Economics, Feasibility, & Policy

Economics Relating to Anaerobic Digestion

The economics of anaerobic digestion (AD) systems vary widely and depend upon many variables. The consistent issues that arose in New York are:

• Electricity prices paid to producers do not allow for economic viability for the AD system
• Cost estimates for projects have sometimes been unrealistic
• Tipping fees can offset the operational and management costs of the AD system
• Lenders may be unfamiliar with the complexity of AD systems

Economic Resources

• Estimating the Economic Value of the Greenhouse Gas Reductions Associated with Dairy Manure - Peter Wright and Curt Gooch (2017​​​​)
• Inputs for Biogas Economic Assessment - Brent Gloy (2008)
• Creating Renewable Energy From Livestock Waste Overcoming Barriers to Adoption - Brent Gloy (2008)
• Economic Analysis of Anaerobic Digestion Systems and Financial Incentive - Brent Gloy (2008)
• An Economic Comparison of Two Anaerobic Digestion Systems on Dairy Farms - Peter Wright and Scott Inglis (2003)

Feasibility of Anaerobic Digestion Systems

Before constructing and operating an anaerobic digester, it is best to first ensure that the process is feasible for the farm.

Feasibility Resources

• Small Farms AD Report - Tim Shelford and Curt Gooch (2012)
• Feasibility Study of Anaerobic Digestion in Salem, NY - Kimberly Bothi and Brian Aldrich (2005)
• Feasibility Study of Anaerobic Digestion in Perry, NY - Kimberly Bothi and Brian Aldrich (2005)
• Feasibility Studies of Anaerobic Digestion Presentation - David Ludington - DLtech, Inc. (2004)
• AD Performance Goals: AD Effect on System Components and Costs - Curt Gooch and David Ludington (2005)
• Combining Anaerobic Digestion and Hydrothermal Liquefaction in the Conversion of Dairy Waste into Energy: A centralized Case study for New York State - Nazih Kassem (2018)

Policy Relating to Anaerobic Digestion

The policy that both supports and governs anaerobic digestion can be confusing to navigate. On this webpage, we have listed resources to help understand these topics.

Policy Resources

• California Low Carbon Fuel Standard Carbon Intensity Applied to New York State Dairies - Lauren Ray and Peter Wright (2022)
• Monetizing Electricity Produced by Farm-Based Anaerobic Digestion in New York - Lauren Ray and Curt Gooch (2020)
  • Part 1:  Decision tree to identify electricity tariff options available
  • Part 2:  Compare and contrast electricity tariff options
  • Part 3:  Overview and eligibility guidelines of Net Energy Metering and Phase One Value Stack electricity tariffs
  • Part 4:  How the Net Energy Metering (NEM) tariff works
  • Part 5:  How the Phase One Value Stack tariff works
• Meeting New York State's Energy, Environmental and Economic Goals While Strengthening Dairy Farms Through the Widespread Adoption of Manure-Based Anaerobic Digestion Technology - Jennifer Pronto, Curt Gooch, and Peter Wright (2017)
• New York State Remote Net Metering - Jennifer Pronto and Curt Gooch (2012)
• NYS Public Service Commission Standardized Interconnection Requirements