"It uses a waste product and captures the greenhouse gas methane, to produce electricity and hot water while saving the farmer money."
The Glenarlea Farm project is the southernmost application of the technology.
"Successful demonstration of the technology in a cooler climate like Southland will provide confidence it can work anywhere in New Zealand," Mr Brander said.
The EECA and Venture Southland will monitor the project, which is now producing the predicted 50kW of electricity.
The project partners were evaluating the costs and he expected the technology to be available to roll out across Southland farms next year.
"Depending on what effluent pond systems were already in place, the costs would vary. But with the savings in electricity from farmers being able to generate it themselves, the recovery system would eventually pay for itself," Mr Canny said.