WSCC Final Report Organix Grant Project 2019Public Relations about the Project Once the M1 BIDA® unit was installed and operating, several opportunities arose to demonstrate its effectiveness

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WSCC Final Report – Organix Grant Project 2019

This final report details the findings and recommendations resulting from the project entitled “Installation and Operation of BioFiltro BIDA® Systems at Two Dissimilar Dairies in the Yakima Valley: Operation Efficiency, Effects on Air and Water Quality, and Characterization and Marketability of Byproducts.” The title has become somewhat misleading due to unanticipated events. Both dairies that had originally agreed to participate in the project (Castle Grove Dairy and Liberty Dairy) reneged on their commitment due to financial concerns. Additionally, the project delay was further compounded by inclement weather. J & K Dairy, a 3,000 cow flush dairy in Sunnyside, WA then signed on for the project which was downsized and paid for by Organix and its partners. To avoid additional delays, the project was installed with no out-of-pocket expense to the dairy. As a result, what was originally going to be an installation of a large-scale BioFiltro BIDA® system that would have processed all of the dairy’s wastewater daily became an installation of a containerized BioFiltro BIDA® M1 unit that processes 250 gallons of wastewater daily pulled from the head of the lagoon at the inflow of wastewater following centrifugation. The following sections will describe the BioFiltro BIDA® technology, both large scale and small scale (M1 unit), the results of the project, and additional information.

Detailed description of the innovative and emerging technology evaluated and a clear explanation of the results of this grant contract. BioFiltro BIDA® System BioFiltro´s patented BIDA® System enables dairies to filter manure-laden wastewater onsite, converting it into a reusable asset of cleaner irrigation water and worm castings, a natural, nutritious, and highly desirable fertilizer. The system is essentially a large-scale, more sophisticated version of an aerated worm bin that reduces nitrogen and phosphorus from the liquid stream of manure. The resulting cleaned water or vermifiltrate is odorless and transparent (mostly void of particulates) and contains far less solids and nutrients. It can be recycled to clean alleys on flush dairies or be used for irrigating crops on the farm without threatening ground and surface waters while effectively limiting odor nuisances and complaints5. The BIDA® System is a unique filtration process that utilizes wood chips and composting worms, Eisenia fetida, to transform manure-contaminated wastewater into irrigation grade water within a four-hour chemical-free, biological and natural process. Unlike other treatment systems, the BIDA® System mitigates odors and pollutants while using ˞80% less energy compared to traditional wastewater treatment technologies. Instead of generating sludge, the BIDA® System yields harvestable worms and worm castings, a highly nutritious organic fertilizer; both products can be applied back to the soil for improved agriculture or sold. The BIDA® System is fully scalable. For large dairies, it is an open top containment structure which houses, from top to bottom, wood chips, river cobble, geotextiles, and drainage basins. For smaller dairies, the system is one or more containerized modules, depending upon the dairy size, that functions identically. The unit is inoculated with an

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industry specific mix of worms, microbes, and bacteria to achieve maximum reduction efficiencies on parameters such as BOD, TSS, TDS, total nitrogen, ammonia, and phosphorus. The burrowing worms create air channels, digest suspended solids, and can achieve densities of 12,000 worms per cubic yard. For seasonal or intermittent use, the biomass survives by utilizing the carbon-based wood chips during the off-season. An automated irrigation system disperses wastewater across the entire surface of the BIDA® System for physical and biological filtration. Gravity pulls the water through layers of wood chips and river cobble before final discharge. The worms, as they burrow through the media in search of larger solids, aerate the media and create new channels for water to travel through. As they digest, they excrete more microbes and bacteria all of which work together to form a symbiotic and beneficial relationship expressed as a “biofilm,” a robust layer of billions of colonies of microbes and bacteria that grows across all system medias and captures, retains, and digests contaminants. The results, four hours later, are 1) irrigation grade water which can be reutilized for agriculture or recycled back into the flush lanes and 2) a major reduction in odor and harmful contaminants (significantly reducing total nitrogen – including water soluble nitrates, phosphorus and greenhouse gases). Due to the rapid 4-hour process, the bioreactor is virtually odorless and requires minimum storage capacity.

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A large-scale, open BIDA® System has been operating at Royal Dairy, Royal City, WA, a 6,000-head holstein flush dairy, for over two years. It is the largest dairy BIDA® unit in the world and can process up to 200,000 gallons of water each day. As with all units, it is continuously monitored for quality control via telemetry by BioFiltro staff. The Royal Dairy system averages 93% total nitrogen removal (including off-gased N2)5, 97% total suspended solids and 90% total phosphorus removal (as reported to Royal Dairy from BioFiltro, Inc.) and uses only 0.0007 kWh/gallon of water treated. It has performed within expected parameters, exceeding nutrient management goals, even through the winter with average to below-freezing temperatures.

Task: Install BioFiltro BIDA® unit at a CAFO dairy in the Yakima Valley

Because of the delays in finding a dairy committed to participating in the project financially, we were unable to construct a conventional pit BIDA® System that would process all the wastewater effluent at a large dairy. A containerized M1 unit was installed at J & K Dairy in Sunnyside, WA. This unit processes 250 gallons of wastewater each day (equivalent to 100 cows at this dairy based on the total suspended solids in the wastewater).

J&K Dairy uses a Daritech DTX manure separator for primary separation and the DT360 rotary screen for secondary separation to manage their manure. The resulting wastewater is diverted to a lagoon.

Task: Identify and document any modifications and specific costs associated with them, required to adapt the dairy’s existing systems to interface with BIDA® technology and document the operating costs of the system.

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Modifications and Costs Organix installed a pump and pipe at the point where wastewater enters the lagoon to divert a portion (250 gallons/day) of the wastewater to the M1 BIDA® unit. The wastewater, as drawn from the edge of the lagoon, had very high TSS, exceeding recommendations from BioFiltro for optimal BIDA® processing. Therefore, Organix proposed installing a second modification to constantly dilute the influent with BIDA® processed water to reduce the TSS of the wastewater entering the unit to acceptable levels. The modification consisted of a pipe that diverted some of the processed water from the BIDA® unit to a series of two settling tanks and then to a dilution tank prior to the point of inflow into the BIDA® unit where treated water was added in order to achieve appropriate TSS levels. Additionally, instead of shavings, this unit uses larger chips to create added porosity to assist in accommodating the high TSS load.

Sump and Pump

Outflow to BIDA® unit

Inflow from manure

separator

Edge of lagoon—installed modification to pump

manure wastewater to BIDA® unit for processing

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This system effectively dilutes the TSS in the wastewater from the lagoon by approximately 50%. For example, on June 4, 2019, the TSS of the wastewater from the lagoon was 7,600 ppm. Following settling and dilution with processed BIDA® water (TSS = 250 ppm) the TSS of the wastewater entering the BIDA® unit for processing was 3,900 ppm, a level optimum for the unit to process. Finally, a sample collection sump and piping back to the lagoon was installed at the point of outflow from the BIDA® unit.

A

B C

Settling tanks (A → B) and dilution tank (C).

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Sump for collecting samples of BIDA® unit processed water.

Outflow from

BIDA® unit Outflow back

to lagoon

Sample

collection

sump

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Installation Costs The installation costs associated with a BioFiltro BIDA® system as described in this study for the J & K Dairy are: M1 BIDA® unit (including delivery cost) $57,500 Installation materials and labor $14,885 Site modifications materials and labor $ 2,470 Total $74,855 Operation Costs The major cost of operating the M1 BIDA® unit is remote telemetry (WISECONN) of the unit by BioFiltro. This technology continuously monitors pH, conductivity (EC), oxidation-reduction potential (ORP) and flow rate of the treated effluent. The cost for this service is approximately $800 per month. Electrical service to the unit is minimal. Public Relations about the Project Once the M1 BIDA® unit was installed and operating, several opportunities arose to demonstrate its effectiveness to different interested groups. The following is a list of contacts and tours of the facility:

3/28/19: Russ Davis met with Jesse Taylor, Executive Director of Washington FFA and student representatives in Walla Walla to discuss BioFiltro BIDA® technology and WSCC project at J & K Dairy.

4/2/19: Russ Davis met with Kirk Robinson, Interim Executive Director, WSCC and representatives from South Yakima Conservation District at J & K Dairy to view the project.

5/14/19: Russ Davis met with Dillon Honcoop, Communications Director, Save Family Farming at J & K Dairy. Mr. Honcoop shot video of the interview.

5/31/19: Russ Davis met with Anne Nelson, Rural Communities Partnership Initiative, Office of Public Lands (DNR) to discuss the possibility of partnering by using wood chips derived from forest thinning (for fire reduction) as a source for BIDA® units.

The Walla Walla Union Bulletin published an article by Vicki Hillhouse about the project on April 24, 2019. “WW Firm: Worms to Aid in Filtration” https://www.union-bulletin.com/local_columnists/ww-firm-worms-to-aid-in-filtration/article_6bfd0546-66b3-11e9-8547-67f09e77c281.html.

In addition, partially due to the exposure of the J&K Project, Organix and BioFiltro have been invited to present at the Mars-Wrigley and Land O’ Lakes pitch event showcasing on-farm solutions to reduce greenhouse gas emissions in Minneapolis, MN in early August. The combined proposition of cleaner water, carbon credits, saleable products and sustainable practices is a primary driver for the event. Out of 108 entries, the BioFiltro/Organix team is one of four finalists.

https://www.union-bulletin.com/local_columnists/ww-firm-worms-to-aid-in-filtration/article_6bfd0546-66b3-11e9-8547-67f09e77c281.html



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Recommendations Dairy Size The BioFiltro BIDA® system as described in this study is appropriate to process all the liquid wastewater for a small dairy of approximately 200-250 cows. For dairies up to 500 head, a second BIDA® unit can be piggy-backed onto the first to double the treatment capacity. In Washington in 2017 there were 88 dairies between 200-499 cows each (USDA). The smaller dairies tend to be on the west side of the Cascades, where the annual rainfall is high. The enclosed design of the M1 unit makes it ideal for these conditions. Larger dairies (500 cows and up) tend to be on the dryer eastern side of the state. The open BIDA® system (like that installed at Royal Dairy) is more appropriate. The BioFiltro BIDA® system is fully scalable for any of these applications. Wood Chips All BIDA® systems require initial loading and periodic replenishment of wood chips. Organix recently met with Anne Nelson, RCPI (Rural Communities Partnership Initiative) Program Manager for Washington State Department of Natural Resources (DNR). DNR thins overly dense, unhealthy forests and chips the slash. Organix will pursue the opportunity to partner with RCPI to use these chips in BioFiltro units. Field Day Organix and BioFiltro have agreed to continue operating the M1 unit at J & K Dairy at least through the end of 2019. Organix, with additional funding from WSDA Dairy Nutrient Management Program, will hold a field day for dairy producers and other interested parties in summer, 2019. It will include tours of the facility, speakers, and handouts about the technology and byproducts sales. Task: Evaluate the water quality of the influent to and effluent from the BioFiltro BIDA® System. Results of BioFiltro BIDA® system wastewater processing Four parameters were reviewed to evaluate the efficacy of the BIDA® system:

1. Comprehensive wastewater testing of the existing lagoon water, the water being drawn from the lagoon for delivery to the BIDA® unit (influent) and the processed water exiting the BIDA® unit (effluent) for comparison.

2. Preliminary testing of gases off-gassed at the influent site, the BIDA® unit itself, and the effluent site were performed. (WSU will perform more extensive testing subsequent to the end date of the granting period to be reported in the future.)

3. Chemical and biological assessments of worm castings from a BIDA® unit were conducted.

4. Similar testing was performed on the effluent (“worm tea”) from the BIDA® unit Parameters 3 and 4 were evaluated to determine the potential market value of castings and worm tea to agriculturalists, nurseries, and the general public.

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Water Testing Results Samples of wastewater drawn from the storage lagoon, from the location where wastewater was diverted to the BIDA® unit from its entry point into the lagoon (influent) and water following BIDA® unit treatment (effluent) were collected weekly for five weeks from May 30 to June25. Samples were delivered to Energy Northwest Environmental Services, Richland, WA the same day for testing. The mean of five values was determined for each test and the results are shown below.

Total Nitrogen, Nitrate and Nitrite Total nitrogen levels in the lagoon and in the influent drawn from wastewater entering the lagoon from the solid separation process are nearly equivalent (1,694 mg/l versus 1,525 mg/l). Following passage through the BIDA® system, on average, only 98 mg/l total nitrogen remained; 93.6% of total nitrogen was removed from the wastewater. Frank M. Mitloehner, PhD, U.C. Davis Department of Animal Science, has reported that nitrogen is off-gassed as N2 during BIDA® system treatment. In comparison, both nitrate and nitrite levels are increased in the effluent compared to influent and lagoon levels. In the aerobic environment of the BIDA® system, nitrification of the ammonium in the influent is biologically converted to nitrate through a two-step process. First, aerobic bacteria (Nitrosomonas spp) convert ammonium to nitrite. A second group of bacteria (Nitrobacter spp) convert nitrite to nitrate. The increase in nitrates and nitrites improves the fertigative qualities of the effluent (or “worm tea”).

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The total nitrogen in the influent is composed of 60% ammonia and less than 0.01% nitrate/nitrite in contrast to total nitrogen in the effluent composed of 4% ammonia and 9% nitrate/nitrite. (tests by Cascade Analytical). An evaluation of leakage from a dairy lagoon in Whatcom County found that the major source of nitrogen in the water in the surrounding soil was due to ammonia1. Although there is an increase in nitrites and particularly nitrates in the effluent from the BIDA® system (making it a valuable marketable product), the concentrations are significantly less than the total nitrogen source in raw lagoon water suggesting that storage of effluent in a conventional lagoon should not have a dramatic influence on nitrogen levels in surrounding soil. Wastewater Solids Wastewater solids are commonly broken down into three categories:

• Total Dissolved Solids (TDS) – a measure of all substances dissolved in a liquid that cannot be removed by filtration (primarily inorganic salts and a small amount of dissolved organic material)

• Total Suspended Solids (TSS) - a measure of all organic and inorganic substances suspended in a liquid that can be removed by filtration

• Volatile Suspended Solids (VSS) – a rough measure of the organic fraction contained in the TSS

Both lagoon water and influent water contain significant levels of TDS and TSS (which is predominantly VSS (organic material). BIDA® system treatment removes approximately 40% of the total dissolved solids (primarily inorganic salts). However, 97% of the TSS and VSS are removed.

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Biological Oxygen Demand (BOD) Finally, BOD is the amount of dissolved oxygen used by microorganisms in the biological process of metabolizing organic matter in water, and as such is an indirect measure of the amount of organic pollution in a water sample. BIDA® system treatment removed over 98% of BOD from the influent.

Wastewater testing results from Cascade Analytical and Agrimanagement, Inc. are attached. Task: Evaluate air emissions mitigations at defined locations at the dairy before and after installation of the BioFiltro BIDA® System.

Preliminary Air Quality Testing Results WSU proposed a detailed examination of air quality parameters for this project. Because of the delays associated with implementing the project, WSU has extended

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their study period beyond the end date of the original study period. In order to provide some preliminary data, Organix, with the aid of Agrimanagement Inc., performed a short study using a Landtec BioGas CDM Portable Gas Analyzer. This analyzer has the capability of measuring percentages of CH4, CO2, and O2 that can then be converted to parts per million (ppm); one percent gas equals 10,000 ppm. The limit of detection was 0.1% or 1000 ppm. H2S was measured directly as ppm by the analyzer. A simple air collection container was created to isolate sample collection to the designated location. The collector was placed over the collection site and samples were withdrawn for testing through the port by the analyzer.

Four locations were chosen from which to collect samples. First, an area on the dairy well away from the lagoon near the commodities shed, designated “farm.” Here, samples were simply collected from surrounding air. Second, over the location at the lagoon where effluent from manure solids separation entered the lagoon; this is where the influent for the M1 BIDA® unit was drawn. Third, air venting from the roof of the M1 BIDA® unit furthest the door to the unit (shown above), and fourth, air collected above the sump collecting effluent from the BIDA® unit. A 30-second purge of the analyzer was performed in open air before each sample was drawn from the port. For gas tests, samples were pumped from the port through the analyzer for 30 seconds and readings were recorded upon stabilization. Three air samples were analyzed from each location daily at similar times for 10 days straight in June 2019 (total of 30 samples at each location). The mean gas concentration was determined for each location (for calculating means, a reading of 0% was considered 0 ppm). In all samples tested at all four locations, the O2 readings were consistently between 20-21% as would be expected. No methane was detected (<1000 ppm). We were unable to sample air directly over the lagoon which, because of its anaerobic nature, would be the most likely location for methane emission. Carbon dioxide was only detected at the influent and M1 BIDA® unit sites. It is not surprising to note off-gassing of CO2 from the BIDA® unit because considerable aerobic respiration is occurring within the unit.

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One of the major contributors to farm odor (generating complaints from the public) is hydrogen sulfide (H2S) gas. It is produced from anaerobic degradation of manure. Sampling air at the influent site detected an average of 49.1 ppm. H2S was diminished 10-fold by BIDA® treatment, as detected at the unit site and at the effluent site. This suggests that aerobic BIDA® treatment of liquid manure is an effective mitigant of farm odor.

We expect that results from the more-detailed WSU air quality studies will more clearly demonstrate the effectiveness of BioFiltro BIDA® system for reducing greenhouse gases and odors.

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Estimate of acquisition, maintenance and operating costs for a dairy operator to implement the technology. In Washington State, dairy operators can expect capital expenses for installing a of BioFiltro BIDA® system of approximately $500 per cow. Operating expenses are approximately $4 per cow per year. Based on these figures, installation of a of BioFiltro BIDA® system for a 3,000-cow dairy would cost approximately $1,500,000. Operating costs would be approximately $12,000 per year. In this study, because of the difficulties in maintaining the two original dairy partners and then J & K Dairy as a partner for installation of a large BioFiltro BIDA® system, a substantial portion of the budget for the project was expended in travel, drawings, and engineering for three different dairies that never made it to the installation stage.

How costs for implementation of the technology could be mitigated by any marketable byproducts created by the technology and an assessment of potential markets and demand for byproducts created by the technology being evaluated. Task: Characterize BioFiltro BIDA® System effluent (vermifiltrate or worm tea) and worm castings (vermicompost).

Task: Evaluate agronomic potential.

BioFiltro BIDA® systems generate two potential byproducts, worm castings and worm tea: Worm castings During system operation as wastewater is being processed, there reaches a point (generally once a year) where much of the wood chips and other organic matter have been fully digested by the worms and the result are worm castings. At this point, the system must be cleaned out and new wood chips laid down. The worms are retrieved from the castings and a portion are used to re-seed the system. Excess worms may be sold for use as a protein source or to relocate to other dairy BIDA® units or on the retail market. The castings are a rich and valuable soil amendment highly sought after by nurseries and agricultural users. Worm castings provide substances that directly influence healthy plant growth. Research conducted over several years at The Ohio State University Soil Ecology Laboratory found that worm castings enhanced seed germination, plant growth, flowers and fruit production; castings also curb certain plant diseases, including root and crown rots and wilt disease, and inhibited some insect pests, including mites, aphids and mealy bugs.2

Researchers at Cornell University Department of Plant Pathology and Plant Microbe Biology demonstrated that worm castings suppress damping-off disease in seedlings and castings naturally degraded the protective covering of some insect pests, regulated plant nutrient release and stimulated the nutrient cycle from soil to plants.3

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The current retail market value of worm castings is approximately $150-$400/cubic yard. Annual revenue depends upon the size of the BIDA® unit.

Analytical testing of BIDA® unit worm castings Because of the delay in getting the BIDA® unit online at J & K Dairy, we obtained a sample of worm castings from the BIDA® unit at Royal Dairy. The material was tested for fertigative and biological soil amendment properties by Agrimanagement Inc., Yakima, WA (via Soiltest Farm Consultants Inc., Moses Lake, WA) and for specific biological activity and pathogens by Earthfort, LLC, Corvallis, OR.

Chemical Assessment Agrimanagement Inc. took data from standard compost testing worm castings performed by Soiltest Farm Consultants Inc., Moses Lake, WA and put it into an Ammonium-N retention and mineralization report, which helps to estimate plant-available nitrogen. Although this model was designed for animal manures and may not completely translate to worm castings, it is the only available model to evaluate castings and likely provides a beneficial way to look at it. The results are shown below:

WORM CASTINGS SAMPLE COMPOSITION, DENSITY CORRECTED

AMMONIUM RETENTION

Element Compound ppm (mg/kg lbs/ton 1 Y Ret/Min

1 Y Available

Total C Total Carbon - 222.00

Total N Total Nitrogen 7000 14.00 35.68% 5.00

NO2-N Nitrate 575 1.15 100% 1.15

NH4-N Ammonium 46 0.09 20% 0.02

Organic N 6379 12.76 30% 3.83

P Phosphorus 2900 5.80 100% 5.80

P2O5 Phosphorus pentoxide 6700 13.40 90% 12.06

K Potassium 4000 8.00 100% 8.00

K2O Potassium oxide 4800 9.60 90% 8.64

S Sulfur 1600 3.20 60% 1.92

Ca Calcium 10500 21.00 100% 21.00

Mg Magnesium 4200 8.40 100% 8.40

Na Sodium 1600 3.20 100% 3.20

Trace Elements

B Boron . 16 0.03 100% 0.03

Zn Zinc 94 0.19 100% 0.19

Mn Manganese 110 0.22 100% 0.22

Fe Iron 1730 3.46 100% 3.46

Cu Copper 17 0.03 100% 0.03

Other Results C:N Ratio 15.86

pH 8.2

Conductivity 16.19 mmhos/cm

Based on this analysis, it is not as nutrient concentrated as finished compost but it has good balance. The electroconductivity is somewhat high but sodium content is relatively comparable to finished compost. All the heavy metals are tested low and are of little

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concern for use of this product in food crops. The true value of this product is likely in its high biological activity which aids in restructuring soil.

Biological Assessment Agrimanagement Inc. tested the castings sample in a Solvita jar (assesses biological respiratory activity) and it tested in the highest category showing it is very biologically active. Earthfort’s testing was more specific and showed that the castings had a balanced bacterial and fungal mass with good activity, and good levels of protozoa and nematodes. Importantly, Salmonella, E. coli and fecal coliforms including E. coli 0157:H7 pathogens were not detected. “Overall, this is a very good worm casting compost, utilized as a soil amendment at 25-50 pounds per 1000 square feet, or as a component in a container soil mix at 5-15%.”

WORM CASTINGS BIOLOGY REPORT

Assay Below Range

Desired Range Above Range Range Result

Active Fungi

>3 µg/g 8.46 µg/g

Total Fungi >300 µg/g 1906.76 µg/g

Active Bacteria >3 µg/g 120.53 µg/g

Total Bacteria >300 µg/g 1,251.73 µg/g

Flagellates >10,000 /g 8.7 x 105 /g

Amoebae >10,000 /g 1.8 x 106 /g

Ciliates <18,823 /g 2,597 /g

Nematodes >10 /g 17 /g

Agrimanagement, Soiltest and Earthfort reports are attached.

Worm Tea (effluent) Worm Tea (BIDA® effluent) or water from the active composting worm environment that has passed through the worm castings is also a marketable product. The tea contains minerals and microbial elements that are valuable to soil. In 2009, the U.S. Department of Agriculture cited research which found that worm tea, like dry castings, increased plant growth and productivity while inhibiting insect pests and diseases. Some vegetables responded highly to worm tea, with up to a 50 percent increase in growth and yields.4

Analytical Testing A sample of the worm tea was sent to Soiltest Farm Consultants, Inc. for evaluation of the chemical composition of the tea. The pH was 8.3 and the electrical conductivity was 8.23 mmhos/cm. The C:N ratio was 2.7. The following table shows the results from this testing.

Worm Tea – Analytical Testing

Element As Analyzed (mg/kg) Density Corrected (lbs/1000 gal

TN 557 4.62

TC 1493 12.37

P 55 0.46

P205 127 1.05

K 1795 14.88

K20 2155 17.86

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S 139 1.15

Ca 164 1.36

Mg 267 2.22

Na 1044 8.65

Zn 0.7 0.006

Mn 0.6 0.005

Cu 0.5 0.004

Fe 6.5 0.053

B 0.7 0.006

NH4-N 33 0.28

NO3-N 242 2.00

Plant nutrients in the worm tea were considerably less concentrated than in the worm castings, as would be expected. Microscopic examination of the worm tea revealed that the organisms observed were limited in volume and microbial family diversity when compared to the worm castings.

Growth Study

The worm tea or effluent and worm castings from the BIDA® unit at Royal Dairy were tested in a 5-week preliminary growth study by Arnie Moeller, C-Gro, Inc., Ritzville, WA, One each of five different plant species (both annuals and perennials) were used to make up each group: Dracenia, Snapdragons, French Marigolds, Ferns, and Alyssum. Plants were selected from nursery stock; the selection of the families was random but individual plant/pot selection was measured for equal size of the plant and plant health at the beginning of the test. The study protocol was as follows:

• Control plants received one oz of tap water daily and 4 grams of 4N-4P-0-2S fertilizer weekly throughout the 5-week study.

Week 1

• Test Group 1 received 1 oz of worm tea daily

• Test Group 2 received 1.5 oz of worm tea daily

• Test Group 3 received 2 oz of worm tea daily After one week, Groups 1-3 measured 1-2% greater growth than the control group. Week 2



• Test Group 3 received 4 oz of worm tea daily After two weeks, Group 1 measured 2.6%, group 2 measured 3%, and group 3 measured 3.6% greater growth than the control group. Week 3




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After three weeks, Group 1 measured 2.6%, group 2 measured 2.8%, and group 3 measured 3.4% greater growth than the control group.

Week 4 – Each test plant received 14.5 grams of worm castings once



• Test Group 3 received 8 oz of worm tea daily After four weeks, Group 1 measured 3.2%, group 2 measured 3.8%, and group 3 measured 4.2% greater growth than the control group. Week 5



• Test Group 3 received 8 oz of worm tea daily After five weeks, Group 1 measured 3.2%, Group 2 measured 3.8%, and Group 3 measured 4.2% greater growth than the control group. The results may be summarized as follows:

SUMMARY – MEAN GROWTH TOTAL FOR 5 WEEKS

Control Group Group 1 Group 2 Group 3

27.4% 41.4% 43.2% 40.4%

In addition, visual examination of the plants revealed that all three test groups had better plant vigor and healthier and broader leaves and stems compared to the control group. Recommendations The next step in evaluating the product potential of both worm castings and worm tea would be to conduct a field test on acreage. One test would be applying 60 gallons of worm tea per acre semi-monthly on a crop during the plant growth cycle and compare it to a similar plot that did not receive the treatment. A second test would be to do a single seasonal application of worm castings to a field at an application rate of two tons per acre and then cover with 60 gallons per acre of worm tea on top of the castings; crops could then be planted on the treated field and a neighboring untreated plot and compared. Task: Determine sales potential of worm castings and bottled vermifiltrate as a soil amendment.

Worm Castings. According to the report generated by Earthfort Labs, this casting product is of the highest quality they have seen. Worm castings are sold at nearly every garden center, nursery and landscape supply store. Castings are one of the highest price soil

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amendment products available, and as such, castings have historically been used primarily for small scale applications and correspondingly produced in relatively small quantity. The larger scale production of BioFiltro castings will now allow other markets to be explored. Worm castings can be utilized as produced or may be added to other materials to create a blended product. A major challenge in the dairy compost market is that compost is continually being produced regardless of the market need; therefore, the large supply can depress the value in the market. For this reason, dairy compost is mostly a commodity. By strategically blending compost with castings, a new higher valuation should result in the overall value of dairy compost being lifted. Thus, a lower value product (i.e. dairy manure compost) may be elevated in value. Land application tests are under way and results won’t be known until 2020. The value of castings ranges from $150-$400 per yard depending on several factors like screen size and quality determined by analysis, packaging and volume). We believe the safe wholesale revenue target for castings generated by a BIDA® system for a dairy will be $70 per yard.

Worm Tea (effluent). The BIDA® water generated post-processing is a new product for which there really isn’t a comparable market at this time. The closest product line would be boutique-style compost teas that sell in the range of $5 - $10 per gallon. We believe a target price, based on product quality identified in testing, will be between $.05 and $.25 per gallon and large-scale agriculture nearby the producing dairy will be the market target. The exact value will be determined by the actual and perceived quality of the water and the volumes by which the product can be produced. At a 5,000-cow dairy, a BIDA® could produce as much as 25 tanker loads per day. For smaller dairies, the potential exists to bottle the worm tea product and sell it at higher values to gardeners at nurseries and home improvement stores. Evaluating the potential of this market is still underway. Another possibility is to amplify the benefits of the worm tea by concentrating it. This can be accomplished by passing it through finished worm castings. Some initial tests show that the with the added treatment, the tea value can increase significantly. There is an associated cost with creating this concentrate, but economics may prove to justify the added steps.

Product Branding. A primary function of branding is to reach buyers in market segments where the product appeal, and therefore brand, identifies a primary benefit – like a price point or a specific treatment. There are currently no known local or regional, large scale agricultural users of castings. Considering this, the decision was made to make a general appeal of healthy soil (tea) and price point (castings).

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Recommendations Organix believes that both excess redworms and remaining wood chips that can be retrieved when worm castings are harvested are potential marketable products. Redworms are currently sold on the retail market for $23-$45 per pound (approximately 1,000 worms). We also believe that a market can be found for a new product - wood chips that have been conditioned in the composting worm environment. Plant nurseries and soil mix manufacturers may find this product useful.

If relevant an assessment of potential federal and state tax credits available for implementation on dairy farms of the new technology or associated byproducts created by the technology. Task: Generate estimate of potential revenue from the sale of carbon credits and costs of registering the credits Carbon Credit Potential - Carbon Offset Methodology Carbon Solutions Northwest believes that the primary contender for the most suitable of Clean Development Mechanism (CDM) methodologies for the BioFiltro BIDA® system is ACM0010: GHG Emission Reductions from Manure Management Systems. This methodology adequately addresses the methane reductions from the BIDA® system as well as the reduction in nitrous oxide emissions.

Monitoring and Quantification ACM0010 uses the number of animals contributing manure to the anaerobic lagoon, the fraction of manure from those animals handled in the lagoon, and a series of variables obtained from lookup tables to quantify the amount of methane-production potential from the volatile solids presumed to be generated by the animals. These lookup tables

22

allow for a simplified approach to baseline methane emissions modeling. Monthly herd counts by classification (milking, dry, heifers and calves) are required to monitor the system. The baseline nitrous oxide emissions from direct nitrogen excretion and from indirect atmospheric deposition of nitrogen on soils and water surfaces are based upon the same animal counts and other lookup tables of default emission factors. The emissions following BioFiltro BIDA® system treatment are based upon the Intergovernmental Panel on Climate Change (IPCC) guidelines that specify emissions from aerobic systems as 0.1 percent of total methane generating potential of the waste processed. Thus, the primary monitoring is based upon (a) how much of the manure is handled in the aerobic BIDA® system, and (b) being able to demonstrate the extent to which the BIDA system is aerobic. It remains unclear how this aerobic activity will be demonstrated, but it is believed this might be achieved through monitoring of dissolved oxygen, by measuring chemical oxygen demand before and after the BIDA® system, and/or by analyzing destruction (oxidation) of volatile organic compounds. Alternatively, methane emissions may be measured on the front and back end of the BIDA® system. To the extent there is some anaerobic activity at a BIDA® installation for any reason, the project emissions may need to include a portion of modeled methane emissions from anaerobic breakdown of volatile solids.

Other emissions relevant to BIDA® system wastewater treatment would be the nitrous oxide emissions, presumed to be decreased over the baseline scenario due to a reduced load of nitrogen in the effluent. Most of these parameters come from default tables within the methodology or from IPCC default tables, with an option to estimate actual site-specific N2O emission factors associated with use of the BIDA® system. It remains unclear whether any site-specific emission factor measurements will be feasible or practical, or whether the results of nitrogen reduction shown in any peer reviewed studies can be utilized, but the reliance on IPCC factors may provide a conservative estimate of emission reductions.

Following the equations in ACM0010, Carbon Solutions Northwest estimate that emission reductions of five or more metric tons CO2e per cow per year can be achieved for every adult milking cow with a 100% anaerobic baseline. With the small scale BIDA® installed at the J&K Dairy, we note that the BioFiltro figure of ~60 square feet of BIDA® needed for each cow indicates that the system is sized for only a small portion of the herd.

Registration as an Offset Project and Monetization In order to register a dairy BIDA® system with a carbon offset registry, the first step will be to obtain a positive screening review from that registry to utilize the CDM methodology. Carbon Solutions Northwest is currently working with the American Carbon Registry (ACR) to obtain approval to use this methodology against their standard and allow for an opinion to be made as to whether the registration can be approved. This is a high-level screening of the methodology itself, as ACM0010 has not to our knowledge been utilized in any of the US voluntary offset registries. The Verified Carbon Standard (VCS) also accepts CDM methodologies subject to a similar screening process. Once a registry approves the listing of a project, the project developer must create a Project Description detailing project specifics, eligibility, additionality, and monitoring and quantification procedure. This is the document that must be submitted to a third-party validation/verification body to perform validation. The process of validation, including the development of a Project Description, generally takes five to six months.

23

A validated project will be able to achieve carbon credits generally on an annual basis (longer or shorter reporting periods are allowed) on an ex-post basis, relying on actual project performance and the project’s ability to monitor all the required parameters that allow for a successful verification effort. 3Degrees manages such efforts for clients, and then monetizes the carbon offset credits once verification is complete and the credits have been issued.

Financial Viability Carbon Solutions Northwest anticipates a minimum of 5 MTs of GHG reductions per cow per year. Given fixed costs associated with developing and registering the carbon project, as well as annual verification and credit-registration costs, herd size matters. To illustrate, Carbon Solutions Northwest prepared four financial scenarios assuming treatment of 100% of manure from four herd sizes using the following assumptions:

1. Annual MTs GHG reductions per cow = 5. 2. Gross value per MT / per credit = $3.50. 3. Project Duration = 10 years. (This is consistent with Clean Development

Mechanism (CDM) / American Carbon Registry (ACR) / Verified Carbon Standard (VCS) rules.)

4. Year #1 project-registration costs, including preparation of the Project Design Document (PDD), work with the relevant carbon registry, and Year #1 Project Verification = $35,000.

5. Annual project-verification cost for years #2 through #10 = $10,000. 6. The cost to register each issued credit = $0.21. (This too is consistent with CDM /

ACR / VCS practice.)

Given these assumptions, the following herd sizes result in the following profits / losses:

a. When herd size = 1,000 animals: $39,500. b. When herd size = 1,500 animals: $121,750. c. When herd size = 2,000 animals: $204,000. d. When herd size = 5,000 animals: $697,500.

Financial Modeling - GHG Reductions Associated with Use of the BIDA System – 10 Year Project Length

# of

Cows Treated

by BIDA® System

# of Registered

Credits (5 per cow)

Gross Project

Revenue (10 years)

Year #1 PDD/

Registration Costs

Total Project

Verification Costs

($10,000 per year)

Total Credit Registration

Costs (10 years @

$0.21 per credit per

year)

Total Project Costs

Net Carbon

Profit/Loss

1,000 5,000 $175,000 $25,000 $100,000 $10,500 $135,500 $39,500

1,500 7,500 $262,500 $25,000 $100,000 $15,750 $140,750 $121,750

2,000 10,000 $350,000 $25,000 $100,000 $21,000 $146,000 $204,000

5,000 25,000 $875,000 $25,000 $100,000 $52,500 $177,500 $697,500

24

With the above context in mind, Carbon Solutions Northwest recommends developing carbon credits when treating 100% of manure effluent from 1,500 or more animals keeping in mind that any or all the factors listed above may change over a 10-year project crediting period. As such, prudent project developers will want to ensure adequate margin to ensure a reasonable profit.

Importantly, it may be possible to secure a higher price for carbon if a specific buyer can be identified in advance, e.g.: a company or university that has made an internal commitment to offset GHG emissions. However, opportunities to secure this type of pricing cannot be relied upon. Therefore, a conservative approach has been taken in the analysis above.

Recommendations Following technical and financial review of Organix’ pilot project at J&K Dairy, Carbon Solutions Northwest recommends that project proponents / developers use ACM0010: GHG Emission Reductions from Manure Management Systems to quantify, register, verify, and monetize GHG reductions at dairies when manure from 1,500 or more animals will be processed using the BioFiltro BIDA® system. Further testing and analysis may be required to quantify destruction of organic compounds under aerobic conditions and/or to quantify reduced methane emissions, however, appropriate testing of the BioFiltro BIDA® system should reveal significant methane avoidance and oxidation of organic material found in animal manure. As such, this technology may offer an effective, low-cost approach to reduce methane emissions at Confined Animal Feeding Operations (CAFOs) that currently store manure in uncovered lagoons without benefit of an anaerobic digester. Carbon Solution Northwest’s report summary and financial estimations are attached.

If relevant an assessment of potential federal, state and private cost-share funds to support implementation and operation of the technology on dairy farms. If accepted by the National Resource Conservation Service of the U.S. Department of Agriculture as an improved conservation technology, installation of BioFiltro BIDA® systems on dairy farms may become eligible for the EQIP (Environmental Quality Incentives Program). This program provides technical assistance for planning and financial assistance for EQIP eligible producers.

Assumptions:

Registered Carbon Credits = 5 per cow per year (5 Metric Tons (MT) GHG Reductions per Cow/Year)

Revenue per Registered Carbon Credit per year = $3.50

Cost per Registered Credit - $0.21 per year

Annual Verification Cost = $10,000

25

Assessment of potential positive and negative impacts to soil, water (surface and ground) and/or air created by the technology being evaluated. BioFiltro BIDA® systems have significant positive impacts to surface and ground water by cleaning nearly all suspended solids from dairy wastewater and reducing nitrogen (into the form of atmospheric nitrogen N2), phosphorus and total dissolved solids by greater than 90%. Treated water can be reused by flush dairies or applied to land with no restrictions. As stated earlier, the potential negative impacts to water and soil surrounding lagoons storing BIDA®-treated water is minimal because of the major removal of total nitrogen, particularly ammonia. Aerobic BioFiltro BIDA® technology improves air quality by eliminating lagoon storage (major source of methane emissions on dairy farms). It also reduces nuisance odor complaints by mitigating H2S. Finally, the byproducts of BioFiltro BIDA® technology, worm castings and worm tea, are rich sources of plant nutrients and beneficial microbiology that have valuable soil building properties. Applications of either can improve crop yield or convert marginal land to agricultural use.

Benefits and challenges to the scalability of the technology for various size dairy operations. BioFiltro BIDA® systems are fully scalable for large and small dairies. For large dairies, the feasibility of installation is only limited by the availability of land, since these systems are open-air pits. As an example, Royal Dairy’s current BIDA® system is ~2 acres and processes 150,000 gallons of wastewater per day or ~20% of its total daily output; it will soon be expanded to 6 acres and will process all the total daily output of 700,000 gallons. For small dairies (100 cows and up) a single M1 unit is feasible. It can have additional units piggy-backed onto it to increase capacity. An ecology block version of the pit system is in development for intermediate size dairies which will make it easy to scale the system as the dairy size grows. The technology is versatile and BIDA® systems can be designed for each unique dairy, depending on its size, its manure management system (total suspended solids in its wastewater) and its location (rainfall amounts).

Recommendations for future “next steps” in the possible broader implementation of the technology being evaluated. Organix intends to pursue the following avenues in order to encourage broader implementation of the BioFiltro BIDA® system technology.

• Establish distribution networks for residuals which may ultimately lower costs for unit capital costs.

26

• Tell the story about how conventional dairies provide certifiable susbstrates for the organic crop industry.

• Circulate data gathered from this project for “white paper” review. Prepare the results as an article for publication in a dairy industry journal.

• Leverage the story about how dairies are cleaning water, lowering pollution, mitigating nitrogen concerns, reducing GHG, and improving community soils through castings.

References

1. Erickson, D., 1992. Ground water quality assessment, Whatcom County dairy lagoon #2, Lynden, Washington. Washington State Department of Ecology

2. The Ohio State University Soil Ecology Laboratory, Publications on Earthworms

and Vermiculture, 2003 - 2008.

3. Cornell University Department of Plant Pathology and Plant Microbe Biology, Vermicompost Research.

4. U.S. Department of Agriculture, "Earthworm Tea Good for Plants," August 2009.

ADDENDUM

Original reports of data summarized in the Final Report.

http://www.biosci.ohio-state.edu/~soilecol/NewPubs1.htm

http://www.biosci.ohio-state.edu/~soilecol/NewPubs1.htm

http://cwmi.css.cornell.edu/vermicompost.htm#vermicompost

http://nifa.usda.gov/newsroom/impact/2009/sbir/08101_earthworm_tea.html

Report of AnalysisOrganix

19-Jun-19

Attn: Jerad Ashbeck

Authorized Signature:

For:

Analyte Method Reporting Limit Result

Collection Date: 5/30/2019191134-01Lab Sample ID:

Site:Client Sample ID:J & K Dairy Influent

Organix Inc 1:45 PM

Analyst Units

1730Nitrogen, total (as N) mg/L Calculated mg/LKKC

< 0.05Nitrate (as N) mg/L EPA 300.0 mg/Lmah 0.05

0.50Nitrite (as N) mg/L EPA 300.0 mg/Lmah 0.05

6400Total dissolved solids mg/L SM 2540C mg/LALH 500

9700Total suspended solids mg/L SM 2540D mg/LALH 500

See AttachedTotal kjeldahl nitrogen mg/L SM 4500NORGC mg/LDOH

See AttachedBiochemical oxygen demand

mg/L SM5210-B mg/LDOH



Site:Client Sample ID:J & K Dairy Effluent

Organix Inc 1:45 PM

Analyst Units


< 0.05Nitrate (as N) mg/L EPA 300.0 mg/Lmah 0.05







ND = Not Detected

Page 1 of 1350 Hills Street, Suite 107Richland, WA 99354-5511(509) 377-8058

Report of AnalysisOrganix

19-Jun-19

Attn: Jerad Ashbeck


For:

Samples analyzed after holding time



Site:Client Sample ID:J&K Dairy Influent

11:55 AM

Analyst Units

mg/L Calculated mg/LKKC

mg/L EPA 300.0 mg/LAMP 0.05


mg/L SM 2540C mg/LALH 500

mg/L SM 2540D mg/LALH 500

mg/L SM 2540E mg/LDOH

mg/L SM 4500NORGC mg/LDOH

Nitrogen, total (as N) 1283

Nitrate (as N) 0.18

Nitrite (as N) 0.50

Total dissolved solids 5000

Total suspended solids 3900

Volatile suspended solids See Attached

Total kjeldahl nitrogen See Attached

Biochemical oxygen See Attached

demandmg/L SM5210-B mg/LDOH



Site:Client Sample ID:J&K Dairy Efflent

11:45 AM

Analyst Units


< 0.05Nitrate (as N) mg/L EPA 300.0 mg/LAMP 0.05

0.32Nitrite (as N) mg/L EPA 300.0 mg/LAMP 0.05



See AttachedVolatile suspended solids mg/L SM 2540E mg/LDOH







Site:Client Sample ID:J&K Dairy Pond Water

11:40 AM

Analyst Units

mg/L Calculated mg/LKKC








Nitrate (as N) 0.21

Nitrite (as N) 0.61







ND = Not Detected


Report of Analysis

Organix

28-Jun-19

Attn: Jerad Ashbeck


For:


Collection Date: 6/11/2019

191184-01Lab Sample ID:

Site:

Client Sample ID:J&K Dairy - Pond

2:00 PM

Analyst Units

mg/L Calculated mg/Lmah

mg/L EPA 300.0 mg/Lmah 0.25







Nitrate (as N) 0.34

Nitrite (as N) < 0.25










Site:

Client Sample ID:J&K Dairy - Influent

2:05 PM

Analyst Units









Nitrate (as N) < 0.25








Page 1 of 2350 Hills Street, Suite 107

Richland, WA 99354-5511

(509) 377-8058




Site:

Client Sample ID:J&K Dairy - Effluent

2:08 PM

Analyst Units

98.8Nitrogen, total (as N) mg/L Calculated mg/Lmah

1.1Nitrate (as N) mg/L EPA 300.0 mg/Lmah 0.25






See AttachedBiochemical oxygen

demand


ND = Not Detected



(509) 377-8058

Report of Analysis

Organix

28-Jun-19

Attn: Jerad Ashbeck


For:




Site:


1:26 PM

Analyst Units









Nitrate (as N) 0.29











Site:


1:30 PM

Analyst Units

911Nitrogen, total (as N) mg/L Calculated mg/Lmah

<0.25Nitrate (as N) mg/L EPA 300.0 mg/LAMP 0.25

<0.25Nitrite (as N) mg/L EPA 300.0 mg/LAMP 0.25






demand




(509) 377-8058




Site:


1:34 PM

Analyst Units

66.6Nitrogen, total (as N) mg/L Calculated mg/Lmah

4.0Nitrate (as N) mg/L EPA 300.0 mg/LAMP 0.25


3200Total dissolved solids mg/L SM 2540C mg/LALH 12.5





demand


ND = Not Detected



(509) 377-8058

Report of Analysis

Organix

01-Jul-19

Attn: Jerad Ashbeck


For:

Results by July 1, 2019




Site:


8:50 AM

Analyst Units

mg/L Calculated mg/LAMP



mg/L SM 2540C mg/LAMP 500

mg/L SM 2540D mg/LAMP 500




Nitrate (as N) 0.29

Nitrite (as N) <0.25










Site:


8:56 AM

Analyst Units

mg/L Calculated mg/LAMP



mg/L SM 2540C mg/LAMP 1000

mg/L SM 2540D mg/LAMP 1000




Nitrate (as N) <0.25

Nitrite (as N) <0.25









(509) 377-8058




Site:


9:12 AM

Analyst Units

83.0Nitrogen, total (as N) mg/L Calculated mg/LAMP

0.67Nitrate (as N) mg/L EPA 300.0 mg/LAMP 0.25


4500Total dissolved solids mg/L SM 2540C mg/LAMP 25

120Total suspended solids mg/L SM 2540D mg/LAMP 25




demand


ND = Not Detected



(509) 377-8058

qlrilr

PUBLICfuffi?revent, . ?rofiote . ?rclect, "Always \,to*ino lor a 6afa. ana hcallhicr community.'

412 W Clork Streel r Posco, WA 99301 . Phone: l5}9l 547-9737

July 1, 2019

Environmental Services Laboratory350 Hill Street, Suite 107

Richland, WA 99354

To Whom lt May Concern:

The following results are from samples submitted to our laboratory for analysis on June

26,2OIg. All analyses were performed using methods outlined in standard Methods for

the Examination of water and wastewater, 21st edition. lf you need additional

information, please contact Britt Wilkins at (509) a60-a206

Sincerely,

Britt WilkinsLaboratory Supervisor

r,474J&KDairyPondt9r227-Ol

J&KDairylnfluentt9L227-O2

& K Dairy Effluent791227-O3

o zl02 w Okon€on Ploce

Kennewick, WA 99336Phoner (sll9) i|6Oa2{!O

o 412 W Clork SlreelPosco, WA 99301Phone: (5{19) 5a7-9737

O 3l0 76 5r€61Prosser, WA 99350Phone: (5t!9) 7t&l63il

o 7102 W Okon€on PlocsKennewick, WA 99336Phone: {3119) 46Ga2O{!

Reportpreparedfor:OrganixRussDavis120EBirchStSuite9WallaWalla,ORWAUSA

ForinterpretationofthisreportpleasecontactyourlocalSoilStewardorthelab.

ReportSent: 19Apr2019Sample#: 01-129454UniqueID: Castings

MaterialType: CompostInvoiceNumber: 17389

SampleRecieved: 04Apr2019

PlantAvailableNutrients

TEST RESULTS(ppm) POUNDS/TON

pH 9.4 6.5-7.5Calcium(Ca) 504 444-550HumusContent 51.7% 12+%SolubleSalts 1184.8 177-426Nitrates(NO3) 220 10-20Ammonium(NH4) 0.60 5-15Phosphate(HPO4) 588 2-5Potassium(K) 1380 5-25Magnesium(Mg) 381 99-122Iron(Fe) 1.92 0.5-5.0Manganese(Mn) 2.79 0.5-5.0Boron(B) 1 0.06-0.5Copper(Cu) 0.36 0.06-0.5Zinc(Zn) 0.55 0.3-3.0Sulfates(SO4) 179 4-15Chlorides(Cl) 210 0-30

Notes

Earthfort,LLC635SWWesternBlvdCorvallis,OR97333+1(541)[email protected]://earthfort.com




MaterialType: CompostInvoiceNumber: 17389

SampleRecieved: 04Apr2019

PathogenAnalysis

TEST RESULTS Method

Salmonella notdetected SDIXEColi notdetected IDEXXFecalColiformE.coliO157:H7

notdetected PCR

TotalColiform

Notes TheUSCompostingguidesayslessthan4MPN/gofSalmonellaandlessthan1000MPN/gofe.coliandTotalColiforms.


NitrogenCyclingPotential




InvoiceNumber: 17389SampleRecieved: 04Apr2019

CompostDetail

AssayName Result Units DesiredLevel Commentary

OrganismBiomassDataDryWeight 0.32 N/A 0.20to0.80 Withinnormalmoisturelevels.ActiveFungi 8.46 µg/g >3.00 Fungalactivitywithinnormallevels.-TotalFungi 1,906.76 µg/g >300.00 Goodfungalbiomass.-Fairfungaldiversity.Hyphaldiameter:1.5to7.5µm.HyphalDiameter 2.75 µm >2.50 Goodbalanceoffungi.-ActiveBacteria 120.53 µg/g >3.00 Bacterialactivitywithinnormallevels.TotalBacteria 1,251.73 µg/g >300.00 Goodbacterialbiomass.-Actinobacteria 80.58 µg/g

OrganismBiomassRatios

TF:TB 1.52 0.01to10.00 Balancedfungalandbacterialbiomass.

AF:TF 0.00 <0.10 Goodfungalactivity.AB:TB 0.10 <0.10 Goodbacterialactivity.

AF:AB 0.07 0.01to10.00 Fungaldominated,becomingmorebacterial.

Protozoa(Protists)Flagellates 86,534.31 number/g >10,000.00 Shouldprovideagoodinoculumofprotozoa.Amoebae 1,795,728.84 number/g >10,000.00Ciliates 2,596.72 number/g <18823.00

300+ lbs/acre Nitrogenlevelsdependentonplantneeds.Estimatedavailabilityovera3monthperiodNematodes

Nematodes 16.70 number/g >10.00 Goodnumbers,somediversity.Bacterial 16.36 number/gFungal 0.00 number/gFungal/Root 0.00 number/gPredatory 0.34 number/gRoot 0.00 number/g

MiscellaneousTesting

E.coli NotOrdered CFU/g <800.00 Formostareas,themaximumE.coliCFU/gis800-1000.Pleasecheckyourlocalregulationsformoreinformation.-

pH NotOrderedElectricalConductivity NotOrdered µS/cm <1000.00

CompostNotes:Bio/LTRORC






#pergramClassifiedbytypeandidentifiedtogenus.Ifsectionisblank,nonematodesidentified.

NematodeDetail

NematodeGenus number/g Units Group CommonName

Butlerius 7.84 number/g BacterialFeedersCuticularia 4.43 number/g BacterialFeedersDiploscapter 1.36 number/g BacterialFeedersPanagrolaimus 0.34 number/g BacterialFeedersRhabditidae 2.39 number/g BacterialFeedersSeinura 0.34 number/g Predatory






CompostBiologyReport

Assay BelowRange DesiredRange AboveRange Range Result

DryWeight 0.2-0.8 0.32

ActiveFungi >3µg/g 8.46µg/g

TotalFungi >300µg/g 1,906.76µg/g

ActiveBacteria >3µg/g 120.53µg/g

TotalBacteria >300µg/g 1,251.73µg/g

TF:TB 0.01-10 1.52

AF:TF <0.1 0.00

AB:TB >0 0.10

AF:AB 0.01-10 0.07

Flagellates >10000/g 86,534.31/g

Amoebae >10000/g 1,795,728.84/g

Ciliates <18823/g 2,596.72/g

Nematodes >10/g 16.70/g


LAB REPORT SUMMARY: ORGANIX, CASTINGS, WALLA WALLA, WA

The sample labeled Castings, dated 3/28/2019, from Organix was received by the lab. Analysis was completed and results sent on 4/19/2019. We have processed over 5000 compost samples in the last few years and this is a rarity. All the biological assessment levels where excellent. Total biomass for bacteria and fungi were very good, with a slightly preference for fungi. Active biomass for bacteria and fungi were well below the 10% required for "Mature" compost indication. Protozoa populations were also quite good, indicating that the natural nutrient cycling process is working correctly and will contribute to good health of the plants. Nematode populations were a little low in diversity, but the beneficial bacterial feeding population was well above average. The addition of a predatory nematode bodes well for crops that may be susceptible to root feeding nematodes. No Salmonella or E. coli were detected in this material. The Plant Available Nutrient analysis revealed an abundance of nutrient and this material should do well from the fertility perspective. Overall this is a very good worm casting compost, utilized as a soil amendment at 25-50 pounds per 1000 square feet, or as a component in a container soil mix at 5-15%. These recommended uses are only a starting guideline, dependent on crop and current conditions of the soil. Matthew Slaughter Director, Earthfort Labs

+1 541-257-2612

[email protected]

www.earthfort.com

@earthfortllc

635 SW Western Blvd, Corvallis OR 97333

mailto:[email protected]

http://www.earthfort.com/

5/16/2019C-GRO INC.

402 W FIRST AVE

Date Received:

Ritzville , WA 99169

BIONUTRIENTSField I.D.

M19-01322Lab Sample ID:

Grower: ROYAL DAIRY

Grower Account #:

Grower Sample ID

Liquid

8.295

lb/gal

0.994

g/cc

Density:

TOTALELEMENTS

- - - - - - - - - - - - - - - - - - Density Corrected - - - - - - - - - - - - - - - - - -ppm(mg/L) lbs/1000 gal lbs/gal lbs/ton

As Analyzedmg/kg

TN 0.0046554 1.114.62557

TC 0.01241484 2.9912.371493

P 0.000555 0.110.4655

P205 0.0011126 0.251.05127

K 0.01491785 3.5914.881795

K20 0.01792142 4.3117.862155

S 0.0012138 0.281.15139

Ca 0.0014163 0.331.36164

Mg 0.0022266 0.532.22267

Na 0.00871038 2.098.651044

AVAILABLE

NH4-N 0.000333 0.070.2833

NO3-N 0.0020240 0.482.00242

pH (1:5) 8.3

E.C. (1:5) 8.23

Zn 0.00000.7 0.0010.0060.7

Mn 0.00000.6 0.0010.0050.6

Cu 0.00000.5 0.0010.0040.5

Fe 0.00016.4 0.0130.0536.5

B 0.00000.7 0.0010.0060.7

Cl

$65.00This is your Invoice #: List Cost:KEBReviewed by:M19-01322 Account #: 139800

We make every effort to provide an accurate analysis of your sample. For reasonable cause we will repeat tests, but because of factors beyond our control

in sampling procedures and the inherent variability of manure, our liability is limited to the price of the tests. Note: "u" indicates that the element was

analyzed for but not detected

5/16/2019C-GRO INC.

402 W FIRST AVE

Date Received:

Ritzville , WA 99169

BIONUTRIENTSField I.D.

M19-01322Lab Sample ID:

Grower: ROYAL DAIRY

Grower Account #:

Grower Sample ID

Liquid

C:N 2.7

$65.00This is your Invoice #: List Cost:KEBReviewed by:M19-01322 Account #: 139800

We make every effort to provide an accurate analysis of your sample. For reasonable cause we will repeat tests, but because of factors beyond our control

in sampling procedures and the inherent variability of manure, our liability is limited to the price of the tests. Note: "u" indicates that the element was

analyzed for but not detected

June 2019 - PLANT TEST SUMMARY: ROYAL DAIRY BIO-WATER/CASTINGS TEST USING NURSERY POTTED PLANTS

ROYAL DAIRY – ROYAL CITY, WASHINGTON

Vermi-filtration is a biological treatment process during which earthworms (e.g., Eisenia fetida) and microorganisms reduce the organic load of animal waste and wastewater. Associated with this biological treatment process a Bio-Filtration system has been implemented so that wastewater can be used for crop applications. These are the products used for this plant test.

As a start for this experiment, I selected a variety of nursery plant families. Some have tolerance and some plants are limited in their tolerance to natural product applications for inducing growth and production in the plant. The selection of the families was random but individual plant/pot selection was measured for equal size of the plant and plant health at the beginning of the test. I selected a check group of plants that I applied natural garden variety fertilizer containing 4% nitrogen; 4 % phosphorus; 0 potassium (as it was already in the potting mix); and 2% sulfur. This process was influenced by a similar test performed in 2003.

I was testing manufactured products not made of chemicals. (compost tea made using many derivatives of worm castings to make a microbial charged liquid). Testing bio-inoculated compost made from different natural sources. Testing offal from fish processing plants as an alternative to chemical nitrogen. Testing filtered for sodium reduced ocean water and its viability to provide the 90 elemental nutrients found in the atomic table. The goal was to find what recipes or formula would work or not work in production agriculture. The three years of this type of testing served me well in determining how to put together product combinations and recipes for the many variety of plant families grown in the Northwest as food for society. Today, these products along with their formulation have been applied on thousands of acres.

In this specific Bio-Water & solids test, the plant species I used summarize the following in addition to the percent plant growth that is listed in the test document.

It is my opinion that when injecting the Bio-Water over or through the castings into the growing region of the plant roots a better plant performance is measured. Also, the eye-ball test shows not only increased growth but better plant vigor. Healthier and broader stems and leaves are obvious. Further testing is needed for the stand along Bio-Water application.

I suggest that enough information was gathered to do a field test on acreage using the following formula. TEST 1: I suggest independent of any casting’s application, a fertigation of 60 gallons per acre of the Bio-Water semi-monthly on a crop during plant growing cycle. TEST 2: A one-time seasonal application of castings equivalent to two tons per acre. In addition, apply 60 gallons per acre of the Bio-Water on top of the 2 ton/acre of castings. There are microbial organisms in the castings and far fewer in the Bio-Water that will jointly be beneficial to increase nutrients to the plants and help structure in the soil. Test #2 would be the next step of a 4-step test process in the journey to find the best application formula for crops and would then provide a cost price analysis for the products competitive viability in competing with other nutrient programs in the Agriculture community of this region.

I have liquified the castings and studied that liquification under the microscope observing good populations of beneficial microbes. In the Bio-Water the organisms observed were limited in volume and microbial family diversity.

Respectfully Offered,

Arnie

Arnie Moeller C-Gro, Inc. 402 W. 1st Avenue Ritzville, WA 99169 509 660 0832

6-03/2019 - 6-09/2019 WEEK #2 plant growth measurements IN % June 09, 2019!

Applications, rates AND Growth Results

Royal Dairy – Bio-Water/Castings Growth & Development tests on ornamental plants

The following test was performed in order to determine the validity of the Bio-water from the Royal Dairy, Royal City, Washington on plant development. Garden variety plants were selected for this test due to their sensitivity to nutrients. The testing plants were stressed and randomly selected from Nursery Stock. The variety species selected were purposely picked in order to determine the influence of growth from the Bio-Water over different families of plants. Bio-Water was the only liquid given to treated plants. Tap water was only used on Base Check Plants.

5-27/2019 - 6-02/2019 WEEK #1 plant growth measurements IN % from start DATE!


PLANTS Species BASE CHECK

PLANT/granular dry fertilizer 4-4-0-2% PLANT #2 1 OZ RATE PLANT #3 1.5 OZ RATE

PLANT #4 2.0 OZ RATE

Dracenia 1oz H20 Daily 1oz Bio-H20 daily

Growth +1% over check

1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Snapdragon Annual 1oz H20 Daily

1oz Bio-H20 daily Growth +1% over check

1.5oz Bio-H20 daily


2 oz Bio-H20 daily Growth +1% over check

French Marigolds Annual 1oz H20 Daily


1.5oz Bio-H20 daily



Ferns Perennial 1oz H20 Daily


1.5oz Bio-H20 daily



Alysum Annual 1oz H20 Daily


1.5oz Bio-H20 daily



PLANTS Species

BASE CHECK PLANT

granular dry fertilizer

4N-4P-0-2S

(4 grams WKLY)

PLANT #2

2.0 OZ RATE Bio-H20

Only

PLANT #3

3.0 OZ RATE Bio-H20

Only

PLANT #4

4.0 OZ RATE Bio-H20

Only

Dracenia 1oz H20 Daily

2oz Bio-H20 daily

Wkly Growth +3% over check

3.0oz Bio-H20 daily


4.0oz Bio-H20 daily


Snapdragon

Annual 1oz H20 Daily

2oz Bio-H20 daily


3.0oz Bio-H20 daily


4 oz Bio-H20 daily


French Marigolds


2oz Bio-H20 daily


3.0oz Bio-H20 daily


4 oz Bio-H20 daily


Ferns

Perennial 1oz H20 Daily

2oz Bio-H20 daily


3.0oz Bio-H20 daily


4 oz Bio-H20 daily


Alysum


2oz Bio-H20 daily


3.0oz Bio-H20 daily


4 oz Bio-H20 daily




PLANTS Species

BASE CHECK PLANT


4N-4P-0-2S

(4 grams WKLY)

PLANT #2

4.0 OZ RATE Bio-H20

Only

PLANT #3

6.0 OZ RATE Bio-H20

Only

PLANT #4

8.0 OZ RATE Bio-H20

Only

Dracenia 1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Snapdragon

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


French Marigolds

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Ferns

Perennial

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Alysum

Annual 1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily



DAIRY BIO-CASTINGS ADDED TOPICAL ON JUNE 17, 2019 @ 14.5 GRAMS PER PLANT.


PLANTS Species

BASE CHECK PLANT


4N-4P-0-2S

(4 grams WKLY)

PLANT #2

6.0 OZ RATE Bio-H20

+ Castings

PLANT #3

7.0 OZ RATE Bio-H20

+ Castings

PLANT #4

8.0 OZ RATE Bio-H20

+ Castings


Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Snapdragon

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


French Marigolds

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Ferns

Perennial

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Alysum


Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily



DAIRY BIO-CASTINGS ADDED TOPICAL ON JUNE 17, 2019 @ 14.5 GRAMS PER PLANT. Applications, rates AND Growth Results

PLANTS Species

BASE CHECK PLANT


4N-4P-0-2S

(4 grams WKLY)

PLANT #2

6.0 OZ RATE Bio-H20

+ Castings

PLANT #3

7.0 OZ RATE Bio-H20

+ Castings

PLANT #4

8.0 OZ RATE Bio-H20

+ Castings


Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Snapdragon

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


French Marigolds

Annual

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Ferns

Perennial

1oz H20 Daily + 4g

Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


Alysum


Fertilizer weekly

1oz Bio-H20 daily


1.5oz Bio-H20 daily


2 oz Bio-H20 daily


CLOSING RESULTS OF GROWTH RATES FOR ALL PLANTS DURING TRIAL ACCORDING TO PRODUCTS APPLIED!

PLANTS Species

BASE CHECK granular dry fertilizer

4N-4P-0-2S

(4 grams WKLY)

PLANT #2

6.0 OZ RATE Bio-H20 +

2 wks of Castings

PLANT #3


2 wks of Castings

PLANT #4


2 wks Castings

Dracenia

Check 5 weeks

Growth Total

24.0%

5 Wk Growth Total

+37.0%

5 Wk Growth Total

+38.0%

5 Wk Growth Total

+42.0%

Snapdragon

Annual

Check 5 weeks

Growth Total

30.0%

5 Wk Growth Total

+41.0%

5 Wk Growth Total

+43.0%

5 Wk Growth Total

+38.0%

French Marigolds

Annual

Check 5 weeks

Growth Total

30.0%

5 Wk Growth Total

+41.0%

5 Wk Growth Total

+43.0%

5 Wk Growth Total

+40.0%

Ferns

Perennial

Check 5 weeks

Growth Total

25.0%

5 Wk Growth Total

+49.0%

5 Wk Growth Total

+43.0%

5 Wk Growth Total

+44.0%

Alysum

Annual

Check 5 weeks

Growth Total

28%

5 Wk Growth Total

+39.0%

5 Wk Growth Total

+49.0%

5 Wk Growth Total

+38.0%

4110 SE Hawthorne Blvd.

Suite #433 Portland, Oregon 97214

Office: +1-503-460-9502 Mobile: +1-971-221-8479

E-mail: [email protected] Web: www.carbonsolutionsnorthwest.com

Via e-mail:

[email protected]

Russ Davis

President

Organix

120 E. Birch Street, Suite 9

Walla Walla, WA 99362

Cc: [email protected]

Nick Facciola

Director, Carbon Projects

3Degrees, Inc.

407 Sansome Street

4th Floor

San Francisco, CA 94111

Dear Russ:

This is a summary of the technical considerations associated with registration of BioFiltro’s BIofilter

Dynamic Aerobic (“BIDA”) system as a carbon offset project. As you know, we have identified a primary

contender for the most suitable of Clean Development Mechanism (CDM) methodologies for this

application, which is ACM0010: GHG Emission Reductions from Manure Management Systems. We

believe this methodology adequately addresses the methane reductions from the BIDA system as well as

the reduction in nitrous oxide emissions. Below is a brief discussion of the applicability of the identified


http://www.carbonsolutionsnorthwest.com/


methodology, the monitoring and quantification that would result under that methodology, and the

process for registration and monetization of offsets.

Applicability

ACM0010 may be the most applicable of available carbon offset methodologies for the BIDA system. It

broadly applies to project activities that include displacement of a more GHG-intensive manure

management system of livestock farming through introduction of a new animal waste management

system that results in fewer GHG emissions. When the baseline manure management system is an

uncovered anaerobic lagoon, the introduction of the aerobic BIDA system will qualify as a system that

results in fewer GHG emissions.

Monitoring and Quantification

ACM0010 requires that the baseline methane emissions resulting from the anaerobic lagoon be

quantified based on the number of animals contributing manure to the lagoon, the fraction of manure

from those animals handled in the lagoon, and a series of variables obtained from lookup tables to

represent the amount of methane-production potential from the volatile solids presumed to be

generated by the animals. These lookup tables allow for a simplified approach to baseline methane

emissions modeling. As such, required monitoring will consist of monthly herd counts by classification

(milking, dry, heifers and calves). The baseline nitrous oxide emissions from direct nitrogen excretion

and from indirect atmospheric deposition of nitrogen on soils and water surfaces are based upon the

same animal counts and other lookup tables of default emission factors.

The emissions from the project scenario are based upon the Intergovernmental Panel on Climate

Change (IPCC) guidelines that specify emissions from aerobic systems as 0.1 percent of total methane

generating potential of the waste processed. Thus, the primary monitoring is based upon (a) how much

of the manure is handled in the aerobic BIDA system, and (b) being able to demonstrate the extent to

which the BIDA system is aerobic. It remains unclear how this aerobic activity will be demonstrated, but

it is believed this might be achieved through monitoring of dissolved oxygen, by measuring chemical

oxygen demand before and after the BIDA system, and/or by analyzing destruction (oxidation) of volatile

organic compounds. Alternatively, it may be possible to measure the presence of methane on the front

and back end of the BIDA system. To the extent there is some anaerobic activity at a BIDA installation for

any reason, the project emissions may need to include a portion of modeled methane emissions from

anaerobic breakdown of volatile solids.

Other project emissions relevant to the BIDA system would be the nitrous oxide emissions, presumed to

indicate a decrease over the baseline scenario due to a reduced load of nitrogen in the effluent. Most of

these parameters come from default tables within the methodology or from IPCC default tables, with an

option to estimate actual site-specific N2O emission factors associated with use of the BIDA system. It

remains unclear whether any site-specific emission factor measurements will be feasible or practical, or

whether the results of nitrogen reduction shown in any peer reviewed studies can be utilized, but the

reliance on IPCC factors may provide a conservative estimate of emission reductions.

Following the equations in ACM0010, we estimate that emission reductions of five or more metric tons

CO2e per cow per year can be achieved for every adult milking cow with a 100% anaerobic baseline.

With the small scale BIDA installed at the J&K Dairy, we note that BioFiltro figure of ~60 square feet of

BIDA needed for each cow indicates that the system is sized for only a small portion of the herd.

Registration as an Offset Project and Monetization

In order to register a dairy BIDA project with a carbon offset registry, the first step will be to obtain a

positive screening review from that registry to utilize the CDM methodology. We are currently working

with the American Carbon Registry (ACR) to obtain approval to use this methodology against their

standard, and allow for an opinion to be made as to whether the registration can be approved. This is a

high-level screening of the methodology itself, as ACM0010 has not to our knowledge been utilized in

any of the US voluntary offset registries. The Verified Carbon Standard (VCS) also accepts CDM

methodologies subject to a similar screening process. Once a registry approves the listing of a project,

the project developer must create a Project Description detailing project specifics, eligibility,

additionality, and monitoring and quantification procedure. This is the document that must be

submitted to a third-party validation/verification body to perform validation. The process of validation,

including the development of a Project Description, generally takes five to six months.

A validated project will be able to achieve carbon credits generally on an annual basis (longer or shorter

reporting periods are allowed) on an ex-post basis, relying on actual project performance and the

project’s ability to monitor all the required parameters that allow for a successful verification effort.

3Degrees manages such efforts for clients, and then monetizes the carbon offset credits once

verification is complete and the credits have been issued.

Financial Viability

As indicated above, each year we anticipate a minimum of 5 MTs of GHG reductions per cow. Given

fixed costs associated with developing and registering the carbon project, as well as annual verification

and credit-registration costs, herd size matters. To illustrate, we prepared four financial scenarios

assuming treatment of 100% of manure from four herd sizes. When undertaking this exercise, we made

the following assumptions:

1. Annual MTs GHG reductions per cow = 5.

2. Gross value per MT / per credit = $3.50.

3. Project Duration = 10 years. (This is consistent with Clean Development Mechanism (CDM) /

American Carbon Registry (ACR) / Verified Carbon Standard (VCS) rules.)

4. Year #1 project-registration costs, including preparation of the Project Design Document (PDD),

work with the relevant carbon registry, and Year #1 Project Verification = $35,000.

5. Annual project-verification cost for years #2 through #10 = $10,000.

6. The cost to register each issued credit = $0.21. (This too is consistent with CDM / ACR / VCS

practice.)

Given these assumptions, the following herd sizes result in the following profits / losses:

a. When herd size = 1,000 animals: $39,500. b. When herd size = 1,500 animals: $121,750. c. When herd size = 2,000 animals: $204,000. d. When herd size = 5,000 animals: $697,500.

With the above context in mind, we recommend development of carbon credits when treating 100% of

manure effluent from 1,500 or more animals. After all, any or all of the factors listed above may change

over a 10-year project crediting period. As such, prudent project developers will want to ensure

sufficient margin to ensure a reasonable profit.

Importantly, it may be possible to secure a higher price for carbon if a specific buyer can be identified in

advance, e.g.: a company or university that has made an internal commitment to offset GHG emissions,

but we cannot rely upon opportunities to secure this type of pricing. As such, we have taken a

conservative approach in our analysis (above).

Conclusion:

Following technical and financial review of Organix’ pilot project at J&K Dairy, we recommend that

project proponents / developers use ACM0010: GHG Emission Reductions from Manure Management

Systems to quantify, register, verify, and monetize GHG reductions at dairies when manure from 1,500

or more animals will be processed using the BIofilter Dynamic Aerobic (“BIDA”) system. We anticipate

that further testing and analysis may be required to quantify destruction of organic compounds under

aerobic conditions and/or to quantify reduced methane emissions, yet we remain confident that

appropriate testing will reveal significant methane avoidance and oxidation of organic material found in

animal manure. As such, this technology may offer an effective, low-cost approach to reduce methane

emissions at Confined Animal Feeding Operations that currently store manure in uncovered lagoons

without benefit of an anaerobic digester.

Thanks for the opportunity to evaluate this technology’s ability to generate fungible carbon offsets; we

hope we may be of assistance in future.

Warm regards,

Alex D. Schay

Project Originator / Owner

Enclosure – Financial Analysis in Excel Format

Financial Modeling - GHG Reductions Associated with Use of the BIDA System:

MTs GHG

Reductions per

Cow / Year

# of Cows

Treated by

BIDA System

$$$ per MT Project

Duration

Gross Project

Revenue

Year #1

Registration

Costs (PDD,

Registration, &

Year #1

Verification)

Annual

Verification

Cost

Project

Duration 2

Total Project

Verification Costs,

excluding Year #1

5 1,000 3.50$ 10 175,000.00$ 35,000.00$ 10,000.00$ 10 90,000.00$

5 1,500 3.50$ 10 262,500.00$ 35,000.00$ 10,000.00$ 10 90,000.00$

5 2,000 3.50$ 10 350,000.00$ 35,000.00$ 10,000.00$ 10 90,000.00$

5 5,000 3.50$ 10 875,000.00$ 35,000.00$ 10,000.00$ 10 90,000.00$

Cost per

Registere

d Credit

# of

Registered

Credits

Annual Credit

Registration

Costs

Project

Duration

3

Total Credit

Registration

Costs for Life of

Project

Total Project

Costs

Net Carbon Profit

/ Loss

0.21$ 5000 1,050.00$ 10 10,500.00$ 135,500.00$ 39,500.00$

0.21$ 7500 1,575.00$ 10 15,750.00$ 140,750.00$ 121,750.00$

0.21$ 10000 2,100.00$ 10 21,000.00$ 146,000.00$ 204,000.00$

0.21$ 25000 5,250.00$ 10 52,500.00$ 177,500.00$ 697,500.00$

WSCC Final Report Organix Grant Project 2019Public Relations about the Project Once the M1 BIDA® unit was installed and operating, several opportunities arose to demonstrate its effectiveness

Documents