper ends with a set of conclusions based on the results of the comparative case studies and barriers to biogas development in the U.S It also proposes a set of recommendations, based on these conclusions, to increase the use of this simple and valuable resource INTROIDUCTION In 2003 the world consumed 15,450,000,000,000 kwh of electricity Of this, the United States consumption, the world's greatest at 3,656,000,000,000 kwh, was equal to nearly 24% of global consumption.' Approximately 30% of the fossil fuels consumed in the U.S are devoted to electricity production Of the electricity consumed in the United States, 70% comes from fossil fuel resource^.^ Biogas is one of the most simple, yet least well known, technologies providing an alternative to fossil fuel use Unllke wind, vvater, and solar mechanisms, however, anaerobic digestion produces a gas with a number of different potentials for use Capturing biogas for energy production is a unique approach to the energy concerns facing the world today, yet there is much room for improvement in this technology and its application The leading countries in on-farm and municipal wastewater biogas production are located abroad in countries such as Germany, Nepal, and China, while comparatively less has been done within the United States Even the United Nations' Food and Agriculture Organization is well (awareof potential in this arena and proclaimed so in 1992: "Anaerobic digestion provides some exciting possibilities and solutions to such global concerns as alternative energy production, handling human, animal, municipal and industrial wastes safely, controlling environmental pollution, and expanding food supplies."3 ' The World Factbook "Rank Order - Electricity - consumption." http://www.cia.gov/cia/publications/factbooMrankorder/2042rank.html Last Updated 4.20.2006 Viewed 5.4.2006 The Greening Earth Society "Electricity Production Overview." http://www.bydesign.com/fossilfuels/linkshtml/electsicity/electsic production.htm1 019981999-2000 byDesign and PowervisioN for The Greening Earth Society Last updated 2.19.2004 Viewed 5.8.2006 United Nations Food and Agriculture Organization, Corporate Document Repository "Biogas Processes for Sustainable Development." I find it pressing to address this potential and even more interesting to determine to what extent biogas can be harnessed as an alternative energy source in the United States I am also interested in exploring the extension of biogas use from farms to cities As human populations expand (some studies predict a 10 billion high in 2100), more and more people move to cities As Stokstad predicts, within 35-50 years the number of people living in cities will d o u b ~ eThis prediction leads me to believe that there would ~ be enough waste generated from these metroplolises to produce a substantial amount of energy needed to run such bustling centers It is both pertinent to the dwindling supplies of fossil fuels and personally interesting to delve into these more unexplored aspects of biogas application Not only is using fossil fuels an environmentally hazardous practice, it is an unsustainable one In his book "Out of Gas," David Goodstein discusses the end of "American oil dominance" as worldwide discovery peaked around 1960, surpassed by consumption rates by about 1980.~ a clearly unsustainable pattern, Goodstein notes In that "no discoveries, past, present, or future, are going to keep up with demand."6 As third world countries such as China and India industrialize amongst all time population highs, dependency on this energy source becomes an increasingly immediate problem There is simply not enough oil in existence to support current consumption levels As among the world's most wealthy and persistent consumers, it is feasible and arguably necessary for the United States to promote alternative energy use The United States has - http://www.fao.or~/documents/show cdr.asp?url file=/docrep/T0541E/T0541E03.htm 1992 Viewed 3.21.2006 'Chapter Two: Introduction and Overview.' Stokstad, Eric "Will Malthus continue to be wrong?" Science 2005 Jul 1;309(573 1):102 Goodstein, David "Out of Gas: The End of the Age of Oil" W.W Norton & Company, Inc New York, NY 02004.23 Ibid, 128-129 improvements, and propose programs and legislation, making it easier for potential users to find information on the resource Expand AgSTAR As mentioned throughout this paper, AgSTAR is a limited program as its goal is solely methane reduction and it only targets on-farm systems (without providing funding) There is room for improvement in the AgSTAR program; methane reduction is an worthwhile goal, but C reduction and renewable energy generation are also important Further, in order to be more effective, AgSTAR should provide funding to see through the projects it recommends Digesters cost anywhere from $250,000 (for a municipal wastewater system) to over $500,000 (for an on-farm digester); these figures are daunting and require extensive loans Angie from RCM Digesters notes that at least for farmers "you have to get grants right now - that's the only way it makes sense."285With these improvements, AgSTAR could be even more instrumental in assuring widespread digester implementation in the U.S Role for the federal government: funding! As mentioned above, the feasibility of these programs, at least initially, is highly dependent on the amount of funding available The large capital input of anaerobic digestion systems deters potential investors As it once did with wastewater treatment plants to clean United States' waterways, the federal government could mandate that the 3,300 wastewater treatment plants like Essex Junction harness the biogas to produce electricity (ideally in compliance with an emissions reduction mandate) and provide funding to assure that these systems are developed Alternatively, since states are so crucial in providing opportunities for digester projects, the federal government could 285 Angie, Environmental Scientist at RCM Digesters Personal Interview on 4.11.2006 allocate money to state legislatures (through Renewable Energy Trust Funds, for example) who would then be able to craft programs tailored to the needs of their region In the end, all agree that the potential to generate electricity from farm and municipal wastewater treatment biogas systems is not significant enough to make up for fossil fuel consumption Jeff Forward comments that biogas use "shouldn't be containing, it should be complementary" so that there is an alternative "when the wind doesn't blow or the sun doesn't shine." Indeed, Forward is optimistic that "we're going to it one way or another It's just a matter of time.'' He encourages the author that "there are some very good people working on some innovative stuff' in the field of biogas technology.286As the rising prices of oil and increasing national and worldwide concern about global warming indicate, the primary drivers for biogas development in the United States are likely yet to come to fruition Nothing is for certain, however, for the current and future priorities of U.S energy spending and environmental policies will dictate the degree of future digester integration across the country 286 Forward, Jeff, formerly of the Biomass Energy Resource Center and former consultant to the Vermont Farm Methane Project Personal Interview on 12.7.2005 121 APPENDIX A: RECOMMENDATIONS TO A MUNICIPALITY, RETROFITTING DIGESTERS TO GENERATE ELECTRICITY Assure that the wastewater treatment facility in your townfarea already treats via anaerobic digestion While anaerobic digestion is a common way to treat wastewater sludge, other practices exist Retrofitting an anaerobic digester to harness the biogas for energy production is much easier and less expensive (approximately $250,000) than installing a whole new system of treatment (which would cost millions) Cost effectiveness will depend on the size of the system (i.e the amount of sludge that is regularly digested.) Get in touch with your local utility: they might have green pricing programs or programs to help with renewable energy development.2s7 Find out if your state has a Renewable Portfolio Standard and how it is administered Contact administration authority to determine what funding opportunities are available for your particular system Engage the public as well as the utilities in your discussion: you'll need their support !"' 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Lakewood, Colorado http://www.wapa.gov/es/greennews/2004/sept2704.htm September 27, 2004 Viewed 1.24.2006 ... comparing the successes of United States'' and European countries'' initiatives CHAIPTER RESOURCES FOR BIOGAS DEVELOPMENT IN THE U. S In this chapter I discuss the current opportunities available in. .. in the U. S and apply successful European strategies to this end Ultimately, this thesis applies the outcome of this research to U. S social and economic systems in order to determine the most suitable... section assesses the current level of biogas development in the U. S. , lessoins learned from abroad, and barriers to development in the U. S It culminates in a set of recommendations to improve the integration