Loading...
HomeMy WebLinkAboutBeaver Village Biomass Heat Pre-Feasibility Study IRHA 10-16-2014-BIOBeaver Village Biomass Heat Pre-Feasibility Study Prepared for Interior Regional Housing Authority October 16, 2014 Prepared by: Energy Action, Wynne Auld With Support from: The Alaska Energy Authority 1231 W. Northern Lights #578 Anchorage, AK 99503 www.energyaction.info (907) 744-1085 Page 2 of 15 Contents Acknowledgements ....................................................................................................................................... 3 Community Contact Information .................................................................................................................. 3 Summary of Findings..................................................................................................................................... 3 Statement of Purpose ................................................................................................................................... 3 Community & Facility Information................................................................................................................ 4 Biomass Resource Availability ....................................................................................................................... 6 Site Control ................................................................................................................................................... 6 Permitting ..................................................................................................................................................... 6 Proposed Biomass System ............................................................................................................................ 7 Alternatives Considered ............................................................................................................................ 7 Heat Load & Biomass Requirements ............................................................................................................ 9 Opinion of Probable Cost ............................................................................................................................ 11 Financial Analysis ........................................................................................................................................ 13 Financial Summary .................................................................................................................................. 13 Benefit/ Cost Model ................................................................................................................................ 13 Recommendations ...................................................................................................................................... 15 Figures Figure 1: Biomass Project Site Map .............................................................................................................. 8 Figure 2: Fuel Energy Values ......................................................................................................................... 9 Figure 3: Current Annual Fuel Use & Cost .................................................................................................... 9 Figure 4: Projected Annual Fuel Use & Cost, Biomass .................................................................................. 9 Figure 5: Biomass Stoking Requirements & Cost .......................................................................................... 9 Figure 6: Biomass O&M Cost (non-stoking) ................................................................................................ 10 Figure 7: Force Account Summary .............................................................................................................. 11 Figure 8: Force Account Detail .................................................................................................................... 12 Appendix A—Biomass Technology B – Utility Receipts C – Trustee Deed D – Site Photos Page 3 of 15 Acknowledgements Energy Action thanks the following representatives for their assistance with this assessment: Rhonda Pitka, Chief, Beaver Village Council Russell Snyder, Grants Coordinator, Interior Regional Housing Authority Steven J. Stassel, P.E., Gray Stassel Engineering Community Contact Information Beaver Village Council Contact: Rhonda Pitka, Chief PO Box 24029 Beaver, AK 99724 P. (907) 628-6126 F. (907) 628-6815 rpitka@beavercouncil.org Summary of Findings Beaver Village Council has taken steps toward the development of a biomass energy project. In 2008, Beaver Village Council participated in a 2008 pre-feasibility study, “Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating in Beaver, Alaska,” by Juneau Economic Development Council. Since that time, Beaver Village Council has sent representatives to several biomass energy workshops. The Council and public at large are well-acquainted with biomass energy projects and seek an opportunity to develop a project. The project buildings are the Washateria / Water Plant and Clinton Victor Wiehl Tribal Building. Currently, several capital improvement projects are underway at the project buildings. These include: a commercial energy audit and structural audit of the Washateria/ Water Plant, and capital improvements of the Washateria/ Water Plant and Clinton Victor Wiehl Tribal Building. The results of the audit and scope of the capital improvements are not yet defined. This study finds that biomass heat of the Washateria/Water Plant and Victor Weihl Tribal Building is pre- feasible. The biomass project would use an estimated 34 cords per year to displace about 85% of the buildings’ fuel oil consumption, which totals about 4,040 gallons of fuel oil per year. Additional site control work is needed. Pending the structural audit findings and energy efficiency upgrades, Beaver Village Council is recommended to proceed with additional feasibility analysis, site control, and/or biomass heat project development as they see fit. Statement of Purpose Since 2008, the Alaska State Legislature has supported renewable electric and thermal energy projects through the Renewable Energy Grant Recommendation Program, administered by the Alaska Energy Authority. In Round 6 of the Program, the Interior Regional Housing Authority, which promotes community self-sufficiency through energy projects, received money to complete pre-feasibility studies of biomass heat for community buildings in seven villages. The following pre-feasibility study has been funded through that grant. Page 4 of 15 Community & Facility Information Beaver Village (population 77) is an Alaska Native Village located on the north bank of the Yukon River, approximately 60 air miles southwest of Fort Yukon and 110 miles north of Fairbanks. It lies in the Yukon Flats National Wildlife Refuge. Imported goods are delivered by barge and plane, but fuel is received by plane only because of the tank farm’s location relative to the Yukon River’s current channel. Beaver has a 3934’ x 75’ gravel airstrip. Beaver Village is governed by Beaver Village Council. Beaver Village Council owns and operates the project buildings, which are the Washateria/ Water Plant (“Washateria”) and Clinton Victor Wiehl Tribal Building (“Tribal Building”), which houses the Clinic and Beaver Village Council office. These buildings were identified as biomass project buildings in a 2008 pre-feasibility study, “Preliminary Feasibility Assessment for High Efficiency, Low Emission Wood Heating in Beaver, Alaska,” by Juneau Economic Development Council. Fuel is purchased by Beaver Village Council from Beaver Joint Utilities for $9.00 per gallon (See Appendix B). Beaver Village Council owns Beaver Joint Utilities. Beaver Joint Utilities currently purchases fuel from Everts Air Fuel, Inc. for $4.83 per gallon (2013 Power Cost Equalization filing). The current going rate for cordwood is $250 -- $300 / cord. Many residents of Beaver use cordwood as a primary or secondary heat source (Council meeting, personal conversation, March 27, 2013). Electricity is 85.94 cents per kWh for community facilities (See Appendix B). To mitigate flood risk, the recommended building elevation in Beaver is 365.5’. All project buildings evaluated in this study have building elevations that exceed the minimum. The first floor of the Washateria is 367.6’. The first floor of the Tribal Building is 365.7’. The Washateria was built in 1978, and renovated in the early 1990s. In 2013, $100,000 of Capital Improvement Grant monies were designated by the Alaska State Legislature to improve the Washateria, including efficiency measures. Currently, several improvements are underway, but the scope and timeline of these projects is not yet known. The Washateria is managed by operator Paul Patruska, who was present during the site visit and public meeting. The approximately 1,340 ft2 Washateria has two (2) fuel oil boilers, both Burnham V9A/V11 with 562,000 Btu net output. The hi / lo setting is 180 / 160°F. These boilers are in fair condition and are slated to be replaced, according to the 2013 CIP Grant agreement with Beaver Village Council. The Washateria benefits from recovered heat provided by the adjacent power plant. Temperature gauges on the heat recovery heat exchanger indicated the recovered heat system was operating properly at the time of the site visit. The consultant also compared the Beaver heat recovery utilization simulation estimates completed by Gray Stassel Engineering in 2008 to the reduction in annual fuel oil use between 2008 -- 2013. Actual reduction closely matched estimated fuel oil savings, which indicates the system is meeting modeled performance. Page 5 of 15 The Washateria uses approximately 2,365 gallons of fuel oil per year. These gallons are used during the heating season, which may indicate they are primarily a function of space heat demand, rather than process heat. However, there may be some process heat demands for higher temperature water than the recovered heat system can provide, resulting in oil-fired heat. Within the Washateria, five zones deliver heat to various end uses, which include: dryers (1), building heat (2), domestic hot water generator (1), and garage heat (1). Hot water appliances include hydronic dryers, washers, faucets, unit heaters, baseboard piping, and flat plate and shell and tube heat exchangers. Several Amtrol BoilerMates produce domestic hot water from the oil boiler heat supply. During the summer, the Washateria provides potable water to the Tribal Building via an underground utilidor. The approximately 310’ utilidor exits the Washateria on the northeast corner of the boiler room and reaches its terminus on the southeast corner of the Tribal Building. The potable water line is drained during the winter to avoid freezing. The utilidor reportedly has adequate space for additional pipe, such as heat distribution from the biomass boiler project. The Tribal Building was built in 2003 and weatherized by Tanana Chiefs Conference in 2013. Maintenance personnel for this building were not present during the site visit. New boilers were installed in 2008. The approximately 5,600 ft2 building has two (2) fuel oil boilers, both Energy Kinetics 2000 AK-2 model. The Tribal Building uses approximately 1,675 gallons of fuel oil per year. These boilers are programmed with a unique operating system package, which includes a Digital Energy Manager that controls the zone circulators, inducer, and boiler protection system. Four zones deliver heat to various end uses, which include: upstairs (1), utilidor (1), downstairs (1), old bath (1). Hot water appliances include domestic hot water faucets and baseboard heat. The baseboards were in poor condition, as protection shields were missing in several locations and fins were bent. A 40-gallon Weil McClain indirect hot water heater is also located in the boiler room. The hot water heater does not operate in the winter, because it has no access to running water. A fuel oil day tank is filled manually by Beaver Village maintenance employee(s). Periodically the heating system goes down, and workers heat their spaces with electric resistance heaters. Additionally, periodically the electricity at the power plant goes out. At these times, the Tribal Building is not occupied. A stand-alone biomass boiler building could be located on the east-side of the Washateria, as noted in the 2008 pre-feasibility study. This location would require additional site control agreements, as described in the “Site Control” section of this assessment. Page 6 of 15 Biomass Resource Availability This pre-feasibility study was completed simultaneous to a reconnaissance-level biomass resource assessment by Tanana Chiefs Conference, which will be complete in fall 2014. The draft biomass resource assessment takes account of biomass stocking by ownership, resource distance from Beaver Village, and other factors. In summary, within a 5-mile radius of Beaver Village, there is approximately 243,000 cords of biomass, with nearly 87% of this material located on Beaver Kwit'chin Corporation lands. The average cost for biomass within a 5-mile radius of Beaver Village is $86.64 per cord. This figure includes harvest, stumpage, administration, and transport costs, but does not include the cost of processing logs into cordwood or profit. Site Control The project buildings, the Washateria and Tribal Building, are respectively located on lots 11 & 9 of U.S. Survey 4895 in the Fairbanks Recording District, vested in the “Village of Beaver.” The proposed site of the biomass boiler building, lot 7, block 6, of U.S. Survey 4895 in the Fairbanks Recording District, is vested in the “Trustee Deed to the Bishop of Alaska.” To build the biomass building here, legal permission would need to be obtained. Please see Appendix C. To integrate the biomass boiler building into the Washateria, the project will cross lot 10, block 6 of U.S. Survey 4895 in the Fairbanks Recording District, vested in the “Village of Beaver.” This site is directly east of the Washateria. Permitting Applicable project permitting is considered below:  The Alaska Department of Public Safety, Division of Fire and Life Safety must approve the project plans before construction is started. Mechanical and electrical review is limited to that which is necessary to confirm compliance with fire and life safety requirements.  Commercial harvests associated with the project may or may not be required to comply with the Alaska Forest Practices and Resources Act. While most commercial operations are required to comply, commercial operations of minor or small scale are sometimes exempted. The Act addresses forest management along water bodies, erosion mitigation, and reforestation.  The 40CFR63 NESHAP Rule does not apply to the project. The Rule does not apply to a hot water heater, which is defined in Subpart 6J as a boiler with a heat input capacity is less than 1.6 million Btu/hr and that does not generate steam.  If State or Federal money is used to construct the project, the Alaska Department of Natural Resources Office of History and Archaeology, State Historic Preservation Office should review project plans to determine whether historic, prehistoric, or archaeological resources are likely to be affected. The Office also offers suggestions to mitigate potential effects on resources. Page 7 of 15 Proposed Biomass System The proposed system is a 325,000 Btu cordwood boiler with hydronic heat storage serving the Washateria and Tribal Building, to be located in a stand-alone project building on the east side of the Washateria. The proposed site is owned and controlled by Beaver Village Council, has sufficient space for the project, and offers good access to the building mechanical rooms via an existing utilidor. Cordwood systems are not very effective when serving building heat systems that operate in a narrow temperature range, such at 180 /160°F. The Washateria currently operates in this range, and the biomass boiler operating and maintenance requirements have been modeled to maintain the existing temperature set points. The operations and economics of the project will improve if the system can operate in a broader temperature range. The following assumptions were made for the purpose of completing the pre-feasibility assessment, and are not a substitute for heat load calculations and boiler sizing to be completed by the project engineer:  Annual consumption of 4,040 gallons of fuel oil (2,365 gallons at the Washateria and 1,675 gallons at the Tribal Building), 85% of which serves space heat load, 15% of which serves domestic hot water  325,000 Btu cordwood boiler with 1,830 gallons of water storage, delta T = 40°F  Maximum 4 firings per day, with additional heat demand served by oil. Each firing requires 20 minutes labor  Annual inflation o Biomass O&M and scheduled repairs – 1.5% o Cordwood – 3% o Oil O&M and scheduled repairs – 1.5% o Oil – 4.8%  Input prices, year 1 o Cordwood -- $300/cord o Oil -- $9.00/gal o Loaded labor rate -- $20.17/ hr The project building cost was modeled as a modified conex shipping container bolted to wood timbers, as detailed on the Force Account Detail below. At least one barge company that serves Beaver has confirmed the ability to unload the materials from the barge and move them to the project site if the total container weight is less than 25,000 lbs. Alternatives Considered The Tribal Building and Washateria could be heated with individual biomass systems, but this design would raise capital cost and reduce economic viability. Since the buildings are both owned by Beaver Village and are located in close proximity to each other, only a single heating system serving both buildings has been evaluated. Page 8 of 15 Figure 1: Biomass Project Site Map Page 9 of 15 Heat Load & Biomass Requirements Figure 2: Fuel Energy Values Figure 3: Current Annual Fuel Use & Cost Figure 4: Projected Annual Fuel Use & Cost, Biomass Project Figure 5: Biomass Stoking Requirements & Cost Gross btu/unit System efficiency Delivered btu/unit Gross $/unit Delivered $/mmbtu Oil (gal)134,500 80%107,600 $ 9.00 83.64$ Biomass, 20% MC* (cord) 16,400,000 65%10,660,000 $ 300 28.14$ *MC is Moisture Content. Moisture in biomass fuel evaporates and absorbs energy in combustion, thereby decreasing the net energy value of the fuel. Facility Fuel Oil (gal)$ / gal Annual Fuel Cost Wash. + Tribal Bldg.4,040 9.00$ 36,360$ Total 36,360$ 15%Oil 85%Biomass 3434 gallons displaced Facility Fuel Type Units $ / unit Annual Fuel Cost Wash. + Tribal Bldg.Biomass, 20% MC* (cord) 34.7 300$ 10,399$ Wash. + Tribal Bldg.Oil (gal)606 9.00$ 5,454$ Total $ 15,853 Facility Total Stokings per Yr Stoking Hrs Per Yr $ / hr Annual Stoking Cost Wash. + Tribal Bldg.743 248 20.17$ 4,997$ Page 10 of 15 Figure 6: Biomass O&M Cost (non-stoking) Boiler Size (Btu)325,000 Boiler Fuel cordwood Cost of Labor 20.17$ Cost of Electricity 0.86$ Number of Stokings 743 MATERIALS Yrs to replacement Cost per Lifetime Lower Gasket 23$ 5 92$ Motor mount 27$ 10 54$ Rear cleanout gasket kit 46$ 10 92$ Manway cover gasket 19$ 10 38$ 5" cleaning brush 24$ 5 96$ Motor assembly 518$ 12 863$ 3/4 HP motor 353$ 12 588$ Motor mount kit 87$ 12 145$ Motor mount ring & screws 17$ 12 28$ Misc. 250$ 5 1,000$ Anode Rod 98$ 5 392$ Chemicals 250$ 1 5,000$ Total Cost per Lifetime 8,389$ Straight-line Average Cost per Yr.420$ LABOR Hours labor Yrs to labor Cost per Lifetime Water test and replace 0.50 1 202$ Cleanout covers and heat xger 2 1 807$ Clean blower motor 0.25 0.5 202$ Clean Ash & Combustion Air Intake 0.08 0.05 614$ Check & replace gaskets 3 5 242$ Total Cost per Lifetime 2,066$ Straight-line Average Cost per Yr.104$ ELECTRICITY Yrs. To Cost Cost per Lifetime Electricity 3/4 HP fan 60$ 1 1,191$ Electricity -- pump 642$ 1 12,840$ Total Cost per Lifetime 14,031$ Straight-line Average Cost per Yr.702$ 1,226$ Total Annual Biomass O&M (non-stoking) Page 11 of 15 Opinion of Probable Cost Figure 7: Force Account Summary Site & Foundation Work $8,315 Biomass boiler building $33,837 Biomass heat system $65,770 End-user building integration $43,284 Miscellaneous $8,700 Overhead $34,698 Freight $18,643 CONSTRUCTION SUB-TOTAL $213,246 Design & Construction Admin $21,325 Construction Management $10,662 PROJECT SUB-TOTAL $245,233 Contingency @ 20%$49,047 Admin @ 4%$9,809 TOTAL PROJECT COST $304,089 Page 12 of 15 Figure 8: Force Account Detail ITEM QUAN UNIT UNIT MATL UNIT LAB LAB LABOR CONTR FREIGHT TOTAL UNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#) SITE & FOUNDATION WORK Site prep (layout, excavation, backfill, compaction, grading)1 lump $5,000 $5,000 0.00 0 Wood timbers -- 8" x 8" x 8' 30 ea $63.00 $1,890 0.50 15.00 $95 $1,425 $3,315 70.00 2100 BIOMASS BOILER BUILDING 8 x 8 x 20 shipping container 2 ea $3,000 $6,000 0.00 0.00 $95 $0 $6,000 2500 5000 Man-door w/ hardware 1 ea $780 $780 6.0 6.00 $95 $570 $1,350 75 75 Roof, Metal -- 3' x 10' Delta rib roofing 22 ea.$175 $3,850 1.00 22.00 $95 $2,090 $5,940 96 2112 Roof frame 2 lump $900 $1,800 18.00 36.00 $95 $3,420 $5,220 400 800 Fasteners 1 lump $250 $250 0 0.00 $95 $0 $250 100 100 Wall insulation 19 ea $170 $3,230 1.5 28.50 $95 $2,708 $5,938 20 380 Roof insulation -- 8 - 12" batt 2 lump $195 $390 5.00 10.00 $95 $950 $1,340 96 192 Floor Insulation 2 lump $195 $390 5.00 10.00 $95 $950 $1,340 96 192 Fire protection 1 lump $250 $250 0.10 0.10 $95 $10 $260 5 5 Conex reinforcement 2 ea $1,200 $2,400 20.00 40.00 $95 $3,800 $6,200 1600 3200 BIOMASS HEAT SYSTEM Boiler -- GARN 2000 or equivalent 1 ea.$16,000 $16,000 16 16 $95 $1,520 $17,520 3600 3600 Pipe/Valves/Ftgs/Gauges 1 lump $5,000 $5,000 54 54 $100 $5,400 $10,400 800 800 Circ pump 2 ea.$750 $1,500 4 8 $100 $800 $2,300 60 120 Plate HXR, (300 MBh @ 20F)2 ea.$2,500 $5,000 2 4 $100 $400 $5,400 250 500 Plate HXR (200 MBH)1 ea.$2,000 $2,000 2 2 $100 $200 $2,200 250 250 Misc Strut & Pipe Hangers 1 lump $1,000 $1,000 20 20 $95 $1,900 $2,900 500 500 Tank Insulation 1 lump $1,200 $1,200 3 3 $95 $285 $1,485 50 50 Stack -- 6" dia double wall UL listed + supporting infrastructure 1 lump $1,700 $1,700 4 4 $95 $380 $2,080 3.8 4 Ventilation & Combustion Air Intake 1 lump $1,200 $1,200 3 3 $95 $285 $1,485 50 50 BTU meter 0 ea.$2,500 $0 18 0 $95 $0 $0 0 0 Electrical 1 lump $10,000 $10,000 100 100 $100 $10,000 $20,000 750 750 INTEGRATION Arctic Pipe -- 2" PEX 590 lf $25 $14,750 0.27 159 $95 $15,134 $29,884 1 590 PEX accessories -- 590 1/ft $5 $2,950 0 0 $95 $0 $2,950 1 590 Pipe penetration exclosure 2 lump $750 $1,500 5 10 $95 $950 $2,450 200 400 Temp controls 2 lump $750 $1,500 8 16 $100 $1,600 $3,100 200 400 Electrical work 2 lump $1,250 $2,500 12 24 $100 $2,400 $4,900 200 400 MISCELLANEOUS Misc Hardware 1 lump $2,500 $2,500 0 0 $95 $0 $2,500 500 500 Misc Tools & Safety Gear 1 lump $1,500 $1,500 0 0 $95 $0 $1,500 1446 1446 Consumables, Gases, Etc.1 lump $2,000 $2,000 0 0 $95 $0 $2,000 1500 1500 Wood splitter 1 ea $2,700 $2,700 0 0 $95 $0 $2,700 657 657 $0 OVERHEAD $0 ROW Legal Work 0 lump $0 $0 0 Rent Heavy Equip 1 lump $1,500 $1,500 0 Misc Tool Rent 1 lump $1,250 $1,250 0 Commission System & Training 20 hr 1 20 $90 $1,800 $1,800 0 Superintendent Overhd Off-Site 40 hr 1 40 $90 $3,600 $3,600 0 Superintendent Overhd On-Site 80 hr 1 80 $90 $7,200 $7,200 0 Crew Travel Time 10 hr 1 10 $90 $900 $900 0 Crew Airfares 2 trips $524 $1,048 $1,048 0 Crew Per Diem 240 mn.dy.$60 $14,400 $14,400 0 Housing Rent 2 mo.$1,500 $3,000 $3,000 0 FREIGHT 27,263 Ground Freight 3600 lb.$1.24 $4,464 Barge 27263 lb.$0.30 $8,179 Barge Freight Tool Mob & Demob 2 lump $1,500 $3,000 Misc Small Freight & Gold Streaks 1 lump $3,000 $3,000 CONSTRUCTION SUB-TOTAL $97,730 741 $70,676 $26,198 $18,643 $213,246 Engineering (Design & CCA)10 %$21,325 Construction Management 5 %$10,662 PROJECT SUB-TOTAL $97,730 $70,676 58,185$ $18,643 $245,233 Contingency 20 %$49,047 Admin Fee 4 %$9,809 CONSTRUCTION TOTAL $304,089 Page 13 of 15 Financial Analysis Financial Summary The project is considered financially pre-feasible at this time.  Benefit/ Cost: 1.37  Simple Payback: 14 yrs.  Net Present Value Net Benefit: $105,015 Benefit/ Cost Model The following model was designed by University of Alaska Anchorage Institute of Social and Economic Research, for use by the Alaska Energy Authority. The model was adapted to the project and completed according to the aforementioned assumptions. ALASKA ENERGY AUTHORITY B/C Model (adapted) Project Description Community Nearest Fuel Community Region RE Technology Project ID Applicant Name Project Title Category Results NPV Benefits $391,648 NPV Capital Costs $286,633 B/C Ratio 1.37 NPV Net Benefit $105,015 Performance Unit Value Displaced Petroleum Fuel gallons per year 3,434 Displaced Petroleum Fuel total lifetime gallons 68,680 Avoided CO2 tonnes per year 35 Avoided CO2 total lifetime tonnes 697 Proposed System Unit Value Capital Costs $$304,089 Project Start year 2015 Project Life years 20 Displaced Heat gallons displaced per year 3,434 Heating Capacity Btu/hr 325,000 Heating Capacity Factor % Parameters Unit Value Heating Fuel Premium $ per gallon Discount Rate % per year 3% Crude Oil $ per barrel Beaver Village Beaver Washateria and Tribal Bldg_Biomass Beaver Beaver Rural Biomass Page 14 of 15 Annual Savings (Costs)Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Project Capital Cost $ per year 304,089$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Electric Savings (Costs)$ per year $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Heating Saving (Costs)$ per year $14,284 15,351$ $16,489 $17,691 $18,960 $20,298 $21,711 $23,202 $24,774 $26,432 $28,180 $30,022 $31,965 $34,012 $36,169 $38,441 $40,835 $43,356 $46,012 $48,808 Transportation Savings (Costs)$ per year $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Savings (Costs)$ per year $14,284 $15,351 $16,489 $17,691 $18,960 $20,298 $21,711 $23,202 $24,774 $26,432 $28,180 $30,022 $31,965 $34,012 $36,169 $38,441 $40,835 $43,356 $46,012 $48,808 Net Benefit $ per year ($289,805)$15,351 $16,489 $17,691 $18,960 $20,298 $21,711 $23,202 $24,774 $26,432 $28,180 $30,022 $31,965 $34,012 $36,169 $38,441 $40,835 $43,356 $46,012 $48,808 Biomass System Operating Costs Units 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Renewable Heat gal. displaced / yr.3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 3,434 Renewable Heat O&M (non-stoking)$ per yr.1,226$ 1,244$ 1,263$ 1,282$ 1,301$ 1,321$ 1,341$ 1,361$ 1,381$ 1,402$ 1,423$ 1,444$ 1,466$ 1,488$ 1,510$ 1,533$ 1,556$ 1,579$ 1,603$ 1,627$ Renewable Heat Stoking $ per yr.4,997$ 5,072$ 5,148$ 5,225$ 5,304$ 5,383$ 5,464$ 5,546$ 5,629$ 5,714$ 5,799$ 5,886$ 5,975$ 6,064$ 6,155$ 6,247$ 6,341$ 6,436$ 6,533$ 6,631$ Renewable Fuel Use Qty (biomass)cords 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 34.7 Renewable Fuel Cost $ per unit 300$ 309$ 318$ 328$ 338$ 348$ 358$ 369$ 380$ 391$ 403$ 415$ 428$ 441$ 454$ 467$ 481$ 496$ 511$ 526$ Total Renewable Fuel Cost $ per yr.10,399$ 10,722$ 11,044$ 11,375$ 11,717$ 12,068$ 12,430$ 12,803$ 13,187$ 13,583$ 13,990$ 14,410$ 14,842$ 15,287$ 15,746$ 16,218$ 16,705$ 17,206$ 17,722$ 18,254$ Supplemental Fuel Qty (Oil)gal.606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 606 Supplemental Fuel Cost $ per gal.9.00$ 9.43$ 9.88$ 10.36$ 10.86$ 11.38$ 11.92$ 12.50$ 13.10$ 13.72$ 14.38$ 15.07$ 15.80$ 16.56$ 17.35$ 18.18$ 19.06$ 19.97$ 20.93$ 21.93$ Total Supplemental Fuel Cost $ per yr.5,454$ 5,716$ 5,990$ 6,278$ 6,579$ 6,895$ 7,226$ 7,573$ 7,936$ 8,317$ 8,716$ 9,135$ 9,573$ 10,033$ 10,514$ 11,019$ 11,548$ 12,102$ 12,683$ 13,292$ Proposed Heat Cost $ per yr.22,076$ 22,755$ 23,445$ 24,160$ 24,900$ 25,667$ 26,460$ 27,282$ 28,133$ 29,015$ 29,929$ 30,875$ 31,856$ 32,872$ 33,925$ 35,018$ 36,150$ 37,324$ 38,541$ 39,803$ Fuel Use gal. per yr.4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 4,040 Fuel Cost $ per gal. 9.00$ 9.43$ 9.88$ 10.36$ 10.86$ 11.38$ 11.92$ 12.50$ 13.10$ 13.72$ 14.38$ 15.07$ 15.80$ 16.56$ 17.35$ 18.18$ 19.06$ 19.97$ 20.93$ 21.93$ Fuel Cost $ per yr.36,360$ 38,105$ 39,934$ 41,851$ 43,860$ 45,965$ 48,172$ 50,484$ 52,907$ 55,447$ 58,108$ 60,897$ 63,820$ 66,884$ 70,094$ 73,459$ 76,985$ 80,680$ 84,553$ 88,611$ Base Heating Cost $ per yr.36,360$ 38,105$ 39,934$ 41,851$ 43,860$ 45,965$ 48,172$ 50,484$ 52,907$ 55,447$ 58,108$ 60,897$ 63,820$ 66,884$ 70,094$ 73,459$ 76,985$ 80,680$ 84,553$ 88,611$ Base Page 15 of 15 Recommendations This study finds that biomass heat of the Washateria/Water Plant and Victor Weihl Tribal Building is pre- feasible. A variety of capital improvements, including a structural audit and energy efficiency upgrades, are underway at the project facilities. Pending the audit recommendations and energy efficiency upgrades, Beaver Village Council is recommended to proceed with additional feasibility analysis, site control, and/or engineering/ development as they see fit. Additionally, Beaver Village Council is recommended to start the process of biomass fuel sourcing with Beaver Kwit’chin Corporation right away. Cordwood systems are not very effective when serving building heat systems that operate in a narrow temperature range, such at 180 /160°F. The Washateria currently operates in this range, and the biomass boiler operating and maintenance requirements have been modeled to maintain the existing temperature set points. Under the current conditions, the project is considered pre-feasible. However, the operations and economics of the project will improve if the system can operate in a broader temperature range. The Washateria operator may wish to experiment with broader temperature set points to see if desired heat output can be maintained with the existing heat system. Appendix A—Biomass Technology B – Utility Receipts C—Trustee Deed D – Site Photos A-1 A – Biomass Technology Although humans have used wood for heat for millennia, modern high-efficiency biomass boilers have only been in use for a few decades. Biomass boilers may use wood fuels such as cordwood, wood chips, or wood pellets, to heat commercial buildings. Biomass boiler projects depend on sustainable forest management, quality biomass fuel sourcing, processing, and storage, and reliable fuel handling. Biomass boilers frequently integrate with conventional hydronic heat systems, which use water to move heat from where it is produced to where it is needed. Small-scale biomass systems often incorporate a hot water storage tank, which promotes efficient combustion and improves the availability of biomass heat. To provide reliable heat, the biomass boiler, building heat distribution system, controls, and heat emitters must be properly matched. Sustainable Forest Management Wood fuel Processing & Storage Handling Combustion Thermal Storage Heat Distribution The Nature of Wood Fuels Composition All wood is made primarily of cellulose, hemi-cellulose, and lignin. It is about 50% Carbon, 44% Oxygen, and 6% Hydrogen. Theoretically, complete combustion (100% efficient) would result in only two products: carbon dioxide and water. In practice, biomass boilers range from about 77 -- 83% efficient. Wood that is not completely burned become carbon monoxide and hydrocarbons, often in the form of smoke and ash.1 Combustion Biomass fuel undergoes fascinating changes as it burns. Pyrolysis occurs at 500 – 600°F, in which organic gasses leave behind charcoal solids. Primary combustion is burning of charcoal solids.2 Secondary combustion is burning of organic gasses. Because about 60% of the heating value is contained in gasses, secondary combustion is essential to high efficiency wood burning. 1 Rick Curkeet, PE, Wood Combustion Basics, EPA Burnwise Workshop 2011, http://www.epa.gov/burnwise/workshop2011/WoodCombustion-Curkeet.pdf (June 19, 2014). 2 Curkeet, Rick. A-2 Emissions In wood burning, the primary emissions concern is particulate matter 2.5 microns or less in size (“PM 2.5”), which is hazardous to human health. Additionally, unburned wood signifies lost heat and potential creosote formation. Creosote formation results in higher fuel costs, shortens the life of the boiler, and increases other maintenance costs. Boiler manufacturers have certified emissions tests conducted according to the ASTM E2618-13 standard that document boiler efficiency. High efficiency wood boilers emit about 0.07 – 0.3 lbs of PM 10 per million BTU in test conditions. Boiler manufacturers specify operating conditions for the field. One important condition is wood fuel specifications, which include moisture content and fuel dimensions. Other important conditions for efficient operation include proper fuel storage, routine operations and maintenance, and system design (such as proper boiler sizing and incorporating a hot water storage tank). One valuable source of information for seasoning cordwood in Interior Alaska is available at the Cold Climate Housing Research Center’s (CCHRC) website.3 “Properly prepared and stored” cordwood can be dry enough to burn safely within six weeks during the summer. In regions other than the Interior, similar storage principles would apply, but recommended storage durations may be different. Below is a summary of how to properly prepare and store cordwood: Cut to stove length (two feet or shorter) Split the wood at least once Stack in a pile with air space between the pieces Store wood in a shed or cover only the top of the pile with a large piece of plywood or some waterproof tarp Allow sun and air to reach the sides of the wood pile to help dry the wood Season at least six weeks during the summer months If beginning after August 1st, wait to burn until the next summer When properly stored, more time is always better Figure 1: Excerpt from CCHRC's Cordwood Handling Brochure 3 http://www.cchrc.org/docs/best_practices/Cordwood_Handling_Brochure.pdf A-3 Wood Fueled Heating Systems Below are the characteristics of cordwood, wood chip, and wood pellet boiler systems. Advantages Disadvantages Cordwood Local wood resource Small size (less than 1 MMBTU) Simple to operate Higher labor costs, including hand- feeding the boiler, manual ash removal, and manual grate cleaning Labor is needed intermittently, so someone must be available “on site” Typically non-pressurized, which may require more frequent boiler chemical additions Pellets Can operate unattended, and automatically match heat load Scalable from small to large sizes (generally 100,000 btu – 1 MMBTU) Relatively small footprint Typically the most efficient biomass combustion Pellet fuel is typically not locally produced, and therefore depends on “imports” Shipping pellets is very costly; even a freight rate of $0.05 per lb. results in an additional cost of $100 per ton. Relatively expensive wood fuel Ash removal and grate cleaning may be automated or manual Chips Can operate unattended, and automatically match heat load Wood chips may be the lowest cost fuel Local wood resource may be available or produced Large projects achieve economies of scale Creates jobs in the woods and at the boiler plant Large systems are expensive Typically large sizes > 1,000,000 MMBTU Wood chip fuel can be diverse, which can make it difficult to meet fuel specifications. Screens and other devices can improve fuel quality. B-1 B – Utility Receipts C‐1  C – Trustee Deed  D-1 Appendix D BEAVER WASHATERIA D-2 0 D-3 D-4 D-5 Recovered Heat lines enter from Power Plant Potable Water and Trace Heat Lines Utilidor Access D-6 D-7 D-8 D-9 Recovered Heat Lines Exit Power Plant en route for Washateria D-10 D-11 BEAVER TRIBAL BUILDING D-12 D-13 D-14 D-15 D-16 D-17