Economic Feasibility Study of Colorado Anaerobic Digester Projects ...

• Compilation of cost and revenue of project-specific data for regional AD projects.
2.3 Data Collection Techniques. Interviews with technology providers and agricultural
operators were conducted in order to determine the scope of the project and the variables
to be included in the economic analysis. Primary financial data used in the enterprise
budget and sensitivity analysis were obtained from agricultural project managers and
technology providers of Colorado and Wyoming AD projects. Non-financial data, including
information on regional policies, were obtained through interviews with technology
providers, state and federal agency professional, agricultural operations managers, subject
matter experts, and legal database reviews.
Secondary data were used to augment the primary data, and to develop a more complete
picture of AD practices in Colorado and the Intermountain West. Sources of secondary data
included public websites like the United States Environmental Protection Agency Ag Star
Program (U.S. EPA AgStar), and regional technical reports, such as the Stewart
Environmental October 2008 dairy industry feasibility study prepared for the Colorado
Department of Agriculture. Data from these and other reports are appropriately
acknowledged and a complete list of sources is provided in the reference section. While a
technical feasibility study was not the primary objective of this economic analysis and
feasibility study, technical data from these and other reports are presented to support
findings from the project.
There are some important limitations to this study, which should be noted. First, the study’s
short time horizon prevented further exploration of a few important topics and the inclusion
of a few important data sources. For example, technology providers and operational
managers both expressed a desire to have a better understanding of available financial
instruments for carbon offsets. Although the Governor’s Energy Office Colorado Carbon
Fund does an excellent job of making information available to the public (and Ms. Susan
Innis was particularly helpful in the preparation of this report), the public craves more
information about this subject than could be summarized in this report. Second, it is also
worth noting that future projects should include interviews with utilities companies to feature
their perspectives on current and upcoming energy programs and potential policies that
have the potential to expand alternative energy practices. Third, the budgeting and
sensitivity analysis models are simply based upon data available. As more data emerge,
these models can be refined and will become more exact.
Economic Feasibility Study of Colorado Anaerobic Digester Projects
Prepared by Dr. Catherine Keske, Colorado State University
August 2009
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