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HomeMy WebLinkAboutNondalton Assessment for Biomass Heating System Final Report Coffman 07-26-2013-BIO Feasibility Assessment for Biomass Heating Systems Nondalton, Alaska 800 F Street, Anchorage, AK 99501 p (907) 276-6664 f (907) 276-5042 Tony SlatonBarker, PE and Lee Bolling, CEA FINAL REPORT - 7/26/2013 Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. i Contents I. Executive Summary ............................................................................................................ 1 II. Introduction ...................................................................................................................... 2 III. Preliminary Site Investigation – Tribal Office Building ........................................................ 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 – Community Building ........................................................ 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 ....................................................................................................................................... 6 BIOMASS SYSTEM INTEGRATION ........................................................................................................................................ 6 BIOMASS SYSTEM OPTIONS .............................................................................................................................................. 6 V. Preliminary Site Investigation – St. Nicholas Church ........................................................... 8 BUILDING DESCRIPTION ................................................................................................................................................... 8 EXISTING HEATING SYSTEM .............................................................................................................................................. 8 DOMESTIC HOT WATER................................................................................................................................................... 8 BUILDING ENVELOPE ....................................................................................................................................................... 8 AVAILABLE SPACE ........................................................................................................................................................... 8 STREET ACCESS AND FUEL STORAGE ................................................................................................................................... 8 BUILDING OR SITE CONSTRAINTS ....................................................................................................................................... 9 BIOMASS SYSTEM INTEGRATION ........................................................................................................................................ 9 BIOMASS SYSTEM OPTIONS .............................................................................................................................................. 9 VI. Energy Consumption and Costs ....................................................................................... 10 WOOD ENERGY ........................................................................................................................................................... 10 ENERGY COSTS ............................................................................................................................................................ 10 EXISTING FUEL OIL CONSUMPTION .................................................................................................................................. 11 BIOMASS SYSTEM CONSUMPTION ................................................................................................................................... 11 VII. Preliminary Cost Estimating ........................................................................................... 13 VIII. Economic Analysis ........................................................................................................ 14 O&M COSTS .............................................................................................................................................................. 14 DEFINITIONS................................................................................................................................................................ 14 RESULTS ..................................................................................................................................................................... 16 SENSITIVITY ANALYSIS ................................................................................................................................................... 16 Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. ii IX. Forest Resource and Fuel Availability Assessments ......................................................... 17 FOREST RESOURCE ASSESSMENTS .................................................................................................................................... 17 AIR QUALITY PERMITTING .............................................................................................................................................. 17 X. General Biomass Technology Information ........................................................................ 18 HEATING WITH WOOD FUEL ........................................................................................................................................... 18 TYPES OF WOOD FUEL .................................................................................................................................................. 18 HIGH EFFICIENCY CORD WOOD BOILERS ........................................................................................................................... 19 LOW EFFICIENCY CORD WOOD BOILERS ........................................................................................................................... 19 HIGH EFFICIENCY WOOD STOVES .................................................................................................................................... 20 BULK FUEL BOILERS ...................................................................................................................................................... 20 GRANTS ..................................................................................................................................................................... 20 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 Nondalton, 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 Nondalton, 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 Nondalton, AK Coffman Engineers, Inc. v List of Figures Fig. 1 – Nondalton, Alaska – Google Maps ................................................................................................... 2 Fig. 2 – Nondalton Buildings Evaluated – Google Maps ............................................................................... 2 List of Tables Table 1 – Economic Evaluation Summary ..................................................................................................... 1 Table 2 – Energy Comparison ..................................................................................................................... 10 Table 3 – Existing Fuel Oil Consumption ..................................................................................................... 11 Table 4 – Proposed Biomass System Fuel Consumption ............................................................................ 12 Table 5 – Estimate of Probable Costs for High Efficiency Wood Stove in Nondalton................................. 13 Table 6 – Inflation rates .............................................................................................................................. 14 Table 7 – Economic Definitions ................................................................................................................... 15 Table 8 – Economic Analysis Results ........................................................................................................... 16 Feasibility Assessment for Biomass Heating Systems Nondalton, 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 Tribal Office Building, Community Building and St. Nicholas Church in Nondalton, Alaska. In the study, the proposed biomass system determined to be the most practical and cost effective for each building is a high efficiency wood stove. A wood boiler system, such as a Garn, was not evaluated due to high mechanical integration costs, limited available space and system complexity. The results of the economic evaluation for all three buildings are shown below. It was found that installing a high efficiency wood stove at each building is economically justified, due to the fact that the benefit to cost ratio of each option is greater than 1.0. The Tribal Office Building and Community Building are the most cost effective projects. St. Nicholas Church has a longer payback time due to its limited operation and relatively low heating oil consumption. Economic Analysis Results Building Tribal Office Building Community Building St. Nicholas Church Project Capital Cost ($12,120) ($12,120) ($12,120) Simple Payback 2.9 years 3.2 years 13.8 years Present Value of Project Benefits (20 year life) $285,647 $260,496 $65,573 Present Value of Operating Costs (20 year life) ($179,651) ($164,047) ($41,937) Benefit / Cost Ratio of Project (20 year life) 8.75 7.96 1.95 Net Present Value (20 year life) $93,876 $84,330 $11,516 Year Accumulated Cash Flow is Net Positive First Year First Year First Year Year Accumulated Cash Flow > Project Capital Cost 2.8 years 3.0 years 10.0 years Table 1 – Economic Evaluation Summary Feasibility Assessment for Biomass Heating Systems Nondalton, 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 three buildings in Nondalton, AK. The three buildings are the Tribal Office Building, the Community Building, and St. Nicholas Church. The locations of the buildings are shown in Figures 1 and 2. Fig. 1 – Nondalton, Alaska – Google Maps Fig. 2 – Nondalton Buildings Evaluated – Google Maps Tribal Office Building St. Nicholas Church Community Building Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 3 III. Preliminary Site Investigation – Tribal Office Building Building Description The Tribal Office Building is a 2,200 SF two story building that was built in 1991. It was originally used for temporary housing until it was renovated in 2011 into office space. The next planned renovation will involve finishing the remaining part of the second floor, which is currently inaccessible. It is used by four or five office staff during the weekdays during working hours and occasionally during the weekend. It is typically used approximately 50 hours per week. No energy audit has been conducted at the building. Existing Heating System The heating system for the Tribal Office Building includes one Toyostove and one Monitor stove, each located on the first floor. The second floor has no installed heating system and second floor offices utilize individual electric space heaters for additional heat. Two electric space heaters were observed on the second floor during the site visit. There is no central boiler and no boiler room in the building. The Monitor stove (model 2400, 37,200 BTU/hr output) serves the first floor conference room and the Toyostove (model Laser 73, 40,000 BTU/hr output) serves the first floor office space. The heaters appear to be in fair working order and the age of the units is unknown. There is no routine maintenance of the heaters. One 300 gal heating oil tank serves the Monitor and a 55 gal drum serves the Toyostove. Each tank is located outside the building adjacent to the wall where each heater is located. No spill containment is present around the tanks. Fuel in the tanks is used for heating only. Domestic Hot Water Domestic hot water is used only for hand washing in the building’s two bathrooms. A shower exists in the second floor bathroom but is never used. There are two electric resistance hot water heaters; with one serving each bathroom. The first floor bathroom has a 30 gal Reliance electric hot water heater that is currently disconnected and not in service. A 50 gal Richmond electric hot water heater serves the second floor bathroom. Building Envelope The walls of the building are 2x6 wood stud construction that are estimated to have R-19 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-25 fiberglass batt insulation. The windows are double pane and there are unheated arctic entries for each of the two entrances. Available Space There is space inside the building for a residential style wood stove. However, an addition would be needed to house a larger Garn wood boiler type system. 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 Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 4 building. Brush may have to be removed and additional gravel may be necessary to situate the new structures. Building or Site constraints The site is flat with no significant site constraints. 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, adding significant expense. A residential style high efficiency wood stove could easily be installed in the building. Biomass System Options There are two options for incorporating biomass systems into the Tribal Office Building: 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 residential style high efficiency wood stove would be the most cost effective and lowest tech option. Wood heating with wood stoves is standard with most homes in Nondalton 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 existing Toyostove and Monitor stove would still be used to make up for additional required heating during occupied times and as 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, such as a Garn, 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 than 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 heating pipes are typically below grade if the boiler building is a significant distance from heating load. Due to the significant expense of retrofitting the building with a hydronic system and the increased complexity of a wood boiler system, this option was not evaluated in this study. Also, there appears to be limited maintenance personnel available in the community to maintain a Garn type system. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 5 IV. Preliminary Site Investigation – Community Building Building Description The Community Building is a 2,000 SF one story building that was built in 1995. It is used for office space and for holding large community events. It has a large main room and a large kitchen with a food storage room. The building had window, door and air sealing improvements completed in 2011, as part of recommendations from an energy audit. The energy audit for the building was not provided to us. Additional interior renovations are planned but there is currently no funding or timeline for the projects. The building has two office workers that use the building for the typical 40 hour work week. The building is also used for large community events during the weekdays and weekends. Meetings, classes and potlucks can range from 10 to 100 people. It is estimated that the building is occupied 50 hrs per week. Existing Heating System The community building is heated by a single Monitor stove located in the main room. There is no boiler or boiler room. The stove is a Monitor 441, direct vented heating oil furnace with an output of 43,000 Btu/hr. The unit has its own controls and thermostat. There is no routine maintenance that is performed on the unit. The Monitor stove appears to be in good working order. The age of the unit is unknown. One 500 gal heating oil tank is located adjacent the exterior wall near the Monitor stove. The tank is surrounded by a chain link fence and enclosed by a wood structure. No spill containment is present around the tank and fuel in the tank is only used for heating. Domestic Hot Water Domestic hot water is used only for hand washing in the single bathroom and for washing in the kitchen. No shower or laundry facilities exist in the building. There is one 30 gal electric water heater located in the food storage room by the kitchen. Building Envelope The walls of the building are 2x6 wood stud construction that are estimated to have R-19 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-25 fiberglass batt insulation. The windows are new double pane windows. There is an unheated arctic entry for the main entrance. Available Space There is space inside the building for a residential style wood stove. However, an addition would be needed to house a larger Garn wood boiler type system. Street Access and Fuel Storage The building is situated along a gravel road and a truck can easily access the front of 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 west side of the building. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 6 Building or Site constraints The site is on a south facing hill that slopes sharply to the lake. There is also a large satellite dish and GCI communication conex located to the east of the building. Due to these factors, there is no obvious space for a detached boiler building to house a wood fired boiler. The west side of the building may have space, but would require brush and tree clearing and significant fill to level the space for construction. 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 high efficiency wood stove could easily be installed in the building. Biomass System Options There are three options for incorporating biomass systems into the community building: 1) A high efficiency wood stove, 2) A high efficiency wood boiler system in a detached building, or 3) A large central plant wood boiler system that would serve the Community Building, Clinic Building, Ambulance Building, St. Nicholas Church and potentially other buildings in close proximity. All systems will require a person to load and fire the wood heating systems by hand. A residential style high efficiency wood stove would be the most cost effective and lowest tech option. Wood heating with wood stoves is standard with most homes in Nondalton 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 existing Toyostove and Monitor stove would still be used to make up for additional required heating during occupied times and as 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. Due to the significant expense of retrofitting the building with a hydronic system and the increased complexity of a wood boiler system, this option was not evaluated in this study. Also, there appears to be limited maintenance personnel available in the community to maintain a Garn type system. The third option is a large central plant wood boiler system that could serve multiple buildings. The central plant could serve the Community Building, Clinic Building, Ambulance Building, St. Nicholas Church and potentially the Post Office Building, Triplex Building, and Teacher Housing building. All of these buildings are within 100 yards of the Village Clinic. The buildings could be connected to a buried Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 7 glycol heating loop that is connected to a central wood fired boiler plant. This option would be the most expensive, but would have the biggest ability to offset heating oil consumption. However, the clinic buildings, Post Office, and teacher housing buildings are all owned by different entities (and were outside current scope of this study), which may prove difficult to organize. A central plant system of this size and complexity would also require a maintenance staff to properly operate and maintain the system. The systems would utilize pumps, glycol, heat exchangers, boilers and a control system. Skilled maintenance personnel would be needed to operate and maintain the system. Finally, it appears that the only available land for a central plant facility would be across the road to the north of St. Nicholas Church, which would be approximately 200 to 250 yards away from the Community Building. This option could be viable, but would require skilled maintenance personnel and buy in from all of the building owners. This option was not evaluated in this study because it is outside the scope of the current project. If the community wants to pursue this option, an additional more detailed study including all possible buildings is recommended. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 8 V. Preliminary Site Investigation – St. Nicholas Church Building Description St. Nicholas Church is a 1,750 SF one story building that was built in 1987. The church is used primarily for services during the weekends and for weddings and funerals. On average, it appears that the building is occupied 10 hrs per week. There are typically 5-10 people for church services. During the holidays most of the village will attend. Due to the high cost of heating oil and the low occupancy of the building, the heat in the building is turned off during unoccupied times and the building is allowed to match ambient outside temperatures. The heat is turned on one to two days before a church service to warm the space. The building has one large room for the congregation and a smaller room behind the altar for religious materials. There have been no renovations to the building since it was originally built. Roof repairs for the church are planned to be completed when funding is available. There has been no energy audit of the building. Also located on the site is the old church, which is located immediately to the east of St. Nicholas Church. The old church appears to have no electricity or heating. Existing Heating System St. Nicholas Church is heated by a single Toyostove stove located in the main room. There is no boiler or boiler room. The stove is a Toyostove Laser 73, direct vented heating oil furnace with an output of 40,000 Btu/hr. The unit has its own controls and thermostat. There is no routine maintenance that is performed on the unit. The Toyostove appears to be in fair working order. The age of the unit is unknown. One 55 gal heating oil drum is located outside the building adjacent the exterior wall near the Toyostove. No spill containment is present around the tank and fuel in the tank is only used for heating. Domestic Hot Water There is no water service or plumbing in the building. Building Envelope The walls of the building are 2x6 wood stud construction that are estimated to have R-19 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. The building is on piles and floor is assumed to be insulated with R-19 fiberglass batt insulation, as soffit space was inaccessible. It is estimated that the roof insulation is R-25 fiberglass batt insulation. The windows are double pane windows. There is an unheated arctic entry for the main entrance. The building foundation is on piles and the floor of the building is not level, due to foundation settlement. Available Space There appears to be space inside the building for a residential style wood stove. An addition would be needed to house a larger Garn wood boiler type system. Street Access and Fuel Storage The building is situated on a hill with a gravel road wrapping around the uphill side of the building. There is one small gravel driveway that allows access from the road to the main entrance of the church. 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 west side of the building. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 9 Building or Site constraints St. Nicholas Church is on a south facing hill that slopes to the lake. The old church is located to the east of the building. Due to these factors, there is limited space for a detached boiler building to house a wood fired boiler. The west side of the building may have space, but would require brush and tree clearing and fill to level the space for construction. There is also no water service to the church, so a new water service for a boiler building would be necessary. 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 high efficiency wood stove could easily be installed in the building. Biomass System Options The biomass options for St. Nicholas Church are identical to the options for the Community Building (see previous section for details). 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. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 10 VI. 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 conservative 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 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 Nondalton by plane and currently costs approximately $7.66/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 Nondalton not by the cord but by snow machine sled load. This is equivalent to approximately $260 per cord, which is used for this study. 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% $260 $21.67 Fuel Oil Gal 134,000 80% $7.66 $71.46 Electricity kWh 3,413 99% $0.56 $165.74 Table 2 – Energy Comparison Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 11 Existing Fuel Oil Consumption Complete heating oil bills were not provided for the three Nondalton buildings. The heating oil consumption for each building was estimated based on interviews with Mr. William Evanoff, the current Tribal Council President. According to Mr. Evanoff, the community building consumes three 55 gallon drums of heating oil each month during the winter from October to April. During the summer from May to September the community building uses approximately one 55 gal drum per month. Based on these estimates, the community building consumes approximately 1,450 gallons per year. The heating oil consumption of the Tribal Office Building is similar to the community building and is estimated at 1,590 gallons per year, based on the additional square footage. The consumption of the St. Nicholas Church is estimated at 365 gallons of heating oil per year, due to the fact that the church is only heated 2 days per week. Building Name Fuel Type Avg. Annual Consumption Net MMBTU/yr Annual Fuel Cost Tribal Office Building Fuel Oil 1,590 gal 170.4 $12,179 Community Building Fuel Oil 1,450 gal 155.4 $11,107 St. Nicholas Church Fuel Oil 365 gal 39.1 $2,796 Table 3 – Existing Fuel Oil Consumption Biomass System Consumption The proposed biomass system for each building is a high efficiency wood stove. While wood stoves are capable of providing the majority of the space heat for each building, a conservative estimate of 50% heating oil offset was used for the study. Due to the fact that the buildings are not occupied const antly 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 Tribal Office Building Cord Wood 50% 85.2 7.1 cords $1,847 $7,936 Fuel Oil 50% 85.2 795 gal $6,090 Community Building Cord Wood 50% 77.7 6.5 cords $1,684 $7,237 Fuel Oil 50% 77.7 725 gal $5,554 Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 12 Building Name Fuel Type % Heating Source Net MMBTU/yr Annual Consumption Energy Cost Total Energy Cost St. Nicholas Church Cord Wood 50% 19.6 1.6 cords $424 $1,822 Fuel Oil 50% 19.6 183 gal $1,398 Table 4 – Proposed Biomass System Fuel Consumption Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 13 VII. Preliminary Cost Estimating An estimate of probable costs was completed for the installation of a high efficiency wood stove for each building. The basis of design is a Blaze King Classic high efficiency wood stove with an output of 48,065 BTU/hr for 12 hours. This cost estimate is used for each of the three study buildings in Nondalton: Tribal Office, Community Building and St. Nicholas Church. The cost estimate is for one building. 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 Nondalton. Engineering design and permitting was estimated at 15% and a 10% contingency was used. Estimate of Probable Costs for High Efficiency Wood Stove in Nondalton 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 $1,000.00 1 $1,000 Subtotal $1,000 Subtotal Material and Installation Cost $7,900 General Conditions 5% $395 Subtotal $8,295 Overhead and Profit 5% $415 Subtotal $8,710 Remote Factor 10% $871 Subtotal $9,581 Design Fees and Permitting 15% $1,437 Subtotal $11,018 Contingency 10% $1,102 Total Project Cost $12,120 Table 5 – Estimate of Probable Costs for High Efficiency Wood Stove in Nondalton Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 14 VIII. Economic Analysis The following assumptions were used to complete the economic analysis for the proposed biomass systems in Nondalton. 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 6 – 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 $50 per year. For the first two years of service, an additional $50 per year was added to account for maintenance staff getting used to operating the new system. The maintenance of the high efficiency wood stove is relatively low due to the system’s simple construction and few moving parts. Wood stoves are also common in the community and community members have knowledge of how to operate them. 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 Nondalton, AK Coffman Engineers, Inc. 15 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 7 – Economic Definitions Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 16 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 of the proposed high efficiency wood stoves are shown in the table below. Based on the economic analysis it was determined that all of the proposed biomass systems at the three buildings in Nondalton have benefit to cost ratios above 1.0, and are 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. A high efficiency wood stove is much cheaper than utilizing an expensive and complex high efficiency wood boiler and all the necessary hydronic piping required to integrate into the buildings. Economic Analysis Results Building Tribal Office Building Community Building St. Nicholas Church Project Capital Cost ($12,120) ($12,120) ($12,120) Simple Payback 2.9 years 3.2 years 13.8 years Present Value of Project Benefits (20 year life) $285,647 $260,496 $65,573 Present Value of Operating Costs (20 year life) ($179,651) ($164,047) ($41,937) Benefit / Cost Ratio of Project (20 year life) 8.75 7.96 1.95 Net Present Value (20 year life) $93,876 $84,330 $11,516 Year Accumulated Cash Flow is Net Positive First Year First Year First Year Year Accumulated Cash Flow > Project Capital Cost 2.8 years 3.0 years 10.0 years Table 8 – Economic Analysis Results Sensitivity Analysis A sensitivity analysis for the three Nondalton 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 $2.70 per gallon, the Tribal Office Building and Community Building projects will still have a benefit to cost ratio of 1.0. The St. Nicholas Church will still have a benefit to cost ratio of 1.0 if heating oil drops to $4.96 per gallon. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 17 IX. Forest Resource and Fuel Availability Assessments Forest Resource Assessments Fuel availability assessments were not available for the Nondalton area. During the site visit it was found that the land around Nondalton 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 in the winter with snow machines pulling sleds. 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). Similar systems installed in Alaska have not required or obtained air quality permits. Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 18 X. 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 Nondalton, AK Coffman Engineers, Inc. 19 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 Nondalton, AK Coffman Engineers, Inc. 20 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 Nondalton, AK Coffman Engineers, Inc. 21 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 Nondalton, AK Coffman Engineers, Inc. Appendix A Site Photos Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 1. Tribal Office Building - South elevation 2. Tribal Office Building - West elevation 3. Tribal Office Building - North elevation 4. Tribal Office Building - East elevation 5. Tribal Office Building – Site Entrance 6. Tribal Office Building – West fuel tank Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 7. Tribal Office Building – East fuel tank 8. Tribal Office Building – Monitor Stove 9. Tribal Office Building - Toyostove 10. Tribal Office Building – Conference Room 11. Tribal Office Building – First Floor Office Space 12. Tribal Office Building – Second Floor Office Space Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 13. Community Building - South elevation 14. Community Building - West elevation 15. Community Building - North elevation 16. Community Building - East elevation 17. Community Building – Site Entrance 18. Community Building – West fuel tank Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 19. Community Building – Monitor Stove 20. Community Building – Electric Water Heater 21. Community Building - Kitchen 22. Community Building – Main Room 23. Community Building – Main Room 24. Community Building – adjacent communications conex and satellite dish Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 25. St. Nicholas Church - South elevation 26. St. Nicholas Church - West elevation 27. St. Nicholas Church - North elevation 28. St. Nicholas Church - East elevation 29. St. Nicholas Church – Site Entrance 30. St. Nicholas Church – West fuel tank Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. 31. St. Nicholas Church – Toyostove 32. St. Nicholas Church – Main Room 33. St. Nicholas Church – North Road 34. St. Nicholas Church – East Road Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. Appendix B Economic Analysis Spreadsheet Nondalton Community BuildingNondalton, AlaskaProject Capital Cost($12,120)Simple Payback = Total Project Cost / First Year Cost Savings3.2 yearsPresent Value of Project Benefits (20 year life)$260,496Present Value of Operating Costs (20 year life)($164,047)Benefit / Cost Ratio of Project (20 year life)7.96Net Present Value (20 year life)$84,330Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost3.0 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$7.661,450gal$11,107$11,662$12,245$12,858$13,501$14,176$14,884$15,629$16,410$17,231$18,092$18,997$19,947$20,944$21,991$23,091$24,245$25,457$26,730$28,067Biomass System Operating CostsWood Fuel (Delivered to site)$260.0050%6.5cord($1,690)($1,741)($1,793)($1,847)($1,902)($1,959)($2,018)($2,078)($2,141)($2,205)($2,271)($2,339)($2,410)($2,482)($2,556)($2,633)($2,712)($2,793)($2,877)($2,963)Fossil Fuel$7.6650%725gal($5,554)($5,831)($6,123)($6,429)($6,750)($7,088)($7,442)($7,814)($8,205)($8,615)($9,046)($9,498)($9,973)($10,472)($10,996)($11,545)($12,123)($12,729)($13,365)($14,033)Electricity$0.560kWh$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($7,344)($7,674)($7,968)($8,329)($8,707)($9,102)($9,516)($9,950)($10,404)($10,880)($11,378)($11,900)($12,446)($13,018)($13,618)($14,246)($14,903)($15,592)($16,314)($17,070)Annual Operating Cost Savings$3,764 $3,988 $4,278 $4,529 $4,794 $5,073 $5,368 $5,678 $6,006 $6,350 $6,714 $7,097 $7,500 $7,925 $8,373 $8,845 $9,342 $9,865 $10,417 $10,997Accumulated Cash Flow$3,764 $7,752 $12,030 $16,559 $21,353 $26,426 $31,794 $37,473 $43,478 $49,829 $56,543 $63,640 $71,140 $79,065 $87,439 $96,284 $105,626 $115,491 $125,908 $136,905Net Present Value($8,466) ($4,707) ($792)$3,232 $7,368 $11,617 $15,981 $20,464 $25,067 $29,792 $34,642 $39,620 $44,727 $49,967 $55,341 $60,853 $66,505 $72,300 $78,241 $84,330Energy UnitsHeating Source ProportionEconomic Analysis ResultsInflation RatesDescription Unit CostAnnual Energy Units Nondalton St. Nicholas ChurchNondalton, AlaskaProject Capital Cost($12,120)Simple Payback = Total Project Cost / First Year Cost Savings13.8 yearsPresent Value of Project Benefits (20 year life)$65,573Present Value of Operating Costs (20 year life)($41,937)Benefit / Cost Ratio of Project (20 year life)1.95Net Present Value (20 year life)$11,516Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost10.0 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$7.66365gal$2,796$2,936$3,082$3,237$3,398$3,568$3,747$3,934$4,131$4,337$4,554$4,782$5,021$5,272$5,536$5,812$6,103$6,408$6,729$7,065Biomass System Operating CostsWood Fuel (Delivered to site)$260.0050%1.6cord($416)($428)($441)($455)($468)($482)($497)($512)($527)($543)($559)($576)($593)($611)($629)($648)($668)($688)($708)($729)Fossil Fuel$7.6650%183gal($1,402)($1,472)($1,545)($1,623)($1,704)($1,789)($1,879)($1,972)($2,071)($2,175)($2,283)($2,398)($2,517)($2,643)($2,775)($2,914)($3,060)($3,213)($3,374)($3,542)Electricity$0.560kWh$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($1,918)($2,002)($2,039)($2,130)($2,226)($2,327)($2,432)($2,542)($2,657)($2,777)($2,903)($3,036)($3,174)($3,319)($3,471)($3,630)($3,796)($3,971)($4,153)($4,345)Annual Operating Cost Savings$878 $933 $1,044 $1,106 $1,172 $1,242 $1,315 $1,393 $1,474 $1,560 $1,651 $1,746 $1,847 $1,953 $2,065 $2,183 $2,307 $2,438 $2,575 $2,721Accumulated Cash Flow$878 $1,811 $2,855 $3,961 $5,134 $6,375 $7,691 $9,083 $10,557 $12,118 $13,768 $15,515 $17,362 $19,315 $21,380 $23,563 $25,870 $28,308 $30,883 $33,604Net Present Value($11,267) ($10,388) ($9,433) ($8,450) ($7,439) ($6,399) ($5,329) ($4,230) ($3,100) ($1,939) ($746)$478 $1,736 $3,028 $4,353 $5,713 $7,109 $8,541 $10,010 $11,516Energy UnitsHeating Source ProportionEconomic Analysis ResultsInflation RatesDescription Unit CostAnnual Energy Units Nondalton Tribal Office BuildingNondalton, AlaskaProject Capital Cost($12,120)Simple Payback = Total Project Cost / First Year Cost Savings2.9 yearsPresent Value of Project Benefits (20 year life)$285,647Present Value of Operating Costs (20 year life)($179,651)Benefit / Cost Ratio of Project (20 year life)8.75Net Present Value (20 year life)$93,876Year Accumulated Cash Flow is Net PositiveFirst YearYear Accumulated Cash Flow > Project Capital Cost2.8 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$7.661,590gal$12,179$12,788$13,428$14,099$14,804$15,544$16,322$17,138$17,995$18,894$19,839$20,831$21,872$22,966$24,114$25,320$26,586$27,915$29,311$30,777Biomass System Operating CostsWood Fuel (Delivered to site)$260.0050%7.1cord($1,846)($1,901)($1,958)($2,017)($2,078)($2,140)($2,204)($2,270)($2,338)($2,409)($2,481)($2,555)($2,632)($2,711)($2,792)($2,876)($2,962)($3,051)($3,143)($3,237)Fossil Fuel$7.6650%795gal($6,090)($6,394)($6,714)($7,050)($7,402)($7,772)($8,161)($8,569)($8,997)($9,447)($9,919)($10,415)($10,936)($11,483)($12,057)($12,660)($13,293)($13,958)($14,656)($15,388)Electricity$0.560kWh$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($8,036)($8,398)($8,724)($9,120)($9,534)($9,967)($10,421)($10,897)($11,394)($11,915)($12,461)($13,033)($13,632)($14,259)($14,915)($15,603)($16,324)($17,079)($17,870)($18,698)Annual Operating Cost Savings$4,144 $4,391 $4,703 $4,979 $5,270 $5,577 $5,900 $6,241 $6,600 $6,979 $7,378 $7,798 $8,241 $8,707 $9,199 $9,717 $10,262 $10,837 $11,441 $12,079Accumulated Cash Flow$4,144 $8,535 $13,238 $18,217 $23,488 $29,065 $34,965 $41,206 $47,806 $54,785 $62,162 $69,960 $78,201 $86,909 $96,108 $105,824 $116,087 $126,923 $138,365 $150,443Net Present Value($8,097) ($3,958)$346 $4,770 $9,316 $13,987 $18,784 $23,711 $28,770 $33,963 $39,292 $44,762 $50,373 $56,130 $62,034 $68,090 $74,298 $80,664 $87,189 $93,876Energy UnitsHeating Source ProportionEconomic Analysis ResultsInflation RatesDescription Unit CostAnnual Energy Units Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. Appendix C Site Plan Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. Site Plan of Nondalton Village Center St. Nicholas Church Community Building New Clinic Ambulance Building Post Office Triplex Building Teacher Housing Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. Site Plan of Nondalton Village Center Tribal Office Building Shed Shed Feasibility Assessment for Biomass Heating Systems Nondalton, AK Coffman Engineers, Inc. Appendix D AWEDTG Field Data Sheet