HomeMy WebLinkAboutCraig Pre Feasibility Assessment for Integration of Wood Fired Heating Systems Shaan Seet Inc Final Report 7-24-2012-BIO
Pre-Feasibility Assessment for
Integration of Wood-Fired Heating Systems
Final Report
July 24, 2012
Shaan Seet, Inc.
Craig, Alaska
Presented by
CTA Architects Engineers
Nick Salmon & Nathan Ratz
Lars Construction Management Services
Rex Goolsby
For
Shaan Seet Native Corporation
In partnership with
Fairbanks Economic Development Corporation
Alaska Wood Energy Development Task Group
Funded by
Alaska Energy Authority and U.S. Forest Service
306 W. Railroad, Suite 104
Missoula, MT 59802
406.728.9522
www.ctagroup.com
CTA Project: FEDC_KETCHCRAIG_SSI
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers i
July 24, 2012
TABLE OF CONTENTS
1.0 Executive Summary ................................................................................................... 1
2.0 Introduction ............................................................................................................... 3
3.0 Existing Building Systems.......................................................................................... 3
4.0 Energy Use ............................................................................................................... 3
5.0 Biomass Boiler Size ................................................................................................... 4
6.0 Wood Fuel Use .......................................................................................................... 5
7.0 Boiler Plant Location and Site Access ....................................................................... 6
8.0 Integration with Existing Heating Systems ................................................................. 6
9.0 Air Quality Permits ..................................................................................................... 7
10.0 Wood Heating Options .............................................................................................. 7
11.0 Estimated Costs ........................................................................................................ 7
12.0 Economic Analysis Assumptions ............................................................................... 7
13.0 Results of Evaluation ................................................................................................. 8
14.0 Project Funding ......................................................................................................... 8
15.0 Summary ................................................................................................................... 9
16.0 Recommended Action ............................................................................................... 9
Appendixes
Appendix A: Preliminary Estimates of Probable Cost ................................................ 2 pages
Appendix B: Cash Flow Analysis ............................................................................... 5 pages
Appendix C: Site Plan ............................................................................................... 1 pages
Appendix D: Air Quality Report ............................................................................... 11 pages
Appendix E: Wood Fired Heating Technologies ........................................................ 3 pages
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 1 of 9
July 24, 2012
1.0 Executive Summary
The following assessment was commissioned to determine the preliminary technical and
economic feasibility of integrating a wood fired heating system in the Shaan-Seet Office,
the Modular Home Rental, the Shaan-Seet Hotel and the Heated Storage Building in Craig
Alaska.
The following tables summarize the current fuel use and the potential wood fuel use:
Table 1.1 - Annual Fuel Use Summary
Fuel Avg. Use Current Annual
Facility Name Type (Gallons) Cost/Gal Cost
Shaan Seet
Office Fuel Oil 2,000 $4.10 $8,400
Rental Trailer Fuel Oil 800 $4.10 $3,360
Shaan Seet Hotel Fuel Oil 2250 $4.10 $9,450
Storage Building Fuel Oil 500 $4.10 $2,100
Table 1.2 - Annual Wood Fuel Use Summary
Fuel Cord Wood
Oil Wood Pellets
(Gallons) (Cords) (Tons)
Shaan Seet Office (SSO) 2,000 17.5 15.9
Shaan Seet House (SSH) 820 7.2 6.5
Shaan Seet Heated Storage (SSHS) 500 4.4 4.0
Shaan Seet Hotel (SSH) 2,250 19.7 17.9
SSO + SSH 2,820 24.6 22.5
SSO + SSH + SSHS 3,320 29.0 26.5
SSO + SSH + SSHS + SSH 5,570 48.7 44.4
Note: Wood fuel use assumes offsetting 85% of the current energy use.
Based on the estimated volume of wood and the estimated biomass boiler size, a pellet
option and cord wood option will be evaluated. Chipped/ground fuel boilers were not
considered because the potential fuel cost savings would not pay for the high capital cost
of these system types. The options reviewed were:
Pellet Boiler Options:
B.1: Shaan Seet Office and House
B.2: Shaan Seet Office, House, and Heated Storage
B.3: Shaan Seet Office, House, Heated Storage, and Hotel
Cord Wood Boiler Option:
C.1: Shaan Seet Office and House
The table on the following page summarizes the economic evaluation for each option:
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 2 of 9
July 24, 2012
Table 1.3 - Economic Evaluation Summary
Shaan Seet Biomass Heating System
Year 1 NPV NPV
20
Yr
30
Yr
Project Operating 30 yr 20 yr B/C B/C ACF ACF YR
Cost Savings at 3% at 3% Ratio Ratio YR 20 YR 30 ACF=PC
B.1 $745,000 -$4,122 $28,454 -$9,009 -0.01 0.04 -$4,943 $76,568 >30
B.2 $884,000 -$3,626 $60,561 $7,816 0.01 0.07 $19,429 $133,811 >30
B.3 $1,100,000 -$1,241 $209,568 $86,541 0.08 0.19 $133,277 $398,792 >30
C.1 $350,000 -$4,786 $33,107 -$11,094 -0.03 0.09 -$6,335 $89,794 >30
The Shaan Seet buildings appear to be a poor candidate for the use of a wood biomass
heating system. With the current economic assumptions, the economic viability of all the
options is poor and none of the options meet the minimum requirement of the 20 year B/C
ratio exceeding 1.0. Each building individually does not spend enough on heating fuel to
be able to pay for a project through potential savings. Combining multiple buildings
increases the project costs without substantially increasing the annual fossil fuel use.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 3 of 9
July 24, 2012
2.0 Introduction
The following assessment was commissioned to determine the preliminary technical and
economic feasibility of integrating a wood fired heating system in the Shaan-Seet Office,
the Modular Home Rental, the Shaan-Seet Hotel, the Heated Storage Building in Craig
Alaska.
3.0 Existing Building Systems
The Shaan-Seet Office a wood framed building constructed in 1992. The facility is
approximately 3,600 square feet and is heated by a 140,000 Btu/hr output furnace and two
40,000 Btu/hr output Toyo stoves. The stoves are the primary source of heat, and the
furnace is only turned on in extremely cold weather. Domestic hot water is provided by a
32 gallon fuel oil fired hot water heater with approximately 100,000 Btu/hr. The existing
furnace is original to the building and in fair condition. The Toyo stoves are more recent
and are in good condition. The heating system infrastructure is ductwork from the furnace
and the ductwork appears to be in fair condition.
The Trailer (Rental) is a modular wood framed building constructed in 1984. The facility is
approximately 2,000 square feet and is heated by a 76,000 Btu/hr output furnace and a
40,000 Btu/hr Toyo stove. The Toyo stove is the primary source of heat and the furnace
does not run very often. Domestic hot water was not found. The existing furnace is
original to the building and is in fair condition. The Toyo stove is more recent, and is in
good condition.
The Shaan-Seet Hotel is a wood framed building constructed in 1994. The facility is
approximately 6,200 square feet and is heated by a 145,000 Btu/hr output hot water boiler.
Domestic hot water is provided by an 80 gallon indirect water heater using the boiler water
as a heating source. The existing boiler is original to the building and is in good condition.
The heating system infrastructure is original to the building an in good condition.
The Heated Storage Building a wood framed building constructed in 1994. The facility is
approximately 960 square feet and is heated by a 40,000 Btu/hr output Toyo stove. No
domestic hot water is provided. The age of the stove is unknown, but it is in good
condition.
Facilities Dropped from Feasibility Study
No facilities were dropped from the feasibility study.
Facilities Added to Feasibility Study
No facilities were added to the feasibility study.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 4 of 9
July 24, 2012
4.0 Energy Use
Fuel oil bills for the facilities were provided. The following table summarizes the data:
Table 4.1 - Annual Fuel Use Summary
Fuel Avg. Use Current Annual
Facility Name Type (Gallons) Cost/Gal Cost
Shaan Seet
Office Fuel Oil 2,000 $4.10 $8,400
Rental Trailer Fuel Oil 800 $4.10 $3,360
Shaan Seet Hotel Fuel Oil 2250 $4.10 $9,450
Storage Building Fuel Oil 500 $4.10 $2,100
Electrical energy consumption will increase with the installation of the wood fired boiler
system because of the power needed for the biomass boiler components such as augers,
conveyors, draft fans, etc. and the additional pumps needed to integrate into the existing
heating systems. The cash flow analysis accounts for the additional electrical energy
consumption and reduces the annual savings accordingly.
5.0 Biomass Boiler Size
The following table summarized the connected load of fuel oil fired boilers, Toyo stoves
and domestic water heaters:
Table 5.1 - Connected Boiler Load Summary
Likely
Peak System
Output Load Peak
MBH Factor MBH
Shaan Seet Office Furnace Fuel Oil 112 1.00 112
DWH Fuel Oil 75 0.20 15
Total 127
Rental Trailer Toyo Fuel Oil 40 1.00 40
SS Heated Storage Toyo Fuel Oil 40 1.00 40
Shaan Seet Hotel Boiler Fuel Oil 145 1.00 145
Total Of All Buildings 412 352
Typically a wood heating system is sized to meet approximately 85% of the typical annual
heating energy use of the building. The existing heating boilers and furnaces would be
used for the other 15% of the time during peak heating conditions, during times when the
biomass boiler is down for servicing, and during swing months when only a few hours of
heating each day are required. Recent energy models have found that a boiler sized at
50% to 60% of the building peak load will typically accommodate 85% of the boiler run
hours. Several projects are under consideration for Shaan Seet, therefore the boiler size
will vary with each option as noted below.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 5 of 9
July 24, 2012
Table 5.2 - Proposed Biomass Boiler Size
Likely Biomass
System Biomass Boiler
Peak Boiler Size
MBH Factor MBH
Shaan Seet Office (SSO) 127 0.6 76
Shaan Seet House (SSH) 40 0.6 24
Shaan Seet Heated Storage (SSHS) 40 0.6 24
Shaan Seet Hotel (SSH) 145 0.6 87
SSO + SSH 167 0.6 100
SSO + SSH + SSHS 207 0.6 124
SSO + SSH + SSHS + SSH 352 0.6 211
6.0 Wood Fuel Use
The types of wood fuel available in the area include cord wood, and wood pellets. The
estimated amount of wood fuel needed of each wood fuel type for each building was
calculated and is listed below:
Table 6.1 - Annual Wood Fuel Use Summary
Fuel Cord Wood
Oil Wood Pellets
(Gallons) (Cords) (Tons)
Shaan Seet Office (SSO) 2,000 17.5 15.9
Shaan Seet House (SSH) 820 7.2 6.5
Shaan Seet Heated Storage (SSHS) 500 4.4 4.0
Shaan Seet Hotel (SSH) 2,250 19.7 17.9
SSO + SSH 2,820 24.6 22.5
SSO + SSH + SSHS 3,320 29.0 26.5
SSO + SSH + SSHS + SSH 5,570 48.7 44.4
Note: Wood fuel use assumes offsetting 85% of the current energy use.
The amount of wood fuel shown in the table is for offsetting 85% of the total fuel oil use.
The moisture content of the wood fuels and the overall wood burning system efficiencies
were accounted for in these calculations. The existing fuel oil boilers were assumed to be
80% efficient. Cord wood was assumed to be 20% moisture content (MC) with a system
efficiency of 65%. Wood pellets were assumed to be 7% MC with a system efficiency of
70%.
Based on the potential wood fuel use, a cord wood system and a pellet system are the
most viable. The fuel use is too low to generate enough savings to make a
chipped/ground fuel option viable.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 6 of 9
July 24, 2012
There are sawmills and active logging operations in the region. Tongass Forest
Enterprises has stared up a pellet plant in Ketchikan and is providing pellets to Sealaska.
Pellets are also available from plants in British Columbia, Washington, and Oregon. There
appears to be a sufficient available supply to service the boiler plant.
The unit fuel costs for fuel oil and the different fuel types were calculated and equalized to
dollars per million Btu ($/MMBtu) to allow for direct comparison. The Delivered $/MMBtu
is the cost of the fuel based on what is actually delivered to the heating system, which
includes all the inefficiencies of the different systems. The Gross $/MMBtu is the cost of
the fuel based on raw fuel, or the higher heating value and does not account for any
system inefficiencies. The following table summarizes the equalized fuel costs at different
fuel unit costs:
Table 6.2 - Unit Fuel Costs Equalized to $/MMBtu
Net
Gross System System
Delivered Gross
Fuel Type Units Btu/unit Efficiency Btu/unit $/unit $/MMBtu $/MMBtu
Fuel Oil gal 134500 0.8 107600 $4.00 $37.17 $29.74
$4.50 $41.82 $33.46
$5.00 $46.47 $37.17
Cord
Wood cords 16173800 0.65 10512970 $150.00 $14.27 $9.27
$200.00 $19.02 $12.37
$250.00 $23.78 $15.46
Pellets tons 16400000 0.7 11480000 $200.00 $17.42 $12.20
$250.00 $21.78 $15.24
$300.00 $26.13 $18.29
7.0 Boiler Plant Location and Site Access
None of the existing boiler rooms are large enough to fit a new biomass boiler so a new
stand alone boiler plant would be required. The best location for a plant would be just
south of the Shaan Seet office building.
Any type of biomass boiler system will require access by delivery vehicles. For cord wood
systems this would likely be pickup trucks and trucks with trailers. The proposed plant
location would allow for good access since it will be on the road up to the office building,
which is maintained year round.
8.0 Integration with Existing Heating Systems
Integration of a wood fired heating system varies from facility to facility. Integration of a
central heating system in the Shaan Seet Office and Shaan Seet House would require
installing hot water fan coil unit.
Integration of a central heating system in the Heated Storage building would require the
installation of a ceiling hung unit heater.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 7 of 9
July 24, 2012
Integration of a central heating system for the Shaan Seet Hotel would require installing
heating hot water supply and return pipes in the existing boiler room.
The field visit confirmed the location of each boiler room and heating unit location in order
to identify an approximate point of connection from a district heating loop to each existing
building. Piping from the biomass boiler plant would be run below ground with pre-
insulated pipe and extended to the face of each building, and extended up the exterior
surface of the school in order to penetrate exterior wall into the boiler room. Once the hot
water supply and return piping enters the existing boiler room it would be connected to
existing supply and return pipes in appropriate locations in order to utilize existing pumping
systems within each building.
9.0 Air Quality Permits
Resource System Group has done a preliminary review of potential air quality issues in the
area. Southeast Alaska is has meteorological conditions that can create thermal
inversions, which are unfavorable for the dispersion of emissions. The proposed boiler
size at this location is small enough, that the boiler is not likely to require any State or
Federal permits. See the air quality memo in Appendix D.
10.0 Wood Heating Options
The technologies available to produce heating energy from wood based biomass are
varied in their approach, but largely can be separated into three types of heating plants:
cord wood, wood pellet and wood chip/ground wood fueled. See Appendix E for these
summaries.
Based on the estimated volume of wood and the estimated biomass boiler size, a pellet
option and cord wood option will be evaluated. Chipped/ground fuel boilers were not
considered because the potential fuel cost savings would not pay for the high capital cost
of these system types. The options reviewed were:
Pellet Boiler Options:
B.1: Shaan Seet Office and House
B.2: Shaan Seet Office, House, and Heated Storage
B.3: Shaan Seet Office, House, Heated Storage, and Hotel
Cord Wood Boiler Option:
C.1: Shaan Seet Office and House
11.0 Estimated Costs
The total project costs are at a preliminary design level and are based on RS Means and
recent biomass project bid data. The estimates are shown in the appendix. These costs
are conservative and if a deeper level feasibility analysis is undertaken and/or further
design occurs, the costs may be able to be reduced.
12.0 Economic Analysis Assumptions
The cash flow analysis assumes fuel oil at $4.20/gal, electricity at $0.27/kwh, wood pellets
delivered at $300/ton, and cord wood fuel delivered at $200/cord. The fuel oil, electricity,
and cord wood costs are based on the costs reported by the facility. Pellet costs were
obtained from Tongass Forest Enterprises.
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 8 of 9
July 24, 2012
It is assumed that the wood boiler would supplant 85% of the estimated heating use, and
the existing heating systems would heat the remaining 15%. Each option assumes the
total project can be funded with grants and non obligated capital money. The following
inflation rates were used: O&M - 2%, Fossil Fuel – 5%, Wood Fuel – 3%, Discount Rate
for NPV calculation – 3%. The fossil fuel inflation rate is based on the DOE EIA website.
DOE is projecting a slight plateau with a long term inflation of approximately 5%. As a
point of comparison, oil prices have increased at an annual rate of over 8% since 2001.
The analysis also accounts for additional electrical energy required for the wood fired
boiler system as well as the system pumps to distribute heating hot water to the buildings.
Wood fired boiler systems also will require more maintenance, and these additional
maintenance costs are also factored into the analysis.
13.0 Results of Evaluation
The following table summarizes the economic evaluation for each option:
Table 13.1 - Economic Evaluation Summary
Shaan Seet Biomass Heating System
Year 1 NPV NPV
20
Yr
30
Yr
Project Operating 30 yr 20 yr B/C B/C ACF ACF YR
Cost Savings at 3% at 3% Ratio Ratio YR 20 YR 30 ACF=PC
B.1 $745,000 -$4,122 $28,454 -$9,009 -0.01 0.04 -$4,943 $76,568 >30
B.2 $884,000 -$3,626 $60,561 $7,816 0.01 0.07 $19,429 $133,811 >30
B.3 $1,100,000 -$1,241 $209,568 $86,541 0.08 0.19 $133,277 $398,792 >30
C.1 $350,000 -$4,786 $33,107 -$11,094 -0.03 0.09 -$6,335 $89,794 >30
The benefit to cost ratio (B/C) takes the net present value (NPV) of the net energy savings and
divides it by the construction cost of the project. A B/C ratio greater than or equal to 1.0
indicates an economically advantageous project.
Accumulated cash flow (ACF) is another evaluation measure that is calculated in this report and
is similar to simple payback with the exception that accumulated cash flow takes the cost of
financing and fuel escalation into account. For many building owners, having the accumulated
cash flow equal the project cost within 15 years is considered necessary for implementation. If
the accumulated cash flow equals project cost in 20 years or more, that indicates a challenged
project. Positive accumulated cash flow should also be considered an avoided cost as opposed
to a pure savings.
14.0 Project Funding
The Shaan Seet, Inc. may pursue a biomass project grant from the Alaska Energy Authority.
The Shaan Seet, Inc. could also enter into a performance contract for the project. Companies
such as Siemens, McKinstry, Johnson Controls and Chevron have expressed an interest in
participating in funding projects of all sizes throughout Alaska. This allows the facility owner to
pay for the project entirely from the guaranteed energy savings, and to minimize the project
funds required to initiate the project. The scope of the project may be expanded to include
Pre-Feasibility Assessment for Shaan Seet, Inc.
Integration of Wood-Fired Heating Systems Craig, Alaska
CTA Architects Engineers Page 9 of 9
July 24, 2012
additional energy conservation measures such as roof and wall insulation and upgrading
mechanical systems.
15.0 Summary
The Shaan Seet buildings appear to be a poor candidate for the use of a wood biomass heating
system. With the current economic assumptions, the economic viability of all the options is poor
and none of the options meet the minimum requirement of the 20 year B/C ratio exceeding 1.0.
Each building individually does not spend enough on heating fuel to be able to pay for a project
through potential savings. Combining multiple buildings increases the project costs without
substantially increasing the annual fossil fuel use.
16.0 Recommended Actions
If pellets or bio bricks begin are available for $300/ton or less, consider replacing the Toyo
stoves with pellet stoves. The electric generation plant for the area is located next to the Shaan
Seet hotel. Investigate if APT would be willing to sell heat from the generators to heat the hotel.
APPENDIX A
Preliminary Estimates of Probable Cost
Preliminary Estimates of Probable Cost
Biomass Heating Options - Shaan Seet, Inc.
Craig, AK
Option B.1 Pellet - SSO + SSH
Biomass Boiler Building:$90,000
Wood Heating, Wood Handling System, & Silo: $110,000
Stack/Air Pollution Control Device:$50,000
Mechanical/Electrical within Boiler Building: $75,000
Underground Piping $73,000
Shaan-Seet Office Integration $24,250
Shaan-Seet House Inegration $11,500
Subtotal:$433,750
30% Remote Factor $130,125
Subtotal:$563,875
Design Fees, Building Permit, Miscellaneous Expenses 15%: $84,581
Subtotal:$648,456
15% Contingency:$97,268
Total Project Costs 745,725$
Option B.2 Pellet - SSO + SSH + HS
Biomass Boiler Building:$90,000
Wood Heating, Wood Handling System, & Silo: $110,000
Stack/Air Pollution Control Device:$50,000
Mechanical/Electrical within Boiler Building: $75,000
Underground Piping $140,000
Shaan-Seet Office Integration $24,250
Shaan-Seet House Inegration $11,500
Shaan-Seet Heated Storage Integration $13,750
Subtotal:$514,500
30% Remote Factor $154,350
Subtotal:$668,850
Design Fees, Building Permit, Miscellaneous Expenses 15%: $100,328
Subtotal:$769,178
15% Contingency:$115,377
Total Project Costs 884,554$
Preliminary Estimates of Probable Cost
Biomass Heating Options - Shaan Seet, Inc.
Craig, AK
Option B.3 Pellet - SSO + SSH + HS + SS Hotel
Biomass Boiler Building:$90,000
Wood Heating, Wood Handling System, & Silo: $110,000
Stack/Air Pollution Control Device:$50,000
Mechanical/Electrical within Boiler Building: $75,000
Underground Piping $250,000
Shaan-Seet Office Integration $24,250
Shaan-Seet House Inegration $11,500
Shaan-Seet Heated Storage Integration $13,750
Shaan-Seet Hotel Integration $23,000
Subtotal:$647,500
30% Remote Factor $194,250
Subtotal:$841,750
Design Fees, Building Permit, Miscellaneous Expenses 15%: $126,263
Subtotal:$968,013
15% Contingency:$145,202
Total Project Costs 1,113,214$
Option C.1 Cord Wood - SSO + SSH
Cord Wood Storage/ Boiler Building: $55,000
Wood Heating & Wood Handling System: $24,000
Stack/Air Pollution Control Device:$6,700
Mechanical/Electrical within Boiler Building: $12,000
Underground Piping $73,000
Shaan-Seet Office Integration $24,250
Shaan-Seet House Inegration $11,500
Subtotal:$206,450
30% Remote Factor $61,935
Subtotal:$268,385
Design Fees, Building Permit, Miscellaneous Expenses 15%: $40,258
Subtotal:$308,643
15% Contingency:$46,296
Total Project Costs 354,939$
APPENDIX B
Cash Flow Analysis
Shaan Seet Office and Mobile Home Option B.1Craig, AlaskaWood Pellet Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSOffice Mobile HomeTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$4.20 $4.20 $4.20 $4.20 Estimated Average Annual Fuel Usage:2,000 8002,800Annual Heating Costs:$8,400 $3,360 $0 $0 $11,760ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):269,000,000 107,600,000 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):215,200,000 86,080,000 0 0 301,280,000WOOD FUEL COSTWood Pellets$/ton: $300.00Assumed efficiency of wood heating system (%): 70% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 7% MC 8200 Tons of wood fuel to supplant net equivalent of 100% annual heating load.26Tons of wood fuel to supplant net equivalent of 85% annual heating load.2225 ton chip van loads to supplant net equivalent of 85% annual heating load.1 Project Capital Cost-$745,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 15650 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.270 /kWh Biomass System 2.0 40 80 $20.00 $1,600Amount of Grants$745,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 -180.8 years Net Benefit B/C Ratio$28,454 -$716,546 0.04-$9,009 -$754,009-0.01Year Accumulated Cash Flow > 022Year Accumulated Cash Flow > Project Capital Cost31Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $4.20 2000 gal $8,400 $8,820 $9,261 $9,724 $10,210 $10,721 $11,257 $11,820 $12,411 $13,031 $13,683 $14,367 $15,085 $15,839 $16,631 $21,226 $27,091 $34,576Displaced heating costs $4.20 800 gal $3,360 $3,528 $3,704 $3,890 $4,084 $4,288 $4,503 $4,728 $4,964 $5,212 $5,473 $5,747 $6,034 $6,336 $6,653 $8,491 $10,836 $13,830Displaced heating costs $4.200 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $4.200 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$300.00 85% 22 tons $6,692 $6,893 $7,100 $7,313 $7,532 $7,758 $7,991 $8,231 $8,477 $8,732 $8,994 $9,264 $9,541 $9,828 $10,123 $11,735 $13,604 $15,771Small load existing fuel$4.20 15% 300 gal $1,260 $1,323 $1,389 $1,459 $1,532 $1,608 $1,689 $1,773 $1,862 $1,955 $2,052 $2,155 $2,263 $2,376 $2,495 $3,184 $4,064 $5,186Small load existing fuel$4.20 15% 120 gal $504 $529 $556 $583 $613 $643 $675 $709 $745 $782 $821 $862 $905 $950 $998 $1,274 $1,625 $2,075Small load existing fuel$4.20 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$4.20 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 $1,838 $1,875 $1,912 $1,950 $1,989 $2,029 $2,070 $2,111 $2,331 $2,573$2,841Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.270$4,226 $4,352 $4,483 $4,617 $4,756 $4,899 $5,045 $5,197 $5,353 $5,513 $5,679 $5,849 $6,025 $6,205 $6,391 $7,409 $8,590$9,958Annual Operating Cost Savings-$4,122-$4,013-$2,227-$2,056-$1,870-$1,665-$1,443-$1,200-$936-$650-$340-$5$356$746$1,166$3,784$7,471$12,575Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow(4,122) (4,013) (2,227) (2,056) (1,870) (1,665) (1,443) (1,200) (936) (650) (340) (5)356 746 1,166 3,784 7,471 12,575Accumulated Cash Flow(4,122) (8,135) (10,362) (12,418) (14,288) (15,953) (17,396) (18,596) (19,532) (20,182) (20,523) (20,528) (20,172)(19,426) (18,259) (4,943)24,548 76,568Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis):
Shaan Seet Office, Mobile Home, and Heated Storage Option B.2Craig, AlaskaWood Pellet Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSOffice Mobile Home Heated Storage TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$4.20 $4.20 $4.20 $4.20 Estimated Average Annual Fuel Usage:2,000 800 5003,300Annual Heating Costs:$8,400 $3,360 $2,100 $0 $13,860ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):269,000,000 107,600,000 67,250,000 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):215,200,000 86,080,000 53,800,000 0 355,080,000WOOD FUEL COSTWood Pellets$/ton: $300.00Assumed efficiency of wood heating system (%): 70% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 7% MC 8200 Tons of wood fuel to supplant net equivalent of 100% annual heating load.31Tons of wood fuel to supplant net equivalent of 85% annual heating load.2625 ton chip van loads to supplant net equivalent of 85% annual heating load.1 Project Capital Cost-$884,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 16000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.270 /kWh Biomass System 2.0 40 80 $20.00 $1,600Amount of Grants$884,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 -243.8 years Net Benefit B/C Ratio$60,561 -$823,439 0.07$7,816 -$876,1840.01Year Accumulated Cash Flow > 017Year Accumulated Cash Flow > Project Capital Cost31Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $4.20 2000 gal $8,400 $8,820 $9,261 $9,724 $10,210 $10,721 $11,257 $11,820 $12,411 $13,031 $13,683 $14,367 $15,085 $15,839 $16,631 $21,226 $27,091 $34,576Displaced heating costs $4.20 800 gal $3,360 $3,528 $3,704 $3,890 $4,084 $4,288 $4,503 $4,728 $4,964 $5,212 $5,473 $5,747 $6,034 $6,336 $6,653 $8,491 $10,836 $13,830Displaced heating costs $4.20 500 gal $2,100 $2,205 $2,315 $2,431 $2,553 $2,680 $2,814 $2,955 $3,103 $3,258 $3,421 $3,592 $3,771 $3,960 $4,158 $5,307 $6,773 $8,644Displaced heating costs $4.200 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$300.00 85% 26 tons $7,887 $8,124 $8,368 $8,619 $8,877 $9,143 $9,418 $9,700 $9,991 $10,291 $10,600 $10,918 $11,245 $11,583 $11,930 $13,830 $16,033 $18,587Small load existing fuel$4.20 15% 300 gal $1,260 $1,323 $1,389 $1,459 $1,532 $1,608 $1,689 $1,773 $1,862 $1,955 $2,052 $2,155 $2,263 $2,376 $2,495 $3,184 $4,064 $5,186Small load existing fuel$4.20 15% 120 gal $504 $529 $556 $583 $613 $643 $675 $709 $745 $782 $821 $862 $905 $950 $998 $1,274 $1,625 $2,075Small load existing fuel$4.20 15% 75 gal $315 $331 $347 $365 $383 $402 $422 $443 $465 $489 $513 $539 $566 $594 $624 $796 $1,016 $1,297Small load existing fuel$4.20 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 $1,838 $1,875 $1,912 $1,950 $1,989 $2,029 $2,070 $2,111 $2,331 $2,573$2,841Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.270$4,320 $4,450 $4,583 $4,721 $4,862 $5,008 $5,158 $5,313 $5,472 $5,637 $5,806 $5,980 $6,159 $6,344 $6,534 $7,575 $8,782$10,180Annual Operating Cost Savings-$3,626-$3,467-$1,627-$1,399-$1,151-$882-$590-$274$67$436$834$1,262$1,723$2,218$2,750$6,034$10,607$16,884Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow(3,626) (3,467) (1,627) (1,399) (1,151) (882) (590) (274)67 436 834 1,262 1,723 2,218 2,750 6,034 10,607 16,884Accumulated Cash Flow(3,626) (7,094) (8,720) (10,119) (11,271) (12,153) (12,743) (13,017) (12,950) (12,514) (11,679) (10,417) (8,694) (6,476) (3,726)19,429 62,726 133,811Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis):
Shaan Seet Office, Mobile Home, Heated Storage, and Hotel Option B.3Craig, AlaskaWood Pellet Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSOffice Mobile Home Heated Storage Hotel TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$4.20 $4.20 $4.20 $4.20 Estimated Average Annual Fuel Usage:2,000 800 500 2,250 5,550Annual Heating Costs:$8,400 $3,360 $2,100 $9,450 $23,310ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):269,000,000 107,600,000 67,250,000 302,625,000Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):215,200,000 86,080,000 53,800,000 242,100,000 597,180,000WOOD FUEL COSTWood Pellets$/ton: $300.00Assumed efficiency of wood heating system (%): 70% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 7% MC 8200 Tons of wood fuel to supplant net equivalent of 100% annual heating load.52Tons of wood fuel to supplant net equivalent of 85% annual heating load.4425 ton chip van loads to supplant net equivalent of 85% annual heating load.2 Project Capital Cost-$1,100,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 17000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.270 /kWh Biomass System 2.0 40 80 $20.00 $1,600Amount of Grants$1,100,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 -886.1 years Net Benefit B/C Ratio$209,568 -$890,432 0.19$86,541 -$1,013,4590.08Year Accumulated Cash Flow > 04Year Accumulated Cash Flow > Project Capital Cost31Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $4.20 2000 gal $8,400 $8,820 $9,261 $9,724 $10,210 $10,721 $11,257 $11,820 $12,411 $13,031 $13,683 $14,367 $15,085 $15,839 $16,631 $21,226 $27,091 $34,576Displaced heating costs $4.20 800 gal $3,360 $3,528 $3,704 $3,890 $4,084 $4,288 $4,503 $4,728 $4,964 $5,212 $5,473 $5,747 $6,034 $6,336 $6,653 $8,491 $10,836 $13,830Displaced heating costs $4.20 500 gal $2,100 $2,205 $2,315 $2,431 $2,553 $2,680 $2,814 $2,955 $3,103 $3,258 $3,421 $3,592 $3,771 $3,960 $4,158 $5,307 $6,773 $8,644Displaced heating costs $4.20 2250 gal $9,450 $9,923 $10,419 $10,940 $11,487 $12,061 $12,664 $13,297 $13,962 $14,660 $15,393 $16,163 $16,971 $17,819 $18,710 $23,880 $30,477 $38,897Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$300.00 85% 44 tons $13,265 $13,663 $14,073 $14,495 $14,930$15,378 $15,839 $16,314 $16,804 $17,308 $17,827 $18,362 $18,913 $19,480 $20,064 $23,260 $26,965 $31,260Small load existing fuel$4.20 15% 300 gal $1,260 $1,323 $1,389 $1,459 $1,532 $1,608 $1,689 $1,773 $1,862 $1,955 $2,052 $2,155 $2,263 $2,376 $2,495 $3,184 $4,064 $5,186Small load existing fuel$4.20 15% 120 gal $504 $529 $556 $583 $613 $643 $675 $709 $745 $782 $821 $862 $905 $950 $998 $1,274 $1,625 $2,075Small load existing fuel$4.20 15% 75 gal $315 $331 $347 $365 $383 $402 $422 $443 $465 $489 $513 $539 $566 $594 $624 $796 $1,016 $1,297Small load existing fuel$4.20 15% 338 gal $1,418 $1,488 $1,563 $1,641 $1,723 $1,809 $1,900 $1,995 $2,094 $2,199 $2,309 $2,424 $2,546 $2,673 $2,807 $3,582 $4,572 $5,835Additional Operation and Maintenance Costs$1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 $1,838 $1,875 $1,912 $1,950 $1,989 $2,029 $2,070 $2,111 $2,331 $2,573$2,841Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.270$4,590 $4,728 $4,870 $5,016 $5,166 $5,321 $5,481 $5,645 $5,814 $5,989 $6,169 $6,354 $6,544 $6,741 $6,943 $8,049 $9,331$10,817Annual Operating Cost Savings-$1,241-$850$1,237$1,728$2,256$2,822$3,430$4,082$4,781$5,529$6,328$7,183$8,096$9,071$10,111$16,428$25,032$36,637Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow(1,241) (850)1,237 1,728 2,256 2,822 3,430 4,082 4,781 5,529 6,328 7,183 8,096 9,071 10,111 16,428 25,032 36,637Accumulated Cash Flow(1,241) (2,092) (854)874 3,130 5,952 9,382 13,465 18,246 23,774 30,102 37,286 45,382 54,453 64,564 133,277 240,184 398,792Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis):
Shaan Seet Office and Mobile Home Option C.1Craig, AlaskaCord Wood Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSOffice Mobile HomeTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$4.20 $4.20 $3.60 $3.60 Estimated Average Annual Fuel Usage:2,000 8002,800Annual Heating Costs:$8,400 $3,360 $0 $0 $11,760ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):269,000,000 107,600,000 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):215,200,000 86,080,000 0 0 301,280,000WOOD FUEL COSTCord Wood$/cord: $200.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/cord) - Assumed 20% MC, 6,700 Btu/lb x 28.4 lb/cf x 85 cf16,173,800 Cords of wood fuel to supplant net equivalent of 100% annual heating load.29Cords of wood fuel to supplant net equivalent of 85% annual heating load.2425 ton chip van loads to supplant net equivalent of 85% annual heating load.N/A Project Capital Cost-$350,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 1150 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.270 /kWh Biomass System 10.0 40 400 $20.00 $8,000Amount of Grants$350,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 -73.1 years Net Benefit B/C Ratio$33,107 -$316,893 0.09-$11,094 -$361,094-0.03Year Accumulated Cash Flow > 022Year Accumulated Cash Flow > Project Capital Cost31Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $4.20 2000 gal $8,400 $8,820 $9,261 $9,724 $10,210 $10,721 $11,257 $11,820 $12,411 $13,031 $13,683 $14,367 $15,085 $15,839 $16,631 $21,226 $27,091 $34,576Displaced heating costs $4.20 800 gal $3,360 $3,528 $3,704 $3,890 $4,084 $4,288 $4,503 $4,728 $4,964 $5,212 $5,473 $5,747 $6,034 $6,336 $6,653 $8,491 $10,836 $13,830Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$200.00 85% 24 cords $4,872 $5,018 $5,169 $5,324 $5,483 $5,648 $5,817 $5,992 $6,172 $6,357 $6,547 $6,744 $6,946 $7,154 $7,369 $8,543 $9,903 $11,481Small load existing fuel$4.20 15% 300 gal $1,260 $1,323 $1,389 $1,459 $1,532 $1,608 $1,689 $1,773 $1,862 $1,955 $2,052 $2,155 $2,263 $2,376 $2,495 $3,184 $4,064 $5,186Small load existing fuel$4.20 15% 120 gal $504 $529 $556 $583 $613 $643 $675 $709 $745 $782 $821 $862 $905 $950 $998 $1,274 $1,625 $2,075Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $11,654 $12,867 $14,207Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.270$311 $320 $329 $339 $349 $360 $371 $382 $393 $405 $417 $430 $443 $456 $470 $544 $631 $732Annual Operating Cost Savings-$4,786-$4,634-$2,801-$2,581-$2,342-$2,083-$1,802-$1,498-$1,169-$815-$434-$24$417$890$1,397$4,518$8,836$14,726Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow(4,786) (4,634) (2,801) (2,581) (2,342) (2,083) (1,802) (1,498) (1,169) (815) (434) (24)417 890 1,397 4,518 8,836 14,726Accumulated Cash Flow(4,786) (9,420) (12,221) (14,802) (17,144) (19,227) (21,028) (22,526) (23,696) (24,511) (24,945) (24,969) (24,553)(23,663) (22,266) (6,335)28,661 89,794Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis):
APPENDIX C
Site Plan
SHAAN-SEETBOILER PLANTSHAAN-SEETOFFICETRAILERRESIDENCEHEATEDSTORAGESHAAN-SEET HOTEL25'-0"225'-0"50'-0"150'-0"175'-0"75'-0"50'-0"25'-0"12'-0"50'-0"62'-0"31'-0"125'-0"25'-0"50'-0"75'-0"150'-0"25'-0"50'-0"25'-0"140'-0"60'-0"50'-0"25'-0"MISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE-FEASIBILITY ASSESSMENTCRAIG, ALASKACITY OF CRAIG & SHAAN-SEET BOILER PLANTSSSFNHR07/24/2012FEDCJ:SHAAN-SEET200'100'50'0SCALE: 1:100NORTHREF.LEGENDPIPE ROUTINGBOILER ROOMFIRE HALLCITY HALLLIBRARYOLDCLINICPOWERPOLICE DEPT.CITY GYMCHILDCARE CENTERCITY OF CRAIGBOILER PLANTSITE PLANYOUTHCENTERALTERNATE BOILERPLANT
APPENDIX D
Air Quality Report
55 Railroad Row White River Junction, Vermont 05001
TEL 802.295.4999 FAX 802.295.1006 www.rsginc.com
INTRODUCTION
At your request, RSG has conducted an air quality feasibility study for seven biomass energy
installations in Ketchikan and Craig, Alaska. These sites are located in the panhandle of Alaska.
The following equipment is proposed:
Ketchikan
o One 4,700,000 Btu/hr (heat output) pellet boiler at the Ketchikan High School.
o One 800,000 Btu/hr (heat output) pellet boiler at the Ketchikan Indian Council
Medical Facility.
o One 150,000 Btu/hr (heat output) pellet boiler at the Ketchikan Indian Council
Votec School.
o One 200,000 Btu/hr (heat output) pellet boiler at the old Ketchikan Indian
Council Administration Building.
Craig
o One 450,000 Btu/hr (heat output) cord wood boiler at the Craig Tribal
Association Building.
o One 450,000 Btu/hr (heat output) cord wood boiler near the Fire Hall.
o One 250,000 Btu/hr (heat output) cord wood boiler at the Shaan‐Seet Office.
To: Nick Salmon
From: John Hinckley
Subject: Ketchikan‐Craig Cluster Feasibility Study
Date: 24 July 2012
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 2
A USGS map of the Ketchikan study area is provided in Figure 1 below. As shown, the area is
mountainous, with Ketchikan located on the southwest side of a mountain range. Ketchikan has
a population of 14,070. The area is relatively fairly well populated and developed relative to
other areas in Alaska. The area is also a port for cruise ships, which are significant sources of air
pollution. The topography, population, level of development, and existing emission sources has
the potential to create localized, temporary problematic air quality.
Figure 1: USGS Map Illustrating the Ketchikan Study Area
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 3
Figure 2 shows CTA Architects’ plan of the location of the proposed biomass facility at the
Ketchikan High School. The site slopes moderately to steeply downward in the southeasterly
direction with the grade becoming very steep to the northeast of the High School building. The
school building is between two to three stories high. The biomass facility will be located in a
stand‐alone building on the north side of the school building, which is the high side of the
building. There are residential areas west, north, and east of the proposed biomass facility
which are uphill (above) the facility. The precise dimensions of that building, the stack location
and dimensions, and the biomass equipment specifications have not been determined. The
degree of separation of the biomass building from the other buildings will create a buffer for
emissions dispersion.
Figure 2: Site Map of the Ketchikan High School Project
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 4
Figure 3 shows CTA Architects’ plan of the location of the proposed biomass facility at the
Ketchikan Indian Council Medical Facility. The site slopes moderately to steeply downward in
the southeasterly direction. As a result, there are buildings above and below the site. The
biomass facility will be located in a stand‐alone building on the northeast (uphill) side of the
school building. The precise dimensions of that building, the stack location and dimensions, and
the biomass equipment specifications have not been determined. The degree of separation of
the biomass building from the other buildings will create a small buffer for emissions
dispersion.
Figure 3: Site Map of the Ketchikan Indian Council Medical Facility
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 5
Figure 4 shows CTA Architects’ plan of the location of the Ketchikan Indian Council Votec School
(marked Stedman) and Ketchikan Indian Council Admin Building (marked Deermount). The
sites slope moderately to steeply downward in the southeasterly direction. As a result, there are
buildings above and below the sites. The precise dimensions of that building, the stack location
and dimensions, and the biomass equipment specifications have not been determined.
Figure 4: Site Map of Ketchikan Indian Council Votec School (Stedman) and the Admin
Building (Deermount)
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 6
A USGS map is provided below in Figure 5. As shown, Craig Island is relatively flat with
mountainous terrain to the west, and water in all other directions. The area is relatively
sparsely populated. The population of Craig is 1,397. Our review of the area did not reveal any
significant emission sources or ambient air quality issues.
Figure 5: USGS Map Illustrating the Craig Study Area
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 7
Figure 6 shows CTA Architects’ plan of the location of the proposed biomass facility and the
surrounding buildings. The site is relatively flat and moderately populated with one and two
story high buildings. The boiler plant is located in a stand‐alone building to the west of the
Tribal Association Building and east of another building. The stack should be designed to
provide plume rise above both of these buildings. The precise dimensions of that building, the
stack location and dimensions, and the biomass equipment specifications have not been
determined.
Figure 6: Site Map of the Craig Tribal Association Building
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 8
Figure 7 shows CTA Architects’ plan of the proposed Shaan‐Seet biomass facility and the
surrounding buildings. The site is relatively flat and moderately populated with one and two
story high buildings. The boiler plant is located in a stand‐alone building. The precise
dimensions of that building, the stack location and dimensions, and the biomass equipment
specifications have not been determined.
Figure 7: Site Map of Shaan‐Seet Boiler Plant Site
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 9
METEOROLOGY
Meteorological data from Annette, AK, was reviewed to develop an understanding of the
weather conditions. Annette is the closest weather data representing the climactic conditions
occurring in the Panhandle and is therefore a good proxy of Ketchikan and Craig weather
conditions. This data indicates calm winds occur only 10% of the year when, which suggests
there will be minimal time periods when thermal inversions and therefore poor emission
dispersion conditions can occur.1
Figure 8: Wind Speed Data from Annette, AK
1 See: http://climate.gi.alaska.edu/Climate/Wind/Speed/Annette/ANN.html
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 10
DESIGN & OPERATION RECOMMENDATIONS
The following are suggested for designing this project:
Burn natural wood, whose characteristics (moisture content, bark content, species,
geometry) results in optimal combustion in the equipment selected for the project.
Do not install a rain cap above the stack. Rain caps obstruct vertical airflow and reduce
dispersion of emissions.
Construct the stack to at least 1.5 times the height of the tallest roofline of the adjacent
building. Hence, a 20 foot roofline would result in a minimum 30 foot stack. Attention
should be given to constructing stacks higher than 1.5 times the tallest roofline
given higher elevations of surrounding residences due to the moderate to steep
slopes present.
Operate and maintain the boiler according to manufacturer’s recommendations.
Perform a tune‐up at least every other year as per manufacturer’s recommendations
and EPA guidance (see below for more discussion of EPA requirements)
Conduct regular observations of stack emissions. If emissions are not characteristic of
good boiler operation, make corrective actions.
For the Ketchikan High School: install at minimum a multicyclone to filter particulate
matter emissions.
These design and operation recommendations are based on the assumption that state‐of‐the‐
art combustion equipment is installed.
STATE AND FEDERAL PERMIT REQUIREMENTS
This project will not require an air pollution control permit from the Alaska Department of
Environmental Quality given the boilers’ relatively small size and corresponding quantity of
emissions. However, this project will be subject to new proposed requirements in the federal
“Area Source Rule” (40 CFR 63 JJJJJJ). A federal permit is not needed. However, there are various
record keeping, reporting and operation and maintenance requirements which must be
performed to demonstrate compliance with the requirements in the Area Source Rule. The
proposed changes have not been finalized. Until that time, the following requirements are
applicable:
Submit initial notification form to EPA within 120 days of startup.
Complete biennial tune ups per EPA method.
Submit tune‐up forms to EPA.
Please note the following:
Oil and coal fired boilers are also subject to this rule.
Ketchikan‐Craig Air Quality Feasibility Study Resource Systems Group, Inc.
24 July 2012 page 11
Gas fired boilers are not subject to this rule.
More requirements are applicable to boilers equal to or greater than 10 MMBtu/hr heat
input. These requirements typically warrant advanced emission controls, such as a
baghouse or an electrostatic precipitator (ESP).
The compliance guidance documents and compliance forms can be obtained on the following
EPA web page: http://www.epa.gov/boilercompliance/
SUMMARY
RSG has completed an air quality feasibility study for Ketchikan and Craig, Alaska. These boilers
are not subject to state permitting requirements, but are subject to federal requirements.
Design criteria have been suggested to minimize emissions and maximize dispersion.
The following conditions suggest advanced emission control devices (ESP, baghouse) are not
mandatory in Ketchikan and Craig:
1. The wood boilers will be relatively small emission sources.
2. Most of the wood boilers will be located in a separate building which will create a
dispersion buffer between the boiler stack and the building.
3. There are no applicable federal or state emission limits.
4. Meteorological conditions are favorable for dispersion.
The following conditions suggest additional attention should be given to controlling emissions
in Ketchikan:
1. Presence of other emission sources.
2. Relatively high population density.
3. The sensitive populations housed by all Ketchikan buildings.
While not mandatory, we recommend exploring the possibility of a cyclone or multi‐cyclone
technology for control of fly ash and larger particulate emissions for all the aforementioned
boilers. We also recommend developing a compliance plan for the aforementioned federal
requirements.
Given its size and sensitive population served, air dispersion modeling can be performed for the
Ketchikan High School site to determine the stack height and degree of emission control
(multicyclone vs ESP).
Please contact me if you have any comments or questions.
APPENDIX E
Wood Fired Heating Technologies
WOOD FIRED HEATING TECHNOLOGIES
CTA has developed wood-fired heating system projects using cord wood, wood pellet
and wood chips as the primary feedstock. A summary of each system type with the
benefits and disadvantages is noted below.
Cord Wood
Cord wood systems are hand-stoked wood boilers with a limited heat output of 150,000-
200,000 British Thermal Units per hour (Btu/hour). Cord wood systems are typically
linked to a thermal storage tank in order to optimize the efficiency of the system and
reduce the frequency of stoking. Cord wood boiler systems are also typically linked to
existing heat distribution systems via a heat exchanger. Product data from Garn, HS
Tarm and KOB identify outputs of 150,000-196,000 Btu/hr based upon burning eastern
hardwoods and stoking the boiler on an hourly basis. The cost and practicality of stoking
a wood boiler on an hourly basis has led most operators of cord wood systems to
integrate an adjacent thermal storage tank, acting similar to a battery, storing heat for
later use. The thermal storage tank allows the wood boiler to be stoked to a high fire
mode 3 times per day while storing heat for distribution between stoking. Cord wood
boilers require each piece of wood to be hand fed into the firebox, hand raking of the
grates and hand removal of ash. Ash is typically cooled in a barrel before being stock
piled and later broadcast as fertilizer.
Cordwood boilers are manufactured by a number of European manufacturers and an
American manufacturer with low emissions. These manufacturers currently do not
fabricate equipment with ASME (American Society of Mechanical Engineers)
certifications. When these non ASME boilers are installed in the United States,
atmospheric boilers rather than pressurized boilers are utilized. Atmospheric boilers
require more frequent maintenance of the boiler chemicals.
Emissions from cord wood systems are typically as follows:
PM2.5 >0.08 lb/MMbtu
NOx 0.23 lb/MMbtu
SO2 0.025 lb/MMbtu
CO2 195 lb/MMbtu
Benefits:
Small size
Lower cost
Local wood resource
Simple to operate
Disadvantages:
Hand fed - a large labor commitment
Typically atmospheric boilers (not ASME rated)
Thermal Storage is required
Page 1
Wood Pellet
Wood pellet systems can be hand fed from 40 pound bags, hand shoveled from 2,500
pound sacks of wood pellets, or automatically fed from an adjacent agricultural silo with
a capacity of 30-40 tons. Pellet boilers systems are typically linked to existing heat
distribution systems via a heat exchanger. Product data from KOB, Forest Energy and
Solagen identify outputs of 200,000-5,000,000 Btu/hr based upon burning pellets made
from waste products from the western timber industry. A number of pellet fuel
manufacturers produce all tree pellets utilizing bark and needles. All tree pellets have
significantly higher ash content, resulting in more frequent ash removal. Wood pellet
boilers typically require hand raking of the grates and hand removal of ash 2-3 times a
week. Automatic ash removal can be integrated into pellet boiler systems. Ash is
typically cooled in a barrel before being stock piled and later broadcast as fertilizer.
Pellet storage is very economical. Agricultural bin storage exterior to the building is
inexpensive and quick to install. Material conveyance is also borrowed from agricultural
technology. Flexible conveyors allow the storage to be located 20 feet or more from the
boiler with a single auger.
Emissions from wood pellet systems are typically as follows:
PM2.5 >0.09 lb/MMbtu
NOx 0.22 lb/MMbtu
SO2 0.025 lb/MMbtu
CO2 220 lb/MMbtu
Benefits:
Smaller size (relative to a chip system)
Consistent fuel and easy economical storage of fuel
Automated
Disadvantages:
Higher system cost
Higher cost wood fuel ($/MMBtu)
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Wood Chip
Chip systems utilize wood fuel that is either chipped or ground into a consistent size of
2-4 inches long and 1-2 inches wide. Chipped and ground material includes fine
sawdust and other debris. The quality of the fuel varies based upon how the wood is
processed between the forest and the facility. Trees which are harvested in a manner
that minimizes contact with the ground and run through a chipper or grinder directly into
a clean chip van are less likely to be contaminated with rocks, dirt and other debris. The
quality of the wood fuel will also be impacted by the types of screens placed on the
chipper or grinder. Fuel can be screened to reduce the quantity of fines which typically
become airborne during combustion and represent lost heat and increased particulate
emissions.
Chipped fuel is fed from the chip van into a metering bin, or loaded into a bunker with a
capacity of 60 tons or more. Wood chip boilers systems are typically linked to existing
heat distribution systems via a heat exchanger. Product data from Hurst, Messersmith
and Biomass Combustion Systems identify outputs of 1,000,000 - 50,000,000 Btu/hr
based upon burning western wood fuels. Wood chip boilers typically require hand raking
of the grates and hand removal of ash daily. Automatic ash removal can be integrated
into wood chip boiler systems. Ash is typically cooled in a barrel before being stock piled
and later broadcast as fertilizer.
Emissions from wood chip systems are typically as follows:
PM2.5 0.21 lb/MMbtu
NOx 0.22 lb/MMbtu
SO2 0.025 lb/MMbtu
CO2 195 lb/MMbtu
Benefits:
Lowest fuel cost of three options ($/MMBtu)
Automated
Can use local wood resources
Disadvantages:
Highest initial cost of three types
Larger fuel storage required
Less consistent fuel can cause operational and performance issues