Comparing the Low Carbon Fuel Standard to the Carbon Market for Dairy Digesters

I wrote the article below for The Climate Trust’s newsletter:

California’s suite of climate policies create two distinct environmental markets: a cap-and-trade market for allowances and offsets, and a Low Carbon Fuel Standard (LCFS) market for LCFS credits. Both generate significant revenues for dairy digesters, but, according to recent informal discussions, the Air Resource Board has decided that biogas projects cannot sell both at the same time. Dairy digesters whose biogas is used as transportation fuel therefore need to determine which market offers the most value. This analysis is trickier than it first appears.

Prices for both offsets and LCFS credits are reported with the same units, dollars per metric ton of carbon dioxide equivalent reduction ($/mtCO2e). The baseline from which each reduction is calculated, however, is different. Offsets are based on the methane emissions that would have occurred if the dairy had not installed a digester. LCFS credits, on the other hand, are based on the reduction from the LCFS’s annual carbon intensity target. The same dairy digester project will therefore generate a very different number of offset and LCFS credits. To determine which market offers the most value, projects need to calculate how many of each credit they could generate.

Oregon Pioneers a New Biogas Model

I wrote a brief article for Sustainable Business Oregon about the Junction City Biomethane project, and the unique business model it is testing in Oregon.

Oregon Pioneers a New Biogas Model

Emerging Opportunities with the Low Carbon Fuel Standard Webinar

A webinar I gave for the American Biogas Council on the Low Carbon Fuel Standard and biogas projects. My presentation begins at minute 26:54.

Interview with the Harvesting Clean Energy Report

Below is my interview with the Harvesting Clean Energy Report about the DeRuyter feasibility study:

DeRuyter Nutrient Recovery and Transportation Fuel Feasibility Study

I was part of a team, along with Washington State University, that analyzed the economic impact of implementing two new technologies at the DeRuyter digester: 1) using biogas to generate transportation fuel rather than electricity, and 2) implementing full-scale nutrient recovery. Here is a summary of my findings for the report and here is the full report.

I specifically studied the Renewable Identification Numbers associated with biogas as a transportation fuel and the potential to earn carbon credits for reduced N2O emissions from nutrient recovery. I presented the results of our study in a brownbag presentation, whose powerpoint I’ve embeded below:

California’s Emerging Carbon Market: Biocycle Magazine Article

Biocycle published an article I wrote about how California’s carbon market can support biogas and composting projects entitled “California’s Emerging Carbon Market.” The article discusses what carbon is worth for livestock digester projects, and advocates for California to adopt new protocols to support the digestion and composting of other organic wastes.

AgStar Biodigester Carbon Workshop Presentation

I gave the following presentation at the 2012 AgStar Conference. The Climate Action Reserve organized a workshop, and I was asked to provide a case study and discuss carbon finance and how it can interact with the USDA’s Rural Energy for America Program. My presentation is on-line here.

The slide below shows Kevin and Daryl Maas, the owners of Farm Power, receiving a $500,000 grant and 80% loan guarantee from USDA REAP. These loan guarantees are key to enabling debt financing, and could, in the future, guarantee upfront carbon purchases.

Digester Panorama

Check out this panorama of Farm Power Lynden’s anaerobic digester. I’m standing on top of the manure from 2,000 cows. The 750 kW generator is in the red barn, and it sends its “waste” heat to the greenhouses to the south.

American Biogas Council Biogas Financing Presentation

I gave the following webinar on methods of financing biogas projects, with an emphasis on carbon markets, to members of the American Biogas Council. My presentation starts at 4:30 in the video below.

Biogas Financing: Options, Steps, and Resources for Biogas Project Development from American Biogas Council.

Oregonian feature

Our biogas report and investment in the Lochmead biogas project was featured in this article on the front page of the Oregonian!