. Researchers have developed a new model to help farmers increase their investment in sustainable energy projects. It predicts whether the project will become profitable. This study was published in Waste Management. It presents a technoeconomic optimization model that can be used to determine the best location, capacity and participation levels (cluster sizes) for maximizing economic return on cooperative digesters. Anaerobic digestion is a biological process in which microorganisms degrade biodegradable materials in the absence or oxygen. Mahmoud Sharara (North Carolina State University assistant professor of agricultural and biological engineering) said that converting animal waste into electricity could be profitable for farmers and also produce environmental benefits such as decreasing greenhouse gas emissions. Sharara states that farmers may not always be able to finance such projects and that projects can sometimes prove to be a financially difficult venture for one farm. “A cooperative system of anaerobic digestion will allow multiple farms to make use” Sharara adds. Two of the biggest questions about this type of project is: How do you construct the cooperative system? The researchers also asked how to predict whether the project will prove profitable. According to them, the model takes into account a variety of factors such as the species of farm being raised, their size, and the location of the farms. The model accounts for uncertainty, which makes it stand out. Researchers identified 13 main sources of uncertainty that could affect profitability for an anaerobic digester. Each area of uncertainty is accounted for by the model through repeated simulations. It provides information about which combinations of factors will generate the highest profit. To test the model, two case studies were created based on Wisconsin dairy regions. Sharara states that the case studies provided a solid sanity test and demonstrated the utility and viability of the model. We believe that this model will encourage investment, which is good for farmers as well as the environment. Sharara states that she hopes to collaborate more with developers of anaerobic digestion systems to improve our estimates of costs. “And, ultimately, we’d like to expand our work to account for efforts to use the solids left behind after anaerobic digestion – such as projects that convert these solids into marketable fertilizer.” Journal Citation Mahmoud A. Sharara, Maxwell Y. Owusu-Twum, Troy M. Runge, Rebecca Larson, Planning methodology for anaerobic digestion systems on animal production facilities under uncertainty, Waste Management, Volume 104, 2020, Pages 262-269, ISSN 0956-053X, https://doi.org/10.1016/j.wasman.2020.01.028. Similar Articles: “Why investing in energy storage could make or break your business”
A model shows how farm-based sustainability energy projects can be more financially profitable
