TURTLE LAKE - An anaerobic cogeneration facility being proposed in Turtle Lake could help solve a growing problem for area dairy processing plants.

GreenWhey Energy, a privately held company spearheaded by Lake Country Dairy founder and project manager Tom Ludy, would recycle about 330,000 gallons of high-strength wastewater daily.

Initially, the waste would come from at least five northwestern Wisconsin processing plants within about 60 miles of Turtle Lake.

Eventually, it could be feasible to expand the facility so it could take in wastewater from as many as 11 regional plants, Ludy said.

The project would generate enough electricity to power about 1,500 homes along the Xcel Energy grid and create 242 million BTUs of heat a day. Underground pipes would transfer the heat to businesses and other buildings throughout the village.

GreenWhey plans to donate a free heat supply to the Turtle Lake School District and provide nutrient-rich solids that could be sold as fertilizer to farmers.

After the digestion process, an aerobic digestion system would clean the water so it could be discharged above ground.

Plans are to have the digester project up and running by next November on property near Lake Country Dairy in Turtle Lake, Ludy said .

It would be the second project of its kind in Wisconsin and unique in its number of investors, he said.

A similar whey digester facility at Kraft Foods in Beaver Dam is owned by the municipality.

The $15 million GreenWhey project is being financed by investors, grants and low-interest government loans, Ludy said.

"Making green energy is not cheap," he said, "but on the other hand, if you're going to throw the stuff away and not burn fuel to do it, that's good."

Project backers say it would turn a challenge in the state's dairy industry into an opportunity.

The idea for GreenWhey surfaced a couple of years ago in conversations between Ludy and Larry Peaster of Northern Liquid Waste Management in Almena. GreenWhey was formed a couple of months ago.

In addition to dairy wastewater, the facility could digest liquid waste from local wineries, breweries and other processing plants. Processors would pay GreenWhey a tipping fee.

Rising concerns about potential surface water contamination have prompted state officials to crack down on the application of wastewater on farm fields in recent years.

"You can't spread on frozen ground anymore," Ludy said. "You can build a mega-lagoon and spread it in the summer, but unless it's a dry summer you would never get that lagoon empty. There are not a lot of good options."

Also, less rural land is available for spreading as more houses have cropped up.

Ludy said the high-strength wastewater from dairy plants often gets a bad rap, but "it's like taking a glass of milk after you rinse it out and dumping it out."

Many area fields now are off limits for wastewater haulers, and with less room for land spreading, haulers must charge cheese plants more for their services, making the dairy industry less competitive and, perhaps eventually, forcing some plants to downsize or close.

"If we don't do (this), cheese plants will be closing," said Marlin Baillargeon of Amery, who serves on the GreenWhey management team along with Ludy; Ludy's son, Eric; Tom Engel; and Tom Stark.

Five digester projects like GreenWhey would be needed throughout the state to handle all the dairy wastewater, Baillargeon said.

Dairy plants use thousands of gallons of rinse water for cleaning. With its diluted whey and milk, the water is full of fats and proteins, which carry innate energy.

Through anaerobic digestion, microorganisms break down the wastewater, resulting in methane gas, carbon dioxide, dischargeable water and solids that can be sold as fertilizer.

GreenWhey is applying for water discharge permits now, Ludy said.

At the Nov. 16 Turtle Lake Village Board meeting, Ludy outlined the project and asked the board to write a letter to state officials indicating its support of GreenWhey as the project seeks state funding.

GreenWhey hopes to tap into the state's Clean Water Fund Program, which provides loans to municipalities for wastewater treatment and urban storm water projects. Applications are due Dec. 31.

Ludy also asked that the board form a committee to meet with state Department of Natural Resources officials regarding the project.

GreenWhey is working with the DNR and the state departments of Commerce and Energy to get the project done, Ludy said.

"The state of Wisconsin is 100 percent behind this project," he said. "They're asking for us to put our heads together to bring a solution to the problem."

Ludy said GreenWhey intends to design the project so the village won't have to expand its sewer system. He said it also will reduce the amount of wastewater flowing into the village system.

"We're looking for a creative way to get a partnership between (the village and GreenWhey)," he said. "We'll do what we have to to get the project to move forward."

Ludy said the project would put Turtle Lake on the map and would be profitable.

"The project very much cash-flows itself," he said. "The payback is quite good."

Village President Laurie Tarman said the board fully supports the project.

Board member Ray Hall said, "I want to see it get done."

Ludy said the project must get done to keep the region's dairy industry viable.

"We need to move this along," he said. "We have a lot invested in this project already, and we don't intend not to get it done."

GreenWhey is partnering with St. Paul, Minn.-based Ecolab to design and construct the facility. Ludy said an initial plant design is scheduled for completion by early December.

Heidi Clausen can be reached at clausen@amerytel.net.