Public Commentary: The content below presents our perspective on anaerobic-digestion and manure-management carbon projects. It is supplied for informational purposes only and does not constitute investment advice or a solicitation.
AD & MDM Carbon Projects – Anaerobic Digestion & Manure Management
Livestock operations are material sources of methane, a greenhouse gas with a global-warming potential significantly higher than carbon dioxide. By installing anaerobic digesters, covered lagoons, and advanced manure-management systems, producers capture this gas, convert it to renewable energy, and generate high-integrity emission reductions. Our advisory team integrates technical diligence, structured finance, and reliable credit-placement to monetise these opportunities while enhancing on-farm sustainability.
Project Scope
• Continuous Stirred-Tank Digesters (CSTR):
Suitable for large-scale dairy and swine installations.
• Covered Lagoon Systems:
Cost-efficient solutions for warm-climate facilities with high effluent volumes.
• Plug-Flow Digesters:
Designed for scrape-based manure collection at dairy operations.
• Biogas Upgrading:
Compression, drying, and membrane or PSA purification for pipeline-quality RNG.
• Nutrient Recovery:
Fiber separation and ammonium removal enhancing circular-economy credentials.
Advisory Framework
1 | Feasibility & Baseline Analysis
• Herd-size assessment, volatile-solids calculations, and laboratory BMP testing.
• Baseline emissions defined under methodologies AMS-III.D, AMS-III.H, or applicable Article 6 rules.
2 | Capital Structuring
• Senior project debt, subordinated facilities, and sponsor equity balanced against RNG offtake and credit-issuance profile.
• Advance credit purchase agreements bolstering debt-service coverage.
3 | Engineering Oversight
• EPC tender evaluation, performance-guarantee negotiation, and construction monitoring.
• Interconnection studies for electricity export or pipeline injection.
4 | MRV & Certification
• Continuous biogas flow-metering, methane-content analysis, and periodic third-party verification.
5 | Credit Monetisation
• Long-term offtake with compliance entities or voluntary buyers; spot sales facilitated post-issuance.
Indicative Financial Parameters
| Metric | Dairy Digester | Swine Digester |
|---|---|---|
| CapEx (USD / tCO 2 e annual reduction) | 25 – 45 | 30 – 55 |
| Annual Emission Reductions (tCO 2 e) | 8 000 – 40 000 | 5 000 – 25 000 |
| Forward Credit Price (Year 0, USD / t) | 9 – 13 | |
| Target Equity IRR (post-tax) | 14 % – 18 % | 15 % – 19 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Project Debt | Pledge over digester assets and energy-offtake agreements | SOFR + 275 – 350 bps | Agri-infrastructure lenders, development banks |
| Subordinated Loan | Second-ranking charge; cash-sweep covenant | SOFR + 475 – 625 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract with make-good provisions | Fixed price USD 10 / t | Compliance buyers, corporate sustainability desks |
| Sponsor Equity | Residual cash flow | Target IRR 14 % – 19 % | Dairy or swine operators, project developers |
Stakeholder Benefits
- Producers: Diversified revenue via energy sales, nutrient by-products, and carbon credits.
- Credit Purchasers: High-integrity avoidance credits linked to methane-pledge objectives.
- Investors: Predictable cash flows supported by contracted RNG or electricity offtake.
- Communities: Odour reduction, improved water quality, and employment opportunities.
Engagement
Organisations considering an anaerobic-digestion or manure-management initiative are encouraged to contact our advisory team. We would be pleased to discuss feasibility assessments, financing structures, and long-term project governance.
This document is provided for informational purposes only. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information herein.
