Serbia Plugs Into Cow Power

In the past, I would speed up when driving by a farm. The only thing I could think of was the awful smell that made me hold my breath. Now, I slow down and think of endless supplies of clean energy, thanks to a USAID project that is helping convert manure into renewable energy– all the while, banking on American industrial expertise.

On one farm in Blace, a town of 11,000 people in southern Serbia, 700 cows produce thousands of gallons of manure each day. But this farm’s waste does not “go to waste.”

With support from USAID’s Agribusiness Project, manure from the Lazar Dairy is being “digested” by Serbia’s first biogas plant and converted into electricity, which the dairy sells to the national electricity company, EPS, at a preferential rate applicable to renewable energy suppliers.

Lazar pays about €0.05/kWh for the electricity it purchases from EPS, but it will receive about three times as much for the electricity that it sells to power company.

A DAI-led USAID project supported the construction of Serbia’s Lazar Dairy new biogas plant. The plant was designed by DVO Inc., of Chilton, Wisconsin, a leading U.S. designer and builder of anaerobic digesters.

Ushering the $2 million plant from drawing board to full operation took two-years. USAID’s Agribusiness Project acted as the “matchmaker” between Lazar Dairy and DVO, Inc., of Wisconsin, a leading U.S. designer and builder of anaerobic digesters.

The dairy had faced significant problems dealing with its manure, a major pollution issue. Now, this is virtually eliminated by the digester — a sealed container — as is the odor problem. Since its inauguration in May 2012, the plant has been operating 24 hours a day, seven days a week, feeding up to 1 MW of renewable electrical energy into the national electrical grid every month—enough to power more than 1,000 homes.

In addition to generating biogas that powers the generator, the leftover solids and liquids are filtered and used for cow bedding and as fertilizer. The recycling of other organic waste (such as whey from cheese production at the farm) results in a liquid fertilizer and waste heat in the form of hot water that can be used to heat buildings.

A DAI-led USAID project supported the construction of Serbia’s Lazar Dairy new biogas plant. The plant was designed by DVO Inc., of Chilton, Wisconsin, a leading U.S. designer and builder of anaerobic digesters.

“The introduction of the bio-digester completely changed our business operations. We now have a steady cash inflow and dispose of our waste without harm to the environment,” said Milan Vidojevic, owner of the Lazar Dairy and one of Serbia’s most successful entrepreneurs.

Bolstering technological innovations like these, which encourage economic growth both abroad and at home, while supporting responsible agricultural practices, is a priority at USAID.

“This investment demonstrates that environmentally sound production can increase profits AND provide wide reaching benefits for the whole community. The U.S. Government is proud to have facilitated this process, through which this American technology has found its way to Blace,” said the former U.S. Ambassador to Serbia, Mary Warlick.

Lazar Dairy, which employs 120 people, is an economic engine for villages around Blace. In addition to its dairy farm, Lazar buys up to 45,000 liters (12,000 gallons) of milk per day from a network of more than 2,000 local farmers within a 100-kilometer radius. Its processing plant converts this raw milk to processed milk, yogurt, creams, and cheeses.

As a result of USAID’s assistance since early 2009, the company has generated annual sales of nearly $1 million, which translates to more than $600,000 in cash payments to the 2,000 raw-milk suppliers. Should future environmental regulations in Serbia allow it, the dairy would be eligible for additional revenue through the sale of carbon credits.