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Home My WebLink AboutWrangell Forest Products, LTD on Plant Site Power Generation Final Report 1985 CARROLL, HATCH & ASSOCIATES INC. REPORT TO WRANGELI. FOREST PRODUCTS, LTD ON PLANT SITE POWER GENERATION EFITINAL REPORT SPONSERED BY STATE OF ALASKA DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT OFFICE OF ENERGY STATE CONTRACT NO. CCO8-5239 ATN 84-0546 BY CARROLL, HATCH & ASSOCIATES, INC. PORTLAND, OREGON * AUGUST 7, 1985 CARROLL, HATCH & ASSOCIATES INC THIS REPORT WAS PREPARED WITH THE SUPPORT OF THE BONNEVILLE POWER ADMINISTRATION, ASSISTANCE NO. DE-FG79-84BP14984. HOWEVER, ANY OPINIONS, FINDINGS, CONCLUSIONS, OR RECOMMENDATIONS EXPRESSED HEREIN ARE THOSE OF THE AUTHOR(S) AND DO NOT NECESSARILY REFLECT THE VIEWS OF BPA. CARROLL, HATCH & ASSOCIATES INC PLANT SEITE POWER GENERATION STUDY CONTENTS SECTION LIST OF TABLES & FIGURES 1 SUMMARY 2 UTILITY POWER SALES 3 ENVIRONMENTAL CONSIDERATIONS 4 POWER GENERATION FACTORS 5 FUEL SUPPLY 6 PLANT SIZE DETERMINATION 7 PLANT DESIGN 8 PROJECT CAPITAL COST 9 CONSTRUCTION SCHEDULE 10 OPERATING COST PROJECTIONS 11 FINANCING METHOD 12 PROFORMA FINANCIAL PROJECTIONS 13 CONCLUSIONS APPENDICES A FUEL ANALYSIS REPORT “8B BARK PRODUCTION c FUEL BALANCE D PRELIMINARY BOILER SPECIFICATIONS E HISTORY OF WRANGELL FOREST PRODUCTS PAGE ~ 1 ~~ © e@onanwetw pn | ee ee ! » 10-1 ll -1 12-1 13 - 1 AoA hm KE ' re ee » CARROLL, HATCH & ASSOCIATES INC. ITEM TABLE FIGURE 1 TABLE FIGURE 2 FIGURE 3 TABLE FIGURE 4 TABLE FIGURE 5 TABLE 1 TABLE 2 TABLE 3 FIGURE 6 TABLE 4 TABLE 5 DRAWING DRAWING DRAWING DRAWING DRAWING DRAWING DRAWING TABLE DRAWING GRAPH TABLE TABLE TABLE TABLE GRAPH GRAPH GRAPH GRAPH GRAPH GRAPH GRAPH GRAPH GRAPH GRAPH LIST OF TABLES, PLANT SITE POWER GENERATION STUDY FIGURES DRAWINGS AND GRAPHS SAWMILL DEMAND/ENERGY MODEL, SINGLE SHIFT SAWMILL DEMAND CURVE, SINGLE SHIFT SAWMILL DEMAND/ENERGY MODEL, TWO SHIFT DESCRIPTION SAWMILL DEMAND CURVE, TWO SHIFT PLANERMILL DEMAND CURVE PLANERMILL DEMAND ENERGY MODEL CHIP PLANT DEMAND CURVE CHIP PLANT DEMAND/ENERGY MODEL DEMAND CURVE, ALL FACILITIES ENERGY REQUIREMENTS, KWH STEAM REQUIREMENTS WET FUEL REQUIREMENTS TOTAL STEAM DEMAND CURVE WET FUEL REQUIREMENTS, TON FUEL BALANCE FLOW DIAGRAM ENERGY FLOW DIAGRAM - CASE NO ENERGY FLOW DIAGRAM —- CASE ENERGY FLOW DIAGRAM - CASE NO NO FUEL STORAGE FACILITY EXISTING ONE LINE DIAGRAM FUTURE ONE LINE DIAGRAM -i1 - 2 - 3 PAGE 'ieuttte WNAWRODWOARWNHRATITANHPODINHAOM AWN OPVDDIIAAAAA GUAT A Ae ee ee PROJECT CAPITAL COST 8-2, 8-3, 8- CONSTRUCTION SCHEDULE — PROJECT CASH FLOW 9- ALTERNATE “A“ OPERATING PROJECTIONS 12- ALTERNATE “B“ OPERATING PROJECTIONS 12- ALTERNATE “C“ OPERATING PROJECTIONS 12-4 ALTERNATE “D“ OPERATING PROJECTIONS 12-5 1987 ENERGY COST, EXPENSE BASIS 12-6 1987 ENERGY COST, CASH BASIS 12-6 1988 ENERGY COST, EXPENSE BASIS 12-7 1988 ENERGY COST, CASH BASIS 12-7 1990 ENERGY COST, EXPENSE BASIS 12-8 1990 ENERGY COST, CASH BASIS 12-8 1992 ENERGY COST, EXPENSE BASIS 12-9 1992 ENERGY COST, CASH BASIS 12-93 1995 ENERGY COST, EXPENSE BASIS 12-10 1995 ENERGY COST, CASH BASIS 12-10 PLANT PHOTOGRAPHS E-2, E-3 CARROLL, HATCH & ASSOCIATES INC SUMMARY The purpose of this report is to investigate the feasibility of building and operating a power generating plant fueled by wood residue. The proposed construction site is an existing sawmill operated by Wrangell Forest Products, Ltd. The reasons for this investigation are to: 1. Reduce the cost of sawmill operations by eliminating the purchase of diesel fuel for the auxiliary generators. 2. Reduce the expense involved in land fill disposal of bark residue. 3. Eliminate the use of wood chips as fuel and increase revenues by selling chips as pulp stock. 4. Increase company revenue by selling surplus power. The report examined two potential benefits to the city of Wrangell. Municipal solid waste (MSW) could be incinerated in the wood burner thus saving the city from continuing to operate their land fill. Secondly, surplus power from the mill could be provided to the city at costs considerably below the cost the city incurred for diesel generation. A pivotal element in a proposed project of this nature is the potential for selling surplus energy to the local _ serving utility. The incremental income from surplus power sales is often necessary to justify a project. Due to a unique set of circumstances in southeastern Alaska, the report concludes that the city is not in a position to purchase electrical energy from a qualified producer. Since no supplemental income is available from the sale of power, the economic analysis had to be made on the basis of choosing the least costly source of obtaining electricity for the mill. This is a complex task since the amount of electrical energy used has a substantial effect on the cost of energy. Further, the amount of energy used is contingent upon the additional facilities the company will build and operate. Investigation determined there were no insurmountable environmental problems to plant construction. Particulate emission levels from a new boiler are low, 0.05 g/scf. (Approximately one third of the present allowable limit.) By agreeing to include the city’s municipal solid waste as part of the fuel supply, the emission limits are relaxed to 0.10 g/scf. In either case the boiler flue gas system will have to be equipped with a form of clean-up equipment more thorough than a simple multi-cyclone device. The existing sawmill is the only load at the present site. Measurements of that load were taken. A demand curve and energy consumption for the mill was established using a “modeling” technique. Consideration for additional facilities was made and 1-1 CARROLL, HATCH & ASSOCIATES INC __ an overall demand curve was projected for the future complex. A generator size of 4,500 KW was established as the required size to take care of the plants present and future needs. The electrical demand and energy requirements were converted to fuel needs. Process steam requirements were translated in to fuel needs. Sources of fuel were quantified. The analysis determined there was enough fuel generated as mill residue to satisfy the fuel needs. Pulp chips were excluded from consideration as fuel since their value as pulp chips is far higher than as fuel. MSW was projected to be only 4% of the fuel supply which means there should be no problem burning this small fraction of fuel with the wood residue. Since enough fuel exists from on site sources it was not necessary to explore the use of “forest" residues. With the generator sized and the steam flow demand established, the boiler and other critical parts of the system were sized. The boiler size is nominally 60,000 lb/steam per hour producing steam at 600 psi and 750°F. Fuel requirements call for 480 tons of storage to be built itt two phases as the additional facilities are built. A serious consideration in the burner/boiler design is the moisture content (m.c.) of the fuel. The fuel is projected to be at am.c. of 55%-60% on a wet basis. This level of m.c. in the fuel is “borderline” for sustaining combustion without auxiliary drying or fuel oil supplement. Because of the salt in the fuel resulting from “log rafts" floated on ocean water, the boiler tlue gas contains sodium. The flue gas is therefore corrosive and will destroy dryers constructed from mild steel. So rather than using a stainless steel rotary dryer, it was decided to use a system that. made the most of an “air preheater” to raise combustion air temperatures. Proiect cost is forecast at just under six and one half million dollars. The cost is $ 1,521/KW. This is a relatively high index fot the size of plant. Location (Alaska) added significantly to the cost. The project should take approximaty 22 months to complete. The turbine and boiler are the Jong delivery items. While it is probable to find a used turbine, it is highly unlikely to find a used boiler with the appropriate steam producing characteristics. In the course of accomplishing the intent of the study, it was necessary to expand the scope in order to compare the economic feasibility of a new power plant to other alternative methods that the company could use to obtain electrical energy. Operating costs, financing methods and proforma projections are closely associated. The proformas compare four alternatives at. six operating levels. Ten year projections are presented in tabular form. 1-2 CARROLL, HATCH & ASSOCIATES INC§.§. ——$— nO Se oor imim methead ror Vraneasl Parest tr s ve quired eleactricar. enerady depenas on i) tne cumpe roremil they choose to build and operate at this site and %) the timi of their expansion plans. 1-3 “ CARROLL, HATCH & ASSOCIATES INC. UTILITY POWER SALES AGREEMENT The city of Wrangell, Alaska is the municipality which serves Wrangell Forest Products with electricity when the company has the need. The company does not often need power from an outside source since it has a 1,600 KW steam turbine-generator and two 1,000 KW diesel powered generators. The city is the only market for on-site generated power. The mill is located six miles away from the city and all of the area is on an island. As a normal course of operation over the last several years, the mill has been interconnected with the city system. The mill has used (purchased) power on occasion and has furnished (sold) power on occasion. When purchasing power the mill has paid $ 0.1025/KWH. When selling power to the city, the mill received substantially less money per kilowatthour than it paid. In February of 1985 the transformers, which are owned by the city and located adjacent to the mill site, were out of commission. The mill was totally disconnected from the city system. The transformers were being replaced with dual primary voltage transformers. A POTENTIAL BUYER The city of Wrangell entered into an agreement with the ALASKA POWER AUTHORITY (APA), a state body. APA has constructed four hydroelectric dams in the recent past. One of the dams is available to serve the needs of the city of Wrangell with as much as 25 Megawatt. According to Mrs. Joyce Rasler, Wrangell City Manager, the city is obligated to obtain its power needs from APA. This information was Passed on in a meeting in Mrs. Rasler’s office on February 27, 1985. The city manager stated, unequivocally, that the city would not buy power from any qualified producer without exception. Wrangell Forest Products Ltd. was given no reason to think there would be a market for selling their excess power to the city at present or at any time in the forseeable future. Recognizing that the Public Utility Regulatory Policy Act of 1979 (PURPA) mandates utilities to purchase power from qualified producers at “avoided cost", the city’s position could have presented a problem. The city’s avoided cost is quite substantial since the city manager advised that the wholesale cost to the city was in the range of $ 0.07/KWH. CARROLL, HATCH & ASSOCIATES INC. A municipality is mot recognized universally as a legal “utility”. The question as to whether or not one would be subject to PURPA is being answered in the court system. The answer is not expected for some time. Recognizing that Wrangell Forest Products Ltd. is primarily interested in establishing a source of minimum cost, reliable power to sustain the company’s activities, the company chooses not to pursue the marketing question further at this time. The only set of circumstances which would result in pursuing the question would be if the study resulted in findings that there were a large excess of fuel at the mill in the form of by-products, i.e. hog fuel and sawdust. The excess would have to exist after all of the on-site generation and process needs were met. If that were the case then the study would consider the incremental cost of building a larger power plant for the purpose of disposing of the excess residue and generating power for sale. 2-2 CARROLL, HATCH & ASSOCIATES INC There are primary and secondary environmental considerations to be made in considering a new power plunt at the Wrangel i Worest Products Ltd. plant site. The primary considerations involve air quality and water quality. The secondary considerations involve a host ot less critical items. Failure to comply with requirements of the primary items terminates further consideration of a project. There is no reason to believe that there will be any serious probiem in meeting the primary requirements. AIR QUALITY The State of Alaska, Department of Environmental Conservation, enforces the air quality standards that have been established in compliance with both federal and state law. The mill is located six miles outside the city of Wrangell, a community with approximately 2,500 residents. There are no other industrial enterprises in the Wrangell area of a similar magnitude or nature to WFP. This means that there are no “non-attainment" areas and no significant existing “background” against which the mills emissions must be modeled. Alaska Air Quality Control Regulation 18 AAC 50.050 sets the standards for wood fuel boiler emissions. There are three levels of standards which are of interest. The first is a “grandfather” clause which allows plants that preceeded the law to emit more material than newer boiler plants. WFP is operating the existing boiler system under an Air Quality Control Permit that was originally issued to the former operator of the mill. Specifically the permit allows the boiler to emit particulate at a rate of 0.15 grains per Standard Cubic Foot (g/SCF) of stack gas. A new boiler must be equipped with stack emission clean-up equipment that would insure the “highest and best particle treatment and control" available. The requirements more specifically call for a grain loading of 0.05 g/SCF. A boiler would have to be equipped with a “multiclone" primary air clean-up device with either an “electrostatic precipitator", a “baghouse" or a “high energy, wet scrubber" to meet this requirement. The technology is commonly available. The cost is sizeable! If the boiler/burner system is used to incinerate municipal solid waste (MSW) the limitations are relaxed to a grain loading level of 0.10 g/SCF. Depending upon the nature of the fuel and the boiler design, the stack clean-up equipment be) 3-1 CARROLL. HATCH & ASSOCIATES INC. is less complex and -much less costly. (This is a_ logical reason to give consideration to burning the city of Wrangell’s MSW.) Each level of particulate emission is joined with “opacity” limitations. It is generally recognized that meeting the particulate emission levels is most important, and that will generally result in also meeting the opacity requirements. This facility is not expected to contribute significantly to degradation of regional visibility. Wood contains only traces of sulphur. There are no sulphuric emissions with which to be concerned. The temperatures at which wood is combusted, usually, less than 2,200 F, are low enough so that only minimal oxides of nitrogen are formed. The laws recognize this benefit of wood fuel and therefore omit specific control levels. Speculation is that at least half the fuel supply will come from bark. The bark used at WFP will have been subjected to salt water since the sawlogs are "rafted" to the millsite in open seawater . An analysis of Spruce and Hemlock bark reveals a Chlorine content of 1.19% (dry basis) and 0.8% respectively. This salt, along with ash and some other naturally occuring salts, will be constituents of particulate emissions. There is no reason to expect adverse affects on emissions from the salts other than their contribution to the amount of particulate. The permitting process appears to be straight forward. Once the size of the burner/boiler is fixed, once a decision is made concerning the use of MSW as fuel, then an application for an “Air Quality Permit to Operate" can be filed. At that time it will be neccessary to include a detailed fuel analysis and an expected analysis of the boiler flue gas with quantities of each substance’ forecast. It will be necessary to indicate the type of emission control equipment intended. It is probable that a “source” testing procedure will be specified which is to be performed after the equipment is installed in order to confirm compliance of the system. WATER QUALITY AND LIQUID WASTE The proposed facility will have two and possibly three interfaces with water quality. The boiler will have a continuous blowdown feature. This will result in the need to dispose of a liquid with water borne solids. The present boiler has ai similar blowdown system. The blowdown is discharged into a creek that flows next to the boiler house. The creek flows into the sea 3-2 “CARROLL, HATCH & ASSOCIATES INC within 200 yards without leaving company property. Once the size of the system is fixed, the amount of blowdown can be calculated. At that time an inquiry will be made concerning discharge of the blowdown liquid. Just as in the present power plant, a condensor will be required to remove the heat of vaporization from steam that has been expanded through the turbine. The heat will be dissipated to seawater through a heat exchanger. The heat exchanger is expected to be “closed loop“ so there will be no contamination of the sea water. The only change to the cooling water will be a temperature rise. When the plant is sized, the amount of heat dissipation will be calculated. The limits for temperature increase will be adhered to by means of controlling the flow of cooling water. In the event that a wet scrubber is selected as a means of cleaning the boiler stack emissions, it will be necessary to dispose of the slurry that results from the scrubber. That consideration will be dealt with later. SOLID AND HAZARDOUS WASTE Bark has historically been landfilled on site. Now the bark will be burned. Ash from the wood burning process will be disposed of as landfill on the plant site. Particulate emissions that are captured in a multiclone collector, in a dry scrubber or in an electrostatic precipitator will have to be disposed of as well. The solid waste referred to is “benign” and can be safely disposed of on the mill property for many years to come without degradation to the land. There are no “hazardous” wastes to consider. HYDROLOGY The steam system will be “closed loop". All condensate, save that which is used in the sawmill (1,000 lb/hr during operation and 500 lbs/hr otherwise) will be returned to the boiler. Make-up water will be required for the condensate that is lost in the mill plus that steam which is lost to “blow-down" . This water requirement is almost the same as the present requirement with the addition of the difference in blow-down steam consumption. The plant water supply system is adequate to supply present needs and appears to be capable of servicing future needs as well. 3-3 NOISE The noise level from operation of a new generating plant would not be noticeable from the noise generated from the operation of the existing sawmill and the present boiler plant. There are no particular standards that apply to this location. There are no residential areas in the immediate proximity. LAND USE No change in land use is required for a new power plant. An increase in the size of the steam portion of the power plant will not affect the designation for land use. SOCIOECONOMIC Only positive social and economic benefits are expected from this potential project. Construction work will provide jobs for the duration of the project. There is an ample supply of labor in Wrangell. Much of the work is semi-skilled and unskilled, so the majority of labor work can utilize local talent. Permanent jobs at the power plant will not change appreciably from the present operation. There are two people on duty during the day shift and one each on swing and graveyard shifts. This is the same crew size that will be required for the new plant. The company will be able to have a reliable supply of power that is less costly than the combination of wood fuel and diesel generated power it now uses. With the plant expansions, additional power would have to be all diesel generated or purchased from the city for costs that are yet to be determined (but which have been suggested at a level equivalent to the cost of diesel generated power). ENVIRONMENTAL IMPACT STATEMENT Investigation to date concludes that there is no reason to believe there is a need for a full fledged “Environmental Impact Statement” for this project. Relatively straight forward permit applications are all that appear to be required. 3-4 CARROLL, HATCH & ASSOCIATES INC. POWER GENERATION FACTORS Of primary interest to Wrangell Forest Products is the establishment of a power plant that is capable of satistying the needs, both present and future, of the company. At the present time the company has a sawmill on a =site approximately six miles out of the city. Under consideration at this time is a “planermill" to be located on the same site as the sawmill. Future consideration includes establishment of a “whole log chipping plant“ also on the existing site. At some time in the not too distant future, dry kilns would be an appropriate addition to the sawmill complex. Finally, the mill may be completed with the addition of a wood “treating” plant. The present load and the addition of the aforementioned future loads will be combined to constitute the required plant size from the company point of need. Since the city of Wrangell will not be a market for power and since there are no other markets available, there is no reason to size a power plant beyond the needs of the company. MODELING The use of electricity at the sawmill is presented in model form on the following page. The electrical system has been segmented according to the original electrical drawings. A Dranetz Model 808 Demand/Analyzer meter was used to measure and record the use of electricity by the various segments. The average use rate in kilowatts (KW) is presented for successive periods covering a day. When the use rate is extended against the length of the period, the energy in killowatt-hours (KWH) is determined. The model displays KW for each period and KWH for each period. In addition the model calculates total KWH for each shift and for the day. When the KW rate is plotted against time, a “demand” curve is developed. Figure 1, page 3, shows such a curve for the sawmill while it is operating a single shift. The peak demand is slightly under 2,500 KW. The area under the curve represents energy in KWH’s which the model calculates to be 24,162.1 KWH’s per day. On a Saturday the consumption will be about 12,800 KWH and on a Sunday about 9,800 KWH. In January of 1985 there were 21 days of mill operation including the powerhouse and 10 additional days of only powerhouse operation. Powerhouse records indicate that 653,460 KWH’s were consumed at the mill during this month. (4-1) (2-7) WAANGELL FOREST PRODUCTS. LID. - WRAMGELL, ALASKA SAMMILL SCHE ULE - SINGLE SHIFT SPERATICN LOAD SEGnENT HOURS/PERIQD ----—--------— INSTALLED CAPACITY -HP- SWITCHBOARD MO. 1 Guna nee 315.0 ce 100.0 WC 45 242.0 we 05 421.0 eC te 396.0 10.1 CRG MG SET SWITCHBOARD NO. 2 SORTER NCC nee 87 nec 18 ‘AIR COMPRESSOR Na. 2 CHIPPER 2300 VOLT MACHINES 2,130.0 LOG YARD sus 1,115.0 BOILER PLaWT 330.0 TOTAL INSTALLED LOAD 1,419.0 KM/PERIOB Ks PERIOD SAMMTLL KML DAY PERIOO 1 7300-9300 2.0 2,496.7 4,993.4 PERICD 2 PERIOD $ SHIFT | PERIOO 4 PERIOD S PERIOD & 9300-9210 9110-11:00 11s00-12:0012200-2:00 2:00-2:10 1.0 335 U3 wd 106.0 0.7 17.0 Nee 100.4 3.6 302.2 105.7 42.8 161.2 204.0 204.0 1,393.4 2,496.7 T2.9 4,569.0 206.0 393.9 33.9 ELECTRICAL GEMAMD/ENERGY MODEL - COPYRIGHT 1783 BY CARROLL. HATCH & ASSOCIATES. INC. 103.7 11.2 204.0 2,496.7 4,993.4 0.2 a4 03 20.0 424 M7 MS 17.0 28.2 Nee 100.4 13.6 302.2 42.8 206.0 1,393.4 PERIOD 7 PERIOD @ PERIOD 9 PERIOD 10 2:10-4:00 4300-$:00 £:00-7:00 7:00-7:10 103.7 61.2 2,496.7 4,569.0 20 0.0 0.0 204.0 204.0 a2 206.0 204.0 Mal WRENGELL FOREST PRODUCTS, LID. - mRAMGELL, ALASKA PERIOD 11 PERIOD 12 7310-9:00 9:00-10:00 10:00-12:0012:00-12s1912310-2:00 2:90-7:00 204.0 204.0 u3.3 eT 0.0 204.0 204.0 204.0 Ro 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 204.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 204.0 204.0 32.8 13 Su 204.0 208.0 204.0 593.9 373.3 1,969.7 nnn “ON SSLVIOOSSY ® HOLVH “TION WD » CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS, LTD DEMAND CURVE — SAWMILL AS OF FEB 1985 4.0 3.84 3.0 4 z bam 254 ou 33 2.04 a3 = ‘ S> is 3 104 os 0.0 12 2 4s 6 8 10 12 2 # 6 8 109 12 — meas heB oath FIGURE 1 Using the model to calculate energy consumption: KWH 21 days x 24,162.1 KWH/day = 507,404 5 Saturdays x 12,800 KWH/day = 64,000 5 Sundays x 9,800/day = _49,000 Total for the month 620,404 The difference between actual and model is (653,460 - 620,404) 33,065 KWH or 5.1%. This is about as close as the accuracy of measurements and assumptions allows. The model should be accurate to within 8% of actual. There is an important distinction between KW and KWH’s. The maximum demand is in KW and that demand determines the _ size of the generating plant. A power plant must be capable of delivering power to meet the highest need (demand) of the plant(s). The amount of KWH’s required will dictate the amount of fuel needed to be converted into electrical energy. PROJECTIONS Economics suggest that operation of the sawmill should take place on a two shift basis. The model has been modified, page 4, to show operation on two shifts. A demand curve has also been developed as Figure 2, page 5. Note that the peak demand is the same as ina single shift operation but the energy consumption has increased to 44,937.4 KWH/day. The same size generator will serve but it must produce electricity for longer periods. (4-3) (9-7) WRANGELL FOREST PRODUCTS, LID. - WRAMGELL, ALASKA WAAMGELL FOREST PRODUCTS, LTO. - WRANGELL, ALASKA SAWAILL SCHE ULE tu LOAB SEGRENT PERIOD | «= PERIOD 2 PERIOD $ PERIOD 4 §=PERION 3 PERION & PERIOD 11 PERIOD 12 PERIOD 13 PERIOD 14 PERIOD 15 PERIOD 16 7100-9200 9300-9210 9210-11:00 11:00-12:0012:00-2:00 2:00-2:10 2310-4100 4100: 7:10-9:00 9:00-10:00 1000-12; 0012300-12: 1012s 10-2:00 2:00-7:00 WOURS/PERIOD -—-~- — 2.0 0.2 Le 1.0 2.0 0.2 eo a 1.0 20 0.2 Le 3.0 INSTALLED CAPACITY -He ‘SMITCHBOARE KO. 1 QUAD NCC 335.0 3.5 4 3.3 a7 23.3 4 B35 47 3.5 14 3.3 33.5 4 33 47 nee M4 us as 2.3 4s us a3 a3 4s as as 2.3 au.3 as us 4s mee 83 Mt 20.0 1 10.0 30.1 20.0 wt 10.0 wt 20.0 50.1 50.8 20.0 Sot 10.0 Wee 85 106.0 ae 106.0 1.2 106.0 42.4 104.0 2.2 106.0 424 106.0 106.0 424 106.0 U2 me 5 wT "3 9 9.3 7 W3 19.9 95 7 9.3 9.3 7 3 Pe] mO.1 CRG MG SET 77 15 0.7 ILS a7 US 3.7 1S 07 MS 0.7 37.7 mS a7 M5 SUITCHBOARO MO. 2 SORTER NEC 230.0 42.5 17.0 23 as 42.3 42.5 as 42.3 11.0 42.5 Qs 17.0 42.5 as mec 07 330.0 710.3 2.2 10.3 iat 10.5 0.3 Mt 105 24.2 10.3 10.5 28.2 10.500 1 mec oe 410.0 170.9 Nb 170.9 se 178.9 176.9 8 (178.9 Nee 178.9 178.9 Neb 178.9 35.8 AIR CONPRESSOR we. 100.4 100.4 100.4 0.3 100.4 100.4 0.3 100.4 100.4 100.4 00.3 100.4 100.4 100.4 0.5 8. 2 CHIPPER 330.0 3.6 3.6 13.6 13.4 13.6 Ti.6 St 73.6 13.6 15.6 15.1 13.6 13.6 3.6 1S 7300 VOLT MACHINES 2,150.0 105.7 02.2 105.7 ML 705.7 02.2 703.7 Mid 705.7 302.2 105.7 Md 103.7 302.2 7103.7 os vee ‘SUB 1,115.0 1.2 42.8 Tot.2 152.2 Tol.2 42.8 Tol.2 152.2 Thh.2 462.8 161.2 132.2 7b1.2 462.8 Tel.2 152.2 BOILER PLANT 350.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 204.0 TOTAL INSTALLED LOS KM/PERIO® 2,496.7 1,593.6 2,496.7 122.0 2,497 1,595.4 2,496.7 722.8 2,496.7 1,393.4 2,496.7 72.8 2,496.7 1,393.4 2,696.7 772.8 KWH SHIFT 4,993.4 22.9 4,569.0 72.8 4,993.4 72.9 4,569.0 12.0 4,993.4 Tb.9 4,569.0 72.8 4,993.4 222.9 4,569.0 3,615.9 SAMAILL KM DAY 498 ELECTRICAL DEMANO/EWERGY MODEL - COPYRIGHT 1985 BY CARROLL, HATCM & ASSOCIATES, Inc. mn “NI SSLVIOOSSY PHOLVH “TIONYVO * * CARROLL, HATCH & ASSOCIATES FNC. nn ————————_—_——— WRANGELL FOREST PRODUCTS, LTD DEMAND CURVE — SAWMILL WITH 2ND SHIFT 4.0 3.8 3.0 x = le 25 ij 38 20 ; ws 92 a is é 1.0 0.8 0.0 12 2 #4 6 8 10 12 2 #4 6 8 10 12 ie, F DAY —_ LED DATA FIGURE 2 The future planermill has also been modeled, page 6, with a resulting demand curve, Figure 3, below. WRANGELL FOREST PRODUCTS, LTD 1.0 DEMAND CURVE — PLANERMILL SINGLE SHIFT 0.9 0.8 0.7 0.6 housands) 0.4 POWER DEMAND — KW Os O.2 0.1 0.0 12 2 4 6 8 19 12 2 4 6 8 10 12 TIME OF DAY FIGURE 3 The planermill will add 432 KW of power to the existing demand. There is a commensurate increase in energy consumption at 5,285 KWH’s per day on a single shift basis. (4-5) WRANGELL FOREST PRODUCTS, LID. - WRAMGELL, ALASKA WRANGELL FOREST FROQUCTS, LID. - WRANGELL. ALASKA PLANER MILL CPERATING SCHEDULE ‘SHIFT 1 La SHIFT 2 LULL LOAD SEGMENT PERIOD | «= PERIOD 2 PERIOD 3 PERIOO 4 «PERIOD S PERIOD 6 © PERIOD? §=—PERIOB @ PERIOD PERIOD 11 PERIOD 12 PERIOD 13 PERIOD 14 PERIOD 15 PERICD 16 G:00-10:00 10300-10310 103 10-12:6012300-1:00 1:00-3:00 3:00-3:10 3:10-5:60 5:00-6:00 6300-1 0:00-0:10 8210-10300 10:00-11:0011:00-1:00 1300-1210 1:40-3:00 5:00-8:00 HOURS/ PERIOD 2.0 0.2 Le 1.0 2.0 0.2 Le eo 10 02 1a 1.0 2.0 0.2 1.8 3.0 PLANER oS 37 O53 0.0 30.7 oS 0.0 0.0 0.0 0.0 0.0 0.0 SHAVINGS BLOWER 339 33.9 3.9 3.9 0.0 0 0.0 oo 0.0 TRINNER DRIVE 10.0 0.0 10.0 10.0 0.0 0.0 0.0 0.0 AIR COMPRESSOR 106.2 106.2 106.2 106.2 19.6 Wb 9.6 9.6 8 CHIPPER 186 tb 18.6 16 oe 0.0 0.0 0.0 0.0 CHIP SLOWER 106.2 106.2 106.2 106.2 0.0 0.0 0.0 0.0 0.0 BAL ACE Th. ue 13.6 TB. wee we 36.8 M8 M8 =~ oo 1 ON ~ TOTAL INSTALLED LOAD 4,074.5 . KM/SMIFT Oe we ase 1b. 431.9 me awe Wbed 1b Mbt Mb. iy 116.4 116.4 Med 1b KWH/PERIOS 063.8 7 790.4 116.4 063.8 ‘36.7 1.4 (ted 252.9 19.8 as. 116.4 232.9 19.8 US1 582.2 PLAMERMILL Kint/DAY 3,204.9 ELECTRICAL DENANB/ENERGY MODEL - COPYRIGHT 1963 BY CARROLL, HATCH & ASSOCIATES, IMC. nn “ON SSLVIOOSSY ® HOLVH TIOXHVO CARROLL, HATCH & ASSOCIATES INC. In a similar manner the whole log chip plant has been modeled, page 8. WRANGELL FOREST PRODUCTS, LTD a DEMAND CURVE — WHOLE LOG CHIP PLANT 0.9 4 0.8 4 07 4 0.6 or) housands) POWER DEMAND — KW 12 2 4 6 8 10 12 2 4 6 8 10 12 TIME OF DAY FIGURE 4 Figure 4 shows that the chip plant adds slightly less than 635 KW oof demand. Energy consumption is 6,254 KWH/day on a single shift. The planer mill is projected to start its shift one hour after the sawmill. The chip plant is to start one hour before the sawmill. The purpose of staggered starts is to diversify the demand. Dry kilns operate on a continuous basis. An assumption is made that two kilns will be needed. Each kiln to draw 50 KW of power for a constant increase in demand of 100 KW. Energy consumed by the kilns will be 2,400 KWH/ day . The treating plant is forecast to require 150 KW on a steady basis. This will add 3,600 KWH/day. Finally, all of the demands from the existing and future plants, including two dry kilns, have been combined and are presented as Figure 5, page 9. This is a curve for a 24 hour period. The curve peaks at a maximum of slightly over 3800 KW. The energy consumed by processes developing this demand curve is the.sum of the individual units or 64,900 KWH’s per day. Double shifting the planermill or the log chipping plant would increase the energy consumption but will not effect the generator size. (4-7) 8-17 WAANGELL FOREST PRODUCTS, LTD. - WRANGELL, ALASKA : WRANGELL FOREST PRODUCTS, LTD. - MRANGELL, ALASKA WHOLE LOG CHIPPING FACILITY SCHEDULE SHIFT A uu SHIFT 2 Wau 4 a oaeccenennnmewennenewww ene. ann eeec enews emewennn meme mnnnmnnnnvowns enn nme| formmmnnnnnn LOAD SEGRENT PERIOD | PERIOD 2 PERIOD 3 PERIOD 4 PERIOD S PERIOD & PERIOD 7 —PERION © PERIOD 9 PERIOD 10 PERIOD 11 PERIOD 12 PERION 13 PERIOD 14 PERIOD 15 PERIOD 16 6200-8100 8100-8118 8110-10100 10:00-1110011100-1:00 1100-1110 1110-3108 3:00-4:00 4100-6:00 6:00-6:10 6210-8:00 8: 00 9200-11500 11200-1121011s10-1:00 1100-6: 00 2.0 0.2 Le 16 28 6.2 Le 1e 2.0 Le 1.0 2.0 02 ie 3.0 WOURS/PERIO® ‘DARKER, TOTAL 61 67. 67.1 on 61d 0.0 BARK HOG 49 ay 49 9 wd 6.0 Qo > 2 D a ec r =x > 4 fe) x Lod g oO Q > mo m o Zz Go CHIPPER 2.3 m23 0 25 m5 2s 2S . . W.P. CHIP BLOWER 2.8 m8 m8 2.8 a8 m9 ome TOTAL INSTALLED LOAR 4,94! “ - ‘AIR COMPRESSOR ms ws 4.3 m3 8 u3 LIGHTING 20.0 20.0 20.8 0.6 20.0 ae BALANCE 3.9 3.9 3.9 2.9 33.9 35.9 3.9 20. KW/SHIFT ouu7 634.7 ul 12.4 647 647 7 122.4 ob bb 6b bee bb. bbb ob bb KWH/SHIFT 1,269.4 107.9 1,161.5 122.4 1,269.4 107.9 1,168.5 1272.40 1331 M3 121.8 6 133.1 3 121.8 332.8 WHOLE LOG CHIPPING KuH/DAY 6,254.2 ELECTRICAL DERAMD/EMERSY MODEL - COPYRIGHT 1985 6 CARROLL, WATCH & ASSOCIATES, INC. « CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS, LTD DEMAND CURVE — ALL FACILITIES 4.0 3.5 3.0 2.5 2.0 POWER DEMAND — Kw (Thousands) 0.0 12 2 + 6 8 10 12 2 4 6 8 10 12 TIME OF DAY FIGURE 5 CONCLUSION A generating capacity of 3813 KW appears to be potentially required. Contained in the existing sawmill load is the boiler house load of 204 KW. A new boiler system will have a larger load. The size of that load is dependent upon the type of burner/boiler system selected. It would be reasonable to expect as much as 200 KW additional demand. Under full operating conditions a 4,000 KW generator will be fully loaded. If the projections in this study fall short of actual or if equipment is added beyond the foreseeable load, a 4,000 KW unit will be marginal at best. It is suggested then, that a unit with 4,500 KW or 5,000 KW output capacity would more "comfortably" meet the needs of the complex. This size machine provides the Capacity to meet present and future needs with significant spare capacity. (4-9) CARROLL, HATCH & ASSOCIATES INC. CURL The size of the fuel supply r is determined from the amoun mill will consume in the spec Projection made in this Generation Factors” contains t ITEM/MODE SAWMILL, ONE SHIFT SAWMILL, TWO SHIFT PLANERMILL, ONE SHIFT WHOLE LOG CHIP, ONE SHI DRY KILNS, ONE DAY TREATING PLANT, ONE DAY TABI A fuel supply will be determin TURBINE in order. Present records in the pow turbine/generator has a “ste With the boiler at capacity, output is: turbine is a multistage unit. vacuum of 29 in Hg. Steam heating. Condensate from that 1,000 1b of steam per hour operation and 500 1b per hour Efficiency of the present syst Enthalpy of Steam enter Enthalpy of Steam leavi Available Energy (to th 5-1 In order to arrive at an amount of fuel required, explanation of the present and future: generating systems is 30,000 lb/hr + 18.75 1lb/hr/KW The boiler supplies steam at 250 psig, UPPLY equired to meet the mill needs t of energy, KWH’s, that the ified mode of operation. The report’s section on “Power he following: ENERGY REQUIREMENT KWH 24,162 44,937 5,285 FT 6,254 2,400 3,600 LE 1 ed for each case. some er house indicate that the am rate” of 18.75 lb/hr/KW. 30,000 lb/hr, the generator = 1,600 KW saturated. The The steam is condensed to a Most condensate is returned at 85 °F. is used in the sawmill for log turners and space steam is lost. It is assumed is used at the mill during while the mill is idle. em is determined: BTU/1b ing Turbine 1,200 ng Turbine __880 e turbine) 320 CARROLL, HATCH & ASSOCIATES INC. (3,413 BTU/KWH) T-G eff. = Steam Rate x Available Mnergy (3,413 BTU/KWH)/(18.75 1b/KWH) (320 BTU/1b) 56.9% NEW TURBINE A new boiler would be selected to produce steam at 600 psig and 750°F. Steam expanded in a new turbine would be condensed at 3 in Hg absolute. The condensate system would return the condensate at a temperature of about 125°F. Manufacturers of new T-G equipment suggest that a realistic efficiency under these circumstances would be 67%. BTU/1b Enthalpy of Steam entering 1,377 Enthalpy of Steam leaving 915 Available Energy 462 (3,413 BTU/KWH) Steam Rate = Efficiency x Available Energy = (3,413 BTU/KWH)/(.67)(462 BTU/1b) = 11.0 lb/hr/KW or 11.0 1b/KWH Steam requirements are calculated by multiplying the energy requirements, in Table 1, by the respective steam rates. Item Present System New System (1b of steam) @ 250 P, Sat @ 600 P, 750°F Sawmill, 1 shift 453,038 265,782 Sawmill, 2 shifts 842,269 494, 307 Planermill, 1 shift 58,135 Chip plant, 1 shift 68,794 Dry kilns, per day 26,400 Treating Plant, per day 39,600 TABLE 2 (5-2) CARROLL, HATCH & ASSOCIATES INC ENERGY INPUT TO STEAM PRESENT SYSTEM In the present system feed water enters the boiler at about 85°F. Energy pick-up in the boiler is: BTU/1b Enthalpy of Steam Leaving Boiler 1,200 Enthalpy of Water entering Boiler 53 Energy pick-up in boiler 1,147 Power house records show that 1 lb of wet wood fuel develops 1.77 lb of steam. This means that of the available energy in the fuel, (1.77 lb x 1,147 BTU/lb) 2,030 BTU end up in stean. Presently the boiler is being fired with white wood, chips and sawdust from Hemlock and Spruce logs. The mix is half and half, sawdust and chips. The combination results in a fuel with a HHV of 8,390 BTU/1b. (See Appendix "A", Fuel Analysis. ) The fuel contains a considerable amount of moisture. The sawdust analyzed in the fuel tests contained 71.1% moisture. The chips are at a moisture content of 55%. The sawdust contains a higher moisture content because it absorbs water at several machine centers where water is sprayed on the saws as a lubricant. (This practice is being changed and in the future the sawdust will have the same moisture content as the rest of the white wood, namely 55%.) Sawdust is reported to historically contain 65X moisture. So the usual mix of chips and sawdust has an average moisture content of 60%. Net heating value of the fuel is determined: Higher Heating Value (HHV) = 8,390 BTU/lb Lower Heating Value (LHV) = HHV - 576 BTU/1b (loss to water as a product of combustion) LHV = 7,814 BTU/1b Net Heating Value (NHV) = LHV(1-mc) = 7,814(1-0.6) NET = 3,126 BTU/1b At 60% moisture content the net available heat from a lb of fuel is 3,126 BTU. For one pound of fuel dumped into the boiler furnace, 3,126 BTU is released and 2,030 BTU ends up in steam. The existing boiler efficiency is (2,030 BTU + 3,126 BTU) 65%. 5-3 CARROLL, HATCH & ASSOCIATES INC New Installation “ A new wood fired boiler could be expected to maintain 65% efficiency. Efficiency is dependent upon, among other things, amount of excess air and fuel moisture content. For every 3,126 BTU released in the furnace, 2,157 BTU would be imparted to steam. Energy pick-up in the boiler would be: BTU/LB Enthalpy of Steam Leaving Boiler 1,377 Enthalpy of Water entering boiler 93 Energy pick-up in boiler 1,284 One pound of fuel burnt in the new boiler furnace would produce: 2,032 BTU/1b (fuel) < 1,284 BTU/lb (steam) = 1.58 lb (steam) < Fuel requirements The Item/Mode table is repeated below with the addition of fuel requirements. Fuel requirements are calculated by dividing the steam requirements (Table 2) by the ratio of steam developed per pound of fuel, (1.77 for the present system and 1.58 for a new system. ) ITEM/MODE WET FUEL REQUIREMENTS PRESENT SYSTEM NEW SYSTEM (lbs) (lbs) SAWMILL, 1 SHIFT 255,954 168,216 SAWMILL, 2 SHIFTS 475,858 313,153 PLANERMILL, 1 SHIFT 36,794 CHIP PLANT, 1 SHIFT 43,541 DRY KILN, 1 DAY 16,709 . TREATING PLANT, 1 DAY 25,003 TABLE 3 Using the assumptions that the sawmill is operated 2. shifts a day, the planermill and the chip plant one shift per day, the dry kilns and the treating plant in service continuously, a daily fuel requirement would be 435,260 1b (218 wet ton) using the new system (burner/boiler and turbine). A unit of wet fuel at 55% moisture content weighs 2.2 ton. The. amount of fuel required on a wet (green) basis is 99 units via a new systen. “ 5-4 CARROLL. HATCH & ASSOCIATES INC. Discussion The present system is limited in ouput by both the boiler size and the T-G size. The prior analysis was performed for the purpose of demonstrating the most significant differences that exist between the present equipment and new modern and efficient equipment. Rate of output A 5,000 KW Generator has been suggested as an appropriate size unit. For power needs alone at peak demand, and at 11 lb (steam)/KWH, the boiler would have to put out, (4,000 KW x 11 lb (steam)/KWH) 44,000 1b (steam)/hr @ 600 PSIG and 750 oF. Dry Kiln Load When dry kilns are installed they will demand approximately 12,000 lb (steam)/hr each at start-up. This demand will continue until the kilns and loads are up to temperature, The heat-up period is forecast to be 8 hours. After the kiln is up to temperature steam demand drops off to an average of upPe 3,000 lb/hr for each kiln. is thee, eh Dry kiln schedules for Hemlock and Spruce require Wdays_ to sof ch a accomplish drying. Start-up can be scheduled to occur not Aare more frequently than once every other day for each kiln. At the most, the boiler would see start-up occurring once daily. Judicious scheduling will see start-up taking place at non- peak times since any steam required by the kilns may be robbed from the T-G and therefore inhibit the production of power . The kilns will use steam at 120 PISG, saturated. There are two methods for developing steam at these conditions. One method would be to obtain an “extraction” turbine with a port where steam can be “tapped” at 120 PSIG. The second method is to use a “desuperheater”. An extraction turbine is more expensive than a straight condensing turbine and more complicated to control. Kilns are a contingent possibility. A desuperheater can be installed in the future after a definite decision is made to build kilns. The additional cost of an extraction machine would have to be borne at the outset. Since there is no foreseeable market for selling power, there is mo reason to generate any more power than can be used at the plant. The use of a desuperheater will produce a system efficiency virtually equal to the extraction system efficiency. There is little reason to go the more expensive route. (5-5) CARROLL, HATCH & ASSOCIATES INC. With these thoughts in mind, it seems appropriate to utilize the desuperheater approach rather than an extraction turbine. To obtain 12,000 lb (steam)/hr for the kilns, a desuperheater would have to be designed to inject the proper amount of water into the appropriate amount of high pressure steam to develop the required amount of low pressure steam. Thus: 1,192 BTU/1b 1,377 BTU/1b 23 BTU/1b Enthalpy, steam at 120 PSIG, Saturated Enthalpy, steam at 600 PSIG, 750 F Enthalpy, water at 55 F Let “X“ equal the amount of high pressure steam that is to be mixed with “(1-X)“ amount of water to produce 1 1b of low pressure steam. 1,192 Btu/lb = [1,377% + 23(1-X)] Btu/lb 1,192 BTU/1b = [1,377X + 23 - 23X%] BTU/1b 1,169 Btu/lb = [1,354X] BTU/1b X = 0.86 lb (steam) Therefore (0.86 x 12,000 lb/hr) 10,320 lb/hr of high pressure steam would be required from the boiler while a kiln goes through start-up. The boiler’ shall have Capacity to produce peak power (44,000 lb/hr) plus provide steam for one kiln start-up (10,320 lb/hr) or 54,320 lb/hr. At other times the kilns would each use 3,000 1b (steam)/hr. The high pressure requirement would be (0.86 x 6,000 lb/hr) 5,160 lb/hr. The boiler would then have an output of 44,000 lb/hr to the T-G plus the kiln load for a total of 49,160 lb/hr. The treating plant is assumed to have a need of 1,000 lb/hr. According to the composite electrical demand curve Figure 5, Page 4-9, the combined electrical demand is less than 3,000 KW from 4:00 pm to 7:00 am. Kilns charges should be started in the late afternoon as a regular practice. With this single restriction, there should be no problem with the kilns robbing the T-G of steam to the extent that the result would i 7 diminished ability to produce power at the required evels. A curve has been developed from the above data to describe the profile of steam production (and fuel usage) over a typical 24 hour period. That curve appears as Figure 6, on page 5-7. 5-6 CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS, LTD TOTAL STEAM DEMAND — POWER & PROCESS $0.0 40.0 ue ? a 4 (Thousands) 8 ° 1 10.0 4 STEAM DEMAND — LBS/HR @ 600 PSIG, 750 F 12 2 4+ 6 8 #10 12 2 6 8 10 12 TIME OF DAY FIGURE 6 FUEL REQUIREMENTS Table 3 listed the fuel required for various loads. Those requirements are restated, with quantities converted to tons. ITEM MODE WET FUEL REQUIRED WET TON/DAY FOR POWER GENERATION: SAWMILL 1 SHIFT/DAY 79 SAWMILL 2 SHIFT/DAY 147 PLANERMILL 1 SHIFT/DAY 17 CHIP PLANT 1 SHIFT/DAY 20 DRY KILNS DAILY 8 TREATING PLT DAILY 12 FOR PROCESS STEAM SAWMILL 2 SHIFT/DAY 4 DRY KILNS DAILY 43 TREATING PLT DAILY 12 TABLE 4 It should be noted that the fuel supply is to be made of bark as well as white wood. While the bark has a similar moisture content, Hemlock bark has a higher heat content. But, for purposes of simplicity, all fuel will be considered to have the same energy value. Any error will be on. the “conservative” side. (5-7) CARROLL, HATCH & ASSOCIATES INC. FUEL SUPPLY General The wood products industry enjoys the benefit of being in a position to provide most of its energy needs through the use of wood residues resulting from the manufacturing processes. While this is almost universally true with respect to thermal energy needs, it is also often true for electrical needs as well. The size of the steam system and turbine/generator (T-G) establish the maximum capability of the plant. The plant can be operated at virtually any level below the maximum level to meet the needs of the company at any particular time. With the present mill load the new generating system would operate at approximately half capacity. Fuel requirements would be less than they are now because of the increase in efficiency of the T-G. When the mill goes to two shifts there is a greater need for energy (KWH’s) which translates into a need for more fuel. The additional fuel may be provided from residue resulting from milling increased production. When the planermill is added, it too will require more energy. The by-product of the planermill is “planer shavings”. This is white wood that is machined off the surface of the lumber in the finishing process. Planer shavings, though green, are usually 15-20% dryer than the parent wood by the time they reach the burner. Natural drying occurs easily because of the large surface to volume ratio of shavings. The whole log chipping operation adds KW to the site load. Those logs will be “debarked“ prior to chipping. In the chipping and screening “fines" (pieces of wood too small to qualify for pulp chips) develop. The bark and fines add to the fuel supply. Dry kilns don’t produce by-product. The use of kilns drives moisture out of lumber. Any residue that results from manufacturing dried lumber will have a much higher net heating value (NHV) than wet fuel. A wood treating plant may produce a small amount of wood residue as a result of: cutting notches in poles, drilling holes and so forth. The treating plant will probably not provide fuel adequate to meet its energy demand. There are two additional sources of fuel which will be given some consideration. Residues from logging operations are sizeable. The city of Wrangell’s MSW amounts to 8,500 cubic yards per year. Logging residue, because of transportation, is more expensive than various forms of mill (5-8) CARROLL, HATCH & ASSOCIATES INC residue so consideration of this source will be made only if other sources are inadequate. MSW brings with it sorting and burning problems. This source will receive consideration only if mill residues are inadequate or if the relaxed standards or particulate emissions because of burning MSW are so significant that it is judged worthwhile. Table 4 in this section stated the fuel needs of each of the present and future facilities. The balance of this section of the report deals with assessing the “availability” of fuel from the present and future sources. SAWMILL Sawdust Present needs are being met with sawdust and chips in equal amounts. The current single shift need at the sawmill is 255,954 lb/day. Sawdust will continue to be available, but chips are more valuable as “pulp stock" so chips will not be used as fuel if it can be helped. That leaves 127,977 lb/day of sawdust available, 64 Ton/shift. Per earlier discussions, the sawdust will be available at 55% mc. When the sawmill goes to two shifts per day, the amount of sawdust will increase proportionally. At a two shift per day mode, there will be 255,954 lb/day sawdust fuel. Bark Hemlock and Spruce bark is now disposed of in land fill. This material will be used as boiler fuel. The mill has kept records on the generation of bark residue over a six month period. (See Appendix “B".) Those records show that 279 pounds of bark have been realized for every one thousand board feet of lumber produced. The mill has been working down inventories of logs that have been in existence for a number of months, often, over two years. The longer saw logs are in inventory, the more bark that is lost prior to manufacture. Fresh logs, which constitute the present mill log inventory, will retain approximately 25% more bark than past experience indicates. Bark will then be accumulated at the rate of 350 1b/MFB. The mill is being modified to increase efficiency, produce a more varied product line and sustain a production level of 250,000 FB per shift. The amount of bark to be used as fuel will be: 350 1b/MFB x 250 MFB/Shift = 87,500 lb/shift @ 2,000 1b/Ton, 87,500 lb/shift = 44 Ton/shift 5-9 CARROLL, HATCH & ASSOCIATES INC A second shift can be expected to result in an equal amount of bark residue. Planer Shavings Expansion plans call for the addition of a planermill with a production of 4,100 MFB/Month. The planer will remove 1/8" from all four surfaces of the board. On average this will result in about 8% of the solid wood ending-up in shavings. This means that a volume equal to 328 MFB/month will be shavings. That volume in green wood amounts to 1,312,000 lb/month, (at 4 1b/FB). If the planer mill operates 21 shifts per month, the daily production of shavings is 62,476 lb/shift. This amount converts to 31 Ton/shift. Planer shavings will be drier than the balance of the fuel. When making a comparison of need vs_ supply, this will be taken into account. Chip Plant Residues Over a six month period the company has kept records of the logs that have been sold to “pulping” operations. These records form the basis for forecasting chip plant operations. The future chip plant is expected to process 24 million board feet of small logs. Assume small logs (average 11" diameter) weigh 12,000 1b per MFB, log scale. Ten percent of the volume will be bark. Additionally, there will be another 5% resulting from: falldown, sawdust and collection of fines at the chip screen. Therefore 15% of every 1,000 FB, or 1,800 1b/MFB will be available for boiler fuel. At 24 million BF per year, the fuel will amount to 43,200,000 lb/yr. At 250 shifts per year, the fuel amounts to 172,800 lb/shift or 86 Ton/shift. Dry Kiln Residues Dry kilns do not produce residues! There is, however, a significant influence on one of the fuel elements because of the dry kilns. After the kilns are installed, the planer mill will produce “dry"“ planer shavings. The planer shavings referred to in prior discussion will now be at a moisture content of average 10% (wet basis). The net heating value of those shavings will be 7,033 BTU/lb instead of the much lower value used for green fuel. The net heating value of dry planer shavings will be 2.25 times greater than the heating value of wet shavings. However, the weight will (5-10) CARROLL, HATCH & ASSOCIATES INC. be commensurately less and so the net heat available will be the same. FUEL BALANCE The significant elements of previous discussions concerning fuel needs and fuel resources are summarized in the following table. ITEM MODE WET FUEL WET FUEL REQUIRED SUPPLIED TON/DAY TYPE TON/DAY SAWMILL 1 SHIFT/DAY POWER GENERATION 79 SWDST 64 PROCESS NEEDS _2 BARK _44 TOTALS 81 108 SAWMILL 2 SHIFT/DAY POWER GENERATION 147 SWDST 128 PROCESS NEEDS _4 BARK _88 TOTALS 151 216 PLANERMILL 1 SHIFT/DAY POWER GENERATION 17 SHVG’S 31 CHIP PLANT 1 SHIFT/DAY POWER GENERATION 20 BARK & FINES 86 DRY KILNS DAILY POWER GENERATION 8 PROCESS NEEDS _43 _— TOTALS 51 0 TREATING PLANT DAILY POWER GENERATION 12 PROCESS NEEDS 12 a TOTALS 24 0 TABLE 5 (5-11) CARROLL, HATCH & ASSOCIATES INC Examination of Table 5 develops some important. conclusions: 1. Operation of the sawmill, as it is, produces enough fuel for all needs with a 27 Ton single shift surplus and a 65 Ton two shift surplus. 2. The planer mill produces fuel enough to meet its own needs plus 14 Ton per shift surplus. 3. The chip plant produces enough fuel to meet its own needs plus a 66 Ton/shift surplus. 4. The dry kilns result in the production of “dry” planer shavings. Instead of 31 Ton/shift (wet) the planer will now produce 14 Ton/shift (dry). Total heat available from the planer shavings will not change. The kilns will use 51 Ton/day from the surplus. 5. The treating plant will use 24 Ton/day from the surplus. There is an adequate amount of wood residue fuel for virtually every scenario possible. One exception would be establishing dry kilns and a treating plant without a Planermill or a chip plant. The deficit of fuel would be 48 Ton/day on aé_e single sawmill shift basis and only 11 Ton/day if the sawmill operates 2 shifts. This scenario is unlikely because without the planermill, the dry kilns would not be operated as frequently as was forecast. A more likely problem is finding a method of disposing of the surplus fuel. There is no reason to consider the use of logging or forest residue. Some additional investigation into the use of the city of Wrangell’s MSW is warranted for the purpose of operating under more lenient emission standards. (5-12) CARROLL, HATCH & ASSOCIATES INC PLANT SIZE DE'TERMLNAT LON Most of the factors involved in determining the size of the plant have been discussed. A quick review of those considerations shows that: 1. A boiler system that develops approximately 50,000 Ibs of steam per hour will satisfy both process’ and power requirements for the mill under the most ambitious expansion plans. 2. There is no point in oversizing the power generating system for the purpose of selling cogenerated power because the only market, the city of Wrangell, will mot purchase power. 3. The mill produces adequate wood residue fuel for just about any level of operation and combination of facilities. 4. The use of MSW as fuel for the purpose of operating under more relaxed air quality control limitations appears to be a wise plan and the sizing will take this into account. A general concept of the power plant can be adopted at this point. A mass flow diagram, Figure 7, Page 6-2, describes and depicts the principal components of the system. Sizing the system requires that overall performance be examined under operating conditions. Three seta of conditions are described in Figures 8, 9 & 10 on Pages 6-3, 6- 4, and 6-5. GENERATOR SIZE A 5,000 KVA generator (4,250 KW, @ 0.85 power factor) would provide power for all of the foreseeable needs for Wrangell Forest Products at the present plant site. Machines of this nature typically have an efficiency of 97% or greater. BOILER SIZE Figure 6-1 presents Case 1, the system when it is required to produce power for: the sawmill, the planer mill and the chip Plant. The boiler must also produce a small amount of process steam for the sawmill and steam for “blowdown”. Under these circumstances the boiler is required to produce 42,193 LB steam per hour. Figure 6-2 presents Case 2, the system with maximum power output, 4,250 KW, while thé same facilites are being operated as in Case 1. Now the boiler is required to put out 49,984 LB steam per hour. — ee 6-1 c-9 KEY TO ABBREVIATIONS CITY MSW REFUSE Ss SM PM cP SB MC AC AH 10 FD MG - MUNICIPAL SOLID WASTE - SHREDDER - SAWMILL - PLANERMILL - CHIP PLANT - SURGE BIN - MULTICLONES - ASH COLLECTOR - AIR HEATER - INDUCED ORAFT FAN - FORCED DRAFT FAN - MANUAL GATE 10 FUEL STORAGE MG oo FD +=} COMBUSTION AIR STACK WRANGELL FOREST PRODUCTS LTO WRANGELL, ALASKA 5 MW POWER PLANT al FLOW DIAGRAM £-9 FUEL AIR L_ STACK DISCHARGE ! rojo crc ctl BOILER SAWMILL 65% EFFICIENCY 168 200)|1,000 600|1,377 760(1,100 BLOWDOWN ORY KILNS Asi 340/6,000 600|105 137 |42,368 FEED WATER TREATING PLANT eons a 340 (1,000 o j1668 200/1,000 DEAERATOR TANK MAKE-UP ( > o {18 §6| 1,963 10 PSIG 10| 105 cart OVERFLOW PRESSURE-PSIG ENTHALPY- BTU/LB TEMPERATURE-°F | FLOW-LB/HR 600| 1,377 750] 48,196 TURBINE 4,381 GENERATOR 11 LB/KWH 5,000 KVA — > 4,250 65% EFF ‘97% EFF ) ee 3°HG| 915 126 |48,196) “Hise: 2,641,141 —<—__ 93 609,494 i \ HEAT CONDENSOR EXCHANGER \ / 50|28 ~ 60|609,494 (1,218 GPM) 3° ue 23 93 igs leet 48,19 oO 28 60/2,641,141 (5,278 GPM) WAANGELL FOREST PROOUCTS LTO WRANGELL. ALASKA CARROLL, HATCH & ASSOCIATES INC. eae ee oe i - CASE NOT 2-9 STACK DISCHARGE ! FUEL BOILER 65% AIR EFFICIENCY DEAERATOR TANK 10 PSIG 4 105 137] 0 OVERFLOW 600/1,377 760/ 1,100 BLOWDOWN 600/106 137 [60,159 FEED WATER DESUPERHEATER o |168 200/1,000 120|1,192 340)6,000 ORY KILNS 120f,192 340 1,000 TREATING PLANT MAKE-UP ( > o {48 56] 1,963 PRESSURE-PSIG ENTHALPY-B8TU/Li TEMPERATURE-°F | FLOW-LB/HR 600| 1,377 750| 46,196 TURBINE 4.381 GENERATOR 11 LB/KWH - §,000 KVA ~» 4,250 65% EFF \ 97% EFF 25 45/2 ee otis 126 |609,494 . / . / \ HEAT hn EXCHANGER / \ we] 125 |48,196! 50|28 60 | 609,494 (1,218 GPM) o | 28 60 |2,641,141 (5,278 GPM) WAANGELL FOREST PROOUGTS LTO CARROLL HATCH & ASSOCIATES INC. [-essassis tot Avy Ty aang pane 3 uw POWER PLANT _ ENERGY FLOW DIAGRAM CASE NO? PORTLAND, OREGON FUEL AIR STACK DISCHARGE t PRESSURE-PSIG ENTHALPY-8TU/L& TEMPERATURE-°F ' FLOW-LB/HR DESUPERHEATER BOILER 120|1,192 340/1,000 Lost 65% EFFICIENCY Oo {1668 200|1,000 600/1,377 750) 1,100 DRY KILNS BLOWDOWN 600/105 137| 56,334 FEED WATER 120,192 340 (1,000 TREATING PLANT o {168 200/|1,000 00] 1.377 750| 48,196 —~ TURBINE Pare GENERATOR : i 11 LB/KWH $,000 KVA font**8 65% EFF 97% EFF / SZ 25|13 45 12,641,141 o [93 125 |609,494 —— / ; HEAT — EXCHANGER \ =e 50/28 60 | 609,494 (1,218GPM) o | 28 60 |2,641,141 (5,278 GPM) —x- a MAKE-uP 2 {38 126 [48,19 §6/1,143 10 PSIG _ a 105 137] 0 OVERFLOW WRANGELL FOREST PROOUCTS LTO ENERGY FLOW OIAGRAM - CA;E NO 2 CARROLL, HATCH & ASSOCIATES INC. ea Finally, Figure 6-3 covers Case 3, where the process load is increased to include the dry kilns and the treating plant. At the same time power output is maximized. This should be the most severe demand situation encountered. Under these circumstances the boiler output is 56,176 1b steam per hour. (It should be pointed out that the scenario in Case 3 assumes the dry kilns would be started up [demand @ 12,000 Lb steam per hour] only during “off-peak" periods and _ the steady demand from each kiln is 3,000 lb steam per hour.) A boiler capable of delivering 60,000 lb steam per hour (a nominal size for most boiler manufacturers) will be required for the power plant and process steam demands. FUEL STORAGE Hog fuel storage can present monumental problems. The system in existence at the mill is simple but adequate for present needs. The system handles only white wood, sawdust and chips. A new system must store a great deal more fuel. It must also handle bark and MSW. Fuel is generated while the mill operates. If the mill operated daily there would be little need to store more than a day’s fuel requirement. Since the mill does not operate on weekends and since there will be periods where three or four day “holiday” weekends occur, the fuel storage should be adequate to sustain a 4 day “non-operating" mill period. A mill “non-operating" period is defined as a Saturday or Sunday type fuel use as presented in appendix "C". That would be 120 Ton/Day resulting in a 480 Ton storage capacity. Since dry kiln use represents a large part of the storage requirement, but dry kilns are a contingent possibility, it would be appropriate to size the fuel storage without consideration for the kilns initially, but with the thought _that storage could be increased at the time the kilns are installed. In this case the required storage would be (less 56 Ton/Day) 256 Ton. Unloading and some processing facilities for MSW will be included as part of the fuel handling and storage system. Prior to being stored bark should be hogged to a 3" minus size. This will facilitate handling on conveyors and increase the surface to volume ratio which will help the fuel dry. Sawdust and bark from the sawmill and bark and fines from the whole log chip plant can be mingled in the same storage pile and this will constitute the majority of hogfuel. MSW is planned to be stored and mingled with the | hog fuel. 6-6 CARROLL, HATCH & ASSOCIATES INC. MSW is expected ta amount to 13.4 Ton per week. probably delivered 3 to 4 times during the week. In contracting with the city there are some important limitations that must be imposed on the MSW. The city should separate waste products. (This is most effectively accomplished by having citizens separate their garbage into three sorts: 1.) burnables, 2.) non-burnables [glass and metals] and 3.) plastics.) WFP should accept only the burnables and the plastics (if the plastics are compacted). Finally, if and when planer shavings are part of the fuel mix, it would be well to store the shavings separately. The shavings will most likely be “dryer” than the balance of the fuel. A separate storage facility would allow shavings to be metered at controllable rates which could help combustion when fuel becomes wetter than normal. CONCLUSIONS The main elements of the system have been sized. Inclusion of MSW has little effect on the nature of the fuel supply but yields a most significant relaxation of boiler emission requirements. 6-7 PLANT DESIGN As part of the sizing task, a plant design was adopted. The design is conventional with respect to wood fueled, steam driven turbine systems. Further design considerations and details will be reviewed herein. The power plant system is divided into the following principal components: L. Fuel Storage & Handling 2. Boiler with Burner 3. Feed Water System 4. Yurbine-Generator 5. Neat Disposal 6. Electrical Intertie Prior to discussing design detail some remarks with respect to site location are necessary. First it should be recognized that determination of the definite power house site is beyond the scope of this study. There are several possible’ sites. The many considerations required in determining the most appropriate site involve facilities other than the power house. The assumption is made that a suitable site will be chosen on the existing mill site. FUEL STORAGE & HANDLING In previous discussion it was determined that storage capacity should be 256 tons. Using a conversion constant of 2.2 ton per unit, the capacity must be 116 units (wet), expandable by 110 units to a total of 226 units. llog fuel occupies 200 cuft per unit. Net volumetric storage is then (200 cuft/unit x 116 units) 23,200 cuft. A storage facility must contain this volume of fuel to satisfy the initial storage requirements. The Wrangell area is a coastal location subject to substantial rainfall (annual rainfall 80-100 inches’ per year). Winters experience significant snow fall as well. . There is no question about the necessity of fuel storage -being covered. With winter temperatures frequently falling below 32°F the top layers of the fuel pile are expected to freeze. Insulating and heating a large storage facility to prevent freezing is out of the question. A design which is economic and can deal with frozen fuel crusts will involve the use of a "cat" to organize and distribute fuel within the storage building. The action of and weight of the cat will breakup frozen fuel. Because of the use of the cat, both the fuel delivery and recovery systems can be quite simple. . 7-1 VANNULL, NATU a RVSUUIA Coe — — aa A proposed fuel storage facility is described on Page 7-3. The facility consists of a covered slab 50 ft x 50 ft with an apron extending 20 ft beyond the front of the slab. Side walls of reinforced concrete extend 8 ft above grade. The roof is a peaked metal design with overhang to the extent that the sides can be open. The angle of repose of the hog fuel is such the that fuel should not be higher than 6 ft at the side wall while reaching a peak elevation of 15 ft under conveyor along the centerline of the building. An overhead conveyor will dump fuel along the length of the pad. There will be four different dump locations. The piles will spread to the sides by the natural effect of gravity. Wood residue from the various manufacturing operations, except the planermill, will be conveyed to the overhead conveyor by the most appropriate means, pneumatic or mechanical. Planer shavings will be stored in a silo so that it will be possible to meter shavings into the fuel feed at a controlled rate. Recovery of fuel takes place by way of a drag chain conveyor located in a trench along the center of the pad. The cat will be used to manage the pile as required. The storage volume can be doubled in the future by extending the covered pad 50 ft. A hopper is provided to receive MSW from city dump trucks. The hopper will accomodate the capacity of a dump truck. The floor of the hopper will be equipped with a drag chain for moving material to the “shredder”. The shredder reduces size of the MSW and acts as a screen to prevent undesirable material from entering the fuel system. Material leaving the shredder is now referred to as Municipal Derived Fuel (MDF). The MDF is conveyed to the main fuel pile via the distribution conveyor. The intent is to mingle the MDF with hog fuel. - BOILER/BURNER SYSTEM Fuel will be fed from the storage pile to a surge bin. The surge bin will have “high” and “low” limit sensors which will control the starting and stopping of the main fuel feed conveyor from fuel storage. Fuel from the surge bin will be fed to the boiler at a controlled rate dependent upon the steam demand. The boiler plant includes a building to house the boiler, combustion chamber, fuel feeding system and controls. Fans, air preheater and air pollution control equipment will be located outside on a concrete slab. The building will be steel framed with metal siding and roofing. Platforms, catwalks, stairways and ladders will be provided for operating and maintenance 7-2 CARROLL, HATCH & ASSOCIATES INC access. «t A wood burning boiler of 60,000 LB steam per hour capacity @ 600 psig and 75U‘F, has become common place in the forest products industry. There are a number of manufacturers of successful burner/boiler systems available. A most important consideration is the capability of burning fuel with the high moisture content that is experienced at WFP. At first consideration, the use of a rotary fuel dryer seemed appropriate. The fuel is dryer entering the boiler, thus less “excess" air is required. A fuel dryer using stack gases removes moisture from the fuel outside the boiler and thus reduces the amount of gas volume (and velocity) through the boiler. This has a beneficial effect of controlling particulate emissions. However, because of the salt content of the fuel which is imparted to the flue gas and its corrosive effect on mild steel, the useful life of a rotary dryer is estimated to be only two or three years. An alternative is to make the dryer out of stainless steel, which makes the initial cost extremely high. The use of an auxiliary dryer was abandoned. Instead the concept of an “air preheater" has been chosen. Heat will be extracted from the flue gases in the air preheater which will in turn, raise the temperature of the combustion air. The boiler will operate at higher efficiencies but not quite as high as if an auxiliary dryer vas used. A burner/boiler system will have to include an air preheater as a minimum to insure the ability to burn the wet fuel. It is unlikely that a used boiler will be available, not because of the capacity requirement, but because of the pressure and temperature requirements. Boilers of 60,000 lb/Hr capacity were rarely manufactured in high pressure design with provision for superheat prior to 1980. (Passage of the Public Utility Regulatory Policy Act of 1979 [PURPA] encouraged cogeneration in smaller capacity boilers. ) There are a number of other considerations to be made in Selecting the appropriate boiler. Grate design from performance - and ash removal considerations are important. The method of introducing fuel to the burn is important. Turn down capability is a serious consideration since the boiler must operate at approximately 7,000 1lb/Hr overnight and on weekends. This means a turndown of about 9:1. State law requires flue gas clean-up equipment must be capable of meeting 0.1 g/SCF. Usually a multi-cyclone system is capable of meeting this requirement. The nature of particulate emission influences the efficiency of the cyclones. Specifically, particle size has a definite effect. If there is a large portion of particulate emission that is less than one micron in size, the unit may not be capable of meeting emission limitations. 7-4 CARROLL, HATCH & ASSOCIATES INC Before a definitive answer is made, it is advisable to obtain more information on the present operation concerning the nature of particulate emissions. This study will proceed with a basic situation employing only the multi-cyclone collectors and an alternate case where additional clean-up equipment is employed. FEED WATER SYSTEM Make-up water will be provided from the pond that is located on the northeast corner of the site. This pond provides make-up to the present system. Since the new steam sytem will be 100% condensate return, there will be little need for significant amounts of additional water. Make-up water will be introduced to the system through either the make-up system or through the “desuperheater". This depends upon what the system is being required to do. The boiler make-up water treatment will include primary deionization, degasification, deionizing polishing and storage. The make-up water will be piped to a cationic resin deionizer to remove magnesium, sodium, potassium and other cations. The water will then run to a degasifier to remove CO2, followed by an anion resin deionizer to remove chlorides, sulfates and other negatively-charged anions. This constitutes the primary deionizing stage which produces a water with less than 10 ppm of dissolved solids, with very little silica or carbon dioxide remaining. The water will then be stored in a fiberglass tank having a 24 hour holding capacity and with a nitrogen blanket to prevent the pick up of airborne contaminants or carbon dioxide. Water will be pumped from the storage tank to the condensor through a mixed bed polishing deionizer containing both cation and anion exchange resins to achieve a final water quality below 1/2 micron/cm resistivity. TURBINE/GENERATOR -The turbine is a machine of a relatively popular size requiring - operating conditions (pressure and superheat) that are fairly common. There are a number of sources for new machines like this. There may be a large number of “used” machines available, as well. There would be no problem if a slightly larger machine were chosen as a matter of convenience and availablity. With WFP expansion plans in mind, the generator should be no smaller than the size specified. The turbine generator plant will be housed in a steel framed metal clad building adjacent to the boiler building. An overhead crane will be provided for servicing the machinery. The building will house the turbine generator, condensor, and feed water treating equipment. The controls and switchgear will be located in an enclosed room on the generator level. ‘ 7-5 CARROLL, HATCH & ASSOCIATES INC. The turbine will be of the impulse type, condensing multistage, single casing and horizontally split. The unit will be designed for a throttle tlow of 60,000 lb of steam per hour @ 600 psig, 750 °F, exhausting at 3" Hg. The generator will be air/water cooled, totally enclosed and self ventilated. The unit will be provided with solid waste voltage regulation and brushless excitation system. In order to match the existing power distribution system at the plant, the power output characteristics of the generator must be: 2,400 V, 3 phase, 60 hertz, delta. A new machine could be procured with these characteristics without problem, but a used machine might have to be “rewound”. HEAT DISSIPATION The condensor will be a single shell, two pass surface type condensor complete with a steam jet air ejector and stainless steel expansion joint. The condensor is sized to condense 60,000 pph at 3" HgA, with 60 °F inlet water and 125°F outlet water. The condensor will be mounted below the turbine generator on a suitable foundation. In the present system sea water is brought directly into the cold side of the condensor. A pump and piping system convey sea water to and from the condensor. The entire system is subject to corrosion from the effects of sea water. In an effort to avoid corrosion in the future, an intermediate cooling system is to be used. The intermediate system will carry heat from the condensor to a heat exchanger located close to the sea waters edge. Sea water will be pumped a short distance through the heat exchanger and then discharged back into the sea. The heat exchanger is to be designed for sea water entering at 45°F and exiting at 60 °F. This design is contingent upon approval from the environmental protection agency with respect to allowable sea water temperature increase. ELECTRICAL INTERTIE The existing plant electrical system is diagramed in “one-line"” fashion on a drawing, page 7-8. In the present scheme power is generated and supplied to the 2,400 V buss by steam turbine and by diesel generators. When necessary the city system can be made part of the plant system. In the past the city has supplied part of the load on rare occasions and the plant has in turn supplied the city with power from time to time. 7-6 CARROLL, HATCH & ASSOCIATES INC The 2,400 V buss is at the heart of the plant electrical distribution system. The switchgear that constitutes this buss is located in the existing power house. It will be appropriate to continue to use this buss. The new system will intertie with the old. This arrangement is presented on page 7-9. In the future system base load generation will take place on the steam turbine/generator. The two 1,000 KW diesel generators can be left in place as back-up to the steam system. The city system can continue to be connected as a matter of emergency. Future facilities are planned for electrical service at 277/480 V. Each facility will include a set of transformers which will be required to change the voltage accordingly. In the case of the whole log chipping plant, the chipper motor at 2,000 HP will best be served at 2,300 V so that plant will be served with two power distribution systems. 7-7 a KEY TO ABBREVIATIONS S-T GN - STREAM TURBINE GENERATOR O-GN = - DIESEL GENERATOR cB - CIRCUIT BREAKER sw - SWITCH SN Po - TRANSFORMER CITY OF WRANGELL J 2,500 KVA 12,000 V D-GN 300 KW EXISTING BUSS - 2,400 V, 3 PHASE, 60 HERTZ, DELTA [ce ce [ce] 1500 KVA 277/480 V COMBULTING EwaMmE RS PORTLAND, OREGON == 2,500 KVA EXISTING ONE LINE DIAGRAM /o-an ic 8} 11, 000KM pe) OKW MILL 2,300 v LOADS LOG YARD EXISTING POWER PLANT S-T GN 1600 K LOADS SAWMILL PDC NO. 1 SAWMILL PDC NO.2 el KEY TO ABBREVIATIONS CARROLL HATCH & ASSOCIATES INC. S-T GN - O-GN - cB sw = sh CITY OF WRANGELL WRANGELL FOREST PRODUCTS LTO _ WRANGELL. ALASKA ELECTRICAL SYSTEM <9 FUTURE ONE LINE DIAGRAM STREAM TURBINE GENERATOR DIESEL GENERATOR forrcin ohaeen CIRCUIT BREAKER SWITCH ‘ (oa (oa ao ow Es TRANSFORMER 8 ~ | 277/480V 277/480V 277/480V 277/480V | 2,500 KVA N [sw] 6-1 WHOLE LOG »250KW) PLANERMILL = 12,000 V CHIPPING PLANT [es] ca TREATING PLANT DRY KILNS a EXISTING BUSS - 2,400 V, 3 PHASE, 60 HERTZ, DELTA ea ra el === 2,500 KVA 165600 KVA 277/480 V /o-an\ LOG YARD MILL 2,300 Vv SAWMILL SAWMILL LOADS LOADS POC NO. 1 PDC NO.2 CARROLL, HATCH & ASSOCIATES INC. With the plant design fixed, it was possibie to establish a proiect capital cost. The project is segmented into major divisions and subdivisions. Costs were determined at the subdivision level in as many cases as possible. Specific quotations were sought on the boiler system, turbine generator and the principal cooling equipment. Other costs were determined via verbal inquiry and through the use of records from similar projects. The details of the cost estimate appear on page 8-4. The total cost of project labor and materials is forecast to be $ 4,806,000. A number ot other project costs must be added to that figure. Most equipment cost was estimated on a delivered basis at a U.S. mainland port, (Seattle or Tacoma). Additional freight costs were forecast using a rate of $ 2.65/cwt for barge transportation from mainland port to Wrangell. Engineering and Project Management expenses are determined as functions of the material and labor costs. At the values derived, approximately 7,000 hours of engineering and 5,500 hours of project management are included in the forecast. Contingency fee is an allowance for a host of potential costs that were not accurately forecast. While a fund of almost a half million dollars may seem extreme, it is better to err on the “high” side rather then underestimate. If the contingency fund is not used entirely, the cost of the project will be lowered by the amount of the surplus. Construction Insurance is forecast as a lump sum item. Probably, the most reasonable approach is to obtain insurance from the company that presently underwrites the existing property. Construction Financing costs are based on forecasting an interest rate against the construction expenses that are incurred to date over the course of the project. The figure used in this capital cost estimate is based on the cash flow expected to be incurred. (See report section 9 for the construction schedule and the cash flow forecast) The total project cost, % 6,463,000 divided by the capacity of the power plant , 4,250 KW, yields a cost of $ 1,521/KW. This figure is a relatively common index for comparing wood fueled power plant costs. A cost of $ 1,000/KW would be at the very low end of the index scale. Two factors drive this cost toward the higher end, small size of the plant and location of the facility.’ CARROLL, HATCH & ASSOCIATES |NC.°§ WRANGELL FOREST PRODUCTS LTD - CAPITAL COST ESTIMATE UNIT MATERIAL LABOR UNIT TOTAL QUANTITY — KEASURE PER PER UNIT PER UNIT cost cost PROJECT $1,000 $1,000 $1,000 $1,000 FUEL STORAGE Site Prep & Concrete 194 CU YDS 1 29 18 47 47 Building 2,500 SQFT 1 100 30 130 130 Supply Conveyor 50 FT 1 8 2 9 9 Reclaim Conveyor 50 FT 1 8 2 9 9 Track Tractor 1 EACH 1 (EXST'G) 0 0 0 Fuel Conveyor 150 FT 1 30 8 38 38 Shavings Silo, 50 U 1 EACH 1 49 15 64 64 Shavings Unloader { EACH 1 18 5 23 23 Shavings Conveyors 50 FT 1 8 2 10 10 MSW Hopper & Conveyor 1 EACH 1 10 3 13 13 MSW Shredder 1 EACH 1 17 2 19 19 Shvgs Bin Fad 23 CU YDS 1 4 2 6 6 SUB TOTAL 279 88 368 368 STEAM PLANT Site Prep & Concrete 300.) CU YDS 1 45 RY] 82 82 Building 2,400 = SQFT 1 100 43 143 143 Boiler 1 EACH 1 450 193 643 643 Firing Systes 1 EACH 1 250 107 357 357 FD, ID System & Ducting 1 LOT 1 100 43 143 143 Heat Exchange 1 EACH { 75 32 107 107 Mul ti-Cyclone 1 EACH 1 5 32 107 107 Controls 1 LOT 1 100 43 143 143 Piping & Valves 1 LOT 1 100 43 143 143 D.A. & Feed Wtr Puaps 1 LOT 1 75 32 107 107 Ash Reaoval Systea 1 EACH 1 50 2 1 1h SUB TOTAL ; 1,420 626 2,046 2,046 FEEDWATER TREATMENT Deaineralizer 4 EACH 1 15 6 21 2 Boiler ! EACH 8 3 i i Piping 1 LOT 3 i 4 4 0 0 0 0 SUB TOTAL 26 10 % 3% PO 8-2 CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS LTD - CAPITAL COST ESTIMATE TURBINE/ GENERATOR Site Prep & Concrete 200 «CU YDS 1 30 28 58 58 Building 1,600 SQ FT 1 64 32 % % Turbine-Generator 1 EACH 1 750 150 900 900 Condenser 1 EACH 1 200 40 240 240 Controls { UOT 1 50 10 60 60 Switch Gear 1 LOT 1 50 10 60 60 Piping & Valves 1 LOT 1 30 30 60 60 Ejectors/Vaccuua Puaps 1 LOT 1 15 6 21 21 SUB TOTAL 1,189 306 1,495 1,495 COOLING SYSTEM Site Prep & Concrete 25° «CU YDS 1 4 2 6 6 Heat Exchanger 1 EACH 1 150 30 180 180 Puaps 1 EACH 1 15 3 18 18 Piping & Valves 1 LOT 1 15 9 24 2b Saltwater Pipe 1 LOT 1 15 9 24 2 Saltwater Puaps 1 EACH 1 15 9 24 24 SUB TOTAL 214 62 276 276 EMISSION CONTROL Site Prep & Concrete 25 «CU YDS 1 4 2 6 6 Pollution Equip 1 LOT 1 250 75 325 325 Ducting 1 LOT 1 40 12 52 52 Controls I LOT 1 10 5 15 15 SUB TOTAL 304 4 398 398 ELECTRICAL INTERTIE Transaission Line, 5 KV 500 FT 1 25 13 38 38 Switch Gear 1 LOT 1 40 20 60 60 Control Equipsent | 1 LOT 1 15 8 23 23 SUB TOTAL 80 40 120 120 PROCESS STEAM SYSTEM PRV & Desuperheater 1 LOT 1 30 12 42 42 Steaa Main 50 FT 1 “5 2 7 7 Condensate Return 150 FT 1 5 2 7 7 Flow Meter 1 EACH 1 5 2 7 7 Controls 1 LOT 1 3 1 4 4 SUB TOTAL 7 48 19 67 67 CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS LTD - CAPITAL COST ESTIMATE TOTAL PLANT EQUIPMENT 4,806 FREIGHT - 4,000,000 LBS (2,000 TONS) @ $2.65/C¥T 106 ENGINEERING @ 62 OF TOTAL PLANT & EQUIPMENT 238 PROJECT MANAGEMENT @ 32 OF TOTAL PLANT & EQUIPMENT 144 CONTINGENCY @ 10% OF TOTAL PLANT & EQUIPMENT 481 CONSTRUCTION INSURANCE 15 CONSTRUCTION FINANCING 624 TOTAL PROJECT COST CARROLL, HATCH & ASSOCIATES INC. CONSTRUCTION SCHEDULE The period required to build a wood fueled power plant of the size and design designated within this report is 20 months. The principal controlling item in that span is the amount of time required to deliver a steam turbine/generator. From the time drawings of the turbine are approved, most manufacturers require 12 months for production and delivery. If a “used” turbine/generator is found both suitable and available it can be substituted for a new machine. The next long delivery item is the burner/boiler equipment which requires about 8 months to deliver after drawings are approved. There is little likelihood that “used” boiler equipment will be available. At best a “used“ turbine could improve the project span from 20 to 16 months. The project schedule presented on page 10-2, is based on the use of new equipment. Construction financing costs will be minimized if equipment is ordered and scheduled to be delivered when it will best fit into the construction program. Using delivery of the turbine as the basis for timing, the other equipment was scheduled to be ordered and delivered. At time "0" engineering commences on the project. Efforts will be concentrated on confirming the turbine sizing, writing equipment specifications, obtaining proposals on equipment supply and finally, selecting the turbine vendor. Since the steam system is closely associated with the turbine, much of the same selection process will take place for the steam equipment during this same time. Once the “long delivery” items are on order, work on the shorter delivery items will commence. The schedule is planned for site work to take place at the same relative time. Foundation work follows site work closely and is scheduled to be ready approximately 30 days prior to receipt of equipment. Construction of equipment is forecast to require about 8-9 months. Start-up will require about 60 days after completion of construction. Page 9-3 is a proposed construction schedule with major items shown in terms of: start time, stop time and duration. 9-1 CARROLL, HATCH & ASSOCIATES INC. Page 9-4 is a line graph showing the flow of construction expenditures. The line indicating cash flow was constructed from the project schedule. Major items of equipment will require a “down payment” with the order and some progress Payments. These time related payments have been programmed into the cash flow schedule. Some item costs, i.e., Engineering, Project Management, Contingency and Construction Financing are forecast to require an even flow of cash over the life of the period. When the project is given a go-ahead, the construction schedule will be enhanced to the extent of being put on a computer program such as “Milestone” where a “pert” chart will be constructed along with cost tracking and control measures. 2-6 WRANGELL FOREST PRODUCTS LTD PROJECT CASH FLOW FORECAST DOLLARS (Millions) re HE hy it | || ithe EET ATT ll 1 2 3 4 5 6 7 8 9 1011 1213 14 15 16 17 18 19 20 21 22 23 24 MONTHS “ONI SSLVIOOSSY ® HOLVH ‘TIOWXVO ens PROJECT TT 4. eTaan PLANT 3S. TURBINE/@ENERATOR couipment sei O1Te Peepaaatt MONTHS 9-3 CARROLL, HATCH & ASSOCIATES INC. OPERATING COST PROJECTIONS Wrangell Forest Products can choose from a number of alternative methods for obtaining electrical energy. Before enumerating the various alternatives, it is appropriate to state the annual energy requirements for various combinations of existing and future facilities. In Section 4 of the study, a daily energy requirement was developed for each separate operation. Those daily figures will serve as the basis for an annual energy projection. With annual energy requirements and projected operating costs for each alternative, the cost per unit of energy (KWH) can be determined. A comparison of unit costs will be avery important determinant in helping make a decision about which alternative is the most advantageous. ANNUAL ENERGY DEMANDS Sawmill Single Shift On a single shift basis the sawmill requires 24,162 KWH per working day. The mill is expected to operate 250 days per year. Weekend days require 10,050 KWH’s. There will be 115 week end days per year. The total energy demand is then, 7,196,250 KWH’s per year. Sawmill Double Shift A working day requires 44,937 KWH when the mill operates on two shifts. Weekend days are the same as in the prior case. Annual energy required on a two shift basis is 12,390,000 KWH. Planer Mill Single shift When the planer mill load is added to the above, (250 days a year with a load of 5,285 KWH’s and 115 days a year with a load of 1,000 KWH’s) 1,436,250 KWH is included to result in ‘a total of 13,826,250 KWH’s. Whole Log Chipping Plant The chip plant imposes an additional (250 days a year with a load of 6,254 KWH’s and 115 days @ 1,000 KWH’s) 1,678,500 KWH’s a year. When added to the former loads the result is 15,504,750 KWH/yr. Dry Kilns Dry kilns are forecast to operate 300 days a year with a load of 2,400 KWH’s per day or 720,000 KWH’s additional. The new total is 16,224,750 KWH’s per year. 10-1 CARROLL, HATCH & ASSOCIATES INC Gerace ee eee ee eee eee) Treating Plant With the addition of a treating plant, the incremental addition of energy is (300 days/year @ 3,600 KWH’s/day) 1,080,000 KWH’s. The grand total for all facilities as described above is 17,304,750. Alternative methods of obtaining energy to satisfy these needs must be examined. ALTERNATIVES A. Shut Down Existing Power Plant The first alternative would be to shut down the existing power plant, operating the boiler only for the purpose of providing process steam and space heat to the existing mill. The boiler could probably be brought into compliance with respect to stack emissions. Some operating personnel could be released. Boiler maintenance costs would be minimized. The boiler could be refurbished to produce process steam for future dry kilns and treating plant requirements. All power would be purchased from the city as the needs arose. Capital investment is estimated to be $% 100,000. Costs for electricity would be negotiated with the city but WFP would be at the mercy of the city forever in the future. B. Operate As Usual The next consideration would be to continue to operate the existing boiler and power plant in the fashion that it is now operated. Some capital improvements may be required to bring the boiler into air quality compliance and to facilitate the fuel handling system for MSW. Electrical requirements beyond the ability of the existing turbine - generator would be purchased from the city. The present boiler would not be capable of supplying future process steam needs and also generating power . The existing generating equipment is old and will have ae high maintenance cost. Capital costs are expected to be ¢ 200,000. The existing generator system producing at 1,600 KW would supply a considerable amount of energy required. Purchase of supplementary energy from the city would be required as follows: 10-2 CARROLL, HATCH & ASSOCIATES INC Suppiemental Purchased Eneray Cperating Mode (KWH’s) Sawmill, One shift/day 1,665,750 Sawmill, Two shift/day 3,516,750 2. plus Planermill 4,464,250 3. plus Chipping Plant 5,666,000 4. plus Dry Kilns 6,161,000 5. plus Trating Plant 6,790,750 Add New Boiler , Retain Present Power Plant rF A ANRWNH new boiler could be obtained. This boiler could produce enough steam to: drive the existing turbine, provide process steam for the future loads and accomodate the burning of city MSW. The system would solve the existing air emission problems. Capital costs would be approximately $ 1,500,000. The amount of energy to be purchased from the city would be the same as in Alternative B. D. All New Power Plant The final alternative presented is the consideration of the new power plant with a 4,250 KW generating system. This system is designed to produce all of the electrical demand and energy required by WFP now and in the foreseeable future. The company would be independent of any other entity for power supply. There is a relatively high capital cost associated with this alternative. This plant may be an “over kill” if not all of the future facilities materialize. The generator will produce at its capacity for only short periods. Conversely, there are long periods of time when the machine could be producing power but will not because there is no market for the power or because the fuel supply may be limited. One aspect for justifying this alternative, is development of an energy cost which could be offered to the city in spite of the fact that the city indicates they will not purchase power. If that power price were considerably below the city’s current source cost, but high enough to contribute toward significant company revenues, it might be an appropriate marriage of interests. 10-3 CARROLL, HATCH & ASSOCIATES INC, ——————_____ NEGATIVE EXPENSE A new burner/boiler should be built to include incinerating MSW from the city of Wrangell. It is appropriate to expect the city to pay for the service rendered. This is customarily referred to as a “tipping” fee. For the size of the city of Wrangell, a reasonable tipping fee would be $ 10.00/ton which would generate revenue at the rate of $ 21,320/yr. The effect of this “negative” expense on each alternative is: Wass ALTERNATIVE-----—---------— A B c D $ 1,000’S 0 (21) (21) (21) OPERATING COST PROJECTIONS Costs associated with the purchase of electricity vary according to the alternative method used to obtain electrical energy. An analysis of operating expenses cannot be done in a vacuum. This study will use a comparative analysis by looking at the cost of operating under all of the viable alternatives. Labor While a new power generating plant may be more automated than the existing boiler plant, the manpower requirements will still include: Chief Power Plant Operator, day shift supervisor Boiler Tender/Fuel Pile Tender, day shift Boiler Tender/Fuel Pile Tender, second shift Boiler Tender//Grate Cleaner, third shift Boiler Tender/Fuel Pile Tender, weekends NPR Re There are 21, eight hour shifts per week. Each shift requires one operator. If an operator works five shifts a week then 4.2 operators are required in addition to the Power Plant Operator. The number of operators is then 6. If a boiler system is not required to produce power, the supervision of such a system is less critical. It is common place for wood fueled systems to run “unattended” for at least one shift at many sawmills. Often where there is a dry kiln operation, one man is: dry kiln operator, boiler observer and watchman all: at once on the third shift and on weekends. 10-4 CARROLL. HATCH & ASSOCIATES INC. "his conclusion is drawn for WEP, the voroduct requires two More operators taan does a boiler produces only process steam. The Labor cost tor producing power is: 1 Person @ $ 17.23/hr, 2080 hr/yr, $ 35,838 5 People @ $ 15.50/hr, 2080 hr/yr, 161,200 Total $ 197,038 The labor cost for producing steam only is: 1 Person @ $ 17.23/hr, 2080 hr/yr, $ 35,838 3 People @ $ 15.50/hr. 2080 hr/yr, _96,720 Total $ 132,558 The effect of this expense on each alternative is: ------------- ALTERNATIVE--------------- A B c D $ 1,000’S 133 197 197 197 Power Under three of the alternatives there will be an out of pocket expense for purchasing power from the city. The amount of kilowatt/hours varies depending upon the alternative used and depending upon the facilities operated. A table is presented below which shows the electrical energy purchase matrix. FACILITY AND SCHEDULE ALTERNATIVE METHOD OF OPERATION A B&c D (1,000’S KWH’s/YR TO BEPURHASED ) 1. SAWMILL, SINGLE SHIFT 7,196 1,666 0 2. SAWMILL, DOUBLE SHIFT 12,390 3,517 0 3. 2. PLUS PLANERMILL 13,826 4,464 0 4. 3. PLUS CHIP PLANT 15,505 5,666 0 5. 4. PLUS DRY KILNS 16,225 6,161 0 6. 5. PLUS TREATING PLANT 17,305 6,791 0 The operating costs will be forecast using city power purchased at $ 0.07/KWH. No inflationary factor will be used to escalate power costs for the 10 year period. For each alternative method of operating (A, B, C & D) and for each level of operation (1 thru 6) a power cost will be calculated. That cost will then be amortized against the total number of KWH’s used at the particular level and the cost in mils/KWH will be added to the cost of the other expenses. 10-5 CARROLL, HATCH & ASSOCIATES INC. Maintenance The first alternative would allow a reduction in present Maintenance expense. Not operating the turbine/generator will result in saving an estimate of $ 35,000/yr in maintenance expense. The second alternative results in the same maintenance cost that is now experienced. That cost is $ 50,000/yr. A new system of equipment should operate without extraordinary maintenance efforts. A ratio of 1.5% of the new equipment cost is used as an approximation of the annual maintenance cost. The cost of new plant and equipment, installed, is $ 1,500,000 for Alternative 3 and $ 4,806,000 for the final alternative... The effect of this expense on each alternative is: ------------- ALTERNATIVE--------------- A B c D $ 1,000’S 15 50 23 72 Insurance It will be necessary to increase the amount of insurance on the plant and equipment to include the new power generating plant. Incremental insurance costs (premiums) are forecast to be $ 24,000/yr. Conversely, if the present power plant is shut down the insurance premium should be reduced. The effect of this expense on each alternative is: A B c D $ 1,000’S Taxes Real property taxes are assumed to be levied at the rate of $ 5.00/%$1,000 of value. The tax is the: $ 500 on Alternative A, $1,000 on B, $ 7,500 on C and $ 24,030 on D. 10-6 CARROLL, HATCH & ASSOCIATES INC Real property tax is assumed not subject to inflation. The real property taxes will assume a constant millage rate to be applied against the “depreciated” value of the facility. The effect of this expense on each alternative is: A B c D $ 1,000’S Rolling Stock Fuel The cat used to maintain the fuel pile will require fuel and Maintenance. The fuel and maintenance expenses are forecast to be $ 10,000/yr for all alternatives. The effect of this expense on each alternative is: ------------- ALTERNATIVE--------------- A B c D $ 1,000’S 10 10 10 10 Chemical Treatment The boiler water system requires the addition of chemicals to keep the system clean and free from acid or caustic build-up. A power generating system requires considerably more chemical attention than a process steam system. The cost for chemicals is forecast at $ 5,000/yr for alternative A, 15,000/yr for B and C and % 20,000/yr for D. The effect of this expense on each alternative is: A B Cc D $ 1,000’S 5 15 15 20 Station Power The power plant itself will require power. Since the plant will generate the required power and since there is an adequate supply of fuel for which there is no other use, there will be mo cost associated with the station power requirements. 10-7 CARROLL, HATCH & ASSOCIATES INC. Inflation Factor Most of the operating expenses are subject to periodic increase due to the effects of inflation. The analyses in this study assume that operating costs will increase at a rate of 5% per year due to inflation unless inflation is addressed separately for that item. Summary of Operating Projections The operating costs are combined in summary sheets that cover a ten year period. Because federal income taxes influence the “real world“ financial considerations, the calculation of energy cost in $%/KWH will take place, ftirst on an “expense” basis that includes “depreciation” and secondly on a “cash" basis which excludes depreciation but includes federal tax investment credit amd principal Payments toward loan retirement. Because the analysis deals with “expenses” as opposed to “revenues”, no consideration for federal or state income taxes will be made other than the assumption that WFP has other tax liabilities against which tax investment credits can be taken. 10-8 CARROLL, HATCH & ASSOCIATES INC, ———_____ FINANCING METHOD With the establishment. of The Public Utility Regulatory Policy Act of 1978 (PURPA) a number of “creative financing" methods were developed for the purpose of encouraging alternate energy development. Part of the National Energy Act involved creation of federal income tax incentives including: tax investment credit (energy a 10%), accelerated depreciation and favorable treatment of limited partnerships. When combined with regular incentives like the normal tax investment credit and net operating loss carry forward, the incentives were quite economically powerful. Despite the fact that a project might operate at a loss for several years, the special treatment accorded investors could make the project “do-able” and even attractive. However, integral to any project was the establishment of an “income stream“ from the sale of power to a local utility company . The income stream provided the “cash flow" to enable the whole deal. Without the establishment of an “income stream" a project would have to benefit from “reduced operating costs”. If the cost reductions are large enough and if the organization - has adequate tax liabilities from other activities then the project may be economically feasible. When it is not possible to establish an income stream, the use of a limited partnership is precluded. Project financing becomes the concern of the entity for whom the benefits will accrue, namely Wrangell Forest Products. The U.S. congress has seen fit to remove some of the earlier incentives. As of December 31, 1985, the 10% Energy Investment Tax Credit will cease to exist. Accelerated depreciation is on unstable ground with recommendations for a new tax plan. Because of these changes an energy project must now be justified on its own merits like any other capital expansion project. WFP will examine the economic benefits of a new power plant using the assumption that such a project will be financed in a “traditional” manner. The expansion will use loans from commercial banks at current and long term interest rates. Depreciation will be on a straight line basis over the useful life of the equipment, 20 years, in the case of the new power plant (Alternative D) and the new boiler (Alternative C). The company will fund 20% of the expansion (equity) and borrow 80% (debt). For capital expenditures under Alternatives A and B the loan term will be 2 years with an interest rate of 15%. Alternatives C and D which require more capital, will have loan terms of 10 years with interest rates of 13.5%. (rR RR 11-1 CARROLL, HATCH & ASSOCIATES INC.§ $n OO PRORPORMA ETMANCTAL PROTECTIONS The usual financial analysis deals in terms of “revenues”, expenses, and profit or loss. In the case of the power plant at Wrangell Forest Products, the analysis must seek to find the least costly way of obtaining electrical energy. So in this instance the financial analyses will deal only in “costs”. The objective will be to determine the cost of producing power from the proposed on site plant and compare that alternative to other methods of obtaining power. The comparison is not a simple straight forward exercise. The amount of electrical energy that is to be consumed annually has a most significant effect on the cost. The amount of energy required will depend upon the number of facilities the company chooses to build and operate. Costs can be looked at on an “expense” basis and on a “cash” basis. The determinant type of cost depends upon the income tax liabilities of the company and will best be determined from within. Costs incurred during the first year of operation differ from each of the following years because of relative changes in individual expenses. Cash basis costs change with the effect of tax liability. The comparison will look at four methods of operating, at six levels of energy consumption for each method. The comparisons will be made for each year over the next 10 years with the assumption being that operation will begin in 1987. Each of the next four pages contains a table constructed for a particular alternative, A, B, C & D. Annual costs are Presented and summarized. In each case the costs are divided by the number of killowatthours required at the various levels. The results are two sets of tables showing the cost per kilowatthour, ome table on an expense basis, and the other on a cash basis. In order to present this material in a more easily observed fashion, five pages of graphical information are provided. Each graph presents cost of energy as a function of quantity of energy required. Further each graph contains a line for each alternative to be considered. Alternatives, and therefore financial alternatives, can be readily compared by observing the line relationships on the graphs. Tables on the following pages were configured on an electronic spreadsheet. “Rounding” errors may occur as a result. Be assured that totals are accurate. 12-1 OPERATING EXPENSES rtm 0 TIPPING FEE ri} Labon us PURCH ELECTR AALNTERARCE se SURE e REAL PROPER oi) OLESEL FUEL se CRAICA TR us TOTm OF EF 08 DEPRECIATION 7 INVEREST E17 ou ToT, EPEMS $28 0 750 bevivemn Samm, 1 99.100 113 AY/YR, 10,¢30/00T 71%, 738 SmmILL, 2 90.008 12,390,000 PLAMERATLL = 98.086 13,026,250 WHOLE LOS $0,084 15,304,730 oar CILRs 54.083 16,226,730 TMATING P $0,083 Case Flee TOTAL ELPE (92089 tw Tal 1e OCPREL LATS a Paci, wm Teva Camm F (za) 070 bere samt, 1 0.101 113 BAY/R, 10, 630/007 SMI, 2 5.008 PUMERRILL 98.086 MLE LOS 54.083 ay KIL 9.004 TREATING P $0,083 WRANGELL FOREST “PRODUCTS LID - ALTERNATE ‘A° OPERATING PROJECTIONS (8 1,000°8 " " ” " 2 8 (7a (23 ua 13) aan 7 39 1 s1s3 set Oty a7 § OC TKMM IS ADDED TO OTHER COSTS 18 THE ENERSY COST TABLES BELOW 3 ss PY “1 we 7 ” ® ” ” ” ” ” ” ” ” ” oly su #12 #12 us oy 6 ou hd 8 ny irs] 51% 526 16 m7 se 17 se ors] rs] m ” e % (oo (90) (90 ” ” 122 176 1 $207 1738 sme COST GF EMERSY IN S/KIN - CIPENEE Oasi8 90.108 4.101 99.163 90.106 90.103 $0,163 90.008 0.008 0.009 10.070 90.007 90.070 90.006 9.006 0.07 4,008 $9,007 $0.008 10.008 4.083 $0,083 50.006 90.083 90.006 10.004 $0,006 $9,063 $0,083 90.083 $0,083 90.083, 4.083 50.008 ced 008 0.08 WRAUELL FOREST PROGUCTS LID - ALTERNATE ‘A° OPERATION PROZECTIONS (say (728) (5738) (207 7 (s7 e e e e e o a n a a ° e aw e e e e e (a (206) (70 (an (mm me COST @ DURST IN s/rmm - Cam DesIS 90.106 90.09 0.108 90.102 99.163 90.163 em 00070800 ee ee es | $0. 086 90.083 0.008 $0,063 90.083 8. Oh 10.03 0.0m te es Ce ee ee 12-2 “ (ss) 5263, 90.011 0.08 0.087 $0,086 (2630 en 90.087 90.087 90, 08 Ss (ss) 1% 4 sm me $0,092 0.070 $0,008 90.087 90.086 (9276 (a7 " (33) $206 $23 $0,110 90.093 0. 50,089 50.008 am 0.03 en 0.089 50.008 CARROLL, HATCH & ASSOCIATES INC, —_—_—_———— WRNMGELL FOREST-PRODUCTS LTD - ALTERNATE "B* OPERATING PROJECTIONS OPERATING EIPERSES (8 1,000°S) rea 0 nn ” " " n A] " s % TIPPING FEE (20 ($72 ($730 (824) ($76) ($27) (s7m) (300 (sb ($33 LAR, 6 FE sn $207 $217 178 139 11 ori) am sm 136 PURCH ELECTR $ 0.07/KWM 18 ADED TO OTHER COSTS IN THE ENERSY CORT TABLES BELOW FOR SUPPLIMENTAL ENERGY THAT 18 PURCHASED MALRTERAACE 1” 33 ss LT st Sed “7 J $8 sme | RSURACE ” ci] ” ” ” ” ” ” ” ” REM PROPER oT * r oJ ” ” ” ” ” ” DIESEL FUEL ue su ty 12 $12 us us ue os 6 CHEAICAL TR us me uy 7 ue ne m ma #22 3 Tore oF ED $752 $204 su sm 5308 $328 se 4333 ot a] DOPRECIATION LD] “ Cd Ld ” ” ” * ” INTEREST Ex? ma mu (909 (so (90 ” ” ” ” ” Tee CoS $34 $38 au 13 seg $320 Ds) ws ot ssa (2 wie SMATLL, 1 90.080 9.068 $0,000 90.062 90.064 90.068 90.063 48, BS 90.068 $4,070 = 11S BAT/7R, 10,0S0/00" 7,1%, 730 SMILL, 298.083 0.0468 10.088, 99.007 0.008 99.046 90.067 14, bee 0.688 90,081 12,390,000 PLEMEILL 88.043 9.063 90.006 90.007 90.068 0.6 $0,007 Lo] 50.009 90.651 13,826,250 OME LOS 90.06 90.0406 90.006 90.007 0.08 99. 9.007 58, 08 $0.09 $0.05! 15,304,790 Oey Crus 10.006 10.046 1.6 90.067 4.8 Cy $0,047 9.008 $0,009 0.081 16,228,738 TREATING P 90.086 0.006 18, 046 90.0407 0.07 90.06 90.047 9.008 90.009 90.030 WAUELL FOREST PRODUCTS LTD - ALTEMUATE “3° OPERATING PROZECTIONS ee me ty Tad @ » ’ ’ ‘ « ’ ‘ ’ ‘ ’ werner « « ® « 9 ’ ’ ’ ’ ’ neve ™ rT) a ‘ ’ ’ ’ . ’ ‘ Taam. 0m oe umm Cont OF RRO 1m 6mm - coms Deas 70 one SMILL, 1 90.062 99, bb 0.08 0.07 0.0? 8. Od 90,063 99. 085, 9.068 9.070 113 BAT/VR, 10,0S0/0e8 SMMTLL, 2 98.006 9.000 90.002 90,043 90.04 90.06 0.07 0.008 9. 90,08! AL LD 90.082 10,083, 90 08 90.007 1. 008 0.8 2. 90.633 90.4 OLE LSS $0.07 90.009 0.043 90.04 90.088 00. Ob 90,007 99, 068 9.09 9.61 ier crus 0.07 9.009 0.04 04 90.008 0. Oh 0.007 $2,008 90.007 9.61 TREATING P 90.046 $0,008 0.043 0.008 90.03 0.06 90.067 00. 008 9.09 0.68 12-3 CARROLL, HATCH & ASSOCIATES INC.§§ ———_—_ WRAMGELL FOREST PROBUCTS LID - ALTERNATE “C* OPERATING PROJECTIONS OPERATING ELPERSES (8 1000's) rem ” n " i] " n S " 9s " TIPPING FEE (9m (922) (3p (eae (826) (9270 (s7e (se (3 (30 LAgOR, 6 PE a7 s77 4207 sam sy 1730 174 27 ral) 1306 PURCH ELECIR § O.07/KMH IS ARED TO GTHER COSTS IN THE ENERGY COST TABLES BELOW FOR ‘SUPPLIMENTAL PURCHASED EXERGY ALRITE MAAC se #33 $33 = veh 18 a se iy UY INSURANCE ” ” ” e ” LY ” ” ” ” REM PROPER ” ” % Ly Ty ss s ss “" “ DIESEL FUEL ne un oi) nz nz uy us m6 us me CHERICAL TR us ty ur wu 8 nu 170 a 122 3s orm OP EE 8738 $770 sms wm ou 1326 su 18 $373 $393 DEPRECIATION 13 873 1s 3 3 srg ws Ls ws ws INTEREST CIP $162 sss see us s120 +1 A] st s a7 TOVML ELPERS sets an" 102 108 1306 16 16 or} 100 ums COST GF DMERGT In S/tum - EXPENSE Basis. 0730 breve SAMMILL, 1 90.085 $0,006 4.006 $0,086 $0,006 0.07 $0,087 $0,086 90.006 90.083 113 BAT/TR, 10, 030/007 7,196,738 SAUTE, 2 10,068 0 $0,060 9.061 0.068 0.068 0.061 9.068 $0,060 90.060 12,390, 000 PUMMERATILL 90,058 $0,039 0.09 90.09 0.09 10.69 0.09 10.09 0.059 10.058 13,076,790 WHOLE LO8 90.058 50.038 0.038 0.8 0.658 0.08 90.058 90.088 $0.038 40.058 13,304,730 ony CiLRS 10.037 0.67 wee 0.08 90.038 0.038 4.8 90.08 90.087 10.087 tb, 90.056 4.036 90.056 10.037 90.037 $0,087 90.087 9.057 $0.036 10.036 VRAMUELL FOREST PROGUCTS LTD - ALICANTE °C° OPERATING PROCTIONS “eta Oe (says) (se ttSeT) eset tateg) tegen) tases) steseen sens iw tas 1” e . ‘ . e e e e 0 sermeciany : 8 8 n n n n n 8 8 , mc, w m en m (8 (120 se ts us am tom Cam we (re (som (sm (S30) (30) (son i] (oon (one en, 1 90.063 0.083 0.007 90,007 on 90.073 90.093 on 10.100 IS 11S BAT/TR, 10, 030/007 SM, 2 0047 4.060 4.06 90.062 90.063 0.064 $0.06 90.067 90.068 90.078 PERIL 8, 047 10,638 1.9 10.068 90.064 0.062 9.004 0.063 90.066 $0,073 wee wl $0,047 48 0.088 0. 90.060 $9,068 90.062 0.063 10.064 0.078 Oey riues 90,047 0.087 90,088 90.90? 90.060 0.068 90.062 90.063 90.068 90.009 ‘TREAT ing P 9,047 4. 0.087 0.08 4.088 WF 0.008 0 $0,062 4.08 AD bh VRMMGELL FOREST PROSUCTS LID > ALTERRATE “3° OPERATING PROJECTIONS OPERATING EXPENSES (8 1000'S) - - rea ” " " " " n ah " s " TIPPING FEE (sn (say (87) (a0 (876) (an (7 (8300 (ss) 3 LABOR, 6 PE se7 707 sur 128 or} $73 $4 our om 136 PURCHASES P ” ” ” ” ” ” ” ” ” ” RAL ET CRAM m mm i" Ly 1. m ” ue $16 2 MOOT Lome, aut 173 $s ro] im 1 132 mu us Dy REL PROPER ss ” 8 m% 3 173 172 170 uy wu OESEL FUEL ne um ou 2 2 ns us we us ne CERCA TR se st m 13 1 1% im 7% 18 $38 TOTAL OPERAT $333 7 13 18 $392 8 a sg as 1% DEPRECIATION sae im im im im im sm om ome sae (TEREST CoP one Nebt iy 1371 ssi 1136 1306 17 a ity Tele EE 81,327 11,306 “278 1,26 11,208 $1,163 UT $1,088 ore 108 Cast GF CERT Ih O/KmR - CIPENBE oneis 20 barerena SILL, 1 HOSE LITRE HOMIES 113 Gan/TR, 10,0s0/000 1,196,298 SMTLL, 21000710103 ISO) OOO teere tasers 12,390,000 LMMERRILL 10.016 nee teeters tert 13,026,290 OLE LOG 10.08h 0.00000 13,904,790 WAV EILRS 10.082 10,008 LOTT 07707 nett tess 16,724,730 IREATIMS P (80.077 90.073 4.078 0.072 0.078 90.067 0.004 0.068 0.087 90.052 . SMOUELL FOREST PROUUCTS LTD ~ ALTERTE “O° OPERATED PemzecT iON Cam Flee TOUR CPE (91,527 (91,306) (91,7 101,206) 80,2080, (90,000) (80,6809 (even) (st008 Un tal a ” e e ‘ e e . , , ‘ OPEC LATE ™m m m m m m m m m m ira, me (30) (=m an a (staa (306) (eos 16655 (7338 Tera Caan F (7368 (1,31) 1,08 (1,3408 (1,008 (1,380) 1,39 11,6070 (1,3070 (1,336) CORT GF CERT In S/cmm - Comm Deis tm wire . aL, 40.105 0.183 0.183 90.187 90.199 0.192 90.19 17 9.107 9.108 11S BAY/TR, 10,¢30/007 mL, 200.088 0.106 ne 0.109 0.118 0.08 oe.13 10.106 ie 0.109 PAMERRILL = 40.033 10.093 1m en OF 90.100 0.108 0.103 0.07 woe MLE Les 10.09 10.083 $0,006 wer 08 0.0 90.079 0.001 4.007 0,067 TREATING P 100d nim 4.078 9.07 90.008 0.081 10.082 0.078 0.078 SEE EE EEE EOE Lee ee. SPe CEE Ee EPEC ELE CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS LTD 1987 COST — CASH BASIS 100 990 80 790 MILLS PER KWH 60 50 5 7 9 11 13 15 17 19 Milltone) ANNUAL CONSUMPTION — KWH PER YEAR + ALTB ag ALTA ° ALT C 4 ALTD WRANGELL FOREST PRODUCTS LTD 1987 COST — EXPENSE BASIS © ee Pe ee ae ere ere ere eee ere eed a Ae peae eeeg eee cease rede ee eee cee wot | | TN PPT TTT ee 3 w+} 1 | | Ie PET Perey yy estes eee ee mee eee eres | eerste eee eet ee (eee ee ene ete ev eee eee | eee eee 3 oof | Lt | PT PIS Tr rT 7 oof | | Tee PISA TTT rT ep ee oe eee eee eee eee eee ee ef eee eet eee ere ele |g) ee eee Eee so | | Pt Peer ott] tf | TRS Re eT 5 7 9 atte 15 17 19 ANNUAL CONSUMPTION — KWH PER YEAR aq ALTA + ALTB ° ALT C 4 ALTD 12-6 CARROLL, HATCH & ASSOCIATES INC. WRANGELL FOREST PRODUCTS LTD 190 1988 COST — CASH BASIS peg CUTLER ETL ITAA MTA RT fe GG OS WEE AD A a NS WR iy TC TC TCS LUC EL Hea EE CETUS TIE PAC eT AT sagt AATEC RTE ET LIVE CTE AAT as ool ILLES PL CEP AT nee MMe seo UL ET MUTA Te sy ICEL TVET TTT ESTE PEGE PEE gE de LTA TET eC DANCES je UTA CT ese Te TEE TT ot See Td Po UOTE Cee AVAL TTL SM es oo Se Te Lee eda So] TM TEL eee) gee ere TOT SLT SST ATMA Cg LOG ATLA eee ee OD PTT 5 7 9 11 13 18 17 19 = ANNUAL consuMeAaa KWH PER YEAR Q ALTA + ALTB o ALT C 4 ALTO WRANGELL FOREST PRODUCTS LTD 1988 COST — EXPENSE BASIS MILLS PER KWH 9 11 13 18 17 19 Millions) ANNUAL CONSUMPTION — KWH PER YEAR + ALTB Q ALTA o ALT C 4 ALTO 127-7 alee ve ee eee ae ee Hees ae ee eee ee Eee eee ee a least ee LLL LET a ET” eee Pel ee ge ever fetbelea eee a ALT D — KWH PER —_ ALT C ) Mitiions 1990 COST — CASH BASIS ANNUAL ae 7 ALT B + WRANGELL FOREST PRODUCTS LTD eek sRe2@5R28 HM Y3d STIIN ALT D * 18 13 lone) 1 1 on — KWH PER ALT C we consums ALT B 1990 COST — EXPENSE BASIS =e | TN ee Be | Ee Eel | |e fe || || le || ee 7 ALTA WRANGELL FOREST PRODUCTS LTD Sk<SSIELSRLSESSEL SRE HM Y3d STUN 12-8 CARROLL, HATCH & ASSOCIATES INC. MILLS PER KWH MILLS PER KWH 200 190 180 170 160 150 140 130 120 110 120 110 WRANGELL FOREST PRODUCTS LTD 1992 COST — CASH BASIS ALTA 9 1 13 18 17 19 Millions ANNUAL CONSUMPTION — KWH PER YEAR + ALTSB °o ALT C . & ATO WRANGELL FOREST PRODUCTS LTD 1992 COST — EXPENSE BASIS 9 11 13 18 17 19 Millfone) ANNUAL CONSUMPTION — KWH PER YEAR + ALTSB °o ALT CO 4 ATO 197.9 ae HATCH & ASSOCIATES INC. ee WRANGELL FOREST PRODUCTS LTD 1995 COST — CASH BASIS il i a if ; | Ba a al ean a a PU LT ne MILLS PER KWH Ly | Evan CCRC Cae rea JCC a i | i a A 5 7 9 1 13 18 17 {Miltone) ANNUAL CONSUMPTION — KWH PER + ALTB o ALT C o ag ALTA WRANGELL FOREST PRODUCTS LTD 1995 COST — EXPENSE BASIS ee ee See ee Pt EAT PPP = HRS MILLS PER KWH 17-1nN CARROLL, HATCH & ASSOCIATES [NC . TROGEVATP TONS In general, the higher the energy consumption, the lower the energy cost. At the highest end of the energy consumption scale the most capital intensive alternative, D, is less than the cost of purchasing power from the city. Alternative A Under this operating plan those costs associated with operating the boiler system are combined with the cost to purchase all power from the city. The price of energy trom the city is forecast at $ U0.07/KWH. This price is projected to be constant for the 10 year period. (It should be noted that these projections are assumptions yet to be contirmed from the Alaska Power Authority via the city of Wrangell.) The curve resulting from projecting this alternative is relatively flat. If, indeed, the cost of power was escalated due to inflation, the curve would be flat indicating a constant high energy cost. Alternative A is the least capital intensive, but it is the highest cost alternative when larger amounts of energy are needed. a Alternative B Alternative B holds a considerable advantage over the other alternatives throughout the 10 years on both an expense and a cash basis. Without question, alternative B comes up on both the expense and cash bases as the least costly way to proceed. This alternative assumed continued operation in the manner that the mill is now operated. When additonal power is required for expansion, that power is to be purchased from the city. The main negative considerations in alternative B are the viability of the existing burner/boiler and the lack of ability to develop process steam for future needs. There is little likelihood that the burner will ever be brought into air quality compliance without spending a comsiderable amount of capital. Future steam needs can be put off until the time they are required but the alternatives available then will be costly to build and operate. ALTERNATIVE C Alternative C offers some very interesting considerations. On an expense basis alternative C is a very competitive, second least costly method of proceeding. On a cash flow basis this alternative is not quite as competitive due to the fact that the capital debt must be repaid. 13-2 CARAOLLU HATCH S ASSOCIATES ING. as eee This alternative addresses the problem of tuture proces: steam needs. It has both the capacity to provide steam to drive the existing turbine as well as capacity tor present and future process needs. ALTERNATIVE D This alternative provides the company “energy independence”. It is, however, independence at a price. The cost of power under D becomes competitive at only the higher levels of consumption. Alternative D could bcome very competitive (and probably the preferred way to proceed) if the city of Wrangell would purchase power from WFP at times when the mill did not need the capacity of the turbo generator. For example, operating at 80% “up time", the system could produce over 29,000,000 KWH/YR. The plant should consume a maximum of slightly over 17 million KWH’s. That leaves 12,000,000 KWH’s to sell. At a price of 3% 0.05/KWH the revenue would be $ 600,000/YR. The cost of additional wood fuel would have to be deducted. The net revenue should be over half million dollars a year. The impact of that revenue would favorably change the complexion of alternative D drastically. COURSE OF ACTION Which alternative is the proper one? WFP must project with as much certainty as possible, the facilities that they will build and operate. This forecast will yield the amount of energy they expect to consume. At that level of consumption the relative costs can be considered. Along with other consideratons, i.e. need for process steam, the proper choice can be made. 13-3 waa FREice. NO. E.1.1/4010 2233 SW CANYON ROAO M E | - Cruancron, INC. alec 97201-2499 ENGINEERS AND SCIENTISTS solving proviems in MATERIALS ENVIRONMENT INDUSTRIAL PRODUCTS ANO PROCESSES TO: Carroll Hatch & Associates CLIENT NO.: Attention: John Vranizan P.O. Box 8583 REFERENCE NO.: 5009048 Portland, OR 97207 DATE: 12 Mar 1985 SUBJECT: HEAT CONTENT AND CHEMICAL TESTS ON WOOD SAMPLES RECEIVED 1 MARCH 1985 Sample Identification Spruce Hemlock Analysis Sawdust Bark Bark Moisture, percent (as received) 71.1 65.6 ~ *Calorific value, BTU/1b (as received) 2424 3716 3200 7 f (dry basis) 8390 8370 9300 Ash, percent (as received) 0.35 2.53 1.34 7 7 (dry basis) 3.9 Chlorine, percent (as received) 0.14 0.53 0.28 : (dry basis) 0.47 0.80 *Gross or upper heating value. RH: jg 3 copies MEI-Charlton, Inc. + cee gh ct [Eqeut hand Ralph Hudson, P.E. Account Director (A-1) \S A MUTUAL PROTECTION TO THE CLIENT, THE PUBLIC ANO OURSELVES ALL REPORTS ARE SUBMITTED AS THE CONFIDENTIAL PROPERTY OF THE CLIENT NEITHER REPORTS NOR THE LABORATORY NOR ANY MEMGER OF ITS STAFF MAY BE USED IN CONNECTION WITH THE AOVERTISEMENT OR SALE OF ANY PROOUCT WITHOUT WRITTEN AUTHORIZATION L-8 WRANGELL FOREST PRODUCTS LTD. SIT MONTHS OPERATING RESULTS® ® - LOGS WERE GENERALLY STORED FOR MUCH LONGER THAN MORMAL. BARK CONTENT DINISHES WITH AGE. THESE RESULTS WILL ASSUME 202 BARK WAS LOST THAT WILL MOT BE LOST IN THE FUTURE. THE RESULTS WILL BE INCREASED BY 25% TO ESTIMATE MORMAL OPERATION. WONTH DAYS ~ 1984 PER WONTH JULY AUGUST SEPTEMBER OCTOBER MOVEMBER DECEMBER TOTALS FOR SIX MONTHS 4 a 23 20 i TOTAL LUMBER PRODUCTION i) 4,446 4,287 6,189 4,688 4,063 2,524 26197 BARK PRODUCTION DEBARKER BUMDLE LIFT TOTAL BAR iB LOADS/MOMTH CU YD/NO Cu YO/mO PER MONTH PER MONTH 420 CU YO/LD & 18 CU YD/DAY 827 CU FT/CU YD & 22 LB/CU FT 0 1,200 252 39,204 862,488 108 2,160 432 49,988 1,539,648 103 2,080 a4 46,798 1,469,556 134 2,680 450 84,510 1,859,220 “9 1,380 30 46,980 1,033,560 35 700 198 24,246 533,412 7,297,884 AVERAGE YIELD OF BARK FOR FUEL PER 1,000 BOARD BARK LB/MFB 194 339 237 397 254 ut 279 XTON3dd¥ u8u "APPENDIX C™ etd seals eect 45> 2ns vee SSE rat OF THE a€ik Sun 408 TUE ath THU FRI gae can ce a4 is 34 S4 is ia F Ph o4 ca 54 24 ft : : ' ; 4 4 ees i 4 3 $ + 7 } SHIFT One POWER GENERATION 7 15 1 3 $3 13 : i SMTFT/ Day FOWER SENERATION 4 22 22 ze 22 2 3 CMY KELHS CONTINUOUS POWER GENERATION 3 8 3 3 3 3 5 PROCESS NEEDS 48 48 48 43 43 43 48 TREATING PLANT CONT ENUOUS POWER SEMERATION 13 iD 13 i3 13 it 13 PROCESS NEEDS ? 7 ? ; 7 . 7 TOTAL NEEDS - SawMILL 1 SHIFT/DAY 120 202 202 202 202 202 AY WEEKLY FUEL NEEDS 1,250 27 274 7 12 TOTAL NEEDS - SAWMILL 2 SHIFT/DAY 120 274 ro oS > WEEKLY FUEL NEEDS 1,610 C-1 seattle Lo gall. Ar 2 SHIFT. 3A enasé! chiFT Day DLANER SHANINGS i SHIST/SAY BRAK & SINES TITSL FRGDUCTION - SAWNILL { SHIFT/DAY WEEKLY FUEL PRODUCTION TETAL PROSUCTION - SAWMILL 2 SHIFT/DAY AEEKLY FUEL PRODUCTION uh é Q "APPENDIX C" “08 a4 as bo ow (o do 333 C-2 wy ow se day 737 woe 38 797 ves 238 cas W737 oe PRELIMENARY, BURNER/BOLLER SPECLFICATION The boiler system shal! include: BURNER: The burner shall be capable of combusting “hog fuel" described on the attached “Fuel Analysis". fuel proportions and moisture contents will be: 25% Hemlock Bark @ 66% mcwb 25% Spruce Bark @ 56% mcwb 50% sawdust @ 55% mcwb The composite fuel should be considered 58% mcwb . flog fuel wil! be delivered to the system at a burner surge bin which is to be included as part of the burner system. Fuel containing such a high amount of moisture presonts unique problems. The vendor should be familiar with these problems = and be prepared to recommend methods’ for successtully dealing with this set of circumstances. No particular preference ig intended with-respect to the method of burning as long as the results are successful . It should be understood that success includes developing the heat release required to generate steam required while meeting air emission requirements which at the present time are specified to be 0.1 g/SCF of boiler emission. BOLLER The boiler is to be sized such that it will be capable of developing 60,000 1b steam per hour at 600 psig and 750 °F. The boiler is to meet all applicable codes. Boiler house equipment including feed water system, deaerator tank, to be included. Boiler controls and motor controls for boiler equipment to be included. GENERAL, A description of the boiler house requirments is desired. A brief discussion as to what equipment is required and what equipment is included. Appendix "D" APPENDIX "E" WRANGELL FOREST PRODUCTS, LTD. P.O. Box 621 © Wrangell, Alaska 99929 (907) 874-3371 ) March 24, 1985 Mr. John Vranizan Carrol, Hatch & Associates Inc. P.O. Box 8583 Portland, Oregon 97207 Dear John: On your last visit to Wrangell you asked me for a brief summary of Wrangell Forest Products, Ltd. (W.F.P.). How and when we got started, the nature of our organization and our future plans. So here goes! W.F.P. was formed on April 1, 1984, when Mr. Steve Seley, Jr., of Seley Inc. put together a lease option on the Alaska Lumber and Pulp's Six-Mile sawmill. Mr. Seley assembled a new management staff and the mill began to produce lumber on May 7, 1984, and has continued to operate to date. Simultaneous to the start-up of mill operations, both company and contract logging operations started. When both aspects of our operations are going W.F.P. employs just under two hundred personnel. At the present time we produce rough green lumber, cants, and flitches for export to Pacific Rim countries. Ninety-five percent vlus of our product at this time goes to Japan and Korea. With smaller volumes going to Taiwan and domestic markets. Our future plans are based on continued modification of our plant to enhance its versatility and increase our flexibility of vroduct mix. These plans include the installation of a Planing facility, so that we may vroduce an end use vroduct for both export and domestic customers, a whole log chipper, so that we may maximize the value of our pulp logs and chip by-products, and a treatment plant that would allow us to market processed Railroad ties and timbers. With our present facility and our proposed additions “or the future we hope to continue to be the largest, most modern and most flexible mill in Alaska. Sincerely, Ronald A. Gelbrich . Vice President RAG:me E-1 Sle aie WRANGELL FOREST PRODUCTS LTD. MILL WITH LOG STORAGE AND SCALING YARD. BARK STORAGE BIN IN THE FOREGROUND. BARK RESIDUE COVERS THE GROUND. ‘Wlaamae FORMER LANDFILL FOR BARK AND WOOD RESIDUE. MATERIAL IS BEING OPEN BURNED TO PREPARE SITE FOR OTHER USES. PRESENT WOOD RESIDUE LANDFILL. THE SITE ACCOMODATES BOTH BARK AND WHITE WOOD RESIDUE. THN: a FUEL STORAGE BUILDING, SBE VIEW. vi PRESENT FUEL [S ALL WHITE WOOD. FUEL STORAGE BUILDING, EMD VIEW. CITY OF WRANGELL MUNICIPAL WASTE MILL PULP CHIP BARGE LOADING FACILITY LANDFILL SITE PLANT SITE POWER GENERATION STUDY FOR WRANGELL FOREST PRODUCTS, LTD. 1987 COST — EXPENSE BASIS Pood PT TT Var TT LETT TAr TI TTT PT TY of tH 9 7 5 we eee ee ee ee 1s 17 13. ‘Milton ANNUAL consume WwW 19 e TION © wn PER YEAR o ALT C a ALTO + ALTB Oo ALTA CARROLL, HATCH & ASSOCIATES, INC. AUGUST 7, 1985