Green Valley Dairy
» See our response to public comments on this project
Green Valley Dairy is an anaerobic digester project in the state of Wisconsin. The project benefits climate change strategies by reducing the amount of greenhouse gases produced in dairy operations, and by reducing the greenhouse gases from the public electricity grid. The farm substitutes fossil fuel-based electricity with clean renewable electricity and substitutes fossil fuel-based heating with waste heat from the electricity generators.
Prior to the project, the manure at this 2,500 cow facility was stored in open lagoons and applied to fields as fertilizer seasonally. Manure in open lagoons decomposes anaerobically and results in large amounts of methane, a greenhouse gas 21 times more potent than carbon dioxide. The sale of carbon offsets helped make a digester system financially feasible, and now manure is instead fed into a digester where the methane is captured and used for energy production.
The project first came online on in April, 2005.
TerraPass funds help ensure an adequate financial return for the project, consistent with the farm management team’s assumptions about carbon offset revenue as part of the project’s financing package.
This project has been verified under the Chicago Climate Exchange offset protocol standards, and the project is currently being verified to the Climate Action Reserve protocol as well.
Project details
The Green Valley Dairy (“Green Valley” or “Project”) opened in 2000 in Krakow, Wisconsin. The farm is run by a management partnership, much of whose expertise lies outside of the dairy industry, and as such is recognized as a progressive, non-traditional senior team.
The dairy is home to 2,500 head of cattle, of which some 2,100 are milking cows. The original manure management system relied on open lagoons, but manure is now managed in a complete mix, mesophilic (95 to 105 °F) anaerobic digester.
The planned hydraulic retention time inside the digester is 25-30 days. The farm is currently using bio-solids — a product of the digester — instead of sand bedding for the cows. The Project is generating electricity and has a backup flare.
Project location
The project is located in Krakow, WI, northwest of Green Bay.
Other social and environmental benefits and costs
Environmental benefits
- Improvement in air quality (e.g., VOC reductions)
- Elimination of odor in surrounding areas, improving living standards both on the farm and in the neighboring communities
- Digester output serves as organic, largely pathogen-free nutrients for use as fertilizer and creates an alternative animal bedding product
Social benefits
- Local employment for construction related to the project, installation of equipment, and operation of the project.li>
- Increasing energy independence for the farming sector. This manifests itself both in longer term low energy costs (extending beyond the crediting period) as well as reduced exposure to price risks in energy markets.
- Continued operation of a dairy farm that brings economic benefit to the local community by improving its economic positioning.
Project’s ability to foster further greenhouse gas emission reductions
- Project developers have pointed out the economic benefits to the community that result in the farm being able to remain open, including use of local farm products and services in the community.
- The Project can be expanded to help manage additional manure.
Project’s environmental and social costs
- The project required construction of a new digester, along with associated consumption of energy intensive goods such as concrete and steel.
- The project’s engine emits small amounts of air emissions typical for a backup gas generator.
Discussion of appropriate use of TerraPass funds
The project is an ideal candidate for TerraPass funds as carbon revenues clearly were a decisive factor in helping a project that significantly and permanently reduces greenhouse gas emissions while achieving a modest financial return.p>
TerraPass considers many aspects of projects before deciding whether to fund them. Here is a summary of key considerations for this project.
Baseline conditions
Before the installation of a digester, the farm stored its manure in open lagoons and applied it to fields as fertilizer seasonally.
Additionality
No regulatory requirements. There are no state, federal, or local regulations requiring the dairy to manage its manure in this manner.
U.S.-based anaerobic digester based projects are widely accepted as additional by analysis of their aggregate economics and adoption profiles. This project meets the eligibility criteria of all the following performance standard protocols: EPA Climate Leaders, California Climate Action Registry, and CCX Offset Protocol. The project has been verified against the standards of the CCX Offset Protocol. At the time of project launch there were approximately 100 dairy digesters in operation in the U.S., out of a total of about 92,000 dairies.1
Barriers to Implementation. As one of approximately 100 digesters in the U.S., this project faced early market and technology barriers. Other alternatives open to the facility, such as continuing open lagoons, were not prevented by these barriers. We have not been made aware of any reasons that continuing operations would face any legal or permit barriers.
Impact of TerraPass funds. A review of the project’s economic modeling prior to operation showed clear expected carbon offset revenues at the time of launch, and the magnitude of carbon offset revenues significantly contributes to making the project economically feasible to the farm owners compared with other investment alternatives.
Better than most. TerraPass seeks projects where the operations have shown good practices and avoided substantial negative impacts. Green Valley Dairy is a well-run dairy with good community relations and many community outreach projects. The farm owners hope this project will encourage greater digester uptake in the state.
Footnotes
Climate Leaders Draft Offset Protocol, October 2006.
