Biomass Energy: Challenges and Opportunities

for Dairy Producers

Jack Rodenburg

Dairy Cattle Production Systems Program Lead

Why Biomass Energy ??

1. Increasing Energy Costs

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Gasoline Prices ¢ / liter Toronto

Why Biomass Energy ??

2. Concern About Climate Change

Biomass Energy Technologies1. Ethanol from Grain

2. Biodiesel from Oilseeds

3. Bioheat from Shavings and Straw

4. Methane/Electricity from Manure

Biomass Energy Technologies1. Ethanol from Grain

2. Biodiesel from Oilseeds

Inputs are Cash Crops........Process is Off-Farm

- Challenges that compete for livestock feed..

.........grains and fats will be more expensive! - Opportunities for by product feeding...........

.........low cost wet and dry distillers and meals

Biomass Energy Technologies1. Ethanol from Grain

2. Biodiesel from Oilseeds

US goals for Renewable fuels:"25 x '25" - Farms and forests will provide 25% of energy needs by 2025

"30 by '30" - replace 30% of fuel needs with biofuels by 2030.

- 120 operating plants plus 77 under construction

- use 4.8 billion bu. corn in 2007

- food, alcohol, industrial use of corn up from 21% in 2001 to 38 % in 2007

Ontario Ethanol Production- 3 Corn based plants operating (350 million

liters), 1.8 billion liters by 2015- Using 0.8 million tonnes corn (15%), 5.1 million

tonnes (95%) by 2015 ??- Federal Gov't is committed to 5% ethanol in

gasoline by 2010 and 2% biodiesel by 2012- Federal $1.5 billion EcoEnergy Funding, $520

million Ontario Ethanol Growth Fund

Grain and Byproducts markets are borderless !

- USDA predicted $3.75 per bushel corn by 2012......but they are $4.50 now

- Canadian price increases were offset by the strengthening $

- What will corn prices do in the next 2 to 5 years?

USDA says distillers will be cheaper than corn by 2012 !!

The Nutrient Value of 1 tonne Corn Distillers is approx. equal to 1/2 Tonne Corn plus 1/2 Tonne Soybean Meal

Last weeks prices at a Woodstock feed mill: corn $190 soy $ 435

625/2 = $ 312 value for distillersDry Distillers price is $200

Wet distillers in the Woodstock area is $60/tonne@ 30% dry matter

Storing Wet Distillers• Freezes in the winter.

– Chunks make mixing difficult

– Diet less consistent

• Losses due to spoilage.– Molds rapidly (less than 7

days in hot weather)

Preventing Spoilage in Wet Distillers

• Add preservatives: limited success• Store in silo bags: can store > 6 mo.• Blend with other feeds: e.g. corn silage, soy

hulls, beet pulp

Dry Matter Intake, kg/d

(Meta analysis 26 studies, Kalscheur 2005)(Meta analysis 26 studies, Kalscheur 2005)

How much distillers can we feed ??

18.6c23.3bc> 30%1.30.8SEM

21.3ab24.2a20 - 30%22.9ab23.9ab10 - 20%23.7a23.6bc4 - 10%20.9b23.5c0%

WetDriedInclusion of DGS

Milk production, kg/d

31.632.2> 30%

2.61.5SEM

31.633.620 - 30%

34.133.310 - 20%

34.033.54 - 10%

31.433.20%

WetDriedInclusion of DGS

(Meta analysis, 26 studies (Meta analysis, 26 studies KalscheurKalscheur 2005)2005)

wet distillers- Max. 20% of ration DM

dry distillers -Max. 30% of ration DM

How much distillers can we feed ??

At 30 % distillers, the rest of the ration needs a minimum of 10% protein!!

If distillers is cheaper than corn:

- will you grow high protein forages ?

Alfalfa ------------------

Corn Silage ------------

Milk Production/cow------

Other Implications of High Distillers Diets

- low in structural fibre.....feed 1.0 Kg straw

- low in lysine......feed a little fishmeal or a protected supplement

- low in starch.....still need some grain to formulate to minimum 20% starch level

- high in phosphorus....no need to supplement and greater pollution potential from manure

Biomass Energy Technologies

2. Biodiesel from Oilseeds- fewer incentives and less activity than

ethanol- some farm based activity but if this takes

off it will be off-farm - cash crop input, not interesting for dairy

- Historically, the oil seed sector has been driven by the value of high protein meal.

- Biodiesel production from soy and canola will shift value onto the oil and away from the high protein meal.

- Distillers is 10-15% fat.......Biodieselproduction from corn distillers would add a higher protein lower energy meal to the market.- Everything Points to expensive energy and cheap protein in future feed supplies

Feeding Dairy Cows, when feed energy is very costly:

- maximize digestibility and intake of high energy forages....brown midrib corn silage.

-minimize wasted grain......feed in more production groups.......top dress on a base TMR.......computer feeders.

Are input costs related to output values ?

- with $450/t soy and $190/t corn 1 kg of pure feed protein is worth $ 0.68 and 1 kg of pure TDN energy is worth $ 0.17

- with $200/t distillers and $190/t corn 1 Kg of pure feed protein is worth $ 0.06 and 1 Kg of pure TDN energy is worth $ 0.24

- It takes 4.21 Kg of TDN to make 1 Kg butterfat and 2.14 Kg TDN and 2.57 Kg protein to make 1 Kg milk protein

Are input costs related to output values ?

Excluding maintenance- with $435/t soy and $190 cornThe cow needs $0.72 worth of feed to make 1 Kg

butterfat and $2.11 to make 1 Kg protein

- with $200/t distillers and $190/t cornThe cow needs $ 1.01 worth of feed to make 1Kg

butterfat and $ 0.67 to make 1 Kg protein

Should you increase milk component value for butterfat and decrease value milk protein?

Ontario Farmer November 27th, 2007

Are Ethanol and Biodiesel Sustainable?

Biomass Energy Technologies3. Bioheat from Shavings and Straw

- In Europe, everything that burns is valued as fuel. Shavings and sawdust have doubled in value in the last 5 years.

- Ontario greenhouses are adopting this technology as well

Sand Beddingless mastitis, lower SCC, no swollen hocks, good grip in the alleys, dry feet, cool in summer, cheaper to build ......and lower bedding costs….. But more labour !! …And Manure Handling Issues !

Biomass Energy Technologies

4. Methane/Electricity from Manure

- At the right price.............................A Great Fit with Dairy Farming for

7 good reasons

1. uses manure as an input.

Manure and other organic materials, liquid or solid are fed uniformly into the sealed digester.

2. You are experienced at feeding anaerobic digesters already !

Potential Biogas Yields

100 200 300 400

m3 biogas/tonne

600

25 36

Liquid cattle manureLiquid swine manure

93 103

155 171

195 202

Fodder beetsGrass

Green maize, dough stageCorn silage, dough stage, high-grain

Grass silage, first cutCorn silage, waxy stage, high-grain

35 39

68 90

291

220 400

469 486

552 600

657

Food waste

Potato mash, freshWhey

Potato peelingsSilage from sugar beet leafs

Brewer`s grain silage

Skimmed greaseMolasses

Waste breadCanola cake, 15 % fat

Waste greaseBaking wastes

Pre-treatment tanks heat organic wastes to 70oC for 1 hour.... a requirement for adding food wastes to an on-farm system.

Requires Certificate of approval from MOE

You need to be able to handle the added manure nutrients

in this 2 stage "mixed" system, the manure is heated via hot water pipes to 30 to 40 o C (Mesophyllic) to encourage bacterial growth and activity.

Hot water from the system that cools the biogas engine that runs the generator

Manure is mixed frequently and overflows from the bottom of stage 1 to stage two, and from the bottom of stage two to the manure storage. Total time in a mesophylic system is 20 days

Biogas released through anaerobic bacterial digestion is 60% methane 40% carbon dioxide. It collects in the top under the flexible gas tight dome. Wooden beams in the gas storage act as a catalyst allowing small amounts of oxygen admitted here to remove Hydrogen sulfide

The biogas fuels the engine/generator (genset) and electricity is fed into the grid. About half the heat from the engine is needed to heat the manure.

Finding a use for surplus heat improves the payback dramatically. Could heat your house, your pool, a greenhouse etc.

Digester Effluent a very different material than liquid manure.

It's not manure...its liquid fertilizer

97% reduction in pathogens

thinner, easier to pump

more available N and P

5. Use as bedding.....not organic.....softer than sand

Economics:

- manure from a 200 cow dairy plus heifers.....8000 m3 or 8000 tonne per year

- produces 48 kW per tonne electricity and 210,000 BTU per tonne heat

- 192,000 kW + 840 million BTU

System will have a 440 m3 digester and 44kW cogenerator running continuosly

Capital cost $4000 to $7000 per kW capacity or $300,000 for this system

Ontario’s Standard Offer Program

• Higher price for energy from renewable or clean sources –• 11 ¢/kWh, basic • 14.52 ¢/kWh for peak power

– Blended price at 8000 hours operation = ~11.9 ¢/kWh• OMAFRA Infosheet Available

• Limit to 250 kW for on farm AD systems in restricted “orange zone

• Possibly higher return if power is used at same time it is produced

• Additional $0.005 from eco-Energy

44 kW x 8000 hours/year =352,000 kWhr

@ 12 ¢ = $42,240 per year

You buy back power while generating without transportation or debt repayment for 6¢, and for 200 cows this saves $12,000 per year.

You also have 100,000 BTU/hr of heat left over. It is worth $0 to $5000 depending on what you can do with it. TOTAL REVENUE: $54,000-$59,000

6. Dairy farms use a lot of electricity !!

Costs : Labour (1/2 hr/day) $3650

Maintenance 7000

Hydro and diesel fuel 6000

Insurance 1000

Operating costs $17650

Net Revenue $36,000 - 41,000

10 year repayment @ 5.5% requires $39,000

Ontario Biogas Systems Financial Assistance Program

$ 9 million funding for biogas systems that utilize at least 75% farm and food materials and manage digestate as a nutrient for crops– 70% funding up to $35,000 for feasibility

studies. – 40% funding for construction the digester

and components. – A maximum of $400,000 per applicant is

available until funds are utilized or until Dec 2009.

– For more details contact: www.ontario.ca/biogas

7. With a well planned system and the grant anaerobic digesters can make you money !!

But......

- there is little experience, everything you do is ground breaking and can be costly

- expertise is focused on big expensive projects, the dairy industry needs a "turn key" 40 Kwsystem for under $200,000 that is suitable for an 80 to 100 cow dairy.

Klaesi Farm– 140 Cow Dairy Herd– AD System since 2003– Scaling up to 100 kW

generator from 50 kW– Just obtained a Certificate of

Approval to receive off-farm materials to blend with manure at a 10% to 25% ratio

– energy yield to doubled from 700 to 1200 kWh per day

BIO ENERGY TRENDS YOU CAN COUNT

- Higher grain prices

- Plentiful, cheap byproduct feeds

- Strong shift in the relative value of feed energy and protein

- Higher costs for organic bedding materials

- Higher purchased energy costs (electricity)

PROBABLE OUTCOMES

- There will be anaerobic digesters on many dairy farms

- Rations focused on high energy forages, brown mid rib corn silage, maybe grasses instead of alfalfa

- Rations will include (wet) byproducts

- There will be more use of sand bedding and digester solids

- Extra nutrients from byproducts and digested food waste will make nutrient management more challenging

More Information

• OMAFRA Information Package– www.ontario.ca/biogas

• Growing the Margins: Energy, Byproducts and Bioproducts for Farm and Food Conference– April 2-5, 2008 in

London, Ontario. – www.gtmconf.ca

New On-Farm Mixed AD Regulations

• Max 5000 m3/year• Max 100 m3 on-site• Max 25% by volume off-farm materials• Of remaining material, 50% must be manure• 3 Lists of Materials (called Schedules)

– Permitted materials - (primarily food processing and pre-consumer food products and byproducts)

– Permitted materials with pre-treatment (70ºC for 1 hour or 55ºC for 20 hours) - (primarily meat plant products)

– Excluded materials

• Option 2– C of A for inputs, but if >50% Ag SourceMaterial Inputs, then digestate treated as Ag Source Material