HomeMy WebLinkAboutHaines Borough Wood Heat Analysis Alaska Engineering LLC 06-2012-BIO
Wood Heating Analysis
Haines Borough
Administration Building
Public Library
Vocational Education Building
Haines School and Pool
Wastewater Treatment Plant
Chilkat Center
Prepared by:
Draft Report
June, 2012
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Haines Borough Draft - 1 Wood Heating Analysis
Table of Contents
Section 1: Executive Summary
Introduction ........................................................................................ 3
Life Cycle Cost Analysis .................................................................... 3
Wastewater Treatment Plant and Chilkat Center ............................... 5
Summary ............................................................................................ 6
Section 2: Introduction
Introduction ........................................................................................ 9
Conceptual Design Intent ................................................................. 10
Cost of Heat Comparison ................................................................. 11
Section 3: Life Cycle Cost Methodology
Economic Factors ............................................................................. 13
Construction Costs ........................................................................... 13
Operating Costs ................................................................................ 14
Energy Costs .................................................................................... 15
Section 4: Life Cycle Cost Analysis
Introduction ...................................................................................... 19
Administration Building ................................................................... 19
Public Library ................................................................................... 21
Vocational Education Building ........................................................ 22
School and Pool ................................................................................ 24
District Heating System ................................................................... 25
Summary .......................................................................................... 27
Appendix A: Conceptual Design Diagrams
Appendix B: Sizing and Life Cycle Cost Calculations
Appendix C: Equipment Specifications
Haines Borough Draft - 2 Wood Heating Analysis
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Haines Borough Draft - 3 Wood Heating Analysis
Section 1
Executive Summary
INTRODUCTION
This report presents the findings of a Wood Heating Analysis for the Haines Borough. The intent of
this analysis is to determine if there is economic incentive to invest in wood heating systems for
Haines Borough buildings.
The analysis looks at individual wood heating systems and a district wood heating system to serve the
following buildings: Administration Building; Public Library; Vocational Education Building; and
School and Pool. In addition, we summarize the feasibility of converting the Chilkat Center and
Wastewater Treatment plant to wood heating.
The scope of this study is limited to evaluating options for heating the buildings with wood pellets.
While wood boilers are capable of burning a variety of wood fuel including pellets, chips, disks, and
cordwood, only pellets are commercially available in consistent quality and sufficient quantity to be
considered for the buildings.
The buildings that are part of this study are currently heated by a fuel oil boiler(s). Pellet boilers
integrate well with the fuel-oil boiler heating systems because they both produce 180°F heating water.
In multiple boiler installations, a pellet boiler can replace an existing fuel oil boiler, retaining the
necessary heating redundancy.
For the smaller buildings (Administration, Library, Voc-Ed) a containerized wood boiler is evaluated.
For the larger wood boilers to serve the School or District Plant, a separate boiler building is
constructed to house the equipment.
LIFE CYCLE COST ANALYSIS
The analysis compares retaining the fuel oil boilers (status quo) with converting to wood pellet
boilers. The wood heating option retains the fuel oil boilers for redundancy and backup.
Administration, Library, and Vocational Education
The status quo option requires replacement of the boilers in the Administration and Voc-Ed buildings.
The Library boiler is in good condition and is retained. The wood heating conversion for each
building installs a containerized boiler adjacent to each boiler room. The container includes the wood
boiler, pellet storage tank, piping, and appurtenances.
The life cycle cost analysis determined that retaining the fuel oil boilers has the lowest life cycle cost.
Wood boilers require significant investment and more maintenance than fuel oil boilers. These
relatively small buildings with modest heating loads do not generate sufficient energy savings to
offset these higher costs.
Haines Borough Draft - 4 Wood Heating Analysis
School and Pool
The status quo option retains the fuel oil boilers in the school. The wood heating option installs two
pellet boilers in a boiler building located near the school boiler room.
A life cycle cost comparison determined that the two options have essentially equal life cycle costs.
The high heating requirements of the school allows the wood boiler to generate sufficient energy
savings to offset higher construction and operating costs.
District Heating System
The status quo option requires replacement of the older boilers in the Administration and Vocational
Education Building. The Library and School boilers are retained. The wood heating option constructs
a district heating plant near the school boiler room. Buried piping distributes the heat to each
building.
A life cycle cost comparison of the base case shows that the status quo option has the lowest life cycle
cost. The high heating requirements of the buildings does not generate sufficient energy savings to
offset the high cost of constructing the wood heating plant and buried distribution piping.
Life Cycle Cost Comparison
Heating System Construction Operating Energy Total LCC
Administration Building
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000
Library
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000
Vocational Education Building
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000
Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000
School and Pool
Status Quo: Fuel Oil Boilers $0 $135,000 $5,086,000 $5,221,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000
District Heating System
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000
Results based on 6.6% fuel oil inflation and 3.6% wood pellet inflation.
Highlighted costs are lowest life cycle cost.
Haines Borough Draft - 5 Wood Heating Analysis
WASTEWATER TREATMENT PLANT AND CHILKAT CENTER
The Borough has identified the Wastewater Treatment Plant and Chilkat Center as potential wood
heating conversions.
Wastewater Treatment Plant
The Wastewater Treatment Plant (WWTP) is heated by three fuel oil furnaces that consume 7,400
gallons of fuel oil per year. The furnaces have a relatively high design load of 720 MBH due to
ventilation loads.
Heating Options
Status Quo: The building is heated by three fuel oil furnaces; two are at the end of their service life.
The status quo option would replace the two furnaces.
Wood Heating Conversion: One option is to replace the two furnaces and install a containerized
wood boiler and a hydronic heating loop to supply the heat to a heating coil installed in each furnace.
A less expensive option is to connect the building to a district plant via buried pipelines. This is only
viable if the district plant is constructed.
Wood Heating Assessment
The wood heating options have a probable cost of construction of $750K for the connection to a
district plant and $1,000K to construct a wood boiler plant. The life cycle energy savings to shift
7,400 gallons of fuel oil to wood pellets is approximately $530K.
The energy savings does not offset the cost of installing the wood boiler so there is no economic
incentive to install a wood boiler. The factors that contribute to this finding are:
The relatively high heating load increases the size of the wood boiler and the initial investment.
The cost of converting is further increased by the need to install a hydronic heating system to
supply heat to each furnace.
Chilkat Center
The Chilkat Center is heated by two fuel oil boilers that consume 11,000 gallons of fuel oil per year.
Heating Options
Status Quo: The two boilers are at the end of their service life. The status quo option replaces the
boilers.
Wood Heating Conversion: This option replaces the existing heating system and adds a heat
exchanger and pumps to separate the building heating system from the wood boiler system, and
installs an exterior container that contains a wood boiler, pellet storage tank, boiler pump and
appurtenances. A control system is installed to operate the boilers and pumps in a lead/standby
configuration.
Wood Heating Assessment
The wood heating option has a probable cost of construction of $400K. The life cycle operating
savings—energy savings minus added maintenance— is approximately $600K. The operating savings
more than offset the investment so there is incentive to convert the building to wood heating.
It was noted in recent assessments of the building that it is currently operating inefficiently. Efforts to
reduce energy consumption typically have a better return than investments in new heating systems. It
is recommended that the building be brought up to optimal operation and then the wood heating
assessment be based on the new baseline energy consumption.
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SUMMARY
This analysis determined that there is not sufficient incentive to invest in wood heating systems.
Wood heating is the higher life cycle cost option on the three smaller buildings, only breaks even for
the School, and is higher for the district plant. The findings are typical of other analyses for buildings
in Southeast Alaska.
The use of wood as a heating source is increasing in North America, primarily because of energy cost
savings. The findings do not directly challenge this trend, but instead exhibit the following realities of
wood heating in Haines:
Energy Costs: Wood pellets are more expensive in Haines and are subject to greater price
volatility due to imbedded transportation energy. In the Pacific Northwest, the delivered cost is
$190 per ton. Sealaska Corporation is quoting $360 per ton (89% higher).
Construction Costs: Haines has higher construction costs due to higher labor and material costs.
This reality has historically hindered the incentive to invest in energy efficiency throughout
Southeast Alaska.
The prudent course of action is to wait and see how this energy source plays out over time. Important
signals will be the influx of private money into the industry and favorable long-term assessments of
the resource that reduce the risk. There is little lost in waiting as the economics do not currently
provide a strong incentive to invest in wood heating.
Relevant Considerations
Any building owner that is considering wood heating should be fully versed in the technology and
requirements of the system. Wood heating systems require significant investment, considerably more
maintenance, and the equipment has a shorter service life—wood boilers last 18 years, fuel oil boilers
35 years. While the technology has improved remarkably in recent years, wood heating is not a better
way to heat buildings. A wood heating system requires a more hands-on ownership role than a fuel oil
boiler system.
It is also prudent to consider that a wood boiler does not convert wood energy to heat at higher
efficiency; there is no change in the amount of purchased energy. Wood heating still requires the
purchasing a finite energy source from the energy market. In a world of increasing energy demands
and finite supplies, it has yet to be proven that wood energy can retain its present cost advantage over
the life of the investment (and beyond). The lack of knowledge on this point is a serious deficiency
given that firm energy saving is the dominant reason for investing in a wood heating system.
Recommendation
It is recommended that the Haines Borough not invest in wood heating systems at this time. The
wood heating industry is in its relative infancy and there remain unknowns and risks of the future
availability and cost of wood energy.
The recently released Draft Southeast Alaska Integrated Resource Plan (IRP) makes a strong
recommendation for wood heat conversions. However, the plan failed to provide a regional wood
energy resource analysis of the sustainability and cost of wood heating energy throughout the region.
Without the analysis, the wood heating recommendation lacks basis.
Haines Borough Draft - 7 Wood Heating Analysis
The recommendation to not invest in wood heating until the economics improve and more is known
about the wood energy resource provides Haines a window for planning its energy future. While the
IRP attempted to provide a plan for the entire Southeast Alaska region, each community essentially
has its unique energy challenges and opportunities. Haines’ long-term economic health can be
fortified by developing a local energy plan. Since Haines and Skagway share hydroelectric resources,
coordination between the communities is also needed. The energy plan can look at all potential
sources of energy, evaluate their supply and demand, and assess how they contribute to meeting the
future energy demands of the community.
Haines Borough Draft - 8 Wood Heating Analysis
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Haines Borough Draft - 9 Wood Heating Analysis
Section 2
Introduction
INTRODUCTION
This report presents the findings of a Wood Heating Analysis for the Haines Borough. The intent of
this analysis is to determine if there is economic incentive to invest in wood heating systems for
Haines Borough buildings.
The analysis looks at individual wood heating systems and a district wood heating system to serve the
following buildings:
Administration Building
Haines Borough Public Library
Vocational Education Building
Haines School and Pool
In addition, we summarize the feasibility of converting the Chilkat Center and Wastewater Treatment
plant to wood heating.
The purpose of this analysis is to compare the life cycle cost of maintaining the status quo of heating
with fuel oil boilers with converting to wood pellet heating. The analysis is performed by:
Jim Rehfeldt, P.E., Mechanical/Energy Engineer, Alaska Energy Engineering LLC
Doug Murray, Mechanical Engineer, Murray & Associates P.C.
Ben Haight, Electrical Engineer, Haight & Associates, Inc.
Scope of Work
The scope of work as defined in the Request for Proposals is:
Provide a current resource assessment for finished wood pellets.
Provide a 20-year life cycle cost analysis to heat the buildings with wood pellets. The analysis
will evaluate the construction, maintenance, and energy costs of retaining the fuel oil heating
systems, converting to a wood pellet heating system, or a wood pellet district heating system. On
the wood boiler options, the fuel oil heating system is retained as backup.
In addition to the buildings in the above analysis, provide an executive summary on the feasibility
of using wood pellets to heat the following borough facilities: Sewage Treatment Plant and
Chilkat Center.
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CONCEPTUAL DESIGN INTENT
Pellet Boilers
The scope of this study is limited to evaluating options for heating the buildings with wood pellets.
While wood boilers are capable of burning a variety of wood fuel including pellets, chips, disks, and
cordwood, only pellets are currently commercially available in consistent quality and sufficient
quantity to be considered for the buildings.
Heating Systems
The buildings that are the focus of this study are currently heated by a fuel oil boiler(s). Pellet boilers
integrate well with the fuel-oil boiler heating systems because they both produce 180°F heating water.
At the School, which is heated with multiple boilers, a pellet boiler can replace a fuel oil boiler,
retaining the necessary heating redundancy.
A wood heat conversion will integrate a wood boiler with the existing boiler(s) to provide a dual-fuel
heating system. The design intent is to provide an integrated dual-fuel system that operates the boilers
in a lead (pellet) and lag (fuel oil) configuration to heat the building.
The wood boilers can be installed within the building or in a container as part of a preassembled
package. None of the buildings have sufficient room within the boiler rooms for the pellet boiler. For
the smaller boilers (Admin, Library, Voc-Ed) a containerized boiler has been selected. For the larger
wood boilers to serve the School or District Plant, a separate boiler building is required for the
heating plant.
The School site is highly constrained in the vicinity of the boiler room by an access road, buried
utilities, and parking. It was reported that the adjacent property—currently occupied by the closed
Elks Lodge—will be put up for sale. The corner of this lot closest to the boiler room offers a suitable,
flat site for the wood boiler building. It is assumed that the Borough will purchase the property and a
wood boiler building is suitable for the back corner of the lot.
All of the wood heating systems will require an anti-freeze solution so the outdoor piping and wood
boiler do not freeze if it is shut down for service or repairs. Since anti-freeze would reduce the heating
capacity of the existing building heating systems, a heat exchanger is required to separate the building
heating system from the wood boiler system.
District Heating
A district heating plant that supplies the four buildings can be effectively located anywhere between
the school and the Administration Building. Since the School has the highest heating load, it has been
located near the School to reduce the cost of buried piping and associated heat loss.
If the Borough consolidates facilities in a location closer to the Library, the wood boiler building can
be moved closer to the new facility without significant cost impact if its heating load is comparable to
the School.
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COST OF HEAT COMPARISON
The following chart provides a 20-year heating cost comparison for fuel oil, electric and wood pellet
heat. Wood pellet heat is less expensive than both fuel oil and electric heat. See Section 3 for the basis
of energy inflation factors.
Fig 1: Cost of Heat Comparison
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
2013 2015 2017 2019 2021 2023 2025 2027 2029 2031$ / MMBtuYear
Cost of Heat Comparison
Fuel Oil Boiler Heat @ 6.6% Inflation
Electric Boiler Heat @ 2.5% Inflation
Pellet Boiler Heat @ 3.6% Inflation
Haines Borough Draft - 12 Wood Heating Analysis
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Haines Borough Draft - 13 Wood Heating Analysis
Section 3
Life Cycle Cost Methodology
The purpose of this feasibility analysis is to compare the life cycle cost of retaining the fuel oil
heating systems with converting them to wood pellet heating. The findings are highly sensitive to the
economic factors, energy costs, and energy inflation used for the analysis. While future energy
inflation has the greatest impact on the findings, there is no authority for these values. For this reason,
a sensitivity analysis is used where base case, low, and high values for electricity and fuel oil inflation
are evaluated.
ECONOMIC FACTORS
The following economic factors are used in the analysis:
Economic Period: The scope of work sets the economic period at 20 years with all costs based on
2013 construction.
Nominal Interest Rate: This is the nominal rate of return on an investment, without regard to
inflation. If the Haines Borough were to finance a large project it would do so by issuing bonds
through the Alaska Municipal Bond Bank. The bond bank’s most recent issue in April paid an
interest rate of 2.94% for a 20 year maturity. The analysis is based on a rate of return of 3%.
Inflation Rate: The Consumer Price Index has risen at a rate of 2.9% over the past 20-years. The
State of Alaska predicts general inflation of 2.5-3% per year. The analysis is based on a 2.75%
rate of inflation over the 20-year economic period.
CONSTRUCTION COSTS
It is preferable to install wood boilers within the building for ease of maintenance and to minimize the
impact to the aesthetics of the site. Unfortunately, none of the boiler rooms have sufficient space for a
wood boiler.
Adding a wood boiler will require constructing an addition to the building or installing a
containerized boiler. The containerized option is less expensive and acceptable to the Borough, so the
conceptual design is based on this option. This option is suitable for the Admin Building, Library, and
Voc-Ed Building. The larger boiler plant for the school and district heating system requires a
standalone building to house the boilers and accessories.
All of the wood boilers are sized for 70% of the design heating load. This sizing will optimize the
efficiency of the boiler. Fuel oil boiler supplementation will be required during cold weather and
when undergoing maintenance and repair. The pellet boiler will supply 90% of the heating load and
the fuel oil boiler 10%.
Appendix C contains specifications for the wood boilers.
Haines Borough Draft - 14 Wood Heating Analysis
OPERATING COSTS
Operating costs include maintenance and repair cost—on an annual and intermittent basis—and
equipment replacement costs at the end of its expected service life. The costs are derived from
industry standards for the long-term operation of the systems.
Maintenance and Repair
The heating systems will have the following maintenance and repair requirements. Wood boilers have
higher maintenance requirements than the existing systems.
Fuel Oil Boilers
The following describes the maintenance requirements for fuel oil boilers. For the wood heating
options, where the fuel oil boiler is operated as the lag boiler, these requirements are reduced by 50%.
Daily: Inspection of boiler operation; 5 min/day
Monthly: Check burner and fuel system; Check gaskets for unusual wear, overheating, and
leakage; 2 hours.
Annual Maintenance: Drain boiler, check interior for scale, clean combustion surfaces, perform
combustion test, remove and clean low water cutoff probe, burner maintenance, replace any
leaking elements or element gaskets; 2x per year, 8 hours each.
Annual Parts Allowance: $150 per year.
Wood Boilers
It is assumed that daily and weekly maintenance will be performed in-house and monthly and annual
maintenance will be performed under a service contract. The wood boilers have considerably higher
maintenance requirements. It is incumbent with a wood heating system that the operating personnel
have a strong sense of ownership in the system and a willingness to monitor and maintain it.
Daily: Visual inspection of the boiler; 5 minutes (small boilers, 10 minutes large boilers). This
work can be performed by Borough building maintenance.
Weekly: Close visual inspection of plant equipment; 30 minutes. This work can be performed by
Borough building maintenance.
Monthly: Check critical functions, remove ash and clinkers; 2 hours. This work will require
specialize training. The analysis is based on contracting this work.
Biannual: Inspections, lubing, burner maintenance, internal critical function checks, possible
equipment replacement; 8 hours. This work will require specialize training. The analysis is based
on contracting this work.
Annual Parts Allowance: $250 per year.
Pumps
Require annual lubrication and periodic replacement.
Replacement
The fuel oil boilers have an expected service life of 35 years and will not require replacement during
the 20-year analysis period. The wood boilers have an expected service life of 18 years. The analysis
assumes that will operate satisfactorily throughout the 20-year analysis period.
Haines Borough Draft - 15 Wood Heating Analysis
ENERGY COSTS
Fuel Oil
Current Cost
The Haines Borough currently pays $4.22 per gallon for #2 heating oil.
Future Inflation
Base Fuel Oil Case: In recent years, fuel oil inflation has been very sporadic, with a decidedly
upward trend in prices. Looking at oil prices over a longer period will smooth out the data and
provide a longer-term assessment of future costs. Using this perspective over the past 25-years, fuel
oil inflation has averaged 6.6% per year. The base case assumes that future fuel inflation will
continue at this rate. This results in a 2013 price of $4.50 per gallon.
High Fuel Oil Case: There is potential for world oil demand to increase due to increased
consumption by developing countries and/or an expanding global economy. Disruption of the world
oil supplies could also affect supply, causing prices to rise. The high case assumes these factors and
others could cause fuel inflation to be higher than the base case at 8% per year.
Low Fuel Oil Case: The U.S. Energy Information Agency predicts fuel oil inflation of 4.8% per year
for the next 25-years. While this reference has historically under-predicted actual fuel oil inflation, it
is possible that future fuel oil inflation may be lower than the base case due to: new technologies that
increase oil field production; new sources such as oil sands; and efficiency gains that reduce global
oil demand. These factors and others could lead to less demand which would result in fuel oil
inflation lower than the base case at 4.8% per year.
Wood Pellets
Supply Source
Wood heating of commercial and institutional buildings is increasing in use in the United States, but
the industry is in its relative infancy in Southeast Alaska. Boilers can burn pellets, chips, discs,
cordwood, and hog fuel (chopped wood). Of these energy sources, only pellets are manufactured to
known standards for energy content, moisture levels, ash content, etc.
Premium-grade pellets are currently the only suitable wood energy fuel for the buildings. This
selection does not exclude other local wood energy supplies from being considered in the future if the
Haines Borough installs a wood heating system(s). Other sources that can demonstrate the capability
to supply wood heating energy in suitable quality and quantity, and offer a life cycle savings, will be
considered.
The following institutional Haines buildings are currently heating with wood pellets:
Chilkoot Indian Association Housing: Two 4-plexes. They direct purchase their pellets from
Washington, ship them to the site, and load them in the pellet hopper. There current cost is $155
per ton plus $5.30 per 40# bag for shipping which comes to $420 per ton plus labor to load the
hopper.
Sealaska Corporation, through their Sealaska Global Logistics subsidiary, is committed to distributing
wood pellets throughout Southeast Alaska. There are no local pellet sources, so they purchase pellets
from the Pacific Northwest and distribute them to buildings in Southeast Alaska. The analysis is
based on their pellet price. This does not exclude any other supplier from bidding on future pellet
supply contracts if they can meet the pellet procurement requirements.
Haines Borough Draft - 16 Wood Heating Analysis
Other Sources
The Chilkoot Indian Association has studied the idea of constructing a wood pellet plant in Haines.
The plant could source beetle-killed wood from the Yukon or from the Haines State Forest. At the
present time, they do not have firm plans to build the plant.
Dakwakak Development Corporation in the Yukon has looked into constructing a pellet plant but is
not actively pursuing the idea.
A pellet plant has just begun operation in Fairbanks. There have been some issues with quality control
and the formation of clinkers within the boiler. Unfortunately, it is cost prohibitive to ship pellets for
Fairbanks to Haines.
Current Costs
Sealaska has quoted a pellet price of $360 per ton.
Future Inflation
The recently released Draft Southeast Alaska Integrated Resource Plan (IRP) lays out a goal to
convert 80% of the fuel oil heating load to wood heating. Unfortunately, the IRP does not provide or
reference a market analysis of future pellet inflation, information that is basic to performing a wood
heating analysis or making a long-term investment in a wood heating boiler.
While Alaska and all of the states in the Pacific Northwest recognize wood heating as a viable heating
option, none of them have performed research on long-term costs and sustainability under various
load growth scenarios.
Research on pellet pricing trends has failed to produce definitive information that can be used in
predicting the rate of inflation in a Southeast Alaska energy analysis. Local pellet production is
without history, with just one Ketchikan pellet mill in production for a few months. At this point, any
pricing should assume pellets will be imported from the Pacific Northwest.
Baseline Case: Historic pellet inflation factored over 20 years has approximated the rate of general
inflation in the U.S. and in Europe, approximately 3%. In the shorter and more recent past (5-7 years)
pellet inflation for some mills has averaged 4.5 to 5 percent. The following examples were found:
Tongass Forest Enterprises, Ketchikan: Current contract with Federal Government includes a 5%
per year annual escalation factor.
Manke Lumber, Seattle: Price increases of ~5% over the past 5 years.
Pellets in New England averaged 4.6% annual increase from 1998-2010. However, Charlie
Neibling of New England Wood Pellet recommends using 3% pellet inflation.
Case studies reviewed from Oregon, Montana and New England used inflation rates of 3.0 to 4.25
percent.
From our research, a pellet inflation rate between 3% and 4.5% is defensible. This is a wide range that
reflects the lack of independent study; critical information that is essential to evaluating the
economics of wood heat. The analysis is based on a median pellet inflation rate of 3.75%.
There are two sides to the issue of pellet inflation. A low inflation rate improves the short-term
economics of conversion. From a long-term perspective, a higher inflation rate improves pellet
manufacturer cash flow to cover increasing labor, material, and energy costs while offering incentive
to invest in production equipment. This in turn leads to competition, which hopefully leads to better
pricing. A 3.75% inflation rate aligns with the long-term perspective that is inherent with investment
in a wood boiler.
Haines Borough Draft - 17 Wood Heating Analysis
Transportation accounts for 56% of the cost of pellets delivered to Haines. The fuel surcharge quoted
by Alaska Marine Lines is 20% of the shipping cost. The following calculation uses this breakdown
to determined that the sum of each of these factors and returns a delivered inflation rate of 3.6%
Pellet Inflation = 44% of total cost x 3.75% pellet inflation = 1.7%
Transportation (non-fuel) = 80% of 56% of total cost x 2.75% general inflation = 1.2%
Transportation (Fuel) = 20% of 56% total cost x 6.6% oil inflation = 0.7%
Total Pellet Inflation Rate = 3.6%
High Case: If in the near term, pellets and fuel oil inflate at their base case predictions of 4% and
6.6%, the cost differential between them will increase in the future. This will provide greater
incentive to convert to wood heating and the increasing cost difference will give pellet manufacturers
an incentive to raise prices. Other factors that can lead to higher pellet costs are localized supply
reductions that have occurred from time to time. Because this is a regional market the loss of one
major supplier through fire or business shut-down can cause market disturbance. A high case of 5%
reflects these factors.
Low Case: If local pellet mill production develops, with competition, pellet prices for Southeast
Alaska consumers could see a reduction because of reduced shipping costs. Or, if a robust wood
products industry develops in Southeast Alaska, there will be more “waste” material that can be made
into pellets. If this were to happen, pellet inflation could remain at the historic inflation rate of 3%.
Electricity
Current Cost
The Alaska Power Company supplies power to the buildings. A review of the billing data shows that
electric costs average $0.24 per kWh. Since electricity consumption is a minor part of a heating
systems total energy use, this value is accepted for use in the analysis.
Future Inflation
It is assumed that electric rates will increase at 3% per year. This increases 2013 cost to $.25 per
kWh.
Haines Borough Draft - 18 Wood Heating Analysis
Summary
The following table summarizes the energy and economic factors used in the analysis. A sensitivity
analysis is also provided to determine how modest variations in energy inflation affect the results.
The following table shows the base, high and low case energy inflation that is applied to the analysis.
Summary of Economic and Energy Factors
Factor Rate or Cost
Nominal Discount Rate 3%
General Inflation Rate 2.75%
Electricity, 2013 25¢ per kWh
Electricity Inflation 3%
Fuel Oil, 2013 $4.50 / gallon
Fuel Oil Inflation 1 4.8%, 6.6% (Base), 8%
Pellets $373.00 / ton
Pellet Inflation 1 2.75%, 3.6% (Base), 5%
1. The inflation rates for fuel oil and wood pellets represent the base case and
the low and high cases used for the sensitivity analysis.
Haines Borough Draft - 19 Wood Heating Analysis
Section 4
Life Cycle Cost Analysis
INTRODUCTION
This section provides the conceptual design and life cycle cost comparison of retaining the existing
heating systems or converting to wood pellet heating systems. Incorporating wood boilers will require
added investment in the boilers, storage, and integration with the existing building heating systems.
ADMINISTRATION BUILDING
Heating Options
Status Quo
The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the
heating system including the boiler, pumps, piping, domestic hot water heating system, and
appurtenances.
Wood Heating Conversion
This option replaces the existing heating system and adds a heat exchanger and pumps to separate the
building heating system from the wood boiler system, and installs an exterior container that contains a
wood boiler, pellet storage tank, boiler pump and appurtenances. The container is located within 5’ of
the boiler room so the piping can be routed aboveground. A control system is installed to operate the
boilers and pumps in a lead/standby configuration.
Annual Costs
The following table compares the 2013 annual maintenance and operating costs of the two options. In
the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status
quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs.
However, the lack of initial savings reduces the incentive to invest in a wood heating plant.
Annual Costs – Administration Building
Item Consumption 2013 Cost
Status Quo
Maintenance 78 hours $3,300
Fuel Oil 990 gals 4,500
Electricity 400 kWh 100
Total $ 7,900
Wood Pellet Conversion
Maintenance 134 hours $8,600
Fuel Oil 100 gals 400
Pellets 9 tons 3,400
Electricity 2,200 kWh 500
Total $ 12,900
Haines Borough Draft - 20 Wood Heating Analysis
Life Cycle Costs
A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the
lowest life cycle cost. When comparing the options under the base case, the wood boiler option has
the following life cycle cost factors that are central to this result:
The construction costs are 390% higher.
The maintenance costs are 260% higher.
The energy costs are 29% lower.
The findings indicate that the higher construction and operating costs are not offset by the energy
savings. This causes the wood heating option to have a higher life cycle cost.
For the Administration Building, the heating load is relatively low due to the lack of a ventilation
system. The wood boiler is not able to generate sufficient energy savings to offset the higher
construction and maintenance costs. This is true under all of the energy inflation cases. For the wood
heating option to be preferred over the status quo—likely siphoning current dollars from other
priorities—the system should overwhelmingly have a lower life cycle cost. This is not the case.
Life Cycle Cost Comparison – Administration Building
Heating System Construction Operating Energy Total LCC
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $154,000 $295,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $98,000 $565,000
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $110,000 $251,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $93,000 $560,000
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $107,000 $574,000
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000
Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000
Note: Highlighted costs are lowest life cycle cost in each category.
Haines Borough Draft - 21 Wood Heating Analysis
PUBLIC LIBRARY
Heating Options
Status Quo
The building is heated by a fuel oil boiler that has over 20-years of remaining service life. The status
quo option retains the existing heating system.
Wood Heating Conversion
This option retains the existing heating system, installs an exterior container that contains a wood
boiler, pellet storage tank, boiler pump and appurtenances, and adds a heat exchanger and pumps to
separate the building heating system from the wood boiler system. The container is located within 5’
of the boiler room so the piping can be routed aboveground. A control system is installed to operate
the boilers and pumps in a lead/standby configuration.
Annual Costs
The following table compares the 2013 annual maintenance and operating costs of the two options. In
the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status
quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs.
However, the lack of initial savings reduces the incentive to invest in a wood heating plant.
Annual Costs - Library
Item Consumption 2013 Cost
Status Quo
Maintenance 74 hours $3,100
Fuel Oil 3,300 gals 14,800
Electricity 600 kWh 100
Total $ 18,000
Wood Pellet Conversion
Maintenance 126 hours $8,000
Fuel Oil 340 gals 1,600
Pellets 26 tons 9,700
Electricity 3,000 kWh 700
Total $ 20,000
Life Cycle Costs
A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the
lowest life cycle cost. When comparing the options under the base case, the wood boiler option has
the following life cycle cost factors that are central to this result:
An investment of $319,000 is required for the heating system.
The maintenance costs are 260% higher.
The energy costs are 43% lower.
The findings indicate that the higher construction and operating costs are not offset by the energy
savings. This causes the wood heating option to have a higher life cycle cost.
Haines Borough Draft - 22 Wood Heating Analysis
The wood boiler is not able to generate sufficient energy savings to offset the higher construction and
maintenance costs. This is true under all of the energy inflation cases. For the wood heating option to
be preferred over the status quo—likely siphoning current dollars from other priorities—the system
should overwhelmingly have a lower life cycle cost. This is not the case.
Life Cycle Cost Comparison - Library
Heating System Construction Operating Energy Total LCC
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $504,000 $565,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $273,000 $749,000
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $357,000 $418,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $258,000 $734,000
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $298,000 $774,000
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000
Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000
Note: Highlighted costs are lowest life cycle cost in each category.
VOCATIONAL EDUCATION BUILDING
Heating Options
Status Quo
The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the
heating system including the boiler, pumps, piping, domestic hot water system, and appurtenances.
Wood Heating Conversion
This option replaces the existing heating system and adds a heat exchanger and pumps to separate the
building heating system from the wood boiler system, and installs an exterior container that contains a
wood boiler, pellet storage tank, boiler pump and appurtenances. The container is located within 5’ of
the boiler room so the piping can be routed aboveground. A control system is installed to operate the
boilers and pumps in a lead/standby configuration.
Annual Costs
The following table compares the 2013 annual maintenance and operating costs of the two options. In
the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status
quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs.
However, the lack of initial savings reduces the incentive to invest in a wood heating plant.
Haines Borough Draft - 23 Wood Heating Analysis
Annual Costs – Vocational Education
Item Consumption 2013 Cost
Status Quo
Maintenance 78 hours $ 3,300
Fuel Oil 1,650 gals 7,400
Electricity 390 kWh 200
Total $ 10,900
Wood Pellet Conversion
Maintenance 132 hours $8,500
Fuel Oil 170 gals 800
Pellets 14 tons 5,200
Electricity 3,000 kWh 700
Total $ 15,200
Life Cycle Costs
A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the
lowest life cycle cost. When comparing the options under the base case, the wood boiler option has
the following life cycle cost factors that are central to this result:
The construction costs are 480% higher.
The maintenance costs are 260% higher.
The energy costs are 33% lower.
The findings indicate that the higher construction and operating costs are not offset by the energy
savings. This causes the wood heating option to have a higher life cycle cost.
Life Cycle Cost Comparison – Vocational Education
Heating System Construction Operating Energy Total LCC
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000
Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $182,600 $311,700
Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $67,500 $63,900 $182,600 $314,000
Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000
Pellet and Fuel Oil Boilers $312,000 $165,000 $166,000 $643,000
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000
Pellet and Fuel Oil Boilers $312,000 $165,000 $139,000 $616,000
Note: Highlighted costs are lowest life cycle cost in each category.
Haines Borough Draft - 24 Wood Heating Analysis
SCHOOL AND POOL
Heating Options
The School Building boilers also supply heat to the Borough swimming pool.
Status Quo
The school building has a three-boiler heating plant with over 20-years of remaining service life. The
status quo option retains the existing heating system.
Wood Heating Conversion
Wood Heating System: This option retains the existing heating system but disables one of the fuel oil
boilers. A boiler building is constructed on the adjacent Elks Lodge property—it is assumed that the
Borough will purchase the property—and a two wood boiler heating plant is constructed to supply the
building. A heat exchanger and pumps are installed in the boiler room to separate the building heating
system from the wood boiler system. A control system is installed to operate the boilers and pumps in
a priority lead/standby configuration.
Annual Costs
The following table compares the 2013 annual maintenance and operating costs of the two options.
The wood boiler option has lower annual costs throughout the life of the boiler due to energy cost
savings offsetting higher maintenance costs.
Annual Costs – School and Pool
Item Consumption 2013 Cost
Status Quo
Maintenance 162 hours $7,000
Fuel Oil 38,400 gals 173,000
Electricity 6,800 kWh 2,000
Total $ 182,000
Wood Pellet Conversion
Maintenance 288 hours $18,000
Fuel Oil 3,800 gals 17,000
Pellets 323 tons 121,000
Electricity 21,000 kWh 5,000
Total $ 161,000
Life Cycle Costs
A life cycle cost comparison of the base case shows that the two options have essentially equal life
cycle costs. The high heating requirements of the school give the wood boiler the ability to generate
sufficient energy savings to offset higher construction and operating costs. When comparing the
options, the wood boiler option has the following life cycle cost factors that are central to this result:
An investment of $1,917,000 in the wood heating system is required.
The maintenance costs are 260% higher.
The energy costs are 38% lower.
Haines Borough Draft - 25 Wood Heating Analysis
The life cycle cost comparison changes in a predictable way with the different energy inflation cases.
Where fuel oil inflation is lower or pellet inflation is higher, the fuel oil boiler option has a lower life
cycle cost. Under the scenarios where fuel oil inflation is higher or pellet inflation is lower, the wood
boiler option has a lower life cycle cost. All of the options and scenarios have a life cycle cost of
$5.5M +/- 10%, which is very close when estimating and forecasting costs for 20 years.
For the wood heating option to be preferred over the status quo—likely siphoning current dollars
from other priorities—the system should overwhelmingly have a lower life cycle cost. There is no
compelling reason to invest in a wood heating system.
Life Cycle Cost Comparison – School and Pool
Heating System Construction Operating Energy Total LCC
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,931,000 $6,066,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,261,400 $5,526,400
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $4,198,000 $4,333,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,088,100 $5,353,100
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,581,800 $5,846,800
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $2,963,300 $5,228,300
Note: Highlighted costs are lowest life cycle cost in each category.
DISTRICT HEATING SYSTEM
Heating Options
Status Quo
The four buildings will have the same scope of work as for the individual wood boiler systems.
Administration Building: The building is heated by a fuel oil boiler that is at the end of its
service life. This option replaces the heating system including the boiler, pumps, piping, domestic
hot water system, and appurtenances.
Library: The building is heated by a fuel oil boiler that has over 20-years of remaining service
life. The status quo option retains the existing heating system.
School and Pool: The school building has a three-boiler heating plant with over 20-years of
remaining service life. The status quo option retains the existing heating system.
Vocational Education: The building is heated by a fuel oil boiler that is at the end of its service
life. This option replaces the heating system including the boiler, pumps, piping, domestic hot
water system, and appurtenances.
Haines Borough Draft - 26 Wood Heating Analysis
Wood Heating Conversion
Wood Heating System: This option retains the existing heating systems in each building. A district
heating plant is constructed on the adjacent Elks Lodge property—it is assumed that the Borough will
purchase the property—with two wood boilers to supply the buildings. The buildings are connected
by buried piping in insulated enclosures. A heat exchanger and pump is installed in each boiler room
to separate the building heating system from the wood heat distribution system. A control system is
installed in each boiler room to operate the local boilers and pumps when the wood boiler is not
supplying sufficient heat.
Annual Costs
The following table compares the 2013 annual maintenance and operating costs of the two options.
The wood boiler option has lower annual costs throughout the life of the boiler due to lower
maintenance and energy costs.
Annual Costs – District Heating System
Item Consumption 2013 Cost
Status Quo
Maintenance 398 hours $ 17,000
Fuel Oil 44,000 gals 199,000
Electricity 8,500 kWh 2,000
Total $ 218,000
Wood Pellet Conversion
Maintenance 324 hours $ 20,000
Fuel Oil 2,500 gals 11,000
Pellets 416 tons 155,000
Electricity 53,000 kWh 13,000
Total $ 199,000
Life Cycle Costs
A life cycle cost comparison of the base case shows that the status quo option has the lowest life cycle
cost under all scenario except the high fuel oil case at 8% inflation. The high heating requirements of
the buildings fail to generate sufficient energy savings to offset the high cost of installing the wood
heating plant and buried distribution piping.
The district plant does reduce maintenance costs over the status quo because the majority of the
maintenance is shifted from the individual fuel oil boilers to the wood boilers.
When comparing the options, the wood boiler option has the following life cycle cost factors that are
central to this result:
An additional investment of $3,248,000 in the wood heating system is required.
The maintenance costs are 7% lower because the maintenance of the wood plant is less than
maintaining individual boilers.
The energy costs are 47% lower. The district plant supplies 95% of the heating load consuming
less expensive wood energy.
Haines Borough Draft - 27 Wood Heating Analysis
All of the options and scenarios have a life cycle cost of $6.3 +/- 10%, which is very close when
estimating and forecasting costs for 20 years.
For the wood heating option to be preferred over the status quo—likely siphoning current dollars
from other priorities—the system should overwhelmingly have a lower life cycle cost. There is no
compelling incentive to invest in a wood heating system.
Life Cycle Cost Comparison – District Heating System
Heating System Construction Operating Energy Total LCC
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $6,825,000 $7,302,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,144,000 $6,846,000
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $4,832,000 $5,309,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,062,000 $6,764,000
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,492,000 $7,194,000
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $2,899,000 $6,601,000
Note: Highlighted costs are lowest life cycle cost in each category.
SUMMARY
This analysis determined that there is not sufficient incentive to invest in wood heating systems.
Wood heating is the higher life cycle cost option on the three smaller buildings, only breaks even for
the School, and is higher for the district plant. The findings are typical of other analyses for buildings
in Southeast Alaska.
The use of wood as a heating source is increasing in North America, primarily because of energy cost
savings. The findings do not directly challenge this trend, but instead exhibit the following realities of
wood heating in Haines:
Energy Costs: Wood pellets are more expensive in Haines and are subject to greater price
volatility due to imbedded transportation energy. In the Pacific Northwest, the delivered cost is
$190 per ton. Sealaska Corporation is quoting $360 per ton (89% higher).
Construction Costs: Haines has higher construction costs due to higher labor and material costs.
This reality has historically hindered the incentive to invest in energy efficiency throughout the
region.
The prudent course of action is to wait and see how this energy source plays out over time. Important
signals will be the influx of private money into the industry and favorable long-term assessments of
the resource that reduce the risk. There is little lost in waiting as the economics do not currently
provide a strong incentive to invest in wood heating.
Haines Borough Draft - 28 Wood Heating Analysis
Blank page
Appendix A
Conceptual Design Diagrams
Appendix B
Sizing and Life Cycle Cost Calculations
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
Administration Building
Summary
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.6% Fuel Inflation
0.2% Real Discount Rate 3.0% Electricity Inflation
2.75% Pellet Inflation
Results
Construction Annual Energy Total % of Base
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 -
Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 203%
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $154,000 $295,000 -
Pellet and Fuel Oil Boilers $300,000 $167,000 $98,000 $565,000 192%
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $110,000 $251,000 -
Pellet and Fuel Oil Boilers $300,000 $167,000 $93,000 $560,000 223%
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 -
Pellet and Fuel Oil Boilers $300,000 $167,000 $107,000 $574,000 209%
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 -
Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 203%
June 7, 2012
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Admin Building
Annual Energy Requirements
Sizing Analysis
Design Heating Load, Estimated BTUH/sqft sqft MBH
25 3,538 88
Existing Boilers Boiler MBH
B-1 129
Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH
Wood 88 70% 62 62
B-1 88 146% 129 0
Total 191 62
% Design 216% 70%
Annual Heating Load
Fuel Oil Use Year Gallons
2010 980
2011 1,120
Average 1,050
Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU
1,050 138.5 68% 98,889
Status Quo: Fuel Oil Boilers
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
98,889 100% 98,889 72% 138.5 992
Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh
11 15 4 25 0.04 70% 400
Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag)
Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons
98,889 90% 89,000 70% 15,560 9.0 0% 9.0
Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
98,889 10% 9,889 72% 138.5 99
Electric Loads Load Ave GPM Head bhp η Hours kWh
Boiler pump 4 15 0.03 70% 8,760 240
HX Pump 4 15 0.03 70% 8,760 240
Silo Auger 0.50 70% 500 266
Feed Auger 0.25 70% 3,000 799
Induction Fan 0.25 89% 3,000 629
2,174
June 7, 2012
Page 2
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Administration Building
Status Quo: Fuel Oil Boiler
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.00% Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Heating Plant
Demolition (assume no soil remediation)
Heating Plant 1 ea $5,000 $5,000
Fuel tank, aboveground 1 ea $500 $500
62 MBH fuel oil boiler 1 ea $9,000 $9,000
Chimney 1 ea $1,600 $1,600
Heating pumps 1 ea $1,500 $1,500
Piping and appurtenances 1 ls $5,000 $5,000
DHW heat pump 1 ea $4,000 $4,000
Replace fuel system 1 ea $6,000 $6,000
Single phase electric service 3 ea $600 $1,800
Contingencies
Estimating contingency 15% $5,160
Haines locality factor 30% $11,868
Overhead & profit 30% $11,868
Design fees 10% $6,330
Project management 10% $6,963
Total Construction Costs $77,000
Annual Costs Qty Unit Base Cost Present Value
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673
Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance 1 - 20 4 hrs $40.00 $3,112
DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112
Total Annual Costs $64,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 992 gal $4.50 $130,544
Electricity 1 - 20 400 kWh $0.25 $1,998
Total Energy Costs $133,000
$274,000
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June 7, 2012
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Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Administration Building
Pellet and Fuel Oil Boilers
Basis
20 Study Period (years) 6.60% Fuel Inflation
3.00% Nominal Discount Rate 3.00% Electricity Inflation
0.24% Real Discount Rate 2.75% Pellet Inflation
2.75% General Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Heating Plant
Demolition (assume no soil remediation)
Heating Plant 1 ea $5,000 $5,000
Fuel tank 1 ea $500 $500
62 MBH fuel oil boiler 1 ea $9,000 $9,000
Chimney 1 ea $1,600 $1,600
Heating pumps 1 ea $1,500 $1,500
Piping and appurtenances 1 ls $5,000 $5,000
DHW heat pump 1 ea $4,000 $4,000
Replace fuel system 1 ea $4,000 $4,000
Electrical 3 ea $600 $1,800
Pellet Boiler
Containerized 88 MBH pellet boiler, storage, pump, appurt 1 ea $50,000 $50,000
Installation: Pad 1 ea $2,500 $2,500
Piping to Bldg 1 ea $1,000 $1,000
Startup 1 ea $5,000 $5,000
Pellets 3.5 ton $373 $1,306
Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000
Accumulator tank 1 ea $2,500 $2,500
Piping and connection to primary loop 1 ea $4,000 $4,000
Electrical
Single phase electric load 4 ea $1,500 $6,000
Pellet boiler service 1 ea $6,000 $6,000
Controls $0
Lead/lag control 1 ea $20,000 $20,000
Contingencies
Estimating contingency 15% $20,206
Haines locality factor 30% $46,473
Overhead & profit 30% $46,473
Design fees 10% $24,786
Project management 10% $27,264
Total Construction Costs $300,000
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June 7, 2012
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Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Administration Building
Pellet and Fuel Oil Boilers
June 7, 2012
Annual Costs Qty Unit Base Cost Present Value
Wood Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229
Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350
Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233
Parts Allowance 1 - 20 1 LS $250.00 $4,863
Fuel Oil Boiler Maintenance
Monthly: 1 hours per month 1 - 20 12 hrs $40.00 $9,336
Annual: 8 hours, 1x per year 1 - 20 8 hrs $40.00 $6,224
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance, 4 hrs ea 1 - 20 12 hrs $40.00 $9,336
Glycol tank and pump 1 - 20 2 hrs $40.00 $1,556
DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112
Total Annual Costs $167,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 99 gal $4.50 $13,054
Pellets 1 - 20 9.0 tons $373.00 $65,455
Electricity 1 - 20 2,174 kWh $0.25 $10,869
Total Energy Costs $89,000
$556,000
Years
Years
Present Worth
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
Haines Public Library
Summary
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.6% Fuel Inflation
0.2% Real Discount Rate 3.0% Electricity Inflation
2.75% Pellet Inflation
Results
Construction Annual Energy Total % of Base
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 -
Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 147%
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $504,000 $565,000 -
Pellet and Fuel Oil Boilers $319,000 $157,000 $273,000 $749,000 133%
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $357,000 $418,000 -
Pellet and Fuel Oil Boilers $319,000 $157,000 $258,000 $734,000 176%
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 -
Pellet and Fuel Oil Boilers $319,000 $157,000 $298,000 $774,000 157%
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 -
Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 147%
June 7, 2012
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Haines Public Library
Annual Energy Requirements
Sizing Analysis
Design Heating Load, Estimated BTUH/sqft sqft MBH
30 7,040 211
Existing Boilers Boiler MBH
B-1 448
Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH
Wood 211 70% 148 148
B-1 211 212% 448 0
Total 596 148
% Design 282% 70%
Annual Heating Load
Fuel Oil Use Year Gallons
2010 3,240
2011 3,270
Average 3,260
Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU
3,260 138.5 68% 307,027
Status Quo: Fuel Oil Boilers
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
307,027 100% 307,027 68% 138.5 3,260
Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh
35 20 12 12 0.06 70% 596
Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag)
Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons
307,027 90% 276,324 70% 15,560 26.0 0% 26.0
Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
307,027 10% 30,703 70% 138.5 317
Electric Loads Load Ave GPM Head bhp η Hours kWh
Boiler pump 12 12 0.06 70% 8,760 596
HX Pump 12 8 0.04 70% 8,760 397
Silo Auger 0.50 70% 500 266
Feed Auger 0.25 70% 3,500 933
Induction Fan 0.25 89% 3,500 733
2,925
June 7, 2012
Page 2
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Public Library
Status Quo: Fuel Oil Boiler
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.00% Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Existing Heating Plant
Retain existing boiler 1 ea $0 $0
Contingencies
Estimating contingency 15% $0
Haines locality factor 30% $0
Overhead & profit 30% $0
Design fees 10% $0
Project management 10% $0
Total Construction Costs $0
Annual Costs Qty Unit Base Cost Present Value
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673
Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance 1 - 20 4 hrs $40.00 $3,112
Total Annual Costs $61,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 3,260 gal $4.50 $429,149
Electricity 1 - 20 596 kWh $0.25 $2,978
Total Energy Costs $432,000
$493,000
0
Present Worth
June 7, 2012
Year
0
Years
0
0
Years
0
0
Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Public Library
Pellet and Fuel Oil Boilers
Basis
20 Study Period (years) 6.60% Fuel Inflation
3.00% Nominal Discount Rate 3.00% Electricity Inflation
0.24% Real Discount Rate 2.75% Pellet Inflation
2.75% General Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Existing Heating Plant
Convert to primary/secondary 1 ea $6,000 $6,000
Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000
Accumulator tank 1 ea $4,000 $4,000
Piping and connection to primary loop 1 ea $4,000 $4,000
Pellet Boiler
Containerized 148 MBH pellet boiler, storage, pump, appurt 1 ea $67,000 $67,000
Installation: Concrete Pad 1 ea $3,000 $3,000
Piping to Bldg 1 ea $1,200 $1,200
Pellets 9.5 ton $373 $3,544
Startup 1 ea $5,000 $5,000
Heat exchanger, pump, glycol pump, and piping 1 ea $5,000 $5,000
Accumulator tank 1 ea $4,000 $4,000
Piping and connection to primary loop 1 ea $6,000 $6,000
Electrical
Electric - single phase load 3 ea $1,500 $4,500
Pellet boiler service 1 ea $6,000 $6,000
Controls $0
Lead/lag control 1 ea $20,000 $20,000
Contingencies
Estimating contingency 15% $21,487
Haines locality factor 30% $49,419
Overhead & profit 30% $49,419
Design fees 10% $26,357
Project management 10% $28,992
Total Construction Costs $319,000
June 7, 2012
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Public Library
Pellet and Fuel Oil Boilers
June 7, 2012
Annual Costs Qty Unit Base Cost Present Value
Wood Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229
Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350
Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233
Parts Allowance 1 - 20 1 LS $250.00 $4,863
Fuel Oil Boiler Maintenance
Monthly: 1 hours per month 1 - 20 12 hrs $38.50 $8,986
Annual: 8 hours, 1x per year 1 - 20 8 hrs $38.50 $5,991
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance 1 - 20 4 hrs $40.00 $3,112
Glycol tank and pump 1 - 20 2 hrs $40.00 $1,556
Total Annual Costs $157,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 340 gal $4.50 $44,758
Pellets 1 - 20 26.0 tons $373.00 $189,092
Electricity 1 - 20 2,925 kWh $0.25 $14,624
Total Energy Costs $248,000
$724,000Present Worth
Years
Years
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
Vocational Education Building
Summary
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.6% Fuel Inflation
0.2% Real Discount Rate 3.0% Electricity Inflation
3.60% Pellet Inflation
Results
Construction Annual Energy Total % of Base
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 -
Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000 179%
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $182,600 $311,700 -
Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 200%
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $67,500 $63,900 $182,600 $314,000 -
Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 198%
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 -
Pellet and Fuel Oil Boilers $312,000 $165,000 $166,000 $643,000 184%
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 -
Pellet and Fuel Oil Boilers $312,000 $165,000 $139,000 $616,000 176%
June 7, 2012
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Vocational Education Building
Annual Energy Requirements
Sizing Analysis
Design Heating Load, Estimated BTUH/sqft sqft MBH
25 5,000 125
Existing Boilers Boiler MBH
B-1 190
Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH
Wood 125 70% 88 88
B-1 190 70% 133 0
Total 221 88
% Design 176% 70%
Annual Heating Load
Fuel Oil Use Year Gallons
2010 1,705
2011 1,787
Average 1,750
Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU
1,750 138.5 68% 164,815
Status Quo: Fuel Oil Boilers
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
164,815 100% 164,815 72% 138.5 1,653
Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh
19 20 6 25 0.07 70% 666
Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag)
Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons
164,815 90% 148,334 70% 15,560 14.0 0% 14.0
Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
164,815 10% 16,482 70% 138.5 170
Electric Loads Load Ave GPM Head bhp η Hours kWh
Boiler Pump 6 25 0.07 70% 8,760 666
HX Pump 6 15 0.04 70% 8,760 400
Silo Auger 0.50 70% 500 266
Feed Auger 0.25 70% 3,500 933
Induction Fan 0.25 89% 3,500 733
2,998
June 7, 2012
Page 2
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Vocational Education Building
Status Quo: Fuel Oil Boiler
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.00% Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Heating Plant
Demolish heating plant 1 ea $5,000 $5,000
190 MBH fuel oil boiler 1 ea $10,500.00 $10,500
Chimney 1 ea $1,600.00 $1,600
Heating pumps 1 ea $2,000.00 $2,000
Piping and appurtenances 1 ls $5,000.00 $5,000
DHW heat pump 1 ea $4,000.00 $4,000
Electrical 2 ea $600.00 $1,200
Contingencies
Estimating contingency 15% $4,395
Haines locality factor 30% $10,108.50
Overhead & profit 30% $10,108.50
Design fees 10% $5,391.20
Project management 10% $5,930.32
Total Construction Costs $65,200
Annual Costs Qty Unit Base Cost Present Value
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673
Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance 1 - 20 4 hrs $40.00 $3,112
DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112
Total Annual Costs $63,900
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 1,653 gal $4.50 $217,573
Electricity 1 - 20 666 kWh $0.25 $3,330
Total Energy Costs $220,900
$350,000
June 7, 2012
Year
0
0
0
0
0
0
Present Worth
0
0
Years
0
0
Years
0
0
Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Vocational Education Building
Pellet and Fuel Oil Boilers
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.00% Electricity Inflation
3.60% Pellet Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Heating Plant
Demolish heating plant 1 ea $5,000 $5,000
133 MBH fuel oil boiler 1 ea $10,000 $10,000
Chimney 1 ea $1,600 $1,600
Heating pumps 1 ea $1,500 $1,500
Piping and appurtenances 1 ls $5,000 $5,000
DHW heat pump 1 ea $4,000 $4,000
Electrical 3 ea $600 $1,800
Pellet Boiler
Containerized 88 MBH pellet boiler, storage, pump, appurt 1 ea $55,000 $55,000
Installation: Concrete Pad 1 ea $2,500 $2,500
Piping to Bldg 1 ea $1,000 $1,000
Startup 1 ea $5,000 $5,000
Pellets 3.5 ton $373 $1,306
Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000
Accumulator tank 1 ea $2,500 $2,500
Piping and connection to primary loop 1 ea $4,000 $4,000
Electrical
Single phase loads 4 ea $1,500 $6,000
Pellet boiler service 1 ea $10,000 $10,000
Controls $0
Lead/lag control 1 ea $20,000 $20,000
Contingencies
Estimating contingency 15% $21,030.83
Haines locality factor 30% $48,370.90
Overhead & profit 30% $48,370.90
Design fees 10% $25,797.81
Project management 10% $28,377.59
Total Construction Costs $312,000
0
0
0
0
0
0
0
0
June 7, 2012
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Vocational Education Building
Pellet and Fuel Oil Boilers
June 7, 2012
Annual Costs Qty Unit Base Cost Present Value
Wood Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229
Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350
Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233
Parts Allowance 1 - 20 1 LS $250.00 $4,863
Fuel Oil Boiler Maintenance
Monthly: 1 hours per month 1 - 20 12 hrs $38.50 $8,986
Annual: 8 hours, 1x per year 1 - 20 8 hrs $38.50 $5,991
Parts Allowance 1 - 20 1 LS $150.00 $2,918
Pump Maintenance 1 - 20 12 hrs $40.00 $9,336
DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112
Total Annual Costs $165,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 170 gal $4.50 $22,379
Pellets 1 - 20 14.0 tons $373.00 $111,070
Electricity 1 - 20 2,998 kWh $0.25 $14,990
Total Energy Costs $148,000
$625,000
Years
Years
Present Worth
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
Haines School and Pool Wood Heating Analysis
Summary
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.6% Fuel Inflation
0.2% Real Discount Rate 3.0% Electricity Inflation
3.60% Pellet Inflation
Results
Construction Annual Energy Total % of Base
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 -
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000 104%
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,931,000 $6,066,000 -
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,261,400 $5,526,400 91%
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $4,198,000 $4,333,000 -
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,088,100 $5,353,100 124%
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 -
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,581,800 $5,846,800 112%
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 -
Pellet and Fuel Oil Boilers $1,917,000 $348,000 $2,963,300 $5,228,300 100%
June 7, 2012
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Haines School and Pool Wood Heating Analysis
Annual Energy Requirements
Sizing Analysis
Design Heating Load, Estimated BTUH/sqft sqft MBH
39 94,612 3,690
Existing Boilers Boiler MBH Firm
B-1 1,632 1,632
B-2 1,632 1,632
B-3 1,632
4,896 3,264
Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH
Wood 3,690 35% 1,291 1,291
Wood 3,690 35% 1,291 1,291
B-1 1,632 100% 1,632 1,632
B-2 1,632 100% 1,632
Total 5,847 4,215
% Design 158% 114%
Annual Heating Load
Fuel Oil Use Year Gallons
2011 38,522
2012 38,241
Average 38,380
Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU
38,380 138.5 68% 3,614,628
Status Quo: Fuel Oil Boilers
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
3,614,628 100% 3,614,628 68% 138.5 38,380
Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh
413 20 103 20 0.95 91% 6,809
Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag)
Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Bldg Loss tons
3,614,628 90% 3,253,166 68% 15,560 308 5% 323
Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
3,614,628 10% 361,463 68% 138.5 3,838
Electric Loads Load Ave GPM Head bhp η Hours kWh
Boiler pump 103 30 1.42 91% 8,760 10,214
HX Pump 103 15 0.71 91% 8,760 5,107
Silo Auger 0.50 70% 1,000 533
Feed Auger 0.25 70% 7,800 2,078
Induction Fan 0.5 89% 7,800 3,269
21,201
June 7, 2012
Page 2
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines School and Pool Wood Heating Analysis
Status Quo: Fuel Oil Boiler
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.00% Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Existing Heating Plant
Retain existing heating plant 1 ea $0.00 $0
Contingencies
Estimating contingency 15% $0
Haines locality factor 30% $0
Overhead & profit 30% $0
Design fees 10% $0
Project management 10% $0
Total Construction Costs $0
Annual Costs Qty Unit Base Cost Present Value
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Monthly: 2 hours per month 1 - 20 72 hrs $40.00 $56,018
Annual: 8 hours, 2x per year 1 - 20 48 hrs $40.00 $37,345
Parts Allowance 1 - 20 3 LS $150.00 $8,753
Pump Maintenance 1 - 20 12 hrs $40.00 $9,336
Total Annual Costs $135,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 38,380 gal $4.50 $5,052,373
Electricity 1 - 20 6,809 kWh $0.25 $34,047
Total Energy Costs $5,086,000
$5,221,000
0
Present Worth
June 7, 2012
Year
0
Years
0
0
Years
0
0
Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines School and Pool Wood Heating Analysis
Pellet and Fuel Oil Boilers
Basis
20 Study Period (years) 6.60% Fuel Inflation
3.00% Nominal Discount Rate 3.00% Electricity Inflation
0.24% Real Discount Rate 3.60% Pellet Inflation
2.75% General Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Existing Heating Plant
Disable fuel oil boiler: 1 of 3 1 ea $1,000.00 $1,000
Pellet Boiler
Site Work
Site survey, building site work 1 ls $25,000 $25,000
Water service, paving repair 50 lnft $200 $10,000
Sanitary sewer, paving repair 50 lnft $200 $10,000
Building
Building: 30'x20' 600 sqft $300 $180,000
Service sink, cold water, DWH heater 1 ls $15,000 $15,000
Waste piping 1 ls $10,000 $10,000
Heating piping, unit heater 1 ls $15,000 $15,000
Ventilating unit with controls 4,000 cfm $6 $24,000
1,300 MBH pellet boiler w/ scrubbers and augers 2 ea $147,000 $294,000
Pellet silo 1 LS $40,000.00 $40,000
Pellets 20 tons $373.00 $7,460
Chimney 2 ea $8,000 $16,000
Accumulator tank 1 ea $12,000 $12,000
Boiler pumps, piping, glycol system 1 ea $25,000 $25,000
Startup 1 ea $6,500 $6,500
Piping to Bldg 100 lnft $350 $35,000
Electrical
Electric service to Building 1 ls $23,000 $23,000
Panelboard 1 ls $9,000 $9,000
Lighting 1 ls $7,500 $7,500
Receptacles and circuiting 1 ls $3,000 $3,000
Single-phase Electrical 4 ls $1,500 $6,000
Three-phase electrical 4 ls $3,500 $14,000
Controls
Boiler lead/lag control 1 ea $40,000.00 $40,000
Boiler pump control 1 ea $10,000.00 $10,000
School Boiler Room
Heat exchanger, pump, and piping connection to primary loop 1 ea $15,000 $15,000
Three-phase electrical 1 ls $7,500 $7,500
Contingencies
Estimating contingency 15% $129,144
Haines locality factor 30% $297,031
Overhead & profit 30% $297,031
Design fees 10% $158,417
Project management 10% $174,258.30
Total Construction Costs $1,917,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
June 7, 2012
Year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines School and Pool Wood Heating Analysis
Pellet and Fuel Oil Boilers
June 7, 2012
Annual Costs Qty Unit Base Cost Present Value
Wood Boiler Maintenance
Daily: 10 minutes per day 1 - 20 61 hrs $40.00 $47,330
Weekly: 30 minutes per week, ea 1 - 20 52 hrs $40.00 $40,457
Monthly: 2 hours per month, ea 1 - 20 48 hrs $110.00 $102,700
Annual: 8 hours, 2x per year, ea 1 - 20 32 hrs $110.00 $68,467
Parts Allowance 1 - 20 2 LS $250.00 $9,725
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665
Monthly: 1 hours per month 1 - 20 24 hrs $40.00 $18,673
Annual: 8 hours, 1x per year 1 - 20 16 hrs $40.00 $12,448
Parts Allowance 1 - 20 2 LS $150.00 $5,835
Pump Maintenance 1 - 20 24 hrs $40.00 $18,673
Total Annual Costs $348,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 3,838 gal $4.50 $505,237
Pellets 1 - 20 323.4 tons $373.00 $2,565,718
Electricity 1 - 20 21,201 kWh $0.25 $106,006
Total Energy Costs $3,177,000
$5,442,000
Years
Years
Present Worth
Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 jim@alaskaenergy.us
Haines Borough District Wood Heating System
Summary
Basis
20 Study Period (years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.6% Fuel Inflation
2.4% Real Discount Rate 3.0% Electricity Inflation
3.60% Pellet Inflation
Results
Construction Annual Energy Total % of Base
Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 -
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000 108%
High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $6,825,000 $7,302,000 -
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,144,000 $6,846,000 94%
Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $4,832,000 $5,309,000 -
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,062,000 $6,764,000 127%
High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 -
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,492,000 $7,194,000 114%
Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation
Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 -
Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $2,899,000 $6,601,000 104%
June 7, 2012
Page 1
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Vocational Education Building
Annual Energy Requirements
Sizing Analysis
Wood Boiler Sizing Building Design MBH Factor Size, MBH GPM Pipe
Admin 88 70% 62 9 1-1/2
Library 211 70% 148 22 1-1/2
School 3,690 70% 2,583 369 6
Voc-Ed 125 70% 88 13 1-1/2
4,115 Total 2,880 413 6
% Design 70%
Annual Heating Load
Buildings
Building Load, kBtu
Admin 98,889
Library 307,027
School 3,614,628
Voc-Ed 164,815
4,185,359
Distribution Losses
Serve Size Length Loss, Btuh/sqft Loss, kBtu
CHP to HS 6 300 26 68,328
HS to VocEd 1-1/2 700 12 73,584
CHP to Library 2-1/2 2,200 14 269,808
Lib to Admin 1-1/2 320 12 33,638
445,358 11%
Heating Load, kBTU Load, kBTU
4,630,718
Status Quo: Fuel Oil Boilers
Building Fuel, gal Elect, kWh
Admin 992 400
Library 3,260 596
School 38,241 6,809
Voc-Ed 1,653 666
44,145 8,471
June 7, 2012
Page 2
Alaska Energy Engineering LLC CALCULATIONS
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@earthlink.net
Vocational Education Building
Annual Energy Requirements
June 7, 2012
Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag)
Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons
4,630,718 95% 4,399,182 68% 15,560 416
Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals
4,630,718 5% 231,536 68% 138.5 2,458
Pumping System Ave MBH ΔT Ave GPM Head bhp η kWh
Pri Pumps 207 18 1.71 91% 12,268
Dist Pumps 529 20 136 55 3.45 91% 24,741
Bldg Pumps 8,471
HP η Hours
Silo Auger 0.50 70% 2,000 1,066
Feed Auger 0.25 70% 8,760 2,334
Induction Fan 0.5 89% 8,760 3,671
52,550
Electric Loads Load Number GPM Head bhp η kW
Pri Pumps 1 413 18 3.42 89% 2.9
Sec Pumps 2 413 55 10.44 89% 17.5
Silo Auger 1 0.50 70% 0.5
Feed Auger 2 0.25 70% 0.5
Induction Fan 2 0.5 89% 0.8
22.3
Page 3
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Borough District Wood Heating System
Status Quo: Fuel Oil Boiler
Basis
20 Study Period (years) 2.75% General Inflation
3.00% Nominal Discount Rate 6.60% Fuel Inflation
0.24% Real Discount Rate 3.0% Electricity Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Admin Heating Plant
Remove heating plant 1 ea $5,000 $5,000
Remove fuel tank, assume no remediation 1 ea $500 $500
62 MBH fuel oil boiler 1 ea $9,000.00 $9,000
Chimney 1 ea $1,600.00 $1,600
Heating pumps 2 ea $1,500.00 $3,000
Piping and appurtenances 1 ls $5,000.00 $5,000
DHW heat pump 1 ea $4,000.00 $4,000
Replace fuel system 1 ea $4,000.00 $4,000
Electrical 3 ea $1,500.00 $4,500
Replace Voc-Ed Heating Plant
Demolish heating plant 1 ea $5,000 $5,000
150 MBH fuel oil boiler 1 ea $10,000.00 $10,000
Chimney 1 ea $1,600.00 $1,600
Heating pumps 1 ea $2,000.00 $2,000
Piping and appurtenances 1 ls $5,000.00 $5,000
DHW heat pump 1 ea $4,000.00 $4,000
Electrical 2 ea $1,500.00 $3,000
Contingencies
Estimating contingency 15% $10,080
Haines locality factor 30% $23,184
Overhead & profit 30% $23,184
Design fees 10% $12,364.80
Project management 10% $13,601.28
Total Construction Costs $150,000
Annual Costs Qty Unit Base Cost Present Value
Fuel Oil Boiler Maintenance
Daily: 5 minutes per day, ea 1 - 20 122 hrs $40.00 $94,660
Monthly: 2 hours per month, ea 1 - 20 144 hrs $40.00 $112,036
Annual: 8 hours, 2x per year, ea 1 - 20 96 hrs $40.00 $74,691
Parts Allowance 1 - 20 6 LS $150.00 $17,506
Pump Maintenance 1 - 20 24 hrs $40.00 $18,673
DHW heat pump maintenance 1 - 20 12 hrs $40.00 $9,336
Total Annual Costs $327,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 44,145 gal $4.50 $5,811,340
Electricity 1 - 20 8,471 kWh $0.25 $42,353
Total Energy Costs $5,854,000
$6,331,000
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June 7, 2012
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Page 4
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Borough District Wood Heating System
Pellet Plant and Fuel Oil Boilers
Basis
20 Study Period (years) 2.75% General Inflation
5.25% Nominal Discount Rate 6.60% Fuel Inflation
2.43% Real Discount Rate 3.00% Electricity Inflation
3.60% Pellet Inflation
Construction Costs Qty Unit Base Cost Year 0 Cost
Replace Heating Plant
Admin Bldg
Demolition (assume no soil remediation)
Heating Plant 1 ea $5,000 $5,000
Fuel tank, aboveground 1 ea $500 $500
106 MBH fuel oil boiler 1 ea $9,000.00 $9,000
Heating pumps 2 ea $1,500.00 $3,000
Piping and appurtenances 1 ls $8,000.00 $8,000
DHW heat pump 1 ea $4,000.00 $4,000
Replace fuel system 1 ea $6,000.00 $6,000
Vocational Education
Demolish heating plant 1 ea $5,000 $5,000
106 MBH fuel oil boiler 1 ea $9,000.00 $9,000
Heating pumps 2 ea $1,500.00 $3,000
Piping and appurtenances 1 ls $8,000.00 $8,000
DHW heat pump 1 ea $4,000.00 $4,000
District Heat Plant
Site Work
Site survey, building site work 1 ls $25,000 $25,000
Water service, paving repair 50 lnft $200 $10,000
Sanitary sewer, paving repair 50 lnft $200 $10,000
Building
Building: 30'x20' 600 sqft $250 $150,000
Service sink, cold water, hot water, DHW heater 1 ls $15,000 $15,000
Waste piping 1 ls $10,000 $10,000
Heating piping, Unit Heater 1 ls $10,000 $10,000
Ventilating unit with controls 4,000 cfm $6 $24,000
Heating Plant
1,300 MBH pellet boiler w/ augers 2 ea $147,000 $294,000
Pellet silo, 20 tons 1 LS $40,000.00 $40,000
Pellets 20 tons $360.00 $7,200
Chimney 2 ea $8,000 $16,000
Accumulator tank 1 ea $12,000 $12,000
Boiler pumps, piping, glycol system 1 ea $27,500 $27,500
Startup 1 ea $6,500 $6,500
Distribution pumps, piping, appurtenances 1 ea $20,000 $20,000
Controls 1 ea $40,000 $40,000
Controls
Boiler lead/lag control 1 ea $40,000.00 $40,000
Boiler pump control 1 ea $10,000.00 $10,000
Distribution pump controls 1 ea $15,000.00 $15,000
Energy meters 2 ea $2,000.00 $4,000
0
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June 7, 2012
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Page 5
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Borough District Wood Heating System
Pellet Plant and Fuel Oil Boilers
June 7, 2012
Construction Costs Qty Unit Base Cost Year 0 Cost
Electrical
Electric service to Building 1 ls $23,000 $23,000
Panelboard 1 ls $9,000 $9,000
Lighting 1 ls $7,500 $7,500
Receptacles and circuiting 1 ls $3,000 $3,000
Single-phase Electrical 4 ls $1,500 $6,000
Three-phase electrical 4 ls $3,500 $14,000
Distribution System
Plant to HS
Direct bury piping to boiler room; two @ 6" 150 lnft $350.00 $52,500
Piping to heat exchanger 1 ls $5,000.00 $5,000
Heat exchanger and primary pump 1 ls $30,000.00 $30,000
Primary pump and piping to building connection 1 ls $12,000.00 $12,000
High School to Voc-Ed
Indoor piping 100 lnft $40 $4,000
Buried piping 250 lnft $175 $43,750
Piping to heat exchanger 1 ls $2,000.00 $2,000
Heat exchanger and primary pump 1 ls $6,000.00 $6,000
Primary pump and piping to building connection 1 ls $3,500.00 $3,500
Plant to Library $0
Buried piping 1,100 lnft $225 $247,500
Piping to heat exchanger 1 ls $2,500.00 $2,500
Heat exchanger and primary pump 1 ls $7,000.00 $7,000
Primary pump and piping to building connection 1 ls $4,000.00 $4,000
Library to Admin $0
Buried piping 160 lnft $175 $28,000
Increase boiler room size 50 sqft $100 $5,000
Piping to heat exchanger 1 ls $2,000.00 $2,000
Heat exchanger and primary pump 1 ls $6,000.00 $6,000
Primary pump and piping to building connection 1 ls $3,500.00 $3,500
Controls $0
Admin Bldg 1 ea $20,000.00 $20,000
Library 1 ea $20,000.00 $20,000
School//Pool 1 ea $25,000.00 $25,000
Vocational Education 1 ea $20,000.00 $20,000
Contingencies
Estimating contingency 20% $292,490
Haines locality factor 30% $526,482
Overhead & profit 30% $526,482
Design fees 10% $280,790
Project management 10% $308,869
Total Construction Costs $3,398,000
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Page 6
Alaska Energy Engineering LLC Life Cycle Cost Analysis
25200 Amalga Harbor Road Tel/Fax: 907.789.1226
Juneau, Alaska 99801 alaskaenergy@gci.net
Haines Borough District Wood Heating System
Pellet Plant and Fuel Oil Boilers
June 7, 2012
Annual Costs Qty Unit Base Cost Present Value
Wood Boiler Maintenance
Daily: 10 minutes per day 1 - 20 61 hrs $40.00 $37,268
Weekly: 30 minutes per week, ea 1 - 20 52 hrs $40.00 $31,856
Monthly: 2 hours per month, ea 1 - 20 48 hrs $110.00 $80,866
Annual: 8 hours, 2x per year, ea 1 - 20 32 hrs $110.00 $53,911
Parts Allowance 1 - 20 2 LS $250.00 $7,658
Fuel Oil Boiler Maintenance
Monthly: 1 hours per month 1 - 20 60 hrs $40.00 $36,757
Annual: 8 hours, 1x per year 1 - 20 40 hrs $40.00 $24,505
Parts Allowance 1 - 20 5 LS $150.00 $11,487
Pump Maintenance 1 - 20 32 hrs $40.00 $19,604
Total Annual Costs $304,000
Energy Costs Qty Unit Base Cost Present Value
Fuel Oil 1 - 20 2,458 gal $4.50 $253,625
Pellets 1 - 20 416.0 tons $373.00 $2,639,847
Electricity 1 - 20 52,550 kWh $0.25 $211,042
Total Energy Costs $3,105,000
$6,807,000
Years
Present Worth
Years
Page 7
Appendix C
Equipment Specifications
Haines Borough Wood Heating Study 1 Equipment Specifications
WOOD PELLET BOILERS – SMALL CAPACITY
PART 1 - PRODUCTS
1.1 DESCRIPTION
A. Boiler: ASME certified, hydronic pellet fired wood boiler packaged assembly in container
with automatic fuel supply, stainless steel combustion chamber with three way ash removal,
automatic cleaning system, integrated ash box with automatic ash compression system, and
fully automated digital controls. Chimney of high grade stainless steel with double wall
construction. Assembly pre-installed.
B. Pellet Store Room: Dust proof, sloping floor with augers and self-feeding vacuum pellet
distribution.
C. Container: Durable timber construction with triple laminated sections, 1-hour rated, totally
enclosed with separate boiler and pellet storage compartment. Double access doors with keyed
entry lever entry. with heavy duty solid brass and ball bearing hinge Floor and ceiling of
boiler room with aluminum diamond plate surface. Roof completely wrapped with ice and
water shield. Roof to be galvanized steel material capable of minimum 70 lbs per sq. ft. snow
load. Pellet access doors to be insulated aluminum, keyed, and minimum of 3 ft x 3 ft. size.
D. Foundation: Reinforced concrete pad 6 inches thick.
E. Installation: Trained and licensed by boiler manufacturer.
1.2 OUTPUT CAPACITIES
A. Admin Building: 62 MBH
B. Voc-Ed Building: 88 MBH
C. Library: 148,000 MBH
1.3 FUEL DELIVERY (INTERNAL TO CONTAINER)
A. Admin Building and Voc-Ed Building: Auger delivery.
B. Library: Vacuum suction with flexible tubing
1.4 FUEL STORAGE CAPACITIES
A. Admin Building: 3.5 tons.
B. Voc-Ed Building: 5.0 tons
C. Library: 9.5 tons.
1.5 HEATING WATER CONNECTIONS
A. 1-1/2 inch supply and return.
1.6 ELECTRICAL REQUIREMENTS
A. 208 volt, 6 amps. Minimum 60 amp circuit.
Haines Borough Wood Heating Study 2 Equipment Specifications
1.7 MONITORING
A. Remote monitoring via web based interface.
B. User can remotely see key boiler functions and error messages.
1.8 WARRANTY
A. Warranty is 5 years on the ASME Stamped Boiler Vessel and 2 years on all other parts and
pieces of the boiler.
B. Warranty does not include labor and but may be extended via the local dealer.
1.9 CERTIFIED DEALERS:
A. The Plumbing and Heating Company in Juneau 907-789-3332
B. Schmolck Mechanical Contractors - Ketchikan Alaska - 907-225-6648
1.10 STARTUP, COMMISSIONING, AND TRAINING
A. Start-up, commissioning and training provided by Certified Dealer.
1.11 REFERENCES:
A. Ken Coville - Superintendent School Admin. District 74, Anson, ME - (207) 635-2727 Ext 1
B. City of Gardiner Maine - Chuck Applebee - (207) 582-4408
C. Town of Marshfield, Vermont - 802-426-3305
1.12 FINANCING
A. Financing is not available directly from the company.
End of Section
Haines Borough Wood Heating Study 3 Equipment Specifications
WOOD BOILERS - MEDIUM CAPACITY
PART 1 - PRODUCTS
1.1 DESCRIPTION
A. Boiler: ASME certified, hydronic pellet fired wood boiler packaged assembly consisting of
stainless steel combustion chamber, heat exchanger, control panel and fuel storage and delivery
system.
B. Components: Additional components include Intermediate fuel storage bin, agitator to prevent
fuel bridging, emergency extinguishing system, ignition blower, primary, secondary and
tertiary blower motors all with VFD’s, burner ring for primary gasification zone, rotating ash
grate, secondary and tertiary introduction rings, ash collection bin, double insulated heat
exchanger, rotating tabulators, and cyclone precipitator with industrial utility type exhaust fan
controlled by VFD. Chimney of high grade stainless steel with double wall construction.
Assembly pre-installed.
C. Fuel Delivery System: Bin conveying auger and auger channel with back burn preventing flap
valve at the boiler.
D. Fuel Storage: 20 ton silo with hopper bottom and top loading port. OSHA approved ladder
access. Silo mounted on reinforced concrete pad 6 inches thick.
E. Installation: Trained and licensed by boiler manufacturer.
1.2 OUTPUT CAPACITIES
A. High School/Pool: Two boilers at 1,300 MBH
B. District Plant: Two boilers at 1,450 MBH
1.3 HEATING WATER CONNECTIONS
A. Each boiler with 4-inch supply and return.
1.4 ELECTRICAL REQUIREMENTS
A. Each Boiler @ 208 volt, 30 amps. Minimum 60 amp circuit.
1.5 DIMENSIONS
A. High School/Pool: Each Boiler at 8’-10” long, 9’-3” long, 6’-6” high.
B. District Plant: Each Boiler at 9’-3” long, 9’-3” long, 6’-6” high.
1.6 MONITORING
A. Remote monitoring via web based interface.
B. User can remotely see key boiler functions and error messages. The boiler output temperature
can be remotely adjusted and the boiler can be turned on and off.
1.7 WARRANTY
A. 1 Year standard warranty with extended warranty available.
Haines Borough Wood Heating Study 4 Equipment Specifications
1.8 CERTIFIED DEALERS
A. None in Alaska. Installation and start-up typically done by ACT Bioenergy.
1.9 REFERENCES
A. David St. Onge, Senior Facilities Technician
The Wild Center, Natural History Museum of the Adirondacks
45 Museum Drive
Tupper Lake, NY 12986-9712
518-359-7800, ext. 118
dstonge@wildcenter.org
1.7 MMBtu (pellets)
B. Bill Hollywood - Onsite Maintenance of Federal Building
Total System Service
648 Mission Street Room 108
Ketchikan, Alaska 99901
(907) 220-9229
1.0 MMBtu (pellets)
C. John Culpepper, Director of Facilities North Country School
Lake Placid, NY
(518) 523-9329
1.4 MMBtu (chip/pellet)
1.10 STARTUP, TRAINING, COMMISISONING
A. Boiler pricing includes 3 days of on-site startup, commissioning support and training by an
ACT Bioenergy technician.
1.11 FINANCING
A. Financing not available directly from the company. The Company does work with
companies who do provide leasing for public and private sector customers.
End of Section