Carbon credits and energy subsidies in economic decision making for CAFO waste treatment
"Released waste into the environment has always had a societal cost. Current issues with swine waste suggest that improved treatment is needed as agricultural production has become more industry-like and also as we now globally value the mitigation of global warming. The current need for and the economic support of advanced waste treatment has converged for animal agriculture, and now improved waste treatment is possible with concurrent economic benefit through alternative energy and carbon emissions. Recent changes have resulted in renewal of interest in anaerobic digestion (AD) technology with methane capture and energy production. An economic model was constructed to evaluate the financial potential of anaerobic digestion for swine waste considering initial investments, the associated costs and new revenue streams of carbon credits, renewable energy credits and electricity sales. Current available subsidies were also taken into consideration. The model was formulated based on case specific inputs and was applied to three case studies in central Missouri. The model inputs were also evaluated by experienced vendors (who have developed similar projects) for validity. The results revealed that the present prices of carbon credits and electricity are not enough to prove the financial feasibility of applying AD technology in all cases without the availability of current subsidies. The endeavor also showed that electricity prices have modest impacts on the corresponding NPV of the project. On the other hand, the carbon credit market projections affect the NPV to a greater degree. Clearly, carbon credit markets may play a pivotal role in widespread development and implementation of the technology. In all the three scenarios the projects were profitable with the presence of the current state and federal subsidies. However, since the subsidies may not be available for many years, high CC and electricity prices are probably needed for future profitability of the technology"--Abstract, page iv.
Myers, Donald D., 1939-2009
Nystrom, Halvard E.
Burken, Joel G. (Joel Gerard)
Engineering Management and Systems Engineering
M.S. in Engineering Management
Missouri University of Science and Technology
xiii, 66 pages
© 2008 Taresh Grover, All rights reserved.
Thesis - Open Access
Library of Congress Subject Headings
Agriculture and energy -- Missouri
Feedlots -- Economic aspects
Sewage -- Purification -- Anaerobic treatment -- Economic aspects
Print OCLC #
Electronic OCLC #
Link to Catalog Record
Grover, Taresh, "Carbon credits and energy subsidies in economic decision making for confined animal feedlot operation waste treatment" (2008). Masters Theses. 4622.