You learn that proper. Poop. Manure. Cow pies. US dairy farming remains a significant source of greenhouse gas emissions, primarily due to the vast number of cattle grazing on pastures and producing milk for consumers. In California’s current landscape, the state holds a distinct reputation as the US dairy farming hub; however, it also bears significant responsibility, accounting for nearly half of the total methane emissions within its borders? Despite the implementation of new recycling strategies, concerns persist that efforts by automakers like BMW to utilise carbon offsets and promote electric vehicles (EVs) are being undermined by greenwashing and flawed incentives that inadvertently encourage increased emissions.
Over the past decade, biogas power generation from animal waste has emerged as a highly sought-after option for dairy farmers seeking to diversify their income streams and stabilize revenue. Power generated through methane digesters has enabled companies like BMW to offset their electric vehicles’ carbon footprint with a clearer conscience, albeit some critics cry foul, arguing that these measures produce a similar environmental impact to traditional fossil fuels and inadvertently incentivize US dairy farms to boost emissions, thereby diminishing the green benefits.
California launched the Low Carbon Fuel Standard (LCFS) in 2011, a pioneering initiative that incentivizes dairy farmers to convert methane into electricity, thereby generating carbon credits that can be purchased by companies like automakers as offsets. While the notion of offsets remains a distinct topic for another time, this idea does appear relevant; nonetheless, we would advocate for a concentrated focus on renewable resources such as solar and wind power, which tend to yield greater returns over the long term.
Scientists and environmental advocates are in agreement on many points. A January 2022 report from the relevant authorities conveyed findings on the assessment of manure-derived biomethane, as this topic holds significance for related purposes.
The valorization and efficient utilization of biogas produced through anaerobic digestion of manure lagoon waste represents a crucial strategy for reducing methane emissions, thereby contributing to environmental mitigation efforts and potentially offsetting a portion of the demand for fossil-based methane fuels in energy-intensive applications.
Despite efforts to rectify the issue, the system remains fundamentally flawed, perpetuating a misguided set of priorities that hinder progress. Specialists contend that the Low Carbon Fuel Standard (LCFS) disproportionately grants credits to farmers for the production of biogas, far exceeding the costs associated with operating and maintaining a methane digester. The study maintains that the value of LCFS credits far surpasses the cost of capturing biomethane from large-scale confined animal feeding operations, such as California’s dairy farms, like those found in a typical CAFO.
Despite its touted eco-friendly credentials, biomethane still contributes to greenhouse gas emissions, albeit at a lower rate than traditional fossil fuels.
As the concept of greenwashing emerges, it’s crucial to scrutinize BMW’s involvement in a biogas trade that’s expected to skyrocket globally, reaching a valuation of $126.2 billion by 2030? Like many other dairy-related issues, this one starts in California?
Will BMW’s biomethane-powered cars really offset their carbon footprint, or is it just a case of greenwashing at the border?
BMW Group pioneered a novel venture in April 2021 by partnering with California-based dairy farms, becoming the first automaker to compensate for the carbon emissions produced during the charging of its electric vehicles (EVs) through this unique initiative. At the time, BMW offered a credit to drivers participating in its ChargeForward program, which was incentivized through the Low Carbon Fuel Standard (LCFS) system.
These collaborations featured partnerships with Straus Natural Dairy Farm and CalBio, a pioneer in building methane-digestor facilities for farm applications. What’s driving innovation in electrification at BMW?
Our sustainability mission transcends mere emission reduction; it’s about creating a financial incentive for long-term sustainability, thereby empowering our partners to flourish. Dairy biodigesters exemplify a pioneering technology that not only slashes greenhouse gas emissions in a sustainable manner, but also presents a lucrative revenue stream for farmers and their local communities. As we continue to develop our collaborative model in California, we aim to leverage its potential to accelerate biodigester growth across the US, ultimately providing cleaner energy solutions to our customers.
In a video, third-generation farmer and proprietor of Bar 20 Dairy Steve Shehadey echoed a sentiment shared by many farmers: regardless of their dairy output, they have no control over the unpredictable fluctuations in milk prices.
Occasionally, when you’re earning money, there are times; occasionally, when you’re parting with cash. As the concept of generating power or energy gained traction, the promise of stabilizing income became increasingly alluring, particularly when paired with a reliable means of navigating turbulent economic times.
According to Shehadey, the dairy farm’s two solar initiatives and a methane digester generate an excess of approximately three million kilowatt-hours of energy over its operational requirements. The integration of renewable energy sources, such as solar panels on farmland, deserves praise, while harnessing methane for recycling presents a more effective solution than allowing it to contribute to environmental degradation.
Regardless of efforts to spin the situation, concerns about greenwashing persist, given that these recycled gases still emit significant carbon emissions and benefit from incentives that encourage farmers to produce more of this odorous fuel.

A recent 2022 article disputes the identical findings of, contending that the touted environmental benefits of biogas are grossly overstated. It further critiques the Low Carbon Fuel Standard (LCFS), suggesting it favors farm-based fuel (a combustion-derived energy source) over other renewable alternatives, such as solar and wind power?
According to a 2018 study by researchers at UC Davis, methane digesters appear to be unviable without federal government grants and subsidies, as calculations reveal that it costs $294 per year to produce just $68 worth of fuel from one cow, excluding the substantial upfront cost of installing the digester itself.
Is that where attention-grabbing will occur?
According to a 2021 evaluation by Professor Aaron Smith of the University of California, Davis, the Low Carbon Fuel Standard (LCFS) credits provide a yearly subsidy of approximately $1,935 per cow. For dairy farmers seeking a compelling reason to initiate cow waste recycling, the prospect of generating revenue is a highly attractive incentive, especially in a market where prices can fluctuate freely. With a financial buffer created by selling excess energy, larger-scale farmers are likely to find this strategy an unassailable business decision.
While proponents of the Low-Carbon Fuel Standard (LCFS) argue that it drives innovation and reduces greenhouse gas emissions, a closer examination reveals that the subsidies inherent in the program overwhelmingly favor large-scale dairy operations over smaller, more sustainable producers. However, a more concerning consequence of these incentives is their potential to exacerbate dairy trade consolidation, where larger operations acquire even more power, leaving smaller farmers struggling to remain competitive. Unless policymakers address the perceived drawbacks of greenback indicators tied to biogas production, there is a risk that farmers will prioritize this less environmentally friendly source of renewable energy over cleaner options like solar and wind power? Per its research:
The Low Carbon Fuel Standard (LCFS) is designed to ensure that manufacturers of transportation fuels that contribute significantly to air pollution are responsible for bearing the costs associated with reducing the negative impacts on public health and the environment. Notwithstanding, the overwhelming majority of local air pollution concerns surrounding manure biomethane stem from the inherent methane emissions in manure, while the fossil fuel displacement within the transportation gas sector represents a relatively minor contribution to the overall solution. In a striking irony, the largest polluter often benefits from significant government subsidies.
Is the lifecycle assessment of the Low Carbon Fuel Standard (LCFS) designed to ensure that support for low-carbon fuels is based on a comprehensive analysis of their regional climate benefits? Notwithstanding the current circumstances, this scheme operates akin to a flawed offset programme, forcing transport fuel customers to bear an unreasonably high cost for methane mitigation efforts stemming from agricultural waste. This transportation infrastructure lacks comprehensive fuel efficiency and sustainable agricultural practices for minimizing greenhouse gas emissions?
It’s no surprise that California dairy farmers participate in methane biofuel production due to existing subsidies that directly benefit their bottom line. While some may raise concerns about the environmental impact, it’s unclear if malicious intentions are behind the initiative, as it does offer a partial solution to the state’s pressing emission problem. Despite being accused of overhyping its benefits to promote a positive image, it is still reasonable to acknowledge and appreciate efforts by companies like BMW that collaborate with sustainable initiatives.
While there are certainly cleaner methods for powering electric vehicles (EVs), particularly without relying on carbon offsets?