Tetra Tech’s Debra Darby, Peter Klaassen, and Tom Bilgri share how infrastructure, incentives, and regulations are converging to make today the right time to invest in anaerobic digestion (AD).
AD has emerged as a timely solution as U.S. states implement aggressive waste diversion policies and demand grows for renewable natural gas (RNG). But project success hinges on choosing the right site—one aligned with feedstock availability, utility access, community support, and viable end markets. Our experts break down the critical factors for siting effective AD systems and seizing current market opportunities.
Information from this industry insight was originally published in Waste Advantage Magazine.
The Opportunity for AD Development Is Real, but Why Now?
Organics diversion mandates, landfill capacity constraints, and decarbonization policies are converging across the U.S. and Canada. Meanwhile, energy markets are increasingly looking for renewable fuel production. These trends create an environment where AD projects—particularly those strategically located—can offer environmental and economic returns.
Tetra Tech helps clients respond to this moment by identifying and developing AD projects that align with evolving state mandates, federal incentives like D3 renewable identification number (RIN) credits, and local infrastructure capacity.
Feedstock and Infrastructure: The Siting Foundation
Selecting a site starts with feedstock. Reliable access to high-organic-content waste—from food processors or commercial generators—is essential to maintaining a steady input stream. But equally important is proximity to:
- Utility infrastructure, such as natural gas pipelines and electrical grids
- End-use markets for biogas or digestate
- Existing solid waste or wastewater facilities
When infrastructure is already in place, capital expenditures (CapEx) drop, timelines shrink, and permitting complexity eases. Co-locating with wastewater treatment plants (WWTP) or landfills is a growing trend that maximizes existing systems and avoids redundant investments.
Technology that Matches the Market
Both dry and wet AD systems can be effective if aligned with the feedstock and regulatory environment. Dry AD offers flexibility and compatibility with yard and food waste but requires more preprocessing. Wet AD, on the other hand, can integrate with WWTPs and deliver greater gas yields, though it demands odor control and works best with slurry-like material.
Tetra Tech works with clients to model system performance and cost based on location-specific conditions, helping them determine which AD technology will deliver the most sustainable results.
Environmental Justice and Stakeholder Buy-In
Community acceptance remains a major siting hurdle. Successful projects start early with transparent outreach, especially in environmental justice (EJ) areas. Odor, traffic, and noise concerns can derail permitting processes if not proactively addressed.
Tetra Tech integrates stakeholder planning into early project phases, guiding clients through EJ regulations in states like New Jersey, New York, and California.
Making the Economics Work
With CapEx ranging from $30 to $40 million and operating expense around $1.5 million annually, AD projects require careful planning to ensure long-term return on investment. However, when sited well, these projects can tap:
- RNG market demand
- State and federal incentives, such as low-carbon fuel standard and RINs
- Local tipping fees
For example, a 100-ton-per-day wet AD facility can generate more than $140 million in net revenue over 20 years by selling RNG and offsetting fossil fuel consumption. Siting such a facility near a landfill or existing RNG project can reduce development costs significantly.
Positioned for the Future
The market window is open. Developers that move now can position themselves for long-term success in the organics and RNG sectors. But success depends on siting projects where infrastructure, policy, and partnerships are already in place.
Tetra Tech brings decades of experience in solid waste, wastewater, organics management, and renewable energy systems to help clients identify, plan, and build AD facilities that are designed for current and future market realities.
About the authors
Debra Darby
Debra Darby is a client manager with nearly 20 years of organics experience in the solid waste industry.
She leads the organics management group and is involved in consulting, compliance, permitting, and developing the operations of organic materials management systems. Through solid waste solutions planning, she assists clients in reaching their sustainability and zero waste goals.
Debra is a U.S. Composting Council Certified Composting Pr
Peter Klaassen
Peter Klaassen is vice president of Tetra Tech’s solid waste practice in Ontario and Manitoba.
He specializes in organics infrastructure, waste processing, and sustainable system planning. Peter is a senior environmental professional with more than 35 years of experience, delivering projects across Canada, the U.S., Caribbean, North Africa, Middle East, and Central Asia. His work includes waste management master planning, aerobic and anaerobic organics processing, landfill design, and energy-from-waste systems for public and private clients.
Peter is a licensed Professional Engineer and holds a Bachelor of Engineering in Engineering Physics and a Master of Business Administration in Finance and International Business from McMaster University.
Tom Bilgri
Tom Bilgri manages Tetra Tech’s biogas engineering services group.
He has more than 30 years of experience in landfill gas (LFG) management system design, permitting, and RNG project development. Tom also has provided on-site assessments of surficial and subsurface LFG migration and evaluated and addressed odors related to landfills and LFG systems. He also has worked on developing beneficial-use projects, including direct sale, electrical generation, compressed natural gas, liquefied natural gas, and high-British-thermal-unit gas production facilities.