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Washington

Section 9006 Energy Grant

Outline of Need:
In Lynden, Washington, an Anaerobic Digester was created to convert dairy manure into methane gas. The methane produced is used to fire an electrical generator to provide power for a portion of the dairy’s needs. Through interconnect and power purchase agreements, the excess energy is sold to the local utility through the grid. The project meets criteria for “Green Tags” and is an approved design consistent with the AgStar program. AgStar is a joint program of the USDA, EPA, and DOE designed to encourage the use of livestock manure as an energy source. Additional benefits of the project include the reduction of greenhouse gases, reduction in surface and subsurface water contamination, reduction of odors, and the production of marketable byproducts including soil amendments and bedding material. The ability of the dairy industry to remain economically viable and retain employment in the rural areas is significant.

How Rural Development Helped:
The proceeds of the USDA Renewable Energy Grant for $272,000 and an additional $816,000 contribution from the recipient dairy and 5 neighboring dairies were used to install an anaerobic digester to convert manure from 1500 animals into methane gas.

The Results:
Job creation is not generally one of the attributes of the Renewable Energy Grant Program. However, within the Vander Haak Dairy business structure, there are two FTE positions directly involved in the renewable energy system operation and maintenance. The employees’ jobs on the 5 participating dairies are more secure because as the conversion from animal waste to clean renewable energy has made the dairies less susceptible to environmental regulatory concerns. Additional benefits include lower operating costs and additional revenue streams.