Power Base Builds For Biogas, Biodiesel And Hydrogen

HEADNOTE

Third Annual Renewable Energy Conference highlights technological progress, investment support, and more industry commitment.

AT THE SAME time in mid-November when the White House and Congressional Republican

leaders were forced to give up on their "leave no lobbyist behind" energy bill, some 250 registrants learned that a growing renewable energy industry was shaping up well to move great concepts into economic realities. Those were the exciting facts revealed at last month's Third Annual BioCycle Renewable Energy from Organics Recycling conference in Minneapolis, Minnesota, during formal presentations and informal conversations. Some highlights are presented in this report.

Following a discussion of municipal, industrial and agricultural biomass-to-energy projects "in the pipeline" by Phil Lusk of Resource Development Associates, and new government mandates that support renewable energy and biobased products (ranging from grants, tax incentives and required standards) by Carol Werner of the Environmental and Energy Study Institute, Lola Schoenrich of the Minnesota Project provided details of the state's Clean Energy Resource Teams (CERTs). The teams are being formed in six regions in Minnesota to develop local renewable sources from biomass, biofuels, hydrogen, wind and solar. "By shifting our reliance to locally-owned distributed renewable energy resources, communities can help prevent pollution and create local economic development opportunities," declared Schoenrich. As an example, David Kolsrud - a farmer from Beaver Creek, Minnesota - described in the closing plenary session how a community-based farm cooperative is building an ethanol plant utilizing crop residues.

MINNESOTA'S RENEWABLE HYDROGEN INITIATIVE

This year's Renewable Energy conference had a special Biobased Hydrogen track that was organized by Ken Brown of the Minnesota Office of Environmental Assistance. Sessions featured presentations on the commercial outlook for leading technologies to produce renewable hydrogen from such sources as green algae, food processing wastewater, gasification of biomass, and fermenting potato waste. Presentations were made by leading scientists from the National Renewable Energy Laboratory in Golden, Colorado; Iowa State University; Penn State University; University of Wisconsin and University of Minnesota.

To fulfill the state's goal of moving to hydrogen to help meet its energy needs, Minnesota created a Renewable Hydrogen Initiative which is a partnership of industry, university and government as well as nongovernment organizations. Its goals are to foster new industries and boost jobs and the economy, while "decreasing the risk to our health, environment and energy security." The 2003 Minnesota legislative session affirmed these goals, and the Hydrogen Initiative received $10 million this year for its work. The University of Minnesota's Initiative for Renewable Energy and the Environment also has a special emphasis on methods and utilization of biohydrogen.

MAKING PROGRESS IN WISCONSIN

In a session titled, "Reaching Out on the Cutting Edge," Don Wiehert - director of the Wisconsin Division of Energy - discussed the challenges and accomplishments of building the biomass market in Wisconsin in lean financial times. He concluded his analysis with the observation that while "It's not love, it's not bad," since Wisconsin's bioenergy effort is multifaceted, building on 25 years of momentum, includes many partners and is loosely structured. For specifics, Wiehert noted these statistics:

In the past five years (1998 to 2002), the state's biocncrgy use (trillion Btus/yr) has increased in these categories: Wood - from 43.3 to 48.9; Biogas - 2.9 to 4.3; and ethanol - 6 to 7.4. Regarding biogas recovery, 34 Wisconsin landfills are collecting gas, with 13 producing energy. Currently, 85 waste-water treatment plants are generating energy from anaerobic digestion - 39 listing their site as turning out "productive energy." Ethanol production is forecasted to increase from 77 to 140 million gallons/year next year. Six Wisconsin utilities have green pricing programs with the following names: Alliant Energy -second Nature; Dairyland Power Cooperative - Evergreen; WE Energies -Energy for Tomorrow; Madison Gas & Electric - Wind Power Green Pricing; Wisconsin Public Power - Renewable Energy; and Wisconsin Public Service - Nature Wise.

OPERATIONS AND MARKETS FOR ANAEROBIC DIGESTION AT DAIRY FARMS

Several speakers as well as an onsite field trip explained fully how digesters work on dairy farms, and what it takes to build markets for methane utilization. John Katers of the University of Wisconsin-Green Bay described solids separation technologies for raw and digested manure. (See his article in this month's issue.) Richard Mattocks of Environomics, Inc. reported latest trends in farm-scale digestion throughout the Midwest as well as in the Northwest.

In his talk, Earry Krom with Focus on Energy showed the great impact of favorable utility buy-back rates - using specific examples for contracts signed by We-Energies, Alliant Energy and Madison Gas & Electric.

The tour of operations at the Haubenschild Farm in Princeton, Minnesota provided complete details on how a plug-flow digester works for 800 dairy cows. Recycled newspaper, used as bedding for the cows, is also collected with the manure - further reducing its liquid to solids ratio. Manure is mixed for consistency, heated to 10O0F with waste heat from the engine, and remains in the digester for about 15 days. Biogas is captured and piped to the generator to be burned to produce electricity. Digestate is stored in a lagoon until applied on fields.

In operation since fall of 1999, the digester systern is producing over 70,000 cubic feet of biogas per day for use in the Haubenschild dairy operations. Approximately 3,000 kilowatt hours per day of electricity are generated - saving approximately $40,000/year in electricity bills. At a Conference session on financial feasibility of anaerobic digestion systems, William Lazarus of the University of Minnesota's Applied Economics Department used his study of the Haubenschild Farm to provide an economic model for estimating dollar returns based on such factors as production efficiencies, utility rates, etc.

A GROWING FUTURE FOR BIOPRODUCTS

During a panel presentation entitled "The Entrepreneurial Role in Creating Green Power," Bob Walker -founder of Bixby Energy Systems in Rogers, Minnesota - described how his company is converting such organic residuals as sugarbeet waste, corn husks, cranberry leaves, cotton gin trash, and just about any biomass into pellets. These pellets are then used as fuel in a specially designed home furnace described as "assuring the ultimate in comfort and economical heating." Walker has acquired a home delivery company that formerly specialized only in delivering materials for water softeners, but now will be delivering pellets. "Renewable energy firms using biomass must not only be making the power, but need to be able to supply that power directly and efficiently to consumers," adds Walker.

Just as in the early days of commercial composting some 30 years ago when we crossed the line that separates a good concept from a working strategy that solves waste disposal problems and creates resources (as well as jobs and profits), biomass energy is now achieving those same transitions. The spirit of the Minneapolis Conference in 2003 reflected the knowledge, experience, confidence and commitment that portends even greater progress for 2004... and beyond.

SIDEBAR

A partnership of industry, university and government, Minnesota's Hydrogen Initiative fosters new companies, boosts jobs and "decreases risk to our health, environment and energy security."

SIDEBAR

"Renewable energy firms using biomass must not only make the power, but need to supply it directly and efficiently to consumers," says Bob Walker, founder of Bixby Energy Systems.