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Home My WebLink AboutBiomass Heating Chatham School District KlukwanSchool Wisewood Energy 07-2017-BIO WISEWOOD ENERGY • Technology in Service of Community and Environment Biomass Heating for Chatham School District - Klukwan School JULY 2017 • KLUKWAN, AK PREPARED FOR CHATHAM SCHOOL DISTRICT PO Box 109 Angoon, AK 99820 FUNDED BY THE FAIRBANKS ECONOMIC DEVELOPMENT CORPORATION BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 Table of Contents Executive Summary ........................................................................................................................................... 1 1 Existing Site Features ................................................................................................................................ 2 1.1 Klukwan Site Visit ................................................................................................................................... 2 1.2 Site Features and Existing Systems ....................................................................................................... 2 2 Biomass Technologies Assessed ............................................................................................................... 3 2.1 Energy Model and Boiler Sizing ............................................................................................................ 3 2.2 Boiler Technologies and Fuel Types ..................................................................................................... 4 2.3 Select Wood Chip Boiler - Recommended ........................................................................................... 5 2.4 Cordwood Boiler ................................................................................................................................... 5 2.5 Pellet Boiler ........................................................................................................................................... 6 2.6 Containerization and Fuel Storage ........................................................................................................ 7 2.7 Site Location and Interconnection ......................................................................................................... 8 2.8 Air Quality .............................................................................................................................................. 8 3 Project Economics ..................................................................................................................................... 9 3.1 Preliminary Operating Costs .................................................................................................................. 9 3.2 Preliminary Capital Costs ....................................................................................................................... 9 3.3 Economic Analysis ............................................................................................................................... 10 3.4 Sensitivity Analysis ............................................................................................................................... 12 4 Fuel Supply Assessment .......................................................................................................................... 14 4.1 Yukon Territory Wood Chips ............................................................................................................... 14 4.2 Haines State Forest Wood Chips ......................................................................................................... 15 4.3 Cordwood ............................................................................................................................................ 15 4.4 Wood Pellets ....................................................................................................................................... 15 5 Conclusions and Next Steps .................................................................................................................... 16 5.1 Opportunities and Obstacles .............................................................................................................. 16 5.2 Next Steps – Detailed Engineering and Construction Funding .......................................................... 16 6 General Biomass Information .................................................................................................................. 18 6.1 Wood Fuel Quality .............................................................................................................................. 18 6.2 Biomass Boiler Types ........................................................................................................................... 18 BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 List of Appendices Appendix A – AWEDTG Field Data Sheet Appendix B – Facility Photos Appendix C – Energy Models for Wood Chip, Cordwood, and Pellet Systems Appendix D – Preliminary Site Plan Appendix E – Preliminary Estimated Operating Costs for Wood Chip, Cordwood, and Pellet Systems Appendix F – Preliminary Capital Costs for Wood Chip, Cordwood, and Pellet Systems Appendix G – Life Cycle Cost Analyses for Wood Chip, Cordwood, and Pellet Systems, 20- and 25-year Appendix H – CE2 Engineers Haines Borough Wood Source Report (2009) BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 1 Executive Summary The Klukwan school and gym is located in the Chilkat Indian Village along the Chilkat River, just over twenty miles north of Haines, Alaska. Klukwan is one of four communities across the northern end of Southeast Alaska included in the Chatham School District and currently serves 13 K-12 students. In March 2017, Wisewood Energy was selected to conduct a biomass feasibility assessment for the Klukwan school and gym, funded by the Fairbanks Economic Development Corporation (FEDC). The main school building is 10,500 square feet and was built in 1983. Two oil-fired boilers and baseboard heaters distribute heat via hot water to the building, which is supplemented by a hot water-coil air handler (also supplied by the boilers). The school uses approximately 9,000 gallons of heating oil per year at an average cost of $30,000. The adjacent school gym is 6,000 square feet and was built in 2007. Two oil-fired, forced air furnaces heat the two-story building, using approximately 3,600 gallons of fuel oil per year at an average cost of $12,000. Together, the school and gym consume an average of 1,817 MMBtu per year and an estimated 14,139 kWh of electricity (for heating, boiler, and controls power only, or “ancillary use”). Converting the Klukwan school and gym is technically and spatially feasible. A 500 MBH biomass boiler would provide sufficient heat and can be containerized to minimize on-site construction and disturbance to the site. The containerized biomass system may be located west of the gym or elsewhere along the north side of the two buildings. Piping from the biomass boiler would tee into the school heating system through the mechanical room at the north side of the building and distribute heat via the existing hot water distribution system. Hydronic unit heaters would need to be installed in the gym. Biomass boilers can be fueled by cordwood, wood pellets, or wood chips. In this case, Wisewood Energy recommends a “select” wood chip system. While cordwood is estimated to be more expensive than wood chips, lower cordwood boiler capital costs make the two systems similar in terms of economic payback. Like pellet boilers, select chip boilers have automatic ignition and can operate with minimal maintenance labor. In contrast, cordwood boilers require manual stoking, which can be challenging for personnel to consistently provide, and work best when producing low-temperature water, which would require retrofitting some of the school’s existing heat distribution infrastructure. Wood chips can be sourced now from the Yukon Territory, and from the Haines State Forest over the long-term. The Haines Borough is also currently developing a wood chip biomass system, which may lend economies of scale and shared knowledge of best practices. If the Chatham School District is confident it can provide adequate staffing, cordwood is a second option. Of the three fuel types, pellets are prohibitively expensive and must be imported from Juneau or elsewhere. Both the proposed wood chip system and the cordwood system are estimated to pay back in 23 years, which is beyond the 20-year period typically considered in life cycle cost assessments. However, converting to a biomass heating system contributes to more stable budgeting as it is less subject to unpredictable fluctuations in fossil fuel prices, keeps more dollars in the local area, and increases energy independence. Additionally, both a wood chip and cordwood boiler become economical in a 20-year period with lower wood fuel costs ($85/ton chips or $130/ton cordwood), or if oil prices were to rise just 9.5% from today’s price to $3.55/gal. Capital cost savings also improve system economics. As such, it is Wisewood Energy’s opinion that the school is a good candidate for conversion to biomass. BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 2 1 Existing Site Features The Klukwan School and Gymnasium is a combined elementary, middle, junior, and senior high school currently serving 13 students. Part of the Chatham School District, the Klukwan school and gym is located in Klukwan, Alaska, along the Chilkat River and Haines Highway. Although Klukwan is a remote rural community, it has easy access to nearby Haines. Like other areas in southeast Alaska, the Klukwan/Haines area has temperate weather conditions with moderate/heavy precipitation, much of this falling as snow during the winter. Both the school and gym are included in this assessment. 1.1 KLUKWAN SITE VISIT Wisewood Energy conducted a site visit to the Klukwan school and gym on May 18, 2017. During the site visit, Wisewood staff met with the school facilities manager, head teacher, and a Chatham School District school board member to tour the site and discuss the existing conditions. A community meeting was also held at the Chilkat Indian Tribe offices in Klukwan, where staff discussed the biomass project with Tribal leaders and answered questions. The completed field data sheet is included in Appendix A and a representative sample of facility photos are included in Appendix B. 1.2 SITE FEATURES AND EXISTING SYSTEMS The Klukwan school’s main building is a single-story, vaulted-ceiling, 10,500-square foot facility with significant glazing (windows), built in 1983. For space heating, it uses two Weil-McLain oil-fired boilers and baseboard heaters distributing hot water. These boilers together consume approximately 9,000 gallons of fuel oil per heating season at a cost of approximately $30,000. Both boilers are Model 80, Series 1; they each have 4 cast iron sections and are thus designated 480 models. They were installed in 2013 and are in good condition. Hot water is distributed through piping under the floor to fin-tube baseboard heaters, which are supplemented by a hot water-fired air handler (supplied by the oil boilers) located on the east side of the building. Domestic hot water is provided by a direct oil-fired, single-tank unit to the bathrooms and kitchen. School staff note that the largest issue with the existing heating system is poorly functioning thermostats. A renovation is planned for the summer of 2017 to install new zone valves and circulation pumps to improve heat distribution; LED lights will also be installed to improve efficiency. The Klukwan school gym is a 6,000-square foot, two-story building built in 2007 and located adjacent to the school. Forced air systems supply heat to the north and south sides of the building from two Thermo Products oil-fired furnaces. Together, these furnaces consume approximately 3,600 gallons of fuel oil per heating season at a cost of approximately $12,000. Each furnace is controlled by its own thermostat, located in the gym. The furnaces are in good condition and require minimal maintenance. School staff provided Wisewood Energy with billing records of the fuel oil consumption for both the school and gym for the years 2014-2016. Together, the school and gym consumed an average 1,817 MMBtu per year and an estimated 14,139 kWh of electricity (for heating, boiler, and controls power only, or “ancillary use”). BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 3 2 Biomass Technologies Assessed 2.1 ENERGY MODEL AND BOILER SIZING To calculate the thermal energy demand for a given building, Wisewood Energy uses an energy model that incorporates key data inputs such as existing annual energy consumption, an estimate of the efficiency of existing energy sources, and operating schedules. The model is used to calculate the optimal biomass boiler size, which is defined as the boiler system that offsets the maximum fossil fuel consumption without being oversized. Typically, biomass boilers are sized to meet less than 100% of total demand, with the backup fossil fuel system providing the remaining 5-10% of demand, generally at peak- and low-load times. This is done because fossil fuel boilers can respond much more quickly (and thus more efficiently) to rapid changes in demand, such as during late spring and early fall “shoulder” heating seasons when occasional space heating is the primary demand source. Wisewood Energy’s preliminary energy model calculated an ideal total biomass boiler capacity of approximately 500 MBH (147 kW), which would provide 94.5% of annual heating needs. Peak load for the school is estimated at 861 MBH. The existing Weil-McLain oil-fired boilers in the school and the Thermo Products furnaces in the gym would be left in place to supplement the biomass system and provide backup. The graph shown below depicts the total energy demand a 500-MBH biomass system would cover, and is applicable to a wood chip, cordwood, or pellet system, although energy savings in each scenario will differ due to differences in wood fuel costs, moisture content, and energy content. The full energy models for the three systems are included in Appendix C. FIGURE 1 Energy model results for a 500-MBH biomass boiler system serving the Klukwan school and gym. The biomass system would provide approximately 94.5% of the facility’s annual heating needs (shown in green), while the remaining 5.5% would be provided by the existing oil boilers during the peak and shoulder seasons (shown in grey). 0 100 200 300 400 500 600 700 800 900 1,000 September October November December January February March April May June July AugustAverage Hourly Heat Demand (MBH)Calculated Heat Load (MBH)Estimated Biomass Boiler Load Coverage (MBH) BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 4 Most boilers have a “turndown ratio” in the range of 0.25-0.33; that is, they can efficiently modulate their outputs to provide as low as 25% of their total load capacity. Generally speaking, loads below this amount would be met by the backup boiler/supplemental heating system, while the biomass boiler is shut down until demand is above the turndown ratio percentage. By adding a thermal storage component to the system, however, biomass boilers may effectively lower their turndown ratios to as little as 0.125 by providing a receiver for thermal energy from the biomass system, even when end users do not have high demand. If and when end user demand does spike, either the thermal storage tank can supply hot water immediately, or the boiler can ramp back up to provide continuous heat. Wisewood Energy recommends a thermal storage tank of approximately 500 gallons for a 500MBH system at the Klukwan school and gym if wood chips or pellets are used (the cordwood boiler has internal thermal storage, so may not require a secondary tank). 2.2 BOILER TECHNOLOGIES AND FUEL TYPES A key benefit of biomass energy systems is a typically lower cost per MMBtu of thermal energy compared to conventional fossil fuels. Wood fuels also tend to have more stable long-term costs than fossil fuels, whose costs can fluctuate unpredictably. Finally, biomass systems can support the local or regional economy by using locally procured fuel, which can support local jobs, provide economic opportunities for community members, and keep money circulating in the local economy rather than exporting it to purchase fossil fuels. Different wood fuels have different implications for the benefits described above and differ in their maintenance requirements. For this study, Wisewood Energy considered biomass systems fueled by wood chips, cordwood, and wood pellets. Table 1 below shows the relative delivered price for each fuel, including existing fuel oil, based on available information in the area. Wisewood Energy recommends a wood chip boiler system because the cost of fuel is significantly lower than pellets and slightly lower than cordwood, it requires little active maintenance compared to cordwood systems (which require manual stoking), and the technology would align with similar wood chip technology being developed for a planned Haines Borough biomass district heating system. If the School District would like to procure fuel more directly from the local community, potentially creating economic opportunities, and is also confident that reliable staffing of the boiler could be accomplished, a cordwood boiler is a second option. All three systems considered are described in more detail below. TABLE 1 Comparison of estimated fuel costs for fuel oil, wood chips, cordwood, and pellets. *See Section 2.4, Table 2 for conversion of cordwood price per cord to price per ton to facilitate comparisons. FUEL OIL WOOD CHIPS CORDWOOD PELLETS Price/Unit (Delivered) $3.24/gal $124/ton $165/ton* $430/ton Price/MMBtu $29 $10 $13 $28 Moisture Content NA 20% 20% 5% Annual Consumption 12,723 gal 119 tons 119 tons 98 tons Fuel Cost/Year $41,215 $14,756 $19,635 $42,140 BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 5 2.3 SELECT WOOD CHIP BOILER - RECOMMENDED Wisewood Energy recommends a Fröling T4 150 (150kW) wood chip boiler system for the Klukwan school and gym, which is also capable of utilizing pellets. “Select” wood chips lay on the fuel quality and cost spectrum between minimally processed “hog fuel” wood chips and densified wood pellets. Wood chip boilers have automatic ignition and fuel is automatically fed into the boiler from storage as needed, requiring little active maintenance. Of paramount importance in any select chip system is the fuel specification. Wood chip boilers range in the fuel moisture content and particle size that they are capable of handling and efficiently combusting. Using fuel that lies outside of the designated fuel specification can incur additional maintenance costs, reduce combustion efficiency, and reduce the lifespan of the equipment. As such, project champions must be confident that fuel providers can supply the appropriate fuel quality for the system. If wood processing equipment and capable operators are not available to consistently supply an acceptable fuel specification, wood pellets or cordwood systems may be more appropriate technology options. In this case, Klukwan has an opportunity to benefit from biomass energy developments in Haines. While several pellet boilers exist in Haines, the Haines Borough is planning a district energy facility utilizing wood chips that would provide heat to multiple community buildings. As the design consultant for the Haines Borough, Wisewood Energy is recommending a Fröling TM 500 (500kW) biomass system that will utilize a 2” minus, 45% moisture content wood chip. The Fröling T4 150 (150kW) boiler that Wisewood Energy recommends for Klukwan will accept 2” minus wood chips with up to 30% moisture content. While the proposed Haines boiler system can accept a wider fuel specification than the boiler proposed for Klukwan, Wisewood Energy does not recommend the two systems utilize the same boiler due to their significant total load differences (heating multiple large customers in Haines versus serving only the school and gym in Klukwan). There is no boiler as small as 150kW for Klukwan that can accept the wider fuel specifications that Haines may use (45% moisture content and 4” minus size). If Klukwan selects a wood chip boiler, the neighboring systems can potentially source wood chip fuel from the same provider and benefit from coordinated purchases. For example, a wood chip delivery truck could supply a partial load to Haines, then continue down the highway to finish unloading at Klukwan, gaining each system an economy of scale for deliveries. In this case, the narrower Klukwan boiler specification would be the driving factor for procured wood chip quality. Wisewood estimates a delivered select chip price of $124 per ton, or $10 per MMBtu, sourced from fuel providers in the Yukon Territory. This price can be expected to decrease if and when the Haines Borough develops local wood chip processing capacity. 2.4 CORDWOOD BOILER Should the Haines Borough decide not to move forward with a select chip biomass district heating system, or should the Klukwan school wish to support more local economic development, a Garn 3200 cordwood boiler may be a good option. Cordwood is readily available in and around Klukwan and heating with this fuel may create opportunities for community members to sell cordwood to the School District, which can bring beneficial economic development to the area. Wisewood Energy estimates that delivered cordwood is available for approximately $200 per cord based on personal communication with the State Forester and available information on firewood sales in the area. Using a calculation for energy content of seasoned BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 6 cordwood (see Table 2 below), Wisewood Energy estimates this price to be equivalent to approximately $165 per ton (assuming 20% moisture content), or $13 per MMBtu. TABLE 2 Inputs used to calculate an estimated price for delivered cordwood per ton in the Klukwan area assuming the species is spruce. Price of cordwood is estimated from available information on firewood sales in the area. INPUT VALUE Price of Delivered Cordwood ($/cord) $200 Moisture Content of Seasoned Cordwood (estimate) 20% Energy Content of Bone Dry Wood (Btu/ton) 16,400,000 Energy Content of Seasoned Wood (Btu/ton) 12,731,840 Energy Content of Seasoned Cordwood (Btu/cord) 15,300,000 Calculated Price of Cordwood ($/ton) $165 There are, however, drawbacks to cordwood systems. Most notably, cordwood boilers do not have automatic fuel feed and must be stoked by hand. While this may only be required every 12 hours through average heating periods, it could increase to every 4-6 hours in the coldest weather, including overnight. Additionally, cordwood systems work best with low-temperature heat emitters (100-120°F), while the current hot water distribution system in the Klukwan school requires high temperature water (160-180°F). Consequently, additional costs would be required for retrofitting some of the existing heat distribution system (not included in Wisewood Energy’s preliminary cost estimate, but may be in the range of $60,000-80,000) or the frequency of fuel loading will need to increase to keep the large water tank inside the Garn boiler above 160°F. In some cases, this level of constant maintenance may not be a problem, particularly if the School District wishes to provide economic opportunities in the community. However, if adequate and consistent staffing is not available, a cordwood boiler may not provide an effective long-term biomass solution. Additionally, due to its relatively low energy density, the volume of cordwood that would need to be stored for a full heating season could be as large as 45 feet square stacked 8 feet high, assuming tightly packed wood, which may not fit on the current Klukwan school property without compromising other site uses. Cordwood would likely be delivered straight from the forest, without being seasoned prior. This wetter wood may reduce the efficiency of the boiler if it is burned without seasoning; conversely, if on-site seasoning is desired prior to burning, even more storage may be needed to provide capacity for a rotating supply of relatively dry wood. 2.5 PELLET BOILER A Fröling T4 150 (150kW) chip boiler can also be run on pellets. Wood pellets are a very dry, dense biomass fuel source. They are compact, easily transported, and easily delivered/conveyed into storage facilities. Pellet boilers are simple, robust, and commonly used across Alaska, including several in nearby Haines. In the Klukwan region, however, delivered pellets can be up to $430 per ton, or $28 per MMBtu of thermal energy. BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 7 This may prove to be prohibitively expensive for the long-term operation of a biomass system at the Klukwan school and gym, and introduces risk to the project. If the supply is interrupted for any reason, the school may be left without a fuel source temporarily or be forced to pay even higher costs to an alternative supplier. For these reasons, and based on local sentiment that a local source of biomass is preferable, Wisewood Energy does not recommend a system that can only use wood pellets for the Klukwan school. 2.6 CONTAINERIZATION AND FUEL STORAGE Due to the remote location and size of the facilities at the Klukwan School, Wisewood Energy considered biomass technologies that can maintain their efficiency across a range of relatively small outputs and can be containerized (i.e. the systems can be designed into shipping containers). Containerized biomass boiler systems can be constructed off-site, then trucked to the site completely plumbed and ready to be placed on a concrete foundation. On-site installation requires only the foundation, supply and return piping and utilities between the container and existing facilities, and placement and connection of the containerized unit when it arrives. A select wood chip, cordwood, or pellet boiler can each be designed into one or two shipping containers. The container(s) would hold the boiler and auxiliary equipment, including thermal storage, and may also hold fuel. Should the boiler and fuel be housed together, a longer (40-45-foot) container would be required; if the fuel were housed separately, a shorter (20-foot) container may be sufficient. Depending upon the scenario, Wisewood Energy recommends using either standard 8.5-foot wide, or modified 11.5-foot containers, which are slightly larger than the standard size but can still be transported via highways without guide vehicles. To store fuel within the container for either a wood chip or pellet system, the container would be divided into a boiler mechanical room and an adjacent fuel storage area, utilizing a sweep arm to guide chips into a fuel conveyance system. If fuel storage outside of the container is preferred, an estimated 23-foot tall silo with a 15-foot diameter and sweep-arm auger is recommended. Fuel from the silo would be fed automatically into the boiler within the adjacent container. These storage scenarios both have capacity for approximately 10 tons of select chip fuel or 30 tons of pellets, sufficient for approximately two weeks (chips) or six weeks (pellets) of operations during the coldest part of the. In either case, fuel deliveries would require a self-unloading truck with either an auger or similar conveyance mechanism to deliver wood fuel to the top of the storage system or a live-bottom trailer that can unload into a fixed auger that would be designed into the system. The integrated boiler/fuel storage container system will likely be less expensive to construct than a separate fuel silo system because the relative expense of procuring a larger container (40-foot versus 20-foot) is lower than the additive cost of a separate silo. Additionally, pouring a single, uniform foundation for a larger container is easier than pouring two adjacent foundations for both a container and silo. The integrated container system can also be fully constructed off-site and delivered to Klukwan ready to be placed on the foundation; erecting a silo on site may incur higher labor costs, as well as additional freight costs. Fuel deliveries into the top of a 10-foot tall shipping container via wide hatches may also have reduced capital costs compared to the more complex auger and/or fuel feed trough system needed to reach the top of a 23- foot silo. In the case of a Garn cordwood boiler system, a shipping container can also be shared with fuel storage. A 40-foot shipping container is estimated to store approximately 10 cords (or about 15 tons) of wood, sufficient BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 8 for approximately one and a half weeks of operations during the coldest part of the year, which would not need to be physically separated from the boiler area by a constructed wall. The School District would need to determine whether additional covered storage is desired for cordwood, and how much; total annual demand is estimated to be 98 cords. While there appears to be available space adjacent to the proposed container location (west of the gym; see following section) to store a significant volume of cordwood, a full year’s worth may not fit on-site without compromising other site uses. Wisewood Energy’s capital cost estimate accounts for only the storage included in a containerized system; the final site selection for both a container and additional fuel storage should be determined in a subsequent design and engineering phase. Should a containerized cordwood boiler be selected for the Klukwan school and gym, the School District and its contractor would need to work closely with a shipping container fabricator to ensure the container is suitable for the total weights and dimensions of a cordwood boiler, which is larger and heavier than the chip and pellet boilers discussed above. Based on Wisewood Energy’s preliminary research, shipping containers do exist that have sufficient weight and space capacities; however, all aspects of the design should be finalized during a subsequent design and engineering phase, with review by a structural engineer to ensure its soundness for both travel and operations. 2.7 SITE LOCATION AND INTERCONNECTION Appendix D shows the proposed location of a containerized biomass system directly west of the gym. It is recommended that the shipping container currently located at this site is moved to minimize trenching and piping costs (there appears to be plenty of room in the parking lot area west of the gym for relocation). The biomass container may also be located elsewhere along the north side of the school and gym. Piping would be routed along the north side of the gym and school to connect to both existing heating systems. The existing shed can likely be avoided during pipe trenching; however, an existing, buried oil tank is located somewhere between the shed and school mechanical room, and would need to be identified and avoided in a final piping layout. Wisewood Energy is unaware of the condition or specifications of the existing oil tank; should the oil tank be disturbed during construction of the proposed biomass system, it should be reviewed for soundness and code requirements. These potential costs are not included in the cost estimates provided in this report. Piping can connect directly to the existing heat distribution system in the school, while hydronic unit heaters will need to be installed in the gym to receive heat from the system. 2.8 AIR QUALITY Typically, the emission of greatest concern for air quality from biomass energy systems is particulate matter, or fine particles of dust. In general, modern biomass boiler systems have approximately 20-50 times less particulate emissions than EPA-certified wood stoves and 50-100 times lower emissions than open pile burning. Furthermore, the type of select wood chip system recommended for the Klukwan school and gym features combustion technology that employs feedback from oxygen and temperature sensors in the combustion chamber and flue gas stream to optimize the air-to-fuel ratio, resulting in optimum combustion characteristics, even with slightly varying fuel quality. In Wisewood Energy’s experience, meeting the relevant permitting requirements is not a problem for these small-scale systems. BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 9 3 Project Economics 3.1 PRELIMINARY OPERATING COSTS Wisewood Energy compared the estimated costs of operating the existing oil boilers to provide space heat to the Klukwan school and gym for one year with the three assessed biomass energy systems, including fuel, labor, and maintenance. This comparison is summarized in Table 3 below, which shows year 1 savings of almost $26,000 for a wood chips system and over $15,000 for a cordwood system. The high cost of pellet fuel results in a year 1 loss compared to the current price of fuel oil. A full stabilized year estimate of operating costs for wood chips, cordwood, and pellets is included in Appendix E. TABLE 3 Comparison of estimated annual operating costs between existing heating systems and containerized select wood chip, cordwood, and pellet biomass boiler systems. Operations and maintenance activities are abbreviated “O&M”. All values are rounded to the nearest $100. Existing electricity costs were determined based on rate and consumption information provided by the School District for the years 2014 – 2016, and summarized on the AWEDTG data sheet (see Appendix A). Estimated electricity costs for the three biomass systems evaluated were based on the same rate information provided, as well as on estimates of the electrical consumption of each boiler and its ancillary equipment. The largest electricity use is generally from pumps and combustion fans, not the boiler fuel train itself; thus, because each boiler is similarly sized, the boiler type does not have a significant impact on relative electricity cost estimates. Electricity cost estimates and data points are included in the operating cost estimates for each system evaluated (see Appendix E). 3.2 PRELIMINARY CAPITAL COSTS Table 4 below summarizes the preliminary capital cost estimates for the biomass systems described above, including full system engineering, procurement, and construction management, as well as 20% contingency on equipment and labor costs and an 8.2% premium for construction costs in remote Alaska. Detailed summaries of total project costs are provided in Appendix F for each system. Recapitalization (replacement) costs for the existing boilers and furnaces are not included in the capital costs summarized below; as discussed in section 1.2 above, the existing equipment is relatively new (2013 and 2007, respectively) and, as long as it EXISTING WOOD CHIPS CORDWOOD PELLETS Fuel Oil $41,200 $2,300 $2,300 $2,300 Wood Fuel NA $13,600 $19,700 $42,100 Electricity $9,200 $5,200 $5,200 $5,200 O&M $3,000 $7,600 $11,000 $6,300 Total Estimated Cost $53,400 $28,700 $38,200 $55,900 Estimated Annual Savings $0 $25,700 $15,200 ($2,500) BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 10 is well maintained, should last at least as long as the proposed biomass boiler systems, especially when only in use for peak and shoulder loads. More detailed costs for fuel storage and conveyance, interconnection with existing heat distribution systems, and on-site construction will not be known until full system engineering has been completed and bids from subcontractors have been received. Should opportunities for cost savings be identified, these estimates may be reduced. For example, Wisewood Energy is aware that similar projects in Alaska have installed containerized systems without concrete foundations. While Wisewood Energy does not recommend this approach, if it were chosen for the system at the Klukwan School and Gym, it could save approximately $5,000-10,000 in structural engineering costs and $35,000 in capital (installation) costs. Alternatively, other capital costs may increase from the provided estimates, such as the premium for constructing in remote Alaskan areas. TABLE 4 Comparison of estimated capital costs of containerized select wood chip, cordwood, and pellet biomass boiler systems. “EPCM” includes engineering, procurement, and construction management, as well as an 8.2% remote Alaska construction cost premium to account for the varying labor and procurement costs in rural Alaskan communities. All values are rounded to the nearest $1,000. 3.3 ECONOMIC ANALYSIS A net present value analysis was conducted for each of the three assessed biomass energy systems using the assumptions listed in Table 5 below and according to the Alaska Department of Education and Early Development Life Cycle Cost Analysis Handbook. 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 (LCCA) by the Alaska Department of Education and Early Development. This is a typical rate used for completing economic analyses for public entities in Alaska. The escalation rates used for the wood, heating oil, electricity and O&M labor rates are based on rates used in the Alaska Energy Authority-funded biomass pre-feasibility studies over the last three years. These are typical rates used for this level of evaluation and were used so that results are consistent and comparable to previous studies. WOOD CHIPS FRÖLING T4 150 CORDWOOD GARN 3200 PELLETS FRÖLING T4 150 Construction Costs $502,000 $374,000 $461,000 General Contractor Costs $100,000 $75,000 $92,000 EPCM Costs $132,000 $99,000 $122,000 Total Estimated Cost $734,000 $548,000 $675,000 BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 11 TABLE 5 Discount rate and escalation assumptions. DESCRIPTION RATE Real discount rate 3% Wood fuel escalation rate 3% Fossil fuel escalation rate 5% Electricity escalation rate 2% O&M escalation rate 2% The results of the economic analysis conducted over a 20-year life cycle are summarized in Table 6 below. With the preliminary capital and operational costs estimated by Wisewood Energy, none of the assessed biomass energy systems have a positive simple payback within a 20-year life cycle. The recommended wood chip system has a benefit-to-cost ratio of 0.88 and the cordwood system has a slightly lower ratio of 0.86. A pellet system is much lower, 0.17. Typically, a project with a benefit-to-cost ratio above 1.0 is considered economically justified, suggesting that, under this approach, developing a biomass system is not warranted for the Klukwan school and gym. TABLE 6 Results of the LCCA economic analysis of three wood energy systems using a 20-year life cycle. ITEM WOOD CHIPS CORDWOOD PELLETS Capital Cost ($734,000) ($548,000) ($675,000) Present Value of Project Benefits (20-year life) $645,089 $468,596 $114,159 Benefit/Cost Ratio (20-year life) 0.88 0.86 0.17 Net Present Value (20-year life) ($88,911) ($79,404) ($560,841) Year Cash Flow is Net Positive Year 1 Year 1 Year 7 Payback Period (Net Present Value is Positive) >20 years >20 years >20 years To gain further insight into the economic feasibility of a biomass system at this site, Wisewood Energy conducted a second LCCA using a 25-year life cycle. While the Alaska Department of Education and Early Development Life Cycle Cost Analysis Handbook recommends LCCAs use a period of twenty years, the period over which a project can be analyzed typically ranges from twenty to forty years, depending on the owner’s preferences, the stability of a community, and the intended overall life of the facility. BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 12 Wisewood Energy understands that the Alaska Energy Authority is now using a 25-year life span for Garn cordwood boilers and it is Wisewood Energy’s experience that this may also be appropriate for wood chip and pellet boilers, if well-maintained. Additionally, while the population and stability of remote Alaskan communities can fluctuate over time, the Klukwan school and gym serves the local Chilkat Indian Village residents, a Tribal community that has been in the area along the Chilkat River for centuries. The recent construction of the Jilkaat Kwaan Cultural Heritage and Bald Eagle Preserve Visitor Center in Klukwan is also indication of the long-term stability of the community. The results of the second analysis are shown in Table 7 below. Using a 25-year LCCA, both the wood chip and cordwood boiler are economically feasible and pay back in 23 years. The proposed wood chip boiler has a benefit-to-cost ratio of 1.18 and the cordwood boiler has a ratio of 1.19. A pellet boiler remains uneconomical, even with the longer assessment period. The LCCA results from both time periods and the three boiler systems are included in Appendix G. TABLE 7 Results of the economic analysis of all three wood energy systems, using a 25-year life cycle. ITEM WOOD CHIPS CORDWOOD PELLETS Project Capital Cost ($734,000) ($548,000) ($675,000) Present Value of Project Benefits (25-year life) $868,402 $650,159 $204,716 Benefit/Cost Ratio (25-year life) 1.18 1.19 0.30 Net Present Value (25-year life) $134,402 $102,159 ($470,284) Year Cash Flow is Net Positive Year 1 Year 1 Year 7 Payback Period (Net Present Value is Positive) 23 years 23 years >25 years 3.4 SENSITIVITY ANALYSIS A sensitivity analysis was conducted to demonstrate the effect of wood and fuel oil prices on the benefit-to- cost ratio for the 20-year LCCA, shown below for each biomass system considered. Green cells indicate projects with a benefit-to-cost ratio greater than 1.0, while red cells indicate declining net benefits (less than 0.0) relative to current systems. As fuel oil prices increase and wood fuel prices decrease, each biomass system becomes more economically feasible. This is important to consider, as fuel oil prices are currently at a historic low and wood prices may improve as more local suppliers are identified. For example, if Klukwan can secure wood chips for $85/ton delivered (approximately the price estimated for wood chips sourced from the Haines State Forest), the wood chip boiler is economical with today’s oil prices. Cordwood delivered for $130/ton (approximately $156/cord) is also economical at today’s oil prices. Conversely, if oil prices were to rise just 9.5% from today’s price to $3.55/gal, both a wood chip boiler and cordwood boiler is economical at $124/ton (delivered chips) or $165/ton (delivered cordwood). BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 13 FIGURE 2 Sensitivity analysis of a select wood chip boiler system. FIGURE 3 Sensitivity analysis of a cordwood boiler system. FIGURE 4 Sensitivity analysis of a wood pellet boiler system. $75 $100 $125 $150 $175 $2.75 0.85 0.77 0.69 0.61 0.53 $3.00 0.94 0.86 0.78 0.70 0.63 $3.25 1.04 0.96 0.88 0.80 0.72 $3.50 1.13 1.05 0.98 0.90 0.82 $3.75 1.23 1.15 1.07 0.99 0.91 $4.00 1.32 1.25 1.17 1.09 1.01 $4.25 1.42 1.34 1.26 1.18 1.11 $4.50 1.52 1.44 1.36 1.28 1.20 $4.75 1.61 1.53 1.46 1.38 1.30 Wood Chip Price ($/ton) Heating Oil Price ($/gal) B/C RATIO (20-Year Life) $115 $140 $165 $190 $215 $2.75 0.81 0.71 0.60 0.50 0.39 $3.00 0.94 0.84 0.73 0.63 0.52 $3.25 1.07 0.97 0.86 0.75 0.65 $3.50 1.20 1.09 0.99 0.88 0.78 $3.75 1.33 1.22 1.12 1.01 0.91 $4.00 1.46 1.35 1.25 1.14 1.03 $4.25 1.58 1.48 1.37 1.27 1.16 $4.50 1.71 1.61 1.50 1.40 1.29 $4.75 1.84 1.74 1.63 1.53 1.42 B/C RATIO (20-Year Life) Cordwood Price ($/ton) Heating Oil Price ($/gal) $300 $375 $450 $525 $600 $2.75 0.33 0.12 -0.09 -0.30 -0.51 $3.00 0.44 0.22 0.01 -0.20 -0.41 $3.25 0.54 0.33 0.12 -0.09 -0.31 $3.50 0.64 0.43 0.22 0.01 -0.20 $3.75 0.75 0.54 0.33 0.11 -0.10 $4.00 0.85 0.64 0.43 0.22 0.01 $4.25 0.96 0.75 0.53 0.32 0.11 $4.50 1.06 0.85 0.64 0.43 0.22 $4.75 1.17 0.95 0.74 0.53 0.32 Heating Oil Price ($/gal) B/C RATIO (20-Year Life) Wood Pellet Price ($/ton) BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 14 4 Fuel Supply Assessment As described in Section 2 above, Wisewood Energy recommends a boiler system that would utilize “select” wood chips with an approximate moisture content of 30% and 2” minus particle size. This is based in part on Wisewood Energy’s recommendation that the Haines Borough’s proposed district energy system include a similar wood chip boiler, which requires an approximate moisture content of 45% and 2” minus particle size. By sharing the same particle size and similar moisture content requirement, fuel for the two systems can be produced in one batch using the same processing equipment by a single supplier. Klukwan would need to ensure that a lower moisture content can be achieved and therefore would drive the specification for both systems. A fuel supply assessment for the Haines area was conducted by CE2 Engineers in 2009 and is included in Appendix H. Information from the report and data collected by Wisewood Energy on wood fuel availability in the area is summarized below. 4.1 YUKON TERRITORY WOOD CHIPS Wood chips are immediately available from Bear Creek Logging (BCL) based in Haines Junction in the Yukon Territory of Canada. BCL produces firewood and supplies wood chips to a biomass boiler recently installed in Whitehorse, YT. BCL is aware of additional planned biomass boiler installations in the area and is interested in being a primary wood chip provider for these systems. BCL estimates that it processes 2,500 tons of logging slash per year and, while logging is typically done in the winter, the company has a substantial wood inventory available at any given time. BCL operates a 3680 Bandit Beast to grind logging waste. Wood chips are a mixture of primarily logging slash with 9-14% moisture content and some green residuals with about 40% moisture content. The operator estimates the resulting wood chips have a typical combined moisture content of 15-20%, although this can spike if cottonwood is intermixed in the fuel source. Currently BCL is screening for wood chip particle size less than 3”, which contains some longer, stringy material; however, the company can also use smaller screens or re-grind for a smaller chip size and is experimenting with the type of chip that works best for the existing biomass system in Whitehorse. BCL is selling wood chips for $150/ton plus $4/km (CAD) after the first 150 kilometers. This is equivalent to approximately $114/ton and $4.84/mi (USD) after the first 93 miles. BCL is approximately 260km (161mi) from Klukwan, which is equivalent to a delivered cost of $124/ton (USD). Fuel is delivered in a 53-ft walking floor trailer that holds approximately 20 tons of material. Currently, no additional tariffs apply to international shipments of wood chips and there are no known restrictions on potential wood disease or insects, although either of these potential constraints could change in the future. It is recommended that invoices be divided between fuel and transportation costs to help track changing costs and that the fuel value is kept below $2,500 (USD) per transaction to avoid lengthier international border paperwork. Based on Wisewood Energy’s conversations with BCL, the company appears to have high capacity, has demonstrated an investment in supplying wood chips for biomass energy systems, and likely represents a reliable source of fuel for the Klukwan school and gym. If procuring fuel from this source, Klukwan would need BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 15 to be in communication with the operator to ensure a low moisture content (e.g., by keeping cottonwood out of the processing batch), review the size of screened chips (to avoid larger stringy material), and determine whether BCL has transportation options that can deliver chips using an auger (to reach the top of a containerized storage unit or silo) or if a permanent, fixed receiving auger to receive chips from a live-bottom trailer would be needed at the school. 4.2 HAINES STATE FOREST WOOD CHIPS In addition to the existing source of wood chips in the Yukon territory, a more local source of wood chips may be available from the Haines State Forest over the long term. The Haines State Forest is 286,000 acres, 42,000 of which are managed for timber. According to the State Forester, five to six individuals currently bid on timber sales and operate a variety of wood processing businesses, although none are currently producing wood chips (to our knowledge). Additionally, the Haines Borough has secured a $100,000 grant to purchase a chipper or grinder, which it expects to make available to local forest operators for use. The Borough has stated that it will choose the future processing equipment based on the required fuel specifications for the boiler selected for the district heating system. As described above, the two boilers that Wisewood Energy has recommended for the Borough and Klukwan school and gym have the same particle size requirement, so Klukwan could benefit from the Borough’s investment in processing equipment. Both the State Forester and the 2009 CE2 Engineers wood supply study suggest that a 2” minus particle size is a feasible target for local contractors and available (or future) processing equipment. While the Borough’s planned system will be capable of handling a higher moisture content, Klukwan will need to specify some degree of passive and/or active chip drying for its system. Both the State Forester and the CE2 study suggest that a wood chip could be produced locally for a minimum of $85/ton, which would likely increase with additional drying for Klukwan. In any case, it is reasonable to assume that wood chips from the Haines State Forest will be less expensive than chips provided by BCL. 4.3 CORDWOOD Cordwood is available in and around the Klukwan/Haines area, making it a relatively inexpensive and stable fuel source. Commercial and personal use firewood is currently harvested from both the Haines State Forest and the 1,500-acre Chilkat Indian Village forest. Wisewood Energy estimates a local cost of $200 per cord (delivered) based on recent wood providers and the State Forester, which is equivalent to $165/ton and $13 per MMBtu of thermal energy, assuming 20% moisture content. 4.4 WOOD PELLETS Wood pellet boiler systems are commonly installed across Alaska, including at least four buildings in Haines. Pellets for these systems are typically imported from SEAlaska in Juneau for $430/ton (delivered). While pellet fuel is uniform and has lower system maintenance requirements than wood chips, a high delivered cost and reliance on external sources makes this an unappealing (and potentially uneconomical) long-term fuel option for the Klukwan school and gym. Should oil prices increase and/or pellet prices decrease, this may become a more viable option. BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 16 5 Conclusions and Next Steps The proposed biomass system and alternatives described in this report present a unique opportunity for the Klukwan school and gym and Chatham School District to deepen their ties to the local community, utilize sustainable fuels, and reduce energy costs. Opportunities and obstacles of the proposed biomass system are summarized below, in addition to suggested next steps to advance this opportunity. 5.1 OPPORTUNITIES AND OBSTACLES While both wood chips and cordwood are available at a lower cost per MMBtu than fuel oil, the preliminary LCCA economic analysis showed that none of the biomass systems considered pay back within a 20-year life cycle. This may deter project champions and funders from pursuing development of the system until fuel oil prices rise and/or wood fuel prices fall. Additionally, if the project were to go forward, consistent supply of the selected wood fuel at the appropriate fuel quality would need to be secured. In the case of wood chips, moisture content and particle size will need to be specified and monitored. In the case of cordwood, sufficient local suppliers would need to be identified and consistent staffing for ongoing boiler maintenance secured. Despite these challenges, a biomass system does present an interesting opportunity for the Klukwan school and gym. Both the wood chip and cordwood system were modeled to payback using a 25-year LCCA, which may be a more appropriate timeframe for assessing biomass energy systems. Project champions may consult further with Wisewood Energy, Alaska Energy Authority, and other regional resources to identify potential capital cost savings that may improve the economic viability of the system. A wood chip system would also benefit from sharing similar technology to nearby Haines, if the Haines biomass district heating system is implemented. The Chatham School District might consider incorporating a heated greenhouse into the proposed biomass system at the school, as has been done elsewhere in Southeast Alaska. While a greenhouse was not included in this analysis, it can be easily added during more detailed design and engineering and would have added benefits of contributing to school educational programs and even providing fresh produce to the local community. Importantly, a fundamental benefit of converting to modern wood thermal energy is to displace imported, finite fossil fuels with locally abundant renewable fuels which provide more stable budgeting while supporting the local economy. These additional benefits can be difficult to quantify in economic terms. 5.2 NEXT STEPS – DETAILED ENGINEERING AND CONSTRUCTION FUNDING To better understand this biomass opportunity, the next step is to develop the detailed design and engineering of the system, which may be combined with construction in a design/build project. During detailed design, Wisewood Energy would work with the Chatham School District to select equipment appropriate to integrate seamlessly with the existing facility, engage with structural and electrical engineers to prepare construction-ready documentation, and further assess wood fuel delivery options. Construction-ready engineering for this project is estimated to cost approximately $79,000, including mechanical, structural, and electrical. Various sources may provide funding opportunities to complete this work. The USDA Wood Innovations Funding Opportunity is typically announced in October each year and due in January, and can fund full design and engineering for biomass energy systems that have feasibility BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 17 studies completed1. The Office of Energy Indian Energy Policy and Programs offers technical assistance, funding opportunities, and education and capacity building for Alaska Native Villages which could be leveraged for the Klukwan school2. The Department of Energy also lists a number of funding programs for Tribes on its Energy Development Assistance Tool3. 1 https://www.fs.fed.us/science-technology/energy-forest-products/wood-innovations-grants 2 https://energy.gov/indianenergy/alaska-native-villages 3 https://energy.gov/indianenergy/energy-development-assistance-tool BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 18 6 General Biomass Information Modern, computer-controlled biomass-fired boilers are available for all levels of thermal outputs, from small- scale systems sized for individual residences to large-scale systems capable of heating entire cities. Each of these systems are able to sustain clean wood combustion by utilizing automatic controls and continuous monitoring, which translates to low emissions of air quality pollutants. 6.1 WOOD FUEL QUALITY In general, the fuel quality requirements, or specification, for biomass boilers depend on the size of the system. The smaller the system, the more uniform and narrow the fuel specification; the larger the system, the broader the fuel types it is able to handle. Cordwood boilers are the exception to this rule, as they typically heat small facilities but utilize coarse, somewhat variable material. The wood fuel quality spectrum is defined by particle size, moisture content, and ash content, and ranges from uniform and refined to coarse and variable. Premium wood pellets are the most refined of wood fuels, typically produced from sawdust or other manufacturing residuals and compressed into a uniform, densified form and suitable for burning in small pellet boilers and stoves. “Select” or “clean” wood chips are produced as a byproduct of manufacturing or from forest management activities and are processed to control for particle size and moisture content through screening and active or passive drying. For example, a clean chip may be classified as having 2” minus particle size and 35% moisture content, 1.25” minus particle size and 20% moisture content, etc. Wood chips that have been minimally processed are referred to as “hog fuel,” and are typically comprised of bark, tops, and limbs from forest activities and other low value woody biomass. To produce hog fuel, non-merchantable woody material generated during forest management activities is chipped or ground, resulting in a range of particle sizes, moisture contents, and ash contents. Cordwood, or firewood, is generally classified by species, moisture content or drying time, and length and diameter, and can be provided in various forms (e.g., in rounds, 16-foot lengths, or split). 6.2 BIOMASS BOILER TYPES Biomass boilers using different types of wood fuel each have advantages and disadvantages. Communities interested in installing a biomass boiler should consider these tradeoffs in light of their overall project objectives when selecting the most appropriate biomass system. The table below offers some of the common tradeoffs between types of biomass boiler types. Cordwood Pellets Select Chips Hog Fuel BIOMASS HEATING FOR KLUKWAN SCHOOL AND GYM | KLUKWAN, AK WISEWOOD ENERGY | FEASIBILITY STUDY | JULY 2017 19 Fuel Type Cordwood Pellets Pellets and/or clean chip Hog Fuel Typical Installed Capacity 100-700 MBH 50-2,000 MBH 500-4,000 MBH 1,500 – 30,000 MBH User Single family homes, light to moderate institutional Single-family homes, light commercial, institutional Single-family homes, light commercial, institutional Commercial, institutional, municipal, industrial, district Pros • Easy to maintain • Local fuel source • High local job creation • Can be low fuel cost • Easy to operate • Regional fuel source • Easy to operate • Dual fuel lends fuel security • Local/regional fuel source • Can be low fuel cost • Easy to operate • Can handle wide range of fuel quality • Local/regional fuel source • Lowest fuel cost Cons • Labor intensive operation • Low temperature heat emitters can be require retrofits • Fuel can be expensive • Depends on external fuel sources • Requires attention to fuel specification • May not be able to be sourced from local community • Requires larger heat loads • High capital cost WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX A AWEDTG Field Data Sheet Page 1 of 4 ALASKA WOOD ENERGY DEVELOPMENT TASK GROUP (AWEDTG) PRE-FEASIBILITY ASSESSMENT FIELD DATA SHEET APPLICANT: Eligibility: (check one) □ Local government □ State agency □ Federal agency □ School/School District □ Federally Recognized Tribe □ Regional ANCSA Corp. □ Village ANCSA Corp. □ Not-for -profit organization □ Private Entity that can demonstrate a Public Benefit □ Other (describe): Contact Name: Mailing Address: City: State: AK Zip Code: 99 Office phone: (907) Cell phone: ( ) Fax: (907) Email: Facility Identification/Name: Facility Contact Person: Facility Contact Telephone: (907) ( ) Facility Contact Email: SCHOOL/FACILITY INFORMATION (complete separate Field Data Sheet for each building) SCHOOL FACILITY (Name: _________________________________________________________________________________ ) School Type: (check all that apply) [ ] Pre-School [ ] Elementary [ ] Middle School [ ] Junior High [ ] High School [ ] Campus [ ] Student Housing [ ] Pool [ ] Gymnasium [ ] Other (describe): Size of facility (sq. ft. heated): Year built/age: Number of floors: Year(s) renovated: Number of bldgs.: Next renovation: # of Students: Has en energy audit been conducted?: If Yes, when? * OTHER FACILITY (Name: ___________________________________________________________________________________ ) Type: [ ] Health Clinic [ ] Public Safety Bldg. [ ] Community Center [ ] Water Plant [ ] Washeteria [ ] Public Housing [ ] Multi-Purpose Bldg [ ] District Energy System [ ] Other (list): Size of Facility (sq. ft. heated) Year built/age: Number of floors: Year(s) renovated: Number of bldgs.: Next renovation: Frequency of Usage: # of Occupants Has an energy audit been conducted? If Yes, when? * * If an Energy Audit has been conducted, please provide a copy. 10,500 sq ft 1 Chatham School District Jim Wagner Bernie Grieve 820 788-3253 Bgrieve@chathamsd.org Klukwan School Klukwan School and Gym Angoon POB 109 788-3302 209-5119 Jawagner@chathamsd.org 1 13 NA Unsure 2017 - see note below 1983 Next renovation planned for summer 2017: installing new zone valves and circulation pumps to improve heat distribution, also installing LED lights. If an energy audit was completed, it was likely in the early 2000s. Unsure where copy is located at this time. Page 2 of 4 HEATING SYSTEM INFORMATION CONFIGURATION (check all that apply) □ Heat plant in one location: □ on ground level □ below ground level □ mezzanine □ roof □ at least 1 exterior wall □ Different heating plants in different locations: How many? _______________ What level(s)? _________________________ □ Individual room-by-room heating systems (space heaters) □ Is boiler room accessible to delivery trucks? □ Yes □ No HEAT DELIVERY (check all that apply) □ Hot water: □ baseboard □ radiant heat floor □ cabinet heaters □ air handlers □ radiators □ other: ___________________ □ Steam: ____________________________________________________________________________________________________ □ Forced/ducted air □ Electric heat: □ resistance □ boiler □ heat pump(s) □ Space heaters HEAT GENERATION (check all that apply) Heating capacity Annual Fuel (Btuh / kWh) Consumption | Cost__ □ Hot water boiler: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Steam boiler: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Warm air furnace: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Electric resistance: □ baseboard □ duct coils ____________ ______________|________ □ Heat pumps: □ air source □ ground source □ sea water ____________ ______________|________ □ Space heaters: □ woodstove □ Toyo/Monitor □ other: _________________ ____________ ______________|________ TEMPERATURE CONTROLS (type of system; check all that apply) □ Thermostats on individual devices/appliances; no central control system □ Pneumatic control system Manufacturer: __________________________ Approx. Age: __________ □ Direct digital control system Manufacturer: __________________________ Approx. Age: __________ Record Name Plate data for boilers (use separate sheet if necessary): Describe locations of different parts of the heating system and what building areas are served: Describe age and general condition of existing equipment: Who performs boiler maintenance? __________________________________ Describe any current maintenance issues: Where is piping or ducting routed through the building? (tunnels, utilidors, crawlspace, above false ceiling, attic, etc.): Describe on-site fuel storage: Number of tanks, size of tanks, location(s) of tanks, condition, spill containment, etc.: If this fuel is also used for other purposes, please describe: 9,092 gal $30,201 Hot waters boiler are about 5 years old and in good condition. Two hot water boilers are located in mechanical room on north side of building, and serve the entire building. An air handler is located in an additional mechanical room on east side of building, and provides some supplemental heating. 792,000 Most piping is located under the ﬂoor. One on-site oil tank is located underground on the north side of the mechanical room. Unsure of size. Facilities staff provides minimal maintenance. Larry's Plumbing out of Juneau provides majority of maintenance. No issues reported, except for with heat distribution and thermostat controls. Also used for domestic water use. Two Weil-McLain model 80 series1 boilers. Both model no. 480, 4 sections, 396 MBH min. relief valve cap., 3.4 GPH, 396 MBH gross output, 344 MBH net water rating; MAWP 80 PSI, max water temp 250 F. See photo 4. Page 3 of 4 DOMESTIC HOT WATER USES OF DOMESTIC HOT WATER TYPE OF SYSTEM Check all that apply: Check all that apply: □ Lavatories □ Direct-fired, single tank □ Kitchen □ Direct fired, multiple tanks □ Showers □ Indirect , using heating boiler with separate storage tank □ Laundry □ Hot water generator with separate storage tank □ Water treatment □ Other: ____________________________________________ □ Other: ________________________________ What fuels are used to generate hot water? (Check all that apply): □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil Describe location of water heater(s): ________________________________________________________________________________________ Describe on-site fuel storage: number of tanks, size of tanks, location(s) of tanks, condition, spill containment, etc.: BUILDING ENVELOPE Wall type (stick frame, masonry, SIP, etc.): ____________________________________________ Insulation Value: _______ Roof type: ______________________________________________________________________ Insulation Value: _______ Windows: □ single pane □ double pane □ other: ____________________________________________________________ Arctic entry(s): □ none □ at main entrance only □ at multiple entrances □ at all entrances Drawings available: □ architectural □ mechanical □ electrical Outside Air/Air Exchange: □ HRV □ CO2 Sensor ELECTRICAL Utility company that serves the building or community: __________________________________________________________ Type of grid: □ building stand-alone □ village/community power □ railbelt grid Energy source: □ hydropower □ diesel generator(s) □ Other: ____________________________________________________________ Electricity rate per kWh: _________ Demand charge: ______________ Electrical energy phase(s) available: □ single phase □ 3-phase Back-up generator on site: □ Yes □ No If Yes, provide output capacity: ________________________________________ Are there spare circuits in MDP and/or electrical panel?: □ Yes □ No Record MDP and electrical panel name plate information: WOOD FUEL INFORMATION Wood pellet cost delivered to facility $_________/ton Viable fuel source? Yes No Wood chip cost delivered to facility $_________/ton Viable fuel source? Yes No Cord wood cost delivered to facility $_________/cord Viable fuel source? Yes No Distance to nearest wood pellet and wood chip suppliers?_______________________________________________________ Can logs or wood fuel be stockpiled on site or at a nearby facility?_________________________________________________ Who manages local forests? Village Native Corp, Regional Native Corp, State of Alaska, Forest Service, BLM, USF&WS, Other: _________________________________________________________________________________________________________ Mechanical room on north side of building. IPEC $0.613 $12.70/kW Potentially Potentially Potentially $430 TBD TBD Pellets: Juneau; Wood chips: potential source from Haines Yes State of Alaska, Village Native Corp Same tank as described above. Pitched metal roof Unknown Unknown Stick frame, wood and cement At least some windows are double pane. Ceiling windows were vacuum sealed, but are leaking. Should be available at the site and in District ofﬁces. I-T-E panelboard type CDP-7, 8A series, 208Y/120 voltage, 225 amps, B38 box, 304W system. See photo 6. Page 4 of 4 FACILITY SITE CONSIDERATIONS Is there good access to site for delivery vehicles (trucks, chip vans, etc)? Are there any significant site constraints? (Playgrounds, other buildings, wetlands, underground utilities, etc.)? What are local soil conditions? Permafrost issues? Is the building in proximity to other buildings with biomass potential? If so, Which ones and How close? Can building accommodate a biomass boiler inside, or would an addition for a new boiler be necessary? Where would addition go? Where would potential boiler plant or addition utilities (water/sewer/power/etc .) come from? If necessary, can piping be run underground from a central plant to the building? Where would piping enter boiler room? OTHER INFORMATION Provide any other information that will help describe the space heating and domestic hot water systems, such as Is heat distribution system looping or branching? For baseboard hydronic heat, what is the diameter of the copper tubing? Size of fins? Number of fins per lineal foot? Any other energy using systems (kitchen equipment, lab equipment, pool etc)? Fuel or energy source? Any systems that could be added to the boiler system? Are heating fuel records available? PICTURE / VIDEO CHECKLIST Exterior Main entry Building elevations Several near boiler room and where potential addition/wood storage and/or exterior piping may enter the building Access road to building and to boiler room Power poles serving building Electrical service entry Emergency generator Interior Boilers, pumps, domestic water heaters, heat exchangers – all mechanical equipment in boiler room and in other parts of the building. Boiler room piping at boiler and around boiler room Piping around domestic water heater MDP and/or electrical panels in or around boiler room Pictures of available circuits in MDP or electrical panel (open door). Picture of circuit card of electrical panel Picture of equipment used to heat room in the building (i.e. baseboard fin tube, unit heaters, unit ventilators, air handler, fan coil) Pictures of any other major mechanical equipment Pictures of equipment using fuel not part of heating or domestic hot water system (kitchen equip., lab equip., pool, etc.) Pictures of building plans (site plan, architec tural floor plan, mechanical plan, boiler room plan, electrical power plan) Yes No permafrost issues. Not beyond the School and Gym. Biomass boilers would be containerized and located on the north side of the building, between the School and Gym. Likely connect to existing utilities. There is adequate space and accessibility for a containerized biomass system on the north side of the School and Gym that will tie into the existing heat distribution system. The existing boilers and furnaces are in good condition, and would remain connected to the system for back-up and peak or shoulder season demands. Heating fuel records are available. Building backs to a road, but sufﬁcient space for a container and truck access Yes; underground PEX piping from the containerized biomass system would tie in to the existing School distribution system in the mechanical room on the north side of the building. Hydronic unit heaters would be installed in the Gym and connected to the biomass system with underground PEX piping. Existing boilers and furnaces would remain connected for backup. Page 1 of 4 ALASKA WOOD ENERGY DEVELOPMENT TASK GROUP (AWEDTG) PRE-FEASIBILITY ASSESSMENT FIELD DATA SHEET APPLICANT: Eligibility: (check one) □ Local government □ State agency □ Federal agency □ School/School District □ Federally Recognized Tribe □ Regional ANCSA Corp. □ Village ANCSA Corp. □ Not-for -profit organization □ Private Entity that can demonstrate a Public Benefit □ Other (describe): Contact Name: Mailing Address: City: State: AK Zip Code: 99 Office phone: (907) Cell phone: ( ) Fax: (907) Email: Facility Identification/Name: Facility Contact Person: Facility Contact Telephone: (907) ( ) Facility Contact Email: SCHOOL/FACILITY INFORMATION (complete separate Field Data Sheet for each building) SCHOOL FACILITY (Name: _________________________________________________________________________________ ) School Type: (check all that apply) [ ] Pre-School [ ] Elementary [ ] Middle School [ ] Junior High [ ] High School [ ] Campus [ ] Student Housing [ ] Pool [ ] Gymnasium [ ] Other (describe): Size of facility (sq. ft. heated): Year built/age: Number of floors: Year(s) renovated: Number of bldgs.: Next renovation: # of Students: Has en energy audit been conducted?: If Yes, when? * OTHER FACILITY (Name: ___________________________________________________________________________________ ) Type: [ ] Health Clinic [ ] Public Safety Bldg. [ ] Community Center [ ] Water Plant [ ] Washeteria [ ] Public Housing [ ] Multi-Purpose Bldg [ ] District Energy System [ ] Other (list): Size of Facility (sq. ft. heated) Year built/age: Number of floors: Year(s) renovated: Number of bldgs.: Next renovation: Frequency of Usage: # of Occupants Has an energy audit been conducted? If Yes, when? * * If an Energy Audit has been conducted, please provide a copy. Chatham School District Bgrieve@chathamsd.org 788-3253 788-3302 820 POB 109 Bernie Grieve Jim Wagner Klukwan School Gym 2 NA 6,000 sq ft 1 See School, above 209-5119 Klukwan School and Gym Jawagner@chathamsd.org Angoon NA 2007 No Page 2 of 4 HEATING SYSTEM INFORMATION CONFIGURATION (check all that apply) □ Heat plant in one location: □ on ground level □ below ground level □ mezzanine □ roof □ at least 1 exterior wall □ Different heating plants in different locations: How many? _______________ What level(s)? _________________________ □ Individual room-by-room heating systems (space heaters) □ Is boiler room accessible to delivery trucks? □ Yes □ No HEAT DELIVERY (check all that apply) □ Hot water: □ baseboard □ radiant heat floor □ cabinet heaters □ air handlers □ radiators □ other: ___________________ □ Steam: ____________________________________________________________________________________________________ □ Forced/ducted air □ Electric heat: □ resistance □ boiler □ heat pump(s) □ Space heaters HEAT GENERATION (check all that apply) Heating capacity Annual Fuel (Btuh / kWh) Consumption | Cost__ □ Hot water boiler: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Steam boiler: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Warm air furnace: □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil ____________ ______________|________ □ Electric resistance: □ baseboard □ duct coils ____________ ______________|________ □ Heat pumps: □ air source □ ground source □ sea water ____________ ______________|________ □ Space heaters: □ woodstove □ Toyo/Monitor □ other: _________________ ____________ ______________|________ TEMPERATURE CONTROLS (type of system; check all that apply) □ Thermostats on individual devices/appliances; no central control system □ Pneumatic control system Manufacturer: __________________________ Approx. Age: __________ □ Direct digital control system Manufacturer: __________________________ Approx. Age: __________ Record Name Plate data for boilers (use separate sheet if necessary): Describe locations of different parts of the heating system and what building areas are served: Describe age and general condition of existing equipment: Who performs boiler maintenance? __________________________________ Describe any current maintenance issues: Where is piping or ducting routed through the building? (tunnels, utilidors, crawlspace, above false ceiling, attic, etc.): Describe on-site fuel storage: Number of tanks, size of tanks, location(s) of tanks, condition, spill containment, etc.: If this fuel is also used for other purposes, please describe: One air furnace in the north mezzanine, one in the south mezzanine. Less than 10 years old and in good condition. Ducting is routed directly from furnace rooms to the Gym. 800,000 input 3,631 gal $12,020 One tank in moderate condition located on the south side of the Gym, pumps to day tanks connected to each furnace. Unsure of size of outdoor tank. Facilities staff provides minimal maintenance. Larry's Plumbing out of Juneau provides majority of maintenance. No issues reported, except for with heat distribution and thermostat controls. Two Thermo Products oil-ﬁred furnaces model no. 0L39-320R, max input 3.0 GPH, 400,000 BTU/hr input, 115 voltz 60 HZ, 20.4 total current amps, 23.65 min circuit ampacity, 30 max fuse size, <200F max outlet air temp. See photo 10. Page 3 of 4 DOMESTIC HOT WATER USES OF DOMESTIC HOT WATER TYPE OF SYSTEM Check all that apply: Check all that apply: □ Lavatories □ Direct-fired, single tank □ Kitchen □ Direct fired, multiple tanks □ Showers □ Indirect , using heating boiler with separate storage tank □ Laundry □ Hot water generator with separate storage tank □ Water treatment □ Other: ____________________________________________ □ Other: ________________________________ What fuels are used to generate hot water? (Check all that apply): □ natural gas □ propane □ electric □ #1 fuel oil □ #2 fuel oil Describe location of water heater(s): ________________________________________________________________________________________ Describe on-site fuel storage: number of tanks, size of tanks, location(s) of tanks, condition, spill containment, etc.: BUILDING ENVELOPE Wall type (stick frame, masonry, SIP, etc.): ____________________________________________ Insulation Value: _______ Roof type: ______________________________________________________________________ Insulation Value: _______ Windows: □ single pane □ double pane □ other: ____________________________________________________________ Arctic entry(s): □ none □ at main entrance only □ at multiple entrances □ at all entrances Drawings available: □ architectural □ mechanical □ electrical Outside Air/Air Exchange: □ HRV □ CO2 Sensor ELECTRICAL Utility company that serves the building or community: __________________________________________________________ Type of grid: □ building stand-alone □ village/community power □ railbelt grid Energy source: □ hydropower □ diesel generator(s) □ Other: ____________________________________________________________ Electricity rate per kWh: _________ Demand charge: ______________ Electrical energy phase(s) available: □ single phase □ 3-phase Back-up generator on site: □ Yes □ No If Yes, provide output capacity: ________________________________________ Are there spare circuits in MDP and/or electrical panel?: □ Yes □ No Record MDP and electrical panel name plate information: WOOD FUEL INFORMATION Wood pellet cost delivered to facility $_________/ton Viable fuel source? Yes No Wood chip cost delivered to facility $_________/ton Viable fuel source? Yes No Cord wood cost delivered to facility $_________/cord Viable fuel source? Yes No Distance to nearest wood pellet and wood chip suppliers?_______________________________________________________ Can logs or wood fuel be stockpiled on site or at a nearby facility?_________________________________________________ Who manages local forests? Village Native Corp, Regional Native Corp, State of Alaska, Forest Service, BLM, USF&WS, Other: _________________________________________________________________________________________________________ Same as School above Same as School above Same as School above Pitched metal roof Stick frame, wood and cement Unknown Unknown Page 4 of 4 FACILITY SITE CONSIDERATIONS Is there good access to site for delivery vehicles (trucks, chip vans, etc)? Are there any significant site constraints? (Playgrounds, other buildings, wetlands, underground utilities, etc.)? What are local soil conditions? Permafrost issues? Is the building in proximity to other buildings with biomass potential? If so, Which ones and How close? Can building accommodate a biomass boiler inside, or would an addition for a new boiler be necessary? Where would addition go? Where would potential boiler plant or addition utilities (water/sewer/power/etc .) come from? If necessary, can piping be run underground from a central plant to the building? Where would piping enter boiler room? OTHER INFORMATION Provide any other information that will help describe the space heating and domestic hot water systems, such as Is heat distribution system looping or branching? For baseboard hydronic heat, what is the diameter of the copper tubing? Size of fins? Number of fins per lineal foot? Any other energy using systems (kitchen equipment, lab equipment, pool etc)? Fuel or energy source? Any systems that could be added to the boiler system? Are heating fuel records available? PICTURE / VIDEO CHECKLIST Exterior Main entry Building elevations Several near boiler room and where potential addition/wood storage and/or exterior piping may enter the building Access road to building and to boiler room Power poles serving building Electrical service entry Emergency generator Interior Boilers, pumps, domestic water heaters, heat exchangers – all mechanical equipment in boiler room and in other parts of the building. Boiler room piping at boiler and around boiler room Piping around domestic water heater MDP and/or electrical panels in or around boiler room Pictures of available circuits in MDP or electrical panel (open door). Picture of circuit card of electrical panel Picture of equipment used to heat room in the building (i.e. baseboard fin tube, unit heaters, unit ventilators, air handler, fan coil) Pictures of any other major mechanical equipment Pictures of equipment using fuel not part of heating or domestic hot water system (kitchen equip., lab equip., pool, etc.) Pictures of building plans (site plan, architec tural floor plan, mechanical plan, boiler room plan, electrical power plan) Same as School above Same as School above Same as School above WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX B Facility Photos PHOTO 1 Entrance to the mechanical room on the north side of the Klukwan School. PHOTO 2 Two existing Weil-McLain oil boilers in the mechanical room at the Klukwan School, each 396 MBH. These boilers would remain in place as backup to the biomass system. PHOTO 3 Close-up of one Weil-McLain oil boiler. PHOTO 4 Weil-McLain oil boiler nameplate data. Both boilers are identical. PHOTO 5 Direct-fired oil hot water tank for domestic water, also located in the mechanical room on the north side of Klukwan School. PHOTO 6 Nameplate data for the electrical panel. PHOTO 7 Baseboard heaters located throughout Klukwan school. PHOTO 8 Air handler located in a second mechanical room at the east side of the Klukwan School. The air handler circulates warm air for supplemental heating. PHOTO 9 One of two oil air furnaces located in the upper mezzanine on the north side of the Klukwan Gym. The second identical air furnace is located on the south mezzanine in the Gym. Hydronic unit heaters would be installed to provide heating to the Gym from the biomass system, and the existing furnaces would remain as backup. PHOTO 10 Nameplate from the oil air furnace in the Klukwan Gym. PHOTO 11 Day tank for one oil air furnace. PHOTO 12 Outside oil tank for the two air furnaces in the Klukwan Gym, located on the south side of the building. PHOTO 13 View of the north side of Klukwan School, looking west. The mechanical room is to the left, and the road is to the right. PHOTO 14 View of the north side of Klukwan School, looking east. Underground PEX piping would be located in this area to connect to the existing heat distribution system in the mechanical room (located to the right). PHOTO 15 Detail of the area immediately outside of the mechanical room on the north side of Klukwan School. PEX piping would penetrate the building here. PHOTO 16 Continued view of the north side of Klukwan School, looking east and facing the Gym. A containerized biomass system may be located in this area, potentially replacing the shed. PHOTO 17 View of the east side of the Klukwan Gym, looking west. There is sufficient space in this vicinity for truck access to a containerized biomass system. PHOTO 18 View of the north side of the Klukwan Gym, looking east. A containerized biomass system may be located in this area, with access from the east side of the Gym. WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX C Energy Models for Wood Chips, Cordwood, and Pellet Boiler Systems All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Energy Model - Wood Chips, Cordwood, or Pellets Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/26/17 Proposed System Fuel Type Wood Chips, Cordwood, or Pellets Email andrew@wisewoodenergy.com 0 100 200 300 400 500 600 700 800 900 1,000 September October November December January February March April May June July AugustAverage Hourly Heat Demand (MBH)Estimated Heat Load Coverage by New Biomass-Fired Boiler Calculated Heat Load (MBH)Estimated Biomass Boiler Load Coverage (MBH) All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Energy Model - Wood Chips, Cordwood, or Pellets Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/26/17 Proposed System Fuel Type Wood Chips, Cordwood, or Pellets Email andrew@wisewoodenergy.com Boiler Output [MBH]Fossil Fuel Displaced 95% 100 30.7% 200 55.0% 300 74.3% 400 87.5% 500 94.5% 600 97.4% 700 97.7% 800 97.0% 900 95.8% 1,000 94.2% 1,100 93.4% 1,200 92.8% 1,300 91.5% 1,400 90.3% 1,500 89.3% 1,600 88.3% 1,700 87.2% 1,800 86.1% 1,900 85.3% 2,000 84.0% 2,100 81.7% 2,200 79.9% 2,300 77.4% 2,400 74.5% 2,500 72.6% 0 100 200 300 400 500 600 700 800 900 1000 0 288 576 864 1,152 1,440 1,728 2,016 2,304 2,592 2,880 3,168 3,456 3,744 4,032 4,320Estimated Heat Demand (MBH)Estimated Boiler Operating Hours per Year Estimated Annual Heat Load Coverage by New Biomass-Fired Boiler Calculated Heat Load (MBH)Estimated Biomass Boiler Load Coverage (MBH) All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Energy Model - Wood Chip Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/21/17 Proposed System Fuel Type Wood Chips Email andrew@wisewoodenergy.com $3.24 Energy of heating oil [Btu/gal]139,000 Heating oil use [gal/yr]12,723 $2.50 Energy of propane [Btu/gal]92,000 Heating oil cost [$/yr]$41,215 $12.71 Energy per kWh [Btu/kWh]3,412 Propane use [gal/yr]0 $0.60 Moisture of biomass [% MC WB]20%Propane cost [$/yr]$0 $124 Energy of bone dry wood [Btu/ton]16,400,000 Heating electricity use [kWh/yr]14,139 Energy of actual biomass [Btu/ton]12,731,840 Heating electricity cost [$/yr]$7,621 Total energy input [MMBtu/yr]1,817 75%Heating device nameplate [MBH]1,000 Operating hours per day 12 Max. electrical demand [kW]0.30 Boiler output, low-fire [MBH]200 Energy consumption [MMBtu/HDD]0.24 Average electrical demand [kW]0.09 Average boiler output [MBH]311 Existing heat input [MMBtu/HDD]0.18 Wood Chips Fuel type Oil Total load carried by wood, as %94.5% 500 Boiler output, high-fire [MBH]1,000 Operating hours per year 8,352 63 Boiler output, low-fire [MBH]200 Biomass boiler output [% of peak]58% 1.4 Max. electrical demand [kW]1.0 0.8 Average electrical demand [kW]0.13 85%Boiler efficiency 75% 119 Oil consumption [gal/yr]716 Total fuel consumption [MMBtu/yr]1,581 $14,757 Oil cost [$/yr]$2,320 Total fuel cost [$/yr]$17,077 7,045 Electrical consumption [kWh/yr]1,044 Total electrical consumption [kWh/yr]8,089 $4,200 Electrical use charge [$/yr]$622 Total electrical use charge [$/yr]$4,822 $207 Electrical demand charge [$/yr]$153 Total electrical demand charge [$/yr]$359 September 450 108 81 90 6 7.1 October 651 157 118 131 9 10.3 November 980 236 177 197 13 15.5 December 1,188 286 214 239 16 18.7 January 998 240 180 200 13 15.7 February 870 209 157 175 11 13.7 March 807 194 146 162 11 12.7 April 597 144 108 120 8 9.4 May 394 95 71 79 5 6.2 June 234 56 42 47 3 3.7 July 169 41 30 34 2 2.7 August 209 50 38 42 3 3.3 Yearly Total 7,546 1,817 1,363 1,515 100 119 * Low-fire output includes the use of a 1,000-gallon thermal storage to increase effective boiler turndown Net fossil energy savings [MMBtu/yr]1,717 Proposed Biomass Boiler Specifications Proposed Trim Boiler Specifications Current System Values Proposed System Values Fuel type Boiler efficiency Current System Consumption Heating oil cost [$/gal] Propane cost [$/gal] Electricity demand cost [$/kW] Electricity cost [$/kWh] Fuel Prices Conversion Factors Delivered biomass fuel cost [$/ton] Month Heating Degree Days [HDD] Current gross fossil energy consumption [MMBtu] Current net space heat energy input [MMBtu] Projected biomass boiler gross energy consumption [MMBtu] Projected trim boiler energy consumption [MMBtu] Projected wood fuel use [tons] Boiler output, high-fire [MBH] Boiler output, low-fire* [MBH] Boiler efficiency Proposed Biomass Boiler Consumption and Cost Wood fuel consumption [tons/yr] Delivered wood fuel cost [$/yr] Electrical consumption [kWh/yr] Electrical energy cost [$/yr] Electrical demand charge [$/yr] Proposed Trim Boiler Consumption and Cost Proposed Totals Max. electrical demand [kW] Average electrical demand [kW] All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Energy Model - Cordwood Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/21/17 Proposed System Fuel Type Cordwood Email andrew@wisewoodenergy.com $3.24 Energy of heating oil [Btu/gal]139,000 Heating oil use [gal/yr]12,723 $2.50 Energy of propane [Btu/gal]92,000 Heating oil cost [$/yr]$41,215 $12.71 Energy per kWh [Btu/kWh]3,412 Propane use [gal/yr]0 $0.60 Moisture of biomass [% MC WB]20%Propane cost [$/yr]$0 $165 Energy of bone dry wood [Btu/ton]16,400,000 Heating electricity use [kWh/yr]14,139 Energy of actual biomass [Btu/ton]12,731,840 Heating electricity cost [$/yr]$7,621 Total energy input [MMBtu/yr]1,817 75%Heating device nameplate [MBH]1,000 Operating hours per day 12 Max. electrical demand [kW]0.30 Boiler output, low-fire [MBH]200 Energy consumption [MMBtu/HDD]0.24 Average electrical demand [kW]0.09 Average boiler output [MBH]311 Existing heat input [MMBtu/HDD]0.18 Cordwood Fuel type Oil Total load carried by wood, as %94.5% 500 Boiler output, high-fire [MBH]1,000 Operating hours per year 8,352 63 Boiler output, low-fire [MBH]200 Biomass boiler output [% of peak]58% 1.4 Max. electrical demand [kW]1.0 0.8 Average electrical demand [kW]0.13 85%Boiler efficiency 75% 119 Oil consumption [gal/yr]716 Total fuel consumption [MMBtu/yr]1,581 $19,688 Oil cost [$/yr]$2,320 Total fuel cost [$/yr]$22,007 7,045 Electrical consumption [kWh/yr]1,044 Total electrical consumption [kWh/yr]8,089 $4,200 Electrical use charge [$/yr]$622 Total electrical use charge [$/yr]$4,822 $207 Electrical demand charge [$/yr]$153 Total electrical demand charge [$/yr]$359 September 450 108 81 90 6 7.1 October 651 157 118 131 9 10.3 November 980 236 177 197 13 15.5 December 1,188 286 214 239 16 18.7 January 998 240 180 200 13 15.7 February 870 209 157 175 11 13.7 March 807 194 146 162 11 12.7 April 597 144 108 120 8 9.4 May 394 95 71 79 5 6.2 June 234 56 42 47 3 3.7 July 169 41 30 34 2 2.7 August 209 50 38 42 3 3.3 Yearly Total 7,546 1,817 1,363 1,515 100 119 * Low-fire output includes the use of a 1,000-gallon thermal storage to increase effective boiler turndown Net fossil energy savings [MMBtu/yr]1,717 Boiler output, high-fire [MBH] Boiler output, low-fire* [MBH] Boiler efficiency Proposed Biomass Boiler Consumption and Cost Wood fuel consumption [tons/yr] Delivered wood fuel cost [$/yr] Electrical consumption [kWh/yr] Electrical energy cost [$/yr] Electrical demand charge [$/yr] Proposed Trim Boiler Consumption and Cost Proposed Totals Max. electrical demand [kW] Average electrical demand [kW] Delivered biomass fuel cost [$/ton] Month Heating Degree Days [HDD] Current gross fossil energy consumption [MMBtu] Current net space heat energy input [MMBtu] Projected biomass boiler gross energy consumption [MMBtu] Projected trim boiler energy consumption [MMBtu] Projected wood fuel use [tons] Current System Consumption Heating oil cost [$/gal] Propane cost [$/gal] Electricity demand cost [$/kW] Electricity cost [$/kWh] Fuel Prices Conversion Factors Proposed Biomass Boiler Specifications Proposed Trim Boiler Specifications Current System Values Proposed System Values Fuel type Boiler efficiency All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Energy Model - Pellet Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/21/17 Proposed System Fuel Type Wood Pellets Email andrew@wisewoodenergy.com $3.24 Energy of heating oil [Btu/gal]139,000 Heating oil use [gal/yr]12,723 $2.50 Energy of propane [Btu/gal]92,000 Heating oil cost [$/yr]$41,215 $12.71 Energy per kWh [Btu/kWh]3,412 Propane use [gal/yr]0 $0.60 Moisture of biomass [% MC WB]5%Propane cost [$/yr]$0 $430.00 Energy of bone dry wood [Btu/ton]16,400,000 Heating electricity use [kWh/yr]14,139 Energy of actual biomass [Btu/ton]15,482,960 Heating electricity cost [$/yr]$7,621 Total energy input [MMBtu/yr]1,817 75%Heating device nameplate [MBH]1,000 Operating hours per day 12 Max. electrical demand [kW]0.30 Boiler output, low-fire [MBH]200 Energy consumption [MMBtu/HDD]0.24 Average electrical demand [kW]0.09 Average boiler output [MBH]311 Existing heat input [MMBtu/HDD]0.18 Wood Pellets Fuel type Oil Total load carried by wood, as %94.5% 500 Boiler output, high-fire [MBH]1,000 Operating hours per year 8,352 63 Boiler output, low-fire [MBH]200 Biomass boiler output [% of peak]58% 1.4 Max. electrical demand [kW]1.0 0.8 Average electrical demand [kW]0.13 85%Boiler efficiency 75% 98 Oil consumption [gal/yr]716 Total fuel consumption [MMBtu/yr]1,581 $42,081 Oil cost [$/yr]$2,320 Total fuel cost [$/yr]$44,401 7,045 Electrical consumption [kWh/yr]1,044 Total electrical consumption [kWh/yr]8,089 $4,200 Electrical use charge [$/yr]$622 Total electrical use charge [$/yr]$4,822 $207 Electrical demand charge [$/yr]$153 Total electrical demand charge [$/yr]$359 September 450 108 81 90 6 5.8 October 651 157 118 131 9 8.4 November 980 236 177 197 13 12.7 December 1,188 286 214 239 16 15.4 January 998 240 180 200 13 12.9 February 870 209 157 175 11 11.3 March 807 194 146 162 11 10.5 April 597 144 108 120 8 7.7 May 394 95 71 79 5 5.1 June 234 56 42 47 3 3.0 July 169 41 30 34 2 2.2 August 209 50 38 42 3 2.7 Yearly Total 7,546 1,817 1,363 1,515 100 98 * Low-fire output includes the use of a 1,000-gallon thermal storage to increase effective boiler turndown Net fossil energy savings [MMBtu/yr]1,717 Proposed Biomass Boiler Specifications Proposed Trim Boiler Specifications Current System Values Proposed System Values Fuel type Boiler efficiency Current System Consumption Heating oil cost [$/gal] Propane cost [$/gal] Electricity demand cost [$/kW] Electricity cost [$/kWh] Fuel Prices Conversion Factors Delivered biomass fuel cost [$/ton] Month Heating Degree Days [HDD] Current gross fossil energy consumption [MMBtu] Current net space heat energy input [MMBtu] Projected biomass boiler gross energy consumption [MMBtu] Projected trim boiler energy consumption [MMBtu] Projected wood fuel use [tons] Boiler output, high-fire [MBH] Boiler output, low-fire* [MBH] Boiler efficiency Proposed Biomass Boiler Consumption and Cost Wood fuel consumption [tons/yr] Delivered wood fuel cost [$/yr] Electrical consumption [kWh/yr] Electrical energy cost [$/yr] Electrical demand charge [$/yr] Proposed Trim Boiler Consumption and Cost Proposed Totals Max. electrical demand [kW] Average electrical demand [kW] WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX D Preliminary Site Plan 40'10'PROPOSED BIOMASSBOILER CONTAINER SITEGYM (E)SCHOOL (E)OFSHEETDESCRIPTIONDATEREVDRAWING NO.1DRAWN:PROJECT:CONTACT:DATE:KLUIF IT DOES NOT MEASURE 2THIS LINE IS 2 INCHESAT FULL SCALEINCHES, SCALE ACCORDINGLYPRELIMINARY, FORREVIEW ONLYNOT FORCONSTRUCTIONBKLUKWAN SCHOOLBIOMASS BOILERINSTALLATIONKLUKWAN, AKENGINEER'S STAMPPROJECT LOCATIONDRAWING TITLEPROJECTOWNERDESIGN FIRMACDEFGH654321J. ABELA. HADEN07.20.2017TEL. 503.608.7366FAX 503.715.0483INFO@WISEWOODENERGY.COMWWW.WISEWOODENERGY.COM2409 N KERBY AVENUEPORTLAND, OR 97227PROPOSED BIOMASSBOILER CONTAINER SITE1M0.0SCALE: 1/64" = 1'-0"N1PROPOSED BIOMASSBOILER CONTAINERSITEM0.0xxx WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX E Preliminary Estimated Operating Costs Stabilized Year for Wood Chips, Cordwood, and Pellet Systems All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Operating Expenses - Wood Chip Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Client Contact Jim Wagner Proposed System Output (MBH)500 Phone Date 7/27/17 Proposed System Fuel Type Wood Chips Email Item Total Existing Fossil Fuel Heating System Operating Cost Heating Oil Fuel Current heating oil consumption 12,723 gallons per year Current heating oil cost 3.24$ per gallon Subtotal: 41,215$ Electricity Current electricity for heating consumption 14,139 kWh per year Current electricity for heating demand 5.1 kW Electricity cost 0.60$ per kWh Electrical demand cost 12.71$ per kW Subtotal: 9,211$ Maintenance Maintenance labor 2,000$ per year Maintenance parts 1,000$ per year Subtotal: 3,000$ Existing Boiler Cost, Total 53,426$ Proposed Biomass Energy System Operating and Maintenance Cost Wood Fuel Wood use 119 tons per year Wood fuel cost 114$ per ton Subtotal: 13,567$ Electricity to Run Boiler Total electrical consumption 8,089 kWh Total electrical use charge 4,822$ per year Total electrical demand charge 359$ per year Subtotal: 5,182$ Remaining Heating Oil Heating oil use (peak and low load)716 gallons Heating oil cost 3.24$ per gallon Subtotal: 2,320$ Andrew Haden (503) 706-6187 andrew@wisewoodenergy.com All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Wood Fuel Handling & Delivery Handling and transportation 119 tons per year Tons per delivery 20 tons per load Fuel deliveries needed 6 loads per year Transportation cost after first 150 km 4$ CAD per km Exchange rate 0.75$ CAD to USD Delivery distance 220 km Transportation cost 210$ USD per delivery Subtotal: 1,250$ Ash Disposal Ash container removal 19 intervals Labor for ash container removal 55$ per interval Ash disposal fee 18$ per interval Subtotal: 1,351$ New Biomass System Operations Cost, Total 23,669$ Weekly Maintenance Weekly boiler checklist 40 weeks Labor cost 50$ per week Subtotal: 2,000$ Monthly Maintenance Monthly boiler checklist 12 months Labor cost 150$ per month Boiler water treatment 40$ per month Subtotal: 2,280$ Remote Monitoring Remote monitoring 12 months per year Static IP and Internet connection 60$ per month Subtotal: 720$ New Biomass System Maintenance Costs, Total 5,000$ New Biomass System Cost, Total 28,669$ *The Operating Expenses budget shown above does not include any possible cost of personnel to manage fuel procurement. All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Operating Expenses - Cordwood Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Client Contact Jim Wagner Proposed System Output (MBH)500 Phone Date 7/27/17 Proposed System Fuel Type Cordwood Email Item Total Existing Fossil Fuel Heating System Operating Cost Heating Oil Fuel Current heating oil consumption 12,723 gallons per year Current heating oil cost 3.24$ per gallon Subtotal: 41,215$ Electricity Current electricity for heating consumption 14,139 kWh per year Current electricity for heating demand 5.1 kW Electricity cost 0.60$ per kWh Electrical demand cost 12.71$ per kW Subtotal: 9,211$ Maintenance Maintenance labor 2,000$ per year Maintenance parts 1,000$ per year Subtotal: 3,000$ Existing Boiler Cost, Total 53,426$ Proposed Biomass Energy System Operating and Maintenance Cost Wood Fuel Wood use 119 tons per year Wood fuel cost 165$ per ton Subtotal: 19,688$ Electricity to Run Boiler Total electrical consumption 8,089 kWh Total electrical use charge 4,822$ per year Total electrical demand charge 359$ per year Subtotal: 5,182$ Remaining Heating Oil Heating oil use (peak and low load)716 gallons Heating oil cost 3.24$ per gallon Subtotal: 2,320$ Daily Fuel Loading Cordwood loading 455 intervals Labor time per interval 0.5 hours Labor cost 25$ per hour Subtotal: 5,688$ Andrew Haden (503) 706-6187 andrew@wisewoodenergy.com All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Ash Disposal Ash container removal 46 intervals Labor for ash container removal 25$ per interval Ash disposal fee 25$ per interval Subtotal: 2,275$ New Biomass System Operations Cost, Total 35,152$ Monthly Maintenance Monthly boiler checklist 12 months Labor cost 150$ per month Boiler water treatment 40$ per month Subtotal: 2,280$ Remote Monitoring Remote monitoring 12 months per year Static IP and Internet connection 60$ per month Subtotal: 720$ New Biomass System Maintenance Costs, Total 3,000$ New Biomass System Cost, Total 38,152$ *The Operating Expenses budget shown above does not include any possible cost of personnel to manage fuel procurement. All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Operating Expenses - Pellet Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Client Contact Jim Wagner Proposed System Output (MBH)500 Phone Date 7/27/17 Proposed System Fuel Type Wood Pellets Email Item Total Existing Fossil Fuel Heating System Operating Cost Heating Oil Fuel Current heating oil consumption 12,723 gallons per year Current heating oil cost 3.24$ per gallon Subtotal: 41,215$ Electricity Current electricity for heating consumption 14,139 kWh per year Current electricity for heating demand 5.1 kW Electricity cost 0.60$ per kWh Electrical demand cost 12.71$ per kW Subtotal: 9,211$ Maintenance Maintenance labor 2,000$ per year Maintenance parts 1,000$ per year Subtotal: 3,000$ Existing Boiler Cost, Total 53,426$ Proposed Biomass Energy System Operating and Maintenance Cost Wood Fuel Wood use 98 tons per year Wood fuel cost 430$ per ton Subtotal: 42,081$ Electricity to Run Boiler Total electrical consumption 8,089 kWh Total electrical use charge 4,822$ per year Total electrical demand charge 359$ per year Subtotal: 5,182$ Remaining Heating Oil Heating oil use (peak and low load)716 gallons Heating oil cost 3.24$ per gallon Subtotal: 2,320$ Ash Disposal Ash container removal 18 intervals Labor for ash container removal 55$ per interval Ash disposal fee 18$ per interval Subtotal: 1,306$ New Biomass System Operations Cost, Total 50,889$ Andrew Haden (503) 706-6187 andrew@wisewoodenergy.com All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Weekly Maintenance Weekly boiler checklist 40 weeks Labor cost 50$ per week Subtotal: 2,000$ Monthly Maintenance Monthly boiler checklist 12 months Labor cost 150$ per month Boiler water treatment 40$ per month Subtotal: 2,280$ Remote Monitoring Remote monitoring 12 months per year Static IP and Internet connection 60$ per month Subtotal: 720$ New Biomass System Maintenance Costs, Total 5,000$ New Biomass System Cost, Total 55,889$ *The Operating Expenses budget shown above does not include any possible cost of personnel to manage fuel procurement. WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX F Preliminary Estimated Capital Costs for Wood Chips, Cordwood, and Pellet Systems All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Capital Cost Summary - Wood Chip Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/27/17 Proposed System Fuel Type Wood Chips Email andrew@wisewoodenergy.com Est.Install Install Install Line % Total Item Description Hours Equipment Materials Labor Total Project Construction Costs Site Prep and Excavation Included Included Included Included 7,000$ 1.0% Boiler/Fuel Container and Foundation 400 2,000$ 92,000$ 50,000$ 144,000$ 19.7% Biomass Boiler 250 4,000$ 52,000$ 31,000$ 87,000$ 11.8% Mech. Integration with Existing HVAC 360 -$ 35,000$ 45,000$ 79,000$ 10.8% Hydronic Equipment 80 -$ 13,000$ 10,000$ 23,000$ 3.1% Electrical 120 -$ 16,000$ 15,000$ 31,000$ 4.2% Emissions Controls -$ -$ -$ -$ 0.0% Mechanical Contractor, Travel and Per Diem 22,000$ 22,000$ 3.4% Permitting 5,000$ 0.7% Freight 20,000$ 2.7% Contingency and Unlisted Items 84,000$ 11.4% Subtotal Direct Costs 1,200 6,000$ 208,000$ 172,000$ 502,000$ 68.3% General Contractor Costs 100,000$ 13.7% Subtotal Construction Costs 602,000$ 82.0% Engineering, Commissioning and Management Costs Engineering, Procurement and Construction 72,000$ 9.8% Alaska Bush Construction Cost Premium 60,000$ 8.2% Subtotal Development Costs 132,000$ 18.0% Total Capital Costs 734,000$ 100% Labor Rates $/Hour Mechanical contractor 125$ Electrician 125$ Engineering and Project Management 150$ Finance and Accounting 200$ All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Capital Cost Summary - Cordwood Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/27/17 Proposed System Fuel Type Cordwood Email andrew@wisewoodenergy.com Est.Install Install Install Line % Total Item Description Hours Equipment Materials Labor Total Project Construction Costs Site Prep and Excavation Included Included Included Included 4,000$ 0.7% Boiler/Fuel Container and Foundation 80 -$ 33,000$ 10,000$ 43,000$ 7.8% Biomass Boiler 270 4,000$ 51,000$ 34,000$ 89,000$ 16.2% Mech. Integration with Existing HVAC 360 -$ 34,640$ 44,500$ 79,140$ 14.4% Hydronic Equipment 80 -$ 13,000$ 9,500$ 23,000$ 4.2% Electrical 120 -$ 16,000$ 15,000$ 31,000$ 5.7% Emissions Controls -$ -$ -$ -$ 0.0% Mechanical Contractor, Travel and Per Diem 18,000$ 18,000$ 3.4% Permitting 5,000$ 0.9% Freight 20,000$ 3.6% Contingency and Unlisted Items 62,000$ 11.4% Subtotal Direct Costs 900 4,000$ 148,000$ 131,000$ 374,000$ 68.3% General Contractor Costs 75,000$ 13.7% Subtotal Construction Costs 449,000$ 82.0% Engineering, Commissioning and Management Costs Engineering, Procurement and Construction 54,000$ 9.8% Alaska Bush Construction Cost Premium 45,000$ 8.2% Subtotal Development Costs 99,000$ 18.0% Total Capital Costs 548,000$ 100% Labor Rates $/Hour Mechanical contractor 125$ Electrician 125$ Engineering and Project Management 150$ Finance and Accounting 200$ All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. Copyright © Wisewood Energy. All rights reserved. Klukwan School & Gym Preliminary Estimated Capital Cost Summary - Pellet Boiler Location Klukwan, AK Proposed System Biomass Boiler Contact Andrew Haden Client Contact Jim Wagner Proposed System Output (MBH)500 Phone (503) 706-6187 Date 7/27/17 Proposed System Fuel Type Wood Pellets Email andrew@wisewoodenergy.com Est.Install Install Install Line % Total Item Description Hours Equipment Materials Labor Total Project Construction Costs Site Prep and Excavation Included Included Included Included 7,000$ 1.0% Boiler/Fuel Container and Foundation 260 12,000$ 70,000$ 33,000$ 115,000$ 17.0% Biomass Boiler 250 4,000$ 49,000$ 31,000$ 84,000$ 12.4% Mech. Integration with Existing HVAC 360 -$ 35,000$ 45,000$ 79,000$ 11.7% Hydronic Equipment 80 -$ 13,000$ 10,000$ 23,000$ 3.4% Electrical 120 -$ 16,000$ 15,000$ 31,000$ 4.6% Emissions Controls -$ -$ -$ -$ 0.0% Mechanical Contractor, Travel and Per Diem 21,000$ 21,000$ 3.4% Permitting 5,000$ 0.7% Freight 20,000$ 3.0% Contingency and Unlisted Items 77,000$ 11.4% Subtotal Direct Costs 1,060 16,000$ 183,000$ 154,000$ 461,000$ 68.3% General Contractor Costs 92,000$ 13.7% Subtotal Construction Costs 553,000$ 82.0% Engineering, Commissioning and Management Costs Engineering, Procurement and Construction 66,000$ 9.8% Alaska Bush Construction Cost Premium 55,000$ 8.2% Subtotal Development Costs 122,000$ 18.0% Total Capital Costs 675,000$ 100% Labor Rates $/Hour Mechanical contractor 125$ Electrician 125$ Engineering and Project Management 150$ Finance and Accounting 200$ WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX G Life Cycle Cost Analyses for Wood Chips, Cordwood, and Pellet Systems, 20-year and 25-year KLU.10_Life Cycle Cost Analysis_2017-07-21_Rev4.xlsx BIOMASS PROJECT LIFE CYCLE COST ANALYSIS - WOOD CHIPS KLUKWAN, AK Analysis Results 20-Year Life 25-Year Life Project Capital Cost ($734,000)($734,000) Present Value of Project Benefits $645,089 $868,402 Benefit/Cost Ratio of Project 0.88 1.18 Net Present Value of Project ($88,911)$134,402 Year Accumulated Cash Flow is Positive Year 1 Year 1 Payback Period (Net Present Value is Positive)>20 Years 23 Years Present Value Factors Real Discount Rate 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% Description Unit Cost Annual Units Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Consumption 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Existing Heating System Operating Costs Current Heating Oil Consumption $3.24 12,723 gal $41,223 $43,284 $45,448 $47,720 $50,106 $52,612 $55,242 $58,004 $60,904 $63,950 $67,147 $70,504 $74,030 $77,731 $81,618 $85,699 $89,984 $94,483 $99,207 $104,167 Current Electricity Consumption (incl. demand charges)$0.60 14,139 kWh $9,261 $9,539 $9,825 $10,120 $10,424 $10,736 $11,058 $11,390 $11,732 $12,084 $12,446 $12,820 $13,204 $13,600 $14,008 $14,429 $14,862 $15,307 $15,767 $16,240 Current Operations & Maintenance Costs $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 $3,805 $3,881 $3,958 $4,038 $4,118 $4,201 $4,285 $4,370 Total Existing System Operating Costs $53,484 $55,883 $58,394 $61,024 $63,777 $66,660 $69,679 $72,840 $76,151 $79,619 $83,250 $87,054 $91,039 $95,212 $99,585 $104,165 $108,964 $113,991 $119,258 $124,777 Biomass System Operating Costs Biomass Fuel Consumption (delivered to site)$124.00 119 tons ($14,756)($15,199)($15,655)($16,124)($16,608)($17,106)($17,619)($18,148)($18,692)($19,253)($19,831)($20,426)($21,039)($21,670)($22,320)($22,989)($23,679)($24,389)($25,121)($25,875) Trim Fuel Consumption (heating oil)$3.24 716 gal ($2,320)($2,436)($2,558)($2,686)($2,820)($2,961)($3,109)($3,264)($3,427)($3,599)($3,779)($3,968)($4,166)($4,374)($4,593)($4,823)($5,064)($5,317)($5,583)($5,862) Electricity Consumption (incl. demand charges)$0.60 8,089 kWh ($5,212)($5,369)($5,530)($5,696)($5,867)($6,043)($6,224)($6,411)($6,603)($6,801)($7,005)($7,215)($7,432)($7,655)($7,884)($8,121)($8,364)($8,615)($8,874)($9,140) Biomass Operations & Maintenance Costs ($6,351)($6,478)($6,608)($6,740)($6,875)($7,012)($7,152)($7,295)($7,441)($7,590)($7,742)($7,897)($8,055)($8,216)($8,380)($8,548)($8,719)($8,893)($9,071)($9,252) Total Biomass System Operating Costs ($28,639)($29,481)($30,350)($31,245)($32,169)($33,122)($34,104)($35,118)($36,164)($37,243)($38,356)($39,505)($40,691)($41,914)($43,177)($44,481)($45,826)($47,215)($48,649)($50,129) Operating Cost Savings (Project Benefits)$24,845 $26,401 $28,045 $29,779 $31,608 $33,538 $35,575 $37,722 $39,987 $42,376 $44,894 $47,549 $50,348 $53,298 $56,408 $59,684 $63,138 $66,776 $70,610 $74,648 Accumulated Cash Flow $24,845 $51,246 $79,291 $109,069 $140,677 $174,216 $209,791 $247,513 $287,500 $329,876 $374,770 $422,319 $472,667 $525,965 $582,372 $642,057 $705,195 $771,971 $842,580 $917,229 Net Present Value ($709,879)($684,993)($659,328)($632,871)($605,605)($577,517)($548,592)($518,813)($488,166)($456,635)($424,202)($390,853)($356,568)($321,332)($285,126)($247,932)($209,733)($170,509)($130,241)($88,911) Shaded cells are user-defined inputs Minor deviations in some values due to rounding KLU.10_Life Cycle Cost Analysis_2017-07-21_Rev4.xlsx BIOMASS PROJECT LIFE CYCLE COST ANALYSIS - CORDWOOD KLUKWAN, AK Analysis Results 20-Year Life 25-Year Life Project Capital Cost ($548,000)($548,000) Present Value of Project Benefits $550,261 $757,639 3.24 0.29 Benefit/Cost Ratio of Project 1.00 1.38 3.53 8.9506173 Net Present Value of Project $2,261 $209,639 Year Accumulated Cash Flow is Positive Year 1 Year 1 Payback Period (Net Present Value is Positive)>20 Years 23 Years Present Value Factors Real Discount Rate 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% Description Unit Cost Annual Units Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Consumption 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Existing Heating System Operating Costs Current Heating Oil Consumption $3.53 12,723 gal $44,912 $47,158 $49,516 $51,991 $54,591 $57,321 $60,187 $63,196 $66,356 $69,674 $73,157 $76,815 $80,656 $84,689 $88,923 $93,369 $98,038 $102,940 $108,087 $113,491 Current Electricity Consumption (incl. demand charges)$0.60 14,139 kWh $9,261 $9,539 $9,825 $10,120 $10,424 $10,736 $11,058 $11,390 $11,732 $12,084 $12,446 $12,820 $13,204 $13,600 $14,008 $14,429 $14,862 $15,307 $15,767 $16,240 Current Operations & Maintenance Costs $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 $3,805 $3,881 $3,958 $4,038 $4,118 $4,201 $4,285 $4,370 Total Existing System Operating Costs $57,173 $59,757 $62,462 $65,295 $68,262 $71,369 $74,624 $78,032 $81,603 $85,343 $89,261 $93,365 $97,665 $102,170 $106,890 $111,836 $117,018 $122,448 $128,138 $134,101 Biomass System Operating Costs Biomass Fuel Consumption (delivered to site)$165.00 119 tons ($19,635)($20,224)($20,831)($21,456)($22,099)($22,762)($23,445)($24,149)($24,873)($25,619)($26,388)($27,179)($27,995)($28,835)($29,700)($30,591)($31,508)($32,454)($33,427)($34,430) Trim Fuel Consumption (heating oil)$3.53 716 gal ($2,527)($2,654)($2,787)($2,926)($3,072)($3,226)($3,387)($3,556)($3,734)($3,921)($4,117)($4,323)($4,539)($4,766)($5,004)($5,254)($5,517)($5,793)($6,083)($6,387) Electricity Consumption (incl. demand charges)$0.60 8,089 kWh ($5,212)($5,369)($5,530)($5,696)($5,867)($6,043)($6,224)($6,411)($6,603)($6,801)($7,005)($7,215)($7,432)($7,655)($7,884)($8,121)($8,364)($8,615)($8,874)($9,140) Biomass Operations & Maintenance Costs (incl. fuel loading)($10,963)($11,182)($11,406)($11,634)($11,867)($12,104)($12,346)($12,593)($12,845)($13,102)($13,364)($13,631)($13,904)($14,182)($14,465)($14,755)($15,050)($15,351)($15,658)($15,971) Total Biomass System Operating Costs ($38,338)($39,429)($40,553)($41,711)($42,905)($44,135)($45,402)($46,709)($48,055)($49,443)($50,874)($52,349)($53,869)($55,437)($57,054)($58,721)($60,440)($62,213)($64,042)($65,928) Operating Cost Savings (Project Benefits)$18,836 $20,328 $21,909 $23,584 $25,357 $27,234 $29,221 $31,324 $33,548 $35,900 $38,387 $41,016 $43,796 $46,733 $49,836 $53,115 $56,578 $60,235 $64,096 $68,173 Accumulated Cash Flow $18,836 $39,164 $61,073 $84,656 $110,014 $137,248 $166,469 $197,793 $231,340 $267,240 $305,627 $346,643 $390,439 $437,172 $487,008 $540,123 $596,701 $656,936 $721,032 $789,205 Net Present Value ($529,713)($510,552)($490,502)($469,548)($447,675)($424,867)($401,107)($376,380)($350,668)($323,956)($296,224)($267,456)($237,633)($206,737)($174,749)($141,650)($107,419)($72,038)($35,484)$2,261 Shaded cells are user-defined inputs Minor deviations in some values due to rounding KLU.10_Life Cycle Cost Analysis_2017-07-21_Rev4.xlsx BIOMASS PROJECT LIFE CYCLE COST ANALYSIS - WOOD PELLETS KLUKWAN, AK Analysis Results 20-Year Life 25-Year Life Project Capital Cost ($675,000)($675,000) Present Value of Project Benefits $114,159 $204,716 Benefit/Cost Ratio of Project 0.17 0.30 Net Present Value of Project ($560,841)($470,284) Year Accumulated Cash Flow is Positive Year 7 Year 7 Payback Period (Net Present Value is Positive)>20 Years >25 Years Present Value Factors Real Discount Rate 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% Description Unit Cost Annual Units Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Consumption 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Existing Heating System Operating Costs Current Heating Oil Consumption $3.24 12,723 gal $41,223 $43,284 $45,448 $47,720 $50,106 $52,612 $55,242 $58,004 $60,904 $63,950 $67,147 $70,504 $74,030 $77,731 $81,618 $85,699 $89,984 $94,483 $99,207 $104,167 Current Electricity Consumption (incl. demand charges)$0.60 14,139 kWh $9,261 $9,539 $9,825 $10,120 $10,424 $10,736 $11,058 $11,390 $11,732 $12,084 $12,446 $12,820 $13,204 $13,600 $14,008 $14,429 $14,862 $15,307 $15,767 $16,240 Current Operations & Maintenance Costs $3,000 $3,060 $3,121 $3,184 $3,247 $3,312 $3,378 $3,446 $3,515 $3,585 $3,657 $3,730 $3,805 $3,881 $3,958 $4,038 $4,118 $4,201 $4,285 $4,370 Total Existing System Operating Costs $53,484 $55,883 $58,394 $61,024 $63,777 $66,660 $69,679 $72,840 $76,151 $79,619 $83,250 $87,054 $91,039 $95,212 $99,585 $104,165 $108,964 $113,991 $119,258 $124,777 Biomass System Operating Costs Biomass Fuel Consumption (delivered to site)$430.00 98 tons ($42,140)($43,404)($44,706)($46,048)($47,429)($48,852)($50,317)($51,827)($53,382)($54,983)($56,633)($58,332)($60,082)($61,884)($63,741)($65,653)($67,622)($69,651)($71,741)($73,893) Trim Fuel Consumption (heating oil)$3.24 716 gal ($2,320)($2,436)($2,558)($2,686)($2,820)($2,961)($3,109)($3,264)($3,427)($3,599)($3,779)($3,968)($4,166)($4,374)($4,593)($4,823)($5,064)($5,317)($5,583)($5,862) Electricity Consumption (incl. demand charges)$0.60 8,089 kWh ($5,212)($5,369)($5,530)($5,696)($5,867)($6,043)($6,224)($6,411)($6,603)($6,801)($7,005)($7,215)($7,432)($7,655)($7,884)($8,121)($8,364)($8,615)($8,874)($9,140) Biomass Operations & Maintenance Costs ($6,306)($6,432)($6,561)($6,692)($6,826)($6,962)($7,102)($7,244)($7,388)($7,536)($7,687)($7,841)($7,998)($8,157)($8,321)($8,487)($8,657)($8,830)($9,007)($9,187) Total Biomass System Operating Costs ($55,978)($57,641)($59,355)($61,121)($62,941)($64,818)($66,752)($68,745)($70,801)($72,919)($75,103)($77,355)($79,677)($82,070)($84,539)($87,083)($89,707)($92,413)($95,204)($98,081) Operating Cost Savings (Project Benefits)($2,494)($1,758)($960)($97)$836 $1,843 $2,927 $4,095 $5,351 $6,700 $8,147 $9,699 $11,362 $13,142 $15,046 $17,082 $19,256 $21,578 $24,055 $26,696 Accumulated Cash Flow ($2,494)($4,253)($5,213)($5,310)($4,474)($2,631)$296 $4,391 $9,742 $16,442 $24,589 $34,288 $45,650 $58,792 $73,838 $90,920 $110,176 $131,753 $155,808 $182,504 Net Present Value ($677,422)($679,079)($679,958)($680,044)($679,323)($677,780)($675,399)($672,167)($668,066)($663,081)($657,195)($650,392)($642,655)($633,967)($624,309)($613,665)($602,014)($589,340)($575,622)($560,841) Shaded cells are user-defined inputs Minor deviations in some values due to rounding WISEWOOD ENERGY • Technology in Service of Community and Environment APPENDIX H CE2 Engineers Haines Borough Wood Source Report (2009) CE2 Engineers, Inc. Haines Borough Wood Source Report [Local wood source analysis prepared for the Haines Borough for investigation of a potential woody biomass‐fired district heating system.] Paul C. Weisner, P.E. December 2009 Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page i Table of Contents 1.0 INTRODUCTION .............................................................................................................. 1 2.0 WOODY BIOMASS FUEL SOURCES ............................................................................ 3 2.1 Selection Of Most Favorable Biomass Option ................................................................................ 3 3.0 WOOD DERIVED FROM HAINES STATE FOREST .................................................... 5 3.1.1 Environmental Factors In Using Local Biomass ...................................................... 8 3.1.2 Social Factors In Using Local Biomass .................................................................... 8 4.0 WOOD DERIVED FROM BEETLE-KILLED SPRUCE IN THE YUKON .................... 9 4.1 Environmental Factors In Using Yukon Biomass .......................................................................... 10 4.2 Social Factors In Using Yukon Biomass ....................................................................................... 11 5.0 WOOD DERIVED FROM SAWMILL SLAB WASTE FROM TOK SAWMILLS ...... 12 5.1 Environmental Factors In Using Tok Sawmill Biomass ................................................................ 14 5.2 Social Factors In Using Tok Sawmill Biomass ............................................................................. 14 6.0 WOOD CHIPS FROM SAWMILL WASTE AT VIKING LUMBER SAWMILL IN CRAIG .............................................................................................................................. 15 6.1 Environmental Factors In Using Viking Lumber Sawmill Biomass ............................................. 16 6.2 Social Factors In Using Viking Lumber Sawmill Biomass ........................................................... 17 7.0 WOOD FUEL DERIVED FROM PELLETS ................................................................... 18 7.1 Environmental Factors In Using Wood Pellets .............................................................................. 19 7.2 Social Factors In Using Wood Pellets ........................................................................................... 19 8.0 OTHER LOCAL SOURCES OF FUEL ........................................................................... 21 8.1 Wood Fuel From Local Sawmill Waste ......................................................................................... 21 8.2 Wood Fuel From Collected Scrap Paper And Cardboard .............................................................. 21 9.0 COMPARISON MATRIX FOR THE WOODY BIOMASS FUEL ALTERNATIVES . 22 10.0 CONCLUSIONS............................................................................................................... 24 Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 1 1.0 INTRODUCTION This report examines the possible sources of woody biomass to heat selected Borough buildings in an effort to displace the use of fuel oil. This is part of an overall feasibility study by the Haines Borough, through funding by the Alaska Energy Authority and the Borough to determine the feasibility of establishing a central woody biomass-fired boiler and buried heat distribution system to selected Borough buildings. Because of its nature, using woody biomass—be it cordwood, pellets, or chips—generally involves more handling and more complicated combustion than fuels such as fuel oil, or gaseous fuels, such as natural gas and propane. Also, the nature of using woody biomass requires consideration of possible impacts, be they economic, environmental, aesthetic, or social. This report will detail the individual characteristics of the woody biomass choices and will summarize them in a matrix to enable the Borough and the Public to understand each source of fuel, and to be able to make an informed decision on the type of fuel that would be most appropriate for a biomass heating plant in Haines. Four Borough-owned buildings in the downtown area of Haines are planned to be heated by a central biomass-fired boiler system. They are: • K-12 school • Vocational education shop • Borough administration office • Borough Library At the beginning of this report it is important to understand how much fuel oil will be potentially displaced by biomass fuel and how much biomass fuel will be required. The four buildings mentioned above burn about 40,100 gallons of fuel oil. When displacing fuel oil, a practical amount of seasonal fuel oil displacement is 90%. By experience, this makes the best balance for a woody biomass-fired boiler to meet peak heating loads and the ability of the boiler to fire at low rates efficiently. Therefore, it can be expected that 90% of 40,100 gallons, or 36,090 gallons, will be displaced by biomass. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 2 Displacing this amount of fuel oil with wood chips at 50% moisture would require about 703 tons of chips. If this amount of fuel is displaced with wood pellets, it would require about 314 tons of pellets. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 3 2.0 WOODY BIOMASS FUEL SOURCES There are a number of reasonable possibilities for biomass sources for the Haines Borough. The characteristics of each source will be examined as follows: 1. Physical characteristics: properties as it exists in its raw form, such as size, moisture, location. 2. Handling characteristics: handling of the biomass and processing necessary to make the fuel usable. 3. Transportation issues: Transporting, storing, and related costs for bringing the biomass to the central boiler. 4. Environmental factors of using biomass. 5. Social factors related to using biomass. 6. Economic aspects of the biomass. 2.1 Selection Of Most Favorable Biomass Option The fuel selected must be economically viable. It makes no sense to burn woody biomass, with the extra processing and labor involved, if it was not significantly less than fuel oil. At first look, local fuel will provide the least transportation cost. Cost of transportation varies with the cost of diesel fuel, which powers barge or truck transportation. Consequently, during times of high oil prices, transportation cost increases may nullify economic benefits of the fuel. Locally harvested and processed wood will use less fuel than that transported long distances by barge or truck, so the sensitivity of the wood cost due to fuel oil prices will be less. Handling of the woody biomass is another important factor. Every step in the process involves costs. Logs hauled from the woods, chipped, stored, chip piles turned, and transported to the storage bin involve these processes. Also, waste logs of a size not easy to chip may not be economical. Increased handling can negate much of the advantage of a particular biomass source. Reliability and sustainability of the source is another important factor in evaluating the woody biomass. It is not a responsible action to cut prime timber for burning, but it is very responsible to cut lower value woody biomass as part of another existing timber harvesting program in the Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 4 same harvest area or timber sale. In addition, the harvesting of the woody biomass must be part of a sustained yield program in the forest. If other species of wood can be used for chips that are normally underutilized timber in the forest, then a useful product is produced from an unused species or waste stream, which should also provide a lower cost. The woody biomass stream for fuel should be in line with sustainable yields in a managed forest. Are there backup sources for the woody biomass? If, for some reason, the best choice of wood source is lost or not available, what is the alternative? This gets into source reliability issues and economics. These issues must be examined with any source. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 5 3.0 WOOD DERIVED FROM HAINES STATE FOREST The Haines State Forest has an established management plan. Based upon a 120-year growth cycle, the forest is capable of sustained harvest of 300 acres per year. Presently, the forest is harvested at 16% of the sustained maximum, or about 48 acres per year. Timber harvested at present is Sitka spruce. Along with Sitka spruce is western hemlock. At this time, western hemlock is not harvested at significant amounts for saw logs, but some is used for cordwood for residential wood heat. This means that harvesting western hemlock for wood chips presents a good opportunity for utilizing timber that is normally not readily marketable or underutilized. Based upon preliminary estimates by the Haines State Forester, timber yield is about 70 tons per acre. There are presently about 1900 acres within 0.5 miles of existing roads. It is estimated that about 10 acres per year of timber will be required to produce enough chips to heat the selected Borough buildings: Library, Administration Building, K-12 School and pool, and vocational education shop. This represents about 3% of the total allowable harvest of the Haines State Forest. The most economical harvest for wood chips would be to harvest the hemlock or other secondary timber, such as cottonwood or alder as part of the main timber sale. Doing this would keep the cost of the chip wood down, as the saw timber would sustain the bulk of the costs for development of the area to be harvested. To provide wood chips for heating will require the following operations: 1. Harvesting: Timber is hauled out of the woods using standard logging methods. It is important that timber not have significant amounts of imbedded dirt and rocks, as rocks can cause serious problems with the chipper, and dirt in the wood can cause deposits and clinkers in the boiler firebox and on the hot surfaces of the boiler from the combustion process. 2. Decking: Timber from the harvesting site is stacked in a yard where the chipping operation will be performed. Timber should be blocked up off the ground to prevent moisture pickup. Also, canvas tarps should be placed on top of the deck to shed rain. 3. Chipping: A chipper would be required to reduce the logs to wood chips. Because of the large size of the logs, a large, robust chipper would be needed. The price of a chipper, depending upon size, used condition, or new, could range from $60,000 to Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 6 $250,000. There are several options for chippers. A contractor could buy it on his or her own and use it on a multi-year contract. Another possibility is that the Borough purchase and owns the chipper, and leases it out to the wood chip supplier. A third possibility is to have the large Roto-chopper chipper owned by the Tok Umbrella Corporation transported from Tok for about two weeks every year to chip the 700 tons needed in one operation for the Borough heat plant. 4. Storage: This could range from nothing required, if the wood is chipped to a trailer or dump truck, to enough storage for one season of chips. The capital costs of a shelter to house 703 tons of chips from the weather can be high. 5. Turning the chip pile to prevent composting: Based upon experiences from Montana School sites, wet chips have to be turned periodically with a loader to prevent composting of the interior of the pile. This is an additional cost. 6. Hauling chips to the boiler building chip storage bin: The chips have to be hauled by dump truck or chip van from the wood chipping area to the Borough heat building site where they will be used. This is also a cost. The net heat value of wood chips from the Haines State Forest will be highly variable, because of the wide range of moisture in the wood fuel. Moisture will range from 35% to over 70% moisture, wet basis. For the purposes of this discussion, fuel moisture will be conservatively assumed to be 50% (wet basis), where fuel moisture is calculated as follows: % Moisture = sample wet weight – sample oven dry weight x 100 Sample oven dry weight The heating value of dry western hemlock is about 8,500 BTU/lb. At 50% moisture, wet basis, 1 lb of green wood chips contains 0.5 lb dry wood and 0.5 lb water. To drive off the water requires the water in the wood to rise from ambient temperature, say, 50°F to 212°F, then to turn to steam. The heat of this change to drive off moisture is supplied by the energy of burning the wood, and is not available for useful heat. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 7 Water sensible heat: (212-50)F x 1 btu/lb/F x 0.5 lb = 80 BTU Latent heat of evaporation of water: 1000 BTU/lb x 0.5 lb = 500 BTU Total water loss in 0.5 lb water to drive it to steam = 580 BTU Heat value of wood part of fuel: 8500 BTU/Lb x 0.5 lb = 4250 BTU Net Heat Value of wood chips at 50% moisture = 3670 BTU/lb, wet basis. To displace 36,090 gallons of fuel oil would require: Heat of fuel oil = 36,090 gallons x 134,000 BTU/lb x 0.80 efficiency = 3.87 billion BTU Tons wood chips = 3.87 billion BTU 3670 BTU/lb x 0.75 efficiency x (2000 lb/1 ton) Tons wood chips = 703 Tons A reasonable range of costs for chips delivered to the Borough heating plant would range from $75/ton to $95/ton. State Forester Gregory Palmieri has researched data from previous timber sales, and estimates the cost to be approximately $85/ton, based upon historical data from the Haines State Forest. $75/ton x 703 tons = $52,725, equivalent to $52,725/36,090 gallons = $1.461/gallon $85/ton x 703 tons = $59,755, equivalent to $59,755/36,090 gallons = $1.656/gallon $95/ton x 703 tons = $66,785, equivalent to $66,785/36,090 gallons = $1.851/gallon At $2.50/gallon, fuel oil cost for 36,090 gallons would be $90,225. Depending upon design factors, additional electricity and maintenance for running the wood heat facility would be approximately $6,000 to $10,000 annually, so the facility would still be economic at $95/ton of wood chips. It should be recognized that the local fuel oil suppliers will see a decrease in their sales. How significant this loss of income could be will depend upon the total volume of their annual fuel sales. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 8 It should also be noted that a significant market could be developed in Haines by utilizing local wood chips and selling them to neighboring consumers. Presently, the Haines State Forest is highly underutilized. 3.1.1 Environmental Factors In Using Local Biomass Utilizing woody biomass from the Haines State Forest will enable the Haines Borough to use a fuel for heat that will reduce the Borough’s dependence on fossil fuels by 36,000 gallons per year. Woody biomass from the forest will greatly reduce the Borough’s carbon footprint by utilizing a fuel source that is sustainable and renewable through proper forest management. Burning forest biomass produces better emissions than that of fuel oil, as the sulfur component of the fuel is almost negligible. A potential contaminant of concern is fine particulate matter, but this can be removed from the exhaust stream by use of electrostatic precipitators. Proper selection of combustion equipment and stacks will result in a clean exhaust. Placement of the heating plant and stack will have to be carefully done to avoid having exhaust gases being drawn into ventilation air intakes on buildings. 3.1.2 Social Factors In Using Local Biomass By obtaining wood chips from local suppliers, Borough funds can be circulated in the local economy, which carries over to local timber contractors and their employees, as well as to local businesses. Since the plant will be located in the downtown area, aesthetics, as well as truck traffic, and other issues will have to be carefully studied to avoid problems. A positive factor in utilizing local biomass for heating Borough buildings is the effect of insulating the Borough from radical swings in the cost and availability of fuel oil. Events in the petroleum industry around the world can have disastrous impacts on local economies. Lowering the dependence on fossil fuels mitigates these impacts. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 9 4.0 WOOD DERIVED FROM BEETLEKILLED SPRUCE IN THE YUKON Another possibility of using hog fuel or chip fuel in the facility would be importing this fuel from Dimok Timber at Canyon Creek, near Haines Junction in the Yukon. The advantages of this fuel source are several: • The fuel can be either delivered as hog fuel or chips run through a vibrating screen, so no local equipment is required to process the fuel to a usable form. • The fuel will be low moisture, with an estimated range of 12% to 20%. The amount of fuel required is calculated as follows (assuming a conservative 20% moisture, wet basis): % Moisture = sample wet weight – sample oven dry weight x 100 Sample oven dry weight The heating value of black spruce is about 8,600 BTU/lb. At 20% moisture, wet basis, 1 lb of green wood chips contains 0.2 lb dry wood and 0.8 lb water. To drive off the water requires the water in the wood to rise from ambient temperature, say, 50°F to 212°F, then to turn to steam. The heat of this change to drive off moisture is supplied by the energy of burning the wood, and is not available for useful heat. Water sensible heat: (212-50)F x 1 BTU/lb/F x 0.2 lb = 32 BTU Latent heat of evaporation of water: 1000 BTU/lb x 0.2 lb = 200 BTU Total water loss in 0.2 lb water to drive it to steam = 232 BTU Heat value of wood part of fuel: 8600 BTU/Lb x 0.8 lb = 6880 BTU Net Heat Value of wood chips at 20% moisture = 6648 BTU/lb, wet basis. To displace 36,090 gallons of fuel oil would require: Heat of fuel oil = 36,090 gallons x 134,000 BTU/lb x 0.80 efficiency = 3.87 billion BTU Tons wood chips = 3.87 billion BTU 6648 BTU/lb x 0.75 efficiency x (2000 lb/1 ton) Tons wood chips = 388 Tons Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 10 John Clunies-Ross at Dimok Timber, Canyon Creek, near Haines Junction, Yukon, estimates a budget figure of CA$148/US ton, or US$140/ton for hog fuel, FOB (free on board) Haines, AK. For screened 2-inch minus wood chips, the cost would be CA$166/US ton, or US$157/ton, FOB Haines, AK. For 388 tons of chips imported from the Yukon, the annual cost would be: $157/ton x 388 tons = $60,916 for displacing 36,090 gallons of fuel oil At $2.50/gallon, fuel oil cost for 36,090 gallons would be $90,225. Depending upon design factors, additional electricity and maintenance for running the wood heat facility would be approximately $6,000 to $10,000 anually, so the facility would be economic at $157/ton of wood chips. Even though the cost of the product is high per ton, the low moisture of the chips still makes it an attractive alternative. It should be recognized that the local fuel oil suppliers will see a decrease in their sales. How significant this loss of income could be will depend upon the total volume of their annual fuel sales. For this wood source to be utilized, the Dimok Timber mill must be operating. A mill shutdown will eliminate this source of woody biomass. 4.1 Environmental Factors In Using Yukon Biomass Utilizing woody biomass from the Yukon source will enable the Haines Borough to use a fuel for heat that will reduce the Borough’s dependence on fossil fuels by 36,000 gallons per year. Woody biomass from the forest will reduce the Borough’s carbon footprint by utilizing a fuel source that is sustainable and renewable if proper forest management is practiced in the Yukon forests. Burning forest biomass produces better emissions than that of fuel oil, as the sulfur component of the fuel is almost negligible. A potential contaminant of concern is fine particulate matter, but this can be removed from the exhaust stream by use of electrostatic precipitators. Proper selection of combustion equipment and stacks will result in a clean exhaust. Placement of the heating plant and stack will have to be carefully done to avoid having exhaust gases being drawn into ventilation air intakes on buildings. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 11 Note that this product must be trucked approximate 150 miles from the Yukon, so transportation costs will be about 25% of the landed cost of the product. The carbon footprint, as well as emissions of particulates and sulfur compounds will be greater in this alternative than with utilizing local timber, because of the use of long haul trucks. 4.2 Social Factors In Using Yukon Biomass The Borough will save heating costs by purchasing the biomass fuel from the Yukon. However, the funds paid for the biomass fuel will still go outside the community, so there will not be the circulation of money and impact on jobs and the local economy will be minimal. Since the plant will be located in the downtown area, aesthetics, as well as truck traffic, and other issues will have to be carefully studied to avoid problems. A positive factor in utilizing local biomass for heating Borough buildings is the effect of insulating the Borough from radical swings in the cost and availability of fuel oil. Events in the petroleum industry around the world can have disastrous impacts on local economies. Lowering the dependence on fossil fuels mitigates these impacts. However, for this woody biomass source, there could be uncertainties with the Canadian dollar /US dollar exchange rate, as well as possible fuel surcharges on trucking, if the price of diesel fuel climbs radically. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 12 5.0 WOOD DERIVED FROM SAWMILL SLAB WASTE FROM TOK SAWMILLS Another possibility of utilizing biomass would be to use slab waste from sawmills in Tok, Alaska, and truck the slabs down to Haines. The slabs would then be chipped at Haines and delivered to the fuel bin at the Borough heating plant. The advantages of this fuel source are several: • The sawmill slabs are of manageable size, not requiring an excessively large chipper. • The fuel will be low moisture, with an estimated range of 12% to 20%. The amount of fuel required is calculated as follows (assuming a conservative 20% moisture, wet basis): % Moisture = sample wet weight – sample oven dry weight x 100 Sample oven dry weight The heating value of black spruce is about 8,600 BTU/lb. At 20% moisture, wet basis, 1 lb of green wood chips contains 0.2 lb dry wood and 0.8 lb water. To drive off the water requires the water in the wood to rise from ambient temperature, say, 50°F to 212°F, then to turn to steam. The heat of this change to drive off moisture is supplied by the energy of burning the wood, and is not available for useful heat. Water sensible heat: (212-50)F x 1 BTU/lb/F x 0.2 lb = 32 BTU Latent heat of evaporation of water: 1000 BTU/lb x 0.2 lb = 200 BTU Total water loss in 0.2 lb water to drive it to steam = 232 BTU Heat value of wood part of fuel: 8600 BTU/Lb x 0.8 lb = 6880 BTU Net heat value of wood chips at 20% moisture = 6648 BTU/lb, wet basis. To displace 36,090 gallons of fuel oil would require: Heat of fuel oil = 36,090 gallons x 134,000 BTU/lb x 0.80 efficiency = 3.87 billion BTU Tons wood chips = 3.87 billion BTU 6648 BTU/lb x 0.75 efficiency x (2000 lb/1 ton) Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 13 Tons slab wood = 388 Tons The cost of the slab wood would be about $20/ton at the sawmill. Transportation cost of the slab wood, Tok to Haines: Shipping would be about 20 tons per trailer. At $5.00 per loaded mile, shipping costs would be: $5.00/loaded mile x 439 miles/20 tons = $110/ton Unloading slabwood and decking: = $10/ton Chipping costs for slab wood estimated at $7/ton Transportation of chips to from chipper to Borough heat plant bin: $10/ton Slabwood cost per ton: Material cost $20 /ton Shipping: Tok to Haines 110 Unloading at Haines 10 Chipping 7 Local delivery 10 Total cost of Tok chipped slabwood $157 /ton For 388 tons of chips derived from Tok sawmill slabs, the annual cost would be: $157/ton x 388 tons = $60,916 for displacing 36,090 gallons of fuel oil At $2.50/gallon, fuel oil cost for 36,090 gallons would be $90,225. Depending upon design factors, additional electricity and maintenance for running the wood heat facility would be approximately $6,000 to $10,000 annually, so the facility would be economic at $157/ton of wood chips from Tok sawmill waste. It should be recognized that the local fuel oil suppliers will see a decrease in their sales. How significant this loss of income could be will depend upon the total volume of their annual fuel sales. For this wood source to be utilized, the Tok sawmills must be operating. Sawmill shutdowns will eliminate this source of woody biomass. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 14 5.1 Environmental Factors In Using Tok Sawmill Biomass Utilizing woody biomass from the Tok sawmill source will enable the Haines Borough to use a fuel for heat that will reduce the Borough’s dependence on fossil fuels by 36,090 gallons per year. Woody biomass from the forest will reduce the Borough’s carbon footprint by utilizing a fuel source that is sustainable and renewable if proper forest management is practiced in the Upper Tanana Valley forests. Burning forest biomass produces better emissions than that of fuel oil, as the sulfur component of the fuel is almost negligible. A potential contaminant of concern is fine particulate matter, but this can be removed from the exhaust stream by use of electrostatic precipitators. Proper selection of combustion equipment and stacks will result in a clean exhaust. Placement of the heating plant and stack will have to be carefully done to avoid having exhaust gases being drawn into ventilation air intakes on buildings. Note that this product must be trucked approximate 439 miles from Tok, Alaska, so transportation costs will be about 70% of the landed cost of the product. The carbon footprint, as well as emissions of particulates and sulfur compounds will be much greater in this alternative than with utilizing local timber, because of the use of long haul trucks. 5.2 Social Factors In Using Tok Sawmill Biomass The Borough will save heating costs by purchasing the biomass fuel from the Tok sawmills. However, the funds paid for the biomass fuel will still go outside the community, so there will not be the circulation of money and impact on jobs and the local economy will be minimal. Since the plant will be located in the downtown area, aesthetics, as well as truck traffic, and other issues will have to be carefully studied to avoid problems. A positive factor in utilizing local biomass for heating Borough buildings is the effect of insulating the Borough from radical swings in the cost and availability of fuel oil. Events affecting the petroleum industry around the world can have disastrous impacts on local economies. Lowering the dependence on fossil fuels mitigates these impacts. However, for this woody biomass source, there can possible fuel surcharges on trucking, if the price of diesel fuel climbs radically. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 15 6.0 WOOD CHIPS FROM SAWMILL WASTE AT VIKING LUMBER SAWMILL IN CRAIG Another possibility of utilizing biomass would be to use chips/sawdust from the Viking Lumber sawmill, located at Craig, Alaska. The product is from the waste stream of the sawmill, mainly consisting of ¼-in square sized chips and sawdust. The product could be dried to between 25% and 40%, depending on the customer’s specifications. Biomass would be shipped on chip trailers to Haines on a barge and delivered to the Borough heat building bin. The amount of fuel required is calculated as follows (assuming a conservative 30% moisture, wet basis): % Moisture = sample wet weight – sample oven dry weight x 100 Sample oven dry weight The heating value of western hemlock or spruce is about 8,600 BTU/lb. At 30% moisture, wet basis, 1 lb of green wood chips contains 0.7 lb dry wood and 0.3 lb water. To drive off the water requires that the water in the wood to rise from ambient temperature, say, 50°F to 212°F, and then to turn to steam. The heat of this change to drive off moisture is supplied by the energy of burning the wood, and is not available for useful heat. Water sensible heat: (212-50)F x 1 BTU/lb/F x 0.3 lb = 49 BTU Latent heat of evaporation of water: 1000 BTU/lb x 0.3 lb = 300 BTU Total water loss in 0.3 lb water to drive it to steam = 349 BTU Heat value of wood part of fuel: 8600 BTU/Lb x 0.7 lb = 6020 BTU Net heat value of wood chips at 30% moisture = 5671 BTU/lb, wet basis. To displace 36,090 gallons of fuel oil would require: Heat of fuel oil = 36,090 gallons x 134,000 BTU/lb x 0.80 efficiency = 3.87 billion BTU Tons sawmill chips = 3.87 billion BTU 5671 BTU/lb x 0.75 efficiency x (2000 lb/1 ton) Tons sawmill chips = 455 Tons Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 16 The cost given by Viking Sawmill was $200/ton, FOB Haines. For 455 tons of chips derived from the Viking Sawmill at Craig, the annual cost would be: $200/ton x 455 tons = $91,000 for displacing 36,090 gallons of fuel oil At $2.50/gallon, fuel oil cost for 36,090 gallons would be $90,225. Depending upon design factors, additional electricity and maintenance for running the wood heat facility would be approximately $6,000 to $10,000 annually, so the facility would not be economic at $200/ton of wood chips from the Viking sawmill, until the price of fuel rises above $2.80/gallon, which is the break-even price. It should be recognized that the local fuel oil suppliers will see a decrease in their sales. How significant this loss of income will depend upon the total volume of their annual fuel sales. The viability of this source will depend upon the sawmill staying operational. 6.1 Environmental Factors In Using Viking Lumber Sawmill Biomass Utilizing woody biomass from the Viking sawmill source will enable the Haines Borough to use a fuel for heat that will reduce the Borough’s dependence on fossil fuels by 36,090 gallons per year. Woody biomass from the forest will reduce the Borough’s carbon footprint by utilizing a fuel source that is sustainable and renewable if proper forest management is practiced in the Yukon forests. Burning forest biomass produces better emissions than that of fuel oil, as the sulfur component of the fuel is almost negligible. A potential contaminant of concern is fine particulate matter, but this can be removed from the exhaust stream by use of electrostatic precipitators. Proper selection of combustion equipment and stacks will result in a clean exhaust. Placement of the heating plant and stack will have to be carefully done to avoid having exhaust gases being drawn into ventilation air intakes on buildings. Note that this product must be barged from Craig on Prince of Wales Island, so transportation costs will be about 50% of the landed cost of the product. The carbon footprint, as well as emissions of particulates and sulfur compounds will be much greater in this alternative than with utilizing local timber, because of the use of tugs and barges. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 17 6.2 Social Factors In Using Viking Lumber Sawmill Biomass The Borough will save heating costs by purchasing the biomass fuel from the Viking Lumber sawmill only when the price of fuel oil is above $2.80 per gallon. However, the funds paid for the biomass fuel will still go outside the community, so there will not be the circulation of money and impact on jobs and the local economy will be minimal. Since the plant will be located in the downtown area, aesthetics, as well as truck traffic, and other issues will have to be carefully studied to avoid problems. A positive factor in utilizing local biomass for heating Borough buildings is the effect of insulating the Borough from radical swings in the cost and availability of fuel oil. Events affecting the petroleum industry around the world can have disastrous impacts on local economies. Lowering the dependence on fossil fuels mitigates these impacts. However, for this woody biomass source, there can possible fuel surcharges on barge transportation, if the price of diesel fuel climbs radically. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 18 7.0 WOOD FUEL DERIVED FROM PELLETS Another possibility of utilizing biomass would be to use wood pellets. These are rapidly becoming a commodity all over North America. There are quite a few pellet plants in the Pacific Northwest and western British Columbia. In addition, a 25,000-ton-per-year plant is in the startup phase in Fairbanks, and the Viking Lumber sawmill is seriously contemplating building a pellet plant in Craig to serve the Southeast Alaska market. Wood pellets have some distinct advantages in heating: • They are very uniform and easy to mechanically feed into an appliance • Fuel moisture is very low, typically 6% to 9% • Heat value of the fuel is high per unit volume. • Pellets can be stored in silos, with easy conveying to boiler with augers. The heat value of wood pellets is generally accepted as 115 gallons fuel oil equivalent per ton of pellets. To displace 36,090 gallons of fuel oil would require: Quantity of fuel oil = 36,090 gallons of fuel oil (90% of total oil used) Tons of wood pellets = 36,090 gallons fuel oil 115 gallons fuel oil/1 ton pellets Tons of wood pellets = 314 Tons At the present time, the price of wood pellets, FOB Haines, ranges from $315 to $340/ton. For 314 tons of chips delivered to Haines, the annual cost would be: $315/ton x 314 tons = $98,910 for displacing 36,090 gallons of fuel oil $340/ton x 314 tons = $106,760 for displacing 36,090 gallons of fuel oil At $2.50/gallon, fuel oil cost for 36,090 gallons would be $90,225. Depending upon design factors, additional electricity and maintenance for running the wood heat facility would be approximately $6,000 annually, so the facility would not be economic until the cost of fuel oil rose to $2.74 per gallon at the low end of the range to $2.96 at the high end of the range. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 19 It should be recognized that the local fuel oil suppliers will see a decrease in their sales. How significant this loss of income could be will depend upon the total volume of their annual fuel sales. Closure of an individual pellet mill will not affect fuel supply, as the load will be taken up by other mills. However, in the short term, demand for pellets is rising, and a number of sawmills are closing, due to lack of demand for lumber. The sawmills produce the waste stream for low cost pellets, so the price of pellets could rise for a while if pellet mills have to use more expensive feed stock. 7.1 Environmental Factors In Using Wood Pellets Utilizing wood pellets will enable the Haines Borough to use a fuel for heat that will reduce the Borough’s dependence on fossil fuels by 36,090 gallons per year. Wood pellets will reduce the Borough’s carbon footprint by utilizing a fuel source that is sustainable and renewable if proper forest management is practiced in the Yukon forests. Burning forest biomass produces better emissions than that of fuel oil, as the sulfur component of the fuel is almost negligible. A potential contaminant of concern is fine particulate matter, but this can be removed from the exhaust stream by use of electrostatic precipitators. Proper selection of combustion equipment and stacks will result in a clean exhaust. Placement of the heating plant and stack will have to be carefully done to avoid having exhaust gases being drawn into ventilation air intakes on buildings. Note that this product must be trucked and barged to Haines from the pellet mill. Transportation costs could be up to 40% of the landed cost of the product. The carbon footprint, as well as emissions of particulates and sulfur compounds will be much greater in this alternative than with utilizing local timber, because of the use of diesel-fueled trucks and barges. 7.2 Social Factors In Using Wood Pellets The Borough will save heating costs by purchasing the biomass fuel from the Tok sawmills. However, the funds paid for the biomass fuel will still go outside the community, so there will not be the circulation of money and impact on jobs and the local economy will be minimal. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 20 Since the plant will be located in the downtown area, aesthetics, as well as truck traffic, and other issues will have to be carefully studied to avoid problems. A positive factor in utilizing wood pellets for heating Borough buildings is the effect of insulating the Borough from radical swings in the cost and availability of fuel oil. Events affecting the petroleum industry around the world can have disastrous impacts on local economies. Lowering the dependence on fossil fuels mitigates these impacts. However, for this woody biomass source, there can possible fuel surcharges on trucking and barge transportation, if the price of diesel fuel radically climbs. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 21 8.0 OTHER LOCAL SOURCES OF FUEL 8.1 Wood Fuel From Local Sawmill Waste Wood slabs from local sawmills would be a good source of biomass for chipping. However, there is not enough sawmill waste presently produced in Haines to make a significant impact. It is estimated that 35 to 50 tons of waste is annually produced, which will cover less than 7% of forecasted needs of the Borough heat building. 8.2 Wood Fuel From Collected Scrap Paper And Cardboard Presently, about 200 tons of paper scrap is collected annually in Haines. This is a possible resource for heating fuel. Without further processing, some of this paper could be shredded and scattered among the wood chips. The wood chip-fired heating plant at Darby, Montana uses a small percentage of shredded scrap paper and old textbooks in their wood chip bins. Proportions should be limited until experience is gained. It would also be worthwhile to explore the possibility of making briquettes or pellets out of the paper and cardboard. Further study in this regard is warranted, as this can be a valuable fuel resource, as well as a method to deal with solid waste that does not have to be put in a landfill or shipped out of Haines. Haines Borough Wood Source Report December 2009 Prepared by CE2 Engineers, Inc. Page 22 9.0 COMPARISON MATRIX FOR THE WOODY BIOMASS FUEL ALTERNATIVES On the next page is a matrix showing the different characteristics, costs, pros, and cons of each woody biomass fuel alternative. Environmental and social factors were left out of the matrix because they are essentially the same for all woody biomass alternatives, and need to be dealt with, regardless of which fuel is selected. Actual costs of operation and cost savings from the selected fuel(s) will be covered in detail later in the feasibility study. Haines Borough Wood Source Analysis Report December 2009 Prepared by CE2 Engineers, Inc. Page 23 WOODY BIOMASS FUEL ALTERNATIVES COMPARISON MATRIX FUEL DESCRIPTION TONS REQ’D * COST PER MILLION BTU TRANSPORT COST % PROS CONS Wood derived from Haines State Forest 703 $75/ton: $13.64/MMBTU $85/ton: $15.44/MMBTU $95/ton: $17.26/MMBTU Approx 5% Locally grown and processed product circulates money in local economy; more economic self sufficiency, while still lowering heating costs. Low transportation cost means cost is more insulated from diesel fuel price swings. Break even point for fuel is relatively low. Lowest carbon footprint. Requires more tonnage, due to higher moisture content (~50%) than other biomass fuels. More allowances have to be made for higher moisture, e.g., possibly requiring drying equipment to lower moisture before combustion. Wood derived from beetle-killed spruce in the Yukon Territory 388 $157/ton: $15.74/MMBTU Approx 25% Wood is very dry (12% to 20% moisture), so less needed. No pre-drying needed, no local equipment required for chipping and handling. Trailer unloads in the bin. Distant source and production means money leaves Haines, as with petroleum fuels, reducing benefits to local economy. More sensitive to changes in diesel fuel price swings, currency exchange rate changes. Higher carbon footprint due to diesel use in trucking. Wood derived from sawmill slab waste from Tok, Alaska sawmills 388 $157/ton: $15.74/MMBTU Approx 70% Wood is very dry (12% to 20% moisture), so less needed. No pre-drying needed. Distant source and production means money leaves Haines, as with petroleum fuels, reducing benefits to local economy. Very sensitive to changes in diesel fuel price swings, more local decking and handling req’d. Higher carbon footprint due to diesel use in trucking. Wood Chips from Viking Sawmill in Craig, Alaska 455 $200/ton: $23.51/MMBTU Approx 50% Wood is very uniform. Moisture range is controlled, so no pre-drying equipment is needed. Trailers bring chips to the heat building fuel bin. Distant source and production means money leaves Haines, as with petroleum fuels, reducing benefits to local economy. Sensitive to changes in diesel fuel price swings. Fuel is most expensive per MM BTU, requires higher price of fuel oil to justify using it. Higher carbon footprint due to diesel use in barging. Wood fuel from pellets 314 $315/ton: $25.56/MMBTU $340/ton: $27.59/MMBTU Approx 40% Fuel is easily handled, very uniform, high heat density. Simpler than wood chips, very clean burning, low ash. Heating plant is more compact due to the need for less handling equipment. Distant source and production means money leaves Haines, as with petroleum fuels. Local economy does not benefit from fuel. Sensitive to changes in diesel fuel price swings. Fuel is most expensive per MM BTU, requires higher price of fuel oil to justify using it. Higher carbon footprint due to diesel use in barging. *tons of woody biomass required to offset 36,090 gal fuel oil Haines Borough Wood Source Analysis Report December 2009 Prepared by CE2 Engineers, Inc. Page 24 10.0 CONCLUSIONS Five realistic alternatives for woody biomass sources were examined for suitability to fire the proposed central heating plant for the Haines Borough. The alternatives were examined for lowest overall cost of fuel, effect on local economy, environmental and social factors, and in a general sense, the carbon footprint. The best overall value appeared to be the locally harvested timber from the Haines State Forest. Its overall value seemed best because: • Lowest cost per million BTU, despite it requiring more tonnage due to higher moisture level. • Lowest transportation cost, due to minimal transportation needed from the forest to the heating plant fuel bin. • Best economic benefit to the community, not only because of cost savings over fuel oil, but because the money stays within the community, fueling local businesses and jobs. • Lowest cost per million BTU also means a lower break-even point vs. the cost of fuel oil. • Locally harvested timber means a lower carbon footprint, due to less use of diesel fuel for transportation. • The forest represents a reliable, sustainable source of fuel. Chips from the Yukon and Tok were also competitive, but were much more sensitive to transportation cost swings. Price swings in the cost of diesel fuel for trucks could cause a large increase in wood fuel costs. Chips from Viking Sawmill in Craig appeared too expensive because of the barging costs to get them to Haines. Wood pellets, despite being a high-quality fuel, appear too expensive as a source for Haines Borough currently. However, as the pellet market grows, prices will probably come down, and pellets would become very useful for smaller buildings that do not justify the use of a chip-fired boiler and the related fuel handling system.