8.0 MW Biogas Power Plant Nets Positive Cash Flow of $13 Million Over 15 Years

Location: Plainwell, MI

Industry: Protein Production

Onsite Power Generation Offsets Utility-Derived Energy During On-Peak Hours

Ally recently partnered with a major global protein producer to construct an onsite power generation plant at their Plainwell, Michigan facility. The plant utilizes biogas produced onsite and upgraded generators that provide a 90% reduction of key pollutants to ensure the plant complies with Michigan carbon monoxide (CO) atmospheric release regulations.

Ally Tariff Experts Design Project for Maximum Economic Benefit

Though the plant can provide for 100% of the facility’s electricity needs, to get the highest cost savings benefit, it is currently being used as a “peaker-plant,” providing energy in conjunction with power from the local utility. The plant supplies power during the utility’s peak pricing hours.

Project Benefits

• The plant provides 100% energy security in the event of a power outage.
• If tariff or grid economics change, the plant output schedule can be adjusted as necessary for full financial benefit.

Project Funding

• 30% Biogas Federal Investment Tax Credit (ITC)
• PACE (Property Assessed Clean Energy) Funding Structure
  • The loan is repaid as an assessment on the property tax bill.
  • The loan is attached to the property as opposed to the property owner.
  • Loan interest is tax-deductible as a business expense.

“Because of Ally’s unique tariff expertise, we were able to identify maximum economic benefits. The combination of the biogas tax credits, PACE funding, and peaker-plant operational strategy delivered economics that far exceed what is customary for these types of projects.”

–Troy Knight, Vice President Distributed Energy Resource, Ally Energy