By Blake Jackson
Swine farmers, or anyone with connections to pig farming, now have a new resource to explore the potential benefits of anaerobic digesters on their operations.
Penn State Extension has introduced a spreadsheet-based tool designed to analyze swine farm digesters that produce Renewable Natural Gas (RNG), which can be delivered to the natural gas pipeline network. This tool is available for free download on the Penn State Extension website.
The tool allows farmers to input information about their farm size and operating characteristics to estimate the expected performance of a digester in terms of economic viability.
Understanding these estimates is crucial, as multiple factors influence whether an anaerobic digester is financially feasible.
Key inputs include the volume of manure available, the amount of cropland for nutrient application, and whether land is available to grow winter rye or perennial grass as bioenergy feedstocks.
The tool calculates important performance indicators, including Internal Rate of Return (IRR) with values above 10% considered favorable and Net Present Value (NPV) with numbers above zero seen as positive.
The spreadsheet incorporates nutrient requirements for crops, fertilizer value of digestate, RNG revenue, incentives, and credits, spread across 14 tabs covering cash flow, financing, nutrient balance, and crop budgets.
For those concerned about complexity, the "key inputs and outputs" tab simplifies the process by allowing users to input essential data and quickly view a performance summary.
Developed by Ag Economist Bill Lazarus, the tool offers swine farmers and digester developers a new way to evaluate potential projects. "Adding winter rye to manure is a new approach for Pennsylvania digesters," Lazarus explains. "This may be a useful strategy for making these digesters big enough to be profitable, while incentivizing the growing of winter crops that help protect fields from erosion."
By providing this resource, Penn State Extension empowers farmers to make more informed decisions about anaerobic digesters, supporting both energy production and sustainable nutrient management on swine farms.
Photo Credit: istock-songqiuju
Categories: Pennsylvania, Education, Livestock, Hogs