Land O'Lakes, Inc., Arden Hills, Minn., and California Bioenergy, LLC (CalBio), Visalia, Calif., launched what is said to be a first-of-its-kind collaboration to support the financing, installation and management of on-farm methane digesters to generate renewable compressed natural gas (R-CNG) fuel in California, thus creating a farmer-led model for "barn to biogas."

Land O'Lakes is uniquely positioned to tap into the potential power of California dairy farmers to generate renewable energy from farm waste. CalBio provides the expertise needed to develop, execute and manage on-farm methane digesters, as well as market R-CNG credits in California in a manner that is cost effective for farmers.

This partnership with CalBio will also help Land O'Lakes dairy member-owners in California meet new state standards that call for a 40% reduction in dairy and livestock manure-related methane emissions from 2013 levels by 2030. 

"Land O'Lakes and CalBio are creating the end-to-end sustainability infrastructure that farmers need to make 'barn-to-biogas' a reality," says Matt Carstens, senior vice president, Land O'Lakes SUSTAIN. "This is impact investing at its best – eliminating barriers to the adoption of new sustainability technology, unlocking new revenue streams for farmers, cutting emissions and creating a public good."

"CalBio's dairy digesters are proven in California. We are excited to expand that work even further through this collaboration with Land O'Lakes and their member-owners in California," says Neil Black, president of CalBio. "Our expertise and ongoing operational support will help dairy farmers make the most of a significant new revenue stream through biogas generation, while allowing them to stay focused on doing what they do best – producing wholesome, delicious food in a sustainable way."