How Dairy Farms Are Converting Cow Manure to Pipeline-Quality Gas: Turning Farm Waste into Revenue

In this week’s episode of GreenTech Pulse, Peter Banigo speaks with Brian Flis, about how dairy farms are turning an age-old problem into a valuable resource and new revenue stream.

From Problem to Profit: The Renewable Natural Gas Revolution on Dairy Farms

For most dairy farms, manure management has always been a challenging aspect of operations. Traditionally, farms pump waste into open lagoons where it sits, releasing methane into the atmosphere while waiting to be used as fertilizer for crops.

But as Brian Flis explains, this waste stream is now becoming a valuable asset through renewable natural gas (RNG) production.

“We take all of the cow poo and urine that comes from the cow barns that normally flows into a lagoon or reception pit,” Flis explains. “Normally that manure would sit in a lagoon and off-gas to the environment… So we are capturing that from those lagoons and putting it into tanks and taking that methane and making pipeline quality gas out of it.”

The result is gas that’s molecularly identical to conventional natural gas but produced from a renewable source—cow manure that’s continuously generated.

How the Process Works

The process begins with capturing the manure that would otherwise go into open-air lagoons:

1. Collection: Manure is directed to anaerobic digesters instead of open lagoons
2. Digestion: Inside these oxygen-free tanks, bacteria break down the organic matter
3. Gas Capture: Methane and carbon dioxide are collected from the digester
4. Purification: The biogas is processed to remove CO₂, hydrogen sulfide, and other impurities
5. Pipeline Injection: The resulting renewable natural gas meets utility standards and enters the natural gas pipeline

After the methane has been captured, the remaining digested manure (digestate) is returned to farmers as an improved fertilizer for their fields.

Multiple Benefits for Farmers

The advantages for participating dairy farms extend beyond a new revenue stream:

1. Steady Additional Income

Farms partnering with LF Bioenergy receive ongoing payments through a profit-sharing model. As Flis describes it: “It’s a nice steady… mailbox money. They get a check.”

While specific numbers vary based on farm size, Fliss emphasizes that for farms with 4,000-5,000 cows, “it is substantial and it is meaningful” to their bottom line.

2. Improved Manure Management

One of the biggest challenges dairy farmers face is managing the sheer volume of manure produced. The RNG process helps solve this problem by providing a structured system for manure handling.

3. Reduced Odor

A significant but often overlooked benefit is odor reduction. “We’ve heard across all of our farms that odors get better,” says Fliss, explaining that capturing gases that would normally create strong farm smells makes the entire operation more pleasant.

4. Better Quality Fertilizer

After going through the digestion process, the effluent returned to farmers actually makes better fertilizer than raw manure. The digestion process makes nutrients more available to plants without the risk of “burning” that comes with fresh manure.

Farm-First Approach

What sets LF Bioenergy apart, according to Flis, is their farm-first philosophy:

“We take a farmer’s first approach and we design our projects around the farm’s dairy operation so we’re having minimal impact on what they’re doing… A lot of our competitors out there put a cookie-cutter project on a farm, maybe ask the farmer to change what they’re doing in the dairy operation to meet the needs of an RNG project. We don’t do that.”

This approach has allowed them to develop solutions for farms that other developers couldn’t help, including sand-bedded operations that present unique technical challenges.

Current Scale and Future Growth

LF Bioenergy currently has five operational projects—three in New York and two in Wisconsin—with 15 more in development. The company works primarily with larger operations (4,000-5,000 cows minimum) where the economics make more sense given the fixed costs of pipeline interconnection and gas upgrading equipment.

However, Flis sees a future where smaller farms can participate too:

“I think that challenge will be solved in the future and we’ll be able to help out smaller farms… I think over the next 10 years, you’re going to see the US being able to help smaller farms as well, and whether it’s making gas or making electricity, it’ll be done. I’m confident in that.”

Environmental Impact

Beyond the business benefits, the environmental advantages are substantial:

• Methane, which is 25-28 times more potent than CO₂ as a greenhouse gas, is captured rather than released
• The resulting RNG produces up to 95% fewer greenhouse gas emissions compared to gasoline and diesel when used as fuel
• Water quality improves as the digestion process reduces potential pollution from farm runoff

Long-Term Partnerships

These projects aren’t quick fixes—they represent long-term commitments. LF Bioenergy typically enters into 20-year agreements with farms, which reflects their confidence in the future of renewable natural gas.

“We’re very bullish on renewable natural gas in the future,” says Flis. “There’s definitely in my mind going to be a need for it going forward. It’s a great renewable energy source. It’s a great win-win for the farms. It’s a great win-win for the environment.”

Getting Started

For farms interested in exploring renewable natural gas projects, Fliss recommends:

1. Talk to multiple developers to find one you trust
2. Take time to do proper due diligence—it’s a 20-year partnership
3. Ensure the developer will design around your existing operations
4. Verify the developer has staying power and won’t sell the project

The timeline from initial conversation to gas production is typically around two years, with approximately 6-12 months for engineering and planning, followed by about a year for construction.

The Future of Farm-Based Renewable Energy

Flis and his team see tremendous potential for growth, especially as technology improves and costs decrease. They’re also exploring capturing the CO₂ that’s currently vented during the process, potentially creating yet another valuable product from what was once considered just waste.

As farms continue to face economic pressures and climate concerns grow, renewable natural gas represents a practical solution that addresses both challenges simultaneously—turning an environmental liability into an asset.

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Interested in learning more about renewable natural gas projects? Contact Brian Flis directly.

Listen to the full episode of GreenTech Pulse to hear more about how dairy farms are turning waste into renewable energy and new revenue streams.