Maine funds available for anaerobic digestion

The state of Maine has announced funds available to help farmers reduce their agricultural impacts to water quality. State agencies have made up to $3 million available to enable low-interest loans to support eligible projects. These projects may include developing anaerobic digesters, as well as improved roof runoff structures, water and sediment control basins, composting facilities, and irrigation system water conservation.

Anaerobic digesters enable the conversion of organic materials such as manure and other agricultural wastes into biogas. Biogas, largely composed of methane, can be used as a fuel source comparable to natural gas. For example, it can be used to power an electric generator and thus to produce renewable electricity – all while making efficient use of manure and agricultural wastes that could otherwise harm water quality.

Two anaerobic digesters at Stonyvale Farm in Exeter, Maine.

Under the program, farmers will be able to borrow up to $450,000 at a fixed interest rate of 2 percent for up to 20 years to develop qualifying projects. The opportunity represents a partnership between the Maine Departments of Environmental Protection and Agriculture, Conservation and Forestry, the Finance Authority of Maine and the Maine Municipal Bond Bank. The initial seed money comes from the DEP-administered Clean Water State Revolving Fund. Since 1989, that fund has provided over $650 million in low-interest loans for water quality projects, primarily hosted by publicly owned wastewater treatment facilities.  For the newly-announced program, the fund will transfer up to $3 million to FAME, which will finance the loans.

For more information on the opportunity, contact either participating department, or consult a professional experienced with anaerobic digestion and state-funded incentive programs. The Preti Flaherty team advises clients on both the development of anaerobic digestion facilities and participation in government-backed loan programs. For more information, please contact Todd Griset at 207-623-5300.

Farm waste anaerobic digestion

Yesterday I attended a celebration at Stonyvale Farm in Exeter, Maine, where an innovative anaerobic digester system is now producing renewable electricity from cow manure and other organic waste.  The project demonstrates both a promising technology and an opportunity for farms to produce and market new products.

Two anaerobic digesters at Stonyvale Farm in Exeter, Maine.

Stonyvale Farm is a fifth-generation family dairy farm.  Today the farm is home to 1,000 milk cows and 800 calves.  Several years ago, the family decided to explore the development of an anaerobic digestion system to convert manure and other farm waste to usable biogas.  This led to the creation of Exeter Agri-Energy, a renewable energy company that built and operates a 1-megawatt generator fueled by methane produced through anaerobic digestion at Stonyvale Farm.

Exeter Agri-Energy's digester and generator came online in late 2011.  Today the project converts cow manure and off-farm organic waste from a variety of sources into biogas.  EAE is permitted to accept a variety of food-based and organic wastes from off-farm for conversion into biogas.

The biogas is burned in a combustion engine to produce electricity (enough for about 800 homes) and heat.  I helped the company qualify the project for incentives under Maine's community-based renewable energy pilot program, which gives Exeter Agri-Energy a long-term contract to sell the facility’s output to its local transmission and distribution utility for up to 20 years at average prices up to $100 per MWh (equivalent to 10¢ per kWh).  This works much like a feed-in tariff for qualified projects, giving them a guaranteed buyer and price for the project's output.

Fuel production on the farm: dairy cows at Stonyvale Farm.

This on-farm energy project also enables the creation of additional products and revenue streams, as well as cutting the farm's costs.  Byproducts of the digestion process become organic fertilizer, organic soil additives, and animal bedding used on the farm, creating a variety of products with minimal waste.