About STAC

Project Information Center

Hydrogen Education

Previous Solicitations

News

Presentations

Contact

Home

STAC

Project Information Center

STATEMENT OF WORK

Project Title:

Distributed Energy Resources – Expanding DER Applications in Targeted Markets

Contractor:

New Mexico Energy, Minerals, and Natural Resources Department (EMNRD)
Energy Conservation & Management Division (ECMD)
1220 South Street, Francis Drive
Santa Fe, NM 87505
(505) 476-3314

Program Area:

Distributed Energy Resources

Partners:

Texas State Energy Conservation Office (SECO)
New Mexico State University (NMSU)

Project Description:

Design, construct, operate, and evaluate a two-phase bio-fermentation system to convert carbon in dairy manure to methane, produce electricity for on-site use, interconnect to the local utility, sale excess power to the grid, and evaluate the reuse of the resulting solids as beneficial soil amendment. The project will also examine the economic viability for the replication and implementation of such systems in both New Mexico and Texas and develop financing alternatives to be used by the agricultural industry.

Management Plan (Approach):

The unique nature of STAC requires that projects be supported by multiple State entities, and to the extent necessary any other entity. As indicated in the STAC Agreement, it is the Contractor’s responsibility to coordinate the execution of work under the Contract, incorporated by reference hereto. Contractor, in conjunction with the other State entities, and to the extent necessary any other entity, shall conduct the project in accordance with the Management Plan (approach) described below.

The State of New Mexico is the contractor and will serve as the lead state in this joint work effort among New Mexico, Texas, and New Mexico State University. Rene Parker of the Energy, Minerals and Natural Resources Department will serve as the project manager. Program management, including financial and subcontracting, will be provided through the New Mexico Energy Conservation and Management Division with support and consultation provided by the Texas State Energy Conservation Office. New Mexico will negotiate a Governmental Services Agreement with New Mexico State University. The majority of the work will be completed by NMSU and approved subcontractors selected through a competitive process. However, professionals who have made a commitment to provide in-kind services will complete several tasks. An Advisory Board will be organized and an on-site project manager identified. The Advisory Board will meet on a bi-monthly basis to address issues and/or receive updates of the project.

Task 1: Form Advisory Board

This group will be formed and hold an initial meeting within one month of project start. Additional members will be added as recommended by the Board. A subgroup will be organized to conduct public outreach on the results of the project.

Task 2: Energy and Pollution Assessment

An energy and pollution assessment will be conducted of the dairy to determine its current heat and power needs and recommendations for improving overall system operation.

Task 3: Preliminary Economic Analysis

A preliminary economic analysis will be conducted of the project. Data will be gathered and analyzed on the current dairy operations, related capital costs, available incentives, and payback period.

Task 4: Permitting

Steps will be taken to obtain the necessary permits from state and local government. The primary agency will be the air and water quality bureaus of the New Mexico Environment Department. The intent is to develop a step-by-step process for permitting biomass to energy projects. Each step of the process will be documented.

Task 5: Bi-phasic Anaerobic Digester

The contractor and partners will design, procure equipment, begin construction, start-up, and operate a bi-phasic anaerobic digestion facility located at a site in southern New Mexico.

Task 6: Creation of Biogas and Electrical Generation

A high quality gas (70-85% methane) will be produced for use in an engine-generator set for combustion and generation of electric power. The power produced will be provided to the site. Excess electricity may be sold to the local utility.

Task 7: Interconnection

Discussions will be held with the local utility, El Paso Electric, regarding interconnection and power purchase agreements. Data will be gathered on every step taken during the process.

Task 8: Compost and Pathogen Destruction

Digester residual will be evaluated for use as compost in the local greenhouse and agricultural industry. The anaerobic digester’s effectiveness in destroying pathogens in the manure will be evaluated. This analysis will also include an economic evaluation of the compost and its suitability for being marketed regionally and nationally as a high quality soil amendment.

Task 9: Commercial Assessment, Greenhouse Gas Credits, Tax Credits, and Carbon Management

The commercial benefits of the biomass system will be evaluated. An assessment will be made of each potential savings or revenue stream, including energy cost avoidance or revenue, renewable energy tax credits, renewable energy revenue incentives, and Greenhouse Gas Emission Reduction Units. The obstacles to realizing each benefit will be identified along with the commercial solution to these obstacles.

Task 10: Public Outreach

This task will focus on the distribution of pertinent results from the project and an economic analysis to the agricultural community through the New Mexico Agricultural Extension Service, and to the general public through periodic news releases. Also, two regional workshops will be organized and conducted, extension publications will be written and distributed, and internet exposure through the WERC web site will be utilized.

Project Tasks, Status, and Deliverables

Last Updated: 10/24/06