Innovation

The company quasar energy group didn’t invent anaerobic digestion, but they are one of the first companies in the U.S. to utilize this technology for clean energy creation. When the organic waste is collected it is sent to a receiving tank where solids are “chewed” before entering the digester. Once the organic waste reaches this step, microorganisms digest the waste and produce methane gas. Alan Johnson, Vice President of Project Development & Management, says to make the process even more effective, they “look at co-digesting things along with the human waste,” and “food [waste] is going to have more energy in it then waste does.”

The methane gas can then be pumped back into natural gas grids for distribution. It can be used to produce electricity or to heat homes. All of the plants are actually powered by gas created through the digestion process. Natural gas can be used as a fuel for vehicles, and quasar has 3 fueling stations at their Ohio locations that are open to the public.

A by-product of the anaerobic digestion process is a natural fertilizer that Johnson tells me they have branded as “Equate.” Once the gas is extracted there are still valuable nutrients and organic matter left over, which quasar is able to capture and sell back to farmers. Johnson says, “A typical plant can fertilize enough land for about 1500 acres of farm land.”

Inspiration

The company quasar energy group started as Schmack BioEnergy, a division of Schmack BioGas, back in 2006. Schmack BioGas was a German energy company that fell on hard times in 2009, and Schmack BioEnergy continued on as quasar energy group.

The idea to generate energy from waste came from a separate project with the city of Akron’s water treatment department, who were trying to reduce pathogens in their sludge. Melvin Kurtz, the eventual President of quasar,reached out to The Ohio State University Agricultural School where they were first introduced to anaerobic digestion. They built a pilot plant in Akron, and soon discovered the true power and possibilities that were available through digestion of organic waste. Johnson tells me the plan was to, “take the German technology, Americanize it, and then find opportunities in America to put that technology in place.”

Overall impact

The company initially were building projects and walking away. After the US economic collapse of 2008, quasar realized there was a better way of doing business. Johnson says now, “They build in long term relationships with their owner/client, by wanting to stay involved from an equity perspective.” To this date they have built 14 plants in 4 states, they operate 10 of those plants, and own portions of 12 of them.

In Massachusetts, they have digesters at small dairy farms that can heat and power the farms. In New York, they have plants that are supplying energy directly to NYSEG (New York State Electric and Gas). In Ohio, they have a plant at the Wooster Water Pollution on Control Plant that upgrades the plants infrastructure, and allows them to handle the growing throughput demands, while generating energy for the community and themselves. This significantly reduces costs at the plant because, “Their going to run part of the their plant from energy they create right there on site,” says Johnson.

Business benefit

“Our CFO would say we are a green company, but the only green we care about is cash flow,” jokes Johnson. For quasar it’s really about creating a company that promotes sustainability and ROI. They make a lot of their revenue from tipping fees, hauling agricultural waste for farmers. Usually this waste is just disposed of, but quasar can haul it for a lower cost, and create a lot of good from it. They are also generating revenue from selling methane as a fuel or sending it back into the pipeline.

There’s great opportunity for quasar to grow their revenue through expanding their sales of their fertilizer Equate, back to farmers. Also, they’ve been working on a process to use anaerobic digestion to recover phosphorus, which would be a huge benefit to farmers. After 8 years, Johnson says, “they are staying aggressive,” and “it still feels like a start up.”

Social and environmental benefit

The company quasar energy group has just scratched the surface on what anaerobic digestion is cable of, and what potential there is to be found in organic waste. Their technology has potential to impact water and sanitation, clean energy, responsible consumption, and really the infrastructure of our world. The key for quasar will be to continue building partnerships such as the one they have with the dairy farmers of Massachusetts, or the partnership they have with the Cleveland Sports Stadiums to haul away all food waste, and place it in digesters. The company has captured the energy within waste and their future as a company looks bright.

Interview

Alan Johnson, P.E., Vice President, Project Management and Development