N.C. hog farms to produce electricity

January 1, 1970

BY Kris Bevill

Web exclusive posted April 11, 2008 at 3:50 p.m. CST

Swine farm operators in North Carolina can now register to participate in a methane capture pilot program. North Carolina is the second largest hog producing state in the country; in 2006, hog populations topped 9.5 million.

Members of the swine industry first voiced interest in methane-capture programs to state legislators which spurred legislation requiring a percentage of renewable energy to be generated by methane from hog farms.

The Swine Farm Environmental Performance Standards Act of 2007 authorized a methane capture pilot program that will allow up to 50 swine farm operators to sell electricity generated from methane held in onsite lagoons. The program was passed by the state senate in July 2007 as part of Senate Bill 1465.

Implementation of the program will be coordinated by North Carolina's soil and water conservation division and the state utilities commission. The soil and water division will manage the program's registry. David Williams, the division's chief of non-point source programs, said over 250 swine farm operators have registered for the program since it opened on March 10.

The incentive for swine farmers to participate is the opportunity to profit from the kilowatt hours of electricity that can be sold back to the utility companies. The swine farm law authorizes participants to sell electricity generated from the methane produced on their farms at a higher rate than normal. Typical co-generation electricity rates average about two or three cents per kilowatt hour, according to Williams. "These projects are generally not economical at that type of return rate," he said. "As the cost increases those programs become more economical. It still comes down to a negotiation between the utility provider and the hog farmer as to what [the utility company] will pay, but the utilities commission sets the rates and has to offer enough for farmers to at least break even." The cap on rates paid for methane-generated electricity is set at 18 cents per kilowatt hour.

Criteria for choosing which farm will participate in the program haven't been set, and so far, no closing date has been announced for registration. "The plane's flying and we're still building it," said Williams.

"I think the momentum is really building," said Williams, adding that increased interest in renewable energy has led to private companies also working with swine farmers to generate electricity from methane.

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