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HomeMy WebLinkAboutHaines Central Wood Heating Construction Case_Study 02-01-2016-WOODHaines, Alaska Pellet boiler system heats low-income community housing Quick Facts Total Project Costs: $225,120 Funding: Renewable Energy Grant Fund: $188,620 Local Funds: $36,500 Capital Costs Design: $18,400 Construction: $206,720 Equipment Boiler Make/Model: (2) Pellergy PB 3550 Output: Up to 170,000 btu/hr Fuel Oil Offset Annual savings: 2,666 gallons Comprehensive savings: 8,000 gallons (Oct. 2011-Dec. 2014) Fuel Savings Annual savings: $5,666 Comprehensive savings: $17,000 (Oct. 2011-Dec. 2014) Haines Central Wood Heating Construction Project Overview In partnership with the Alaska Energy Authority (AEA), the Chilkoot Indian Association (Association) installed two Pellergy PB 3550 boilers that provide heat through an insulated pipe distribution system to four Chilkoot Estates low income housing buildings. The project began as an attempt to reduce heating costs to one of these four-plexes, but expanded as benefits to the community became apparent. Objectives The main objectives of this project were for the Association to reduce their dependence on cost variable fuel oil while employing cleaner, renewable resources through the use of wood biomass. The goal was to displace 85-90 percent of the fuel oil used for heating a residential four-plexes. Economic Feasibility The system became operational in October of 2011. Between October of 2011 and December of 2014, it provided the community with 780 MMBtu of thermal energy and displaced 8,000 gallons of fuel oil. This displacement saved the community $17,000. Reasons for Installing this System Because pellets were a new fuel to Haines, there were concerns about the reliability of the boiler technology and the stability of the pellet supply chain. The Pellergy Boiler was selected because it is a dual fuel system that can easily be converted from pellet fuel to fuel oil. However, since the start-up of the pellet system, there has been no need to use fuel oil. Fuel and Storage Haines low-income housing, photo courtesy of AEA. Fuel Storage Community Benefits The Association purchases Clean Burn wood pel- lets from the Lower 48 for $425/ton in individual 40-pound bags. A significant portion of this cost is transportation to Alaska. Other Haines residents burning pellets can purchase their pellets through the Association at reduced cost. The Association supplies over 60 tons of pellets to local residents every year. Learning Experiences/Challenges The Chilkoot Indian Association received a Renew- able Energy Fund grant from AEA to install a GARN cordwood boiler system. They soon realized that the size and weight of the system would require extensive filling of wetlands to construct an adequate foundation due the weight of the Garn when filled with water. The extensive foundational requirements would exceed the available budget, so the Association decided to shift to a pellet-fired boiler. The boiler is a more compact, lighter, and less expensive option. The biggest challenge Haines has faced is the high cost of importing pellets. Barging pellets up from the Lower 48 more than doubles the price. Though still competetive with oil, the differential has not been significant enough to drive a rapid transformation to a pellet economy. The association is currently exploring the feasibility of constructing a small local pellet mill, but small market size makes the economics challeng- ing. They are continuing to explore ideas for reducing pellet costs and sourcing local biomass. Because the low income housing units are connected by underground insulated piping, they can share heat should one of the boilers go out. By opening and closing a few valves, hot water from one build- ing can be shared with another. This provides backup redundancy and significantly reduces the wear and tear from cycling the boilers on and off. This project helps the community support its low-income residents and will hopefully inspire even more use of pellet or biomass fuel in the future. Project Contact information Parties Involved: Jake Bell, Chilkoot Indian Association Email: jbell@chilkoot-nsn.gov Phone: 907-766-2323 Case Study Author: Zoe Tressel, AEA Intern Website: Akenergyauthority.org Pellet storage facility, photo courtesy of Dan Bihn. Clean Burn fuel pellets, photo courtesy of Dan Bihn. Haines Central Wood Heating Construction Updated February, 2016 “Since the start- up of the pellet system, there has been no need to use fuel oil.”