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CA has adopted legislation setting goals for reduction of methane emissions in the state by the year 2030 and creating an array of incentives to build and operate ADs — the strongest combination of incentives for rapid development and sustained use of ADs by any state in the nation.

Our technology, the iBioBooster (or “iBB system”), offers the ability, demonstrated in a half-dozen projects in Italy and China, to increase biogas production with higher methane content yielding an increase in total methane capture on the order of 8-28% in a range of types of ADs.

That increment in total methane capture not only will assist California to meet its 2030 methane emission reduction goals, but also immediately will yield an identifiable increase in AD-generated revenues for AD owners and operators.

California’s highly evolved, integrated, and mature Methane Reduction program, with its multiple incentives, make it logical to begin demonstration and deployment of iBB Systems in this state.

Learn More About State and Federal Incentives Supporting Use of Anaerobic Digesters

The State of California.

California has adopted legislation setting goals for reduction of methane emissions in the state by the year 2030 and creating an array of incentives to build and operate anaerobic digesters — the strongest combination of incentives for rapid development and sustained use of anaerobic digesters by any state in the nation.

Of particular importance is the California Air Resources Board’s https://ww2.arb.ca.gov/ Low Carbon Fuel Standard (LCFS) program designed to encourage the use of low-carbon transportation fuels in California and encourage their production, thereby reducing greenhouse gas emissions and decreasing petroleum dependence in the transportation sector. Marketable LCFS credits are available for anaerobic digester-produced methane used for transportation fuel or for generation of electricity used by electric vehicles, including methane produced at out-of-state digesters but transported to California via gas pipeline for such uses in the state.

Income from sale of LCFS credits therefore is another key source of income for owners of anaerobic digesters, in addition to the revenues from sale of the methane or electricity.

Our technology, the iBioBooster (or “iBB system”), offers the ability, demonstrated in a five projects in Italy and China, to increase biogas production with higher methane content yielding an increase in total methane capture on the order of 8-28% in a range of types of anaerobic digesters.

That increment in total methane capture not only will assist California to meet its 2030 methane emission reduction goals, but also will yield an identifiable increase in revenues for digester owners and operators. This will allow an iBB System to pay for itself in brief initial years of operation, producing profits thereafter.

California’s highly evolved, integrated, and mature Methane Reduction program, a key element of California’s Climate Policy and Climate Investment Portfolio, with its multiple financial incentives, make it logical to begin demonstration and deployment of iBB Systems in California.

Federal Incentives

  1. U.S. EPA Renewable Fuel Standards and RINs Credits. The Energy Policy act of 2006, as amended by the Energy Independence Act of 2007, established the U.S. EPA’s Renewable Fuel Standard (RFS) program. The program furthered a national policy requiring that a certain quantity of petroleum-based transportation fuel, heating oil, or jet fuel be replaced or removed annually by a certain volume of renewable fuel of specified qualifying types.

    Under the RFS program, U.S. EPA awards credits for certain renewable fuels that can be used to displace fossil-based fuels in the transportation sector. The credits are called Renewable Identification Numbers (RINs). RINs are assigned to each qualifying batch of renewable fuel. RINs credits can be sold by the RIN credit holder to refiners or importers of gasoline or diesel fuel obligated to meet EPA-specified requirements for blending of renewable fuels into U.S. transportation fuels.

    A renewable fuel-type qualifying for RINs is “cellulosic biofuel”, which includes, among other renewable biofuels, methane for renewable natural gas, generated by anaerobic digesters processing animal manure and crop residues.

    Cellulosic Biofuels are in the RINs D3 category, the credits for which have a higher value than many other qualifying renewable biofuels. Accumulation and sale of RINs credits can provide a source of revenue to anaerobic digester owners supplementing revenues from sale of the methane, sale of California LCFS credits, and sale of electricity generated using the methane.
  2. Inflation Reduction Act of 2022 (IRA). Signed into law on August 16, 2022, the IRA includes significant incentives for development of anaerobic digesters. The American Biogas Council has summarized the importance of the IRA to accelerating development of biogas systems:

    “Before this bill, our industry had only benefitted from short one- to two-year extensions of a tax credit that served one sector of the biogas industry. While trying to attract investment to projects that take years to build and competing with other industries with long-term tax credits, this was not a long-term solution. For the first time, this bill gives developers and financiers certainty and a competitive edge that will fuel growth of the biogas and clean energy industries for years to come.

    “While the U.S. has 2,300 operational biogas systems, only about 15 percent of the potential for the biogas industry in the country has been realized…

    “For the first time, the system of tax credits in the bill supports all biogas sectors: wastewater, farm, food waste, and projects that produce renewable electricity, renewable natural gas, and renewable heat. Plus, the additional $1.965 billion to support the existing Rural Energy for America Program (REAP) will help our industry work with agriculture to increase sustainability and productivity.”

    https://americanbiogascouncil.org/american-biogas-council-applauds-passage-of-inflation-reduction-act-and-historic-investment-in-clean-energy/
Learn More About California’s Methane Reduction Program Background

The California State Legislature Has Created a Comprehensive Program of Mandates and Incentives for Methane Reduction, Now in its 15th Year; An Opportunity for BTE-CA, LLC

In 2006, the Legislature passed California’s Global Warming Solutions Act (AB 32, Pavley, Chapter 488), which requires California to reduce its greenhouse gas emissions to 1990 levels by 2020—a reduction of approximately 15 percent below emissions expected under a “business as usual” scenario.

The AB 32 Scoping Plan also established the Cap-and-Trade program, which in turn funds the California Climate Investments program and several CalRecycle grants.

In 2011, the Legislature and Governor Brown set an ambitious goal of 75 percent recycling, composting, or source reduction of solid waste by 2020, calling for the state and CalRecycle to take a statewide approach to decreasing California’s reliance on landfills (AB 341, Chesbro, Chapter 476).

AB 341 also established mandatory recycling for most California commercial businesses and multi-family residential buildings with five or more units. This represents the next evolutionary phase of waste management in California: an approach that makes current landfill diversion programs equal partners with materials management program to achieve the highest and best use of all materials in California.

IN 2016, Governor Brown signed SB 32, which expanded upon AB 32 by requiring a reduction in greenhouse gas emissions to 40 percent below the 1990 levels by 2030.

In September 2016, Governor Brown signed SB 1383 (Lara, Chapter 395), establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP) in various sectors of California’s economy. As it pertains to CalRecycle, SB 1383 directs California to reduce the statewide disposal of organic waste, as landfilled organic waste emits methane gas and contributes to climate change.

https://calrecycle.ca.gov/aboutus/whatwedo/

On July 17, 2017, both houses of the California State Legislature passed AB 398 with a two-thirds majority vote, authorizing the California Air Resources Board to continue to operate a cap-and-trade system to help achieve these reductions.

The California Market for Anaerobic Digesters and iBB Systems Is Still Growing

Estimate: 387 Anaerobic Digesters Currently Are Operating or Are in Development in California

California Anaerobic Digesters

Described broadly, there are three types of anaerobic digesters in California that represent possible iBB System “project targets”:
On-Farm Dairy Anaerobic Digesters (236)

According to California Dairy Industry information (last updated October 2022) https://www.dairycares.com/dairy-digesters:

  • Dairy digesters are providing the largest greenhouse gas reduction of all investments in California’s climate action portfolio.
  • In total, California has 236 dairy digester projects, capturing methane from 254 dairy farms, and creating either renewable electricity, renewable natural gas, or hydrogen fuel.
    • California is home to 17 “clusters” of dairy digesters in various stages of development. Clusters are groups of digesters that share a centralized gas cleanup facility, where the captured dairy biogas is upgraded and then injected into natural gas pipeline, so it can be used as carbon-negative transportation fuel. This is known as a “hub and spoke” model. A total of 214 dairy farms are currently planned to be included within the 17 developing clusters.
    • Additionally, another 40 California dairy farms have digesters (operating or in development) that are not a part of a cluster.
  • The California Dairy industry represents that, through the development of dairy digesters alone, California dairy farms will soon be reducing releases of greenhouse gases by a total of more than 2.2 million metric tons (CO2-equivalent) per year.
    • Bio-Tronic Energy-CA iBB Systems – Based on (1) the DairyCares estimate of 2.2 million metric tons of CO2e/year, and (2) iBB Systems’ performance to date in improving methane capture in the range of 8-28% at five commercial-scale applications:

IF iBB systems were added to every dairy digester included in the DairyCares projection, these further reductions of methane releases could be achieved:

Range of + Metric Tons (MT)/Yr By Adding iBB20-Yr Total (iBB)
+ 5% methane capture – 110,000 MT CO2e/yr
2,200,000 MT CO2e
+ 10% methane capture – 220,000 MT CO2e/yr
4,400,000 MT CO2e
+ 15% methane capture – 330,000 MT CO2e/yr
6,600,000 MT CO2e
+ 20% methane capture – 440,000 MT CO2e/yr
8,800,000 MT CO2e
Water Resource Recovery Facility (WRRF) Facilities in California Using On- or Off-Site Anaerobic Digesters (159)

In California, anaerobic digestion has established a strong presence in the Municipal Waste Water Resource Facility sector.

159 WRRFs in California either have anaerobic digesters or send solids to be treated by anaerobic digestion at another facility. Digested wastewater solids are producing biogas for electricity or heat in digesters onsite or at a 3rd party site.
Source: http://www.resourcerecoverydata.org/biogasdata.php

Anaerobic Digesters Accepting Organics from Municipal Solid Waste Streams (34)

In California, anaerobic digestion has established a strong presence in the Municipal Solid Waste Stream and Co-Digestion sectors:

Stand-Alone Anaerobic Digesters (22)

As of May 2021, 11 Stand-Alone Digesters were operational, 9 more were pending, and 2 were inactive.

Co-Digestion Anaerobic Digesters (12)

[e.g., food waste, food and green waste, fats/oils/grease (FOG), sewage sludge, manure].

As of May 2021, 4 Co-Digestion Anaerobic Digesters were operational and 6 were pending; 1 was inactive.

Source for Stand-Alone Digesters and Co-Digestion Digesters:

https://www2.calrecycle.ca.gov/Docs/Web/115971

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