by Chad Jones

The anaerobic digester, to be used in Idaho, will provide enough renewable energy to power approximately 650 homes.

DALLAS — On Wednesday, Dean Foods Company (NYSE:DF) announced that it has begun development of an anaerobic digester, also known unofficially as a poop-to-power energy system.

What the anaerobic digester will do is capture animal waste from the farm's approximately 4,700 dairy cows, extract the naturally-occurring methane found within said waste, and use said methane to generate electricity.

"Managing greenhouse gas emissions and animal waste is one of the dairy industry's biggest challenges," said Gregg Engles, Chairman and CEO of Dean Foods, in a recent press release. "And we are very pleased that Big Sky Dairy has agreed to be our partnership's initial project."

The digester project, located on the Big Sky Dairy farm near Gooding, Idaho, is expected to have generate more than one megawatt per hour of renewable "green" power, which will be sold into the local power grid and should provide enough renewable energy annually to power approximately 650 homes.The digester will also produce a sanitary fiber by-product that can be used as clean animal bedding or as organic soil enhancement. By reducing emissions of methane, a powerful greenhouse gas, the digester will also generate carbon credits and renewable energy credits.

The project is expected to be operational by early 2009, will be owned and operated by a partnership between Dean Foods and AgPower Partners, LLC. AgPower Partners, LLC consists of an affiliate of Andgar Corporation, an affiliate of GHD, Inc. and Cenergy USA, Inc.

FYI: Dean Foods Company is the largest processor and distributor of milk and other dairy products in the United States.

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