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HomeMy WebLinkAboutCordova Feasibility Assessment for Biomass Heating Systems Swimming Pool Bob Korn CoffmanEngineers 07-29-2015-BIO Feasibility Assessment for Biomass Heating Systems Bob Korn Memorial Swimming Pool, Cordova, Alaska 800 F Street, Anchorage, AK 99501 p (907) 276-6664 f (907) 276-5042 Lee Bolling, PE FINAL REPORT – 7/29/2015 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. i Contents I. Executive Summary ............................................................................................................ 1 II. Introduction ...................................................................................................................... 2 III. Preliminary Site Investigation ........................................................................................... 3 PREVIOUS STUDIES ......................................................................................................................................................... 3 BUILDING DESCRIPTION ................................................................................................................................................... 3 EXISTING HEATING SYSTEM .............................................................................................................................................. 3 POOL WATER ................................................................................................................................................................ 4 DOMESTIC HOT WATER................................................................................................................................................... 4 AIR HANDLING SYSTEM ................................................................................................................................................... 4 BUILDING ENVELOPE ....................................................................................................................................................... 5 HYDRO ELECTRIC BOILER PROJECT ..................................................................................................................................... 5 AVAILABLE SPACE ........................................................................................................................................................... 6 STREET ACCESS AND FUEL STORAGE ................................................................................................................................... 6 BUILDING OR SITE CONSTRAINTS ....................................................................................................................................... 7 BIOMASS SYSTEM INTEGRATION ........................................................................................................................................ 7 BIOMASS SYSTEM OPTIONS .............................................................................................................................................. 7 IV. Energy Consumption and Costs ......................................................................................... 9 ENERGY COSTS .............................................................................................................................................................. 9 WOOD ENERGY ............................................................................................................................................................. 9 CORDWOOD .................................................................................................................................................................. 9 CARDBOARD BRIQUETTES .............................................................................................................................................. 10 WOOD PELLETS ........................................................................................................................................................... 11 HEATING OIL ............................................................................................................................................................... 12 ELECTRICITY ................................................................................................................................................................ 12 EXISTING FUEL OIL CONSUMPTION .................................................................................................................................. 13 BIOMASS SYSTEM CONSUMPTION ................................................................................................................................... 13 V. Preliminary Cost Estimating ............................................................................................. 14 VI. Economic Analysis .......................................................................................................... 15 O&M COSTS .............................................................................................................................................................. 15 DEFINITIONS................................................................................................................................................................ 15 RESULTS ..................................................................................................................................................................... 17 SENSITIVITY ANALYSIS ................................................................................................................................................... 18 VII. Forest Resource and Fuel Availability Assessments ........................................................ 19 FOREST RESOURCE ASSESSMENTS .................................................................................................................................... 19 AIR QUALITY PERMITTING .............................................................................................................................................. 19 VIII. General Biomass Technology Information ..................................................................... 20 HEATING WITH WOOD FUEL ........................................................................................................................................... 20 TYPES OF WOOD FUEL .................................................................................................................................................. 20 HIGH EFFICIENCY WOOD PELLET BOILERS ......................................................................................................................... 21 HIGH EFFICIENCY CORDWOOD BOILERS ............................................................................................................................ 21 LOW EFFICIENCY CORDWOOD BOILERS ............................................................................................................................. 22 HIGH EFFICIENCY WOOD STOVES .................................................................................................................................... 22 BULK FUEL BOILERS ...................................................................................................................................................... 22 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. ii GRANTS ..................................................................................................................................................................... 22 Appendices Appendix A – Site Photos Appendix B – Economic Analysis Spreadsheet Appendix C – AWEDTG Field Data Sheet Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. iii Abbreviations ACF Accumulated Cash Flow ASHRAE American Society of Heating, Refrigeration, and Air-Conditioning Engineers AEA Alaska Energy Authority AFUE Annual Fuel Utilization Efficiency B/C Benefit / Cost Ratio BTU British Thermal Unit BTUH BTU per hour CCF One Hundred Cubic Feet CEI Coffman Engineers, Inc. CFM Cubic Feet per Minute Eff Efficiency F Fahrenheit ft Feet GPM Gallons Per Minute HP Horsepower HVAC Heating, Ventilating, and Air-Conditioning in Inch(es) kWh Kilowatt-Hour lb(s) Pound(s) MBH Thousand BTUs per Hour O&M Operations and Maintenance MMBTU One Million BTUs PC Project Cost R R-Value SF Square Feet, Supply Fan TEMP Temperature V Volts W Watts Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. iv List of Figures Figure 1 – Cordova, Alaska – Google Maps ................................................................................................... 2 Figure 2 – Bob Korn Memorial Swimming Pool ............................................................................................ 2 Figure 3 – Proposed Site Layout ................................................................................................................... 6 Figure 4 – Garn WHS-3200 Wood Boiler ....................................................................................................... 7 Figure 5 – Cardboard Shredder and Briquette Press .................................................................................. 10 List of Tables Table 1 – Economic Evaluation Summary ..................................................................................................... 1 Table 2 – List of Previous Biomass Related Studies ...................................................................................... 3 Table 3 – Energy Comparison ....................................................................................................................... 9 Table 4 – Energy Comparison ..................................................................................................................... 11 Table 5 – Existing Fuel Oil Consumption ..................................................................................................... 13 Table 6 – Proposed Biomass System Fuel Consumption ............................................................................ 13 Table 7 – Estimate of Probable Cost ........................................................................................................... 14 Table 8 – Inflation rates .............................................................................................................................. 15 Table 9 – Economic Definitions ................................................................................................................... 15 Table 10 – Economic Analysis Results ......................................................................................................... 17 Table 11 – Sensitivity Analysis .................................................................................................................... 18 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 1 I. Executive Summary A preliminary feasibility assessment was completed to determine the technical and economic viability of biomass heating systems at the Bob Korn Memorial Swimming Pool in Cordova, Alaska. The study evaluated a Garn style cordwood boiler system that would supply the majority of the pool water heating requirements. The high price of fuel oil is the main economic driver for the use of lower cost biomass heating. During the site visit it was found that a significant amount of energy was being lost through the pool’s exhaust fans, which are used to control the humidity in the pool. It is recommended that a new pool dehumidification system be investigated to control humidity, which is estimated to save $20,000 per year in heating oil consumption. This improvement is recommended to be completed prior to consideration of heating oil reductions based solely on a biomass heating system installation. It is recommended to complete an economic analysis of a new pool dehumidification system. It is possible that this system could have a greater benefit to cost ratio and quicker payback than a biomass heating system. The proposed wood boiler would be located in a detached conex and heating pipes would connect to a new heat exchanger in the Pool’s mechanical room. The wood boiler would be dedicated to heating the pool water, in order to take advantage of lower heating water temperatures and overall higher wood boiler efficiencies. The existing heating oil boiler would still be used to heat the rest of the facility and supplement the pool water heating when needed. The wood boiler would also allow for the burning of cardboard briquettes. The proposed wood boiler is economically justified at this time, due to the fact that the benefit to cost ratio of the project is greater than 1.0. The summary of the results of the economic evaluation are shown in the table below. Table 1 – Economic Evaluation Summary Project Capital Cost $330,734 Present Value of Project Benefits (20 year life) $2,063,893 Present Value of Operating Costs (20 year life) $1,337,273 Benefit / Cost Ratio of Project (20 year life) 2.20 Net Present Value (20 year life) $395,886 Year Accumulated Cash Flow is Net Positive First Year Year Accumulated Cash Flow > Project Capital Cost 11 years Simple Payback 13.1 years Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 2 II. Introduction A preliminary feasibility assessment was completed to determine the technical and economic viability of biomass heating systems for the Bob Korn Memorial Swimming Pool in Cordova, Alaska. The location of the building is shown in Figures 1 and 2. The pool is located next to the harbor and the city office building. Figure 1 – Cordova, Alaska – Google Maps Figure 2 – Bob Korn Memorial Swimming Pool Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 3 III. Preliminary Site Investigation Previous Studies There have been multiple biomass related studies completed for Cordova, beginning in 2008. These studies have looked at biomass resources, biomass prices and economics. These past studies were used in developing this report and are listed below: Table 2 – List of Previous Biomass Related Studies Date Report Title Author 2008 Waste Audit of Burn Pile City of Cordova Environmental Interns 2009 Native Village of Eyak Feasibility Assessment for Biomass Heating Dalson Energy 2012 Assessment of Woody Biomass Energy Resources in the Cordova Area Department of Natural Resources Division of Forestry 2013 Cordova Biomass Feasibility Study Native Village of Eyak In general, the studies found that cordwood is a potentially viable energy resource in Cordova. However, during the writing of the 2009 report it was found that the cardboard and wood waste streams were not large enough to justify burning these fuels to heat downtown buildings in Cordova. Building Description The pool is a 4,000 square foot single story building that was originally built in 1973. In 1983 there was a major mechanical system renovation that installed new equipment and duct. The pool is used daily for swimming activities by the community. Depending on the time of day and activity, there can be between 5 to 75 people using the pool. It is estimated that the pool is regularly used 70 hours per week. Currently, there are no scheduled or planned renovations for the building. A city wide energy audit was completed on Cordova City buildings, including the pool, in 2014. This energy audit only looked at energy data of the city buildings and did not include a detailed energy audit of the pool building. The only information from this energy audit that was provided to Coffman was the 2013 and 2014 heating oil and electricity energy consumption and costs for the pool. Existing Heating System The pool is heated by one Viessmann Vitotrond 200 oil boiler (Model: VD2-780, 3,059 MBH Input, 2,693 MBH Output) that was installed in 2007. The boiler delivers heated glycol to various heating loads throughout the building, including:  heating coils in two air handling units,  a small area of perimeter baseboard,  a shell and tube heat exchanger for heating the pool water, and  indirect hot water heaters for heating domestic hot water. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 4 The boiler, heat exchanger and pumps are located in the boiler room, which has two exterior walls. The boiler system runs in a primary/secondary system, which utilizes several system pumps to transfer heated glycol to different zones. The combustion efficiency of the existing fuel oil boiler is approximately 88%. For this study, the Annual Fuel Utilization Efficiency of the oil boiler system was estimated at 80% to account for typical oil boiler inefficiencies, including short cycling. There is routine maintenance of the boiler by the City of Cordova maintenance employee (Micah Renfeldt). The boiler appears to be in good shape and operating correctly. However, it was reported to Coffman that it is difficult to find parts for the boiler because the manufacturer is based in Germany. It was also reported that the boiler is difficult to work on and troubleshoot due to its complexity, as compared to more common boilers found in the United States. One 1,000 gal heating oil tank serves the boiler and is located on the north side of the building. The tank is dual wall and made by Greer. There is no additional spill containment present around the tank. Fuel oil in the tanks is only used for building heating, pool water heating and domestic hot water, and is not used by other buildings. Pool Water According to the design drawings, the pool water capacity is approximately 134,000 gallons of water and requires 600,000 BTU/hr to raise the water temp 0.5 degrees Fahrenheit per hour. A Shell and Tube heat exchanger is used to heat the pool water with a loop from the boiler. The pool utilizes a pool cover during unoccupied times to reduce the humidity load in the building. Using a pool cover is an important energy efficiency strategy and it is recommended that it continues to be used. Domestic Hot Water Domestic hot water is used for showers, hand washing and laundry. Hot water is provided by three Viessmann Vitocell (Model H-300) indirect hot water heaters that each have 120 gallon capacity. A boiler loop is used to indirectly heat the hot water. Air Handling System The pool uses two air handling units (AHUs) to supply heated fresh air to the building. AHU-1 serves the pool area and AHU-2 serves the office and locker room spaces. Three large exhaust fans are used to ventilate the pool area to control the humidity levels. A significant amount of energy is being lost through the pool’s exhaust fans. It was also reported that the exhaust fans typically run continually. Using exhaust fans to control humidity leads to a significant amount of wasted energy. It is recommended that a new pool dehumidification system be investigated to control humidity. Preliminary calculations show that an estimated $20,000 per year in heating oil could be saved by adding a dehumidification system. This improvement is recommended to be completed prior to further evaluation of a biomass heating system. During the site visit it was found that several of the pumps and fans were in manual override mode and are operating continuously. There appears to be significant energy savings in re-commissioning the existing ventilation system to optimize performance and adding an energy recovery system to the exhaust fans. It is recommended that the ventilation system be re-commissioned and energy recovery investigated. This can significantly increase the energy efficiency of the building and reduce heating oil (or cordwood) consumption. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 5 Building Envelope The building is primarily concrete block construction with no additional wall insulation. The mechanical room is 2x4 wood stud construction. The roof is a built up hot roof with an unknown amount of insulation. The design drawings of the facility do not call out insulation or insulation values for the roof or walls of the building. There are no windows in the building. There is an arctic entry way at the main entrance and two man doors at the boiler room. Hydro Electric Boiler Project During the site visit Coffman met with Marc Mueller-Stoffels, Ph.D. from the Alaska Center for Energy and Power (ACEP), who is currently investigating a project with the Cordova Electric Cooperative (CEC). ACEP is studying how an electric resistance boiler at the pool could use excess hydro power during the summer months to offset heating oil. CEC would sell the excess hydro power at a reduced rate and the electric boiler would produce heat, which could offset a significant amount of heating oil. There are opportunities to combine both electric heating and a biomass boiler system. For example, the Garn boiler system may be able to be installed with an electric heating element. This would allow the Garn boiler to act as an electric boiler when cheap hydro power is available in the summer. When excess hydro power is not available (in the fall or winter), then the Garn boiler could be fired with cordwood to offset heating oil consumption. The Garn also has a large water jacket (The WHS-3200 has 3,200 gallons of water) that can act as a buffer tank for utilizing the electric heating elements. If CEC can sell excess hydro power at a low enough rate, the electric boiler would be a great project to pursue. It is recommended that this project be investigated further. Additional equipment cost savings could be had by incorporating the electric boiler into a biomass boiler system as described above. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 6 Available Space There is no space inside of the pool building for a biomass system, so a new detached building will be needed to house a biomass boiler system. There is limited space around the pool building for a new biomass building. The pool is butted up against a steep hill and rock face, which makes access to the rear and side of the building quite difficult. The front of the pool faces the street, which does not have adequate space. The only remaining area that can be easily accessed is the north side of the pool, where the heating oil tank is located. This area faces the New City office building which is currently under construction. Figure 3 – Proposed Site Layout A new biomass building could be built on the north side of the pool as shown in the figure above. However, the location of the building will need to be coordinated with the new stairwell that is planned to be installed adjacent to the new City Office building. See the photo above for the approximate location of the proposed biomass building and future stairwell. Street Access and Fuel Storage The building site is situated along a paved road that can be easily accessed. A small amount of cordwood could be stored near the proposed biomass building, however space is limited. Another option is to possibly combine wood storage under the future stairwell. A third option is to store wood at the base of the new City Office building approximately 50 feet north of the proposed biomass building. This is a larger area that could be easily accessed for wood storage. Location of Proposed Biomass Building Approximate location of future stairwell New City Office Building under construction Pool Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 7 Building or Site constraints The site is slightly sloping and has no wetlands or signs of historical structures. The primary constraint to the site is the available space. Biomass System Integration The pool’s existing hydronic system is designed to operate at high temperatures (200 F supply water temperature and a 180 F return water temperature), which makes it difficult to tie in a Garn style biomass boiler that operates at lower supply water temperatures (around 140 F). The most cost effective way to integrate the Garn boiler is to dedicate the Garn boiler to heating pool water only. A new heat exchanger specifically designed for heating pool water integrated with the Garn would be installed. The rest of the facility would be heated with the existing hydronic system and oil boiler. The existing tube and shell heat exchanger for heating the pool water with the oil boiler would be kept for auxiliary heating. The existing heating oil boiler utilizes a fully modulating RL70/M Riello burner, which allows the boiler to turn down its heat output to one-third. Because of this feature the boiler system does not appear so oversized that there will be major operational issues. However, it may be advantageous to investigate adding a smaller oil boiler, electric boiler, or heat pump for heating the rest of the facility (non-pool water heating), to reduce potential short cycling of the existing oil boiler. The design of the new hydronic system should find ways to minimize potential short cycling of the existing oil boiler. Further engineering design will be required to determine specific strategies for reducing boiler short cycling. Adding a smaller auxiliary heat source as mentioned above is not included as part of this economic analysis. Biomass System Options The City of Cordova is very interested in burning cardboard briquettes. Cordova also has access to local cordwood resources and does not have local access to wood pellets or wood chips. Due to these factors the best biomass technology will be a Garn boiler type system. This will allow burning of both cordwood and cardboard briquettes in a single boiler. Figure 4 – Garn WHS-3200 Wood Boiler Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 8 For this study, a single Garn WHS-3200 wood boiler was studied. This unit has a 3,200 gallon water tank and is 7’4” wide x 7’8” high x 12’ long. The Garn boiler would be housed in an 8’ wide x 20’ long insulated conex located on the north side of the pool. The conex would contain a circulation pump, heat exchanger and controls. The conex and interior components could be pre-constructed offsite and shipped to Cordova for installation. The Garn boiler would deliver heat to a heat exchanger inside the conex, which would transfer heat to a buried piping loop system with 50% propylene glycol. This loop would deliver heat through a direct buried, insulated arctic pipe to a new heat exchanger in the pool’s boiler room, which would be used to heat the pool water. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 9 IV. Energy Consumption and Costs Energy Costs The table below shows the energy comparison of different fuel types. The system efficiency is used to calculate the delivered MMBTU’s of energy to the building. The delivered cost of energy to the building, in $/MMBTU, is the most accurate way to compare costs of different energy types. As shown below, cordwood is cheaper than fuel oil on a $/MMBTU basis in the Cordova area. Table 3 – Energy Comparison Fuel Type Units Gross BTU/unit System Efficiency $/unit Delivered $/MMBTU Cordwood cord 14,990,000 75% $225 $20.01 Cardboard Briquettes ton 14,000,000 75% $210 to $392 1 $20.01 to $37.31 Fuel Oil gal 134,000 80% $4.00 $37.31 Electricity kWh 3,413 99% $0.20 2 $59.19 Wood Pellets (Shipped to Cordova) ton 16,000,000 85% $839 $61.69 1 The price of cardboard briquettes unknown at this time. The price range shown is for reference to see the equivalent cost of cordwood and heating oil on an energy basis. 2 The electricity rate is not a reduced rate when excess hydro is available. Wood Energy The gross energy content of a cord of wood varies depending on tree species and moisture content. Wet or greenwood has higher moisture contents and require additional heat to evaporate moisture before the wood can burn. Thus, wood with higher moisture contents will have lower energy contents. Seasoned or dry wood will typically have 20% moisture content. According to the 2013 Cordova Biomass Feasibility Study, Cordova has access to hemlock, Sitka spruce and black cottonwood. The 2013 study estimates that the average heating value of these three sources is 14.99 MMBTU/cord, which was used for the calculations in Coffman’s analysis. To determine the delivered $/MMBTU of the biomass system, a 75% efficiency for batch burning systems was assumed. This is based on Garn manufacturer documentation and typical operational issues which do not allow firing 100% of the time. According to Keith Kelley with Garn Wood Heating Systems, the Garn boilers are fully capable of burning waste wood products such as wood pallets, wood flooring, and wood straps. However, any wood products with glues, paints or finishes (such as plywood or painted wood) should not be burned due to the toxins released in the combustion gases. Cordwood At this time there is no commercial distributer of cordwood in Cordova. However, this may be an economic opportunity for a business in the future. The 2013 Cordova Biomass Feasibility Study estimates that cordwood can be purchased at a price of $225/cord. This cost is used for Coffman’s economic Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 10 analysis. Please refer to the 2013 study for an in depth analysis of the cordwood resource and pricing. The study shows that there is adequate cordwood resources in the Cordova area. Cardboard Briquettes Cardboard briquettes is another biomass resource that can be utilized. Cordova’s cardboard resource has been studied multiple times in 2009 Dalson Energy Study and the 2013 Cordova Biomass Feasibility Study. These studies estimate the heating value of cardboard from 6,000 BTU/lb to 7,939 BTU/lb. For Coffman’s analysis, a heating value of 7,000 BTU/lb (14.0 MMBTU/ton) for cardboard was used. Cardboard briquettes can be batch burned similar to cordwood in a Garn system. So the same Garn unit could burn both cordwood and cardboard briquettes. Like cordwood above, an efficiency of 75% for burning cardboard briquettes is used for the study. The amount of cardboard generated in Cordova has increased over the years. The 2009 Dalson Energy Study estimated 10 to 16 tons of annual cardboard. In the spring of 2015 the City of Cordova Public Works reported to Coffman that there is now 36 to 60 tons of annual cardboard. For Coffman’s analysis, the annual cardboard supply is estimated at 50 tons per year. Burning 50 tons of cardboard will supply approximately 22% of the pools annual heating needs. Similar to cordwood, there is currently no commercial manufacturer or distributer of cardboard briquettes. This is another economic opportunity that could be developed by a local business or organization. Manufacturing of cardboard briquettes requires shredding the cardboard into feedstock with a large shredding machine. The shredder is manually loaded with cardboard, paper or waste construction wood. The shredding operation creates a significant amount of dust and so a dust collection system is typically utilized. The cardboard feedstock is then transferred with an auger to a briquette press machine that compresses the cardboard feedstock into solid briquettes in similar size to a hockey puck. Photos of the shredder and briquette press manufactured by Weima are shown below. Shredder (WLK-6) 81” long x 54” wide X 65” high 4,400 lbs Briquette Press (TH-514) 82” long x 70” wide x 55” high 2,100 lbs Figure 5 – Cardboard Shredder and Briquette Press In order for the cardboard briquettes to be economical they must be less than heating oil on an energy basis. The maximum cost for cardboard briquettes is $392/ton, which is equivalent to burning $4.00/gal heating oil on an energy basis. However, the cost of the briquettes should be less than heating oil in order to offer monetary savings to the Pool. A better price for the Pool would be if the cardboard briquettes Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 11 were the same price as cordwood on an energy basis ($210/ton), or less. At this time the price for purchasing cardboard briquettes is unknown and further analysis (such as a business plan) would be required to get a more accurate selling price for cardboard briquettes. Based on cardboard briquette prices above, selling 50 tons of cardboard to the Pool could bring in between $10,500 to $19,600 in revenue to the business. To determine if this business is economical will require a detailed business plan to determine equipment costs, labor costs, delivery costs as well has other business related expenses. A building will also be required to house the equipment and operation. Developing such a business plan is outside of the scope of this feasibility study. However, Coffman contacted Weima America to help the City of Cordova get an idea of the budgetary equipment costs for the shredding and briquetting machines. Budgetary costs for the basic components of the shredding and briquetting system were provided by Mark Kunz of Weima and are shown below. A Weima WLK-6 shredder and TH-514 briquette press can produce 120 pounds per hour of briquettes. This system can produce around 124 tons of briquettes annually if it’s operated 40 hours per week, so it will be able to use all of Cordova’s current cardboard waste and have room for increased amounts of cardboard in the future. Table 4 – Energy Comparison Equipment Budgetary Cost Shredder (Model WLK-6) $40,000 Feed Auger from Shredder to Briquette Press $12,000 Briquette Press (Model TH-514) $40,000 Dust Collection System $10,000 Total Budgetary Equipment Cost $102,000 It is recommended that the City of Cordova further develop a business plan for a cardboard briquetting system. As the cardboard and paper waste stream of the City increases, the business will become more economical. Wood Pellets There is no local wood pellet manufacturer or distributer in Cordova, which means that wood pellets would have to be barged into the community. Wood pellets are typically sold in 40 lb bags and shipped by the pallet (where 50 bags are loaded on a pallet). Each pallet is one ton of pellets. Wood pellets are currently sold in Anchorage for $295/ton. The cost for shipping one ton of wood pellets by barge to Cordova was quoted by two companies (Lynden Transport and Samson Tug & Barge). Costs are around $640/ton from Anchorage and $840/ton from Seattle. It is assumed that shipping rates will be reduced by 15% if a substantial volume of pellets is shipped, due to economies of scale. For this report it is assumed that shipping costs are $544/ton. The total cost of wood pellets will be $839/ton, which is more expensive than heating oil or electricity on a BTU basis. Due to these factors, wood pellets was not considered as an economical fuel for this study. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 12 Heating Oil The high price of fuel oil is the main economic driver for the use of lower cost biomass heating. Fuel oil is shipped into Cordova by barge and currently costs approximately $4.00/gal. For this study, the energy content of fuel oil is based on 134,000 BTU/gal, according to the UAF Cooperative Extension. Electricity Electricity is provided by the local power utility, Cordova Electric Cooperative. According to the Pool’s electric utility bills from 2014, the building has an effective electricity rate of approximately $0.20/kWh. This rate is used in the economic analysis. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 13 Existing Fuel Oil Consumption An estimate of the Pool’s heating oil consumption was made based on heating oil bills from 2013 and 2014. On average the Pool consumes approximately 22,000 gal of fuel oil annually for heating needs. The estimated annual fuel cost, based on the current price of heating oil, is $88,000. Table 5 – Existing Fuel Oil Consumption Building Fuel Type Annual Consumption Net MMBTU/yr Avg. Annual Cost Pool Fuel Oil 22,000 gal 2358.4 $88,000 Biomass System Consumption It is estimated that the proposed biomass system will offset 64% of the heating energy for the building, by burning cordwood. The remaining 36% of the heating energy will be provided by the existing oil boilers. This result is based on an analysis of the pool’s annual heating oil consumption and the heat output of the Garn boiler. It is assumed that the Garn WHS-3200 is loaded every 12 hours, which will produce 176,000 BTU/hr per manufacturer documentation. More frequent loading is possible, which will increase BTU output and allow additional heating oil offset during colder times of the year. Overall, the Garn system will save approximately $26,063 of heating oil annually. Table 6 – Proposed Biomass System Fuel Consumption Building Fuel Type % Heating Source Net MMBTU/yr Annual Consumption Energy Cost Total Energy Cost Annual Energy Savings Pool Cordwood 64% 1509.4 134 cords $30,208 $61,938 $26,062 Fuel Oil 36% 849.0 7,920 gal $31,680 Additional Electricity N/A N/A 250 kWh $50 Burning cardboard briquettes in the proposed Garn boiler is also possible. However, an economic analysis for burning cardboard briquettes was not completed because a business plan will be required to determine an accurate selling price. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 14 V. Preliminary Cost Estimating An estimate of probable costs was completed for installing the Garn boiler system. The cost estimate is based equipment quotes and from previous cost estimates created for similar projects. A 10% remote factor was used to account for increased shipping and installation costs in Cordova. Project and Construction Management was estimated at 5%. Engineering design and permitting was estimated at 20% and a 15% contingency was used. Table 7 – Estimate of Probable Cost Category Description Cost Site Work Site Grading for Conex $ 4,000 Foundation (Timbers and Anchors) $ 5,000 Buried Utilities $ 5,000 Subtotal $ 14,000 Electrical Utilities Service Entrance $ 5,000 Conduit and Wiring $ 5,000 Subtotal $ 10,000 Wood Boiler Conex Insulated Conex 8 ft x 20 ft $ 15,000 Garn Boiler WHS 3200 $ 46,500 Heat Exchanger $ 5,000 Installation, Piping & Materials $ 45,000 Fire Allowance $ 6,000 Controls Allowance $ 5,000 Electrical Allowance $ 6,000 Shipping $ 30,000 Site Installation $ 10,000 Subtotal $ 168,500 Pool Building Mechanical Pool Heat Exchanger $ 5,000 Installation, Piping & Materials $ 10,000 Subtotal $ 15,000 Subtotal Material and Installation Cost $ 207,500 Remote Factor 10% $ 20,750 Subtotal $ 228,250 Project and Construction Management 5% $ 11,413 Subtotal $ 239,663 Design Fees and Permitting 20% $ 47,932 Subtotal $ 287,595 Contingency 15% $ 43,139 Total Project Cost $ 330,734 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 15 VI. Economic Analysis The following assumptions were used to complete the economic analysis for this study. Table 8 – Inflation rates Discount Rate for Net Present Value Analysis 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% The real discount rate, or minimum attractive rate of return, is 3.0% and is the current rate used for all Life Cycle Cost Analysis by the Alaska Department of Education and Early Development. This is a typical rate used for completing economic analysis for public entities in Alaska. The escalation rates used for the wood, heating oil, electricity and O&M rates are based on rates used in the Alaska Energy Authority funded 2013 and 2014 biomass pre-feasibility studies. These are typical rates used for this level of evaluation and were used so that results are consistent and comparable to the previous studies. O&M Costs Non-fuel related operations and maintenance costs (O&M) were estimated at $400 per year. The estimate is based on annual maintenance time for the Garn boiler. For only the first two years of service, the maintenance cost is doubled to account for maintenance staff getting used to operating the new system. Labor costs for daily stoking of the boiler are not included, as this is typically completed by a maintenance person who is already hired by the organization that utilizes the boiler and stoking the boiler would become part of their daily duties. Definitions There are many different economic terms used in this study. A listing of all of the terms with their definition is provided below for reference. Table 9 – Economic Definitions Economic Term Description Project Capital Cost This is the opinion of probable cost for designing and constructing the project. Simple Payback The Simple Payback is the Project Capital Cost divided by the first year annual energy savings. The Simple Payback does not take into account escalated energy prices and is therefore not a good measure of project viability. 𝑅𝑖𝑖𝑖𝑖𝑎 𝑂𝑎𝑦𝑎𝑎𝑎𝑖= 𝐼𝑖𝑟𝑟𝑎𝑖𝑖𝑎𝑎 𝐵𝑖𝑟𝑟 𝑖𝑎 𝐸𝐵𝑀 𝐸𝑖𝑟𝑟𝑟 𝑌𝑎𝑎𝑟 𝐸𝑖𝑎𝑟𝑎𝑦 𝑅𝑎𝑣𝑖𝑖𝑎𝑟 𝑖𝑎 𝐸𝐵𝑀 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 16 Table 9 – Economic Definitions Economic Term Description Present Value of Project Benefits (20 year life) The present value of all of the heating oil that would have been consumed by the existing heating oil-fired heating system, over a 20 year period. Present Value of Operating Costs (20 year life) The present value of all of the proposed biomass systems operating costs over a 20 year period. This includes wood fuel, additional electricity, and O&M costs for the proposed biomass system and the heating oil required by the existing equipment to supply the remaining amount of heat to the building. Benefit / Cost Ratio of Project (20 year life) This is the benefit to cost ratio over the 20 year period. A project that has a benefit to cost ratio greater than 1.0 is economically justified. It is defined as follows: 𝐵𝑎𝑖𝑎𝑎𝑖𝑟 / 𝐵𝑖𝑟𝑟 𝑅𝑎𝑟𝑖𝑖 = 𝑂𝑉(𝑂𝑟𝑖𝑖𝑎𝑎𝑟 𝐵𝑎𝑖𝑎𝑎𝑖𝑟𝑟)− 𝑂𝑉(𝑂𝑖𝑎𝑟𝑎𝑟𝑖𝑖𝑎 𝐵𝑖𝑟𝑟𝑟) 𝑂𝑟𝑖𝑖𝑎𝑎𝑟 𝐵𝑎𝑖𝑖𝑟𝑎𝑖 𝐵𝑖𝑟𝑟 Where: PV = The present value over the 20 year period Reference Sullivan, Wicks and Koelling, “Engineering Economy”, 14th ed., 2009, pg. 440, Modified B-C Ratio. Net Present Value (20 year life) This is the net present value of the project over a 20 year period. If the project has a net present value greater than zero, the project is economically justified. This quantity accounts for the project capital cost, project benefits and operating costs. Year Accumulated Cash Flow > Project Capital Cost This is the number of years it takes for the accumulated cash flow of the project to be greater than or equal to the project capital cost. This is similar to the project’s simple payback, except that it incorporates the inflation rates. This quantity is the payback of the project including escalating energy prices and O&M rates. This quantity is calculated as follows: 𝐼𝑖𝑟𝑟𝑎𝑖𝑖𝑎𝑎 𝐵𝑖𝑟𝑟≤∑𝑅𝑘 𝐽 𝑘=0 Where: J = Year that the accumulated cash flow is greater than or equal to the Project Capital Cost. 𝑅𝑘 = Project Cash flow for the kth year. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 17 Results An economic analysis was completed in order to determine the simple payback, benefit to cost ratio, and net present value of the proposed Garn boiler system, as shown in the table below. The Garn boiler would be located in a detached conex and heating pipes would connect to the new heat exchanger in the Pool’s mechanical room. The Garn would be dedicated to heating the pool water, in order to take advantage of lower heating water temperatures and overall higher wood boiler efficiencies. The existing heating oil boiler would still be used to heat the rest of the facility and supplement the pool water heating when needed. A cordwood storage building was not included in this analysis. If possible, combining the new office building stairwell to act as wood storage could save storage facility costs. The proposed Garn boiler project has a benefit to cost ratio of 2.20 over the 20 year study period, which makes the project economically justified. Any project with a benefit to cost ratio above 1.0 is considered economically justified. The main reason the project is viable is because of the large quantity of heating oil savings compared to the relatively low price of cordwood. Please refer to Appendix B for the economic analysis spreadsheet for greater detail. Table 10 – Economic Analysis Results Project Capital Cost $330,734 Present Value of Project Benefits (20 year life) $2,063,893 Present Value of Operating Costs (20 year life) $1,337,273 Benefit / Cost Ratio of Project (20 year life) 2.20 Net Present Value (20 year life) $395,886 Year Accumulated Cash Flow is Net Positive First Year Year Accumulated Cash Flow > Project Capital Cost 11 years Simple Payback 13.1 years It was found that if a pool dehumidification system is installed the Benefit / Cost Ratio of the biomass project will also be 2.20. This is because the present value of project benefits and operating costs are both reduced by the same amount, due to the heating oil savings of the new dehumidification system and because the biomass system only offsets a percentage of the total heat requirement. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 18 Sensitivity Analysis A sensitivity analysis was completed to show how changing heating oil costs and wood costs affect the benefit to cost (B/C) ratios of the project. As heating oil costs increase and wood costs decrease, the project becomes more economically viable. The B/C ratios greater than 1.0 are economically justified and are highlighted in green. B/C ratios less than 1.0 are not economically justified and are highlighted in red. Table 11 – Sensitivity Analysis B/C Ratios Cordwood Cost $200/cord $225/cord $300/cord $350/cord Heating Oil Cost $3.50/gal 1.89 1.70 1.11 0.71 $3.75/gal 2.14 1.95 1.36 0.96 $4.00/gal 2.39 2.20 1.61 1.21 $4.25/gal 2.64 2.45 1.86 1.46 $4.50/gal 2.89 2.70 2.11 1.71 Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 19 VII. Forest Resource and Fuel Availability Assessments Forest Resource Assessments In 2012 the Department of Natural Resources Division of Forestry wrote the “Assessment of Woody Biomass Energy Resources in the Cordova Area”. This Forest Resource Assessment is a great resource that quantifies timber resources in the Cordova Area for biomass heating. Air Quality Permitting Currently, air quality permitting is regulated according to the Alaska Department of Environmental Conservation Section 18 AAC 50 Air Quality Control regulations. Per these regulations, a minor air quality permit is required if a new wood boiler or wood stove produces one of the following conditions per Section 18 AAC 50.502 (C)(1): 40 tons per year (TPY) of carbon dioxide (CO2), 15 TPY of particulate matter greater than 10 microns (PM-10), 40 TPY of sulfur dioxide, 0.6 TPY of lead, 100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area, or 10 TPY of direct PM -2.5 emissions. These regulations assume that the device will operate 24 hours per day, 365 days per year and that no fuel burning equipment is used. If a new wood boiler or wood stove is installed in addition to a fuel burning heating device, the increase in air pollutants cannot exceed the following per AAC 50.502 (C)(3): 10 TPY of PM-10, 10 TPY of sulfur dioxide, 10 TPY of nitrogen oxides, 100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area, or 10 TPY of direct PM-2.5 emissions. Per the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075), a person may not operate a wood-fired heating device in a manner that causes black smoke or visible emissions that exceed 50 percent opacity for more than 15 minutes in any hour in an area where an air quality advisory is in effect. From Coffman’s discussions with Patrick Dunn at the Alaska Department of Environmental Conservation, these regulations are focused on permitting industrial applications of wood burning equipment. In his opinion, it would be unlikely that an individual wood boiler would require an air quality permit unless several boilers were to be installed and operated at the same site. If several boilers were installed and operated together, the emissions produced could be greater than 40 tons of CO2 per year. This would require permitting per AAC 50.502 (C)(1) or (C)(3). Permitting would not be required on the residential wood fired stoves unless they violated the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075). Recent Garn boiler systems installed in Alaska have not required air quality permits. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 20 VIII. General Biomass Technology Information Heating with Wood Fuel Wood fuels are among the most cost-effective and reliable sources of heating fuel for communities adjacent to forestland when the wood fuels are processed, handled, and combusted appropriately. Compared to other heating energy fuels, such as oil and propane, wood fuels typically have lower energy density and higher associated transportation and handling costs. Due to this low bulk density, wood fuels have a shorter viable haul distance when compared to fossil fuels. This short haul distance also creates an advantage for local communities to utilize locally-sourced wood fuels, while simultaneously retaining local energy dollars. Most communities in rural Alaska are particularly vulnerable to high energy prices due to the large number of heating degree days and expensive shipping costs. For many communities, wood-fueled heating can lower fuel costs. For example, cordwood sourced at $250 per cord is just 25% of the cost per MMBTU as #1 fuel oil sourced at $7 per gallon. In addition to the financial savings, the local communities also benefit from the multiplier effect of circulating energy dollars within the community longer, more stable energy prices, job creation, and more active forest management. The local cordwood market is influenced by land ownership, existing forest management and ecological conditions, local demand and supply, and the State of Alaska Energy Assistance program. Types of Wood Fuel Wood fuels are specified by energy density, moisture content, ash content, and granulometry. Each of these characteristics affects the wood fuel’s handling characteristics, storage requirements, and combustion process. Higher quality fuels have lower moisture, ash, dirt, and rock contents, consistent granulometry, and higher energy density. Different types of fuel quality can be used in wood heating projects as long as the infrastructure specifications match the fuel content characteristics. Typically, lower quality fuel will be the lowest cost fuel, but it will require more expensive storage, handling, and combustion infrastructure, as well as additional maintenance. Projects in rural Alaska must be designed around the availability of wood fuels. Some fuels can be harvested and manufactured on site, such as cordwood, woodchips, and briquettes. Wood pellets can also be used, but typically require a larger scale pellet manufacturer to make them. The economic feasibility of manufacturing on site is determined by a financial assessment of the project. Typically, larger projects offer more flexibility in terms of owning and operating the wood harvesting and manufacturing equipment, such as a wood chipper, splitter, or equipment to haul wood out of forest, than smaller projects. Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 21 High Efficiency Wood Pellet Boilers High efficiency pellet boilers are designed to burn wood pellets cleanly and efficiently. These boilers utilize pellet storage bins or silos that hold a large percentage of the building’s annual pellet supply. Augers or vacuums transfer pellets from the silos to a pellet hopper adjacent to the pellet boiler, where pellets can be fed into the boiler for burning. Pellets are automatically loaded into the pellet boiler and do not require manual loading such as in a Garn cordwood boiler. The pellet boilers typically have a 3 to 1 turn down ratio, which allows the firing rate to modulate from 100% down to 33% fire. This allows the boiler to properly match building heat demand, increasing boiler efficiency. The efficiencies of these boilers can range from 85% to 92% efficiency depending on firing rate. Two of the best quality pellet boilers in the U.S. market are the Maine Energy Systems PES boilers and the Froling P4 boilers. These boilers have high end controls, automatic ash removal and have a good reputation for quality. The Maxim Pellet Boiler is a less costly option and can be used directly outdoors if needed. According to Chad Shumacher, General Manager of Superior Pellets, his Maxim boiler automation does not operate as well as the Maine Energy Systems units, but they are less than half the price. The working lifespan of the Maxim boilers also may be less than the higher quality units. High Efficiency Cordwood Boilers High Efficiency Low Emission (HELE) cordwood boilers are designed to burn cordwood fuel cleanly and efficiently. The boilers use cordwood that is typically seasoned to 25% moisture content (MC) or less and meet the dimensions required for loading and firing. The amount of cordwood burned by the boiler will depend on the heat load profile of the building and the utilization of the fuel oil system as back up. Two HELE cordwood boiler suppliers include Garn (www.garn.com) and TarmUSA (www.woodboilers.com). Both of these suppliers have units operating in Alaska. TarmUSA has a number of residential units operating in Alaska and has models that range between 100,000 to 300,000 BTU/hr. Garn boilers, manufactured by Dectra Corporation, are used in Tanana, Kasilof, Dot Lake, Thorne Bay, Coffman Cove and other locations to heat homes, washaterias, schools, and community buildings. The Garn boiler has a unique construction, which is basically a wood boiler housed in a large water tank. Garn boilers come in several sizes and are appropriate for facilities using 100,000 to 1,000,000 BTUs per hour. The jacket of water surrounding the fire box absorbs heat and is piped into buildings via a heat exchanger, and then transferred to an existing building heating system, infloor radiant tubing, unit heaters, or baseboard heaters. In installations where the Garn boiler is in a detached building, there are additional heat exchangers, pumps and a glycol circulation loop that are necessary to transfer heat to the building while allowing for freeze protection. Radiant floor heating is the most efficient heating method when using wood boilers such as Garns, because they can operate using lower supply water temperatures compared to baseboards. Garn boilers are approximately 87% efficient and store a large quantity of water. For example, the Garn WHS-2000 holds approximately 1,825 gallons of heated water. Garns also produce virtually no smoke when at full burn, because of a primary and secondary gasification (2,000 ºF) burning process. Garns are manually stocked with cordwood and can be loaded multiple times a day during periods of high heating demand. Garns are simple to operate with only three moving parts: a handle, door and blower. Garns produce very little ash and require minimal maintenance. Removing ash and inspecting fans are typical maintenance requirements. Fans are used to produce a draft that increases combustion temperatures and boiler efficiency. In cold climates, Garns can be equipped with exterior insulated storage tanks for extra hot water circulating capacity. Most facilities using cordwood boilers keep existing oil-fired systems Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 22 operational to provide heating backup during biomass boiler downtimes and to provide additional heat for peak heating demand periods. Low Efficiency Cordwood Boilers Outdoor boilers are categorized as low-efficiency, high emission (LEHE) systems. These boiler systems are not recommended as they produce significant emission issues and do not combust wood fuels efficiently or completely, resulting in significant energy waste and pollution. These systems require significantly more wood to be purchased, handled and combusted to heat a facility as compared to a HELE system. Additionally, several states have placed a moratorium on installing LEHE boilers because of air quality issues (Washington). These LEHE systems can have combustion efficiencies as low as twenty five (25%) percent and produce more than nine times the emission rate of standard industrial boilers. In comparison, HELEs can operate around 87% efficiency. High Efficiency Wood Stoves Newer high efficiency wood stoves are available on the market that produce minimal smoke, minimal ash and require less firewood. New EPA-certified wood stoves produce significantly less smoke than older uncertified wood stoves. High efficiency wood stoves are easy to operate with minimal maintenance compared to other biomass systems. The Blaze King Classic high efficiency wood stove (www.blazeking.com) is a recommended model, due to its built-in thermostats that monitor the heat output of the stove. This stove automatically adjusts the air required for combustion. This unique technology, combined with the efficiencies of a catalytic combustor with a built-in thermostat, provides the longest burn times of any wood stove. The Blaze King stove allows for optimal combustion and less frequent loading and firing times. Bulk Fuel Boilers Bulk fuel boilers usually burn wood chips, sawdust, bark or pellets and are designed around the wood resources that are available from the local forests or local industry. Several large facilities in Tok, Craig, and Delta Junction (Delta Greely High School) are using bulk fuel biomass systems. Tok uses a commercial grinder to process woodchips. The chips are then dumped into a bin and are carried by a conveyor belt to the boiler. The wood fuel comes from timber scraps, local sawmills and forest thinning projects. The Delta Greely High School has a woodchip bulk fuel boiler that heats the 77,000 square foot facility. The Delta Greely system, designed by Coffman engineers, includes a completely separate boiler building which includes a chip storage bunker and space for storage of tractor trailers full of chips (so handling of frozen chips could be avoided). Woodchips are stored in the concrete bunker and augers move the material on a conveyor belt to the boilers. Grants There are many grant opportunities for biomass work state, federal, and local for feasibility studies, design and construction. If a project is pursued, a thorough search of websites and discussions with the AEA Biomass group would be recommended to make sure no possible funding opportunities are missed. Below are some funding opportunities and existing past grants that have been awarded. Currently, there is a funding opportunity for tribal communities that develop clean and renewable energy resources through the U.S. Department of Energy. On April 30, 2013, the Department of Energy announced up to $7 million was available to deploy clean energy projects in tribal communities to reduce reliance on fossil fuel and promote economic development on tribal lands. The Energy Department’s Tribal Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 23 Energy Program, in cooperation with the Office of Indian Energy, will help Native American communities, tribal energy resource development organizations, and tribal consortia to install community or facility scale clean energy projects. http://apps1.eere.energy.gov/tribalenergy/ The Department of Energy (DOE), Alaska Native programs, focus on energy efficiency and add ocean energy into the mix. In addition the communities are eligible for up to $250,000 in energy-efficiency aid. The Native village of Kongiganak will get help strengthening its wind-energy infrastructure, increasing energy efficiency and developing “smart grid technology”. Koyukuk will get help upgrading its energy infrastructure, improving energy efficiency and exploring biomass options. The village of Minto will explore all the above options as well as look for solar-energy ideas. Shishmaref, an Alaska Native village faced climate-change-induced relocation, will receive help with increasing energy sustainability and building capacity as it relocates. And the Yakutat T’lingit Tribe will also study efficiency, biomass and ocean energy. This DOE program would be a viable avenue for biomass funding. http://energy.gov/articles/alaska-native-communities-receive-technical-assistance-local-clean-energy- development The city of Nulato was awarded a $40,420 grant for engineering services for a wood energy project by the United States Department of Agriculture (USDA) and the United States Forest Service. Links regarding the award of the Woody Biomass Utilization Project recipients are shown below: http://www.fs.fed.us/news/2012/releases/07/renewablewoods.shtml http://www.usda.gov/wps/portal/usda/usdahome?contentid=2009/08/0403.xml Delta Junction was awarded a grant for engineering from the Alaska Energy Authority from the Renewable Energy Fund for $831,203. This fund provides assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities. http://www.akenergyauthority.org/re-fund-6/4_Program_Update/FinalREFStatusAppendix2013.pdf http://www.akenergyauthority.org/PDF%20files/PFS-BiomassProgramFactSheet.pdf http://www.akenergyauthority.org/RenewableEnergyFund/RFA_Project_Locations_20Oct08.pdf The Alaska Wood Energy Development Task Group (AWEDTG) consists of a coalition of federal and state agencies and not-for-profit organizations that have signed a Memorandum of Understanding (MOU) to explore opportunities to increase the utilization of wood for energy and biofuels production in Alaska. A pre-feasibility study for Aleknagik was conducted in 2012 for the AWEDTG. The preliminary costs for the biomass system(s) are $346,257 for the city hall and health center system and $439,096 for the city hall, health center, and future washeteria system. http://www.akenergyauthority.org/biomasswoodenergygrants.html http://www.akenergyauthority.org/BiomassWoodEnergy/Aleknagik%20Final%20Report.pdf The Emerging Energy Technology Fund grand program provides funds to eligible applicants for demonstrations projects of technologies that have a reasonable expectation to be commercially viable Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 24 within five years and that are designed to: test emerging energy technologies or methods of conserving energy, improve an existing energy technology, or deploy an existing technology that has not previously been demonstrated in Alaska. http://www.akenergyauthority.org/EETFundGrantProgram.html Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 25 Appendix A Site Photos Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 26 1. South elevation of building 2. West elevation of building 3. North elevation of building 4. East elevation of building 5. Site entrance 6. Approximate location of new biomass building on north side of building Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 27 7. Inside Pool 8. Boiler Room 9. Domestic Hot Water Pumps and Heaters 10. Inside Pool 11. Site Entrance 12. Heating Oil Tank Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. 28 13. Main Electrical Panel 14. Electrical Panel 15. Electrical Service 16. Boiler Burner Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. Appendix B Economic Analysis Spreadsheet Bob Korn Memorial Swimming PoolCordova, AlaskaProject Capital Cost($330,734)Present Value of Project Benefits (20 year life)$2,063,893Present Value of Operating Costs (20 year life)($1,337,273)Benefit / Cost Ratio of Project (20 year life)2.20Net Present Value (20 year life)$395,886.19Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost11 yearsSimple Payback = Total Project Cost / First Year Cost Savings13.1 yearsDiscount Rate for Net Present Value Analysis3%Wood Fuel Escalation Rate3%Fossil Fuel Escalation Rate5%Electricity Escalation Rate3%O&M Escalation Rate2%YearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYear1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Existing Heating System Operating CostsExisting Heating Oil Consumption$4.0022,000gal$88,000$92,400$97,020$101,871$106,965$112,313$117,928$123,825$130,016$136,517$143,343$150,510$158,035$165,937$174,234$182,946$192,093$201,698$211,782$222,372Biomass System Operating CostsCord Wood (Delivered to site)$225.0064%134.0cords($30,150)($31,055)($31,986)($32,946)($33,934)($34,952)($36,001)($37,081)($38,193)($39,339)($40,519)($41,735)($42,987)($44,276)($45,605)($46,973)($48,382)($49,833)($51,328)($52,868)Fossil Fuel$4.0036%7,920gal($31,680)($33,264)($34,927)($36,674)($38,507)($40,433)($42,454)($44,577)($46,806)($49,146)($51,603)($54,184)($56,893)($59,737)($62,724)($65,860)($69,153)($72,611)($76,242)($80,054)Additional Electricity$0.20250kWh($50)($52)($53)($55)($56)($58)($60)($61)($63)($65)($67)($69)($71)($73)($76)($78)($80)($83)($85)($88)Operation and Maintenance Costs($400)($408)($416)($424)($433)($442)($450)($459)($469)($478)($488)($497)($507)($517)($528)($538)($549)($560)($571)($583)Additional Operation and Maintenance Costs for first 2 years($400)($408)$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0Total Operating Costs($62,680)($65,186)($67,383)($70,098)($72,931)($75,884)($78,965)($82,179)($85,531)($89,028)($92,677)($96,485)($100,458)($104,605)($108,932)($113,449)($118,165)($123,087)($128,226)($133,592)Annual Operating Cost Savings$25,320 $27,214 $29,637 $31,773 $34,034 $36,428 $38,963 $41,646 $44,485 $47,489 $50,665 $54,025 $57,577 $61,333 $65,302 $69,496 $73,928 $78,610 $83,556 $88,779Accumulated Cash Flow$25,320 $52,534 $82,171 $113,944 $147,978 $184,407 $223,370 $265,016 $309,501 $356,990 $407,655 $461,680 $519,258 $580,590 $645,892 $715,388 $789,317 $867,927 $951,483 $1,040,262Net Present Value($306,151.48) ($280,499.67) ($253,377.20) ($225,147.65) ($195,789.65) ($165,281.38) ($133,601) ($100,725) ($66,631) ($31,295)$5,307 $43,199 $82,407 $122,955 $164,870 $208,177 $252,905 $299,080 $346,731 $395,886Economic Analysis ResultsInflation RatesDescription Unit CostHeating Source ProportionAnnual Energy UnitsEnergy Units Feasibility Assessment for Biomass Heating Systems Cordova, AK Coffman Engineers, Inc. Appendix C AWEDTG Field Data Sheet