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HomeMy WebLinkAboutWales Biomass Feasibility 2012-BIO1 | P a g e This feasibility assessment considers the potential for heating community buildings in Wales, Alaska with woody biomass Funding for this report was provided by Alaska Energy Authority and USDA Forest Service Wales Biomass Energy Feasibility Study Dalson Energy, Inc. 308 G St. Ste 303 Anchorage, Alaska 99501 907-277-7900 8/14/2012 2 | P a g e Contents Contacts ........................................................................................................................................................................ 3 Executive Summary ................................................................................................................................................. 5 Regional Biomass Information ............................................................................................................................ 5 Available Fuels ........................................................................................................................................................... 6 Site Specific Analysis: IRA Office and Community Building .................................................................... 8 General Description of Opportunity and Challenges ............................................................................ 8 Technology or Installation Options Assessed .......................................................................................... 8 Project chart ...................................................................................................................................................... 9 Preliminary Cost Estimating.................................................................................................................... 10 Economic Analysis ....................................................................................................................................... 11 General perspective of project viability, and recommended next steps .................................... 13 Conclusion ................................................................................................................................................................ 13 3 | P a g e Contacts Native Village of Wales PO Box 549 Wales, Alaska 99783 907-664-3062 waa@kawerak.org Sean Komonaseak, Sr, President, Native Village of Wales (NVW) Winton Weyapuk Jr, NVW Board Member, President of Wales Native Corporation Larry Sereadolook, Water Plant Operator, TelAlaska agent, WNC Council Member Gene Angaboogok Ryan Ongtowasruk Pete Sereadolook Marie Ningealook Community members Kawerak: Walter Rose, Energy Planner, Simon Strickling, Planning Specialist NSEDC: Paul Ivanoff, Unalakleet Jerry Ivanoff,, Unalakleet Stirling Gologergen -Nome 443-2477, Community Benefits Coordinator Trip Summary Thomas Deerfield (Consultant) traveled to Wales in early July, 2012, and met with Sean Komonaseak, Jr. the President of Native Village of Wales (NVW), along with several other NVW staff and community members. In addition to the Community meeting, he surveyed potential buildings, including the Village IRA building, the Clinic and the Washateria. The School was closed and the Principal and maintenance staff were not available to open it up for inspection. Consultant hired several local community members to make up a site visit team, including the rental of a boat and ATV. With local assistance, the team toured the coast by open skiff boat and then by 4-wheel ATV up and down the coastline from Wales Village. Uncommonly good weather and visibility allowed the team to see well from offshore as well as the driving and walking coastal survey. Consultant also chartered a flight up and down the coast at low levels for 4 | P a g e aerial visual observation and photography. On-shore survey included taking MC (moisture content) measurements and photographs of numerous logs and driftwood accumulations. Consultant compared these observations and recordings to similar surveys recently done by Dalson Energy at other locations in Norton Sound—Stebbins, St Michaels, Stuart Island (aka Egg Island), Unalakleet, Nome, Elim, etc. 5 | P a g e Executive Summary Analysis completed in the report suggests that heating of community buildings with biomass is not likely to be viable from local wood sources, except as a small auxiliary form of heat. The only locally available biomass fuel is coastal driftwood and is limited. Pellets could be imported, and there are (allegedly) vendors able to barge in cordwood from upriver forest sources (Yukon River). Consultant was unable to get any firm quotes for price and availability for imported cordwood. Transport down the river delta to tidewater and then up the coast to Tin City or Wales is a very challenging proposition. Pellets are available in-State from North Pole and Ketchikan, and could be shipped to ports for water-transfer to Wales. Outside pellets are also available from Canada and the Pacific Northwest. The extremely high delivery costs of pellet fuels appear to make that option unrealistic, at this point. Converting community buildings in the Village to wood heating systems would require several times more cordwood than has traditionally been cut from local beaches, and that would likely create competition with the local personal-use firewood cutters. It is also very unlikely that a sustained “recharging” of the driftwood supply would be reliable over the life of a biomass system, when specific patterns of ocean current and storms drive the accumulation of driftwood on the beaches near Wales. Specifically, Dalson Energy estimates that a cordwood system of the scale necessary to heat the community IRA building would require up to about 40 cords annually of seasoned firewood, or 40 tons of pellets. The basic equipment necessary to harvest 40 cords of wood would include a tracked or 4WD wheeled tractor or forwarder, at least one or two trailers and a 4WD truck, a firewood processor, preferably with a shear-head (rather than a saw) and a small bobcat for village transport. Additionally, several chainsaws and all related safety equipment, and a large collection of saw -chains and files would be required. The salt and sand embedded in driftwood is especially hard on chainsaws. Regional Biomass Information Regionally available biomass is coastal driftwood. There are no significant river deltas (with upstream forests), anywhere near the point of the peninsula. Therefore the driftwood logs near Wales appear to be coming from much farther distances. For comparison, the driftwood collections in Norton Sound villages have the benefit of the Yukon and Kuskokwim Rivers transporting thousands of tons of wood from upriver forests. 6 | P a g e The species observed as driftwood logs near Wales appeared to be mostly Spruce, Poplars, Aspen, Willow and Alder. Most logs were stripped of all bark, weathered and very difficult to determine age or species with accuracy. The salt content of saltwater driftwood is also an operational issue, since the combination of salt and (combustion) heat creates acids that are especially hard on steel and refractory materials. Boiler manufacturers typically void the warranties on their equipment when saltwater driftwood is being burned in their boiler systems. Available Fuels Cordwood There are no local commercial firewood suppliers. Local community members estimate that they harvest a total of 4-10 cords per year in total. Consultant notes the typically wide variation in the village definition of the volume in a cord of wood. Consultant was told that there are just 4 currently operating woodstoves in the village. Harvesting and processing of these resources is traditionally done by a few individuals from Wales using open skiff boats, 4-wheelers pulling small trailers, chainsaws, winches and ropes. The process is very labor-intensive, given the widespread location of the solid logs and the difficulty of the terrain—sandy and rocky beaches, creek crossings, shore-side lakes and impassible bluff coastline areas. Dalson Energy conducted a survey of available driftwood during the site visit. Although there are significant driftwood piles and collections on beaches within 10 miles in either direction from the village, most of it is widely dispersed and of widely varying age and quality, judged as potential firewood. 7 | P a g e Figure 1: Driftwood on coast of Wales. Pellets The option to import pellets was considered, as the already high cost of imported fossil fuels tends to justify the import of alternatives that were formerly considered too costly. Pellet boilers are relatively simple to operate and maintain, the fuel can be stored in an annual supply, and the systems can be either (radiant heat) stoves or (hydronic) boilers tied into existing oil systems. As there is no port in Wales, oil is delivered by barge and pumped through a floating hose from off-shore fuel barges. Pellets or cordwood would have to be delivered by beach landing craft and hand-loaded for transfer to local storage. For that reason, (40 pound) bagged pellets (or small bundles of cordwood) are likely the only current method available for shipping. Most other imported commodities are shipped by small aircraft, and the high weight and volume of pellets or cordwood make that option unlikely to be viable. 8 | P a g e Current costs of pellet fuels are in the range of $300 to $400/ton delivered to a port in Anchorage, Seward, or Valdez. Shipping to Tin City or Wales was quoted at over $1,000/ton. Site Specific Analysis: IRA Office and Community Building General Description of Opportunity and Challenges The Consultant was asked to assess the viability of heating the community building with a biomass heating system: the IRA Office and Community Building. The IRA (Indian Reorganization Act) building in Wales is typical of IRA buildings in many other Interior communities. It is approximately 7 years old, has moderate insulation, large windows, no HRV (heat recovery ventilator), and could benefit from further weatherization upgrades. The representative of the community, NVW President Sean Komonaseak, is very interested in reducing the heating costs for the building to ensure its long-term viability as a community resource. The facility is approximately 4,000 square feet, has offices and meeting space, sleeping rooms for guests, a full kitchen and modern bathrooms, however no running water or sewer service. Maintenance appears to be adequate, however the building’s energy use could be improved by weatherization upgrades, including more insulation, door and window seals, and better ventilation, ideally in the form of an HRV. Technology or Installation Options Assessed If the project building were to offset a high percentage of its heating oil usage with biomass, it would require an estimated 40 cords of firewood or 40 tons of pellets. Dalson Energy always recommends that the most realistic goal is to offset a high percentage of fossil fuel use, but it is not wise to attempt 100% offset. In all cases, the recommendation is to maintain the existing oil system for peak use, backup and in case of shorta ge of biomass fuel for any period in the future. Given feedback from the community members and the driftwood survey, it appears unlikely that a biomass heating project would be able to reliably procure 30-40 cords of wood annually from local sources, especially without endangering the personal-use firewood supply. Imported cordwood, although allegedly available, was not considered due to inability to obtain a quote from any regional vendor, and the obvious challenges of beach delivery and transport. Therefore, imported wood pellets were the only option considered. Current transportation costs appear to make that option unrealistic as well. 9 | P a g e Project chart Building Name IRA Office and Community Building Building Owner Sean Komonaseak, Sr, President, Native Village of Wales (NVW) Contact Information 907-664-3062 Square Footage 4100 square feet Gallons per year 5,280 gallons PRELIMINARY SITE INVESTIGATION What feedback did staff offer on the current heating system?Functional, expensive to operate. What is the staff or building manager's interest in biomass heating?Interested but curious about how it might work. Description of current heating system oil-fired hydronic boiler Available space (within existing structures or space for newly constructed building)no Street access good Delivery access Pellets or cordwood would have to be delivered by beach landing craft and hand-loaded for transfer to local storage. For that reason, (40 pound) bagged pellets (or small bundles of cordwood) are likely the only current method available for shipping. Fuel storage space Would need be be incorporated into a container. Building or site constraints (topography, permitting, historical preservation, etc.)No available developed space. Options for biomass boiler system (fuel type, technology type, building type) Loads would justify a cordwood or pellet heating system. Estimated boiler size: 165,000 btu/hr 10 | P a g e Preliminary Cost Estimating Initial investment: Wales IRA Office & Community Building Biomass System System Rating -- Btu/hr 164,000 btu/hr Buffer tank 380 gal. footnote notes A $ 60,000 Pre-Fabricated Boiler System Base price B 186,000$ Shipping to Port City C 20,000$ Local delivery C 10,000$ C 2,500$ C 4,500$ Installation C 9,000$ 292,000$ Rural and Remote Factor -- 15% 43,800$ 58,400$ 394,200$ C 31,536$ 8% of B&E C 23,652$ 6% of B&E pre-approved C 4,000$ C 31,536$ 8% B&E Subtotal -- Soft Costs 83,728$ Recommended Project Budget -- Design and Construction Costs 446,128$ Footnote Square bulk silo or pre-fabricated building with V-shaped storage trough A B Based on quotes from viable suppliers C Estimate Subtotal-B&E Costs Contingency -- 20% Grand Total Construction Management Soft Costs $ Project Management A/E Design Services Fire Marshall Plan Review Equipment Commissioning and Training Building and Equipment Costs (B&E) $ Pellet storage structure Site Prep Plumbing and electrical 11 | P a g e Economic Analysis AEA B/C Model_Wales IRA Office & Community Building Project Description Community Nearest Fuel Community 11 Region RE Technology Project ID Applicant Name Project Title Category Results NPV Benefits $114,397 NPV Capital Costs $402,574 Low 900$ B/C Ratio 0.28 Med 1,000$ NPV Net Benefit ($288,177)High 1,200$ Performance Unit Value Displaced Electricity kWh per year - Displaced Electricity total lifetime kWh - Displaced Petroleum Fuel gallons per year 5,280 Displaced Petroleum Fuel total lifetime gallons 132,000 Displaced Natural Gas mmBtu per year - Displaced Natural Gas total lifetime mmBtu - Avoided CO2 tonnes per year 54 Avoided CO2 total lifetime tonnes 1,340 Proposed System Unit Value 1 Capital Costs $402,574$ 2 Project Start year 2013 3 Project Life years 25 Displaced Electric kWh per year - 4 Displaced Heat gallons displaced per year 4,224 Displaced Transportation gallons displaced per year 0.00 10 Renewable Generation O&M$ per BTU 0.000015 Electric Capacity kW 0 Electric Capacity Factor %0 Heating Capacity Btu/hr.165,000 Heating Capacity Factor %86 Wales Wales Rural Woody biomass heat Native Village of Wales Wales IRA Building 12 | P a g e Heating Units 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Renewable Heat gallons displaced per year- - - - - 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 Entered Value Renewable Heat Scheduled Repairs $ per year -$ -$ -$ -$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ Entered Value Renewable Heat O&M $ per year -$ -$ -$ -$ -$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 6 Entered Value Renewable Fuel Use Quantity (Biomass)green tons -$ -$ -$ -$ -$ 32 32 32 32 32 32 32 32 32 32 7 Entered Value Renewable Fuel Cost $ per unit -$ -$ -$ -$ -$ $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Total Renewable Fuel Cost $ per year -$ -$ -$ -$ -$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ Proposed Heat Cost $ per year -$ -$ -$ -$ -$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ Fuel Use gallons per year - 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 Fuel Cost $ per gallon $7.00 $7.14 $7.28 $7.43 $7.58 $7.73 $7.88 $8.04 $8.20 $8.37 Entered Value Fuel Scheduled Repairs $ per year -$ -$ -$ -$ -$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ Entered Value Fuel O&M $ per year -$ -$ -$ -$ -$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ Fuel Cost $ per year -$ -$ -$ -$ -$ 36,960$ 37,699$ 38,453$ 39,222$ 40,007$ 40,807$ 41,623$ 42,455$ 43,305$ 44,171$ Base Heating Cost $ per year -$ -$ -$ -$ -$ 37,910$ 38,649$ 39,403$ 40,172$ 40,957$ 41,757$ 42,573$ 43,405$ 44,255$ 45,121$ Proposed Base Heating Units 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 PV Renewable Heat gallons displaced per year4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 4,224 Entered Value Renewable Heat Scheduled Repairs $ per year 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ 320$ $5,572 Entered Value Renewable Heat O&M $ per year 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ 8,000$ $139,305 6 Entered Value Renewable Fuel Use Quantity (Biomass)green tons 32 32 32 32 32 32 32 32 32 32 32 32 32 32 32 7 Entered Value Renewable Fuel Cost $ per unit $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 Total Renewable Fuel Cost $ per year 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ 32,000$ Proposed Heat Cost $ per year 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ 40,320$ $702,098 Fuel Use gallons per year 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 5,280 Fuel Cost $ per gallon $8.53 $8.70 $8.88 $9.06 $9.24 $9.42 $9.61 $9.80 $10.00 $10.20 $10.40 $10.61 $10.82 $11.04 $11.26 $11.48 Entered Value Fuel Scheduled Repairs $ per year 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ 200$ $3,483 Entered Value Fuel O&M $ per year 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ 750$ $13,060 Fuel Cost $ per year 45,054$ 45,955$ 46,874$ 47,812$ 48,768$ 49,743$ 50,738$ 51,753$ 52,788$ 53,844$ 54,921$ 56,019$ 57,139$ 58,282$ 59,448$ $799,953 Base Heating Cost $ per year 46,004$ 46,905$ 47,824$ 48,762$ 49,718$ 50,693$ 51,688$ 52,703$ 53,738$ 54,794$ 55,871$ 56,969$ 58,089$ 59,232$ 60,398$ $816,495 Proposed Base 13 | P a g e General perspective of project viability, and recommended next steps The original idea of using locally sourced driftwood as fuel for a biomass heating system for the Wales IRA building does not appear to be viable. The cost of imported fuel oil (currently at $7/gallon) could justify the import of pellet fuel, despite the high cost and logistical challenges, however due to the lack of existing infrastructure or other customers in the region, shippers are quoting delivery costs from Anchorage in excess of $1,000/ton. Wales could apply for a woodstove to supplement heat in the IRA building. Wales may also need small-scale equipment to more efficiently harvest and process the limited driftwood that is available, however harvest equipment is not eligible for the Renewable Energy Fund. A short list of equipment might involve an ATV with a heavy-duty winch and cable, an ATV cordwood trailer and a couple chainsaws with extra chains and chain sharpening tools, as well as safety equipment. Grant programs will usually fund safety and operator training as well. If NVW chooses to take those next steps toward biomass heating, the recommendation is to apply for a Renewable Energy Fund grant from AEA. Deadline is September 24, 2012. The AEA website is: www.akenergyauthority.org/ Additionally, the Consultant notes that NSEDC (Norton Sound Economic Development Council) has a Community Energy Fund with $1Million dollars designated for energy projects in Wales. There have been no applications for these funds to date, according to Paul Ivanoff, Grant Program Coordinator. NSEDC believes that small wind systems may be viable, if they are more correctly sized to mini-grids and are more easily operated and maintained than large wind turbines (of the scale that KEA installed), similar to the systems successfully deployed in Shaktoolik and Pedro Bay. Any grant applications, either to AEA or NSEDC will require full written collaborative agreement between the City, Tribe and Corporation. In other words, the community must find the path to full collaboration, and speak with one unified voice. Anything less will not qualify for assistance from either agency. The potential benefits to the community are great, and the incentives are rich. Conclusion Biomass energy systems, at a scale beyond small wood stoves, have not been deployed to date in remote coastal communities, due to the logistical and financial challenges of fuel acquisition. However, as fossil fuel costs escalate, and as the biomass industry and infrastructure evolve in Alaska, new opportunities are emerging. The renewable aspect of biomass fuels will tend to stabilize the overall costs per delivered BTU for space heating, so even as the harvest, processing and transportation costs of 14 | P a g e biomass fuel will be incrementally affected by escalating fossil fuel costs, the net effect will be more stable biomass fuel price when compared to fossil fuel costs. Wales is located in a very difficult place to justify importation of fuels that are any less BTU- dense than fossil fuels. The single best recommendation is to tighten up the buildings with weatherization and energy efficiency measures. Hopefully the transport of biomass fuels will become more widespread and therefore less costly, over time. Meanwhile, Dalson Energy recommends energy audits, energy efficiency upgrades and community unification for the seeking of available grant funding for other options, specifically small scale wind turbines, with battery and hot water storage. 15 | P a g e About the Consultant Dalson Energy is a Renewable Energy Consulting and Technology Research firm based in Anchorage, Alaska. Dalson Energy staff and partners have decades of experience in construction project management, project development consulting and renewable energy technology research. Dalson Energy teams with licensed engineers, architects and designers in Alaska, Canada and Lower 48. Dalson Energy has worked with Alaska Energy Authority, Alaska Center for Energy & Power, University of Alaska Fairbanks, Washington State CTED (Community Trade & Economic Development) and California Energy Commission on biomass energy technology research. Dalson Energy’s President, Thomas Deerfield, has been involved in biomass energy RD&D since 2001, winning grants and managing projects with NREL (National Renewable Energy Labs), USFS (US Forest Service), and CEC (California Energy Commission). Thomas managed the field-testing of biomass CHP systems, including the first grid- connected biomass gasification CHP system in the U.S. (2007). Thomas coordinated the design and creation of the first prototype Biomass “Boiler in a Box” in Alaska, in 2010. That Garn-based system is now installed in Elim, in the Bering Sea region. Thomas founded Shasta Energy Group (SEG), a 501c3 nonprofit, and managed wind energy research, biomass energy feasibility studies, energy efficiency for buildings, and hydronic heating system research design and development (RD&D). He also initiated a rural economic development think tank and has engaged his writing skills to assist many other renewable energy project initiatives. Wynne Auld is a Biomass Energy Specialist with Dalson Energy. She focuses on assessing opportunities for woody biomass heating, and assisting communities in developing wood energy projects. Over the past few years she has supported the business development of integrated biomass energy campuses in Oregon and Idaho, especially related to their energy initiatives. Her efforts have included marketing Campus biomass heating products to m ajor wholesalers and retail buyers, and planning and developing Campus sort yards.