CSANR > Resources > Anaerobic Digestion > Costs, Incentives, and Energy Markets

Costs, Incentives, and Energy Markets

The economics of anaerobic digestion depend on both costs and the ability to generate value from multiple outputs.

Major costs

Capital costs for design, construction, and equipment
Operating costs, including labor, maintenance, and energy use
Ongoing repairs and system upgrades

Potential revenue streams

Sale of electricity or renewable natural gas (RNG)
Carbon credits or other environmental incentives
Sale or use of fiber, nutrients, or other co-products
Cost savings from improved manure management

Explore Topics

How Anaerobic Digesters Work
Benefits and Tradeoffs
When Digesters Make Sense
Types of Digesters
Costs, Incentives, and Energy Markets
How Digester Projects Get Built
Examples from Dairy Farms

In many cases, energy revenue alone is not enough to support a project. Successful systems often rely on combining multiple revenue streams and incentives.

Energy markets and policies vary by region and change over time. Project viability depends on local conditions, available programs, and long-term price stability.

Resources

These WSU Extension publications discuss how to determine whether building an anaerobic digester and associated technologies makes sense for your operation:

Completing a Successful Feasibility Study for an Anaerobic Digestion Project (2018)
Explains how feasibility studies help farmers, developers, lenders, and other partners evaluate technical, financial, market, management, and permitting considerations before moving forward with a digester project.
Anaerobic Digester Project and System Modifications: An Economic Analysis (2015)
Summarizes major costs, revenue sources, and economic tradeoffs for different dairy digester system configurations, including combined heat and power, boiler, and renewable natural gas systems.