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HomeMy WebLinkAboutNew Stuyahok Biomass Heating System Final Report Coffman 07-26-2013-BIO Feasibility Assessment for Biomass Heating Systems New Stuyahok, Alaska 800 F Street, Anchorage, AK 99501 p (907) 276-6664 f (907) 276-5042 Tony SlatonBarker, PE, Lee Bolling, CEA, and David Nicolai, PE FINAL REPORT – 7/26/2013 Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. i Contents I. Executive Summary ............................................................................................................ 1 II. Introduction ...................................................................................................................... 2 III. Preliminary Site Investigation – Booster Club .................................................................... 3 BUILDING DESCRIPTION ................................................................................................................................................... 3 EXISTING HEATING SYSTEM .............................................................................................................................................. 3 DOMESTIC HOT WATER................................................................................................................................................... 3 BUILDING ENVELOPE ....................................................................................................................................................... 3 AVAILABLE SPACE ........................................................................................................................................................... 3 STREET ACCESS AND FUEL STORAGE ................................................................................................................................... 3 BUILDING OR SITE CONSTRAINTS ....................................................................................................................................... 4 BIOMASS SYSTEM INTEGRATION ........................................................................................................................................ 4 BIOMASS SYSTEM OPTIONS .............................................................................................................................................. 4 IV. Preliminary Site Investigation – Booster Club Offices ........................................................ 5 BUILDING DESCRIPTION ................................................................................................................................................... 5 EXISTING HEATING SYSTEM .............................................................................................................................................. 5 DOMESTIC HOT WATER................................................................................................................................................... 5 BUILDING ENVELOPE ....................................................................................................................................................... 5 AVAILABLE SPACE ........................................................................................................................................................... 5 STREET ACCESS AND FUEL STORAGE ................................................................................................................................... 5 BUILDING OR SITE CONSTRAINTS ....................................................................................................................................... 5 BIOMASS SYSTEM INTEGRATION ........................................................................................................................................ 6 BIOMASS SYSTEM OPTIONS .............................................................................................................................................. 6 V. Energy Consumption and Costs .......................................................................................... 7 WOOD ENERGY ............................................................................................................................................................. 7 ENERGY COSTS .............................................................................................................................................................. 7 EXISTING FUEL OIL CONSUMPTION .................................................................................................................................... 8 BIOMASS SYSTEM CONSUMPTION ..................................................................................................................................... 8 VI. Preliminary Cost Estimating .............................................................................................. 9 VII. Economic Analysis ......................................................................................................... 11 O&M COSTS .............................................................................................................................................................. 11 DEFINITIONS................................................................................................................................................................ 11 RESULTS ..................................................................................................................................................................... 13 SENSITIVITY ANALYSIS ................................................................................................................................................... 13 VIII. Forest Resource and Fuel Availability Assessments ....................................................... 14 FOREST RESOURCE ASSESSMENTS .................................................................................................................................... 14 AIR QUALITY PERMITTING .............................................................................................................................................. 14 IX. General Biomass Technology Information ....................................................................... 15 HEATING WITH WOOD FUEL ........................................................................................................................................... 15 TYPES OF WOOD FUEL .................................................................................................................................................. 15 HIGH EFFICIENCY CORD WOOD BOILERS ........................................................................................................................... 16 LOW EFFICIENCY CORD WOOD BOILERS ........................................................................................................................... 16 HIGH EFFICIENCY WOOD STOVES .................................................................................................................................... 17 Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. ii BULK FUEL BOILERS ...................................................................................................................................................... 17 GRANTS ..................................................................................................................................................................... 17 Appendices Appendix A – Site Photos Appendix B – Economic Analysis Spreadsheet Appendix C – Site Plan Appendix D – AWEDTG Field Data Sheet Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. iii Abbreviations ACF Accumulated Cash Flow ASHRAE American Society of Heating, Refrigeration, and Air-Conditioning Engineers AEA Alaska Energy Authority AFUE Annual Fuel Utilization Efficiency AHU Air Handling Unit ARCH Architectural B/C Benefit / Cost Ratio BAS Building Automation System BTU British Thermal Unit BTUH BTU per hour CCF One Hundred Cubic Feet CEI Coffman Engineers, Inc. CFM Cubic Feet per Minute CIRC Circulation CMU Concrete Masonry Unit CRAC Computer Room Air Conditioning CWCO Cold Weather Cut Out DDC Direct Digital Control ∆T Delta T (Temperature Differential) ECI Energy Cost Index ECM Energy Conservation Measure EF Exhaust Fan Eff Efficiency ELEC Electrical EPDM Ethylene Propylene Diene Monomer EUI Energy Utilization Index F Fahrenheit ft Feet GPM Gallons Per Minute HP Horsepower HPS High Pressure Sodium HVAC Heating, Ventilating, and Air-Conditioning IESNA Illuminating Engineering Society of North America in Inch(es) IPLC Integrated Power and Load Circuit IRC Internal Revenue Code kBTU One Thousand BTUs kWh Kilowatt-Hour LED Light-Emitting Diode MBH Thousand BTUs per Hour MECH Mechanical MH Metal Halide O&M Operations and Maintenance MMBTU One Million BTUs P Pump PC Project Cost PF Power Factor Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. iv R R-Value PH Phase SC Shading Coefficient SAT Supply Air Temperature SF Square Feet, Supply Fan TEMP Temperature U U-Value V Volts VFD Variable Frequency Drive W Watts Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. v List of Figures Fig. 1 – New Stuyahok, Alaska – Google Maps ............................................................................................. 2 Fig. 2 – New Stuyahok Buildings Evaluated – Google Maps ......................................................................... 2 List of Tables Table 1 – Economic Evaluation Summary ..................................................................................................... 1 Table 2 – Energy Comparison ....................................................................................................................... 7 Table 3 – Existing Fuel Oil Consumption ....................................................................................................... 8 Table 4 – Proposed Biomass System Fuel Consumption .............................................................................. 8 Table 5 – Estimate of Probable Costs for Booster Club ................................................................................ 9 Table 6 – Estimate of Probable Costs for Booster Club Office .................................................................... 10 Table 7 – Inflation rates .............................................................................................................................. 11 Table 8 – Economic Definitions ................................................................................................................... 12 Table 9 – Economic Analysis Results ........................................................................................................... 13 Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 1 I. Executive Summary A preliminary feasibility assessment was completed to determine the technical and economic viability of biomass heating systems at the Booster Club and Booster Club Office buildings in New Stuyahok, Alaska. The results of the economic evaluation for both buildings are shown below. It was found that installing two Tarm Solo 40 wood boilers at the Booster Club and one high efficiency wood stove at the Booster Club Office are economically justified, due to the fact that the benefit to cost ratio of each option is greater than 1.0. Economic Analysis Results Building Booster Club Booster Club Office Proposed Biomass System Two Tarm Solo 40 Wood Boilers Blaze King Classic High Efficiency Wood Stove Project Capital Cost ($159,566) ($12,887) Simple Payback 12.2 years 6.9 years Present Value of Project Benefits (20 year life) $731,392 $160,906 Present Value of Operating Costs (20 year life) ($360,797) ($109,630) Benefit / Cost Ratio of Project (20 year life) 2.32 3.98 Net Present Value (20 year life) $211,030 $38,389 Year Accumulated Cash Flow is Net Positive First Year First Year Year Accumulated Cash Flow > Project Capital Cost 9.0 years 5.8 years Table 1 – Economic Evaluation Summary Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 2 II. Introduction A preliminary feasibility assessment was completed to determine the technical and economic viability of biomass heating systems for the Booster Club in New Stuyahok, AK. The locations of the buildings are shown in Figures 1 and 2. Fig. 1 – New Stuyahok, Alaska – Google Maps Fig. 2 – New Stuyahok Buildings Evaluated – Google Maps Booster Club Office Booster Club Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 3 III. Preliminary Site Investigation – Booster Club Building Description The Booster Club is a 12,000 SF building built in 1979. It is a former Gymnasium, and it is a standalone building on the campus of the old, abandoned school. No renovations are currently planned for the space. It is used two to three times per month as a community gathering place throughout the year. No energy audit has been conducted at the building. The building heating and lighting is only turned on when the building is in use, otherwise it is allowed to be at ambient outdoor temperature. The heating system is only turned on in the building approximately five days per month. Existing Heating System The heating system of the building consists of two Toyotomi heating units (Model OM-180, 1.05 gal/hr fuel consumption, 148,000 btu/hr input), providing hot 50/50 propylene glycol/water for air handling units and ancillary unit heaters. Two air handlers provide ventilation and heating to the main gymnasium space. Storage and other ancillary spaces are heated with unit heaters. The heating system is maintained in operating order. One 550 gallon heating oil tank provides the oil for the boilers and the (out-of-order) water heater. The tank is located immediately outside the boiler room, underneath a weather shelter. No spill containment is present around the tank. Domestic Hot Water Domestic hot water is not currently in service to the building. Due to regular (planned) freezing of the building, domestic water is shut off to the building, and the Toyotomi water heater connected as a domestic water heater is not in service. Building Envelope The walls of the building are 2x8 wood stud construction that are estimated to have R-25 fiberglass batt insulation. The roof is a cold roof with a vented attic space, with an unknown amount and type of insulation because it could not be accessed. It is estimated that the roof insulation is R-35 fiberglass batt insulation, which is typical of buildings of this construction type and era. There are few windows in the building. All are double pane windows, however, some windows have one pane broken. The main entrance has an unheated arctic entry, and secondary and emergency exits are direct to outdoors. Available Space There is no space inside the building large enough or appropriate enough for a Garn or other wood boiler type system. An addition or a standalone building would be required for a wood boiler. Street Access and Fuel Storage The building is situated along a gravel road and a truck can easily access the front and sides of the building. There is adequate space around the building for a wood storage shed and/or wood boiler building. Brush may have to be removed and additional gravel may be necessary to situate the new structures. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 4 Building or Site constraints The site is at the bottom of a hill, and there is significant spring snowmelt pooling along the north side of the building. The ideal location for a standalone building would be across the street to the north, where no snowmelt pooling was observed. Regrading and additional gravel could be placed to eliminate drainage issues if it is desired to have new unit closer to the building. Biomass System Integration The building has a hydronic system for heating, making integration to a wood boiler a relatively straightforward task. However, due to the frequent shutdowns of the building, systems like a Garn would have difficulty restarting, would have increased maintenance costs, reduced efficiency and increased emissions. It is known that the two boilers provided, with input ratings of approximately 1.05 GPH each, provide adequate heating to the facility. Biomass System Options There are two options for incorporating biomass systems into the Booster Club: 1) two residential style wood boilers, such as a Tarm Solo, and 2) a wood boiler system in a detached building, such as a Garn Light Commercial system. Both systems would require a person to load and fire the wood heating systems by hand. A pair of small residential style wood boilers, such as a Tarm Solo, would be the cheapest and lowest tech option. The Tarm residential-style wood boiler would be easy to operate and would require minimal maintenance compared to a commercial style wood boiler system. The wood boiler would be used to provide a base heat load for the building during occupied times. Occupants would fire the boiler regularly to provide as much heating oil displacement as they wish. The existing Toyotomi boilers would still be used to make up for additional required heating as required and as system heaters during wood boiler start-up processes. For this study two Tarm Solo 40 wood boilers were evaluated, each with an output of 140,000 Btu/hr. Since the building regularly goes cold, the optional water thermal storage tank is not recommended. This is because it is not realistic to drain the thermal storage tank every time the building goes cold for freeze projection. The second option is a large wood fired boiler system, such as a Garn system, which will be more expensive. A Garn wood fired boiler can be loaded and fired in batches, which heats up a large volume of water for space heating. This allows a Garn wood fired boiler to be loaded less times throughout the day than a Tarm wood boiler, which would require a higher loading frequency. The wood fired boiler system would be located in a detached boiler building and heating pipes would be routed to the building. Pre-insulated heat pipes are typically installed below grade if the boiler building is a significant distance from the building to be heated. The downside of the Garn system is that it must be fired consistently to maintain proper water temperatures, making it a poor candidate for a building that is shut down and goes cold regularly. Starting a Garn system from a cold state requires that the Garn water tank be preheated by an auxiliary heat source (such as the building’s boilers) to increase the water temperature before the Garn can be fired. The Garn option was not evaluated in this study due to this factor. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 5 IV. Preliminary Site Investigation – Booster Club Offices Building Description The Booster Club Offices is a 1,200 SF one story building originally built in the mid-1990s. It is used as office space for the Booster Club staff. It has a kitchen, a gathering space, a mechanical space, and offices. It is used 4 to 5 days a week and occasional, incidental use on weekends. It is estimated the building is occupied between 32 and 40 hours a week. No energy audit has been conducted. Existing Heating System The building used to have an oil-fired boiler and baseboard heating; however the boiler room was destroyed in a recent fire. At the time of inspection, restoration and repairs from the fire damage was nearing completion. The heating system was in the process of being replaced with Toyo/Monitor space heaters. Historical fuel data may not accurately forecast future heating costs as a new system is not installed. Domestic Hot Water Domestic hot water was provided by an electric water heater prior to the fire. At the time of inspection, it was intended to install a new electric water heater. Building Envelope The walls of the building are 2x4 wood stud construction that are estimated to have R-12 fiberglass batt insulation. The roof is a cold roof with a vented attic space, with an unknown amount and type of insulation because it could not be accessed. It is estimated that the roof insulation is R-20 fiberglass batt insulation. The windows in the restored section are new double pane windows, and old double pane windows are present throughout the rest of the structure. There is a no arctic entry for the main entrance. Available Space There is space inside the building for one or several residential style wood stove(s). However, an addition would be needed to house any wood boiler systems. Street Access and Fuel Storage The building is situated along a gravel road and a truck can easily access the building. However, there is limited space around the sides and back of the structure which could make wood storage an issue. Wood storage may be able to be done on the east side of the building. Building or Site constraints The site is across the street to the north of the Booster Club. It is located near the bottom of the hill, and due to significant spring snowmelt pooling, access may be difficult until the end of breakup each year. It will be important to elevate any wood storage to ensure it is above the snowmelt pooling. Alternatively, additional gravel could be placed and regarding could be completed to alleviate this pooling issue. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 6 Biomass System Integration The building currently has no hydronic piping, boiler, or fin-tube baseboard. Thus, to implement a wood fired boiler system, new hydronic piping and baseboards would need to be installed. A residential style wood stove could easily be installed in the building. Biomass System Options There are two options for incorporating biomass systems into the Booster Club Offices: 1) A high efficiency wood stove, or 2) A high efficiency wood boiler system in a detached building. Both systems would require a person to load and fire the wood heating systems by hand. A small residential style wood stove would be the cheapest and lowest tech option. Wood heating with wood stoves is standard with most homes in New Stuyahok for auxiliary and back-up heating. The wood stove would be easy to operate and would require minimal maintenance compared to a wood boiler system. The wood stove would be used to provide a base heat load for the building during occupied times. Occupants would fire the stove regularly to provide as much heating oil displacement as they wish. The Toyo/Monitor stove would still be used to make up for additional required heating during occupied times and as base load heaters when the building is unoccupied. For this study, a Blaze King Classic high efficiency wood stove with an output of 48,065 BTU/hr for 12 hours was selected as the proposed biomass system to evaluate. The second option is a wood fired boiler system, which will be more expensive and require more maintenance than a wood stove. A wood fired boiler can be loaded and fired in batches, which heats up a large volume of water for space heating. This allows a wood fired boiler to be loaded less times throughout the day then a wood stove, which would need a higher loading frequency. The wood fired boiler system would be located in a detached boiler building and heating pipes would be routed to the building. Pre-insulated heat pipes are typically installed below grade if the boiler building is a significant distance from the building to be heated. The Booster Club Offices are close enough to the Booster Club that one central plant could serve both buildings; however that would require hydronic heat in the Offices. Due to the significant expense of retrofitting the office building with a hydronic system and the increased complexity of a wood boiler system, this option was not evaluated in this study. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 7 V. Energy Consumption and Costs Wood Energy The gross energy content of a cord of wood varies depending on tree species and moisture content. Black spruce, white spruce and birch at 20% moisture content have respective gross energy contents of 15.9 MMBTU/Cord, 18.1 MMBTU/cord and 23.6 MMBTU/cord, according to the UAF Cooperative Extension. Wet or greenwood has higher moisture contents and require additional heat to evaporate moisture before the wood can burn. Thus, wood with higher moisture contents will have lower energy contents. Seasoned or dry wood will typically have 20% moisture content. For this study, cord wood was estimated to have 16.0 MMBTU/cord. This is a conservativ e estimate based on the fact that the community has access to both spruce and birch. To determine the delivered $/MMBTU of the biomass system, a 75% efficiency for the high efficiency wood stoves and Tarm wood boilers was assumed. This is a conservative estimate based on manufacturer documentation. Energy Costs The high price of fuel oil is the main economic driver for the use of lower cost biomass heating. Fuel oil is shipped into New Stuyahok by barge and currently costs approximately $6.93/gal. For this study, the energy content of fuel oil is based on 134,000 BTU/gal, according to the UAF Cooperative Extension. Cord wood is sold in New Stuyahok for approximately $330 per cord. The table below shows the energy comparison of different fuel types. The system efficiency is used to calculate the delivered MMBTU’s of energy to the building. The delivered cost of energy to the building, in $/MMBTU, is the most accurate way to compare costs of different energy types. As shown below, cord wood is less than half the cost of fuel oil based on the $/MMBTU delivered to the building heat load. Fuel Type Units Gross BTU/unit System Efficiency $/unit Delivered $/MMBTU Cord Wood cords 16,000,000 75% $330 $27.50 Fuel Oil gal 134,000 80% $6.93 $64.65 Electricity kWh 3,413 99% $0.65 $192.37 Table 2 – Energy Comparison Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 8 Existing Fuel Oil Consumption Complete heating oil bills were not provided for the two New Stuyahok buildings. The heating oil consumption for each building was estimated based on interviews during the site visit and engineering estimates. According to Mr. Wassillie Gust Sr., the Booster Club building consumes approximately 4,500 gallons per year. It was estimated that the Booster Club Office consumes approximately 990 gallons per year. Building Name Fuel Type Avg. Annual Consumption Net MMBTU/yr Annual Fuel Cost New Stuyahok Booster Club Fuel Oil 4,500 gal 482.4 $31,185 New Stuyahok Booster Club Office Fuel Oil 990 gal 106.1 $6,861 Table 3 – Existing Fuel Oil Consumption Biomass System Consumption The Booster Club proposed biomass system is two Tarm Solo 40 wood boilers. For this study it is estimated that the proposed biomass system will offset 85% of heating oil consumption for the building. The remaining 15% of the heat for the building will come from the existing heating oil-fired boilers. The proposed biomass system for the Booster Club would have a total annual energy cost of $17,093. This annual energy cost includes wood and fuel oil costs, as well as the cost of the additional electricity required to operate the Tarm boiler heating system. It is estimated that 1,752 kWh annually will be required to operate the system pumps required by the Tarm system. The Booster Club Office proposed biomass is a high efficiency wood stove. While wood stoves are capable of providing the majority of the space heat for the building, a conservative estimate of 50% heating oil offset was used for the study. Due to the fact that the building is not occupied constantly and that the wood stoves are hand fired, a 50% heating oil offset is a realistic estimate for this study. If the building tenants wish to offset more heating oil, the wood stove can be fired on a more frequent schedule. Building Name Fuel Type % Heating Source Net MMBTU/yr Annual Consumption Energy Cost Total Energy Cost New Stuyahok Booster Club Cord Wood 85% 410.0 34.2 cords $11,276 $17,093 Fuel Oil 15% 72.4 675 gal $4,678 Electricity N/A N/A 1,752 kWh $1,139 New Stuyahok Booster Club Office Cord Wood 50% 53.1 4.4 cords $1,459 $4,890 Fuel Oil 50% 53.1 495 gal $3,430 Table 4 – Proposed Biomass System Fuel Consumption Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 9 VI. Preliminary Cost Estimating An estimate of probable costs was completed for the two proposed biomass systems: 1) installation of two Tarm Solo 40 wood boilers at the Booster Club and 2) installation of one Blaze King Classic high efficiency wood stove for the Booster Club Office. The estimate includes general conditions and overhead and profit for the general contractor. A 10% remote factor was used to account for increased shipping and installation costs in New Stuyahok. Engineering design and permitting was estimated at 15% and a 10% contingency was used. Estimate of Probable Costs for Booster Club Two Tarm Solo 40 Wood Boilers Category Description Unit Unit Cost Quantity Cost Wood Boilers Tarm Solo 40 Unit Job $ 12,885.00 2 $ 25,770 Shipping Job $ 5,000.00 1 $ 5,000 Installation Job $ 17,000.00 2 $ 34,000 $ 64,770 Interior Mechanical & Electrical HX, Piping & Materials Bldg $ 30,000.00 1 $ 30,000 Subtotal $ 30,000 Subtotal Material and Installation Cost $ 94,770 General Conditions 10% $ 9,477 Subtotal $ 104,247 Overhead and Profit 10% $ 10,425 Subtotal $ 114,672 Remote Factor 10% $ 11,467 Subtotal $ 126,139 Design Fees and Permitting 15% $ 18,921 Subtotal $ 145,060 Contingency 10% $ 14,506 Total Project Cost $ 159,566 Table 5 – Estimate of Probable Costs for Booster Club Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 10 Estimate of Probable Costs for Booster Club Office High Efficiency Wood Stove Category Description Unit Unit Cost Quantity Cost High Efficiency Wood Stove Wood Stove Each $2,500.00 1 $2,500 Blower Fan Each $500.00 1 $500 Stack Each $500.00 1 $500 Subtotal $3,500 Installation Area Prep hrs $150.00 8 $1,200 Stove and Chimney Install hrs $150.00 8 $1,200 Additional Parts Allowance Each $1,000.00 1 $1,000 Subtotal $3,400 Shipping 600 lbs Shipping Job $1,500.00 1 $1,500 Subtotal $1,500 Subtotal Material and Installation Cost $8,400 General Conditions 5% $420 Subtotal $8,820 Overhead and Profit 5% $441 Subtotal $9,261 Remote Factor 10% $926 Subtotal $10,187 Design Fees and Permitting 15% $1,528 Subtotal $11,715 Contingency 10% $1,172 Total Project Cost $12,887 Table 6 – Estimate of Probable Costs for Booster Club Office Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 11 VII. Economic Analysis The following assumptions were used to complete the economic analysis for the proposed biomass systems in New Stuyahok. Inflation Rates Discount Rate for Net Present Value Analysis 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% Table 7 – Inflation rates The real discount rate, or minimum attractive rate of return, is 3.0% and is the current rate used for all Life Cycle Cost Analysis by the Alaska Department of Education and Early Development. This is a typical rate used for completing economic analysis for public entities in Alaska. The escalation rates used for the wood, heating oil, electricity and O&M rates are based on rates used in the Alaska Energy Authority funded 2012 biomass pre-feasibility studies. These are typical rates used for this level of evaluation and were used so that results are consistent and comparable to the 2012 studies. O&M Costs Non-fuel related operations and maintenance costs (O&M) were estimated at $500 and $50 per year, for the Tarm Boilers and Blaze King Classic Wood Stove, respectively. For the first two years of service, an additional $500 and $50 per year were added to the Tarm Boilers and Blaze King Classic Wood Stove, respectively, to account for maintenance staff getting used to operating the new system. Definitions There are many different economic terms used in this study. A listing of all of the terms with their definition is provided below for reference. Economic Term Description Project Capital Cost This is the opinion of probable cost for designing and constructing the project. Simple Payback The Simple Payback is the Project Capital Cost divided by the first year annual energy savings. The Simple Payback does not take into account escalated energy prices. Present Value of Project Benefits (20 year life) The present value of all of the heating oil that would have been consumed by the existing heating oil-fired heating system, over a 20 year period. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 12 Economic Term Description Present Value of Operating Costs (20 year life) The present value of all of the proposed biomass systems operating costs over a 20 year period. This includes wood fuel, additional electricity, and O&M costs for the proposed biomass system to provide 85% of the building’s heat. It also includes the heating oil required for the existing oil-fired boilers to provide the remaining 15% of heat to the building. Benefit / Cost Ratio of Project (20 year life) This is the benefit to cost ratio over the 20 year period. A project that has a benefit to cost ratio greater 1.0 is economically justified. It is defined as follows: Where: PV = The present value over the 20 year period Reference Sullivan, Wicks and Koelling, “Engineering Economy”, 14th ed., 2009, pg. 440, Modified B-C Ratio. Net Present Value (20 year life) This is the net present value of the project over a 20 year period. If the project has a net present value greater than zero, the project is economically justified. This quantity accounts for the project capital cost, project benefits and operating costs. Year Accumulated Cash Flow > Project Capital Cost This is the number of years it takes for the accumulated cash flow of the project to be greater than or equal to the project capital cost. This is similar to the project’s simple payback, except that it incorporates the inflation rates. This quantity is the payback of the project including escalating energy prices and O&M rates. This quantity is calculated as follows: Where: J = Year that the accumulated cash flow is greater than or equal to the Project Capital Cost. = Project Cash flow for the kth year. Table 8 – Economic Definitions Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 13 Results The economic analysis was completed in order to determine the simple payback, benefit to cost ratio, and net present value of the proposed biomass system at each building. The results are shown in the table below. Based on the economic analysis it was determined that all of the proposed biomass systems at the two buildings in New Stuyahok have benefit to cost ratios above 1.0, and would be typically considered economically justified. The driving factors that make these projects cost effective are their relatively low project capital cost, combined with the high price of heating oil. It should be noted that the labor for loading and firing both biomass systems was not taken into account in the economic evaluation. Due to the small size of these systems, it is estimated this effort is relatively small and would have minimal impacts on overall costs of the systems. In order to obtain the heating oil offsets targeted in this study, building occupants must be responsible for loading and firing the biomass systems at the proper frequency. Economic Analysis Results Building Booster Club Booster Club Office Proposed Biomass System Two Tarm Solo 40 Wood Boilers Blaze King Classic High Efficiency Wood Stove Project Capital Cost ($159,566) ($12,887) Simple Payback 12.2 years 6.9 years Present Value of Project Benefits (20 year life) $731,392 $160,906 Present Value of Operating Costs (20 year life) ($360,797) ($109,630) Benefit / Cost Ratio of Project (20 year life) 2.32 3.98 Net Present Value (20 year life) $211,030 $38,389 Year Accumulated Cash Flow is Net Positive First Year First Year Year Accumulated Cash Flow > Project Capital Cost 9.0 years 5.8 years Table 9 – Economic Analysis Results Sensitivity Analysis A sensitivity analysis for the two New Stuyahok buildings was not completed because all projects are economically justified, with high benefit to cost ratios. Even if the price of heating oil drops to $4.58 per gallon, the Booster Club Tarm system will still have a benefit to cost ratio of 1.0. The Booster Club Office will still have a benefit to cost ratio of 1.0 if heating oil drops to $3.62 per gallon. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 14 VIII. Forest Resource and Fuel Availability Assessments Forest Resource Assessments Fuel availability assessments were not available for the New Stuyahok area. During the site visit it was found that the land around the New Stuyahok village is densely forested, with a high density of spruce and some birch trees. Due to the limited length of roads, wood harvesting is typically accomplished outside of the village area with snow machines pulling sleds in the winter and by river boat in the summer. Wood harvesting is not completed in the village itself to preserve the trees in the village. Per Coffman’s discussions with Mr. Will Putman with the State Forestry Service, most of the permits for wood harvesting are owned and controlled by village corporations within the state. If harvesting is to take place in these areas, permission will need to be obtained from the village corporation prior to harvesting. If more than 40 acres per year or 50 cords of wood are collected per year, the harvesting is classified as a commercial operation. For a commercial harvest, the practices outlined in the Forest Resources and Practices Act will need to be followed. The Forest Resource and Practices Act protects the water and habitat within the harvesting site and applies to state, federal, and native corporation land. If less than 40 cords of wood are used per year, the use is considered as a personal use and a commercial permit is not required. Air Quality Permitting Currently, air quality permitting is regulated according to the Alaska Department of Environmental Conservation Section 18 AAC 50 Air Quality Control regulations. Per these regulations, a minor air quality permit is required if a new wood boiler or wood stove produces one of the following conditions per Section 18 AAC 50.502 (C)(1): 40 tons per year (TPY) of carbon dioxide (CO2), 15 TPY of particulate matter greater than 10 microns (PM-10), 40 TPY of sulfur dioxide, 0.6 TPY of lead, 100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area, or 10 TPY of direct PM -2.5 emissions. These regulations assume that the device will operate 24 hours per day, 365 days per year and that no fuel burning equipment is used. If a new wood boiler or wood stove is installed in addition to a fuel burning heating device, the increase in air pollutants cannot exceed the following per AAC 50.502 (C)(3): 10 TPY of PM-10, 10 TPY of sulfur dioxide, 10 TPY of nitrogen oxides, 100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area, or 10 TPY of direct PM -2.5 emissions. Per the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075), a person may not operate a wood-fired heating device in a manner that causes black smoke or visible emissions that exceed 50 percent opacity for more than 15 minutes in any hour in an area where an air quality advisory is in effect. From Coffman’s discussions with Patrick Dunn at the Alaska Department of Environmental Conservation, these regulations are focused on permitting industrial applications of wood burning equipment. In his opinion, it would be unlikely that an individual wood boiler would require an air quality permit unless several boilers were to be installed and operated at the same site. If several boilers were installed and operated together, the emissions produced could be greater than 40 tons of CO2 per year. This would require permitting per AAC 50.502 (C)(1) or (C)(3). Permitting would not be required on the residential wood fired stoves unless they violated the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075). For recent similar systems installed in Alaska, no air quality permits were required or obtained. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 15 IX. General Biomass Technology Information Heating with Wood Fuel Wood fuels are among the most cost-effective and reliable sources of heating fuel for communities adjacent to forestland when the wood fuels are processed, handled, and combusted appropriately. Compared to other heating energy fuels, such as oil and propane, wood fuels typically have lower energy density and higher associated transportation and handling costs. Due to this low bulk density, wood fuels have a shorter viable haul distance when compared to fossil fuels. This short haul distance also creates an advantage for local communities to utilize locally-sourced wood fuels, while simultaneously retaining local energy dollars. Most villages in rural Alaska are particularly vulnerable to high energy prices due to the large number of heating degree days and expensive shipping costs. For many communities, wood-fueled heating can lower fuel costs. For example, cordwood sourced at $250 per cord is just 25% of the cost per MMBTU as #1 fuel oil sourced at $7 per gallon. In addition to the financial savings, the local communities also benefit from the multiplier effect of circulating energy dollars within the community longer, more stable energy prices, job creation, and more active forest management. In all of the Lake and Peninsula Communities studied, the community’s wood supply and demand are isolated from outside markets. The local cordwood market is influenced by land ownership, existing forest management and ecological conditions, local demand and supply, and the State of Alaska Energy Assistance program. Types of Wood Fuel Wood fuels are specified by energy density, moisture content, ash content, and granulometry. Each of these characteristics affects the wood fuel’s handling characteristics, storage requirements, and combustion process. Higher quality fuels have lower moisture, ash, dirt, and rock contents , consistent granulometry, and higher energy density. Different types of fuel quality can be used in wood heating projects as long as the infrastructure specifications match the fuel content characteristics. Typically, lower quality fuel will be the lowest cost fuel, but it will require more expensive storage, handling, and combustion infrastructure, as well as additional maintenance. Projects in rural Alaska must be designed around the availability of wood fuels. Some fuels can be harvested and manufactured on site, such as cordwood, woodchips, and briquettes. The economic feasibility of manufacturing on site is determined by a financial assessment of the project. Typically, larger projects offer more flexibility in terms of owning and operating the wood harvesting and manufacturing equipment, such as a wood chipper, splitter, or equipment to haul wood out of forest, than smaller projects. Due to the limited wood fuel demand, large financial obligations and operating complexities, it is unlikely that the Lake and Peninsula communities in this study will be able to manufacture pellets. However, some communities may be able to manufacture bricks or fire logs made from pressed wood material. These products can substitute for cordwood in woodstoves and boilers, while reducing supply pressure on larger diameter trees that are generally preferred for cordwood. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 16 High Efficiency Cord Wood Boilers High Efficiency Low Emission (HELE) cordwood boilers are designed to burn cordwood fuel cleanly and efficiently. The boilers use cordwood that is typically seasoned to 25% moisture content (MC) or less and meet the dimensions required for loading and firing. The amount of cordwood burned by the boiler will depend on the heat load profile of the building and the utilization of the fuel oil system as back up. Three HELE cordwood boiler suppliers include Garn (www.garn.com), Greenwood (www.greenwoodusa.com) and TarmUSA (www.woodboilers.com). All three of these suppliers have units operating in Alaska. Greenwood and TarmUSA have a number of residential units operating in Alaska and have models that range between 100,000 to 300,000 BTU/hr. Garn boilers, manufactured by Dectra Corporation, are used in Tanana, Kasilof, Dot Lake, Thorne Bay, Coffman Cove and other locations to heat homes, washaterias, schools, and community buildings. The Garn boiler has a unique construction, which is basically a wood boiler housed in a large water tank. Garn boilers come in several sizes and are appropriate for facilities using 100,000 to 1,000,000 BTUs per hour. The jacket of water surrounding the fire box absorbs heat and is piped into buildings via a heat exchanger, and then transferred to an existing building heating system, infloor radiant tubing, unit heaters, or baseboard heaters. In installations where the Garn boiler is in a detached building, there are additional heat exchangers, pumps and a glycol circulation loop that are necessary to transfer heat to the building while allowing for freeze protection. Radiant floor heating is the most efficient heating method when using wood boilers such as Garns, because they can operate using lower supply water temperatures compared to baseboards. Garn boilers are approximately 87% efficient and store a large quantity of water. For example, the Garn WHS-2000 holds approximately 1,825 gallons of heated water. Garns also produce virtually no smoke when at full burn, because of a primary and secondary gasification (2,000 ºF) burning process. Garns are manually stocked with cordwood and can be loaded multiple times a day during periods of high heating demand. Garns are simple to operate with only three moving parts: a handle, door and blower. Garns produce very little ash and require minimal maintenance. Removing ash and inspecting fans are typical maintenance requirements. Fans are used to produce a draft that increases combustion temperatures and boiler efficiency. In cold climates, Garns can be equipped with exterior insulated storage tanks for extra hot water circulating capacity. Most facilities using cordwood boilers keep existing oil-fired systems operational to provide heating backup during biomass boiler downtimes and to provide additional heat for peak heating demand periods. Low Efficiency Cord Wood Boilers Outdoor boilers are categorized as low-efficiency, high emission (LEHE) systems. These boiler systems are not recommended as they produce significant emission issues and do not combust wood fuels efficiently or completely, resulting in significant energy waste and pollution. These systems require significantly more wood to be purchased, handled and combusted to heat a facility as compared to a HELE system. The Alaska Department of Environmental Conservation has issued nuisance abatement orders for air pollution for outdoor wood boilers in Fairbanks. Fairbanks is ranked number four on Time Magazine's list of most air polluted cities in America. Additionally, several states have placed a moratorium on installing LEHE boilers because of air quality issues (Washington). These LEHE systems can have combustion efficiencies as low as twenty five (25%) percent and produce more than nine times the emission rate of standard industrial boilers. In comparison, Garns can operate around 87% efficiency. Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 17 High Efficiency Wood Stoves Newer high efficiency wood stoves are available on the market that produce minimal smoke, minimal ash and require less firewood. New EPA-certified wood stoves produce significantly less smoke than older uncertified wood stoves. High efficiency wood stoves are easy to operate with minimal maintenance compared to other biomass systems. The Blaze King Classic high efficiency wood stove (www.blazeking.com) is a recommended model, due to its built-in thermostats that monitor the heat output of the stove. This stove automatically adjusts the air required for combustion. This unique technology, combined with the efficiencies of a catalytic combustor with a built-in thermostat, provides the longest burn times of any wood stove. The Blaze King stove allows for optimal combustion and less frequent loading and firing times. Bulk Fuel Boilers Bulk fuel boilers usually burn wood chips, sawdust, bark or pellets and are designed around the wood resources that are available from the local forests or local industry. Several large facilities in Tok, Craig, and Delta Junction (Delta Greely High School) are using bulk fuel biomass systems. Tok uses a commercial grinder to process woodchips. The chips are then dumped into a bin and are carried by a conveyor belt to the boiler. The wood fuel comes from timber scraps, local sawmills and forest thinning projects. The Delta Greely High School has a woodchip bulk fuel boiler that heats the 77,000 square foot facility. The Delta Greely system, designed by Coffman engineers, includes a completely separate boiler building which includes chip storage bunker and space for storage of tractor trailers full of chips (so handling of frozen chips could be avoided). Woodchips are stored in the concrete bunker and augers move the material on a conveyor belt to the boilers. The automated fuel handling requirements for bulk fuel systems are not cost-effective for small and medium sized structures due to higher maintenance costs and complexities. Due to these reasons, a bulk fuel boiler system is not recommended for small rural communities in Alaska with limited financial and human resources. Grants There are many grant opportunities for biomass work state, federal, and local for feasibility studies, design and construction. If a project if determined to be pursued, a thorough search of websites and discussions with the AEA Biomass group would be recommended to make sure no possible funding opportunities are missed. Below are some funding opportunities and existing past grants that have been awarded. Currently, there is a funding opportunity for tribal communities that develop clean and renewable energy resources through the U.S. Department of Energy. On April 30, 2013, the Department of Energy announced up to $7 million was available to deploy clean energy projects in tribal communities to reduce reliance on fossil fuel and promote economic development on tribal lands. The Energy Department’s Tribal Energy Program, in cooperation with the Office of Indian Energy, will help Native American communities, tribal energy resource development organizations, and tribal consortia to install community or facility scale clean energy projects. http://apps1.eere.energy.gov/tribalenergy/ The Department of Energy (DOE), Alaska Native programs, focus on energy efficiency and add ocean energy into the mix. In addition the communities are eligible for up to $250,000 in energy -efficiency aid. The Native village of Kongiganak will get help strengthening its wind-energy infrastructure, increasing energy efficiency and developing “smart grid technology”. Koyukuk will get help upgrading its energy Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 18 infrastructure, improving energy efficiency and exploring biomass options. The village of Minto will explore all the above options as well as look for solar-energy ideas. Shishmaref, an Alaska Native village faced climate-change-induced relocation, will receive help with increasing energy sustainability and building capacity as it relocates. And the Yakutat T’lingit Tribe will also study efficiency, biomass and ocean energy. This DOE program would be a viable avenue for biomass funding. http://energy.gov/articles/alaska-native-communities-receive-technical-assistance-local-clean-energy- development The city of Nulato was awarded a $40,420 grant for engineering services for a wood energy project by the United States Department of Agriculture (USDA) and the United States Forest Service. Links regarding the award of the Woody Biomass Utilization Project recipients are shown below: http://www.fs.fed.us/news/2012/releases/07/renewablewoods.shtml http://www.usda.gov/wps/portal/usda/usdahome?contentid=2009/08/0403.xml Delta Junction was awarded a grant for engineering from the Alaska Energy Authority from the Renewable Energy Fund for $831,203. This fund provides assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities. http://www.akenergyauthority.org/re-fund-6/4_Program_Update/FinalREFStatusAppendix2013.pdf http://www.akenergyauthority.org/PDF%20files/PFS-BiomassProgramFactSheet.pdf http://www.akenergyauthority.org/RenewableEnergyFund/RFA_Project_Locations_20Oct08.pdf The Alaska Wood Energy Development Task Group (AWEDTG) consists of a coalition of federal and state agencies and not-for-profit organizations that have signed a Memorandum of Understanding (MOU) to explore opportunities to increase the utilization of wood for energy and biofuels production in Alaska. A pre-feasibility study for Aleknagik was conducted in 2012 for the AWEDTG. The preliminary costs for the biomass system(s) are $346,257 for the city hall and health center system and $439,096 for the city hall, health center, and future washeteria system. http://www.akenergyauthority.org/biomasswoodenergygrants.html http://www.akenergyauthority.org/BiomassWoodEnergy/Aleknagik%20Final%20Report.pdf The Emerging Energy Technology Fund grand program provides funds to eligible applicants for demonstrations projects of technologies that have a reasonable expectation to be commercially viable within five years and that are designed to: test emerging energy technologies or methods of conserving energy, improve an existing energy technology, or deploy an existing technology that has not previously been demonstrated in Alaska. http://www.akenergyauthority.org/EETFundGrantProgram.html Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. Appendix A Site Photos Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 1. Booster Club - South elevation 2. Booster Club - West elevation 3. Booster Club - North elevation 4. Booster Club - North elevation 5. Booster Club – East Elevation 6. Booster Club –Fuel tank Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 7. Booster Club – Gym 8. Booster Club – Boiler B1 9. Booster Club – Boiler B1 and B2 10. Booster Club – DHW Boiler 11. Booster Club – CP-1 12. Booster Club – Standby CP-2 Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 13. Booster Club – CP-3 14. Booster Club – Circ Pumps (CP1,2,3) 15. Booster Club - AHUs 16. Booster Club - AHUs 17. Booster Club – Johnson Controls BAS 18. Booster Club – EF-1 Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. 19. Booster Club Office – Elevation 20. Booster Club Office – Elevation 21. Booster Club Office – Renovations due to fire damage 22. Booster Club Office – Current Repairs 23. Booster Club Office – Current Repairs 24. Booster Club Office – Current Repairs Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. Appendix B Economic Analysis Spreadsheet New Stuyahok Booster ClubNew Stuyahok, AlaskaProject Capital Cost($159,566)Simple Payback = Total Project Cost / First Year Cost Savings12.2 yearsPresent Value of Project Benefits (20 year life)$731,392Present Value of Operating Costs (20 year life)($360,797)Benefit / Cost Ratio of Project (20 year life)2.32Net Present Value (20 year life)$211,030Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost9.0 yearsDiscount Rate for Net Present Value Analysis3%Wood Fuel Escalation Rate3%Fossil Fuel Escalation Rate5%Electricity Escalation Rate3%O&M Escalation Rate2%YearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYear1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Existing Heating System Operating CostsExisting Heating Oil Consumption$6.934,500gal$31,185$32,744$34,381$36,101$37,906$39,801$41,791$43,880$46,074$48,378$50,797$53,337$56,004$58,804$61,744$64,831$68,073$71,477$75,050$78,803Biomass System Operating CostsWood Fuel (Delivered to site)$330.0085%34.2cord($11,286)($11,625)($11,973)($12,333)($12,702)($13,084)($13,476)($13,880)($14,297)($14,726)($15,167)($15,622)($16,091)($16,574)($17,071)($17,583)($18,111)($18,654)($19,214)($19,790)Fossil Fuel$6.9315%675gal($4,678)($4,912)($5,157)($5,415)($5,686)($5,970)($6,269)($6,582)($6,911)($7,257)($7,620)($8,001)($8,401)($8,821)($9,262)($9,725)($10,211)($10,721)($11,258)($11,820)Electricity$0.651,752kWh($1,139)($1,173)($1,208)($1,244)($1,282)($1,320)($1,360)($1,401)($1,443)($1,486)($1,530)($1,576)($1,624)($1,672)($1,723)($1,774)($1,827)($1,882)($1,939)($1,997)Operation and Maintenance Costs($500)($510)($520)($531)($541)($552)($563)($574)($586)($598)($609)($622)($634)($647)($660)($673)($686)($700)($714)($728)Additional Operation and Maintenance Costs for first 2 years($500)($510)$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0Total Operating Costs($18,103)($18,729)($18,859)($19,523)($20,211)($20,926)($21,668)($22,437)($23,236)($24,066)($24,927)($25,821)($26,749)($27,714)($28,715)($29,755)($30,835)($31,958)($33,124)($34,336)Annual Operating Cost Savings$13,082 $14,015 $15,523 $16,578 $17,694 $18,875 $20,123 $21,443 $22,838 $24,312 $25,870 $27,516 $29,254 $31,090 $33,029 $35,076 $37,237 $39,519 $41,926 $44,467Accumulated Cash Flow$13,082 $27,098 $42,620 $59,198 $76,892 $95,767 $115,891 $137,334 $160,172 $184,484 $210,354 $237,870 $267,124 $298,215 $331,244 $366,320 $403,558 $443,076 $485,003 $529,470Net Present Value($146,865) ($133,654) ($119,449) ($104,719) ($89,456) ($73,649) ($57,287) ($40,359) ($22,856) ($4,765)$13,924 $33,223 $53,144 $73,698 $94,898 $116,757 $139,286 $162,499 $186,409 $211,030Energy UnitsHeating Source ProportionEconomic Analysis ResultsInflation RatesDescription Unit CostAnnual Energy Units New Stuyahok Booster Club OfficeNew Stuyahok, AlaskaProject Capital Cost($12,887)Simple Payback = Total Project Cost / First Year Cost Savings6.9 yearsPresent Value of Project Benefits (20 year life)$160,906Present Value of Operating Costs (20 year life)($109,630)Benefit / Cost Ratio of Project (20 year life)3.98Net Present Value (20 year life)$38,389Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost5.8 yearsDiscount Rate for Net Present Value Analysis3%Wood Fuel Escalation Rate3%Fossil Fuel Escalation Rate5%Electricity Escalation Rate3%O&M Escalation Rate2%YearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYearYear1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Existing Heating System Operating CostsExisting Heating Oil Consumption$6.93990gal$6,861$7,204$7,564$7,942$8,339$8,756$9,194$9,654$10,136$10,643$11,175$11,734$12,321$12,937$13,584$14,263$14,976$15,725$16,511$17,337Biomass System Operating CostsWood Fuel (Delivered to site)$330.0050%4.4cord($1,452)($1,496)($1,540)($1,587)($1,634)($1,683)($1,734)($1,786)($1,839)($1,895)($1,951)($2,010)($2,070)($2,132)($2,196)($2,262)($2,330)($2,400)($2,472)($2,546)Fossil Fuel$6.9350%495gal($3,430)($3,602)($3,782)($3,971)($4,170)($4,378)($4,597)($4,827)($5,068)($5,322)($5,588)($5,867)($6,160)($6,468)($6,792)($7,131)($7,488)($7,862)($8,256)($8,668)Electricity$0.650kWh$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0Operation and Maintenance Costs($50)($51)($52)($53)($54)($55)($56)($57)($59)($60)($61)($62)($63)($65)($66)($67)($69)($70)($71)($73)Additional Operation and Maintenance Costs for first 2 years($50)($51)$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0$0Total Operating Costs($4,982)($5,199)($5,374)($5,611)($5,858)($6,117)($6,387)($6,670)($6,966)($7,276)($7,600)($7,939)($8,294)($8,665)($9,054)($9,461)($9,887)($10,332)($10,799)($11,287)Annual Operating Cost Savings$1,878 $2,004 $2,190 $2,331 $2,481 $2,640 $2,807 $2,984 $3,170 $3,367 $3,575 $3,795 $4,027 $4,271 $4,530 $4,802 $5,089 $5,392 $5,712 $6,049Accumulated Cash Flow$1,878 $3,883 $6,072 $8,404 $10,885 $13,524 $16,331 $19,315 $22,485 $25,853 $29,428 $33,223 $37,250 $41,521 $46,051 $50,853 $55,942 $61,335 $67,047 $73,096Net Present Value($11,063) ($9,174) ($7,170) ($5,099) ($2,959) ($748)$1,534 $3,890 $6,319 $8,825 $11,408 $14,070 $16,812 $19,636 $22,543 $25,535 $28,615 $31,782 $35,040 $38,389Energy UnitsHeating Source ProportionEconomic Analysis ResultsInflation RatesDescription Unit CostAnnual Energy Units Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. Appendix C Site Plan Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. Site Plan of New Stuyahok Buildings Booster Club Office Booster Club Feasibility Assessment for Biomass Heating Systems New Stuyahok, AK Coffman Engineers, Inc. Appendix D AWEDTG Field Data Sheet