$5M in WA Climate Grants for $70M Manure-to-Energy Project

In a significant push to tackle agricultural greenhouse gas emissions, Washington state has allocated over $5 million in climate funding to a $70 million manure-to-energy project in Franklin County. The Washington State Department of Commerce announced it awarded a $2.5 million clean energy grant and a $2.53 million dairy digester grant to 5 D Farms, which partners with developer Stellar J Corp to build the facility. The project will transform cow manure — currently stored in open-air lagoons that release methane directly into the atmosphere — into pipeline-quality renewable natural gas (RNG) through anaerobic digestion and purification. This initiative is part of a broader state effort: the same week, the Department of Commerce disclosed $13.8 million in grants across seven dairy digester projects aimed at Washington’s roughly 250,000 milk-producing animals. Methane from livestock manure is a potent greenhouse gas, with a global warming potential more than 80 times that of carbon dioxide over a 20-year period, making such projects critical for near-term climate progress. Washington’s dairy digester program, funded by climate dollars, directly targets this agricultural emission source. The technology employed by Stellar J is a contained system that conditions and heats manure, promotes methane production in a hydrolysis chamber, then digests it in tanks before piping the raw biogas to a purification unit. The result is biomethane that can be injected into existing gas pipelines, providing a carbon-neutral fuel for heating, electricity, or transportation. This approach completely controls methane and CO2 emissions that would otherwise escape, turning a waste product into a revenue stream. Stellar J typically builds, owns, and operates such digesters and secures buyers for the RNG, a model that reduces financial risk for farms while generating returns from gas sales and potential environmental credits. From a climate policy perspective, the grants signal Washington’s commitment to reducing short-lived climate pollutants. The state’s greenhouse gas inventory consistently ranks agriculture as a major methane source, with dairy and beef operations contributing the bulk. The digester program represents a targeted intervention that also advances rural economic resilience, as noted by Sara Clifthorne, interim director of the Department of Commerce: “These dairy projects cut emissions and boost the resiliency of rural communities.” However, the project’s $70 million total cost, with only $5.03 million from grants, underscores the heavy capital investment required — the balance must come from private capital, debt, or other incentives. This highlights both the opportunity and the challenge of scaling such climate solutions: while RNG can command premium prices in states with low-carbon fuel standards (LCFS) like California, project developers must navigate complex financing, feedstock supply agreements, and interconnection hurdles. Notably, Washington’s own clean fuel standard has been proposed but not enacted, which could limit in-state demand for RNG compared to neighboring markets. Still, with increasing pressure to cut methane — reinforced by the Global Methane Pledge and federal methane reduction strategies — dairy digesters are gaining traction nationwide. This Franklin County project, if successful, could serve as a template for other farms in the region. The timing aligns with federal incentives under the Inflation Reduction Act, which expanded tax credits for biogas and RNG, potentially bolstering the project’s economics. Looking ahead, monitoring the seven funded projects will provide insights into whether Washington’s approach delivers measurable methane reductions at scale and whether the economic benefits truly flow to rural communities. As climate finance becomes more competitive, the outcome of these $13.8 million in grants will be watched by other states seeking to reconcile agricultural viability with climate mandates.