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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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.
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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.