Does converting cow manure to electricity pay off?—Successful renewable energy project detailed in…

Public release date: 13-Oct-2011

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Does converting cow manure to electricity pay off?

Successful renewable energy project detailed in the Journal of Dairy Science

Amsterdam, The Netherlands, October 13, 2011 –Studies have estimated that converting manure from the 95 million animal units in the United States would produce renewable energy equal to 8 billion gallons of gasoline, or 1% of the total energy consumption in the nation. Because more and more farmers and communities are interested in generating renewable energy from farm waste, there is a growing need for information on the economic feasibility and sustainability of such programs.

Now, in a case study published in the Journal of Dairy Science, researchers at the University of Vermont and the Central Vermont Public Service Corporation (CVPS) confirm that it is technically feasible to convert cow manure to electricity on farms, but the economic returns depend highly on the base electricity price; the premium paid for converted energy; financial supports from government and other agencies; and the ability to sell byproducts of the methane generation.

The CVPS Cow Power program assists farms in planning and installing anaerobic digesters and generators to convert cow manure into electricity, and markets the resulting power to its customers. Dairy farms apply for grants from CVPS, government agencies, and other organizations, and draw on their own funds and loans from local banks to install the necessary equipment. CVPS customers voluntarily participate in and agree to pay a premium of $0.04 per kWh for a proportion or all of their electricity use.

"With more than 4,600 CVPS electricity customers voluntarily paying $470,000 in premiums per year, the Cow Power program represents a successful and locally sourced renewable energy project with many economic and environmental benefits," says lead author Dr. Qingbin Wang, a professor in the Department of Community Development and Applied Economics, University of Vermont. However, the study found that because of the huge initial investment of about $2 million for equipment per farm, grants and subsidies from government agencies have been necessary; without them, few dairy farms are able to fund such a system. The price farmers received for their electricity and revenue from byproducts of the system were also critically important.

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CVPS shareholders overwhelmingly approve sale to Gaz Métro

Published Sep 29, 2011

RUTLAND, VT - With virtually no opposition, shareholders of Central Vermont Public Service Corp. (NYSE-CV) have approved the sale of the company to Gaz Métro Limited Partnership in voting that concluded this morning. Gaz Métro is the parent company of Green Mountain Power; CVPS and GMP will ultimately merge into one stronger Vermont company after the sale is completed in 2012.

Shareholders began voting in late summer by phone, mail and Internet, and final votes were cast today at a special shareholder meeting in Rutland. Over 75 percent of the outstanding shares of the company were represented at the meeting, and of those, more than 97 percent voted in support of the $702 million sale.

"This is a critical milestone in the sale process," said CVPS President and CEO Larry Reilly. "The overwhelming support of CVPS shareholders demonstrates the soundness of the agreement and the value it will provide to CVPS's owners, customers, employees and other constituents."

"I am very pleased that CVPS shareholders have accepted our offer and merger proposal, which will create one strong electric utility to help our Vermont customers save hundreds of millions of dollars over the next 20 years by combining CVPS and GMP service areas," said GMP President and CEO Mary Powell, who will lead the new company. "These savings will allow families, businesses and communities to reinvest to strengthen Vermont, which is so important for our economic vitality."

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