Anaerobic Dairy Digester Converts Methane to Renewable Natural Gas in Merced County

Vander Woude Dairy, a family-owned and operated business in Merced, California, has taken significant strides in sustainable agriculture by implementing a covered lagoon digester for methane capture. Established as a partnership in 2005, the dairy is now predominantly owned by Simon and Christine Vander Woude, who oversee 3,200 Holstein milking cows and 1,750 acres of farmland. In October 2020, Vander Woude Dairy began construction on a covered lagoon digester, part of the innovative Merced-South Cluster developed by Maas Energy Works. The digester became operational in November 2021, marking a new chapter in the dairy’s commitment to environmental stewardship.  

The project, funded with over $1.8 million from the Dairy Digester Research and Development Program (DDRDP) through California Climate Investments (CCI) and an equal amount of matching funds from Vander Woude Dairy, cost $3.7 million. “The State of California’s proactive support of programs like the Dairy Digester Research and Development Program was instrumental in helping our project get off the ground. Our family run dairy has made consistent environmental improvements over the years, but we were hesitant to take the leap on a large investment in a digester system when the technology was still emerging.  CDFA’s partnership with us and our neighbors helped us take the financial leap and their program has proven to be one of the most effective at enhancing the environmental sustainability of the California dairy industry in recent years,” said Simon Vander Woude.  

Biogas Upgrading Hub, Merced

CDFA forecasted that the digestor to reduce greenhouse gas emissions by around 18,800 metric tons of CO₂ equivalent (MTCO₂e) annually. However, the most recent 12-month data reveals that the dairy exceeded expectations, achieving nearly 24,000 MTCO₂e in reductions and injecting over 73,000 MMBTU of gas into the pipeline. The R-CNG produced by the Vander Woude Dairy Digester is injected into the utility pipeline to be used in large vehicles, qualifying it for credits under the state’s Low Carbon Fuel Standard (LCFS). These credits incentivize the production and use of low-carbon fuels, providing an additional revenue stream that supports the project’s economic viability while reducing greenhouse gas emissions in the transportation sector. These outcomes underscore the digester’s efficiency and its critical role in advancing California’s climate goals. 

The Vander Woude Dairy Digester project is a model of sustainable economic development. Utilizing guidance from the Sacramento Regional Research Institute (SRRI), the project created 44 jobs—27 direct and 17 indirect—during its construction phase. These positions spanned various industries, including construction, operations, and related services, contributing an additional $825,858 in economic output for every $1 million spent. 

Moreover, the project team partnered with Proteus Inc., a nonprofit dedicated to empowering disadvantaged communities in the San Joaquin Valley. Proteus facilitated local hiring, ensuring that 85% of piping contracts were fulfilled by residents near the project site. Training programs specific to renewable energy provided opportunities for individuals to develop skills aligned with California’s greenhouse gas reduction goals. 

Merced Hub, pictures is Tommy Souza, Plant Operator

“For our family farm, ‘sustainability’ means doing more with less. Our dairy is the host of a hub-and-spoke model of methane digesters in Merced County, and all the dairies that send their gas to this hub are family farms. My wife, children, and I are laser-focused on efficient operations, producing milk with less impact to our climate,” said Simon Vander Woude. 

By aligning with state and regional initiatives, the Vander Woude Dairy Digester embodies California’s vision for a sustainable agricultural future. Its innovative approach not only satisfies the need to reduce greenhouse gas emissions but also fosters economic growth and empowers the local community, setting a benchmark for dairy operations nationwide. 

First of Its Kind Fuel Cell Project Generating Electricity from Dairy Waste in Fresno County 

Bar 20 Dairy, a Shehadey family-owned and operated business in Fresno County, received $3 million in funding from the state incentive Dairy Digester Research and Development Program (DDRDP) in 2019, to implement a dairy digester to capture methane. The California Bioenergy dairy digester and Bloom Energy fuel cell technology have been installed at Bar 20 Dairy and are now capturing methane and generating renewable electricity without combustion.  

California Department of Food and Agriculture Secretary Karen Ross speaking at the Bar 20 ribbon-cutting ceremony.
California Department of Food and Agriculture Secretary Karen Ross speaking at the Bar 20 ribbon-cutting ceremony. 

“When I was young, my grandfather told me that we make milk for people’s children,” said Steve Shehadey, owner of the dairy farm. “That has always stuck with us on the farm. We can’t offer anything but our best to the children and the families who buy our milk. Today, that also means doing what we can to help clean the San Joaquin Valley air and to be part of a climate solution.”  

Gas treatment equipment at Bar 20.  

Data collected over the year after its implementation show that the installation of a dairy digester has helped the dairy cut emissions by nearly 374,390 metric tons of CO2 equivalent.  This first-of-its-kind fuel cell technology is powering BMW electric vehicles throughout California providing clean power to over 17,000 EVs per year, as well as an onsite microgrid for dairy operations. This new innovative technology provides critical methane reductions to help the state meet its climate goals and provide local air quality benefits while furthering the State’s ambitious clean transportation goals.  

Fuel cell array at Bar 20. 

“Digesters are a great solution to address climate issues in California. This project would not have been possible without the DDRDP grant. The dairy is now working with H2B2 to provide additional dairy biogas to produce renewable electricity that is used in the production of hydrogen transportation fuel”, said Steve Shehadey, owner of the dairy farm. 

The Shehadey’s consider this project to be one of several ongoing investments in climate-smart dairy farm practices. The dairy also continues to adopt new strategies to ensure the best possible animal health and comfort.  In 2020, the dairy began implementing an electric feed mixing system that significantly reduced the use of diesel for daily activities, to improve air quality. Barns are lighted with 100 percent LED bulbs, and electricity needs are offset by a two-megawatt, on-site solar array. By supplying milk to the Producers Dairy Foods plant, the farm provides fresh milk daily that helps nourish local communities.