Dairy Cows in New Mexico Ready to Provide a Green - Renewable Energy Resource for Humans

In the last quarter, a new opportunity has presented itself with the prospects of “green” or renewable energy development. With the present emphasis on alternative energy resources in order to diversify the nation’s energy portfolio, along with government targeted subsidies towards such applications under the “Stimulus Package” (ARRA) passed by Congress earlier in the year.

It concerns the prospect of commercial/industrial application of the conversion of dairy cattle manure into “green” (methane) gas for the eventual use of the “green” gas in power plants within the region. The State of New Mexico has announced its intention to become a major “green” energy state under the leadership of its present governor, Bill Richardson. Governor Richardson, most recently a former Energy Secretary in the Clinton Administration has indicated a vision to utilize renewable development opportunities to grow a new type of energy industry, not unlike the way that oil and natural gas were developed in the last century.

New Mexico has the 7th largest dairy operations in the U.S. Dairy and dairy products are a significant contributor to the economy of the State. There is located in southern Dona Ana County, New Mexico, an alignment of 13 dairy operations geographically located next to one another in a single corridor along Interstate 10. These dairy operations have been in existence for over 50 years. They are “open” dairy operations and as such the odor of the dairy and the visual presentation of the dairy cows has long been a “presence” for the local communities. Though they support the dairy operations for their economic benefit, they also have suggestions for improving the visual and sensual offense that these operations generally impose.

Additionally, because, at the time, the cow manure lies on the ground for extended time, the potential for water contamination in the event of storm-water runoff as well as general release of the carbon dioxide with the natural break-down of the manure while on the ground, raise issues for environmental concerns as well. These were not issues when these families began their dairy operations several generations ago.

In Europe, there has been a more active use of digester plants for the purpose of dealing with the cow’s manure. The digester plant takes the manure, considered to be a form of bio-mass and, through a process called “anaerobic digestion” breaks the manure into its two chemical components, methane gas and carbon dioxide. The methane gas has the same properties as natural gas and as such can be used in the same manner as mined and captured natural gas.

In the U.S. the application of digester plants has been limited and generally has focused on using the methane gas to produce electricity by running a micro turbine on site that will address the power and other energy needs of the dairy operation.

There has not been a wide scale commercial application of a digester plant, unlike in Germany and in Spain where such uses, applied by a company called Entec, have been constructed.

Now, in the U.S. given the change in general energy policy to emphasize and promote the development of “green” or renewable resources, and, in the case of New Mexico, a directive to the local utilities that they diversify their energy resource base to include at least 10-15% renewable type energy within the next ten years, the opportunity for a wide scale application of methane gas production from cow manure is manifest. The other advantage that this type of resource has against the more traditional and acknowledged forms of renewable resources, i.e. wind and solar energy, is that this gas is available 24/7, without condition of a natural resource production, as in the case of wind and solar power.

This type of energy production would fit into the category of “bio-gas” and would produce this methane without the need for any burning, since the anaerobic process is a natural breakdown of the manure into its chemically based gaseous components.


The concentration of 50,000 dairy cows within a 5 mile radius in the 13 dairy operations in this corridor, and the presence of 1.5 million tons of cow manure produced annually from these dairy cows, aligns the material to be able to convert the digester plant into a commercial operation, capable of producing enough methane gas to generate 12 MW of electricity in its application.

In addition to the methane gas, the carbon dioxide has uses for algae farms that are being cultivated in the region to produce a bio-based fuel of sufficient quality and capability to power combustion engines that presently run on fossil based gasoline. The algae has the ability to also produce a high grade jet fuel for commercial and defense level applications as well. This is the type of synergy, therefore, that can produce a true bio-fuel based energy industry on a vertical basis. With the emphasis on government policy for diversity in energy resources and the supporting price structures from government subsidies to allow this new type of resource to compete with the lower priced fossil based fuels, the ability to establish a “green” energy resource base is very real.

The digester plant that is being contemplated will require 100 individuals, or new jobs, to run the operation once the full plant is built and completed. The total cost of the operation will be around $74 million. It will be built in 4 segments referred to as “quads” and will consist of the components for the Digester Plant. It will be a fully self-contained plant with all operating systems “under cover” and, because of the process of anaerobic conversion, the elimination of the Hydrogen sulfide (the “sulfur smell” that is associated with dairy operations) will be practically eliminated.

Another key product of the process is a product referred to as “liquid fertilizer” which is the cow manure, digested, and mixed in the water. This product has soil applications for this region that will enrich and extend the life of the soil for other agricultural applications. Further it can be transported to other users, so there is a commercial revenue stream for this product. The algae farm operations, likewise, will make use of this product. The Digester Plant structure calls for a water treatment facility to take the excess water, not otherwise used in the liquid fertilizer production, and converts the “waste” water into irrigation quality water capable of being used by the agricultural demands on the dairy farms or transported to nearby municipal water treatment plants for applications in their own waste water processes. Again, a revenue stream for this type of product is set.

Finally, the dry manure that is part of the dairy operation will be collected and placed in a compost processing pile that will result in a compost quality product similar to peat moss that will present a “soil amendment” that will enrich sandy and clay like soils in the region to sustain the agricultural production of the soil.

This is a very interesting and intense project calling into the process policy, political, community, and investor interests with a collective goal of producing a clean, renewable energy process with several product applications that will address the demands in the region and elsewhere, and resolve an environmental issue associated with the operation of dairy farms, that will address the environmental matters responsibly and produce renewable product that is both sought and required. Aspects of energy industry knowledge, utility experience, and general business planning and execution are required to make this start up opportunity into a key building block of a renewable energy industry operation.