Fair Oaks Farms. Sustainability Through Poo Power

Transcription

1 Fair Oaks Farms Sustainability Through Poo Power

2 Resource vs Waste Sustainability Do not deplete natural resources Remain profitable Manure USDA data 148 lbs wet manure/cow/day Dry Solids: 19.2 lbs/cow/day Fair Oaks Dry Solids: 17.5 lbs/cow/day (2012) 2

3 Adding Value Reducing Risk Nutrient Trading Nutrient Capture Renewable Energy

4 Fair Oaks Farms Project CO2 Crops Renewable Energy Cow Digester

5 Anaerobic Digestion

6 Pretreatment and Preparation

7 Reusable Recycled Bedding 7

8 Emission and Odor Reduction 8

9 Advanced Heat Recovery Heat recovered from Digestate, Gas Compression, Engine Cooling and Exhaust Heat Recovery

10 Advanced Nutrient Recovery

11 Value Added Fiber Sales

12 Low Nutrient Water 12

13 Renewable Energy 13

14 Biogas Product of the anaerobic digestion of organic matter Component Concentration Methane 55-70% Carbon Dioxide 30-45% Water Vapor 1% H 2 S Siloxane NOx Halogenic Compounds <3500 ppm ppm varies varies

15 Electricity Generation

16 Gas Upgrading Skid (G.U.S.)

17 Biogas Upgrading Commercial Carrier Journal s Innovator of the Year 2012 Nominee for our farm waste to fuel project. RDF generates enough BioMethane to replace 1.5 million gallons of diesel each year

18 Transportation The disconnect between Natural Gas and Transportation Fuel Based on Petroleum = 7.19 Gallons of Diesel = 1000 Cubic Feet of Natural Gas Both = 1,000,000 BTU s

19 Reasons for Producing CNG Low Avoided Price for Electricity High Gas Output Location close to I-65 Dedicated Routes Dedicated Fleets Renewable Credits (RIN s) Tax Credits and Incentives Dairy Industry Commitment

20 Moving Parts Fair Oaks Indianapolis Sellersburg Winchester Murfreesboro

21 Renewable Dairy Fuels Running 20,000+ miles a day on CNG delivering milk through the Midwest Fleet of 42 long-range CNG trucks one of the largest CNG fleets in the US Built two CNG fueling stations for trucks fueling 120k+ DGEs a month On-farm anaerobic digester provides 1.5M DGE of gas a year to station. Project can source gas from local utility when renewable is not available. First agriculture-based CNG projects to be registered with the US EPA s Renewable Fuel Standard. Proprietary and Confidential

22 Fueling Station Start-Up Initial RNG Fueling 9:23AM CDT 10/24/2012

23 Fair Oaks Farm Dairy Fleet - one of the leading CNG fleets with 30M miles 2011: fleet 8.9L ISL G 16M miles 3.1M DGE 5.2 mile/dge 2013: 11.9L ISX G 14M miles 2.3M DGE 6.17 miles/dge Outcomes: Learned to run CNG Learned to maintain CNG Developed close industry partnerships OEMs demonstrated excellent support Proved viability of infrastructure Proved Concept 23

24 Our experience with economics: CNG vs. Diesel Fleet Cost at RDF Fleet Fuel and Maintenance Cost Comparison Diesel CNG Annual Miles 160, ,000 MPG* Fuel Gallons 24,615 25,806 Price/Gallon $3.05** $2.00 Annual Fuel Cost $75,077 $51,613 Fuel Cost Per Mile $0.47 $0.32 Annual Fuel Savings $0 $23,464 Annual Maintenance Savings** $0 $3,200 Net Annual Savings $0 $26,664 Updated March 2015 *MPG diesel to CNG is projected to be 5% less than that of the reference diesel fleets. **Based on avg of EIA 2015 ($2.85) and 2016 ($3.25) projections 24

25 Dairy Leading by Example Goals Serve as a model to show sustainable revenue to producers using AD Demonstrate stewardship and sustainability Position Milk as GREEN FRIENDLY in the eyes of consumers Help achieve industry objectives to reduce GHG emissions by 25% by 2020 Leverage strengths in logistics and dedicated transport First model of long haul CNG Government and Industry can work on new technology

26 RDF Overview

27 Integrated Production Greenhouse Products (Heat & CO2) Retail Store Solid Waste Industrial Food Processing Waste Electrical Production Transportation Fuel Wastes Converted to Value Added Products Farm Waste Nutrient Utilization

28 Questions? Any Questions, Any Time: Obi Ofoegbu, Technical Operations Manager mobile: (312) Proprietary and Confidential

29 APPENDIX

30 Project Financing Sources

31 How does CNG work? Engine Cummins Westport ISX12G ENGINE 4 cycle, spark ignited, in-line 6 cylinder, turbocharged, CAC Displacement 11.9 liter (726.2 cu in) Peak rating: 400 HP, 1450 lb-ft of torque EPA/CARB certified at or below EPA10 emission levels Dedicated natural gas engine Will operate on CNG or LNG Capable of using up to 100% Biomethane Three Way Catalyst after-treatment Engine braking Manual/Automatic Transmission capable 31

32 How does CNG work? Fast-fill station 32