Paulson Development Group – AD Development
Clean Energy & Income for Dairies
About the Company:
Paulson Development Group (PDG) develops RNG Projects to be located on-site at dairy farms across the west. Tony Paulson, the founder, is an investment professional and entrepreneurial by nature, with 20 years of experience in finance and investing in technology, real estate and renewable energy assets. Over the past decade, Paulson has demonstrated leadership through various engagements within the solar industry. Projects range from consulting mandates to in-house positions for investment firms, technology providers, government agencies, non-profits, financial service businesses and project development companies.
Following a successful career in solar asset investment, Paulson launched Paulson Development Group to address the challenges, and opportunities, in agriculture with solutions now available to the market.
About the Solution:
Paulson Development Group develops RNG Projects to be located on dairy farms. They manage the process from design to permitting, finance, legal, construction, asset management and operations. The Business has engaged with all service providers necessary to successfully execute the development plan, whom are among the most active in the market. They have also identified gas buyers currently buying gas & incentives through long-term purchase agreements.
Critical to the success of the long-term operations of the Project is the inclusion of the dairy farm in the cash benefits (the “Dairy Partner”). Each project will be separately owned by a project company. The Dairy Partner will receive a royalty payment, as a percentage of the incentive revenue. This royalty payment is paid out of the project company as an operating expense, prior to the investor, or developer, receiving any income. The requirement of the Dairy Partner will be a feedstock agreement and site lease for 20 years. The feedstock agreement will require the Dairy Partner to provide a minimum amount of feedstock through the term of the agreement.
Solution Strengths, Weaknesses and Critical Indicators
- Long usable life and can be run reliably
- Creates energy and generates environmental credits
- Proper feeding & system monitoring is required to avoid system downtime
- Proven technology for odor control
- Proven technology for GHG reduction
- Proven technology for pathogen reduction
- Different types of systems produce varying gas production rates
- Requires proper preparation of the feedstock
- Requires other technologies for energy utilization
- Requires other technologies for digestate handling
- Requires other technologies to prevent nitrogen loss
- Complex systems may require expertise not available on-farm
Paulson Development Group is currently working with several dairies to bring RNG projects on-line. Newtrient will continue to work with PDG to learn more about their projects and to provide a 9-Point score once they have started their first project.
1. OPERATIONAL HISTORY