Passing gas.

• Author: Mildenberg, David
• Position: NC TREND: Eastern Region

A long-standing goal of turning pig and poultry poop into energy is being met by a Colorado-based startup that is making a $100 million bet on its technology. Construction of Carbon Cycle Energy's plant near Warsaw in Duplin County kicked off in December, pleasing promoters of alternative power sources and Duke Energy, which has great incentive to support development of renewables.

State lawmakers in 2007 passed the nation's strongest provisions for alternatives to coal, natural-gas and nuclear production: 12.5% of the state's electric supply sold to Duke customers must come from renewable sources or efficiency improvements by 2018. The rules include a requirement that Duke and other investor-owned utilities must buy at least 0.2% of North Carolina's energy supply from swine waste by 2018. That doesn't sound like much, but the state is nowhere close to the goal. Carbon Cycle's plant, expected to be completed later this year, will narrow the gap significantly.

Duke and an unnamed Fortune 500 company have signed contracts to buy gas from the plant for 15 years, making the project viable. About 25 pork and poultry producers operating within a 75-mile radius will provide waste, mainly through 70 to 80 daily truck deliveries. Sealing the trucks should prevent odor problems, officials say. A nearby...