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HomeMy WebLinkAboutCOK FY15 AEA Grant Application - Final Version (as of Sep 22 14)Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 1 of 28 7/2/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund Heat Projects only. If your application is for energy projects that will not primarily produce heat, please use the standard application form (see RFA section 1.5). An electronic version of the Request for Applications (RFA) and both application forms are available online at:www.akenergyauthority.org/REFund8.html. If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. If you are applying for grants for more than one project, provide separate application forms for each project. Multiple phases for the same project may be submitted as one application. If you are applying for grant funding for more than one phase of a project, provide milestones and budget for each phase of the project. In order to ensure that grants provide sufficient benefit to the public, AEA may limit recommendations for grants to preliminary development phases in accordance with 3 ACC 107.605(1). If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are completed and funding for an advanced phase is warranted. If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. All applications received will be posted on the Authority web site after final recommendations are made to the legislature. In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information to be kept confidential the applicant must: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40.25 or returned to the applicant upon request. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 2 of 28 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of Kotzebue Type of Entity: Municipality Fiscal Year End 06/30 Tax ID # 92-6001350 Tax Status: For-profit Non-profit X Government ( check one) Date of last financial statement audit: June 30, 2013 Mailing Address P.O. Box 46 Kotzebue, AK 99752 Physical Address 258A 3rd Avenue Kotzebue, Alaska Telephone (907) 442-3401 Fax (907) 442-3742 Email Derek Martin (dmartin@kotzebue.org) 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: Derek Martin Title: City Manager Mailing Address: P.O. Box 46 Kotzebue, AK 99752 Telephone:Fax:Email: (907) 442-3401 (907) 442-3742 Derek Martin (DMartin@Kotzebue.org) 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone:Fax:Email: Michael Cooper (907) 442-3401 (907) 442-3742 mcooper@kotzebue.org Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 3 of 28 7/2/14 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are:(put an X in the appropriate box) ☐An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☒A local government, or ☐A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. ☐1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary.(Indicate by checking the box) ☐1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA).(Indicate by checking the box) ☐1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/vREFund8.html. (Any exceptions should be clearly noted and submitted with the application.)(Indicate by checking the box) ☐1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. If no please describe the nature of the project and who will be the primary beneficiaries.(Indicate yes by checking the box) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 4 of 28 7/2/14 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Kotzebue Paper and Wood Waste to Energy Project 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, street address, or community name. Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance obtaining this information please contact AEA at 907-771-3031. 258 Third Avenue Kotzebue, Alaska 66.897263,-162.592764 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Kotzebue, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐Wind to Heat ☒Biomass or Biofuels ☐Hydro to Heat ☐Solar Thermal ☐Heat Recovery from Existing Sources ☐Heat Pumps ☐Other (Describe)☐ 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction ☐Reconnaissance ☒Final Design and Permitting ☐Feasibility and Conceptual Design ☒Construction Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 5 of 28 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed heat project. The City of Kotzebue has an opportunity to save 31,300 gallons of fuel oil purchase per year, $181,446 per year or $3.6 million over the lifetime of the project at current fuel costs, by diverting a portion of the city’s municipal waste stream and extracting building heat in a waste-to-energy (WTE) heating system. Additional savings of $1.6 million over the lifetime of the project will be realized in avoided landfilling costs. Annual savings to the city are estimated at $264,086 per year. The waste-to-energy system will provide heat for several City of Kotzebue Public Works buildings in a District Heating configuration. Feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and wood materials from the city of Kotzebue waste stream, supplemented as needed by wood pellets. The project will improve the self-sufficiency of the regional hub of the Northwest Arctic Borough, create local jobs, and provide an example to assist other communities in creating beneficial uses for waste. This waste-to-energy system is an immediately implementable project contingent only on securing financing for the project. 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this heat project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) The financial benefits of the project include the following: •Fuel Displacement for City of Kotzebue Public Works Department.City of Kotzebue will see reduced utility costs through avoided purchase of fuel oil. •Avoided Waste Hauling and Landfilling Costs.The project will divert waste products that are currently processed into bales, then transported and disposed at the area’s only landfill. •Avoided Cost of Kotzebue Landfill /Expansion Upgrade.The need to expand the Kotzebue landfill to accept waste can be delayed by reducing the amount waste entering the landfill. The project will conserve landfill space on order of 12,390 cubic yards or 2.55 square acres over its lifetime. The public benefits of the project include the following: •Jobs Creation.Additional workforce will be need to collect and process the wood/paper waste. Costs previously associated with purchasing heating fuel could now go to wages for operation and maintenance staff of the plant. •Local Recycling Program.The project will be developed in conjunction with an aluminum and tin source-separation recycling system. •Self-Sufficient Energy Production.This project will improve the community’s ability to provide locally for its needs, engendering a self-reliant mindset that can translate to a number of other community needs and services. •Pilot Waste-to-Energy Project:There is a significant intangible benefit to application of the project results and lessons learned to other communities in rural Alaska. Waste combustion combined with energy recovery (Waste-to-Energy) has not been accomplished at this scale in rural Alaska. Once constructed this project will be a tangible example of rural-scale waste-to-energy systems for other villages to utilize in managing their own waste issues. Other Benefits to the Alaskan public will also exist. An important benefit of installing the proposed paper/wood energy conversion system would be to reduce the use of imported fossil fuels in the region. This project could help stabilize energy costs and provide long-term socio-economic benefits to businesses and households. Locally produced, affordable energy will empower Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 6 of 28 7/2/14 community residents and may help avert rural to urban migration. This project would also bring many Environmental benefits including reduction of fossil fuel / hydrocarbon use, reduced potential for fuel spills or contamination during transport, storage, or use (thus protecting vital water and subsistence food sources); and reduced carcinogenic emissions from the combustion of fossil fuels. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The City is requesting $2,495,189 in grant funds to implement Phase III and Phase IV of the project, including Final Design, Permitting, Construction, and Commissioning, culminating in successfully operating equipment as a model project for the City. The City of Kotzebue began working on the project in 2010, and has to date contributed significant time and effort in project development and garnering widespread community support for its implementation. The City is also prepared to contribute $125,000 as matching funds in a combination of in-kind and cash for equipment purchases: 1. City will make the land available (80X100 lot appraises at $40,000). The full lot is roughly 100X140 which at going land values equates to $80-90,000 in-kind. Conservatively, $75,000 is used for cost budgeting. 2. City will purchase additional carts for source separation and collection of project feedstock ($30,000). 3. City will contribute in-kind labor ($20,000). The total project budget of $2,620,189 has been developed and refined through multiple iterations of cost estimating. A quote for project equipment by technology supplier Blue Flame Stoker is supplied in Appendix E, as well as an equipment delivery quote to Kotzebue by Linden Transportation. In addition, project consultant Tetra Tech reviewed existing documentation and provided professional engineering and cost estimating support for the development of the project budget, also included in Appendix E. 2.7 COST AND BENEFIT SUMMARY Summarize the grant request and the project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 2,495,189 2.7.2 Cash match to be provided $ 30,000 2.7.3 In-kind match to be provided $ 95,000 2.7.4 Other grant funds to be provided $ 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 2,620,189 Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 7 of 28 7/2/14 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 2.7.7 Biomass or Biofuel Inventory on hand $ 0 2.7.8 Energy efficiency improvements to buildings to be heated (upgraded within the past 5 years or committed prior to proposed project completion) $ $125,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.9 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $2,692,700 (includes work previously conducted) 2.7.10 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 40,000 (Grant Request for Operations Equipment, $24,920 for reporting) 2.7.11 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $ Project Lifetime fuel savings of $3,628,922 using current fuel oil pricing ($5.797/gal). AEA Financial Model lifetime NPV benefit of $3,732,080 (model included as attachment to application) 2.7.12 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $Avoided Landfilling costs $1,652,000 over lifetime of project. SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant anticipates project management assistance from AEA or another government entity, state that in this section. The City of Kotzebue will provide overall project management and oversight. Charlie Nelson, Capital Projects Manager, will take the lead role as project manager. Mr. Nelson has overseen the development of 39 single family residential units within the NWAB region in the last five (5) years, utilizing the force account construction method, in his previous employment with the Northwest Inupiat Housing Authority. These projects totaled over $12 million utilizing state and Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 8 of 28 7/2/14 federal grant funds (primarily HUD & AHFC monies). Mr. Nelson will be the primary point of contact with the yet to be selected contractor for the proposed project. 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Engineering Phase (III) Schedule: 1. Project scoping and contractor solicitation completed 7/1/2015 8/15/2015 Develop & ConfirmProject Scope 7/1/2015 7/15/2015 Solicit RFPfor Engineering Contractor 7/15/2015 8/15/2015 Negotiate and Execute Contractor Agreement 8/15/2015 9/1/2015 2. Permit applications completed 9/1/2015 10/15/2015 Permit Scoping, Site Plan 8/1/2015 9/1/2015 Permit Application Preparation and Submission 9/1/2015 10/11/2015 3. Final environmental assessment and mitigation plans completed 7/15/2015 10/1/2015 ConfirmResource Availability 7/15/2015 9/1/2015 Develop Mitigation Plans (as necessary) 9/1/2015 10/1/2015 4. Resolution of land use, right of way issues 8/1/2015 9/15/2015 Site Survey 8/1/2015 9/1/2015 Geotechnical Evaluation 9/1/2015 9/15/2015 5. Permitting, rights-of-way, site control completed 9/1/2015 11/1/2015 ConfirmLand and Site Plan 9/1/2015 10/1/2015 Obtain Permits 10/1/2015 11/1/2015 6. Final system design completed 9/1/2015 12/31/2015 Process Equipment Engineering 9/1/2015 11/1/2015 Civil /Architectural Engineering 9/1/2015 11/1/2015 Engineering of Interconnect to Existing Energy System 10/1/2015 12/31/2015 7. Final cost estimate completed 11/15/2015 12/15/2015 Complete Cost Estimate 11/15/2015 12/15/2015 8. Updated economic and financial analyses completed 11/15/2015 12/15/2015 Update Economic and Financial Analysis 11/15/2015 12/15/2015 9. Power or heat sale agreements in place 11/15/2015 12/15/2015 ConfirmUtilization and Cost Structure of Produced Energy 11/15/2015 12/15/2015 10. Final business and operational plan completed 11/15/2015 12/31/2015 Develop Business Plan 11/15/2015 12/31/2015 Develop Operations Plan 11/15/2015 12/31/2015 Milestones Tasks Start Date Anticipated Completion Date Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 9 of 28 7/2/14 Construction (Phase IV) Schedule: 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. The City of Kotzebue will use a team of City staff and external consultants. City of Kotzebue staff and their role on this project includes the following: • Derek Martin, City Manager, will act as Project Executive and will maintain ultimate authority programmatically and financially. • Charlie Nelson, City Capital Projects Manager, will be the project manager. Specific duties of the project manager will include the following: • Coordination with City staff for collection of energy and financial data for use in the feasibility report. • Selecting, coordinating, and managing the engineering consultant. • Communicating with Kotzebue residents to ensure that the community is informed. • Keith Greene, Finance Director, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. • Ernie Hyatt, City of Kotzebue Refuse Department Manager and 14 year City Employee, will be a key information source and will help in collection of paper and cardboard waste data. The implementation of the proposed project will be assisted by the following entities: • Engineering consultant. The City of Kotzebue will employ an engineering consultant who will assist in all project milestones. • Construction firm. The City of Kotzebue will select a construction firm who will construct and commission the project. Selection Process for Contractors: The contractor selection will be 1. Design and feasibility requirements completed 1/1/2016 2/1/2016 ConfirmCompletion of Design and Feasibility Requirements 1/1/2016 1/15/2016 ConfirmResource Availability 1/1/2016 2/1/2016 2. Bid documents completed 2/1/2016 3/1/2016 Solicit RFQ for Construction and Installation 2/1/2016 3/1/2016 3. Vendor selected and award in place 3/1/2016 5/1/2016 Negotiate Vendor Contract 3/1/2016 4/1/2016 Construction Plan and Schedule 4/1/2016 5/1/2016 4. Construction 5/1/2016 9/15/2016 Site Grading 5/1/2016 5/20/2016 Buiulding Construction 5/20/2016 7/15/2016 Process Equipment 7/15/2016 8/15/2016 Utility Hook-ups 8/15/2016 9/15/2016 Construction Monitoring 5/1/2016 9/15/2016 Modifications to final design during construction 5/1/2016 9/15/2016 Actively track project costs against the project budget 5/1/2016 9/15/2016 Environmental Monitoring 7/15/2016 9/15/2016 5. Integration and testing 7/15/2016 9/15/2016 Piping and Interconnection to Energy Users 8/15/2016 9/15/2016 Commissioning Plan and Schedule 7/15/2016 9/15/2016 Coordination of conversion, integration, or surplus of existing system 7/15/2016 9/15/2016 7. Final acceptance, commissioning and start-up complete 9/15/2016 10/31/2016 Commisisoning of Equipment - Start up 9/15/2016 10/15/2016 Update business plans and power purchase agreements (as needed) 9/15/2016 10/31/2016 8. Operations reporting * 7/1/2016 10/31/2016 Operations and Reporting Equipment 7/1/2016 10/31/2016 Continuous monitoring to verify and update projections and systemefficiency 10/31/2016 n/a Milestones Tasks Start Date Anticipated Completion Date Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 10 of 28 7/2/14 based upon technical competency, past performance, written proposal quality, cost, and general consensus from the technical steering committee. The selection of the consultant will occur in strict conformity with municipal procurement policies, conformance with OMB circulars, and DCAA principles. Contractors for this project will be integral to the implementation of this project. The recent feasibility study conducted on behalf of the City of Kotzebue was conducted by Tetra Tech (2012). Tetra Tech is a $2.7B publicly traded firm with 330 offices and 14,000 staff. Tetra Tech has full renewable science and engineering capabilities. Specifically, Tetra Tech offers the industry outstanding resources and assurance in its integrated suite of biomass, bioenergy and waste to energy project capabilities. Tetra Tech has completed more than 150 projects over the last 10 years producing hundreds of megawatts of electricity, millions of cubic feet of natural gas, and billions of BTUs of heat energy, and has significant experience working in Arctic regions including Alaska. 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. The City of Kotzebue has assigned Derek Martin, City Manager as project manager for project who will compile periodic progress reports for use by the Alaska Energy Authority. Monthly project coordination meetings will be held with the project team to track progress and address issues as they arise. 3.5 Project Risk Discuss potential problems and how you would address them. Air Emissions: Emissions from combustion activities are closely scrutinized by public and governmental entities. Tight control of air emissions is essential to gaining and keeping public support. Thus the proposed project will incorporate engineering controls as well as rigorous testing procedures to reduce air emissions. Engineering controls (listed in the Tetra Tech feasibility study) will include computerized controls to optimize combustion ratios while reducing emissions. Per discussions with Patrick Dunn, Division of Air Quality, AK-DEC, the need for a minor source specific air quality permit can be triggered by potential emissions or activity. There is a permit trigger for incinerators. The incinerator throughput threshold for minor source permitting is 1,000 pounds or more per hour (18 AAC 50.502(b)). The first emission thresholds to check for the project are at 18 AAC 50.502(c)(1) for new sources. However, because the throughput of the system planned is less than these thresholds, a minor source permit is not required. Feedstock Supply: Using municipal solid waste as the backbone of an energy supply carries the inherent risk of supply fluctuation. Desired waste production may vary according to season, citizen activity, and chance. In order to combat this, a three stage prevention system has been designed in the system. 1. Waste feedstock will be processed, compressed, and stored long term. This will allow the city to stabilize the variations in feedstock supply. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 11 of 28 7/2/14 2. A supplementary fuel (wood pellets), will be purchased and stored on-site at all times. The proposed system is optimized to combust both waste feedstock and wood pellets. This will allow for operation even if no waste feedstock is available. However, this is unlikely due based upon historical records and expected growth in the foreseeable future. 3. If both the waste feedstock supply and the supplementary wood pellet fuel supply are depleted, the existing fuel oil boilers will remain in place as a backup. This is the least desirable of all alternatives, but it does add a final layer of energy security to the city. Financial Risk: The financial driver for this project is the avoided use of expensive fuel oil in the city’s boilers. In this way, the city will be able to justify their investments by saving money rather than generating a new revenue source. Consequently, the savings realized by this project are tied to the prices of diesel fuel and the supplementary wood pellet feedstock. Little can be done regarding the predictive price of diesel, though it is anticipated that diesel prices will remain the same or increase through the life of this project. Wood pellet prices can be stabilized through the use of long-term purchase agreements. Because wood pellets are a secondary (backup) source, such an agreement will be sought in the latter stages of project development. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit project accounting support. Michael Cooper, City of Kotzebue Finance Director, will provide support in accounting, payables, financial reporting, and capitalization of assets in accordance with AEA guidelines. 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and who will be the primary user of the accounting system. The City of Kotzebue uses Caselle Clarity for its accounting software. 3.8 Financial Management Controls Discuss the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program. The Capital Projects Manager will review and approve all costs associated with the project. Then it will be sent to Accounting for processing. The A/P clerk will prepare the A/P voucher and give to Finance director for approval. The Finance director will review the voucher for unallowable costs before approval. As a final step, the Finance director will review and discuss with city Manager regarding any costs associated with the voucher. Once the city Manager approves, it will then be processed by A/P. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 12 of 28 7/2/14 SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on the project and the funding request is for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available, in the market, to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. The recent feasibility study conducted on behalf of the City of Kotzebue by Tetra Tech (2012) determined that it was technically and financially feasible to capture and utilize waste materials produced by City residents, displacing 31,300 gallons of fuel oil use annually. Each year the waste-to-energy will utilize 320 tons of municipal solid waste (MSW) that would otherwise be disposed of in the local landfill. This is a secure long term feedstock supply for this project as the City owns and operates the landfill. •Waste Biomass Feedstock Source The proposed energy source is biomass derived waste products consisting of: 1) Business and education generated paper. 2) Store generated cardboard shipping waste. 3) Household generated cardboard and paper waste. 4) Construction and residentially generated wood waste (dimensional lumber, pallets, plywood, logs/brush, etc.). •Increased Landfill Life. If the combustible paper/wood waste stream can be diverted to heating purposes the life of the existing landfill can be extended. Presently 75% of the waste being placed at the Kotzebue landfill is biomass derived, combustible waste. The City of Kotzebue landfill is filling at rate that will require construction of additional space in approximately 10-15 years. The cost of increasing the landfill size are unknown but it is likely to far surpass the capital cost of this proposed waste-to- energy project. •Reduced City Heating Fuel Consumption: Less fuel will need to be purchased and stored by the City for water heating purposes. Total energy production of the waste-to-energy system would displace 31,300 gallons of fuel oil each year. Therefore, savings of over 600,000 gallons in fuel costs, equal to $3,628,922 at the current price of fuel, may be achieved over the 20-year project lifespan. •Job Creation: Funds previously used for the purchase of heating fuel for water heating can be diverted to the operations and maintenance of the paper/wood heating system. Several new jobs may be created for the process. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 13 of 28 7/2/14 Processing waste materials is more challenging than processing cord wood or wood chips, two alternative feedstocks. Waste-to-energy system equipment is more advanced and thus more costly than cord-wood boilers. Kotzebue is a coastal city with very limited access to forest and forest products, however, and waste materials are much more available locally and are much less expensive than wood. 4.1.1 For Biomass Project only Identify any wood inventory questions, such as: Ownership/Accessibility. Who owns the land and are their limitations and restrictions to accessing the biomass resource? Inventory data. How much biomass is available on an annual basis and what types (species) are there, if known? Please attach any forest inventory reports The biomass feedstock will be derived from two sources: •Waste Feedstock or Refuse Derived Fuel (RDF): This project will utilize more than 300 tons of refuse derived fuel annually which is composed of paper, cardboard, and wood from the City waste stream. When processed these fiber-based materials mimic densified wood fuels such as pellets. This materials would otherwise be disposed of in the local landfill. This is a secure long term feedstock supply for this project as the City owns and operates the landfill. •Wood Pellets: Wood pellets will be a supplemental feedstock to waste feedstock. All wood pellets/briquettes used for this project will be purchased from external sources. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. Prices are quoted in the range of $300 per delivered ton. All purchased wood will come only from sustainably harvested forests. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Heating Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The proposed system will be a 1.5 MMBTU/hr solid fuel boiler optimized for the feedstocks being utilized. The boiler will provide thermal energy (heating) in a District Energy configuration. This system is designed to replace the existing oil fired boilers used at the city’s Water Treatment Facility and the adjacent Maintenance Shop. These buildings, in total, have used a historical average of 4,302 MM thermal BTU’s per year. The boilers are approximately 20 years old and are nearing the end of their lifespan. 4.2.2 Existing Heating Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. Currently, over 90,000 gallons of fuel oil is purchased by the City of Kotzebue per year to heat City- owned buildings. The total thermal energy demand of these buildings is 26.74 MM Btu/day, or 10,327 MM Btu/year. Heating a select number of buildings on the Public Works campus can Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 14 of 28 7/2/14 reduce city fuel oil purchase by 1/3. Several scenarios have been evaluated, and the proposed waste-to-energy project has been determined to be the primary opportunity for cost savings through biomass energy use for the City of Kotzebue. 4.2.3 Existing Heating Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Currently, 31,300 gallons of fuel oil is purchased by the City of Kotzebue per year to heat the Water Treatment Facility and City Maintenance Shop buildings. At a cost of $5.797 per gallon, this equates to $181,446 per year in fuel costs that can be avoided. The renewable energy source is a significant financial advantage for energy customers. Utilization of waste materials as boiler feedstock will decrease the cities costs associated with landfilling thus presenting a true “win-win” scenario. Pellets are also a much more cost-effective than heating fuel. At current heating fuel prices averaging near $6.00/gallon, it would cost $45.00 for 1 MM Btu of heating value. That same 1 MM Btu of heating value in pellet would cost only $21.50; less than half the price of heating fuel. It therefore makes financial sense to purchase pellets or briquettes, in addition to the environmental benefits of the biomass fuel. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: A description of renewable energy technology specific to project location Optimum installed capacity Anticipated capacity factor Anticipated annual generation Anticipated barriers Basic integration concept Delivery methods The proposed system will be a 1.5 MMBTU/hr solid fuel hydronic boiler optimized to burn the city’s collected wood-based RDF and purchased wood pellets. This system is designed to replace the existing oil fired boilers used at the city’s Water Treatment Facility and the adjacent Maintenance Shop. These buildings, in total, have used a historical average of 4,302 MM thermal BTU’s per year. In the description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. Feedstock Management & Logistics • Feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and wood materials from the city of Kotzebue waste stream. The city’s waste management equipment will be used to collect materials, either as source-separated material from the producers or mixed with the city’s MSW waste stream. RDF fuel will be separated from the waste stream in the Bailer building, possibly in conjunction with an aluminum and tin recycling program. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 15 of 28 7/2/14 • Once sorted, the RDF fuel material is transported to the fuel storage room of the energy plant building, adjacent to the Bailer Building on the Kotzebue Public Works campus. Here, raw RDF is blended to achieve the standard cardboard/paper/wood ratio, then sent through a shredder and briquette unit. • Several 4-6 yard rolling bins will be included in the project capital costs for feedstock management. It is assumed these bins can be moved from the sorting location within the Bailer building to the process building using existing city equipment (e.g., front-end loaders, skid-steer, etc). Energy Generation & Distribution • Sorted, mixed, dried, and densified RDF fuel will likely be manually loaded to a 1-2 day surge hopper. Alternatively, a mechanized ‘walking floor’ system can transition stored fuels into the combustion cycle. Walking floor systems add significant additional cost, and were not deemed necessary for the volume of material needing transport. The surge hopper marks the beginning of the combustion cycle. From here, twin screw augers homogenize and break up densified fuel, metering into the stoker – boiler unit. • The stoker – boiler system will utilize a 3-pass, hydronic hot-water based boiler system, reducing the cost and hazard associated with high-pressure steam. • The working fluid (here, water) is heated at low pressure (15-30 psi) to desired temperature (180 deg C). The water will be metered as needed to the Water Treatment Plant (WTP) and the Maintenance Shop via underground piping, which will enter each building at its boiler room and tie into existing heating distribution systems. Existing diesel boilers are expected to be retained for backup or on-call peak heating needs. Emissions Management • Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the original feedstock, but is dependent on the feedstock, moisture content and the transformational process noted above. Ash produced by the system is expected to be baled with residual MSW and disposed of in the city landfill. • Air Pollution Control (APC) is the final treatment of the gas stream prior to release into the atmosphere. This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment will be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, and electrostatic precipitators. The less-costly cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital expenditure as such. 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. Land sought for project siting is owned by the applicant (City of Kotzebue). 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 16 of 28 7/2/14 List of applicable permits Anticipated permitting timeline Identify and discuss potential barriers It is expected that the proposed system will not be required to obtain a permit for air emissions. Per discussion with DEC personnel and per Alaska regulation 18 AAC 50, a Minor Air Permit is likely to be required. The proposed system will process only 78 pounds per hour on average, and produces only 29 tons of ash per year total. Expected Permitting Requirements for a biomass energy plant includes: • EPA Construction General Permit. • Boiler Permitting and Boiler Operators o Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operator certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating systems. The systems are therefore not exempt. o Alaska Statutes, Sec. 18.60.395 (b) (2) requires a third-class boiler operator’s license for systems up to 3.5 MM Btu/hr, or well within the range of the proposed units. A third-class operator’s license is the least restrictive class of boiler operator license to obtain. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: Threatened or endangered species Habitat issues Wetlands and other protected areas Archaeological and historical resources Land development constraints Telecommunications interference Aviation considerations Visual, aesthetics impacts Identify and discuss other potential barriers Threatened or endangered species, habitat issues, wetlands and other protected areas, Archaeological and historical resources, and Land development constraints are not expected to pose any hindrance to this project. All lands proposed to be used for construction are located within the footprint of previously established industrial facilities, which meet all state and federal requirements in the aforementioned areas of environmental concern. Telecommunications and aviation interference are not anticipated to be an issue. As designed, the in-place air pollution controls will allow stack height (the highest vertical point of the building design) to remain within the bounds of city building ordinances. This will be confirmed during the final design process. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 17 of 28 7/2/14 The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicant’s records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: Total anticipated project cost, and cost for this phase Requested grant funding Applicant matching funds – loans, capital contributions, in-kind Identification of other funding sources Projected capital cost of proposed renewable energy system Projected development cost of proposed renewable energy system Cost estimates for the Process Engineering and Capital Construction phases were provided by consultant Tetra Tech in support of the project. These estimates are included as Appendices. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for any new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of recording the impacts of AEA projects on the communities they serve.) The operation and maintenance costs include the purchase of energy feedstocks and utilities and operation and management labor costs of the facility. These costs are outlined in the Tetra Tech pro-forma analysis (in the project Feasibility Study in the Appendices). All costs for operation and maintenance will be borne by the applicant as part of normal operation of city infrastructure. Labor will be provided from an existing pool of workers. 4.4.3 Heating Purchase/Sale The heat purchase/sale information should include the following: Identification of potential energy buyer(s)/customer(s) Potential heat purchase/sales price - at a minimum indicate a price range Proposed rate of return from grant-funded project Heat generated from the proposed system would be used by the applicant, and thus will not be made available for sale. The primary revenue stream for this project is therefore the avoided costs of energy purchases and disposal of city wastes. At the current cost of $5.797 per gallon, the City of Kotzebue will save $181,446 per year in fuel costs, or $3,628,922 over the life of the project. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below and provide most recent heating fuel invoice that supports the amount identified in “Project Benefits” subpart b below. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 18 of 28 7/2/14 Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. 1,625 tons/year of MSW + 40 tons/year of wood pellets Unit depends on project type (e.g. windspeed, hydropower output,biomass fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other 1 ii. Rated capacity of generators/boilers/other 1.5 MMBtu iii. Generator/boilers/other type Hydronic Boiler iv. Age of generators/boilers/other 20 yrs v. Efficiency of generators/boilers/other 80% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $50,490 per year ii. Annual O&M cost for non-labor $5,329 per year c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu]90,558 as of FY 2014 for all City buildings ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 19 of 28 7/2/14 Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 1.5 MMBtu/hr b) Proposed annual electricity or heat production (fill in as applicable) i.Electricity [kWh] ii.Heat [MMBtu]4,302 MMBtu c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] ii. Coal [tons or MMBtu] iii. Wood or pellets [cords, green tons, dry tons] 40 dry tons/yr (supplemental fuel as needed) iv. Other 320 tons/yr waste feedstock (RDF) Project Cost a) Total capital cost of new system $1,846,606 For Building, equipment, piping, & electrical. b) Development cost $773,583 For site prep, delivery, installation, engineering, permitting, and indirect costs. c) Annual O&M cost of new system $55,819 d) Annual fuel cost 0 Project Benefits a) Amount of fuel displaced for i. Electricity ii. Heat 31,300 iii. Transportation b) Current price of displaced fuel $5.797 per gallon (see Appendix C) c) Other economic benefits $ 1,652,800 (See Sections 2.5 and 5.0) d) Alaska public benefits Multiple (See Sections 2.5 and 5.0) Heat Purchase/Sales Price a) Price for heat purchase/sale N/A Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 20 of 28 7/2/14 Project Analysis a) Basic Economic Analysis Project benefit/cost ratio AEA Financial Model: B/C Ratio 1.55. Tetra Tech Financial Model: ROI 2.6%. Payback (years)17 4.4.5 Impact on Rates Please address the following items related to the proposed location of the heating project. If more than one building will be impacted, please address this information for each building. Building name Kotzebue Water Treatment Facility Maintenance Shop Type or primary usage of the building Water Treatment City vehicle maintenance Location Kotzebue, AK Kotzebue, AK Hours of operation 8-5 pm M-F 8-5 pm M-F Single structure or multiple units Single Single Total square footage 6,862 8,033 Electrical consumption per year None relating to building heat None relating to building heat Heating oil/fuel consumption per year 19,463 gallons Heating Oil 12,310 gallons Heating Oil Average number of occupants 4 3 Has an energy audit been performed? When? Please provide a copy of the energy audit, if applicable. No No Have building thermal energy efficiency upgrades been completed? No No SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project. In order for the applicant to receive credit for heating fuel displaced the applicant must provide the most recent invoice for heating fuel purchased. Anticipated annual revenue (based on i.e. a Proposed Heat Purchase Agreement price, RCA tariff, or cost based rate) Potential additional annual incentives (i.e. tax credits) Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) Discuss the non-economic public benefits to Alaskans over the lifetime of the project Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 21 of 28 7/2/14 Fuel Displacement: 31,300 gallons of fuel oil use will be displaced (avoided) per year by the City of Kotzebue at its Public Works Department campus upon construction of the proposed project. At a cost of $5.797 per gallon as of the 2014 fuel delivery contract (Appendix C), the annual fuel cost savings to the City is $181,446.10. It is expected that fuel prices will continue to increase over time, improving the annual savings for the community year-over-year. **NOTE: The actual contract delivery fuel oil price for the City of Kotzebue is 32% higher than the AEA Financial Model calculated value of $4.37 for 2014. Thus the cost/benefit analysis within the model under-represents the value of fuel savings to the community. Revenue: The heat energy produced by this system will not be made available for public sale. All energy generated will be used internally by the city. Project revenues will be realized in the form of avoided costs to the City and community. The 2 primary sources of avoided costs are: 1. Avoided fuel costs: $181,446/year 2. Avoided landfill disposal and construction costs: $82,640/year Therefore, the total tangible benefit to the City of Kotzebue of $264,086/year of cost avoidance. Avoided landfill disposal costs were calculated using the public benefit calculation guidance provided as an embedded document in the AEA Financial Model “Public Benefit Estimates in Renewable Energy Fund Program Grant Applications Economic Evaluation”. The values are based on reduced waste disposal requirement for the City of Kotzebue due to the waste product being diverted to the proposed Waste-to-Energy system. The avoided ongoing disposal cost is estimated at $102/ton (Source: Fried, Neal, “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011), resulting in a $32,640 annual savings by the City. Additionally, this project will reduce waste sent to the City landfill on order of 12,390 cubic yards or 2.55 square acres of landfill space over the lifetime of the waste-to-energy system. Delay or avoidance of additional construction of this space is conservatively estimated at $1MM, spread lifetime of project. Other Incentives or Revenues: •Jobs Creation:Additional workforce will be need to collect and process the wood/paper waste. Costs previously associated with purchasing the heating fuel could now go to wages for the operation and maintenance of the conversion process. It is anticipated that full-time staff positions will be created by this project. Additional monetary incentives are not anticipated to be captured by the project at present. The AEA Financial Model calculates a reduction of 6,354 tons of CO2 over the lifetime of the project, however the City has no plans to monetize that savings at present. Non-Economic or Community Benefits: •Pilot Waste-to-Energy Project:There is a significant intangible benefit to application of the project results and lessons learned to other communities in rural Alaska. Waste combustion combined with energy recovery (Waste-to-Energy) has not been accomplished at this scale in rural Alaska. Once constructed this project will be a tangible example of rural-scale waste-to-energy systems for other villages to utilize in managing their own waste issues. •Recycling Program.The project will be developed in conjunction with an aluminum and tin source-separation recycling system. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 22 of 28 7/2/14 •Reduced Waste to Landfills: This project will reduce waste sent to landfills on order of 12,390 cubic yards or 2.55 square acres of landfill space over its lifetime. The City of Kotzebue can extend the lifespan of its current landfill cells and push further out the time the funding necessary to construct additional landfill cells. •Long-term socio-economic benefits to businesses and households:Locally produced, affordable energy will empower community residents and may help avert rural to urban migration. This project would have many environmental benefits resulting from a reduction of hydrocarbon use. These benefits include: •Reduced potential for fuel spills or contamination:during transport, storage, or use (thus protecting vital water and subsistence food sources). SECTION 6– SUSTAINABILITY Discuss the operation of the completed project so that it will be sustainable. Include at a minimum: Proposed business structure(s) and concepts that may be considered. How the maintenance and operations of the completed project will be financed for the life of the project Identification of operational issues that could arise. A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation Commitment to reporting the savings and benefits Business Structure and Finance: This project will maintain a high level of financial stability, in part because all energy produced will be used within the city’s existing infrastructure. There will be no sale of products. This means that project success does not hinge upon business partnerships, purchase agreements, or other external arrangement. The primary benefit of this project is to help the city avoid the cost of landfilling waste, and purchasing external fuel oil. Financing of feedstock purchases will be executed with funds previously allocated to the purchase of heating oil. Maintenance will be performed by existing city employees and funded by existing O&M budgets present for the operation of existing fuel oil boilers. The retention of current employees will also give the city the needed expertise to utilize existing boilers as a back-up to the newly installed RDF boiler. Pro-Forma analysis of the newly designed system estimates total administrative and operating expenses for the new system to be $55,819 per year. (Tetra Tech Feasibility Study). Operational Issues: With the installation of any new plant, there is the inherent risk of running into start-up issues. Issues with feedstock inconsistency, boiler optimization, and other difficulties inherent in plant start- up are anticipated. Acclimating existing staff and labor to new tasks and a new system will also take time and training. It is important to note that for this reason, the existing heating system will be left in place as a back- up in order to assure the necessary thermal energy can be provided to the proposed project location. Commitment to Reporting Cost Savings and Benefits: Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 23 of 28 7/2/14 The City of Kotzebue is committed to reporting all savings, benefits, and lessons learned to the AEA. It is the fervent hope of the City that the results from this building project can be used as a case study for similar cities within Alaska that struggle with rising energy costs and energy security. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. In recent years, the City of Kotzebue has explored various means of reducing the amount of waste generated by the community and the amount going to the landfill. This includes: 1) Burning wood waste materials in-situ by the Kotzebue Fire Department. 2) Raising refuse collection fees for commercial customers. 3) City of Kotzebue AEA RE Fund Round II application for conversion of municipal solid waste to electricity with the "TGER" system (not funded). Most recently, Kotzebue has successfully utilized the funds awarded from AEA in 2010 to conduct a feasibility study regarding construction potential of a renewable energy facility. That feasibility study is the basis for data provided in this application. Kotzebue is committed to furthering this project with all due haste, per the terms of City Resolution (Number 15-07) provided as Appendix D. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project.Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2014. The City of Kotzebue has not faced any opposition to the project at this stage of resource identification. This feasibility study and conceptual design project will examine what opposition and support there is for a constructed project. The City of Kotzebue will conduct community meetings in conjunction with the City of Kotzebue recycling Committee to gauge opposition and support of the proposed concept. The City of Kotzebue is committed to ensuring a positive process as well as an effective outcome. SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 24 of 28 7/2/14 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project The project budget included herein is based on actual supplier bids for services and equipment selected for construction of the project. Final vendor selection request for quotation (RFQ) will occur following successful receipt of project funding. A 20% contingency is included to account for variances between budgeted and executed contract pricing. Equipment bids have been supplied by the following vendors (Copies of bids attached as Appendix E): Boiler and Associated Equipment:Blue Flame Stoker Equipment Deliver:Lynden Transport Services Project Engineering Services: Tetra Tech, Inc. Project Construction Services: Tetra Tech, Inc. The City of Kotzebue is fully committed to the project both in terms of securing and providing the necessary capital and in-kind contribution to the project, as well as managing the application of grant funding to top quality equipment and services to ensure a positive process as well as a positive project outcome and successful long-term facility operation. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. The City of Kotzebue is committing to provide annual project reporting data to AEA for ten (10) years following project completion. This reporting will include (1) a detailed description of Project operations and maintenance activities and issues; and (2) a detailed description of Project performance, including energy output, estimated fuel savings resulting from the operation of the Project, and any other relevant measures of Project performance reasonably requested by the Authority, a description of repairs and modifications to the Project, and recommendations for improvements for similar future projects. Project monitoring equipment, including stack Emissions monitoring testing, is included in the project budget and based on information provided by AEA in 2013. Monitoring equipment is expected at a cost of $40,000. The ongoing monitoring and reporting work is also included in project budgeting and is expected to cost $24,920 or approximately $2,500 annually. The City of Kotzebue would be happy to consider continuing to provide annual reporting for the lifetime of the project (beyond the lifetime of the grant funding) depending on the value and the cost of the reporting effort. Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 25 of 28 7/2/14 Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Engineering Phase (III) Budget: RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In- kind/Federal Grants/Other State Grants/Other 1. Project scoping and contractor solicitation completed 8/15/2015 $4,000 $1,000 in-kind $5,000 7/15/2015 8/15/2015 9/1/2015 2. Permit applications completed 10/15/2015 $4,800 $1,200 in-kind $6,000 9/1/2015 10/11/2015 3. Final environmental assessment and mitigation plans completed 10/1/2015 $6,800 $1,700 in-kind $8,500 9/1/2015 10/1/2015 4. Resolution of land use, right of way issues 9/15/2015 $8,000 $2,000 in-kind $10,000 9/1/2015 9/15/2015 5. Permitting, rights-of-way, site control completed 11/1/2015 $12,850 $3,213 in-kind $16,063 10/1/2015 11/1/2015 6. Final system design completed 12/31/2015 $79,813 $7,387 in-kind $87,200 11/1/2015 11/1/2015 12/31/2015 7. Final cost estimate completed 12/15/2015 $3,600 $900 in-kind $4,500 12/15/2015 8. Updated economic and financial analyses completed 12/15/2015 $3,200 $800 in-kind $4,000 12/15/2015 9. Power or heat sale agreements in place 12/15/2015 $400 $100 in-kind $500 12/15/2015 10. Final business and operational plan completed 12/31/2015 $6,800 $1,700 in-kind $8,500 12/31/2015 12/31/2015 TOTALS $130,263 $20,000 $150,263 Direct Labor & Benefits $ $ $30,000 Travel & Per Diem $ $ $22,020 Equipment $ $ $0 Materials & Supplies $ $ $11,043 Contractual Services $ $ $87,200 Construction Services $ $ $0 Other $ $ $0 TOTALS $ $ $150,263 TOTALS Budget Categories: Milestones Anticipated Completion Date Renewable Energy Fund Round VIII Grant Application – Heat Projects AEA 15003 Page 26 of 28 7/2/14 Construction Phase (IV) Budget: RE- Fund Grantee Matching Source of Matching Funds: Grant Funds Funds Cash/In- kind/Federal Grants/Other State Grants/Other 1. Design and feasibility requirements completed 2/1/2016 $15,000 $0 $15,000 1/15/2016 2/1/2016 2. Bid documents completed 3/1/2016 $15,000 $0 $15,000 3/1/2016 3. Vendor selected and award in place 5/1/2016 $420,400 $30,000 cash $450,400 4/1/2016 5/1/2016 4. Construction 9/15/2016 Site Grading 5/20/2016 $28,334 $75,000 in-kind $103,334 Buiulding Construction 7/15/2016 $822,021 $0 $822,021 Process Equipment 8/15/2016 $132,400 $0 $132,400 Utility Hook-ups 9/15/2016 $20,000 $0 $20,000 Construction Monitoring 9/15/2016 $52,800 $0 $52,800 Modifications to final design during construction 9/15/2016 $405,051 $0 $405,051 Actively track project costs against the project budget 9/15/2016 $10,000 $0 $10,000 Environmental Monitoring 9/15/2016 $5,000 $0 $5,000 5. Integration and testing 9/15/2016 $299,000 $0 $299,000 9/15/2016 9/15/2016 9/15/2016 7. Final acceptance, commissioning and start-up complete 10/31/2016 $75,000 $0 $75,000 10/15/2016 10/31/2016 8. Operations reporting * 10/31/2016 Operations and Reporting Equipment 10/31/2016 $40,000 $0 $40,000 Continuous monitoring to verify and update projections and systemefficiency n/a $24,920 $0 $24,920 TOTALS $2,364,926 $105,000 $2,469,926 Direct Labor & Benefits $ $ $128,000 Travel & Per Diem $ $ $70,100 Equipment $ $ $450,400 Materials & Supplies $ $ $682,621 Contractual Services $ $ $389,000 Construction Services $ $ $713,585 Other $ $ $36,220 TOTALS $ $ $2,469,926 TOTALS Budget Categories: Milestones Anticipated Completion Date Appendix Contents Appendix A – Resumes..................................................................................................................................2 A1 – Kotzebue PM and Key Staff...............................................................................................................3 A2 – Tetra Tech.........................................................................................................................................4 Appendix B - Letters of Support....................................................................................................................5 B1 – Northwest Arctic Borough................................................................................................................6 B2 – Native Village of Kotzebue................................................................................................................7 B3 – Maniilaq Association.........................................................................................................................8 B4 – KIC Construction LLC.........................................................................................................................9 B5 – NANA Regional Corporation ...........................................................................................................10 Appendix C – Fuel Invoice...........................................................................................................................11 Appendix D - Governing Body Resolution...................................................................................................12 Appendix E - Supporting Documentation – Equipment and Services Quotations......................................13 E1 – Equipment Quotation – Blue Flame Stoker ....................................................................................14 E2 – Engineering Cost Estimate - Tetra Tech..........................................................................................15 E3 – Construction Cost Estimate - Tetra Tech.........................................................................................16 E4 – Shipping Quotation, Linden Transportation ...................................................................................17 Appendix F – Feasibility Study ....................................................................................................................18 Appendix B - Letters of Support B1 – Northwest Arctic Borough B2 – Native Village of Kotzebue B3 – Maniilaq Association B4 – KIC Construction LLC B5 – NANA Regional Corporation Appendix C – Fuel Invoice Appendix D - Governing Body Resolution Appendix E - Supporting Documentation – Equipment and Services Quotations E1 – Equipment Quotation – Blue Flame Stoker BIOMASS HEATING RFP PROPOSAL DATE: October 15, 2012 CUSTOMER: Tetra Tech QUOTATION No. 121015 For the Attention of: Mr. Jeff Coombe System Capacity 1,500,000 Btu/Hr Boiler Type Type “C” Hot Water 30Psig Stoker Chain Grate design – full modulation 200-135 Innovation Drive, Winnipeg, MB R3T 1G0 Phone: 204•803•8209 Fax: 204•284•5096 Email info@blueflamestoker.com Confidential Information THIS DOCUMENT DISCLOSES PROPRIETARY INFORMATION BELONGING TOSTURGEON CREEK WELDING INC . IT MAY NOT BE REPRODUCED OR DISCLOSED WITHOUT WRITTEN PERMISSION, AND IS NOT TO BE USED IN ANY WAY DETRIMENTAL TO THE INTEREST OFSTURGEON CREEK WELDING INC. Page 2 1. GENERAL INFORMATION 1.1. CONSIDERATIONS This proposal is based on the information that was presented by Mr. Jeff Coombe – during a phone call conversation. 1.2. TECHNICAL DATA OF THE PROPOSED FUEL  Fuel material under consideration: o Bulk Fuel  MSW – wood residue and paper residue mixture o Compressed fuel consisting of the wood and paper residue  Moisture content of wood fuel – Maximum 30% - Minimum 10%;  Particle size not to exceed 2” for wood and paper residue;  Fuel energy value – assumed 7,500 Btu/Lb;  Density of the fuel supplied: o 13 Lbs/Ft^3 – assumed for wood and paper residue;  Desired fuel storage capacity – 3 days – based on the maximum firing rate; 2. EQUIPMENT SPECIFICATIONS 2.1. EQUIPMENT LISTING Under this proposal, our company will provide following equipment :  Type “C” 3-Pass Boiler with rated capacity of 45 BHP (1,500,000 Btu/Hr) - net output  Moving grate (chain grate) stoker system  Multi-screw fuel feed system c/w surge hoper  Complete Automated Ash removal system  Ash storage bin (approx. 40Ft^3 storage capacity)  Fuel storage surge bin – for 8 hrs burn time  Primary combustion fans, air ducts and damper control  Secondary combustion fans and air ducts  Multi Cyclone Fly Ash collector and fly ash removal and storage  Draft Induced Fan c/w exhaust duct (excluding chimney)  Oxygen sensor  Control panel (please see section n 3.2 for detailed listing)  Touch Screen operator interface  Differential pressure transmitter 4-20mA  Type «K» thermocouple with convertor 4-20mA  4 Variable Frequency Drives (VFD) for fans  Boiler support equipment  High and low water level control  Low level cut off  High water temperature shut off  Safety valve – pressure relief valve(s)  Supply water isolation valve  Boiler drain valve Not included in the proposal are the following: o Unloading of the equipment at the customer’s site o Electrical Main Power input 208/3/60 and electrical connection to stoker control panel o Electrical materials and labour required to complete the connections o Mechanical installation of the system o Fresh water supply to the boiler room o Compressed air supply o Connection between supply valve of the boiler and piping network o Any permits required by local authorities Page 3 2.2. BOILER Type “C” Style, low pressure boiler rated for 30 Psig water pressure (other pressures and steam boilers are available). Supplied boiler is a brand new boiler firebox, three-pass style boiler. Three-pass boilers are designed and constructed to the ASME boiler code. Type “C” 3-Pass boilers provide large combustion volume and are designed for maximum heat recovery and efficiency. Supplied boiler horsepower will be rated for 45BHP (1,500,000 BTU/Hr) net output capacity. 2.3. STOKER The stoker consists of steel base with factory installed chain grate. Stoker chain links are manufactured from a special heat resistant alloy. The chain grate stoker design has a significant advantage over other systems. The system provides a large area of the chain grate that is conservatively designed to assure complete solid fuel combustion. It has been designed to handle hard to burn fuels (agricultural residue) and high moisture fuels (with moisture content up to 50% wet basis). The chain grate design reduces ash fusion problems and clinker formation. The base of the stoker is constructed of 0.250” (or thicker) steel and it is lined with a high temperature insulation and refractory. The refractory lining of the combustion chamber uses high grade, high alumina refractory that combined with high density insulation, significantly reduces heat losses from the combustion chamber. The combustion chamber has been designed to provide required amount of air and turbulence to provide complete combustion of the fuel and same reducing the emissions. The primary combustion air consists of multi-zoned under-fire air plenums. Each plenum has an external damper that allows for precise combustion air control. It allows for directing more combustion air where combustion takes place and les s air further away from the fire zone. The total volume of under-fire air (primary combustion air) is precisely metered by a Combustion Air Fan powered by a Variable Speed Drive. The amount of combustion air is a function of the power demanded by the boiler control system. Included, as part of the stoker, is modulating-feed rate control system (fuel handling). Maximum feed rate, for the proposed stoker, is 1,875,000 BTU/HR (based on 75Lbs of wood residue (or other fuel) per FT² of stoker grate and burning wood with the caloric value of minimum 4,500 Btu/Lb. 2.4. FUEL HANDLING We will provide VFD driven fuel-metering system – multi screw for loose biomass or twin screw fuel feed system for densified biomass. The loose biomass feed system consists only of the multi screw feeder and surge hopper. The multi-screw feed system is mounted directly onto the stoker with a surge hopper mounted onto the multi-screw feed system. Unless otherwise arranged, the customer is responsible for the fuel delivery to the surge hopper. The multi-screw feed system feeds biomass fuel onto the chain grate. The fuel feed rate is driven by variable speed controller. The chain grate is variable speed to enable complete fuel combustion. Ash is collected (in the hopper) at the end of the chain, where is removed automatically. Fuel (example) Wood and paper residue Moisture of the fuel 15% Wet Basis Density of the fuel 13Lbs/Ft^3 Size of the fuel Minus 2 inches System Net Output Capacity 45BHP (1,500,000 Btu/Hr) Max. Fuel Feed Rate (MFFR) (approx.) Lbs/Hr 250 Page 4 2.5. ASH HANDLING The system shall incorporate automated ash removal as follows. Each of the combustion air plenums is equipped with ash removal auger that drops off the ashes onto the transfer-auger and further onto the cross auger (main ash removal). The cross auger shall be factory installed into the stoker base. Ash will drop off the end of the moving chain grate onto the cross auger. The cross auger will then transport ash out of the base automatically. (Depending on the system layout and additional ash transfer auger may be required). The ash augering system is powered by the hydraulic system and is controlled automatically from the supplied electrical control panel. The additional ash auger is powered by electric gear box. 2.6. SOOT BLASTERS The soot blower system is factory installed into the boiler. The function of the soot blower is to eliminate any soot build-up within the boiler tubes, thus increasing its heat recovery efficiency. Included is an automatic soot blower control. PLC controlled soot blower is programmed to blow the tubes at predetermined intervals, guaranteeing a maximum tube heat recovery 24 hrs a day. The timed cycle (user selectable) allows each tube to be cleaned at least once in 24 Hrs period. Compressed air (min. 40SCFM at 100PSIG) is required for proper operation of the soot blower system. 2.7. FLY ASH COLLECTION Dust collection system. The dust collection system is a mechanical dust collector (multi-cyclone) system that is designed to remove up to 90% of the fly ash from the exhaust air stream. The supplied dust collector is equipped with air lock and ash removal auger and elbow connection between the dust collector and chimney. Expected emissions will be below 150 mg/m^3. 2.8. INDUCED DRAFT FAN Included is an Induced Draft Fan (ID Fan). A radial blade design, rated for high temperatu re operation, c/w TEFC, high efficiency motor. The function of the ID Fan is to create a negative pressure inside the combustion chamber. The fan is coupled with the Fly Ash Collector. The ID Fan pulls the exhaust air from the combustion chamber through the boiler and multi-cyclone fly ash collector and exhausts it through the Chimney that extends approx. 30ft above the floor level. 2.9. CHIMNEY - optional If purchased - supplied chimney will be pressure rated, Stainless Steel inside and outside. The chimney is lined with 1” thick high temperature insulation and comes with roof flushing and “No Loss” chimney exit section. The “No Loss” chimney section is designed to eliminate any exit losses and at the same time prevent any rain or snow from entering the chimney. The chimney is sized based on the maximum firing rate of the system and to maintain a minimum flue gas exit velocities required. 2.10. HYDRAULICS The equipment is fitted with hydraulics for the operation of chain grate main drive, main ash removal auger and dust collector fly ash removal auger. The hydraulic system consists of 3 HP pump rated at 3 GPM at 1,500 PSIG. 2.11. PNEUMATICS The equipment requires com pressed air approx. 40 SCFM at 100 Psig for the proper operation of the soot blowing system. 5 HP compressors with minimum 200 USG storage tank – is required for proper system operation. The compressor is not supplied with the system. Page 5 3. ELECTRICAL 3.1 ELECTRICAL SPECIFICATION The electrical control equipment is enclosed in a wall-mounted cabinet. Air-cooling fan is fitted into the electrical control cabinet to prevent the cabinet from overheating. The equipment is supplied with a 3- Phase 208V (other voltages available) electrical control panel designed to operate the stoker, fuel feed auger(s), ash removal auger, and combustion air, over-fire air and draft-inducing (exhaust) fan. Electrical panel is PLC controlled, completed with 10” visual user interface for visual function display. The PLC control system will be Allan Bradley, designed to deliver many years of trouble free operation. The PLC is designed to monitor the boiler, stoker, and fuel feed and safety conditions of all integrated components. All fans and fuel metering system are VFD driven. Using VFDs allows the operator to adjust and control the system to obtain the best efficiencies and lowest emissions possible. All wires including earth connections will be separately identified with the same numbers as are shown on the electrical schematic diagrams. The equipment electrics will be to CSA standards. Local approval of the equipment may be required when the equipment is installed at customer location. 3.2 ELECTRICAL COMPONENTS The PLC control will be enclosed in the electrical panel. This will be used to provide control of the main system and other components. A 10” color touch screen m ounted on the electrical enclosure will display all necessary component selections, equipment set-up and program status information. All the system control software is allowing the operator to open and close selected windows as necessary. Components: Touch Screen Control (10” Color) -------------------------------------------------------------- Qty 1 PLC ---------------------------------------------------------------------------------------------------- Qty 1 Panel Enclosure (36”Wx48”Lx8”D) ------------------------------------------------------------ Qty 1 5 HP VFD (exhaust – ID fan) -------------------------------------------------------------------- Qty 1 1.5 HP VFD (combustion air blower) ---------------------------------------------------------- Qty 2 3 HP VFD (over-fire air blower) ----------------------------------------------------------------- Qty 1 1.0 HP VFD (multi-screw auger) ---------------------------------------------------------------- Qty 1 0.5 HP VFD (cyclone air lock) ------------------------------------------------------------------- Qty 1 3 HP hydraulic motor starter --------------------------------------------------------------------- Qty 1 Line Side Reactors --------------------------------------------------------------------------------- Qty 3 60 AMP Disconnect -------------------------------------------------------------------------------- Qty 1 Differential Pressure Sensor --------------------------------------------------------------------- Qty 1 Alarm Buzzer ---------------------------------------------------------------------------------------- Qty 1 Contactors Relays Overloads Hand / Off / Auto Switches 3.3 SYSTEM CONTROL A main switch button will be mounted on the control panel. On the start-up the system will automatically fire at a user pre-set speed. On/Off time and cycle times will be pre-set by the user and stored in the PLC. All motors will have Hand/Off/Auto selectable switches. During a normal system operation all the switches will be in the Auto position. The “Hand” (manual) mode will operate all motors at the pre-set speed. The “Hand” option will also be used during equipment testing and troubleshooting. Page 6 The set-up will be performed via touch screen controller directly connected to the PLC. The touch screen will display all the functions of the system (including alarm status). The set-up screen will be password protected (for authorized personnel only). 3.4 CONTROL FEATURES Type K thermocouple will be used in combination with the temperature controller. Temperature controller will have a PID function with 4-20mA output to control the fuel feed rate, combustion and over-fire air volume (in order to maintain a proper fuel combustion). Photohelic switch will be used to maintain a negative pressure inside the combustion chamber cavity. The switch has a 4-20mA output that controls Exhaust Air blower speed. Hold Fire: Used only during the periods of low heat demand. When the system reaches the set point temperature the system will shut down. If the temperature remains at the set point for a long period of time the system will start up at a pre-set “time intervals” and feed the fuel in order to maintain fire. The “time intervals” are selectable by the user. Alarms: High Priority Alarms (will sound the alarm and shut down the system and will require a manual reset): High Temperature condition Low Temperature condition Low Priority Alarms (will sound an alarm only): Fuel Feed system Jam Motion Detection on the Chain Grate Motion Detection on the Ash Removal Auger 4 SITE CONDITIONS AND MAINS SERVICE SUPPLY Unless otherwise shown, our standard equipment is designed to operate within the following standards and conditions. 4.1 SUPPLY VOLTAGE 208V 3 Phase 60Hz + Earth or as requested and confirmed in the purchase order. 4.2 FOUNDATIONS The equipment must be installed on a stable foundation, depending upon the nature of the sub s oil, a site having at least a 6” depth of concrete 30 Mpa or better c/w 15M rebar spaced 12” on center would normally be adequate. We strongly recommend that you have the site surveyed by a qualified engineer and follow their advice in respect of the construction of the “below floor level” foundation while observing the “floor surface” requirement prescribed by the Floor Plan provided. The equipment is mounted directly onto the floor preferably on housekeeping pad. 5 INSTALLATION AND COMMISSIONING 5.1 SYSTEM ACCEPTANCE Prior to dispatch of the equipment from our shop the equipment will be fully inspected and will undergo a couple days of testing. The proposed tests include:  Correct functioning of the equipment  Safety Review Page 7 5.2 INSTALLATION The customer would be responsible for unloading the equipment, moving to the site, placing on to foundation (housekeeping pad if one is made) installation of the dust collecting system, fuel delivery system and ash removal. The customer would be responsible for making connection of the incoming electrical supply to the main control panel and between the control panel and junction box(s) located on the stoker base. The customer will be responsible for making all the piping network connections to the boiler supply outlet. Our technician will complete the verification of all the mechanical, electrical and electronic checks. 5.3 COMMISSIONING AND FINAL ACCEPTANCE TESTS Our Service Technician will commission the equipment during this time. It is the customer’s responsibility to provide a supply all the necessary components, services of the customer’s Inspection Department and necessary equipment to ensure that the capability of the equipment can be proven without delay to provide an Acceptance Certificate (if required). Our Service Technician will start up the system and verify all the functions of the system during this time. Maximum 3 days on-site visit is allocated for this task. System start-up and commissioning is optional. Page 8 6 INVESTMENT PRICE Price of the basic and standard equipment as detailed above is ONE HUNDRED and FORTY FOUR THOUSAND and TWO HUNDRED CDN dollars each system cost. Item # Description X – included O – optional NA – Not Available Price 1 Type “C” 3-Pass Boiler with rated net output capacity of 45 BHP X 2 Moving Grate (Chain Grate) stoker system X 3 Multi-screw Fuel Feed System c/w surge hoper X 4 Complete Automated Ash Removal System X 5 Ash Storage Bin (40 Ft^3 capacity – 1,250Lbs) X 6 Multi-cyclone fly ash collection system (less than 150mg/m^3) X 7 Flue Gas ducting – between boiler and multi-cyclone X 8 SS Chimney – mounted at the discharge of the multi-cyclone O $4,800 10 PLC – System control panel (208V, 3PH, 60Hz) X 11 Touch Screen User Interface Panel X 12 Compressor (5HP) with 200USG storage tank O $6,200 14 Fuel Storage Options: 14.1 Wood and paper Hydraulic Grate storage system (supply only) O $38,000 14.2 Woodchips fuel transfer system (horizontal and incline augers) O $16,900 15 Loading and shipping cost – estimated cost - TBD O $8,500 16 System start-up, commissioning and Final Acceptance Service O $6,500 17 Operator Training X Net System Cost (Excluding Optional Equipment) CAN$ 144,200.00 Each (This price does not include the system delivery, unloading and installation cost, extra equipment, which is listed and priced separately, or any sales taxes or charges imposed by any governmental authority). Page 9 7 TERMS AND CONDITIONS OF SALE This quotation is made in accordance with the attached Conditions of Sale. 7.1 VALIDITY This quotation remains open for acceptance for a period of 30 days from the date on the front sheet, after which our prices may no longer be valid. Confirmation can be obtained at time of placing order. 7.2 PRICES All prices are as stated in Section 6 of this proposal. 7.3 TERMS OF PAYMENT A deposit of 30% on order, 30% on substantial completion (shop inspection), 35% upon system completion (before shipping), 5% 30 days after successful commissioning and performance test. 7.4 DELIVERY Four (4) months from receipt of order and all relevant engineering information and necessary customer specification, where relevant. Subject to:  Factory workload and to be confirmed prior to order placement.  Return of any specifications sent to the customer for approval. These specifications are to be returned within 21 days. 7.5 WARRANTY (for full warranty coverage please refer to Page 8) Blue Flame Stoker will rectify, free of charge, defects in materials or faults associated with workmanship arising within a period of 12 months from the date of equipment commissioning or 14 months from the date of shipment whichever occurs first. 7.6 CONTRACTUAL CONDITIONS In order that our engineering load can be scheduled accurately to enable the Buyer's required delivery date to be maintained, we require that all necessary technical information be reviewed within 30 days of placing the order. In the event of any changes by the Buyer after the order has been acknowledged, we reserve the right to produce and invoice the machine and equipment to the original specification unless otherwise agreed in writing. Any requested changes will be carried out only after an official amendment to order has been received. Drawings sent to the Buyer for approval must be returned from the Buyer within 14 days of receipt. Failure to do so will result in delay of the equipment. Page 10 APPENDIX A Fuel Storage Option: “WALKING FLOOR SYSTEM” _________________________________________________________________________________ EQUIPMENT SPECIFICATIONS (The following is an outline of all the system components that are required for a proper operation of the system and are part of a package sold). 1: Hydraulic System The Hydraulic System is designed to operate the walking floor. It consists of the following components: - 30 US Gallons Oil Tank; - Hydraulic Pump c/w 7.5 HP, 208V, 3PH TEFC motor; - High Pressure hoses (not exceed 60 ft); - 8’’diam x 20’’ stroke Hydraulic Cylinders, Qty 2; with valves and fittings; 2: Electrical Controls Electrical control panel c/w PLC is designed to operate the Hydraulic System as specified above in conjunction with fuel delivery system. Electrical power connections, control wiring, etc. is customer’s responsibility. 3: Mechanical System The mechanical system consists of the following components: - Two (2) scrapers, approx. dimension 4’-6” wide x 40’-0” ft long; - Scraper assembly braces, Qty 2 for cylinder mount; - Floor channels for scrapers; - “C” scraper mounting brackets; - Fuel horizontal auger: 12” auger x 12’-0” long including gear box; - Fuel delivery incline auger: 12” auger x 20’-0” (to be confirmed) long including gear box; The mechanical system installation is customer’s responsibility. 4: Installation Unless otherwise arranged when ordering, this equipment shall be installed and connected by the customer, who will supply all the necessary material (not listed in this quote) and labour. If desired, we will provide, at customer’s request, the required services at the prevailing hourly rate. Page 11 STURGEON CREEK WELDING INC. LIMITED WARRANTY STURGEON CREEK WELDING warrants to Buyer and the First Commercial Owner or User at the original installation site (“Owner”), for a period of twelve (12) months from the date of initial use o r eighteen (18) months from the original invoice date, that new stoker or new other STURGEON CREEK WELDING manufactured equipment will be free from defects in materials and workmanship. This express warranty covers only those defects of which STURGEON CREEK WELDING is given notice in writing within twelve (12) months from the date of initial use or eighteen (18) months from the original invoice date. STURGEON CREEK WELDING MAKES NO OTHER WARRANTY WITH RESPECT TO THIS EQUIPMENT, AND ANY OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY (INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICUL ARE EXCLUDED AND DISCLAIMED). The exclusive remedy for breach of this warranty is expressly limited to the repair or replacement, within a commercially reasonable time; of any part founder the conditions of normal use and delivered, freight and insurance prepaid by Buyer, to STURGEON CREEK WELDING in Winnipeg, Manitoba. STURGEON CREEK WELDING’s LIABILITY ON ANY CLAIM OF ANY KIND, INCLUDING NEGLIGENCE, FOR ANY LOSS OR DAMAGE ARISING OUT OF, CONNECTED WITH OR RESULTING FROM THE SALE OF ANY STOKER OR OTHER EQUIPMENT, WHETHER NEW OR USED, OR FROM PERFORMANCE OR BREACH OF ANY CONTRACT RELATED TO SUCH SALE, OR FROM THE DESIGN, MANUFACTURE, SALE, RESALE, DELIVERY, INSTALLATION, TECHNICAL DIRECTION OF INSTALLATION, INSPECTION, REPAIR, OPERATION OR USE OF ANY EQUIPMENT FURNISHED BY STURGEON CREEK WELDING, SHALL IN NO CASE EXCEED THE PRICE APPLICABLE TO THE STOKER OR OTHER STURGEON CREEK WELDING MANUFACTURED EQUIPMENT OR PART THEREOF WHICH GIVES RISE TO THE CLAIM. IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT OR WARRANTY OR ALLEGED NEGLIGENCE, SHALL STURGEON CREEK WELDING BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS OR REVENUE, LOSS OF USE OF EQUIPMENT OR ANY ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF CAPITAL, COST OF SUBSTITUTE EQUIPMENT, FACILITIES OR SERVICES, DOWNTIME COSTS, OR CLAIMS OF CUSTOMERS OF BUYER OR OWNER FOR SUCH DAMAGES. This warranty does not cover damage of any nature or kind caused by operation of the stoker or other equipment beyond its rating or by unauthorized use of the stoker or other equipment such as burning of material injurious to the unit, abnormal temperature, improper installation or assembly, improper maintenance or inspection, or improper handling or shipping. This warranty does not cover damage resulting from the operation, cleaning of the stoker or other equipment with any excess amount of ash, soot, fly ash , creosote, scale or other substance that may be corrosive or which prevents proper heat transfer. This warranty does not cover damage caused by inadequate power supply, improper chimney draft or ventilating conditions, improper treatment, lack of fuel, b lown fuses, misuse of equipment, unauthorized alterations to the equipment, reasonable wear and tear or any other causes beyond the control of STURGEON CREEK WELDING. This warranty does not cover labour costs, transportation or travel expenses, or any other costs related to return or reinstallation of the stoker or other equipment or its parts. This warranty is conditional upon the Owner applying adequate and steady, but not excessive, furnace draft as required for proper combustion, and upon adequate vent installation site with proper isolation from exhaust fans and/or power ventilation systems. Warranties for parts, accessories and equipment not manufactured by STURGEON CREEK WELDING are not made by this warranty. Statements made by STURGEON CREEK WELDING sales personnel or by any distributor of STURGEON CREEK WELDING equipment do not constitute warranties. Such statements should not be relied upon by Buyer or Owner and are not part of this sales contract. This document constitutes the final expression of the parties’ agreement with respect to warranties and is a complete and exclusive statement of the terms of that agreement. E2 – Engineering Cost Estimate - Tetra Tech Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220 Tel 412.921.8916 Fax 412.921.40404 www.tetratech.com September 20, 2013 Derek Martin, City Manager City of Kotzebue 258A Third Avenue PO Box 46 Kotzebue, AK 99752 Re:Detail Process Engineering for RDF Waste to Energy Plant BUDGETARY ENGINEERING ESTIMATE Tetra Tech is pleased to provide this proposal for the detailed design of a nominal 1.5 MM Btu/hr capacity Waste-to-Energy Facility to be constructed in Kotzebue, AK. The facility is outlined as Scenario 1 of the Tetra Tech Kotzebue Biomass Feasibility Study dated December 2012, which will combust densified refuse-derived fuel (RDF) in a single chamber boiler to provide thermal energy for heating Public Works campus buildings. Tetra Tech will provide the following: Detailed Engineering Package Develop Purchasing grade Building specification Develop purchasing grade specifications for equipment Foundation Design Design pipe/duct supports Anticipated Drawings: One (1) Process Flow Diagram Two (2) Process Piping & Instrument Diagrams One (1) General Arrangement Plan Drawing Three (3) General Arrangement Sections and Details Drawings Three (3) Foundation Drawings Two (2) Piping Drawings One (1) Electrical Single Line Diagram Two (2) Electrical Connection Drawings One (1) Electrical Grounding Drawing One (1) Lighting Drawing Page 2 Miscellaneous We have included time for three days of safety review meetings in our proposal. We have included time for (2) project meetings in Tetra Tech offices Assumptions Site improvement design and permitting by others Vendors will provide Piping & Instrument Diagrams for their independent systems. Vendors will provide scalable drawings of their systems. (Electronic CAD files preferred). System controls and automation included in vendor package systems. Fire protection system design by others. Bid solicitation and procurement by others We will perform the services noted above for the Budgetary Lump Sum price of $82,400 (eighty two thousand four hundred dollars). Invoicing will be done on a monthly basis with payment due fourteen (14) days after date of invoice. No consideration has been included in this proposal for Tetra Tech to attend any contractor bid meetings or provide any review of the construction activities. We appreciate the opportunity to address your challenging problem and look forward to supporting your needs. Sincerely, Keith W. Henn, PG Vice President, Tetra Tech Bioenergy E3 – Construction Cost Estimate - Tetra Tech Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com September 23, 2013 Derek Martin, City Manager City of Kotzebue 258A Third Avenue PO Box 46 Kotzebue, AK 99752 Subject: Cost Estimate for Construction - RDF Waste to Energy Plant Kotzebue, Alaska Dear City of Kotzebue: In support of your application for Phase IV construction funds under Round VII of the Renewable Energy Grant Fund and Recommendation Program administered by the Alaska Energy Authority (Requests for Grant Applications (RFA) AEA 2014-006), Tetra Tech is pleased to present this engineering analysis and preliminary cost estimate for construction of refuse-derived fuel (RDF) biomass heating systems at the City Public Works Complex. Project Understanding The RDF Waste-to-Energy project consists of a single, stand-alone boiler unit, fueled primarily by waste materials, serving several buildings’ heating needs at the City of Kotzebue Public Works Complex. A comprehensive Feasibility Study was performed in 2012, with positive indications for the technical and financial viability of the project. A list of parameters established in the Feasibility Study (FS) are tabulated in Table 1 below. The new system upgrades are also summarized in Table 1 in accordance with the FS documentation. The fuel for the proposed units is fiber residue (wood, paper, cardboard) sourced from city refuse, supplemented with wood pellets. Cost Estimate for Construction Wood Pellet Boiler Heating Project City of Kotzebue Page 2 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Table 1: System Parameters Facility Logistics RDF Boiler Landfill Diversion (ton/yr)314 Fuel Oil Replaced (gal/yr)31,300 Operators Needed 1 Throughput rate of Feedstock (TPD) 0.94 Storage (cu.yds)195 Ash disposal (ton/year)29 Plant Inputs RDF Boiler Feedstock Type RDF Feedstock Demand (TPD) 0.94 Auxiliary Fuel (gal heating fuel/day)- Feedstock Shortfall (MM BTU/yr) 294 Supplementary Feedstock Type Wood Pellets Supplementary Feedstock (TPY) 40.9 Electrical Inputs Parasitic Load (kWh/ raw ton)2.50 Plant Outputs Scenario 1 System Parameters Output Type Thermal - Boiler System Capacity (MM BTU)1.5 Combustion Efficiency* 77% System Efficiency** System Outputs (Average) Hot Water (MM BTU/hr) 0.39 Hot Water (MM BTU/yr)3,135 Ash (lbs/day) 160 Other Inert Material (lbs/day)- Cost Estimate for Construction Wood Pellet Boiler Heating Project City of Kotzebue Page 3 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Construction Cost Estimate An engineering construction cost estimate was developed for the project. Detailed line-item breakdown for each project equipment, along with the source of the information, is included below. Table 2: City of Kotzebue Waste-to-Energy Project Construction Cost Estimate TASK UNIT QTY UNIT $ TOTAL BASIS OF ESTIMATE 1 Site Prep $103,334 RS Means median price with 10% location factor. Assumes that craft labor and material available from local sources. 1.1 Secure Land LS 1 $75,000.00 $75,000 1.2 Environmental Site Survey LS 1 $15,000.00 $15,000 1.3 Fine Grade SY 467 $2.00 $934 1.4 Gravel Base CY 200 $62.00 $12,400 2 Alaskan Slab $190,621 RS Means median price with 10% location factor. Assumes that craft labor and material available from local sources. 2.1 Insulation SF 4100 $2.00 $8,200 2.2 Forms LF 280 $14.00 $3,920 2.3 Rebar TN 12 $2,833.00 $33,996 2.4 Concrete CY 215 $257.00 $55,255 2.5 Thermo-pilings LS 1 $87,200.00 $87,200 Manufacture Estimate - Arctic Foundations, Inc. (12 loop Sloping Evap) 2.6 Finish SF 4100 $0.50 $2,050 3 Building Shell and MEP $631,400 RS Means median price with 10% location factor. Assumes that craft labor and material available from local sources. 3.1 Insulated Metal Building 25' ht FT^2 4,100 $120 $492,000 3.2 Mechanical SF 4100 $11.00 $45,100 3.3 Electrical SF 4100 $14.00 $57,400 3.4 Plumbing SF 4100 $0.00 $0 3.5 Sprinklers SF 4100 $9.00 $36,900 4 Site Utilities $20,000 4.1 Electrical / Coms LS 1 $20,000.00 $20,000 200 amp 3 phase 4 wire UG service to existing utility pole 4.2 Water LS 1 $0.00 $0 Assume water available adjacent to site 4.3 Sewage LS 1 $0.00 $0 Assume sewer available adjacent to site 5 Process Equipment Installation $132,400 5.1 Set Equipment LS 1 $61,200.00 $61,200 Assume 20 days effort for millright crew and misc material 5.2 Mechanical Connections LS 1 $35,600.00 $35,600 Assume 10 days effort for mechanical crew and misc material 5.3 Electrical Connections LS 1 $35,600.00 $35,600 Assume 10 days effort for electrical crew and misc material 6 Process Equipment Purchase $450,400 6.1 Briquetter LS 1 $60,000.00 $60,000 Manufacturer Quotation - Blue Flame Stoker 6.2 Shredder LS 1 $40,000.00 $40,000 Manufacturer Quotation - Blue Flame Stoker 6.3 Boiler LS 1 $250,000.00 $250,000 Manufacturer Quotation - Blue Flame Stoker 6.4 Fork Trucks LS 1 $30,000 $30,000 Consutant Estimate - 2-ton fork truck 6.5 Feedstock Storage Bins LS 4 $4,000 $16,000 Industry Standard - 3-yd bins ea. 6.6 Conveyance System LS 1 $17,000 $17,000 Manufacture Quotation 6.7 Air Pollution Control LS 1 $37,400 $37,400 Consultant Estimate 7 Heating System Interconnection $299,000 7.1 Underground piping to buildings FT 500 $374.00 $187,000 Consultant Estimate 7.2 Interconnection to buildings LS 2 $56,000.00 $112,000 Consultant Estimate 8 Professional Staff Month 5 $39,620 $198,100 8.1 Project Manager Day 5 $960.00 $4,800 8.2 Site Superintendent Day 22 $800.00 $17,600 8.3 Project Services (Back Office) Day 5 $640.00 $3,200 8.4 Per Diem Day 30 $334.00 $10,020 Outside CONUS rate for location listed by DOD 8.5 Travel Trip 2 $2,000.00 $4,000 Subtotal $2,025,255 Contingency 20% $405,051 TOTAL COST $2,430,306 City of Kotzebue 1.5 MMBTU Waste-to-Energy Boiler Cost Estimate Cost Estimate for Construction Wood Pellet Boiler Heating Project City of Kotzebue Page 4 Tetra Tech, Inc. 661 Andersen Drive, Pittsburgh, PA 15220-2745 Tel 412.921.7090 Fax 412.921.4040 www.tertratech.com Considerations and Assumptions Tetra Tech’s considerations and assumptions are listed below: 1.A refinement of the scope of work including definition of pre-design/design parameters and permits/permit requirements are required in order to provide a firm fixed price proposal to conduct the services noted above. Therefore, the pricing included is an estimation of cost. Confidentiality Statement and Disclaimer The content of this Cost Estimate is not intended for the use of, nor is it intended to be relied upon, by any person, firm, or corporation other than City of Kotzebue. Tetra Tech denies any liability whatsoever to other parties who may obtain access to this Proposal for damages or injury suffered by such third parties arising from the use of this document or the information contained herein. This Proposal is based upon information provided to Tetra Tech by City of Kotzebue. If the items received are flawed or incorrect then cost adjustments may be required. This Quotation is not a formal proposal until additional design parameters and permitting requirements can be determined. Conclusion Tetra Tech is excited about the opportunity to continue to support City of Kotzebue on this Project. We appreciate the opportunity to address your challenging problem and look forward to supporting your needs. Sincerely, Keith W. Henn, PG Vice President, Tetra Tech Bioenergy E4 – Shipping Quotation, Linden Transportation www.lyndentransport.com Rate Estimate Page 18000 INTERNATIONAL BLVD. SUITE 800 SEATTLE, WA 98188 206-575-9578 P. O. BOX 3725 SEATTLE, WA 98124-3725 1-866-596-3368 GCO54 1 of 2 Prepared For: Destination:Phone: PO Number:Fax: Estimated Ship Date:Email: Prepared By: Phone: Date: Origin: Fax: TETRA TECH September 20, 2013 Edmonton,AB,T7X3G7 303 291-6268 Kotzebue AK jeff.coombe@tetratech.com September 17, 2013 Sandra Darke sdarke@lynden.com 780 960-9444 780 962-6377 (LxWxH)Qty UOM DimensionsFreight Description Weight Rate Charge 3,910.00 WINNIPEG TO EDMONTON 20,063.23 OUTBOUND CHARGES FROM ANCHORAGE AK TO KOTZEBUE AK 1 53F 40' x 8' x 8'40,000 6,200.00 40' CONTAINER BOILER EQUIPMENT 2,399.40 "FUEL SURCHARGE"38.7% 30.00 "BORDER CROSS SECURITY FEE" 32,602.63 TOTAL CHARGES: NOTES: US funds Customer reponsible to load at origin Fuel surcharge subject to change Please reference the quote number GCO54 on the bill of laing for this rate to apply Rate is based on commodity weight and dimensions shown Subject to fuel surcharge in effect at time of shipment This estimate has been prepared based on information provided on this date and is valid for 30 days. Charges may differ from those contained herein due to changes in weight, dimensions, description of goods, or requested services. All services are subject to the standard terms and conditions of our tariff (available at www.lynden.com/ltia) and the bill of lading published therein. Any bill of lading or other shipping document issued shall not be effective to the extent it conflicts with our terms and conditions. By shipping with Lynden Transport, Inc., you are acknowledging acceptance of our terms and conditions. www.lyndentransport.com Rate Estimate Page 18000 INTERNATIONAL BLVD. SUITE 800 SEATTLE, WA 98188 206-575-9578 P. O. BOX 3725 SEATTLE, WA 98124-3725 1-866-596-3368 GCO54 1 of 2 www.lyndentransport.com Rate Estimate Page 18000 INTERNATIONAL BLVD. SUITE 800 SEATTLE, WA 98188 206-575-9578 P. O. BOX 3725 SEATTLE, WA 98124-3725 1-866-596-3368 GCO54 2 of 2 Ready to Ship? 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Any bill of lading or other shipping document issued shall not be effective to the extent it conflicts with our terms and conditions. By shipping with Lynden Transport, Inc., you are acknowledging acceptance of our terms and conditions. Appendix F – Feasibility Study SUBMITTED BY: Tetra Tech 310 K St., Ste. 200 Anchorage SUBMITTED BY: Tetra Tech 310 K St., Ste. 200 Anchorage, Alaska SUBMITTED BY: 310 K St., Ste. 200 , Alaska 9950199501 Feasibility Study Mr. keith.henn@tetratech.com City of Kotzebue Biomass Energy Feasibility Study CONTACT: Mr.Keith Henn, PG (412) 921 keith.henn@tetratech.com City of Kotzebue Biomass Energy Feasibility Study Report CONTACT: Keith Henn, PG 412) 921-8398 keith.henn@tetratech.com City of Kotzebue Biomass Energy Report KOTZEBUE BIOMASS i Executive Summary 1 Introduction 1.1 1.2 2 Biomass Feedstock Assessment 2.1 2.2 2.3 2.4 2.5 3 Technology Evaluation 3.1 3.2 3.3 3.4 4 Local Energy Demand and Facility Siting 4.1 4.2 5 Conceptual Engineering Design 5.1 5.2 5.3 5.4 6 Permitting and Environmental Analysis 6.1 6.2 7 Project Financial and Econ 7.1 7.2 7.3 8 Conclusions and Recommendations APPENDIX A APPENDIX B KOTZEBUE BIOMASS Executive Summary Introduction ................................ 1.1 PROJECT 1.2 STUDY AND REPORT ORG Biomass Feedstock Assessment 2.1 MUNICIPAL SOLID WAST 2.2 REFUSE 2.3 MSW ENERGY CONTENT 2.4 CONSTRUCTION AND DEM 2.5 ALTERNATIVE FEEDSTOC Technology Evaluation 3.1 ENERGY GENERATION TE 3.2 ELECTRICITY PRODUCTI 3.3 PRE-PROCESSING AND STORA 3.4 TECHNOLOGY RECOMMEND Local Energy Demand and Facility Siting 4.1 LOCAL FACILITIES AND 4.2 PROJECT SITING ASSES Conceptual Engineering Design 5.1 FACILITY DESCRIPTION 5.2 SCENARIO 1 5.3 SCENARIO 2 5.4 BIOMASS POWER PLANT Permitting and Environmental Analysis 6.1 PERMITTING REQUIREME 6.2 EMISSIONS CONCERNS F Project Financial and Econ 7.1 FACILITY CAPITAL COS 7.2 FINANCIAL MODELING I 7.3 PRO FORMA Conclusions and Recommendations APPENDIX A:LIFE CYCLE COST MODEL PROFORMA APPENDIX B:LIFE CYCLE COST MODEL PROFORMA KOTZEBUE BIOMASS FEASIBILITY STUDY ................................ ................................ PROJECT OVERVIEW STUDY AND REPORT ORG Biomass Feedstock Assessment MUNICIPAL SOLID WAST REFUSE-DERIVED FUEL MSW ENERGY CONTENT CONSTRUCTION AND DEM ALTERNATIVE FEEDSTOC Technology Evaluation ................................ ENERGY GENERATION TE ELECTRICITY PRODUCTI PROCESSING AND STORA TECHNOLOGY RECOMMEND Local Energy Demand and Facility Siting LOCAL FACILITIES AND PROJECT SITING ASSES Conceptual Engineering Design FACILITY DESCRIPTION SCENARIO 1 –RDF BOILER SYSTEM SCENARIO 2 –MSW GASIFIER BIOMASS POWER PLANT Permitting and Environmental Analysis PERMITTING REQUIREME EMISSIONS CONCERNS F Project Financial and Econ FACILITY CAPITAL COS FINANCIAL MODELING I PRO FORMA FINANCIAL MODELING A Conclusions and Recommendations LIFE CYCLE COST MODEL PROFORMA LIFE CYCLE COST MODEL PROFORMA FEASIBILITY STUDY TABLE OF CONTENTS ................................................................ ................................................................ ................................ STUDY AND REPORT ORGANIZATION Biomass Feedstock Assessment ................................ MUNICIPAL SOLID WASTE (MSW) SUPPLY DERIVED FUEL ................................ MSW ENERGY CONTENT ................................ CONSTRUCTION AND DEMOLITION WASTE (C&D) ALTERNATIVE FEEDSTOCK SOURCES ................................ ENERGY GENERATION TECHNOLOGIES ELECTRICITY PRODUCTION................................ PROCESSING AND STORAGE ................................ TECHNOLOGY RECOMMENDATION Local Energy Demand and Facility Siting LOCAL FACILITIES AND ENERGY DEMAND PROJECT SITING ASSESSMENT ................................ Conceptual Engineering Design ................................ FACILITY DESCRIPTIONS ................................ RDF BOILER SYSTEM MSW GASIFIER ................................ BIOMASS POWER PLANT OPERATIONAL CONSIDER Permitting and Environmental Analysis PERMITTING REQUIREMENTS FOR A BIOMASS EN EMISSIONS CONCERNS FROM COMBUSTION AND G Project Financial and Economic Analysis FACILITY CAPITAL COSTS ................................ FINANCIAL MODELING INPUTS AND CONDITIONA FINANCIAL MODELING A Conclusions and Recommendations ................................ LIFE CYCLE COST MODEL PROFORMA LIFE CYCLE COST MODEL PROFORMA FEASIBILITY STUDY TABLE OF CONTENTS ................................ ................................ ................................................................ ANIZATION ................................ ................................ E (MSW) SUPPLY ................................ ................................................................ ................................................................ OLITION WASTE (C&D) K SOURCES ................................ ................................................................ CHNOLOGIES ................................ ................................ ................................ ATION ................................ Local Energy Demand and Facility Siting ................................ ENERGY DEMAND ................................ ................................ ................................ ................................................................ RDF BOILER SYSTEM ................................ ................................ OPERATIONAL CONSIDER Permitting and Environmental Analysis ................................ NTS FOR A BIOMASS EN ROM COMBUSTION AND G omic Analysis ................................ ................................................................ NPUTS AND CONDITIONA FINANCIAL MODELING AND PROJECTED RETURNS ................................ LIFE CYCLE COST MODEL PROFORMA –RDF BOILER LIFE CYCLE COST MODEL PROFORMA –MSW GASIFIER TABLE OF CONTENTS ................................................................ ................................................................ ................................ ................................................................ ................................................................ ................................ ................................ ................................ OLITION WASTE (C&D)................................ ................................................................ ................................ ................................................................ ................................................................ ................................................................ ................................................................ ................................ ................................ ................................................................ ................................................................ ................................ ................................................................ ................................................................ OPERATIONAL CONSIDERATIONS................................ ................................ NTS FOR A BIOMASS ENERGY PLANT ROM COMBUSTION AND GASIFICATION OF WASTE ................................ ................................ NPUTS AND CONDITIONAL ASSUMPTIONS ND PROJECTED RETURNS ................................................................ RDF BOILER SYSTEM MSW GASIFIER SYSTEM ................................ ................................ ................................................................ ................................ ................................ ................................................................ ................................................................ ................................................................ ............................................................ ................................ ............................................................... ................................ ................................................................ ................................ ................................ ................................................................ ................................................................ ........................................................... ................................ ................................................................ ................................ ............................................................ ................................ ................................................................ ERGY PLANT................................ ASIFICATION OF WASTE ................................................................ ................................................................ L ASSUMPTIONS ................................ ND PROJECTED RETURNS ................................ ................................ SYSTEM SYSTEM December 2012 ............................................. ............................................... ........................................... ................................................ ................................................. ......................................... ....................................... .................................... ............................ .................................................. ............................... .............................................. ................................ ....................................................... ................................................... .................................... ......................................... ........................... .................................................. ..................................... ................................................... ............................ ............................................ ..................................... ........................................ ASIFICATION OF WASTES ................ .................................... .................................... ................................ ...................................... ........................................... December 2012 .............ES-1 ...............1-1 ...........1-1 ................1-1 .................2-1 .........2-1 .......2-3 ....2-7 ............................2-8 ..................2-9 ...............................3-1 ..............3-1 .................................3-4 .......................3-6 ...................3-9 ....4-1 .........4-1 ...........................4-5 ..................5-1 .....5-1 ...................5-1 ............................5-7 ............5-10 .....6-1 ........6-1 ................6-3 ....7-1 ....7-1 .................................7-3 ......7-5 ...........8-1 KOTZEBUE BIOMASS ii Figure 2-1: Average U.S. MSW Composition Figure 2-2: Kotzebue Refuse Baler Figure 2-3: Photo of AC Cardboard Bales and Pallets Figure 2-4: Photo of Maniilaq Health Center Waste Stream Figure 2-5: Schematic of Materials Recovery Facility Figure 3-1: Waste Figure 3-2: Adv Figure 3-3: Generalized Decision Chart for MSW Based Energy Systems Figure 3-4: MSW Shredder (Photo Courtesy of UNTHA) Figure 3-5: Wood Shredder (Photo courtesy of Figure 3-6: Biomass Pellets (Source Figure 3-7: MSW Briquettes (Source www.bhsenergy.com) Figure 4-1: Photo of Hillside Area and Site 2 Figure 4-2: Biomass Energy Plant Sites Figure 5-1: Scenario 1 Figure 5-2: Kotzebue Biomass Power Plant Facility Configuration (In Figure 5-3: Scenario 2 Table 2-1: Table 2-2: Kotzebue Municipal Solid Table 3-1: CHP Generation Table 3-2: RDF Storage Pile Volume Comparing Storage Scenarios Table 3-3: Product Parameters Concerning Densification Technologies Table 3-4: Summary of Technology Parameters Table 4-1: Kotzebue Government Building Heatin Table 4-2: Scenario 1 Energy Uses Table 4-3: Kotzebue / KEA Add Table 5-1: Scenario 1 Seasonal Variability Table 5-2: Biomass Energy Plant Operating Parameters Table 5-3: Biomass Energy Plant Inputs and Outputs Table 6-1: Sample Performance Claim for Batch Gasification of MSW Application. Table 7-1: Biomass Pow Table 7-2: Summary Financial Metrics Table 7-3: Results of Baseline Scenario Financial Analysis KOTZEBUE BIOMASS 1: Average U.S. MSW Composition 2: Kotzebue Refuse Baler 3: Photo of AC Cardboard Bales and Pallets 4: Photo of Maniilaq Health Center Waste Stream 5: Schematic of Materials Recovery Facility 1: Waste-to-Energy Conversion Pathways 2: Advanced Combustion 2 3: Generalized Decision Chart for MSW Based Energy Systems 4: MSW Shredder (Photo Courtesy of UNTHA) 5: Wood Shredder (Photo courtesy of 6: Biomass Pellets (Source 7: MSW Briquettes (Source www.bhsenergy.com) 1: Photo of Hillside Area and Site 2 2: Biomass Energy Plant Sites 1: Scenario 1 – 2: Kotzebue Biomass Power Plant Facility Configuration (In 3: Scenario 2 – 1:Kotzebue Municipal Solid Waste (MSW) Composition 2: Kotzebue Municipal Solid 1: CHP Generation 2: RDF Storage Pile Volume Comparing Storage Scenarios 3: Product Parameters Concerning Densification Technologies 4: Summary of Technology Parameters 1: Kotzebue Government Building Heatin 2: Scenario 1 Energy Uses 3: Kotzebue / KEA Add 1: Scenario 1 Seasonal Variability 2: Biomass Energy Plant Operating Parameters 3: Biomass Energy Plant Inputs and Outputs 1: Sample Performance Claim for Batch Gasification of MSW Application. 1: Biomass Pow 2: Summary Financial Metrics 3: Results of Baseline Scenario Financial Analysis KOTZEBUE BIOMASS FEASIBILITY STUDY 1: Average U.S. MSW Composition 2: Kotzebue Refuse Baler ................................ 3: Photo of AC Cardboard Bales and Pallets 4: Photo of Maniilaq Health Center Waste Stream 5: Schematic of Materials Recovery Facility Energy Conversion Pathways anced Combustion 2- 3: Generalized Decision Chart for MSW Based Energy Systems 4: MSW Shredder (Photo Courtesy of UNTHA) 5: Wood Shredder (Photo courtesy of 6: Biomass Pellets (Source 7: MSW Briquettes (Source www.bhsenergy.com) 1: Photo of Hillside Area and Site 2 2: Biomass Energy Plant Sites –RDF Boiler Block Flow Diagram 2: Kotzebue Biomass Power Plant Facility Configuration (In –MSW Gasifier Block Flow Diagram Kotzebue Municipal Solid Waste (MSW) Composition 2: Kotzebue Municipal Solid 1: CHP Generation -Best Case Scenario Analysis 2: RDF Storage Pile Volume Comparing Storage Scenarios 3: Product Parameters Concerning Densification Technologies 4: Summary of Technology Parameters 1: Kotzebue Government Building Heatin 2: Scenario 1 Energy Uses ................................ 3: Kotzebue / KEA Add-Heat System Parameters 1: Scenario 1 Seasonal Variability 2: Biomass Energy Plant Operating Parameters 3: Biomass Energy Plant Inputs and Outputs 1: Sample Performance Claim for Batch Gasification of MSW Application. 1: Biomass Power Plant Capital Cost Estimate 2: Summary Financial Metrics 3: Results of Baseline Scenario Financial Analysis FEASIBILITY STUDY FIGURES 1: Average U.S. MSW Composition ................................ ................................ 3: Photo of AC Cardboard Bales and Pallets 4: Photo of Maniilaq Health Center Waste Stream 5: Schematic of Materials Recovery Facility Energy Conversion Pathways -Stage Process Description 3: Generalized Decision Chart for MSW Based Energy Systems 4: MSW Shredder (Photo Courtesy of UNTHA) 5: Wood Shredder (Photo courtesy of UNTHA) 6: Biomass Pellets (Source www.cleantechloops.com 7: MSW Briquettes (Source www.bhsenergy.com) 1: Photo of Hillside Area and Site 2 ................................ 2: Biomass Energy Plant Sites ................................ RDF Boiler Block Flow Diagram 2: Kotzebue Biomass Power Plant Facility Configuration (In MSW Gasifier Block Flow Diagram Kotzebue Municipal Solid Waste (MSW) Composition 2: Kotzebue Municipal Solid Waste (MSW) Energy Content Best Case Scenario Analysis 2: RDF Storage Pile Volume Comparing Storage Scenarios 3: Product Parameters Concerning Densification Technologies 4: Summary of Technology Parameters ................................ 1: Kotzebue Government Building Heating Demands ................................ Heat System Parameters 1: Scenario 1 Seasonal Variability................................ 2: Biomass Energy Plant Operating Parameters 3: Biomass Energy Plant Inputs and Outputs 1: Sample Performance Claim for Batch Gasification of MSW Application. er Plant Capital Cost Estimate 2: Summary Financial Metrics ................................ 3: Results of Baseline Scenario Financial Analysis FEASIBILITY STUDY FIGURES ................................ ................................................................ 3: Photo of AC Cardboard Bales and Pallets ................................ 4: Photo of Maniilaq Health Center Waste Stream ................................ 5: Schematic of Materials Recovery Facility................................ Energy Conversion Pathways ................................ Stage Process Description 3: Generalized Decision Chart for MSW Based Energy Systems 4: MSW Shredder (Photo Courtesy of UNTHA)................................ UNTHA)................................ www.cleantechloops.com 7: MSW Briquettes (Source www.bhsenergy.com)................................ ................................ ................................................................ RDF Boiler Block Flow Diagram ................................ 2: Kotzebue Biomass Power Plant Facility Configuration (In MSW Gasifier Block Flow Diagram ................................ TABLES Kotzebue Municipal Solid Waste (MSW) Composition Waste (MSW) Energy Content Best Case Scenario Analysis ................................ 2: RDF Storage Pile Volume Comparing Storage Scenarios 3: Product Parameters Concerning Densification Technologies ................................ g Demands ................................ ................................................................ Heat System Parameters................................ ................................................................ 2: Biomass Energy Plant Operating Parameters ................................ 3: Biomass Energy Plant Inputs and Outputs ................................ 1: Sample Performance Claim for Batch Gasification of MSW Application. er Plant Capital Cost Estimate ................................ ................................................................ 3: Results of Baseline Scenario Financial Analysis ................................ ................................................................ ................................ ................................................................ ................................ ................................................................ ................................................................ ................................ 3: Generalized Decision Chart for MSW Based Energy Systems................................ ................................ ................................ www.cleantechloops.com)................................ ................................ ................................................................ ................................ ................................ 2: Kotzebue Biomass Power Plant Facility Configuration (In-Town RDF Plant) ................................ Kotzebue Municipal Solid Waste (MSW) Composition ................................ Waste (MSW) Energy Content ................................ ................................ 2: RDF Storage Pile Volume Comparing Storage Scenarios ................................ 3: Product Parameters Concerning Densification Technologies................................ ................................................................ ................................ ................................ ................................ ................................ ................................ ................................................................ 1: Sample Performance Claim for Batch Gasification of MSW Application. ................................................................ ................................ ................................ ................................................................ ................................................................ ................................ ................................................................ ................................ ................................ ................................................................ ................................ ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ Town RDF Plant)............................. ................................................................ ................................................................ ............................................................. ................................................................ ............................................................... ................................ ........................................................... ................................................................ ................................................................ ................................................................ ................................................................ ................................................................ ................................ 1: Sample Performance Claim for Batch Gasification of MSW Application................................. ................................ ................................................................ ................................................................ December 2012 ................................ ............................................... ................................................... ......................................... .................................................... ...................................................... ................................ ....................................................... .............................................. ............................................... ................................ ........................................ ................................ ........................................ ............................................ ............................. ....................................... ................................ ............................. ............................................. ............................... ........................................................ ........................... ................................ ............................................... ............................................. ................................ .......................................... .............................................. ................................ .............................................. ...................................... ......................................... December 2012 ................................1 ...............2 ...................4 .........5 ....................6 ......................1 ..................................... .......................5 ..............7 ...............7 .................................8 ........8 ................................7 ........9 ............5-5 .............................5-6 .......5-9 .................................2 .............................8 .............5 ...............................6 ........................8 ...........................9 ......................................2 ...............3 .............4 .................................5-3 ..........5-11 ..............5-11 ...................................6-4 ..............7-2 ......7-5 .........7-6 KOTZEBUE BIOMASS iii 24/7 APC AC AEA AK DEC BTU C&D CHP DOER EPA EPC EPCRA FIA HAPs IC IRR LHV MCF MW KEA KIC KOTZEBUE MRF MSW KOTZEBUE BIOMASS 24 Hours Per Day, 7 Days Per Week Air Pollution Control Alaska Alaska Energy Authority Alaska Dept. of Environmental Conservation British Thermal Unit construction and demolition Combined Heat and Power Massachusetts Department of Energy Resources Environmental Protection Agency Engineering, Procurement, and Construction Emergency Planning and Community Right USFS Forest Inventory and Analysis National Program Hazardous air pollutants Interconnection Custom Internal Rate of return Lower Heating Value Measured in cubic feet Megawatt Kotzebue Electric Association Kikiktagaruk Inupiat Corporation KOTZEBUE City of Kotzebue materials recovery facility Municipal Solid KOTZEBUE BIOMASS FEASIBILITY STUDY 24 Hours Per Day, 7 Days Per Week Air Pollution Control Alaska commercial company value center Alaska Energy Authority Alaska Dept. of Environmental Conservation British Thermal Unit construction and demolition Combined Heat and Power Massachusetts Department of Energy Resources Environmental Protection Agency Engineering, Procurement, and Construction Emergency Planning and Community Right USFS Forest Inventory and Analysis National Program Hazardous air pollutants Interconnection Custom Internal Rate of return Lower Heating Value easured in cubic feet Megawatt Kotzebue Electric Association Kikiktagaruk Inupiat Corporation City of Kotzebue materials recovery facility Municipal Solid Waste FEASIBILITY STUDY ACRONYMS AND ABBREVIATIONS 24 Hours Per Day, 7 Days Per Week Air Pollution Control commercial company value center Alaska Energy Authority Alaska Dept. of Environmental Conservation British Thermal Unit construction and demolition Combined Heat and Power Massachusetts Department of Energy Resources Environmental Protection Agency Engineering, Procurement, and Construction Emergency Planning and Community Right USFS Forest Inventory and Analysis National Program Hazardous air pollutants Interconnection Customers Internal Rate of return Lower Heating Value easured in cubic feet Kotzebue Electric Association Kikiktagaruk Inupiat Corporation materials recovery facility Waste FEASIBILITY STUDY ACRONYMS AND ABBREVIATIONS 24 Hours Per Day, 7 Days Per Week commercial company value center Alaska Dept. of Environmental Conservation Massachusetts Department of Energy Resources Environmental Protection Agency Engineering, Procurement, and Construction Emergency Planning and Community Right-to-know act USFS Forest Inventory and Analysis National Program ACRONYMS AND ABBREVIATIONS Massachusetts Department of Energy Resources know act USFS Forest Inventory and Analysis National Program December 2012December 2012 KOTZEBUE BIOMASS iv NWI PTE RCRA RDF REC SBA SPEED SQA Syngas T&D TCLP Tetra Tech TPD UCF WTP KOTZEBUE BIOMASS National Wetlands Inventory Potential to Emit Resource Conservation Recovery Act Refuse derived fuels Renewable Energy Credits Small Business Administration Sustainably Priced Energy Development Program Statement Synthetic Gas Fuel Transportation and Delivery Toxicity characteristic leading procedure Tetra Tech Tetra Tech Inc. tons per day University of Central Florida water treatment plant KOTZEBUE BIOMASS FEASIBILITY STUDY National Wetlands Inventory Potential to Emit Resource Conservation Recovery Act Refuse derived fuels Renewable Energy Credits Small Business Administration Sustainably Priced Energy Development Program tatement of qualification application Synthetic Gas Fuel Transportation and Delivery Toxicity characteristic leading procedure Tetra Tech Inc. tons per day University of Central Florida water treatment plant FEASIBILITY STUDY National Wetlands Inventory Resource Conservation Recovery Act Refuse derived fuels Renewable Energy Credits Small Business Administration Sustainably Priced Energy Development Program of qualification application Transportation and Delivery Toxicity characteristic leading procedure University of Central Florida water treatment plant FEASIBILITY STUDY Resource Conservation Recovery Act Sustainably Priced Energy Development Program of qualification application Toxicity characteristic leading procedure Sustainably Priced Energy Development Program December 2012December 2012 KOTZEBUE BIOMASS ES-1 EXECUTIVE SUMMARY PROJECT OVERVIEW The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska Arctic Circle on the Chukchi Sea. waste through construction of a biomass that are advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue owns several and heating of citizens’ water supply, plant and biomass in the form of municipal solid waste (MSW) The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a energy project in Kotzebue. (DOWL) conducted the evaluation. Kotzebue Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste capture, amongst other projects. progressive government approach to locally produced energy. Converting waste to energy are over 100 MSW energy projects operat per year and producing over 26 million megawatt energy per year Community last several decades in response to the rise in basic energy costs, and as process technologies have advanced to manage the mater The State of application compliant with EPA’s Resourc 1 http://wteplants.com/ 2 Colt, et al. “ Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” KOTZEBUE BIOMASS EXECUTIVE SUMMARY PROJECT OVERVIEW The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska Arctic Circle on the Chukchi Sea. waste through construction of a biomass re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue owns several and heating of citizens’ water supply, and reduce the city’s biomass in the form of municipal solid waste (MSW) The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a energy project in Kotzebue. (DOWL) conducted the evaluation. has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste capture, amongst other projects. progressive government approach to locally produced energy. Converting waste to energy are over 100 MSW energy projects operat per year and producing over 26 million megawatt energy per year1. Versions of this technology have been in operation at large sca Community-scale projects, such as those for remote towns last several decades in response to the rise in basic energy costs, and as process technologies have advanced to manage the material inputs and emission outputs associated with MSW. The State of Alaska h pplications.90% of rural compliant with EPA’s Resourc http://wteplants.com/ Colt, et al. “Sustainable Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” KOTZEBUE BIOMASS FEASIBILITY STUDY EXECUTIVE SUMMARY PROJECT OVERVIEW The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska Arctic Circle on the Chukchi Sea.The city is currently reviewing an waste through construction of a biomass re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue owns several and heating of citizens’ water supply, reduce the city’s high energy costs biomass in the form of municipal solid waste (MSW) The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a energy project in Kotzebue.Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM (DOWL) conducted the evaluation. has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste capture, amongst other projects.Therefore, the desire f progressive government approach to locally produced energy. Converting waste to energy, while new to the region, are over 100 MSW energy projects operat per year and producing over 26 million megawatt . Versions of this technology have been in operation at large sca scale projects, such as those for remote towns last several decades in response to the rise in basic energy costs, and as process technologies have advanced ial inputs and emission outputs associated with MSW. as unique intrinsic 90% of rural, remote Alaskan villages dispose of compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards http://wteplants.com/ Sustainable Utilities in Rural Alaska Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” FEASIBILITY STUDY The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska The city is currently reviewing an waste through construction of a biomass-fired energy generation plant. re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue owns several and heating of citizens’ water supply,either or both high energy costs. Kotzebue also has a readily available source of biomass in the form of municipal solid waste (MSW) The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste Therefore, the desire f progressive government approach to locally produced energy. , while new to the region, are over 100 MSW energy projects operating in the world, processing over 40 million metric tonnes of waste per year and producing over 26 million megawatt- . Versions of this technology have been in operation at large sca scale projects, such as those for remote towns last several decades in response to the rise in basic energy costs, and as process technologies have advanced ial inputs and emission outputs associated with MSW. intrinsic characteristics th Alaskan villages dispose of e Conservation and Recovery Act (RCRA) standards Utilities in Rural Alaska Electric, Water, Sewer, Bulk Fuel, Solid Waste. ”University of Alaska Anchorage FEASIBILITY STUDY The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska The city is currently reviewing an fired energy generation plant. re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue owns several government buildings and is responsible for treatment either or both of which could absorb the energy produced by such a . Kotzebue also has a readily available source of biomass in the form of municipal solid waste (MSW)that is currently being disposed in the local landfill The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste Therefore, the desire for renewable energy projects fits well with the progressive government approach to locally produced energy. , while new to the region,is a proven and commercialized technology field. There ing in the world, processing over 40 million metric tonnes of waste -hours (MWh) of electricity and 7.4 million MWh of thermal . Versions of this technology have been in operation at large sca scale projects, such as those for remote towns, and military bases last several decades in response to the rise in basic energy costs, and as process technologies have advanced ial inputs and emission outputs associated with MSW. characteristics that pro Alaskan villages dispose of combustible e Conservation and Recovery Act (RCRA) standards Utilities in Rural Alaska;Effective Management, Maintenance and Operation of University of Alaska Anchorage The City of Kotzebue (Kotzebue) is the regional hub of Northwest Alaska,located roughly 20 miles above the The city is currently reviewing an opportunity to generate energy from fired energy generation plant.Kotzebue re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive government buildings and is responsible for treatment of which could absorb the energy produced by such a . Kotzebue also has a readily available source of currently being disposed in the local landfill The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste or renewable energy projects fits well with the is a proven and commercialized technology field. There ing in the world, processing over 40 million metric tonnes of waste hours (MWh) of electricity and 7.4 million MWh of thermal . Versions of this technology have been in operation at large sca , and military bases last several decades in response to the rise in basic energy costs, and as process technologies have advanced ial inputs and emission outputs associated with MSW. t provide opportunities combustible waste in e Conservation and Recovery Act (RCRA) standards Effective Management, Maintenance and Operation of University of Alaska Anchorage located roughly 20 miles above the opportunity to generate energy from Kotzebue has many existing features re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive government buildings and is responsible for treatment of which could absorb the energy produced by such a . Kotzebue also has a readily available source of currently being disposed in the local landfill The Alaska Energy Authority (AEA) sponsored this analysis into the viability of a biomass Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste or renewable energy projects fits well with the is a proven and commercialized technology field. There ing in the world, processing over 40 million metric tonnes of waste hours (MWh) of electricity and 7.4 million MWh of thermal . Versions of this technology have been in operation at large scale since the 1970’s. , and military bases, have been last several decades in response to the rise in basic energy costs, and as process technologies have advanced opportunities for waste in landfills that are often e Conservation and Recovery Act (RCRA) standards2. Meanwhile Effective Management, Maintenance and Operation of University of Alaska Anchorage, 2003. December 2012 located roughly 20 miles above the opportunity to generate energy from has many existing features re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive government buildings and is responsible for treatment of which could absorb the energy produced by such a . Kotzebue also has a readily available source of combustible currently being disposed in the local landfill. biomass-fired community Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste or renewable energy projects fits well with the is a proven and commercialized technology field. There ing in the world, processing over 40 million metric tonnes of waste hours (MWh) of electricity and 7.4 million MWh of thermal le since the 1970’s. been developed in the last several decades in response to the rise in basic energy costs, and as process technologies have advanced for waste to energy landfills that are often eanwhile,the villages Effective Management, Maintenance and Operation of December 2012 located roughly 20 miles above the opportunity to generate energy from has many existing features re advantageous for development of such a project. Fundamentally, the city is located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive government buildings and is responsible for treatment of which could absorb the energy produced by such a combustible . community Engineering firm Tetra Tech, Inc. (Tetra Tech) and project partner DOWL HKM has pioneered renewable energy projects in the past in conjunction with the local energy utility Kotzebue Electric Association, including a 2.94 MW wind farm, solar thermal projects, and waste-heat or renewable energy projects fits well with the is a proven and commercialized technology field. There ing in the world, processing over 40 million metric tonnes of waste hours (MWh) of electricity and 7.4 million MWh of thermal le since the 1970’s. developed in the last several decades in response to the rise in basic energy costs, and as process technologies have advanced waste to energy landfills that are often not the villages Effective Management, Maintenance and Operation of KOTZEBUE BIOMASS ES-2 pay approximately are often villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that logistical, technical WASTE STREAM FEEDSTO One of the primary goals of this study was to evaluate the be used as feedstock to generate energy. This study focused primarily on waste found that the energy content of 120,000 gallons of fuel oil per year. In just the wood and wood equivalent to over 62,000 gallons of fuel oil. separated their garbage before dispos capture 250 tons cardboard, for a waste to energy these estimates consistent with the waste composition. separation of RDF materials. The system for its residents. The program has already implementation of a Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and imported to Kotzebue to supplement waste purchase pellets are significantly less expensive than fuel oil, and promoting FEASIBILITY STUDY CO Waste to energy commercial applications including identified as options which can convert nearly the entire waste stream into energy RDF combustion operate in conjunction with a city recycling program. and RDF Boiler scenarios, respective electrical generation or combined heat and power waste streams into valuable resources. KOTZEBUE BIOMASS approximately $7 to are often barged or airlifted villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that logistical, technical,and organization issues are carefully evaluated to lay WASTE STREAM FEEDSTO One of the primary goals of this study was to evaluate the be used as feedstock to generate energy. This study focused primarily on waste found that the energy content of 120,000 gallons of fuel oil per year. In just the wood wood-based materials equivalent to over 62,000 gallons of fuel oil. separated their garbage before dispos capture 250 tons per year of cardboard,and wood) from the overall waste stream for a waste to energy project. these estimates prior to final engineering of a consistent with the waste composition. separation of RDF materials. The system for its residents. The program has already implementation of a more formalized Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and imported to Kotzebue to supplement waste purchase pellets are significantly less expensive than fuel oil, and promoting a more efficient and complete combustion FEASIBILITY STUDY CO to energy technolo commercial applications including gasification of unsorted MSW and th identified as options carried forward in detailed analysis can convert nearly the entire waste stream into energy RDF combustion technologies operate in conjunction with a city recycling program. and RDF Boiler scenarios, respective electrical generation or combined heat and power waste streams into valuable resources. KOTZEBUE BIOMASS FEASIBILITY STUDY to $10 per gallon barged or airlifted to the villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that and organization issues are carefully evaluated to lay WASTE STREAM FEEDSTOCK One of the primary goals of this study was to evaluate the be used as feedstock to generate energy. This study focused primarily on waste found that the energy content of Kotzebue’s 120,000 gallons of fuel oil per year. In just the wood based materials), over eight billion Btu’s of are thrown into the Kotzebue landfill annually, equivalent to over 62,000 gallons of fuel oil. separated their garbage before dispos year of refuse derived fuels ( wood) from the overall waste stream project.Laboratory analysis of the city prior to final engineering of a consistent with the waste composition. separation of RDF materials. The City of Kotzebue recently implemented a waste system for its residents. The program has already more formalized Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and imported to Kotzebue to supplement waste purchase pellets are significantly less expensive than fuel oil, and cient and complete combustion FEASIBILITY STUDY CONCLUSIONS AND RECOMM technologies have commercial applications.Numerous gasification of unsorted MSW and th carried forward in detailed analysis can convert nearly the entire waste stream into energy technologies offers a more commonly used technology and presents an opportunity to operate in conjunction with a city recycling program. and RDF Boiler scenarios, respective electrical generation or combined heat and power waste streams into valuable resources. FEASIBILITY STUDY gallon for heating fuel to the rural villages villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that and organization issues are carefully evaluated to lay One of the primary goals of this study was to evaluate the be used as feedstock to generate energy. This study focused primarily on waste Kotzebue’s Municipal Solid Waste (MSW) 120,000 gallons of fuel oil per year. In just the wood r eight billion Btu’s of are thrown into the Kotzebue landfill annually, equivalent to over 62,000 gallons of fuel oil.Assuming separated their garbage before disposal (i.e.,in a refuse derived fuels ( wood) from the overall waste stream Laboratory analysis of the city prior to final engineering of a consistent with the waste composition.Source separation of wastes is City of Kotzebue recently implemented a waste system for its residents. The program has already more formalized source-separation and/or recycling program in the city. Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and imported to Kotzebue to supplement waste-derived feedstock purchase pellets are significantly less expensive than fuel oil, and cient and complete combustion NCLUSIONS AND RECOMM gies have advanced significantly in recent years Numerous technologies were investigated in this study; gasification of unsorted MSW and the combustion of carried forward in detailed analysis can convert nearly the entire waste stream into energy offers a more commonly used technology and presents an opportunity to operate in conjunction with a city recycling program. and RDF Boiler scenarios, respectively.The relatively small scale of b electrical generation or combined heat and power waste streams into valuable resources. FEASIBILITY STUDY heating fuel and diesel powered electric generation. These fuels villages, a non-sustainable villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that and organization issues are carefully evaluated to lay One of the primary goals of this study was to evaluate the biomass material available in Kotzebue that could be used as feedstock to generate energy. This study focused primarily on waste Municipal Solid Waste (MSW) 120,000 gallons of fuel oil per year. In just the wood-based combustible materials ( r eight billion Btu’s of are thrown into the Kotzebue landfill annually, Assuming that in a source-separation pro refuse derived fuels (RDF)feedstock. wood) from the overall waste stream, referred to as RDF, Laboratory analysis of the city prior to final engineering of a biomass energy plant Source separation of wastes is City of Kotzebue recently implemented a waste system for its residents. The program has already achieved separation and/or recycling program in the city. Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and derived feedstock purchase pellets are significantly less expensive than fuel oil, and cient and complete combustion. NCLUSIONS AND RECOMMENDATIONS advanced significantly in recent years technologies were investigated in this study; e combustion of carried forward in detailed analysis.Gasification can convert nearly the entire waste stream into energy extract offers a more commonly used technology and presents an opportunity to operate in conjunction with a city recycling program.These scenarios are referred to as MSW Gasification The relatively small scale of b electrical generation or combined heat and power.However, both systems clearly and diesel powered electric generation. These fuels sustainable energy villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that and organization issues are carefully evaluated to lay out a sound strategy and plan. biomass material available in Kotzebue that could be used as feedstock to generate energy. This study focused primarily on waste Municipal Solid Waste (MSW) based combustible materials ( r eight billion Btu’s of are thrown into the Kotzebue landfill annually, that all commercial enterprises in Kotzebue separation pro feedstock.The wood , referred to as RDF,would be the material of interest Laboratory analysis of the city’s waste stream is recommended biomass energy plant to ensure Source separation of wastes is City of Kotzebue recently implemented a waste achieved success, and is a good sign for t separation and/or recycling program in the city. Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and derived feedstock supplies. On an energy value basis, bulk purchase pellets are significantly less expensive than fuel oil, and complement ENDATIONS advanced significantly in recent years technologies were investigated in this study; e combustion of sorted refuse derived fuels (RDF) Gasification is a more sophisticated technology extracting the maximum offers a more commonly used technology and presents an opportunity to These scenarios are referred to as MSW Gasification The relatively small scale of both However, both systems clearly and diesel powered electric generation. These fuels energy cycle.While many of these villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that out a sound strategy and plan. biomass material available in Kotzebue that could be used as feedstock to generate energy. This study focused primarily on waste-based feedst Municipal Solid Waste (MSW)stream is equivalent to nearly based combustible materials (e.g., r eight billion Btu’s of are thrown into the Kotzebue landfill annually, all commercial enterprises in Kotzebue separation program), there is wood-based materials ( would be the material of interest waste stream is recommended to ensure anticipated Source separation of wastes is preferred over post City of Kotzebue recently implemented a waste can separation success, and is a good sign for t separation and/or recycling program in the city. Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and supplies. On an energy value basis, bulk complement RDF fuels in boiler systems by advanced significantly in recent years and are currently available for technologies were investigated in this study;however two technologies refuse derived fuels (RDF) is a more sophisticated technology the maximum energy offers a more commonly used technology and presents an opportunity to These scenarios are referred to as MSW Gasification oth analyzed However, both systems clearly aim to turn Kotzebue’s December 2012 and diesel powered electric generation. These fuels While many of these villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that out a sound strategy and plan. biomass material available in Kotzebue that could based feedstocks. It was stream is equivalent to nearly e.g.,paper, cardboard, r eight billion Btu’s of are thrown into the Kotzebue landfill annually, all commercial enterprises in Kotzebue ere is a potential to based materials (e.g., paper, would be the material of interest waste stream is recommended to confirm anticipated values are over post-consumer can separation collection success, and is a good sign for t separation and/or recycling program in the city. Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and supplies. On an energy value basis, bulk in boiler systems by and are currently available for however two technologies refuse derived fuels (RDF) is a more sophisticated technology energy possible, while offers a more commonly used technology and presents an opportunity to These scenarios are referred to as MSW Gasification analyzed systems precludes aim to turn Kotzebue’s December 2012 and diesel powered electric generation. These fuels While many of these villages, such as Kotzebue, have seemingly viable conditions for a waste to energy system, it is required that out a sound strategy and plan. biomass material available in Kotzebue that could . It was stream is equivalent to nearly paper, cardboard, r eight billion Btu’s of are thrown into the Kotzebue landfill annually, all commercial enterprises in Kotzebue potential to e.g., paper, would be the material of interest to confirm values are consumer collection success, and is a good sign for the Wood pellets or briquettes are an additional supplementary biomass feedstock that can be purchased and supplies. On an energy value basis, bulk- in boiler systems by and are currently available for however two technologies were is a more sophisticated technology , while offers a more commonly used technology and presents an opportunity to These scenarios are referred to as MSW Gasification precludes aim to turn Kotzebue’s KOTZEBUE BIOMASS ES-3 These attributes, as well as other logistical potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se gasifying all of Kotzebue’s MSW at an off Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and financial viability of the project The evaluation technologies are commercially available from multiple vendors remote locations such as Ko within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, and produce a small additional annual income for the city. avoided fuel oil purchase operator position, while the MSW Gasifier scenario Boiler scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly remote Arctic be 50%, but could be improved to 60% + throu While both scenarios require additional city planning and detailed engineering steps typical for projects o this nature, Public Works campus is an immediately implementable project contingent only on securing financing for the project. The MSW Gasifier scenario is contin an off-site location, likely a long comparison make Tetra Tech also r scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s waste composition. energy content of the material, as well as contaminants and other values engineering characterization of the feedstock source should be combined with test technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre processing, ash handling, etc). Kotzebue’s remote loca significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne throughout project lifespan, whereas a in the city’s waste stream. A prospective deep Blossom would likely reduce KOTZEBUE BIOMASS These attributes, as well as other logistical potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se gasifying all of Kotzebue’s MSW at an off Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and financial viability of the project evaluation determined that both project scenarios are technologies are commercially available from multiple vendors remote locations such as Ko within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, and produce a small additional annual income for the city. avoided fuel oil purchase operator position, while the MSW Gasifier scenario scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly remote Arctic construction cost factor be 50%, but could be improved to 60% + throu While both scenarios require additional city planning and detailed engineering steps typical for projects o this nature,Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the project. The MSW Gasifier scenario is contin site location, likely a long comparison makes it a more at Tetra Tech also recommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s waste composition.Analysis of energy content of the material, as well as contaminants and other values engineering. Analysis erization of the feedstock source should be combined with test technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre processing, ash handling, etc). Kotzebue’s remote loca significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne throughout project lifespan, whereas a in the city’s waste stream. A prospective deep Blossom would likely reduce KOTZEBUE BIOMASS FEASIBILITY STUDY These attributes, as well as other logistical potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se gasifying all of Kotzebue’s MSW at an off Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and financial viability of the project was evaluated. determined that both project scenarios are technologies are commercially available from multiple vendors remote locations such as Kotzebue. within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, and produce a small additional annual income for the city. avoided fuel oil purchases.The RDF Boiler scenario can support one additional full operator position, while the MSW Gasifier scenario scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly construction cost factor be 50%, but could be improved to 60% + throu While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the project. The MSW Gasifier scenario is contin site location, likely a long-term project. Additionally, the reduced capital expense of the RDF Boiler in it a more attractive near ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s Analysis of combustible material energy content of the material, as well as contaminants and other values can also help to indicate expected product capture rate of RDF. Laboratory erization of the feedstock source should be combined with test technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre processing, ash handling, etc). Kotzebue’s remote location is also a project driver. significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne throughout project lifespan, whereas a in the city’s waste stream. A prospective deep Blossom would likely reduce material costs FEASIBILITY STUDY These attributes, as well as other logistical considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se gasifying all of Kotzebue’s MSW at an off-site location to potentially pre Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and was evaluated. determined that both project scenarios are technologies are commercially available from multiple vendors tzebue.As analyzed, each scenario is able to repay within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, and produce a small additional annual income for the city. The RDF Boiler scenario can support one additional full operator position, while the MSW Gasifier scenario scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly construction cost factor increase, as well as the conservative capture rate of RDF (estimated to be 50%, but could be improved to 60% + through source While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the project. The MSW Gasifier scenario is contingent on re term project. Additionally, the reduced capital expense of the RDF Boiler in tractive near-term investment. ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material energy content of the material, as well as contaminants and other values can also help to indicate expected product capture rate of RDF. Laboratory erization of the feedstock source should be combined with test technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre tion is also a project driver. significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne throughout project lifespan, whereas a biomass energy system in the city’s waste stream. A prospective deep-water port material costs (steel, concrete, and equipment) FEASIBILITY STUDY considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se site location to potentially pre Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and determined that both project scenarios are technically and technologies are commercially available from multiple vendors As analyzed, each scenario is able to repay within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, and produce a small additional annual income for the city.Revenue for The RDF Boiler scenario can support one additional full operator position, while the MSW Gasifier scenario will require scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly increase, as well as the conservative capture rate of RDF (estimated to gh source-separation programs). While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the gent on re-development of the city’s water treatment system at term project. Additionally, the reduced capital expense of the RDF Boiler in term investment. ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible materials from the energy content of the material, as well as contaminants and other values can also help to indicate expected product capture rate of RDF. Laboratory erization of the feedstock source should be combined with test technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre tion is also a project driver.The difficulty of transporting materials to Kotzebue significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne biomass energy system water port being planned to (steel, concrete, and equipment) considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se site location to potentially pre Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and technically and financially viable technologies are commercially available from multiple vendors,and both are robust for harsh climate and As analyzed, each scenario is able to repay within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, Revenue for the projects The RDF Boiler scenario can support one additional full will require four (4) full scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly increase, as well as the conservative capture rate of RDF (estimated to separation programs). While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the development of the city’s water treatment system at term project. Additionally, the reduced capital expense of the RDF Boiler in ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s he city’s waste stream energy content of the material, as well as contaminants and other values can also help to indicate expected product capture rate of RDF. Laboratory erization of the feedstock source should be combined with test-burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre The difficulty of transporting materials to Kotzebue significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne biomass energy system has locally-produced and reliable fuel source being planned to (steel, concrete, and equipment) considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the se site location to potentially pre-heat city raw water supplies. Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and financially viable and both are robust for harsh climate and As analyzed, each scenario is able to repay project within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, the projects is derived The RDF Boiler scenario can support one additional full-time licensed boiler four (4) full-time staff positions. scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly increase, as well as the conservative capture rate of RDF (estimated to separation programs). While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the development of the city’s water treatment system at term project. Additionally, the reduced capital expense of the RDF Boiler in ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s aste stream will determine the actual energy content of the material, as well as contaminants and other values that will affect subsequent can also help to indicate expected product capture rate of RDF. Laboratory burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre The difficulty of transporting materials to Kotzebue significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne produced and reliable fuel source being planned to service Kotzebue (steel, concrete, and equipment)to support capital projects, but December 2012 considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF briquettes and wood pellets to produce building heat at the public works campus; the second evaluated heat city raw water supplies. Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and financially viable prospects. and both are robust for harsh climate and project debt obligations within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, is derived in the form of time licensed boiler time staff positions.The RDF scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly increase, as well as the conservative capture rate of RDF (estimated to While both scenarios require additional city planning and detailed engineering steps typical for projects o Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the development of the city’s water treatment system at term project. Additionally, the reduced capital expense of the RDF Boiler in ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s will determine the actual that will affect subsequent can also help to indicate expected product capture rate of RDF. Laboratory burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre The difficulty of transporting materials to Kotzebue significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne produced and reliable fuel source Kotzebue from t capital projects, but December 2012 considerations, were evaluated in the feasibility study. Two (2) potential operational scenarios were developed. One system envisions combustion of a combination of RDF cond evaluated heat city raw water supplies. Conceptual designs of both biomass energy plant scenarios were created based on the evaluation, and prospects.Both and both are robust for harsh climate and debt obligations within a reasonable timeframe, while covering operating costs, employee wages, maintenance and materials, in the form of time licensed boiler The RDF scenario is highly sensitive to project capital cost and throughput (i.e., RDF capture rate). It is likely that improvements can be made to the conservative capital expense estimate, which includes a nearly 200% increase, as well as the conservative capture rate of RDF (estimated to While both scenarios require additional city planning and detailed engineering steps typical for projects of Tetra Tech recommends pursuing either of the two scenarios. An RDF Boiler located on the Public Works campus is an immediately implementable project contingent only on securing financing for the development of the city’s water treatment system at term project. Additionally, the reduced capital expense of the RDF Boiler in ecommends laboratory analysis of representative samples of Kotzebue’s waste stream. The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s will determine the actual that will affect subsequent can also help to indicate expected product capture rate of RDF. Laboratory burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre- The difficulty of transporting materials to Kotzebue significantly increases capital cost, as noted in the project report. However, cost to import fuel must be borne produced and reliable fuel source from Cape t capital projects, but KOTZEBUE BIOMASS ES-4 is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and expense. The findings of this study Kotzebue. energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The difficulty and expense in sourcing fuel oil shared by biomass energy systems as Kotzebue’s opportunity. T each situation should be carefully evaluated for its technical and logistical viability, fin approval within the In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is being unnecessarily landfilled also avoid energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and divert over 300 tons of waste from energy project that can win support at the increase community self energy project pioneering sustainable and renewable energy practices KOTZEBUE BIOMASS is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and The findings of this study .The smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The difficulty and expense in sourcing fuel oil shared by biomass energy systems as Kotzebue’s opportunity. T each situation should be carefully evaluated for its technical and logistical viability, fin approval within the respective In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is being unnecessarily landfilled avoid importing a energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and over 300 tons of waste from project that can win support at the increase community self energy project can be pioneering sustainable and renewable energy practices KOTZEBUE BIOMASS FEASIBILITY STUDY is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and The findings of this study should be considered he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The difficulty and expense in sourcing fuel oil shared by biomass energy systems as Kotzebue’s opportunity. T each situation should be carefully evaluated for its technical and logistical viability, fin respective communities. In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is being unnecessarily landfilled, and could instead be used as a sustainable source of energy importing a significant amount of fuel oil energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and over 300 tons of waste from the local landfill project that can win support at the increase community self-sufficiency, and improve a model program for other pioneering sustainable and renewable energy practices FEASIBILITY STUDY is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and be considered applicable in corollary he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The difficulty and expense in sourcing fuel oil shared by biomass energy systems as Kotzebue’s opportunity. T each situation should be carefully evaluated for its technical and logistical viability, fin communities. In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is , and could instead be used as a sustainable source of energy significant amount of fuel oil energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and the local landfill project that can win support at the local, sta sufficiency, and improve a model program for other pioneering sustainable and renewable energy practices FEASIBILITY STUDY is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and applicable in corollary he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The difficulty and expense in sourcing fuel oil shared by all of these communities presents biomass energy systems as Kotzebue’s opportunity. The concept in theory has been shown to be viable, each situation should be carefully evaluated for its technical and logistical viability, fin In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is , and could instead be used as a sustainable source of energy significant amount of fuel oil with the development of a energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and the local landfill annually.This local, state, and national sufficiency, and improve waste management and disposal a model program for other Alaskan villages pioneering sustainable and renewable energy practices. is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and applicable in corollary for the region he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The all of these communities presents he concept in theory has been shown to be viable, each situation should be carefully evaluated for its technical and logistical viability, fin In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is , and could instead be used as a sustainable source of energy with the development of a energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and This project exemplifies onal level for its ability to reduce fuel imports, waste management and disposal villages, continuing the is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and for the region, not only the City of he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The all of these communities presents similar opportunity for he concept in theory has been shown to be viable, each situation should be carefully evaluated for its technical and logistical viability, fin In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is , and could instead be used as a sustainable source of energy with the development of a biomass energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and exemplifies the level for its ability to reduce fuel imports, waste management and disposal practices , continuing the tradition December 2012 is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and , not only the City of he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The similar opportunity for he concept in theory has been shown to be viable, each situation should be carefully evaluated for its technical and logistical viability, financial cost, and In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is , and could instead be used as a sustainable source of energy. The city could energy plant. Total energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and the type of sustainable level for its ability to reduce fuel imports, practices. This biomass tradition of Kotzebue December 2012 is unlikely to have much effect on fuel costs, which are tied to global increases in energy demand and , not only the City of he smaller villages in the Northwest Arctic Borough have expressed interest in similar waste-to- energy solutions, scaled to fit the feedstock sources and heating needs of the respective villages. The similar opportunity for he concept in theory has been shown to be viable,but ancial cost, and In conclusion, what can be determined from this study is that a significant amount of Kotzebue’s trash is city could energy plant. Total energy production of the RDF Boiler scenario would displace over 30,000 gallons of fuel oil each year, and sustainable level for its ability to reduce fuel imports, biomass Kotzebue in KOTZEBUE BIOMASS 1-1 1 INTRODUCTION 1.1 PROJECT OVERVIEW The City of miles above the Arctic Circle on the Chukchi Sea. Kotzebue project partner DOWL HKM (DOWL) to review the feasib assisted through funding from the Alaska Energy Authority (AEA). Kotzebue generation project.Fundamentally produce its own energy and reduce dependence on expensive energy imports. Further several government buildings which could absorb the energy produced by such a plan combustible biomass in 1.2 STUDY AND The City of Kotzebue project analysis and report is organized to address the five key aspects requested within the project RFP. These are: 1.Paper and 2.Identification and Evaluation of Viable Technologies 3.Conceptual Design and ROM Cost Analysis 4.Permitting and Environmental Analysis 5.Economic and Financial Analysis The report is formatted in such a way as to track the flow waste-to-energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. The report contains the fol An Executive Summary to summarize the findings of the study. Section 1 includes this introduction to the project that provides the background and explains the scope and purpose of this study. Section 2 provides an assessment of the MSW (f feedstock energy content and logistics associated with collecting and sorting MSW. This section also KOTZEBUE BIOMASS INTRODUCTION PROJECT OVERVIEW The City of Kotzebue (Kotzebue) is miles above the Arctic Circle on the Chukchi Sea. Kotzebue project partner DOWL HKM (DOWL) to review the feasib assisted through funding from the Alaska Energy Authority (AEA). sees an opportunity to generate generation plant.The Fundamentally produce its own energy and reduce dependence on expensive energy imports. Further several government buildings could absorb the energy produced by such a plan combustible biomass in STUDY AND REPORT The City of Kotzebue project analysis and report is organized to address the five key aspects requested within the project RFP. These are: Paper and Wood Stream Analysis for Kotzebue Identification and Evaluation of Viable Technologies Conceptual Design and ROM Cost Analysis Permitting and Environmental Analysis Economic and Financial Analysis The report is formatted in such a way as to track the flow energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. The report contains the fol An Executive Summary to summarize the findings of the study. Section 1 includes this introduction to the project that provides the background and explains the scope and purpose of this study. Section 2 provides an assessment of the MSW (f feedstock energy content and logistics associated with collecting and sorting MSW. This section also KOTZEBUE BIOMASS FEASIBILITY STUDY INTRODUCTION PROJECT OVERVIEW Kotzebue (Kotzebue) is the regional hub of Northwest miles above the Arctic Circle on the Chukchi Sea. Kotzebue project partner DOWL HKM (DOWL) to review the feasib assisted through funding from the Alaska Energy Authority (AEA). an opportunity to generate The area has ma Fundamentally, the city is produce its own energy and reduce dependence on expensive energy imports. Further several government buildings and is responsible for treatment and heating of citizens’ water supply could absorb the energy produced by such a plan combustible biomass in the form of municipal solid waste ( REPORT ORGANIZATION The City of Kotzebue project analysis and report is organized to address the five key aspects requested within the project RFP. These are: Wood Stream Analysis for Kotzebue Identification and Evaluation of Viable Technologies Conceptual Design and ROM Cost Analysis Permitting and Environmental Analysis Economic and Financial Analysis The report is formatted in such a way as to track the flow energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. The report contains the following sections: An Executive Summary to summarize the findings of the study. Section 1 includes this introduction to the project that provides the background and explains the scope and Section 2 provides an assessment of the MSW (f feedstock energy content and logistics associated with collecting and sorting MSW. This section also FEASIBILITY STUDY the regional hub of Northwest miles above the Arctic Circle on the Chukchi Sea. Kotzebue project partner DOWL HKM (DOWL) to review the feasib assisted through funding from the Alaska Energy Authority (AEA). an opportunity to generate energy from waste area has many existing features that are advantageous for development of located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Further and is responsible for treatment and heating of citizens’ water supply could absorb the energy produced by such a plan municipal solid waste ( ORGANIZATION The City of Kotzebue project analysis and report is organized to address the five key aspects requested within Wood Stream Analysis for Kotzebue Identification and Evaluation of Viable Technologies Conceptual Design and ROM Cost Analysis Permitting and Environmental Analysis The report is formatted in such a way as to track the flow energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. lowing sections: An Executive Summary to summarize the findings of the study. Section 1 includes this introduction to the project that provides the background and explains the scope and Section 2 provides an assessment of the MSW (feedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also FEASIBILITY STUDY the regional hub of Northwest miles above the Arctic Circle on the Chukchi Sea. Kotzebue has project partner DOWL HKM (DOWL) to review the feasibility of a biomass assisted through funding from the Alaska Energy Authority (AEA). energy from waste through const ny existing features that are advantageous for development of located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Further and is responsible for treatment and heating of citizens’ water supply could absorb the energy produced by such a plant. Kotzebue also municipal solid waste (MSW The City of Kotzebue project analysis and report is organized to address the five key aspects requested within Wood Stream Analysis for Kotzebue Identification and Evaluation of Viable Technologies The report is formatted in such a way as to track the flow of materials utilized by and produced from the energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. An Executive Summary to summarize the findings of the study. Section 1 includes this introduction to the project that provides the background and explains the scope and eedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also the regional hub of Northwest Alaska. The port city is has engaged Tetra Tech, Inc. (Tetra Tech) and ility of a biomass-fired community energy project, assisted through funding from the Alaska Energy Authority (AEA). through construction of a biomass ny existing features that are advantageous for development of located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Further and is responsible for treatment and heating of citizens’ water supply . Kotzebue also has MSW), which can be converted into energy The City of Kotzebue project analysis and report is organized to address the five key aspects requested within of materials utilized by and produced from the energy plant, starting with a review of MSW supply. The report finishes with a review of permitting and environmental requirements and a financial analysis of the project. Section 1 includes this introduction to the project that provides the background and explains the scope and eedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also . The port city is engaged Tetra Tech, Inc. (Tetra Tech) and fired community energy project, ruction of a biomass ny existing features that are advantageous for development of located in an isolated region, and would benefit from the ability to produce its own energy and reduce dependence on expensive energy imports. Furthermore, Kotzebue and is responsible for treatment and heating of citizens’ water supply has a readily available source of can be converted into energy The City of Kotzebue project analysis and report is organized to address the five key aspects requested within of materials utilized by and produced from the energy plant, starting with a review of MSW supply. The report finishes with a review of permitting Section 1 includes this introduction to the project that provides the background and explains the scope and eedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also December 2012 . The port city is located roughly 20 engaged Tetra Tech, Inc. (Tetra Tech) and fired community energy project, ruction of a biomass-fired energy ny existing features that are advantageous for development of such a located in an isolated region, and would benefit from the ability to more, Kotzebue and is responsible for treatment and heating of citizens’ water supply,any of a readily available source of can be converted into energy. The City of Kotzebue project analysis and report is organized to address the five key aspects requested within of materials utilized by and produced from the energy plant, starting with a review of MSW supply. The report finishes with a review of permitting Section 1 includes this introduction to the project that provides the background and explains the scope and eedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also December 2012 roughly 20 engaged Tetra Tech, Inc. (Tetra Tech) and fired community energy project, fired energy such a located in an isolated region, and would benefit from the ability to more, Kotzebue owns any of a readily available source of The City of Kotzebue project analysis and report is organized to address the five key aspects requested within of materials utilized by and produced from the energy plant, starting with a review of MSW supply. The report finishes with a review of permitting Section 1 includes this introduction to the project that provides the background and explains the scope and eedstock) availability in the city. The analysis also addresses feedstock energy content and logistics associated with collecting and sorting MSW. This section also KOTZEBUE BIOMASS 1-2 introduces the potential use of supplementary feedstocks (wood pellets/ for such feedstocks to be delivered for use at the project. Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential project sites in light of available infrastructur identified and further evaluated. Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to be technically viable for converting MSW to en carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental concerns relating to air em provided for various regulating agencies. Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the most likely facility ope Section 8 discusses the final conclusions and recommendations of the study. Tetra Tech extends our appreciation KOTZEBUE BIOMASS introduces the potential use of supplementary feedstocks (wood pellets/ for such feedstocks to be delivered for use at the project. Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential project sites in light of available infrastructur identified and further evaluated. Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to be technically viable for converting MSW to en carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental concerns relating to air em provided for various regulating agencies. Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the most likely facility operational range. These estimates are included into a financial model for the site. Section 8 discusses the final conclusions and recommendations of the study. Tetra Tech extends our appreciation KOTZEBUE BIOMASS FEASIBILITY STUDY introduces the potential use of supplementary feedstocks (wood pellets/ for such feedstocks to be delivered for use at the project. Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential project sites in light of available infrastructur identified and further evaluated. Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to be technically viable for converting MSW to en carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental concerns relating to air emissions from reviewed technologies are also addressed, and contact information is provided for various regulating agencies. Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. Section 8 discusses the final conclusions and recommendations of the study. Tetra Tech extends our appreciation FEASIBILITY STUDY introduces the potential use of supplementary feedstocks (wood pellets/ for such feedstocks to be delivered for use at the project. Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential project sites in light of available infrastructure and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to be technically viable for converting MSW to energy in Kotzebue. The facility process and engineering is carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is provided for various regulating agencies. Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. Section 8 discusses the final conclusions and recommendations of the study. to the City of Kotzebue FEASIBILITY STUDY introduces the potential use of supplementary feedstocks (wood pellets/ for such feedstocks to be delivered for use at the project. Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential e and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to ergy in Kotzebue. The facility process and engineering is carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. Section 8 discusses the final conclusions and recommendations of the study. City of Kotzebue for the opportunity to work on this introduces the potential use of supplementary feedstocks (wood pellets/briquettes Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these tec processing equipment sets were reviewed for use at the project site. Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential e and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to ergy in Kotzebue. The facility process and engineering is carried out to a standard 10% design completion for both scenarios. Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. Section 8 discusses the final conclusions and recommendations of the study. for the opportunity to work on this briquettes) and es Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two potential technologies for this application. Based upon the needs of these technologies, MSW handling and Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential e and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to ergy in Kotzebue. The facility process and engineering is Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. for the opportunity to work on this December 2012 ) and estimates the cost Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two hnologies, MSW handling and Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential e and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to ergy in Kotzebue. The facility process and engineering is Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the rational range. These estimates are included into a financial model for the site. for the opportunity to work on this project. December 2012 timates the cost Section 3 reviews available technologies for conversion of MSW to thermal energy, and recommends two hnologies, MSW handling and Section 4 reviews the current energy demand profiles of Kotzebue controlled facilities, and reviews potential e and interconnection logistics. Three potential project sites are Section 5 provides process descriptions and conceptual engineering design of two project scenarios found to ergy in Kotzebue. The facility process and engineering is Section 6 reviews permitting requirements for all aspects of the reviewed technologies. Environmental issions from reviewed technologies are also addressed, and contact information is Section 7 includes an estimation of the capital and operational costs, energy savings and revenues for the KOTZEBUE BIOMASS 3-1 2 BIOMASS FEEDSTOCK Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, Tech has analyzed the following sectio terms of supply volume, 2.1 MUNICIPAL SOLID WAST Municipal Export of materials for disposal, or even recycling, is rarely cost products end up compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Protection Agency (EPA) Figure Source: 3 Colt, et al. “ Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” 4 http://www.epa.gov/epawaste/nonhaz/municipal/index.htm KOTZEBUE BIOMASS BIOMASS FEEDSTOCK Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, Tech has analyzed the available and accessible volume of biomass supply in the following section quantifies the supply volume, MUNICIPAL SOLID WAST Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. Export of materials for disposal, or even recycling, is rarely cost products end up in city landfill compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental on Agency (EPA) Figure 2-1: Average U.S. MSW Composition Source:US EPA Colt, et al. “Sustainable Utilities in Rural Alaska Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” http://www.epa.gov/epawaste/nonhaz/municipal/index.htm KOTZEBUE BIOMASS FEASIBILITY STUDY BIOMASS FEEDSTOCK Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, available and accessible volume of biomass supply in the n quantifies the waste supply volume,consistency, and fuel quality. MUNICIPAL SOLID WASTE (MSW) SUPPLY Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. Export of materials for disposal, or even recycling, is rarely cost city landfills.In addition, compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental on Agency (EPA)4. : Average U.S. MSW Composition Sustainable Utilities in Rural Alaska Electric, Water, Sewer, Bulk Fuel, Solid Waste. ” http://www.epa.gov/epawaste/nonhaz/municipal/index.htm FEASIBILITY STUDY BIOMASS FEEDSTOCK ASSESSMENT Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, available and accessible volume of biomass supply in the waste-derived biomass feedstock supply potential in and around consistency, and fuel quality. E (MSW) SUPPLY Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. Export of materials for disposal, or even recycling, is rarely cost In addition,90% o compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental : Average U.S. MSW Composition Sustainable Utilities in Rural Alaska Electric, Water, Sewer, Bulk Fuel, Solid Waste. ”University of Alaska Anchorage http://www.epa.gov/epawaste/nonhaz/municipal/index.htm FEASIBILITY STUDY ASSESSMENT Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, available and accessible volume of biomass supply in the biomass feedstock supply potential in and around consistency, and fuel quality. E (MSW) SUPPLY Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. Export of materials for disposal, or even recycling, is rarely cost 90% of rural Alaskan compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Sustainable Utilities in Rural Alaska;Effective Management, Maintenance and Operation of University of Alaska Anchorage http://www.epa.gov/epawaste/nonhaz/municipal/index.htm Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, available and accessible volume of biomass supply in the biomass feedstock supply potential in and around Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. Export of materials for disposal, or even recycling, is rarely cost-effective, and the vast majority of waste rural Alaskan villages dispose of waste in open dumps not compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Effective Management, Maintenance and Operation of University of Alaska Anchorage Feedstock supply is the single most important aspect of a biomass energy project. Consis underutilized energy sources are critical to a project’s operational and financial viability. In this task, available and accessible volume of biomass supply in the Kotzebue, biomass feedstock supply potential in and around Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. effective, and the vast majority of waste villages dispose of waste in open dumps not compliant with EPA’s Resource Conservation and Recovery Act (RCRA) standards3. Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Effective Management, Maintenance and Operation of University of Alaska Anchorage, 2003. December 2012 Feedstock supply is the single most important aspect of a biomass energy project. Consistent volumes of underutilized energy sources are critical to a project’s operational and financial viability. In this task, Alaska region biomass feedstock supply potential in and around Kotzebue Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. effective, and the vast majority of waste villages dispose of waste in open dumps not Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Effective Management, Maintenance and Operation of December 2012 tent volumes of underutilized energy sources are critical to a project’s operational and financial viability. In this task,Tetra region. The Kotzebue, in Solid Waste (MSW) management is a more acute problem in Alaska than elsewhere in the world. effective, and the vast majority of waste villages dispose of waste in open dumps not Below is the standard percentage composition of waste materials in the U.S., according to the Environmental Effective Management, Maintenance and Operation of KOTZEBUE BIOMASS 3-2 Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the city’s Refuse Manager and empirical data regarding waste composition. Kotzebue, with a population of 3,201 as of the 2010 US Census, a relatively approximately 1,625 tons of raw MSW are disposed in classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. Wastes are collected campus, known as the Bailer b of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re reduce waste dispersion in the landfill. Figure A breakdown of the distribution of materials ( Kotzebue’s waste was calculated based on distribution deviations from the norm are content. C shipping of consumer content to the city of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste ensure expected values are co The resulting KOTZEBUE BIOMASS Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the Refuse Manager and empirical data regarding waste composition. , with a population of 3,201 as of the 2010 US Census, relatively sophisticated waste management system approximately 1,625 tons of raw MSW are disposed in classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. Wastes are collected throughout campus, known as the Bailer b of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re reduce waste dispersion in the landfill. Figure 2-2:Kotzebue Refuse Baler A breakdown of the distribution of materials ( Kotzebue’s waste was calculated based on distribution values will likely differ from th deviations from the norm are content. Cardboard content is expected to be shipping of consumer content to the city of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste ensure expected values are co The resulting estimated KOTZEBUE BIOMASS FEASIBILITY STUDY Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the Refuse Manager and empirical data regarding waste composition. , with a population of 3,201 as of the 2010 US Census, sophisticated waste management system approximately 1,625 tons of raw MSW are disposed in classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. throughout the campus, known as the Bailer building. Hazardous materials are separated for processing, and the remainder of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re reduce waste dispersion in the landfill. Kotzebue Refuse Baler A breakdown of the distribution of materials ( Kotzebue’s waste was calculated based on values will likely differ from th deviations from the norm are 1) lawn and y ardboard content is expected to be shipping of consumer content to the city of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste ensure expected values are consistent with the waste composition. estimated MSW composition FEASIBILITY STUDY Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the Refuse Manager and empirical data regarding waste composition. , with a population of 3,201 as of the 2010 US Census, sophisticated waste management system approximately 1,625 tons of raw MSW are disposed in classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. the town and brought to a central processing point on the Public Wor uilding. Hazardous materials are separated for processing, and the remainder of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re reduce waste dispersion in the landfill. Kotzebue Refuse Baler A breakdown of the distribution of materials (i.e., the percentage of Kotzebue’s waste was calculated based on US EPA aggregate data values will likely differ from that of a standard US mainland city. awn and yard biomass ardboard content is expected to be approximately 20% higher than average shipping of consumer content to the city. These numbers present a conservative overview of of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste nsistent with the waste composition. composition breakdown for Kotzebue is displayed in Table FEASIBILITY STUDY Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the Refuse Manager and empirical data regarding waste composition. , with a population of 3,201 as of the 2010 US Census, sophisticated waste management system to process and dispose of approximately 1,625 tons of raw MSW are disposed in the city classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. town and brought to a central processing point on the Public Wor uilding. Hazardous materials are separated for processing, and the remainder of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re i.e., the percentage of US EPA aggregate data at of a standard US mainland city. ard biomass of which there is none produced approximately 20% higher than average . These numbers present a conservative overview of of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste nsistent with the waste composition. breakdown for Kotzebue is displayed in Table Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the Refuse Manager and empirical data regarding waste composition. , with a population of 3,201 as of the 2010 US Census,is large by Alaskan village standards process and dispose of the city’s landfill. classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. town and brought to a central processing point on the Public Wor uilding. Hazardous materials are separated for processing, and the remainder of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to re i.e., the percentage of paper vs. plastic. vs. cardboard, et US EPA aggregate data.Due to its remote location, at of a standard US mainland city. of which there is none produced approximately 20% higher than average . These numbers present a conservative overview of of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste nsistent with the waste composition. breakdown for Kotzebue is displayed in Table Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the large by Alaskan village standards process and dispose of its citizen ’s landfill.Kotzebue’s landfill is currently classified as a ‘Class II’ landfill by RCRA and meets EPA operational guidelines. town and brought to a central processing point on the Public Wor uilding. Hazardous materials are separated for processing, and the remainder of the refuse is compacted into approximately 1800 lb, 4 foot by 4 foot cubes to reduce landfill space and paper vs. plastic. vs. cardboard, et Due to its remote location, at of a standard US mainland city.The two of which there is none produced approximately 20% higher than average due to . These numbers present a conservative overview of of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory analysis of the city waste stream is recommended prior to final engineering of a waste-to breakdown for Kotzebue is displayed in Table 2- December 2012 Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the large by Alaskan village standards, and its citizen’s trash. Each year Kotzebue’s landfill is currently town and brought to a central processing point on the Public Wor uilding. Hazardous materials are separated for processing, and the remainder duce landfill space and paper vs. plastic. vs. cardboard, et Due to its remote location,Kotzebue’s The two expected of which there is none produced, and 2)cardboard due to packaging and . These numbers present a conservative overview of the composition of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory to-energy system to -1. December 2012 Data concerning the composition of waste materials in Kotzebue was gathered through interviews with the , and has ach year Kotzebue’s landfill is currently town and brought to a central processing point on the Public Works uilding. Hazardous materials are separated for processing, and the remainder duce landfill space and paper vs. plastic. vs. cardboard, etc) in otzebue’s expected major cardboard packaging and the composition of Kotzebue’s waste stream, specifically the divertible material (paper products and wood). Laboratory energy system to KOTZEBUE BIOMASS 3-3 Table Source: 2.2 REFUSE Refuse derived homogenous RDF production and combustion systems combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood materials, specifically lumber, paper, and c avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler or produced unwanted air emissions from combustion. RDF is often compressed in characteristics Section 4. 2.2.1 SOURCE SEPARATION The easiest way to to divert those products prior to entering the mass waste stream. Source employed Commercial Company of RDF material Borough Sch source of wood Alaska Airlines, Arctic Transportation Service, Lynden Material Cardboard FoodWaste Paper Plastics Metal Wood Glass Textiles Rubber Leather GardenTrimmings Other Total Paper, Cardboard& WoodFraction KOTZEBUE BIOMASS Table 2-1:Kotzebue Source:EPA, Tetra Tech analysis REFUSE-DERIVED FUEL erived fuel (RDF) is a separated homogenous fuel, free of contaminants, dirt, glass, metals, and other non RDF production and combustion systems combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood materials, specifically lumber, paper, and c avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler or produced unwanted air emissions from combustion. RDF is often compressed in characteristics and efficiencies SOURCE SEPARATION The easiest way to avoid contamination of the cardboard to divert those products prior to entering the mass waste stream. Source ed at the only the largest Commercial Company Value Center (AC), materials are the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic School District, Nullagvi source of wood (pallets Alaska Airlines, Arctic Transportation Service, Lynden Cardboard FoodWaste GardenTrimmings Paper, Cardboard& WoodFraction KOTZEBUE BIOMASS FEASIBILITY STUDY Kotzebue Municipal Solid Waste (MSW) Composition EPA, Tetra Tech analysis DERIVED FUEL uel (RDF) is a separated , free of contaminants, dirt, glass, metals, and other non RDF production and combustion systems combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood materials, specifically lumber, paper, and c avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler or produced unwanted air emissions from combustion. RDF is often compressed in to pellets or briquettes after processing to further impro and efficiencies. Densification and stabilization of RDF feedstock is discussed in more detail in SOURCE SEPARATION OF RDF FEEDSTOCK avoid contamination of the cardboard to divert those products prior to entering the mass waste stream. Source at the only the largest Value Center (AC), the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic ool District, Nullagvik Hotel, Rotman’s Store, and the various restaurants in town. pallets)are the local air cargo firms that supply this regional trading hub Alaska Airlines, Arctic Transportation Service, Lynden WetWeight Paper, Cardboard& WoodFraction FEASIBILITY STUDY Municipal Solid Waste (MSW) Composition uel (RDF) is a separated combustible , free of contaminants, dirt, glass, metals, and other non RDF production and combustion systems, process non combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood materials, specifically lumber, paper, and cardboard. avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler or produced unwanted air emissions from combustion. to pellets or briquettes after processing to further impro . Densification and stabilization of RDF feedstock is discussed in more detail in OF RDF FEEDSTOCK avoid contamination of the cardboard to divert those products prior to entering the mass waste stream. Source at the only the largest RDF producers Value Center (AC),and the the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic Hotel, Rotman’s Store, and the various restaurants in town. are the local air cargo firms that supply this regional trading hub Alaska Airlines, Arctic Transportation Service, Lynden WetWeight (%) 18.7% 18.6% 14.1% 12.3% 8.6% 6.5% 4.8% 2.8% 2.8% 2.8% 0.0% 8.1% 100.0% 39.3% FEASIBILITY STUDY Municipal Solid Waste (MSW) Composition combustible portion of , free of contaminants, dirt, glass, metals, and other non , process non-recyclable plastics, food wastes, and other combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood ardboard.Careful attention must be paid tin the sorting process to avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler or produced unwanted air emissions from combustion. to pellets or briquettes after processing to further impro . Densification and stabilization of RDF feedstock is discussed in more detail in OF RDF FEEDSTOCK avoid contamination of the cardboard-paper to divert those products prior to entering the mass waste stream. Source producers in the area. and the Maniilaq Health Center the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic Hotel, Rotman’s Store, and the various restaurants in town. are the local air cargo firms that supply this regional trading hub Alaska Airlines, Arctic Transportation Service, Lynden Air Cargo, Northern Air Cargo, and Village Aviation, Inc. WetWeight (Lbs/day) 1,665 1,656 1,255 1,095 766 579 427 246 246 246 - 721 8,900 3,500 Municipal Solid Waste (MSW) Composition portion of MSW.RDF is processed to be a , free of contaminants, dirt, glass, metals, and other non-combustible materials recyclable plastics, food wastes, and other combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood Careful attention must be paid tin the sorting process to avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler to pellets or briquettes after processing to further impro . Densification and stabilization of RDF feedstock is discussed in more detail in paper-wood fraction of Kotzebue’s waste stream is to divert those products prior to entering the mass waste stream. Source-separation systems are likely to be in the area.The two primary producers are Maniilaq Health Center. Secondary p the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic Hotel, Rotman’s Store, and the various restaurants in town. are the local air cargo firms that supply this regional trading hub Air Cargo, Northern Air Cargo, and Village Aviation, Inc. WetWeight Avg.Moisture Content 1,665 1,656 70% 1,255 1,095 766 579 40% 427 246 10% 246 246 13% 60% 721 8,900 3,500 RDF is processed to be a combustible materials recyclable plastics, food wastes, and other combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood Careful attention must be paid tin the sorting process to avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler to pellets or briquettes after processing to further impro . Densification and stabilization of RDF feedstock is discussed in more detail in wood fraction of Kotzebue’s waste stream is separation systems are likely to be The two primary producers are . Secondary point the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic Hotel, Rotman’s Store, and the various restaurants in town. are the local air cargo firms that supply this regional trading hub Air Cargo, Northern Air Cargo, and Village Aviation, Inc. Avg.Moisture Content DryWeight (Lbs/day) 5%1,582 70% 6%1,179 4%1,047 2% 40% 3% 10% 0% 13% 60% 0% 7,200 3,100 December 2012 RDF is processed to be a consistent, combustible materials. Large recyclable plastics, food wastes, and other combustible materials. It is expected that an RDF system employed at Kotzebue will focus on wood- Careful attention must be paid tin the sorting process to avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler to pellets or briquettes after processing to further improve combustion . Densification and stabilization of RDF feedstock is discussed in more detail in wood fraction of Kotzebue’s waste stream is separation systems are likely to be The two primary producers are Alaska int-source producers the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic Hotel, Rotman’s Store, and the various restaurants in town.Another are the local air cargo firms that supply this regional trading hub, which include Air Cargo, Northern Air Cargo, and Village Aviation, Inc. DryWeight (Lbs/day) DryWeight (tons/yr) 1,582 497 1,179 1,047 752 347 417 222 246 216 - 721 7,200 1,310 3,100 December 2012 consistent, . Large-scale recyclable plastics, food wastes, and other -based Careful attention must be paid tin the sorting process to avoid contaminants, such as plastic, painted or stained wood, or other materials that may foul an RDF boiler ve combustion . Densification and stabilization of RDF feedstock is discussed in more detail in wood fraction of Kotzebue’s waste stream is separation systems are likely to be Alaska producers the school buildings, cafeterias, and maintenance buildings of the Northwest Arctic nother , which include Air Cargo, Northern Air Cargo, and Village Aviation, Inc. DryWeight (tons/yr) 290 90 220 190 140 60 80 40 40 40 - 130 1,310 570 KOTZEBUE BIOMASS 3-4 AC Value Center cardboard waste of any single entity in Kotzebue Cardboard is separated from the common waste stream and baled onsi 12 bales per week, at 100 tons per year. cardboard source constitute a ready supply of Figure Maniilaq Health Center. issue at the health Center; currently the s volume of waste produced by the hospital. Figure also clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of unknown the tonnage produced by the AC. KOTZEBUE BIOMASS Value Center. cardboard waste of any single entity in Kotzebue Cardboard is separated from the common waste stream and baled onsi bales per week, at 100 tons per year.Paper and wood (pallets, etc) can be separated by employees in the same bin that baled cardboard is for pick source-separated RDF constitute a ready supply of Figure 2-3:Photo of AC Cardboard Bales and Pallets Maniilaq Health Center. issue at the health Center; currently the s volume of waste produced by the hospital. Figure clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of unknown; it is expected that the cardboard volume, supplemented by significant paper waste, could rival the tonnage produced by the AC. KOTZEBUE BIOMASS FEASIBILITY STUDY The Alaska Commercial Company Value Center produces the largest volume of cardboard waste of any single entity in Kotzebue Cardboard is separated from the common waste stream and baled onsi bales per week, at 100-150 lbs Paper and wood (pallets, etc) can be separated by employees in the same bin that baled is for pick-up. Including paper and wood, the AC may produce as much as 100 tons per year of separated RDF raw material. constitute a ready supply of ideal RDF feedstock. Photo of AC Cardboard Bales and Pallets Maniilaq Health Center.The local Health Center is one of the larg issue at the health Center; currently the s volume of waste produced by the hospital. Figure clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival the tonnage produced by the AC. FEASIBILITY STUDY The Alaska Commercial Company Value Center produces the largest volume of cardboard waste of any single entity in Kotzebue Cardboard is separated from the common waste stream and baled onsi 150 lbs per bale, the pre Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of material.Figure 2-3 ideal RDF feedstock. Photo of AC Cardboard Bales and Pallets The local Health Center is one of the larg issue at the health Center; currently the space available for volume of waste produced by the hospital. Figure clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival the tonnage produced by the AC. FEASIBILITY STUDY The Alaska Commercial Company Value Center produces the largest volume of cardboard waste of any single entity in Kotzebue, through the packaging of all of the products it sells Cardboard is separated from the common waste stream and baled onsi , the pre-sorted output of this facility is Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of 3 below shows a pile o ideal RDF feedstock. Photo of AC Cardboard Bales and Pallets The local Health Center is one of the larg pace available for volume of waste produced by the hospital. Figure 2-4 shows an overflowing roll clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival The Alaska Commercial Company Value Center produces the largest volume of , through the packaging of all of the products it sells Cardboard is separated from the common waste stream and baled onsi sorted output of this facility is Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of below shows a pile of pallets and baled cardboard, The local Health Center is one of the largest institutions in Kotzebue pace available for refuse containers is not sufficient for the shows an overflowing roll clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the congestion of waste at the Health Center. Specific volumes of RDF pro ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival The Alaska Commercial Company Value Center produces the largest volume of , through the packaging of all of the products it sells Cardboard is separated from the common waste stream and baled onsite. The AC produces between 9 sorted output of this facility is estimated Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of f pallets and baled cardboard, est institutions in Kotzebue refuse containers is not sufficient for the shows an overflowing roll-off at the hospital, and clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the produced by the Health Center are ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival December 2012 The Alaska Commercial Company Value Center produces the largest volume of , through the packaging of all of the products it sells te. The AC produces between 9 estimated at 25 Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of f pallets and baled cardboard, est institutions in Kotzebue. Waste is an refuse containers is not sufficient for the off at the hospital, and clearly shows the large percentage of cardboard and paper materials in the waste stream. A container for cardboard, paper, and wood only can be placed in another location and reduce the duced by the Health Center are ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival December 2012 The Alaska Commercial Company Value Center produces the largest volume of , through the packaging of all of the products it sells. te. The AC produces between 9- at 25 to 50 Paper and wood (pallets, etc) can be separated by employees in the same bin that baled up. Including paper and wood, the AC may produce as much as 100 tons per year of f pallets and baled cardboard,which . Waste is an refuse containers is not sufficient for the off at the hospital, and A container for cardboard, paper, and wood only can be placed in another location and reduce the duced by the Health Center are ; it is expected that the cardboard volume, supplemented by significant paper waste, could rival KOTZEBUE BIOMASS 3-5 Figure Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. AC has the potential to provide up to 100 tons per potentially add an equal volume of cardboard and paper product. Source may provide 5 2.2.2 INCENTIVIZING SOU An incentive program will be sorting system. operational procedure for cu reduced fees for companies participating in the program, or increased f A model program that this can be based on is Sitka, a town roughly twice the siz similar opportunity to reduce landfilled waste. KOTZEBUE BIOMASS Figure 2-4:Photo of Maniilaq Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. AC has the potential to provide up to 100 tons per potentially add an equal volume of cardboard and paper product. Source may provide 5-10 tons/year each, or 30 INCENTIVIZING SOU incentive program will be sorting system.This will li operational procedure for cu reduced fees for companies participating in the program, or increased f A model program that this can be based on is Sitka, a town roughly twice the siz similar opportunity to reduce landfilled waste. KOTZEBUE BIOMASS FEASIBILITY STUDY Photo of Maniilaq Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. AC has the potential to provide up to 100 tons per potentially add an equal volume of cardboard and paper product. Source 10 tons/year each, or 30 INCENTIVIZING SOURCE SEPARATION incentive program will be greatly improve the chances of success, at least This will likely be required for several years, operational procedure for customers. Incentives can be applied through the rate system, whether it is reduced fees for companies participating in the program, or increased f A model program that this can be based on is Sitka, a town roughly twice the siz similar opportunity to reduce landfilled waste. FEASIBILITY STUDY Photo of Maniilaq Health Center Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. AC has the potential to provide up to 100 tons per potentially add an equal volume of cardboard and paper product. Source 10 tons/year each, or 30-50 tons/yr aggregate to supplement. RCE SEPARATION greatly improve the chances of success, at least y be required for several years, stomers. Incentives can be applied through the rate system, whether it is reduced fees for companies participating in the program, or increased f A model program that this can be based on is Sitka, a town roughly twice the siz similar opportunity to reduce landfilled waste.Sitka’s voluntary recycling program diverts over 1.4 million FEASIBILITY STUDY Health Center Waste Stream Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. AC has the potential to provide up to 100 tons per year of primarily cardboard and pallets, and Maniilaq can potentially add an equal volume of cardboard and paper product. Source 50 tons/yr aggregate to supplement. greatly improve the chances of success, at least y be required for several years, stomers. Incentives can be applied through the rate system, whether it is reduced fees for companies participating in the program, or increased f A model program that this can be based on is Sitka, a town roughly twice the siz Sitka’s voluntary recycling program diverts over 1.4 million Waste Stream Assuming all commercial enterprises in Kotzebue were incorporated into a source there is the potential to capture 250 tons/year of ready RDF feedstock. year of primarily cardboard and pallets, and Maniilaq can potentially add an equal volume of cardboard and paper product. Source-separation at other installations 50 tons/yr aggregate to supplement. greatly improve the chances of success, at least y be required for several years,and then the system will become standard stomers. Incentives can be applied through the rate system, whether it is reduced fees for companies participating in the program, or increased fees for other waste materials. A model program that this can be based on is Sitka, a town roughly twice the siz Sitka’s voluntary recycling program diverts over 1.4 million Assuming all commercial enterprises in Kotzebue were incorporated into a source-separation project, year of primarily cardboard and pallets, and Maniilaq can separation at other installations greatly improve the chances of success, at least initially, the system will become standard stomers. Incentives can be applied through the rate system, whether it is ees for other waste materials. A model program that this can be based on is Sitka, a town roughly twice the size of Kotzebue but with a Sitka’s voluntary recycling program diverts over 1.4 million December 2012 separation project, year of primarily cardboard and pallets, and Maniilaq can separation at other installations of Kotzebue’s the system will become standard stomers. Incentives can be applied through the rate system, whether it is ees for other waste materials. e of Kotzebue but with a Sitka’s voluntary recycling program diverts over 1.4 million December 2012 separation project, year of primarily cardboard and pallets, and Maniilaq can separation at other installations of Kotzebue’s RDF the system will become standard stomers. Incentives can be applied through the rate system, whether it is e of Kotzebue but with a Sitka’s voluntary recycling program diverts over 1.4 million KOTZEBUE BIOMASS 3-6 pounds of material from landfills each year. month in 201 center6.Adjusted for Kotzebue’s size, t the waste stream This program can also be implemente materials from the local landfill. effective materials to recycle, can be removed from the waste stream either in separation program, or as post The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a program in the city. 2.2.3 POST RDF feedstocks not separated at the source need to be removed from the waste stream at t point.This would recovery facility (MRF). recycling efforts. Figure Source: 5 http://www.sitka.net/sitka/utilities.html 6 http://www.ci KOTZEBUE BIOMASS pounds of material from landfills each year. month in 2011 over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling Adjusted for Kotzebue’s size, t the waste stream. This program can also be implemente materials from the local landfill. effective materials to recycle, can be removed from the waste stream either in separation program, or as post The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a program in the city. POST-CONSUMER MATERIALS R RDF feedstocks not separated at the source need to be removed from the waste stream at t This would likely occur at the Bailer recovery facility (MRF). recycling efforts.Figure ure 2-5:Schematic of Materials Recovery Facility Source:Based on "Energie en grondstoffen in de toekomst" by Robbin Kerrod http://www.sitka.net/sitka/utilities.html http://www.cityofsitka.com/government/departments/publicworks/RecycleSitka.html KOTZEBUE BIOMASS FEASIBILITY STUDY pounds of material from landfills each year. over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling Adjusted for Kotzebue’s size, t This program can also be implemente materials from the local landfill.Aluminum and tin, which are easy to separate and are the most cost effective materials to recycle, can be removed from the waste stream either in separation program, or as post-consumer sorting. The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a CONSUMER MATERIALS R RDF feedstocks not separated at the source need to be removed from the waste stream at t likely occur at the Bailer recovery facility (MRF).MRF’s are common only in large cities, where waste volumes warrant large Figure 2-5 is a stylized Schematic of Materials Recovery Facility "Energie en grondstoffen in de toekomst" by Robbin Kerrod http://www.sitka.net/sitka/utilities.html tyofsitka.com/government/departments/publicworks/RecycleSitka.html FEASIBILITY STUDY pounds of material from landfills each year.According to the city recycling website, over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling Adjusted for Kotzebue’s size, that is equivalent This program can also be implemented along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost effective materials to recycle, can be removed from the waste stream either in consumer sorting. The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a CONSUMER MATERIALS RECOVERY RDF feedstocks not separated at the source need to be removed from the waste stream at t likely occur at the Bailer building MRF’s are common only in large cities, where waste volumes warrant large stylized schematic of a mechanized RDF system in operation. Schematic of Materials Recovery Facility "Energie en grondstoffen in de toekomst" by Robbin Kerrod tyofsitka.com/government/departments/publicworks/RecycleSitka.html FEASIBILITY STUDY According to the city recycling website, over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling hat is equivalent to over 300 tons per year of feedstock diverted from d along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost effective materials to recycle, can be removed from the waste stream either in The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a ECOVERY RDF feedstocks not separated at the source need to be removed from the waste stream at t uilding. Post-consumer MRF’s are common only in large cities, where waste volumes warrant large schematic of a mechanized RDF system in operation. Schematic of Materials Recovery Facility "Energie en grondstoffen in de toekomst" by Robbin Kerrod tyofsitka.com/government/departments/publicworks/RecycleSitka.html According to the city recycling website, over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling over 300 tons per year of feedstock diverted from d along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost effective materials to recycle, can be removed from the waste stream either in The City of Kotzebue recently implemented a can waste collection system for its residents. The program has already met with success, and is a good sign for the implementation of a source RDF feedstocks not separated at the source need to be removed from the waste stream at t consumer refuse MRF’s are common only in large cities, where waste volumes warrant large schematic of a mechanized RDF system in operation. "Energie en grondstoffen in de toekomst" by Robbin Kerrod tyofsitka.com/government/departments/publicworks/RecycleSitka.html According to the city recycling website,RecycleSITKA over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling over 300 tons per year of feedstock diverted from d along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost effective materials to recycle, can be removed from the waste stream either in conjunction with a source The City of Kotzebue recently implemented a can waste collection system for its residents. The program has source-separation and/or recycling RDF feedstocks not separated at the source need to be removed from the waste stream at t refuse separation occurs MRF’s are common only in large cities, where waste volumes warrant large schematic of a mechanized RDF system in operation. December 2012 RecycleSITKA5,in one over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling over 300 tons per year of feedstock diverted from d along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost conjunction with a source The City of Kotzebue recently implemented a can waste collection system for its residents. The program has separation and/or recycling RDF feedstocks not separated at the source need to be removed from the waste stream at the waste transfer occurs in a materials MRF’s are common only in large cities, where waste volumes warrant large schematic of a mechanized RDF system in operation. December 2012 in one over 50 tons of cardboard, newspaper, and mixed paper were brought to the city recycling over 300 tons per year of feedstock diverted from d along with a recycling program in Kotzebue to divert additional Aluminum and tin, which are easy to separate and are the most cost- conjunction with a source- The City of Kotzebue recently implemented a can waste collection system for its residents. The program has separation and/or recycling he waste transfer in a materials MRF’s are common only in large cities, where waste volumes warrant large-scale KOTZEBUE BIOMASS 3-7 The majority of employees separating various contaminants and recyclable materials from the waste stream. relatively Manual processing into the Bailer building, with the discard m 2.2.4 RDF SUMMARY A RDF-based biomass energy system in desired cardboard avoidance of contaminants in the RDF stream. which leads to a certain cardboard, paper and wood from the waste stream capture rate is increased to 60%, that number jumps to well-organized source An RDF sorting system can also be combi (tin, aluminum) and potentially glass form the Kotzebue waste s acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost 30% of material going into Kotzebue’s landfill. the landfill is nearly halved. 2.3 MSW ENERGY CONTENT Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con conducted by UCF 7 Reinhart, Debora. http://www.msw.cecs.ucf.edu/Thermochemical%20Conversion.ppt KOTZEBUE BIOMASS he majority of MRF’s, even in large employees separating various contaminants and recyclable materials from the waste stream. relatively small volumes of material being processed, a mechanized system does not make financial sense. Manual processing into the Bailer building, with the discard m RDF SUMMARY based biomass energy system in desired cardboard-paper avoidance of contaminants in the RDF stream. which leads to a certain cardboard, paper and wood from the waste stream capture rate is increased to 60%, that number jumps to organized source-separation system in place. An RDF sorting system can also be combi (tin, aluminum) and potentially glass form the Kotzebue waste s acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost 30% of material going into Kotzebue’s landfill. the landfill is nearly halved. MSW ENERGY CONTENT Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con conducted by UCF7 was used as the basis of the analysis. Reinhart, Debora. http://www.msw.cecs.ucf.edu/Thermochemical%20Conversion.ppt KOTZEBUE BIOMASS FEASIBILITY STUDY , even in large employees separating various contaminants and recyclable materials from the waste stream. small volumes of material being processed, a mechanized system does not make financial sense. Manual processing into large rolling bins is the likely mode of RDF separation. It is assumed this will occur in the Bailer building, with the discard m RDF SUMMARY based biomass energy system in paper-wood fraction avoidance of contaminants in the RDF stream. which leads to a certain amount passing unnoticed cardboard, paper and wood from the waste stream capture rate is increased to 60%, that number jumps to separation system in place. An RDF sorting system can also be combi (tin, aluminum) and potentially glass form the Kotzebue waste s acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost 30% of material going into Kotzebue’s landfill. the landfill is nearly halved. MSW ENERGY CONTENT Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con was used as the basis of the analysis. Reinhart, Debora.Estimation of Energy Content in MSW http://www.msw.cecs.ucf.edu/Thermochemical%20Conversion.ppt FEASIBILITY STUDY , even in large metropolitan areas employees separating various contaminants and recyclable materials from the waste stream. small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in the Bailer building, with the discard material continuing to be baled. based biomass energy system in Kotzebue wood fraction, due to the difficulties inherent with avoidance of contaminants in the RDF stream.Rather than sorting the contaminants out of the amount passing unnoticed cardboard, paper and wood from the waste stream capture rate is increased to 60%, that number jumps to separation system in place. An RDF sorting system can also be combined with a recycling effort in the city, separating recyclable metals (tin, aluminum) and potentially glass form the Kotzebue waste s acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost 30% of material going into Kotzebue’s landfill.If all combustible materials are captured, the amount goi Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con was used as the basis of the analysis. Estimation of Energy Content in MSW http://www.msw.cecs.ucf.edu/Thermochemical%20Conversion.ppt FEASIBILITY STUDY metropolitan areas, are mostly or entirely employees separating various contaminants and recyclable materials from the waste stream. small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in aterial continuing to be baled. Kotzebue is conservatively assumed to the difficulties inherent with Rather than sorting the contaminants out of the amount passing unnoticed into the energy plant cardboard, paper and wood from the waste stream.Total capture is 320 tons per year of material. If the capture rate is increased to 60%, that number jumps to over with a recycling effort in the city, separating recyclable metals (tin, aluminum) and potentially glass form the Kotzebue waste s acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost If all combustible materials are captured, the amount goi Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con was used as the basis of the analysis. Estimation of Energy Content in MSW http://www.msw.cecs.ucf.edu/Thermochemical%20Conversion.ppt , are mostly or entirely employees separating various contaminants and recyclable materials from the waste stream. small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in aterial continuing to be baled. conservatively assumed to the difficulties inherent with Rather than sorting the contaminants out of the into the energy plant, this methodology will separate Total capture is 320 tons per year of material. If the over 380 tons per year, a with a recycling effort in the city, separating recyclable metals (tin, aluminum) and potentially glass form the Kotzebue waste stream.Even assuming a capture rate of 50% acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost If all combustible materials are captured, the amount goi Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con Estimation of Energy Content in MSW. University of Central Florida. 2004. , are mostly or entirely operated manually, with employees separating various contaminants and recyclable materials from the waste stream. small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in conservatively assumed to achieve 50% recovery of the the difficulties inherent with hand-sorting and emphasis on Rather than sorting the contaminants out of the , this methodology will separate Total capture is 320 tons per year of material. If the r year, an achievable rate with a with a recycling effort in the city, separating recyclable metals Even assuming a capture rate of 50% acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost If all combustible materials are captured, the amount goi Energy content of the materials in Kotzebue’s waste stream was calculated based on generally vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con . University of Central Florida. 2004. December 2012 operated manually, with employees separating various contaminants and recyclable materials from the waste stream.Due to the small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in 50% recovery of the sorting and emphasis on Rather than sorting the contaminants out of the RDF stream, , this methodology will separate Total capture is 320 tons per year of material. If the achievable rate with a with a recycling effort in the city, separating recyclable metals Even assuming a capture rate of 50% acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost If all combustible materials are captured, the amount goi Energy content of the materials in Kotzebue’s waste stream was calculated based on generally-accepted vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy con . University of Central Florida. 2004. December 2012 operated manually, with Due to the small volumes of material being processed, a mechanized system does not make financial sense. large rolling bins is the likely mode of RDF separation. It is assumed this will occur in 50% recovery of the sorting and emphasis on stream, , this methodology will separate Total capture is 320 tons per year of material. If the achievable rate with a with a recycling effort in the city, separating recyclable metals Even assuming a capture rate of 50% acquisition of RDF material, combined with recycling of aluminum and tin, can equal a reduction of almost If all combustible materials are captured, the amount going to accepted vales for the materials’ Btu content. A study of tested values for sorted MSW material Energy contents, . University of Central Florida. 2004. KOTZEBUE BIOMASS 3-8 Table Source: University of Central Florida, Tetra Tech analysis The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of 8,154 MM Btu per year. Tetra Tech recommen determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rat feedstock source should be combined with test characteristics, emission profile, and required equipment for combustion (pre 2.4 CONSTRUCTION AND DEM 2.4.1 PRIMARY SOURCED Pallets are a likely collected by source the pallets not collected for this purpose. pallets for shipping instead of plastic pallets. Constructi waste derived from byproducts of the construction industry, such as planks, and materials removed from buildings during remodeling or demolitions. non-contamin stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the Material Cardboard FoodWaste Paper Plastics Metal Wood Glass Textiles Rubber Leather GardenTrimmings Other Total Paper, Cardboard& WoodFraction KOTZEBUE BIOMASS Table 2-2: Kotzebue Municipal Solid Waste (MSW) Energy Content Source: University of Central Florida, Tetra Tech analysis The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of 8,154 MM Btu per year. Tetra Tech recommen determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rat feedstock source should be combined with test characteristics, emission profile, and required equipment for combustion (pre CONSTRUCTION AND DEM PRIMARY SOURCED Pallets are a likely additional resource an RDF boiler system. collected by city residents source the pallets not collected for this purpose. pallets for shipping instead of plastic pallets. Construction and demolition wastes waste derived from byproducts of the construction industry, such as planks, and materials removed from buildings during remodeling or demolitions. contaminated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the Material Cardboard FoodWaste Paper Plastics Metal Wood Textiles Rubber Leather GardenTrimmings Other Paper, Cardboard& WoodFraction KOTZEBUE BIOMASS FEASIBILITY STUDY : Kotzebue Municipal Solid Waste (MSW) Energy Content Source: University of Central Florida, Tetra Tech analysis The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of 8,154 MM Btu per year. Tetra Tech recommends laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rat feedstock source should be combined with test characteristics, emission profile, and required equipment for combustion (pre CONSTRUCTION AND DEM PRIMARY SOURCED additional resource an RDF boiler system. city residents to be burned in home fireplaces source the pallets not collected for this purpose. pallets for shipping instead of plastic pallets. on and demolition wastes are also considered waste derived from byproducts of the construction industry, such as planks, and materials removed from buildings during remodeling or demolitions. ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the Paper, Cardboard& WoodFraction FEASIBILITY STUDY : Kotzebue Municipal Solid Waste (MSW) Energy Content Source: University of Central Florida, Tetra Tech analysis The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rat feedstock source should be combined with test-burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre CONSTRUCTION AND DEMOLITION WASTE (C&D) additional resource an RDF boiler system. to be burned in home fireplaces source the pallets not collected for this purpose. pallets for shipping instead of plastic pallets. are also considered waste derived from byproducts of the construction industry, such as planks, and materials removed from buildings during remodeling or demolitions. ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the HeatValue (Btu/lbdryweight) Paper, Cardboard& WoodFraction FEASIBILITY STUDY : Kotzebue Municipal Solid Waste (MSW) Energy Content Source: University of Central Florida, Tetra Tech analysis The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rat burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre OLITION WASTE (C&D) additional resource an RDF boiler system.A portion of the used pallet supply in Kotzebue is to be burned in home fireplaces.It is expected that the source the pallets not collected for this purpose.The total supply can be increased by requesting wood are also considered as additional waste derived from byproducts of the construction industry, such as planks, and materials removed from buildings during remodeling or demolitions. ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the HeatValue (Btu/lbdryweight) HeatValue (Btu/day) 7,000 11,072,705 2,000 7,200 14,000 14,658,230 - 8,000 - 7,500 10,000 7,500 2,800 - 32,661,000 22,339,000 : Kotzebue Municipal Solid Waste (MSW) Energy Content The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values. sample product can also help to indicate expected product capture rate. Laboratory characterization of the burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre OLITION WASTE (C&D) A portion of the used pallet supply in Kotzebue is It is expected that the The total supply can be increased by requesting wood as additional feedsto waste derived from byproducts of the construction industry, such as warped planks, and materials removed from buildings during remodeling or demolitions. ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the HeatValue (Btu/day)(MMBtu/year) 11,072,705 993,699 8,488,045 14,658,230 - 2,778,082 - 1,662,842 2,463,470 1,616,652 - - 32,661,000 22,339,000 The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values. e. Laboratory characterization of the burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre-processing, ash handling, etc). A portion of the used pallet supply in Kotzebue is It is expected that the biomass energy plant will The total supply can be increased by requesting wood feedstock.This category involves wood warped or otherwise unusable wood planks, and materials removed from buildings during remodeling or demolitions.This category only refers to ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the HeatValue (MMBtu/year) 4,041.5 362.7 3,098.1 5,350.3 - 1,014.0 - 606.9 899.2 590.1 - - 11,921 8,154 December 2012 The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year. paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to determine actual energetic value of the material, as well as contaminants and other values.Collection of e. Laboratory characterization of the burns in the selected conversion technology to solidify burn processing, ash handling, etc). A portion of the used pallet supply in Kotzebue is biomass energy plant will The total supply can be increased by requesting wood This category involves wood or otherwise unusable wood This category only refers to ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the December 2012 The theoretical limit energy content available from Kotzebue’s waste stream is 11,921 MM Btu per year.The paper, wood and cardboard (RDF) fraction of waste, if 100% captured and utilized, contained a maximum of ds laboratory analysis of representative samples of the combustible material to Collection of e. Laboratory characterization of the burns in the selected conversion technology to solidify burn processing, ash handling, etc). A portion of the used pallet supply in Kotzebue is biomass energy plant will The total supply can be increased by requesting wood This category involves wood or otherwise unusable wood This category only refers to ated wood products, and does not include wood with coatings or treatments, such as paints or stains, preservatives, etc. or wood with plaster or other construction materials imbedded or stuck to the KOTZEBUE BIOMASS 3-9 wood.Nails, staples, and other inert metals are safe fo removed with the bottom ash at the end of the combustion cycle. 2.4.2 LANDFILL ‘MINING’ It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard from the city landfil loss; it does not produce an equivalent amount of energy as that required for the harvesting process. practice may also conflict with several state waste co 2.5 ALTERNATIVE The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i into Kotzebue from elsewhere in Alaska or from abroad. wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons produced worldwide as of 2010. been found to carry significant life Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. delivered ton. Pellets as a supplementary high cardboard purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. difference between pellets and briquettes Pellets are also would cost only $21.50, less than half the price of heating fuel. briquettes, in addition to the environmental benefits of the biomass fuel. KOTZEBUE BIOMASS Nails, staples, and other inert metals are safe fo removed with the bottom ash at the end of the combustion cycle. LANDFILL ‘MINING’ It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard from the city landfill.Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. practice may also conflict with several state waste co ALTERNATIVE The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i into Kotzebue from elsewhere in Alaska or from abroad. wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons produced worldwide as of 2010. been found to carry significant life Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. delivered ton. Pellets as a supplementary high cardboard-content material improves combustion characteristics purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. difference between pellets and briquettes Pellets are also much more cost would cost $45.00 for 1 MM Btu of heating value. only $21.50, less than half the price of heating fuel. briquettes, in addition to the environmental benefits of the biomass fuel. KOTZEBUE BIOMASS FEASIBILITY STUDY Nails, staples, and other inert metals are safe fo removed with the bottom ash at the end of the combustion cycle. LANDFILL ‘MINING’ It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. practice may also conflict with several state waste co FEEDSTOCK SOURCES The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i into Kotzebue from elsewhere in Alaska or from abroad. wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons produced worldwide as of 2010.If prod been found to carry significant life-cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. Pellets as a supplementary fuel carry several benefits. content material improves combustion characteristics purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. difference between pellets and briquettes more cost-effective than heating fuel. for 1 MM Btu of heating value. only $21.50, less than half the price of heating fuel. briquettes, in addition to the environmental benefits of the biomass fuel. FEASIBILITY STUDY Nails, staples, and other inert metals are safe fo removed with the bottom ash at the end of the combustion cycle. It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. practice may also conflict with several state waste co FEEDSTOCK SOURCES The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i into Kotzebue from elsewhere in Alaska or from abroad. wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons If produced from timber industry byproducts, pellets and briquettes have cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. fuel carry several benefits. content material improves combustion characteristics purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. difference between pellets and briquettes;either would be satisfactory additions to an RDF boiler. effective than heating fuel. for 1 MM Btu of heating value. only $21.50, less than half the price of heating fuel. briquettes, in addition to the environmental benefits of the biomass fuel. FEASIBILITY STUDY Nails, staples, and other inert metals are safe for use i removed with the bottom ash at the end of the combustion cycle. It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. practice may also conflict with several state waste control regulations. The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i into Kotzebue from elsewhere in Alaska or from abroad.Pellets and briquettes produced as byproducts from wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons uced from timber industry byproducts, pellets and briquettes have cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue. fuel carry several benefits.For one, v content material improves combustion characteristics purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. either would be satisfactory additions to an RDF boiler. effective than heating fuel.At That same 1 MM Btu of heating value only $21.50, less than half the price of heating fuel.It therefore makes financial sense to purchase pellets or briquettes, in addition to the environmental benefits of the biomass fuel. r use in an RDF combustion system and removed with the bottom ash at the end of the combustion cycle. It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. ntrol regulations. The project scope also called for evaluation of alternative feedstock sources. alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i Pellets and briquettes produced as byproducts from wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons uced from timber industry byproducts, pellets and briquettes have cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are producing significant volumes available for export to Kotzebue.Prices are quoted For one, vendors have content material improves combustion characteristics in their RDF boilers purchased pellets can be used to increase the output of a system limited better matching the demand needs of the end user of the produced energy. either would be satisfactory additions to an RDF boiler. At current heating fuel prices of That same 1 MM Btu of heating value therefore makes financial sense to purchase pellets or briquettes, in addition to the environmental benefits of the biomass fuel. n an RDF combustion system and It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. The project scope also called for evaluation of alternative feedstock sources.Tetra Tech found only one alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes i Pellets and briquettes produced as byproducts from wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons uced from timber industry byproducts, pellets and briquettes have cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are quoted in the range of $300 per have noted that blending wood to a in their RDF boilers purchased pellets can be used to increase the output of a system limited by locally-available feedstocks, better matching the demand needs of the end user of the produced energy.Particle size is the major either would be satisfactory additions to an RDF boiler. current heating fuel prices of That same 1 MM Btu of heating value in pellet would cost therefore makes financial sense to purchase pellets or December 2012 n an RDF combustion system and will be It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process. Tetra Tech found only one alternative feedstock source for the proposed biomass energy system; wood pellets / briquettes imported Pellets and briquettes produced as byproducts from wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons uced from timber industry byproducts, pellets and briquettes have cycle emissions and other environmental benefits to fossil fuel use. Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are in the range of $300 per that blending wood to a in their RDF boilers.As well, available feedstocks, Particle size is the major either would be satisfactory additions to an RDF boiler. current heating fuel prices of $6.04/gallon, in pellet would cost therefore makes financial sense to purchase pellets or December 2012 will be It is expected that landfill mining will be limited to choice picking of uncontaminated wood and cardboard Transport of entire bales for deconstruction and harvesting of ‘feedstock’ is likely a net loss; it does not produce an equivalent amount of energy as that required for the harvesting process.The Tetra Tech found only one such mported Pellets and briquettes produced as byproducts from wood harvests or mill operations are a rapidly growing heating fuel source, with over 14 million tons uced from timber industry byproducts, pellets and briquettes have Superior Pellet Fuels of Fairbanks is the only Alaskan producer of volume, but Canada and the lower 48 are in the range of $300 per that blending wood to a As well, available feedstocks, Particle size is the major $6.04/gallon,it in pellet would cost therefore makes financial sense to purchase pellets or KOTZEBUE BIOMASS 3-1 3 TECHNOLOGY EVALUATIO Tetra Tech reviewed major project conditions thus far determined. for a biomass 3.1 ENERGY GENERATION TE The options evaluat MSW and gasification systems for bulk unsorted MSW. E determine which technology platform can most cost to implement considering the site operations and location, conditions, experience with com vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to each given technology. Figure 3-1 conversion pathways of combustion and gasification Kotzebue than pyrolysis or biochemical conversion pathways Figure Source: NREL KOTZEBUE BIOMASS TECHNOLOGY EVALUATIO Tetra Tech reviewed major project conditions thus far determined. biomass energy plant ENERGY GENERATION TE The options evaluated included s MSW and gasification systems for bulk unsorted MSW. E determine which technology platform can most cost to implement considering the site operations and location, conditions,and is commercially available for full scale operation. Evaluations are based on previous experience with comparable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to each given technology. 1 illustrates the various pathways to conversion pathways of combustion and gasification Kotzebue than pyrolysis or biochemical conversion pathways Figure 3-1:Waste Source: NREL KOTZEBUE BIOMASS FEASIBILITY STUDY TECHNOLOGY EVALUATIO Tetra Tech reviewed major biomass energy generation project conditions thus far determined. plant in Kotzebue ENERGY GENERATION TECHNOLOGIES ed included standard combustion systems for the paper, cardboard and wood fraction of MSW and gasification systems for bulk unsorted MSW. E determine which technology platform can most cost to implement considering the site operations and location, and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to each given technology. illustrates the various pathways to conversion pathways of combustion and gasification Kotzebue than pyrolysis or biochemical conversion pathways Waste-to-Energy Conversion Pathways FEASIBILITY STUDY TECHNOLOGY EVALUATION biomass energy generation project conditions thus far determined.The following section identifies the most likely process technology in Kotzebue. CHNOLOGIES tandard combustion systems for the paper, cardboard and wood fraction of MSW and gasification systems for bulk unsorted MSW. E determine which technology platform can most cost to implement considering the site operations and location, and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to illustrates the various pathways to produce energy from wastes. This project will focus on thermal conversion pathways of combustion and gasification Kotzebue than pyrolysis or biochemical conversion pathways Energy Conversion Pathways FEASIBILITY STUDY biomass energy generation technology The following section identifies the most likely process technology CHNOLOGIES tandard combustion systems for the paper, cardboard and wood fraction of MSW and gasification systems for bulk unsorted MSW. Each of these technologies was evaluated to determine which technology platform can most cost-effectively utilize the available fu to implement considering the site operations and location,has a history of success under similar operating and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to produce energy from wastes. This project will focus on thermal conversion pathways of combustion and gasification, more applicable to the scale and feedstock available in Kotzebue than pyrolysis or biochemical conversion pathways. Energy Conversion Pathways technology options that are applicable to the general The following section identifies the most likely process technology tandard combustion systems for the paper, cardboard and wood fraction of ach of these technologies was evaluated to effectively utilize the available fu has a history of success under similar operating and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to produce energy from wastes. This project will focus on thermal , more applicable to the scale and feedstock available in options that are applicable to the general The following section identifies the most likely process technology tandard combustion systems for the paper, cardboard and wood fraction of ach of these technologies was evaluated to effectively utilize the available fuel source, is fairly easy has a history of success under similar operating and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to produce energy from wastes. This project will focus on thermal , more applicable to the scale and feedstock available in December 2012 options that are applicable to the general The following section identifies the most likely process technology tandard combustion systems for the paper, cardboard and wood fraction of ach of these technologies was evaluated to el source, is fairly easy has a history of success under similar operating and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to produce energy from wastes. This project will focus on thermal , more applicable to the scale and feedstock available in December 2012 options that are applicable to the general The following section identifies the most likely process technology tandard combustion systems for the paper, cardboard and wood fraction of ach of these technologies was evaluated to el source, is fairly easy has a history of success under similar operating and is commercially available for full scale operation. Evaluations are based on previous parable projects. Ultimate selection of technology may depend on the preferred vendor, as vendors may include specific proprietary improvements, modifications, and interpretations to produce energy from wastes. This project will focus on thermal , more applicable to the scale and feedstock available in KOTZEBUE BIOMASS 3-2 3.1.1 COMBUSTION Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is highly developed commercially and is available in n throughout the world for power generation and heating. easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation reaction. dioxide (CO pollutants and particulates. prefer to select and design specific Air Pollution Control pollution and particulate Combustion is a highly exothermic (net heat output) process; therefore recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of controlled air flo Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. The system is robust and Boilers may either produce steam or hot water for use as a workin as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it requires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. Hydronic b psi. 3.1.2 GASIFICATION Gasifier boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 phases.In these in an oxygen starved pre or used as a fuel in an attached combustion device. process. KOTZEBUE BIOMASS COMBUSTION Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is highly developed commercially and is available in n throughout the world for power generation and heating. easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N dioxide (CO2), and water vapor. pollutants and particulates. prefer to select and design specific Air Pollution Control pollution and particulate Combustion is a highly exothermic (net heat output) process; therefore recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of controlled air flow systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. The system is robust and Boilers may either produce steam or hot water for use as a workin as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. Hydronic boilers recommended of Kotzeb GASIFICATION boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 In these processes, a ‘ in an oxygen starved pre or used as a fuel in an attached combustion device. KOTZEBUE BIOMASS FEASIBILITY STUDY COMBUSTION Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is highly developed commercially and is available in n throughout the world for power generation and heating. easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N ), and water vapor.The off gas pollutants and particulates.The emissions will vary considerably from one vendor to another. prefer to select and design specific Air Pollution Control pollution and particulate emissions. Combustion is a highly exothermic (net heat output) process; therefore recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. The system is robust and proven over many applications. Boilers may either produce steam or hot water for use as a workin as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. recommended of Kotzeb GASIFICATION boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 processes, a ‘synthe in an oxygen starved pre-burn chamber. or used as a fuel in an attached combustion device. FEASIBILITY STUDY Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is highly developed commercially and is available in n throughout the world for power generation and heating. easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N The off gas must be treated to meet regulatory requirements for chemic The emissions will vary considerably from one vendor to another. prefer to select and design specific Air Pollution Control Combustion is a highly exothermic (net heat output) process; therefore recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. proven over many applications. Boilers may either produce steam or hot water for use as a workin as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. recommended of Kotzebue have a working fluid operating at approximately 230 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 synthesis gas fuel’ (syngas), also called ‘producer gas’ burn chamber.The syngas is immediately burned in a second combustion chamber or used as a fuel in an attached combustion device. FEASIBILITY STUDY Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is highly developed commercially and is available in numerous vendor specific designs. It has been used throughout the world for power generation and heating.Incineration technology is well easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N must be treated to meet regulatory requirements for chemic The emissions will vary considerably from one vendor to another. prefer to select and design specific Air Pollution Control (APC) Combustion is a highly exothermic (net heat output) process; therefore recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. proven over many applications. Boilers may either produce steam or hot water for use as a workin as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. have a working fluid operating at approximately 230 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 ’ (syngas), also called ‘producer gas’ The syngas is immediately burned in a second combustion chamber or used as a fuel in an attached combustion device.Figure Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is umerous vendor specific designs. It has been used Incineration technology is well easy to use, and systems using this process have evolved to be robust and long Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N must be treated to meet regulatory requirements for chemic The emissions will vary considerably from one vendor to another. (APC)equipment for each pr Combustion is a highly exothermic (net heat output) process; therefore,the technology lends itself to heat recovery in many applications. It is critical to maintain correct airflow and exposure of complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combus enriched environment, with the thermal energy generated from the combustion used to generate steam. Boilers may either produce steam or hot water for use as a working fluid. More commonly, these are known as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. have a working fluid operating at approximately 230 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 ’ (syngas), also called ‘producer gas’ The syngas is immediately burned in a second combustion chamber Figure 3-2 provides an outlined illu Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is umerous vendor specific designs. It has been used Incineration technology is well easy to use, and systems using this process have evolved to be robust and long-lasting investments. Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N must be treated to meet regulatory requirements for chemic The emissions will vary considerably from one vendor to another. equipment for each project that addresses the technology lends itself to heat recovery in many applications. It is critical to maintain correct airflow and exposure of the fuel bed to ensure complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and maintenance. The stoker boiler process simply involves traditional combustion of feedstock in an oxygen enriched environment, with the thermal energy generated from the combustion used to generate steam. g fluid. More commonly, these are known as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. have a working fluid operating at approximately 230 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 ’ (syngas), also called ‘producer gas’is created from the The syngas is immediately burned in a second combustion chamber provides an outlined illu December 2012 Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is umerous vendor specific designs. It has been used Incineration technology is well-established and lasting investments. Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation Waste products are an ash residue and an off gas made up of predominantly nitrogen (N2), carbon must be treated to meet regulatory requirements for chemic The emissions will vary considerably from one vendor to another.Most vendors oject that addresses the technology lends itself to heat the fuel bed to ensure complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of w systems including induced draft, forced air, and over fire/under fire systems. Stoker boilers are most commonly used in existing industrial operations due to their ease of use and tion of feedstock in an oxygen enriched environment, with the thermal energy generated from the combustion used to generate steam. g fluid. More commonly, these are known as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. have a working fluid operating at approximately 230°F and 58 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 is created from the The syngas is immediately burned in a second combustion chamber provides an outlined illustration of this December 2012 Combustion can be defined as the burning of fuel to produce power and heat. The combustion process is umerous vendor specific designs. It has been used established and lasting investments. Combustion occurs with oxygen in slight stoichiometric excess to rapidly complete the thermal oxidation ), carbon must be treated to meet regulatory requirements for chemical ost vendors oject that addresses the technology lends itself to heat the fuel bed to ensure complete, clean, and efficient combustion. This is done by a combination of methods, including rotating kilns, fluidized bed reactors, and traveling grates. All of the systems work in conjunction with any number of Stoker boilers are most commonly used in existing industrial operations due to their ease of use and tion of feedstock in an oxygen enriched environment, with the thermal energy generated from the combustion used to generate steam. g fluid. More commonly, these are known as steam boilers or hydronic boilers. The working fluid is used as a medium to transport thermal energy produced by the boiler to the desired user. Steam is a more efficient medium for heat transfer, however it quires a greater rate of thermal input from the feedstock than hydronic boilers. Steam boilers are generally used for industrial applications, while hydronic boilers are more than sufficient to provide building heat. F and 58 boilers increase efficiency as compared to stoker boilers by separating the combustion process into 2 is created from the MSW The syngas is immediately burned in a second combustion chamber stration of this KOTZEBUE BIOMASS 3-3 This second destruction stage results in environmental and energy performance. source from a solid to a gas in the stage 1 primary chamber. at higher tempera increases the maximum operational efficiency of any system according to These higher temperatures and pressures also allow for easier re NOX), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of other MSW comb Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added improve overall system efficiency by: decreasing the man reducing the need for pre and increasing accommodated by this tires, fish and animal remains, waste wood, and others. Inert material mixed in with MSW can more easily be separated from the ash after the reaction is complete and later recycled (if desired). 8 National Renewable Energy Laborat http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 Stage 1 Figure KOTZEBUE BIOMASS This second destruction stage results in environmental and energy performance. source from a solid to a gas in the stage 1 primary chamber. at higher temperatures and pressures than solid fuel. Combustion at higher temperatures and pressures increases the maximum operational efficiency of any system according to These higher temperatures and pressures also allow for easier re ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of other MSW combustibles such as non Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added improve overall system efficiency by: decreasing the man reducing the need for pre and increasing reliability by diversifying the project feedstock portfolio. Feedstocks that can be accommodated by this tires, fish and animal remains, waste wood, and others. Inert material mixed in with MSW can more easily be separated from the ash after the reaction is complete and later recycled (if desired). National Renewable Energy Laborat http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 Stage 1 •Raw MSW input •Starved O2environment •1200-1500° •Wastes turned to ash & combustible 'syngas' Figure 3-2: Advanced Combustion 2 KOTZEBUE BIOMASS FEASIBILITY STUDY This second destruction stage results in environmental and energy performance. source from a solid to a gas in the stage 1 primary chamber. tures and pressures than solid fuel. Combustion at higher temperatures and pressures increases the maximum operational efficiency of any system according to These higher temperatures and pressures also allow for easier re ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of ustibles such as non Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added improve overall system efficiency by: decreasing the man reducing the need for pre-processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be accommodated by this technology include: tires, fish and animal remains, waste wood, and others. Inert material mixed in with MSW can more easily be separated from the ash after the reaction is complete and later National Renewable Energy Laboratory. http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 Raw MSW input environment °F Wastes turned combustible : Advanced Combustion 2 FEASIBILITY STUDY This second destruction stage results in a higher environmental and energy performance.The key to this improved performance is the conversion of the fuel source from a solid to a gas in the stage 1 primary chamber. tures and pressures than solid fuel. Combustion at higher temperatures and pressures increases the maximum operational efficiency of any system according to These higher temperatures and pressures also allow for easier re ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of ustibles such as non-recyclable plastics within the fuel source. Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added improve overall system efficiency by: decreasing the man processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be technology include:untreated/unsorted MSW, construction and demolition waste, tires, fish and animal remains, waste wood, and others. Inert material mixed in with MSW can more easily be separated from the ash after the reaction is complete and later ory.Advantages of Gasification http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 Stage 2 •Syngas combusted in afterburner •1800 •Retention time 2- •Combination of temp. and time destroys many POPs : Advanced Combustion 2-Stage Process Description FEASIBILITY STUDY higher efficiency of The key to this improved performance is the conversion of the fuel source from a solid to a gas in the stage 1 primary chamber.This is because gaseous fuels can be combusted tures and pressures than solid fuel. Combustion at higher temperatures and pressures increases the maximum operational efficiency of any system according to These higher temperatures and pressures also allow for easier re ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of recyclable plastics within the fuel source. Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added improve overall system efficiency by: decreasing the man-hours needed to separate wastes, significantly processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be untreated/unsorted MSW, construction and demolition waste, tires, fish and animal remains, waste wood, and others. Inert material mixed in with MSW can more easily be separated from the ash after the reaction is complete and later Advantages of Gasification http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 Stage 2 Syngas combusted in afterburner 1800°F Retention time -3 seconds Combination of temp. and time destroys many POPs Stage Process Description efficiency of conversion The key to this improved performance is the conversion of the fuel This is because gaseous fuels can be combusted tures and pressures than solid fuel. Combustion at higher temperatures and pressures increases the maximum operational efficiency of any system according to Carnot’s rule of thermodynamics. These higher temperatures and pressures also allow for easier removal of sulfur and nitrous oxides (SO ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of recyclable plastics within the fuel source. Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added hours needed to separate wastes, significantly processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be untreated/unsorted MSW, construction and demolition waste, tires, fish and animal remains, waste wood, and others. Inert materials such as glass and metals that may be mixed in with MSW can more easily be separated from the ash after the reaction is complete and later Advantages of Gasification. http://www.netl.doe.gov/technologies/coalpower/gasification/gasifipedia/7 -advantages/index.html Retention time Combination of temp. and time destroys many Stage Process Description conversion for the fuel, and improved The key to this improved performance is the conversion of the fuel This is because gaseous fuels can be combusted tures and pressures than solid fuel. Combustion at higher temperatures and pressures Carnot’s rule of thermodynamics. moval of sulfur and nitrous oxides (SO ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc. improvements provided by increased temperatures also allow for the environmentally responsible use of recyclable plastics within the fuel source. Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the need for preprocessing and sorting of the MSW feedstock in question. This added feedstock flexibility would hours needed to separate wastes, significantly processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be untreated/unsorted MSW, construction and demolition waste, s such as glass and metals that may be mixed in with MSW can more easily be separated from the ash after the reaction is complete and later advantages/index.html Outputs •Thermal energy from stage 2 •Non-hazardous ash from stage 1 •Air emissions (see table 6) December 2012 the fuel, and improved The key to this improved performance is the conversion of the fuel This is because gaseous fuels can be combusted tures and pressures than solid fuel. Combustion at higher temperatures and pressures Carnot’s rule of thermodynamics. moval of sulfur and nitrous oxides (SO ), and trace contaminants such as mercury, arsenic, selenium, cadmium, etc.8 Environmental improvements provided by increased temperatures also allow for the environmentally responsible use of Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the feedstock flexibility would hours needed to separate wastes, significantly processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be untreated/unsorted MSW, construction and demolition waste, s such as glass and metals that may be mixed in with MSW can more easily be separated from the ash after the reaction is complete and later advantages/index.html Outputs Thermal energy from stage 2 hazardous ash from stage 1 Air emissions (see table 6) December 2012 the fuel, and improved The key to this improved performance is the conversion of the fuel This is because gaseous fuels can be combusted tures and pressures than solid fuel. Combustion at higher temperatures and pressures Carnot’s rule of thermodynamics. moval of sulfur and nitrous oxides (SOX, and Environmental improvements provided by increased temperatures also allow for the environmentally responsible use of Gasifier systems offer the benefit of being able to accommodate a wide range of feedstocks, thus limiting the feedstock flexibility would hours needed to separate wastes, significantly processing of waste material, increasing the system’s energy generation potential, reliability by diversifying the project feedstock portfolio. Feedstocks that can be untreated/unsorted MSW, construction and demolition waste, s such as glass and metals that may be mixed in with MSW can more easily be separated from the ash after the reaction is complete and later KOTZEBUE BIOMASS 3-4 Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas. continue to completion, continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to perform maintenance. Previous gasification applications installed in the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c recommended. per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, the need to const which initiates the primary reaction. batch system would be nearly equal to the fuel oil dis will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the Waste oils can be used for this requirement. 3.2 ELECTRICITY PRODUCTI Biomass-fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. water is heated to pressure in a multistage turbine either condensed or, more often in biomass pressure stream or hot water is well understood and steam turbines enjoy the benefit of a relatively long lifespan. However, it is the working experience of Tetra Te electricity production via CHP or direct electricity production is not financially feasible for projects of th scale available in Kotzebue up boiler costs and operational expenditures. based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both combustibles and non KOTZEBUE BIOMASS Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas. continue to completion, continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to perform maintenance. Previous gasification applications installed in the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c recommended.A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, the need to constantly re which initiates the primary reaction. batch system would be nearly equal to the fuel oil dis will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the Waste oils can be used for this requirement. ELECTRICITY PRODUCTI fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. heated to generate pressure in a multistage turbine either condensed or, more often in biomass pressure stream or hot water is well understood and steam turbines enjoy the benefit of a relatively long lifespan. However, it is the working experience of Tetra Te electricity production via CHP or direct electricity production is not financially feasible for projects of th available in Kotzebue up boiler costs and operational expenditures. based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both combustibles and non-combustible KOTZEBUE BIOMASS FEASIBILITY STUDY Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas. continue to completion,and then the system is shut down to remove ash before re continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to perform maintenance. Previous gasification applications installed in the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, antly re-start the batch system from a cooled stage greatly increases the need for fuel oil which initiates the primary reaction. batch system would be nearly equal to the fuel oil dis will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the Waste oils can be used for this requirement. ELECTRICITY PRODUCTION fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. generate high pressure steam by the pressure in a multistage turbine as it either condensed or, more often in biomass pressure stream or hot water to process heat, space heating, or other applications is well understood and steam turbines enjoy the benefit of a relatively long lifespan. However, it is the working experience of Tetra Te electricity production via CHP or direct electricity production is not financially feasible for projects of th available in Kotzebue.As well, p up boiler costs and operational expenditures. based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both combustibles) totals approximately 3.5 TPD. FEASIBILITY STUDY Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas. the system is shut down to remove ash before re continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Previous gasification applications installed in Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil which initiates the primary reaction.Information for the vendors batch system would be nearly equal to the fuel oil dis will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the Waste oils can be used for this requirement. ON fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. high pressure steam by the as it expands energy to rotate either condensed or, more often in biomass-based combined heat and power (CHP) installations, process heat, space heating, or other applications is well understood and steam turbines enjoy the benefit of a relatively long lifespan. However, it is the working experience of Tetra Te electricity production via CHP or direct electricity production is not financially feasible for projects of th As well, producing electricity requires high up boiler costs and operational expenditures.A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both s) totals approximately 3.5 TPD. FEASIBILITY STUDY Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas. the system is shut down to remove ash before re continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil Information for the vendors batch system would be nearly equal to the fuel oil displaced by gasifying MSW. A continuously fed system will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. high pressure steam by the boiler. The pressurized steam is expanded to lower energy to rotate based combined heat and power (CHP) installations, process heat, space heating, or other applications is well understood and steam turbines enjoy the benefit of a relatively long lifespan. However, it is the working experience of Tetra Tech and its network electricity production via CHP or direct electricity production is not financially feasible for projects of th roducing electricity requires high A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both s) totals approximately 3.5 TPD. Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the feedstock is heated in a starved oxygen environment to generate syngas.This primary reaction is allowed to the system is shut down to remove ash before re continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a c A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil Information for the vendors indicated that fuel oil requirements for a placed by gasifying MSW. A continuously fed system will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. boiler. The pressurized steam is expanded to lower energy to rotate the turbine and generator based combined heat and power (CHP) installations, process heat, space heating, or other applications is well understood and steam turbines enjoy the benefit of a relatively long lifespan. ch and its network of preferred technology vendors electricity production via CHP or direct electricity production is not financially feasible for projects of th roducing electricity requires high-pressure stea A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both s) totals approximately 3.5 TPD. Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous. systems operate by loading large quantities of feedstock into the primary reaction chamber, where the This primary reaction is allowed to the system is shut down to remove ash before re-loading. Conversely, continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For the proposed systems involving energy production as well as waste destruction, a continuous A drawbacks of batch systems is that, due to their long periods of down per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil indicated that fuel oil requirements for a placed by gasifying MSW. A continuously fed system will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the fired stoker boilers and gasifiers can be coupled with turbines to produce electricity. boiler. The pressurized steam is expanded to lower turbine and generator based combined heat and power (CHP) installations, process heat, space heating, or other applications.Steam turbine technology is well understood and steam turbines enjoy the benefit of a relatively long lifespan. of preferred technology vendors electricity production via CHP or direct electricity production is not financially feasible for projects of th pressure steam production, driving A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both December 2012 Gasifiers are offered in one of two feedstock delivery configurations, batch or continuous.Batch gasification systems operate by loading large quantities of feedstock into the primary reaction chamber, where the This primary reaction is allowed to loading. Conversely, continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For ontinuous-feed system is A drawbacks of batch systems is that, due to their long periods of down-time (10-12 hours per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil indicated that fuel oil requirements for a placed by gasifying MSW. A continuously fed system will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. This system is expected to require only 2.5 gallons of fuel oil per hour to supplement the MSW feedstock. fired stoker boilers and gasifiers can be coupled with turbines to produce electricity.In this process, boiler. The pressurized steam is expanded to lower turbine and generator. The steam is based combined heat and power (CHP) installations,sent as low Steam turbine technology of preferred technology vendors electricity production via CHP or direct electricity production is not financially feasible for projects of th m production, driving A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both December 2012 Batch gasification systems operate by loading large quantities of feedstock into the primary reaction chamber, where the This primary reaction is allowed to loading. Conversely, continuously fed systems introduce feedstock to the gasifier at a constant rate, and are shut down only to Alaska (Barrow, Egegik, Skagway) have been almost entirely of the batch variety, due to these systems relative ease of operation and lessor infrastructure requirements. For feed system is 12 hours per day), are unable to provide a steady source of thermal energy for heat recovery activities. Furthermore, start the batch system from a cooled stage greatly increases the need for fuel oil indicated that fuel oil requirements for a placed by gasifying MSW. A continuously fed system will come at a higher initial price, but will solve the issues presented by collecting heat from a batch system. MSW feedstock. In this process, boiler. The pressurized steam is expanded to lower . The steam is then ent as low Steam turbine technology of preferred technology vendors that electricity production via CHP or direct electricity production is not financially feasible for projects of the m production, driving A generalized decision chart for waste to energy systems based on TPD feedstock input is shown in the Figure below. For reference, all Kotzebue MSW (both KOTZEBUE BIOMASS 3-5 Figure Source: Eco Waste Solutions Additionally, a analysis assumed best source of electricity and steam, and electrical efficiency was set at 30%, at the high for a turbine of this scale. Using these aggressive numbers, both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table the analysis. Table Parameter Feedstock MM BTU/day Feedstock MM BTU/hr Electrical Efficiency* Output Capacity (kW) *Electrical Efficiency = net A measure of the amount of fuel converted into electricity Tetra Tech’s experience with related projects suggests that the capital costs associated with generator construction, inc labor to manage the electrical system, outweigh any financial savings realized by electricity production at this scale. KOTZEBUE BIOMASS Figure 3-3: Generalized Decision Chart for MSW Based Energy Systems Source: Eco Waste Solutions Additionally, a simple scenario analysis was performed to evaluate elec analysis assumed best- source of electricity and steam, and electrical efficiency was set at 30%, at the high r a turbine of this scale. Using these aggressive numbers, both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table the analysis. Table 3-1: CHP Generation Parameter Feedstock MM BTU/day Feedstock MM BTU/hr Electrical Efficiency* Output Capacity (kW) Electrical Efficiency = net A measure of the amount of fuel converted into electricity Tetra Tech’s experience with related projects suggests that the capital costs associated with generator construction, increased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this KOTZEBUE BIOMASS FEASIBILITY STUDY : Generalized Decision Chart for MSW Based Energy Systems Source: Eco Waste Solutions simple scenario analysis was performed to evaluate elec -case scenarios; 100% of all wastes could be used to generate a steady year source of electricity and steam, and electrical efficiency was set at 30%, at the high r a turbine of this scale. Using these aggressive numbers, both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table : CHP Generation -Best Case Scenario Analysis Feedstock MM BTU/day Feedstock MM BTU/hr Electrical Efficiency* Output Capacity (kW) Electrical Efficiency = net electricity A measure of the amount of fuel converted into electricity Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this FEASIBILITY STUDY : Generalized Decision Chart for MSW Based Energy Systems simple scenario analysis was performed to evaluate elec case scenarios; 100% of all wastes could be used to generate a steady year source of electricity and steam, and electrical efficiency was set at 30%, at the high r a turbine of this scale. Using these aggressive numbers, both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table Best Case Scenario Analysis Combustion electricity generate/total fu A measure of the amount of fuel converted into electricity Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this FEASIBILITY STUDY : Generalized Decision Chart for MSW Based Energy Systems simple scenario analysis was performed to evaluate elec case scenarios; 100% of all wastes could be used to generate a steady year source of electricity and steam, and electrical efficiency was set at 30%, at the high r a turbine of this scale. Using these aggressive numbers,generator capacity would be extremely low for both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table Best Case Scenario Analysis Combustion Gasification 22.3 0.93 30% 80 generate/total fuel into system; A measure of the amount of fuel converted into electricity Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this : Generalized Decision Chart for MSW Based Energy Systems simple scenario analysis was performed to evaluate electricity production in Kotzebue. The case scenarios; 100% of all wastes could be used to generate a steady year source of electricity and steam, and electrical efficiency was set at 30%, at the high generator capacity would be extremely low for both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table Gasification 43.7 1.82 30% 160 l into system; Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this : Generalized Decision Chart for MSW Based Energy Systems tricity production in Kotzebue. The case scenarios; 100% of all wastes could be used to generate a steady year source of electricity and steam, and electrical efficiency was set at 30%, at the high-end of what is achievable generator capacity would be extremely low for both scenarios (80 kW for a combustion boiler, 160 kW for a gasifier). Table 3-1 displays the parameters in Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this December 2012 tricity production in Kotzebue. The case scenarios; 100% of all wastes could be used to generate a steady year- end of what is achievable generator capacity would be extremely low for displays the parameters in Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this December 2012 tricity production in Kotzebue. The -round end of what is achievable generator capacity would be extremely low for displays the parameters in Tetra Tech’s experience with related projects suggests that the capital costs associated with generator reased costs for boiler upgrades and electrical interconnection equipment, and hiring skilled labor to manage the electrical system, outweigh any financial savings realized by electricity production at this KOTZEBUE BIOMASS 3-6 3.3 PRE Due to the feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of biomass over prolonged periods of time presents a number o need to be addressed by this system. These issues include feedstock homogenization, space management, and moisture management. Feedstock Homogenization optimally within a somewhat narrow range of feedstock of several types of feedstocks, and because these feedstocks can vary in B source, Space Management primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure of these means that if the biomass is left unprocessed, long term storage could require a significant geographical footprint in Kotzebue. Table 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent attacks on the feedstock supply. Table RDF summer storage Months of storage Separated lbs /day Total RDF mass for storage (tons) Storage Storage Moisture Management moisture management will be critical to reduce and eliminate rotting and other biological activity that can lower the overall B drying (where necessary), and storage in a low moisture environment. 3.3.1 SHREDDIN The first step in many systems that address the issues of feedstock homogenization and storage space management is mechanical shred MSW systems. Shredder different vendors. Shredding KOTZEBUE BIOMASS PRE-PROCESSING AND STORA Due to the seasonal variations in feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of biomass over prolonged periods of time presents a number o need to be addressed by this system. These issues include feedstock homogenization, space management, and moisture management. Feedstock Homogenization optimally within a somewhat narrow range of feedstock of several types of feedstocks, and because these feedstocks can vary in B source,shredding and/or densifying Space Management primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure of these biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical footprint in Kotzebue. Table 3-2 shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent attacks on the feedstock supply. Table 3-2: RDF Storage Pile Volume Comparing Storage Scenarios RDF summer storage Months of storage Separated lbs /day Total RDF mass for storage (tons) Storage -loose (cu.yd) Storage -densified Moisture Management moisture management will be critical to reduce and eliminate rotting and other biological activity that can lower the overall B drying (where necessary), and storage in a low moisture environment. SHREDDING The first step in many systems that address the issues of feedstock homogenization and storage space management is mechanical shred MSW systems. Shredder different vendors. Shredding KOTZEBUE BIOMASS FEASIBILITY STUDY PROCESSING AND STORA l variations in heating r feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of biomass over prolonged periods of time presents a number o need to be addressed by this system. These issues include feedstock homogenization, space management, and moisture management. Feedstock Homogenization.In order to ensure a clean and even burn, boilers ar optimally within a somewhat narrow range of feedstock of several types of feedstocks, and because these feedstocks can vary in B shredding and/or densifying Space Management.The combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical footprint in Kotzebue.A maximum storage need (if u shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent attacks on the feedstock supply. : RDF Storage Pile Volume Comparing Storage Scenarios RDF summer storage Months of storage Separated lbs /day Total RDF mass for storage (tons) loose (cu.yd) densified (cu.yd) Moisture Management.Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that can lower the overall Btu value of the feedstock. Moisture management can involve both preliminary drying (where necessary), and storage in a low moisture environment. The first step in many systems that address the issues of feedstock homogenization and storage space management is mechanical shredding of the material. Shredding is recommended for both RDF and bulk MSW systems. Shredders are widely used, robust pieces of machinery which can be provided by a number of different vendors. Shredding advantages include FEASIBILITY STUDY PROCESSING AND STORAGE heating requirements, feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of biomass over prolonged periods of time presents a number o need to be addressed by this system. These issues include feedstock homogenization, space management, In order to ensure a clean and even burn, boilers ar optimally within a somewhat narrow range of feedstock of several types of feedstocks, and because these feedstocks can vary in B shredding and/or densifying raw MSW fuel he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical A maximum storage need (if u shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent : RDF Storage Pile Volume Comparing Storage Scenarios Total RDF mass for storage (tons) (cu.yd) Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary drying (where necessary), and storage in a low moisture environment. The first step in many systems that address the issues of feedstock homogenization and storage space ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of advantages include: FEASIBILITY STUDY equirements,Kotzebue will find it necessary to store collected feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of biomass over prolonged periods of time presents a number of important but manageable challenges that will need to be addressed by this system. These issues include feedstock homogenization, space management, In order to ensure a clean and even burn, boilers ar optimally within a somewhat narrow range of feedstock energy of several types of feedstocks, and because these feedstocks can vary in B raw MSW fuel helps to he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical A maximum storage need (if used to supplement Add shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent : RDF Storage Pile Volume Comparing Storage Scenarios 3,500 319.20 6,321 584 Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary drying (where necessary), and storage in a low moisture environment. The first step in many systems that address the issues of feedstock homogenization and storage space ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of Kotzebue will find it necessary to store collected feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of f important but manageable challenges that will need to be addressed by this system. These issues include feedstock homogenization, space management, In order to ensure a clean and even burn, boilers ar energy values. Because MSW is a combination of several types of feedstocks, and because these feedstocks can vary in B maintain a consistent he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical sed to supplement Add shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent : RDF Storage Pile Volume Comparing Storage Scenarios 6 3,500 319.20 6,321 584 Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary drying (where necessary), and storage in a low moisture environment. The first step in many systems that address the issues of feedstock homogenization and storage space ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of Kotzebue will find it necessary to store collected feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of f important but manageable challenges that will need to be addressed by this system. These issues include feedstock homogenization, space management, In order to ensure a clean and even burn, boilers are designed to operate values. Because MSW is a combination of several types of feedstocks, and because these feedstocks can vary in Btu values from source to maintain a consistent Btu flow. he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical sed to supplement Add-Heat) is 6 shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary The first step in many systems that address the issues of feedstock homogenization and storage space ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of December 2012 Kotzebue will find it necessary to store collected feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of f important but manageable challenges that will need to be addressed by this system. These issues include feedstock homogenization, space management, e designed to operate values. Because MSW is a combination values from source to flow. he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical Heat) is 6 months’supply. shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary The first step in many systems that address the issues of feedstock homogenization and storage space ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of December 2012 Kotzebue will find it necessary to store collected feedstocks in seasons of low heat demand to supplement heat production later in the year. Storage of f important but manageable challenges that will need to be addressed by this system. These issues include feedstock homogenization, space management, e designed to operate values. Because MSW is a combination values from source to he combustible portion of MSW feedstocks available in Kotzebue consists primarily of wood wastes, cardboard, and paper products. When loosely stored, the shape and structure biomass sources will inherently generate a very porous storage pile. Practically speaking, this means that if the biomass is left unprocessed, long term storage could require a significant geographical supply. shows the benefit of densification in feedstock storage, reducing storage building space from 6,321 cu yd to just 584 cu yd. Densification also stabilizes the material and inhibits microbial and rodent Regardless of what method of biomass storage is used for the proposed system, moisture management will be critical to reduce and eliminate rotting and other biological activity that value of the feedstock. Moisture management can involve both preliminary ding of the material. Shredding is recommended for both RDF and bulk s are widely used, robust pieces of machinery which can be provided by a number of KOTZEBUE BIOMASS 3-7 Improved handling material qualities Improved homogenization capabilities Improved fuel density Readies material for further processing Figures 3-4 Figure 3-4 UNTHA) 3.3.2 PELLETIZATION & BRIQ After the shredding phase, one way efficiencies pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact though without the accomplish similar goals. These include: Densification Transportability transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. Homogenization fuel source with a consistent density, BTU value, and thus consistent combustion properties. KOTZEBUE BIOMASS Improved handling material qualities Improved homogenization capabilities Improved fuel density Readies material for further processing 4 and 3-5 below depict generic shredders similar to those that may be employed in Kotzebue. 4: MSW Shredder (Photo Courtesy of PELLETIZATION & BRIQ After the shredding phase, one way efficiencies of the MSW is through densification. pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact though without the additional step of hammer milling. Despite the different processes, both methods accomplish similar goals. These include: Densification –Storage space can be reduced by up to 50% over material that is only shredded. Transportability – transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. Homogenization -Wood, card fuel source with a consistent density, BTU value, and thus consistent combustion properties. KOTZEBUE BIOMASS FEASIBILITY STUDY Improved handling material qualities Improved homogenization capabilities Improved fuel density Readies material for further processing below depict generic shredders similar to those that may be employed in Kotzebue. : MSW Shredder (Photo Courtesy of PELLETIZATION & BRIQUETTING After the shredding phase, one way of the MSW is through densification. pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact additional step of hammer milling. Despite the different processes, both methods accomplish similar goals. These include: Storage space can be reduced by up to 50% over material that is only shredded. The increased ener transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. Wood, cardboard, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. FEASIBILITY STUDY Improved handling material qualities Improved homogenization capabilities Readies material for further processing below depict generic shredders similar to those that may be employed in Kotzebue. : MSW Shredder (Photo Courtesy of UETTING After the shredding phase, one way to further improve the storing and handling characteristics of the MSW is through densification. pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact additional step of hammer milling. Despite the different processes, both methods accomplish similar goals. These include: Storage space can be reduced by up to 50% over material that is only shredded. The increased energy density of the pelletized/briquetted feedstock improves transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. board, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. FEASIBILITY STUDY below depict generic shredders similar to those that may be employed in Kotzebue. Figure 3- UNTHA) to further improve the storing and handling characteristics of the MSW is through densification.This is accomplished through one of two processes; pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact additional step of hammer milling. Despite the different processes, both methods Storage space can be reduced by up to 50% over material that is only shredded. gy density of the pelletized/briquetted feedstock improves transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. board, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. below depict generic shredders similar to those that may be employed in Kotzebue. -5: Wood Shredder (Photo courtesy of to further improve the storing and handling characteristics his is accomplished through one of two processes; pelletization or briquetting. In pelletization, shredded MSW would be fed into a sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact additional step of hammer milling. Despite the different processes, both methods Storage space can be reduced by up to 50% over material that is only shredded. gy density of the pelletized/briquetted feedstock improves transport efficiencies several orders of magnitude. Because of this pellets/ to supplement shortfalls, or increase anticipated system size. board, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. below depict generic shredders similar to those that may be employed in Kotzebue. : Wood Shredder (Photo courtesy of to further improve the storing and handling characteristics his is accomplished through one of two processes; pelletization or briquetting. In pelletization, shredded MSW would be fed into a hammer mill reducing it to sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compact additional step of hammer milling. Despite the different processes, both methods Storage space can be reduced by up to 50% over material that is only shredded. gy density of the pelletized/briquetted feedstock improves transport efficiencies several orders of magnitude. Because of this pellets/briquettes board, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. December 2012 below depict generic shredders similar to those that may be employed in Kotzebue. : Wood Shredder (Photo courtesy of to further improve the storing and handling characteristics and process his is accomplished through one of two processes; hammer mill reducing it to sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and passed through a mechanical extrusion pelletizer. Briquetting also mechanically compacts shredded MSW, additional step of hammer milling. Despite the different processes, both methods Storage space can be reduced by up to 50% over material that is only shredded. gy density of the pelletized/briquetted feedstock improves could be imported board, paper, and (maybe) binder waste oil can be combined into a single fuel source with a consistent density, BTU value, and thus consistent combustion properties. December 2012 and process his is accomplished through one of two processes; hammer mill reducing it to sawdust sized particles. This material would then be mixed with a binding agent (such as waste oil), and shredded MSW, additional step of hammer milling. Despite the different processes, both methods gy density of the pelletized/briquetted feedstock improves could be imported board, paper, and (maybe) binder waste oil can be combined into a single KOTZEBUE BIOMASS 3-8 Table 3-3 and 3-7 display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in transportability. However briquettes used is considered to be more robust. option for the proposed plant. Table 3-3: Product Parameters Concerning Densification Technologies Parameter Needs Binder Pre-Conditioning Moisture Resistant Final Bulk Density (lb/ft Product Durability Estimated Production Cost ($/ton) Estimated Cost of Purchasing Additional Feedstock ($/ton Additional Feedstock Availability (a)Kaliyan, N., Morey, R.V. (2009). Biomass Bioenergy 33 (3), 337 (b) Based on conversations with CPM & FFS Pelleting companies (c) Based on performance (http://www.briquettingsystems.com/lease/costs.htm#nielsen23 (b)&(c) Electricity costs set to $0.15 per kWh Figure 3-6 (Source www.cleantechloops.com KOTZEBUE BIOMASS illustrates some of the key operating differences between pellets and display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in transportability. However briquettes used is considered to be more robust. option for the proposed plant. : Product Parameters Concerning Densification Technologies Parameter Needs Binder Conditioning Moisture Resistant Final Bulk Density (lb/ft Product Durability Estimated Production Cost ($/ton) Estimated Cost of Purchasing Additional Feedstock ($/ton Additional Feedstock Availability Kaliyan, N., Morey, R.V. (2009). Biomass Bioenergy 33 (3), 337 (b) Based on conversations with CPM & FFS Pelleting companies performance claims from http://www.briquettingsystems.com/lease/costs.htm#nielsen23 (b)&(c) Electricity costs set to $0.15 per kWh 6: Biomass Pellets www.cleantechloops.com KOTZEBUE BIOMASS FEASIBILITY STUDY illustrates some of the key operating differences between pellets and display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in transportability. However briquettes used is considered to be more robust. option for the proposed plant. : Product Parameters Concerning Densification Technologies 3) Estimated Production Cost ($/ton) Estimated Cost of Purchasing Additional Feedstock ($/ton delivered Additional Feedstock Availability Kaliyan, N., Morey, R.V. (2009).Factors affecting strength and durability of densified biomass products Biomass Bioenergy 33 (3), 337–359. (b) Based on conversations with CPM & FFS Pelleting companies claims from Reinbold Briquetters & http://www.briquettingsystems.com/lease/costs.htm#nielsen23 (b)&(c) Electricity costs set to $0.15 per kWh : Biomass Pellets www.cleantechloops.com) FEASIBILITY STUDY illustrates some of the key operating differences between pellets and display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in transportability. However briquettes require less pre used is considered to be more robust.For these reasons, briquetting will likely be more a more attractive : Product Parameters Concerning Densification Technologies Pelleting No (But helpful) Shredding Hammer Milling Drying (If MC> 15%) Yes 34 – Good $30 delivered) $300 Very Good Factors affecting strength and durability of densified biomass products (b) Based on conversations with CPM & FFS Pelleting companies Reinbold Briquetters &Nielson Briquetters http://www.briquettingsystems.com/lease/costs.htm#nielsen23 FEASIBILITY STUDY illustrates some of the key operating differences between pellets and display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in require less pre-treatment, are cheaper to produce, and the equipment For these reasons, briquetting will likely be more a more attractive : Product Parameters Concerning Densification Technologies Pelleting No (But helpful) Shredding Hammer Milling Drying (If MC> 15%) Yes –41 Good $30 -$40(b) 300 Very Good Factors affecting strength and durability of densified biomass products Nielson Briquetters http://www.briquettingsystems.com/lease/costs.htm#nielsen23) Figure 3 (Source www.bhsenergy.com illustrates some of the key operating differences between pellets and display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in treatment, are cheaper to produce, and the equipment For these reasons, briquetting will likely be more a more attractive : Product Parameters Concerning Densification Technologies Drying (If MC> 15%)(a) Factors affecting strength and durability of densified biomass products 3-7: MSW Briquettes www.bhsenergy.com illustrates some of the key operating differences between pellets and briquettes display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in treatment, are cheaper to produce, and the equipment For these reasons, briquetting will likely be more a more attractive Briquetting No Shredding Drying (If MC> 20%) Yes 28 –33 Fair $8 -$14 $300 Fair Factors affecting strength and durability of densified biomass products. : MSW Briquettes www.bhsenergy.com) December 2012 briquettes and Figures display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in treatment, are cheaper to produce, and the equipment For these reasons, briquetting will likely be more a more attractive Briquetting Shredding Drying (If MC> 20%)(a) 33 $14(c) December 2012 and Figures 3-6 display the physical appearance of these feedstocks. As can be seen, both have their advantages. Pellets are the more dense, durable, and commonly used option. They also hold an advantage in treatment, are cheaper to produce, and the equipment For these reasons, briquetting will likely be more a more attractive (a) KOTZEBUE BIOMASS 3-9 3.4 TECHNOLOGY RECOMMEND As can be seen, there are a number of factors that affect the ultimate technology selection and as many different system arrangements for consideration. Table parameters discussed in the preceding sections. forward in the subsequent sections of this report. Table Parameter Feedstock Use Feedstock Processing Feedstock TPD Produced Feedstock BTU/Day Potential Combustion Stages Electricity Generation Air Emissions Ash/Residuals Ability to import additional feedstock Operational Concerns Technically speaking and as shown in the above table, gasification holds an edge feedstock volume and pre However, concerns over system footprint and the cost of storing MSW on site could de on the other hand, has imported feedstock thus increasing project stability. Both technology platforms will be evaluated further in the study, to determine potential site locations (Section 4) (Section 6), KOTZEBUE BIOMASS TECHNOLOGY RECOMMEND As can be seen, there are a number of factors that affect the ultimate technology selection and as many different system arrangements for consideration. Table parameters discussed in the preceding sections. forward in the subsequent sections of this report. Table 3-4: Summary of Technology Parameters Parameter Feedstock Use Feedstock Processing Feedstock TPD Produced Feedstock BTU/Day Potential Combustion Stages Electricity Generation Air Emissions Ash/Residuals Ability to import additional feedstock Operational Concerns Technically speaking and as shown in the above table, gasification holds an edge feedstock volume and pre However, concerns over system footprint and the cost of storing MSW on site could de on the other hand, has imported feedstock thus increasing project stability. Both technology platforms will be evaluated further in the study, to determine potential site locations (Section 4), conceptual design (Section 6),and financial feasibility of the options KOTZEBUE BIOMASS FEASIBILITY STUDY TECHNOLOGY RECOMMEND As can be seen, there are a number of factors that affect the ultimate technology selection and as many different system arrangements for consideration. Table parameters discussed in the preceding sections. forward in the subsequent sections of this report. : Summary of Technology Parameters Feedstock Processing Feedstock TPD Produced Feedstock BTU/Day Potential Combustion Stages Electricity Generation Ability to import additional Operational Concerns Technically speaking and as shown in the above table, gasification holds an edge feedstock volume and pre-processing demands. As such, offers Kotzebue However, concerns over system footprint and the cost of storing MSW on site could de on the other hand, has the advantage of being a better understood platform that can be supported by imported feedstock thus increasing project stability. Both technology platforms will be evaluated further in the study, to determine potential site locations ptual design of the processes (Section 5) and financial feasibility of the options FEASIBILITY STUDY TECHNOLOGY RECOMMENDATION As can be seen, there are a number of factors that affect the ultimate technology selection and as many different system arrangements for consideration. Table parameters discussed in the preceding sections. forward in the subsequent sections of this report. : Summary of Technology Parameters Scenario 1: RDF Boiler Paper Cardboard Wood Sorted Material Shredding Densification 1.56 22.3 MM 1 Not economical May not require permit Non-hazardous Yes Sorting process must eliminate contaminants Technically speaking and as shown in the above table, gasification holds an edge processing demands. As such, offers Kotzebue However, concerns over system footprint and the cost of storing MSW on site could de the advantage of being a better understood platform that can be supported by imported feedstock thus increasing project stability. Both technology platforms will be evaluated further in the study, to determine potential site locations of the processes (Section 5) and financial feasibility of the options (Section 7) FEASIBILITY STUDY As can be seen, there are a number of factors that affect the ultimate technology selection and as many different system arrangements for consideration. Table 3-4 below summarizes some of the critical project This table also shows the two scenarios that will be carried forward in the subsequent sections of this report. : Summary of Technology Parameters Scenario 1: RDF Boiler Sorted Material Densification Not economical May not require hazardous Sorting process must contaminants Technically speaking and as shown in the above table, gasification holds an edge processing demands. As such, offers Kotzebue However, concerns over system footprint and the cost of storing MSW on site could de the advantage of being a better understood platform that can be supported by imported feedstock thus increasing project stability. Both technology platforms will be evaluated further in the study, to determine potential site locations of the processes (Section 5),permitting and environmental issues of each (Section 7). As can be seen, there are a number of factors that affect the ultimate technology selection and as many below summarizes some of the critical project This table also shows the two scenarios that will be carried Scenario 2: MSW Gasifier All MSW Combustibles Unsorted MSW 3.59 32.7 MM 2 Not economical Within regulatory limits Non-hazardous No Potential for emissions within city limits Technically speaking and as shown in the above table, gasification holds an edge processing demands. As such, offers Kotzebue However, concerns over system footprint and the cost of storing MSW on site could de the advantage of being a better understood platform that can be supported by Both technology platforms will be evaluated further in the study, to determine potential site locations permitting and environmental issues of each As can be seen, there are a number of factors that affect the ultimate technology selection and as many below summarizes some of the critical project This table also shows the two scenarios that will be carried Scenario 2: MSW Gasifier All MSW Combustibles Unsorted MSW Shredding Not economical regulatory limits hazardous Potential for emissions within city limits Technically speaking and as shown in the above table, gasification holds an edge in the availability of processing demands. As such, offers Kotzebue the greatest energy potential. However, concerns over system footprint and the cost of storing MSW on site could de-rail the project. RDF, the advantage of being a better understood platform that can be supported by Both technology platforms will be evaluated further in the study, to determine potential site locations permitting and environmental issues of each December 2012 As can be seen, there are a number of factors that affect the ultimate technology selection and as many below summarizes some of the critical project This table also shows the two scenarios that will be carried in the availability of the greatest energy potential. rail the project. RDF, the advantage of being a better understood platform that can be supported by Both technology platforms will be evaluated further in the study, to determine potential site locations permitting and environmental issues of each December 2012 As can be seen, there are a number of factors that affect the ultimate technology selection and as many below summarizes some of the critical project This table also shows the two scenarios that will be carried in the availability of the greatest energy potential. rail the project. RDF, the advantage of being a better understood platform that can be supported by Both technology platforms will be evaluated further in the study, to determine potential site locations permitting and environmental issues of each KOTZEBUE BIOMASS 4-1 4 LOCAL ENERGY DEMAND The following energy loads that can potentially be satisfied by a biomass for potential plant sites follow biomass plant siting must be in close proximity to the user groups 4.1 LOCAL FACILITIES AND Tetra Tech conducted a biomass energy use audit in the City o beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. 4.1.1 DISTR Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel electric heat, at a rapidly rising energy cost to the Below are listed some of the city produced by a biomass energy plant based on Maintenance Building EPA Energy Star energy use accounting program. Public Works Campus Water Treatment Facility City Maintenance Refuse Bailer Building City Public Works Offices Kotzebue City Hall Kotzebue Recreation Center Kotzebue Fire Hall Kotzebue Police Station Kotzebue Corrections KOTZEBUE BIOMASS LOCAL ENERGY DEMAND The following section describes energy loads that can potentially be satisfied by a biomass for potential plant sites follow plant siting must be in close proximity to the user groups LOCAL FACILITIES AND Tetra Tech conducted a biomass energy use audit in the City o beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. DISTRICT ENERGY MULTI Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel electric heat, at a rapidly rising energy cost to the Below are listed some of the city produced by a biomass energy plant based on Maintenance Building EPA Energy Star energy use accounting program. Public Works Campus Water Treatment Facility City Maintenance Shop Refuse Bailer Building City Public Works Offices Kotzebue City Hall Kotzebue Recreation Center Kotzebue Fire Hall Kotzebue Police Station Kotzebue Corrections KOTZEBUE BIOMASS FEASIBILITY STUDY LOCAL ENERGY DEMAND section describes the energy consumption in the project region, and identifies and quantifies energy loads that can potentially be satisfied by a biomass for potential plant sites follow in the plant siting must be in close proximity to the user groups LOCAL FACILITIES AND ENERGY DEMAND Tetra Tech conducted a biomass energy use audit in the City o beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. ICT ENERGY MULTI-BUILDING HEATING Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel electric heat, at a rapidly rising energy cost to the Below are listed some of the city-owned facilities that produced by a biomass energy plant based on Maintenance Building.Information EPA Energy Star energy use accounting program. Public Works Campus Water Treatment Facility Shop Refuse Bailer Building City Public Works Offices Kotzebue Recreation Center Kotzebue Police Station Kotzebue Corrections Facility FEASIBILITY STUDY LOCAL ENERGY DEMAND AND FACILITY energy consumption in the project region, and identifies and quantifies energy loads that can potentially be satisfied by a biomass in the second portion of the section. plant siting must be in close proximity to the user groups ENERGY DEMAND Tetra Tech conducted a biomass energy use audit in the City o beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. BUILDING HEATING Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel electric heat, at a rapidly rising energy cost to the c owned facilities that produced by a biomass energy plant.Bailer Building data Information displayed EPA Energy Star energy use accounting program. FEASIBILITY STUDY AND FACILITY energy consumption in the project region, and identifies and quantifies energy loads that can potentially be satisfied by a biomass-fired energy generator second portion of the section. plant siting must be in close proximity to the user groups ENERGY DEMAND Tetra Tech conducted a biomass energy use audit in the City of Kotzebue. beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. BUILDING HEATING AT KOTZEBUE CITY Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel city. owned facilities that were found to be viable options to use the energy Bailer Building data was displayed was gathered by the AND FACILITY SITING energy consumption in the project region, and identifies and quantifies fired energy generator second portion of the section.This takes into consideration that plant siting must be in close proximity to the user groups of the energy produced. f Kotzebue.Several facilities were identified as beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. AT KOTZEBUE CITY-OWNED BUILDINGS Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel were found to be viable options to use the energy was unavailable for the study and was was gathered by the energy consumption in the project region, and identifies and quantifies fired energy generator plant. This takes into consideration that of the energy produced. Several facilities were identified as beneficial users of thermal energy (heating) produced by the prospective biomass energy plant. also evaluated interconnection of the energy customer facilities to the prospective plant. OWNED BUILDINGS Space heating was indicated at the project outset as a focus area for use of the energy produced by a biomass energy plant. Kotzebue heats most of its public buildings with diesel-fired boilers, supplemented by were found to be viable options to use the energy for the study and was was gathered by the city of Kotzebue as part of an December 2012 energy consumption in the project region, and identifies and quantifies Recommendations This takes into consideration that of the energy produced. Several facilities were identified as beneficial users of thermal energy (heating) produced by the prospective biomass energy plant.The analysis OWNED BUILDINGS Space heating was indicated at the project outset as a focus area for use of the energy produced by a ilers, supplemented by were found to be viable options to use the energy for the study and was estimate ity of Kotzebue as part of an December 2012 energy consumption in the project region, and identifies and quantifies Recommendations This takes into consideration that Several facilities were identified as The analysis Space heating was indicated at the project outset as a focus area for use of the energy produced by a ilers, supplemented by were found to be viable options to use the energy estimated ity of Kotzebue as part of an January February March April May June July August Sept October November December Average DailyLoad (BTUs/day) Average Annual Load (BTUs/year) MaximumObervedLoad (BTUs/day)AverageDailyLoad(BTUs/day)AnnualDataKOTZEBUE BIOMASS 4-2 Table 4-1: Kotzebue Government The total thermal energy demand of these buildings is Currently, over 94,000 gallons of fuel oil of buildings Kotzebue. 4.1.2 PRIMARY Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s waste stream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy system to serve that need. A top effective buildings and energy systems to convert to biomass heat. Of the Kotzebue public buildings, the Maintenance Building. Upon furth location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely match biomass energy plant. RDF plant in Scenario 1 January February March April May June July August Sept October November December Average DailyLoad (BTUs/day) Average Annual Load (BTUs/year) MaximumObervedLoad (BTUs/day) KOTZEBUE BIOMASS : Kotzebue Government otal thermal energy demand of these buildings is Currently, over 94,000 gallons of fuel oil of buildings.This is considered the primary opportunity for const savings through biomass energy use in Kotzebue. PRIMARY BUILDING Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy system to serve that need. A top effective buildings and energy systems to convert to biomass heat. Of the Kotzebue public buildings, the Maintenance Building. Upon furth location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely match iomass energy plant.These plants were factored into the conceptual design as the energy consumers of an RDF plant in Scenario 1, discussed in Section 5 Kotzebue City Water Treatment Facility 7,864,266 7,871,092 12,117,572 5,168,530 6,643,068 2,748,000 3,369,181 3,545,806 6,551,461 7,558,995 8,129,500 14,032,529 7,133,333 2,611,324,785 MaximumObervedLoad 17,427,639 KOTZEBUE BIOMASS FEASIBILITY STUDY : Kotzebue Government Building Heating Demands otal thermal energy demand of these buildings is Currently, over 94,000 gallons of fuel oil This is considered the primary opportunity for const savings through biomass energy use in BUILDING HEATING SCENARIO Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy system to serve that need. A top effective buildings and energy systems to convert to biomass heat. Of the Kotzebue public buildings, the Maintenance Building. Upon further review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely match These plants were factored into the conceptual design as the energy consumers of an , discussed in Section 5 Kotzebue City Maintenance Shop BailerBuilding 4,314,803 6,404,768 9,789,307 3,299,432 3,739,939 2,561,136 2,603,952 2,660,241 2,061,229 3,213,609 4,465,500 10,362,619 4,623,045 1,691,373,390 14,963,303 FEASIBILITY STUDY Building Heating Demands otal thermal energy demand of these buildings is Currently, over 94,000 gallons of fuel oil is purchased by the City of Kotzebue This is considered the primary opportunity for const savings through biomass energy use in HEATING SCENARIO Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy system to serve that need. A top-down select effective buildings and energy systems to convert to biomass heat. Of the Kotzebue public buildings, the top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely match These plants were factored into the conceptual design as the energy consumers of an , discussed in Section 5. Kotzebue City BailerBuilding (est.) Kotzebue Public 257,810 508,889 693,722 267,167 297,454 144,626 147,717 147,791 127,248 184,702 254,444 831,295 321,905 117,495,469 831,295 FEASIBILITY STUDY Building Heating Demands otal thermal energy demand of these buildings is 26. is purchased by the City of Kotzebue This is considered the primary opportunity for const savings through biomass energy use in HEATING SCENARIO Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy down selection process was employed to determine the most cost effective buildings and energy systems to convert to biomass heat. top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely match These plants were factored into the conceptual design as the energy consumers of an Kotzebue Public Works Kotzebue Recreation Center 106,620 154,006 252,836 96,689 84,952 47,785 46,243 34,522 50,940 86,183 279,889 230,724 10,291,703 122,616 611,718,540 1,889,712,351 5,038,000 12,472,374 26.74 MM Btu/day, or is purchased by the City of Kotzebue This is considered the primary opportunity for const savings through biomass energy use in Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy ion process was employed to determine the most cost effective buildings and energy systems to convert to biomass heat. top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works campus. As well, the energy demand of these facilities closely matches available energy production from These plants were factored into the conceptual design as the energy consumers of an Kotzebue Recreation Center Kotzebue Fire Hall 6,561,515 3,353,003 7,963,897 6,402,358 7,777,948 6,912,993 6,498,402 5,292,877 4,609,327 2,036,844 2,005,582 2,501,825 2,217,902 2,339,789 1,440,484 1,717,500 3,590,129 2,730,049 7,497,918 6,812,292 10,291,703 8,333,088 5,181,026 3,989,636 1,889,712,351 1,452,661,500 12,472,374 9,751,854 MM Btu/day, or 10,327 is purchased by the City of Kotzebue per year to heat this collection This is considered the primary opportunity for const savings through biomass energy use in Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy ion process was employed to determine the most cost top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works es available energy production from These plants were factored into the conceptual design as the energy consumers of an Kotzebue Fire Hall Kotzebue Police Station 3,353,003 288,097 6,402,358 6,912,993 528,547 5,292,877 1,461,478 2,036,844 169,977 2,501,825 175,643 2,339,789 290,313 870,200 2,730,049 266,822 6,812,292 427,314 8,333,088 731,766 3,989,636 337,470 1,452,661,500 123,474,510 9,751,854 2,464,040 December 2012 10,327 MM Btu to heat this collection This is considered the primary opportunity for const savings through biomass energy use in Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy ion process was employed to determine the most cost top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works es available energy production from These plants were factored into the conceptual design as the energy consumers of an Kotzebue Police Station Kotzebue Corrections Facility 288,097 3,789,581 0 7,510,959 528,547 7,167,405 1,461,478 5,211,353 169,977 2,135,462 175,643 2,410,866 0 0 0 3,235,548 0 836,766 266,822 2,171,806 427,314 11,965,479 731,766 6,544,229 337,470 4,414,955 123,474,510 1,603,161,216 2,464,040 18,015,888 December 2012 MM Btu/year. to heat this collection This is considered the primary opportunity for const savings through biomass energy use in Total thermal demand of the city’s public buildings is roughly equal to the total energy content in Kotzebue’s ream on a Btu basis. Once the inherent efficiency losses of a waste to energy conversion system are factored, the heating demand in the city’s public buildings is greater than the ability of a waste to energy ion process was employed to determine the most cost top energy consumers are the Water Treatment Plant (WTP) and the er review, these buildings present as the logical choice for district energy location. Their current heating plants are both diesel boilers, and are some of the oldest on the Public Works es available energy production from These plants were factored into the conceptual design as the energy consumers of an Kotzebue Corrections Kotzebue City Hall 3,789,581 664,839 7,510,959 1,062,078 7,167,405 913,045 5,211,353 1,110,650 2,135,462 309,593 2,410,866 0 0 0 3,235,548 733,539 836,766 0 2,171,806 1,149,063 11,965,479 905,924 6,544,229 588,161 4,414,955 619,741 1,603,161,216 225,871,860 18,015,888 1,826,090 Kotzebue City 664,839 1,062,078 913,045 1,110,650 309,593 733,539 1,149,063 905,924 588,161 619,741 225,871,860 1,826,090 KOTZEBUE BIOMASS 4-3 Table Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass and sale of layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and avoided disposal costs is the simplest pathway form a bus 4.1.3 ‘ADD Another potential use for biomass system.The Add prevent freezes. Kotzebue Electric Association (KEA) into the return portion of the lagoon Loop water line The heated wate at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 MMBtu/day. Additional diesel Thermal energy is sold to the (nearly $40/MM Btu going into the 2012/2013 heating season) days to ensure s operating parameters. January February March April May June July August Sept October November December Average DailyLoad (BTUs/day) Average Annual Load (BTUs/year) MaximumObervedLoad (BTUs/day) KOTZEBUE BIOMASS Table 4-2: Scenario 1 Energy Uses Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass and sale of energy to third layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and avoided disposal costs is the simplest pathway form a bus ‘ADD-HEAT’ FOR CITY WATER Another potential use for biomass The Add-Heat system currently heats treated water prevent freezes. Kotzebue Electric Association (KEA) into the return portion of the lagoon Loop water line The heated water is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 MMBtu/day. Additional diesel Thermal energy is sold to the $40/MM Btu going into the 2012/2013 heating season) days to ensure steady water supply to its residents. operating parameters. January February March April May June August Sept October November December Average DailyLoad (BTUs/day) Average Annual Load (BTUs/year) MaximumObervedLoad (BTUs/day) KOTZEBUE BIOMASS FEASIBILITY STUDY ario 1 Energy Uses Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass energy to third-party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and avoided disposal costs is the simplest pathway form a bus HEAT’ FOR CITY WATER Another potential use for biomass-produced thermal energy is the Kotzebue ‘Add Heat system currently heats treated water prevent freezes. Kotzebue Electric Association (KEA) into the return portion of the lagoon Loop water line r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 MMBtu/day. Additional diesel-fired heating is availabl Thermal energy is sold to the city based on Btu content, at approximately 87.5% of the price of $40/MM Btu going into the 2012/2013 heating season) eady water supply to its residents. Kotzebue City WaterTreatment Facility Average DailyLoad Average Annual Load 2,611,324,785 MaximumObervedLoad FEASIBILITY STUDY ario 1 Energy Uses Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and avoided disposal costs is the simplest pathway form a bus HEAT’ FOR CITY WATER SYSTEM produced thermal energy is the Kotzebue ‘Add Heat system currently heats treated water prevent freezes. Kotzebue Electric Association (KEA) into the return portion of the lagoon Loop water line r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 fired heating is availabl ity based on Btu content, at approximately 87.5% of the price of $40/MM Btu going into the 2012/2013 heating season) eady water supply to its residents. Kotzebue City WaterTreatment Facility 7,864,266 7,871,092 12,117,572 5,168,530 6,643,068 2,748,000 3,369,181 3,545,806 6,551,461 7,558,995 8,129,500 14,032,529 7,133,333 2,611,324,785 17,427,639 FEASIBILITY STUDY Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and avoided disposal costs is the simplest pathway form a business and logistics standpoint. produced thermal energy is the Kotzebue ‘Add Heat system currently heats treated water prior to distribution in the prevent freezes. Kotzebue Electric Association (KEA)provides waste heat from its diesel into the return portion of the lagoon Loop water line to serve this heating need, on a contract with the City r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 fired heating is available at the WT ity based on Btu content, at approximately 87.5% of the price of $40/MM Btu going into the 2012/2013 heating season). eady water supply to its residents.Table 4-3 below shows the five Kotzebue City Maintenance Shop 4,314,803 6,404,768 9,789,307 3,299,432 3,739,939 2,561,136 2,603,952 2,660,241 2,061,229 3,213,609 4,465,500 10,362,619 4,623,045 1,691,373,390 14,963,303 Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and iness and logistics standpoint. produced thermal energy is the Kotzebue ‘Add prior to distribution in the waste heat from its diesel to serve this heating need, on a contract with the City r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 e at the WTP itself, but is ity based on Btu content, at approximately 87.5% of the price of .Kotzebue requires an average of below shows the five Kotzebue City Maintenance Scenario1District EnergySystemTotal 4,314,803 6,404,768 9,789,307 3,299,432 3,739,939 2,561,136 2,603,952 2,660,241 2,061,229 3,213,609 4,465,500 10,362,619 4,623,045 1,691,373,390 4,302,698,175 14,963,303 Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were not polled for their interest level or logistical feasibility of converting to biomass-supplied energy. Metering party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and iness and logistics standpoint. produced thermal energy is the Kotzebue ‘Add-Heat’ prior to distribution in the waste heat from its diesel- to serve this heating need, on a contract with the City r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 itself, but is reportedly ity based on Btu content, at approximately 87.5% of the price of Kotzebue requires an average of below shows the five-year historical Add Scenario1District EnergySystemTotal 13,759,170 16,438,102 25,290,465 9,798,452 11,563,761 5,968,656 6,655,700 6,827,450 9,071,148 12,102,281 15,938,400 27,757,016 11,756,378 4,302,698,175 32,390,942 December 2012 Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were supplied energy. Metering party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and Heat’city water heating city water loops to -electric generators to serve this heating need, on a contract with the City r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 reportedly rarely used. ity based on Btu content, at approximately 87.5% of the price of heating Kotzebue requires an average of 171 heating year historical Add December 2012 Additional energy demand centers, such as the school district complex, Maniilaq Hospital, and others were supplied energy. Metering party consumers adds a difficult, and as shown here, unnecessary, management layer to a biomass energy plant’s business plan. Recovery of capital expenditure through fuel savings and city water heating city water loops to electric generators to serve this heating need, on a contract with the City. r is blended the rest of the city water supply. The water is heated to an average of 60 deg F, at an average flow (return) of 193 gpm, resulting in an average heat input of 982,600 Btu/hr, or over 23.5 rarely used. heating fuel 171 heating year historical Add-Heat KOTZEBUE BIOMASS 4-4 Table KEA is currently in the process of overhauling its energy generation portfolio, focusing on on renewable energy with panels. As well, KEA is scheduled to replace sev units that produce less waste heat. its waste heat prod equipment is installed. above, can supplement the Add feedstocks availabl energy, rather than replacing the system outright fuel oil use elsewhere within 4.1.4 PREHEATING Alternately, treatment process, in addition to avoiding freeze is expected to benefit if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including micro-and nano the existing location at the Public Works campus, or it may be re raw water distribution line from Vortak L upon the construction of a new WTP. average of 220 gpm from 34 than the demand for heating all of the public buildings in Kotzebue, After accounting for production and heat transfer inefficiencies, MSW gasifier system WTP.The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Nov07-May08 Oct08-Apr09 Nov09-Apr10 Nov10-Apr11 Nov11-May12 Average * Calculated using "Advantage Engineering BTU Calculator" http://www.advantageengineering.com/fyi/288/advantageFYI288.php Date KOTZEBUE BIOMASS Table 4-3: Kotzebue / KEA Add rrently in the process of overhauling its energy generation portfolio, focusing on on renewable energy with panels. As well, KEA is scheduled to replace sev units that produce less waste heat. its waste heat production as the c equipment is installed. above, can supplement the Add feedstocks available, it is recommended that the , rather than replacing the system outright fuel oil use elsewhere within PREHEATING ‘ADD Alternately,Add-Heat energy can treatment process, in addition to avoiding freeze is expected to benefit somewhat from higher if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including and nano-filtration, operate at an optimal water temperature of the existing location at the Public Works campus, or it may be re raw water distribution line from Vortak L n the construction of a new WTP. average of 34°F, based on monitoring conducted by WH Pacific 220 gpm from 34°F to 45 than the demand for heating all of the public buildings in Kotzebue, After accounting for production and heat transfer inefficiencies, MSW gasifier system very closely matches the demand curve of an The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Nov07-May08 Oct08-Apr09 Nov09-Apr10 Nov10-Apr11 Nov11-May12 Average * Calculated using "Advantage Engineering BTU Calculator" http://www.advantageengineering.com/fyi/288/advantageFYI288.php Operating Date KOTZEBUE BIOMASS FEASIBILITY STUDY : Kotzebue / KEA Add rrently in the process of overhauling its energy generation portfolio, focusing on on renewable energy with more turbines at the panels. As well, KEA is scheduled to replace sev units that produce less waste heat.KEA has indicated that it can continue to provide as much Add uction as the city needs, but that issue will have to be revisite equipment is installed.A biomass energy plant above, can supplement the Add-Heat system e, it is recommended that the , rather than replacing the system outright fuel oil use elsewhere within Kotzebue ‘ADD-HEAT’ FOR Heat energy can be injected into the treatment process, in addition to avoiding freeze somewhat from higher if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including filtration, operate at an optimal water temperature of the existing location at the Public Works campus, or it may be re raw water distribution line from Vortak L n the construction of a new WTP. F, based on monitoring conducted by WH Pacific F to 45°F is expected to consume 1, than the demand for heating all of the public buildings in Kotzebue, After accounting for production and heat transfer inefficiencies, very closely matches the demand curve of an The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Flow (gpm) 173 182 157 147 196 171 * Calculated using "Advantage Engineering BTU Calculator" http://www.advantageengineering.com/fyi/288/advantageFYI288.php Operating Days FEASIBILITY STUDY : Kotzebue / KEA Add-Heat System Parameters rrently in the process of overhauling its energy generation portfolio, focusing on more turbines at the panels. As well, KEA is scheduled to replace several if its diesel KEA has indicated that it can continue to provide as much Add ity needs, but that issue will have to be revisite A biomass energy plant heating Heat system if a shortfall arises. Considering the finite amount of biomass e, it is recommended that the , rather than replacing the system outright Kotzebue. HEAT’ FOR CITY WATER SYSTEM be injected into the treatment process, in addition to avoiding freeze-ups in the distribution pipes. The present treatment system somewhat from higher-temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including filtration, operate at an optimal water temperature of the existing location at the Public Works campus, or it may be re raw water distribution line from Vortak Lake.This is therefore considered a long n the construction of a new WTP.Ambient i F, based on monitoring conducted by WH Pacific F is expected to consume 1, than the demand for heating all of the public buildings in Kotzebue, After accounting for production and heat transfer inefficiencies, very closely matches the demand curve of an The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Flow Temp. (gpm)(deg. F) 239 227 229 239 224 232 * Calculated using "Advantage Engineering BTU Calculator" http://www.advantageengineering.com/fyi/288/advantageFYI288.php Supply FEASIBILITY STUDY Heat System Parameters rrently in the process of overhauling its energy generation portfolio, focusing on local wind farm and testing eral if its diesel KEA has indicated that it can continue to provide as much Add ity needs, but that issue will have to be revisite heating the WTP and Maintenance building, as described if a shortfall arises. Considering the finite amount of biomass e, it is recommended that the city only supplement the , rather than replacing the system outright. The Btu’s produced are better used to directly displace CITY WATER SYSTEM be injected into the front end of the water treatment to assist in the ups in the distribution pipes. The present treatment system temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including filtration, operate at an optimal water temperature of the existing location at the Public Works campus, or it may be re This is therefore considered a long mbient inlet water temperature F, based on monitoring conducted by WH Pacific F is expected to consume 1,610,000 Btu/hr than the demand for heating all of the public buildings in Kotzebue, After accounting for production and heat transfer inefficiencies, very closely matches the demand curve of an The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Temp.Flow (deg. F)(gpm) 53 199 51 187 48 188 47 200 47 189 49 193 * Calculated using "Advantage Engineering BTU Calculator" http://www.advantageengineering.com/fyi/288/advantageFYI288.php Return rrently in the process of overhauling its energy generation portfolio, focusing on local wind farm and testing eral if its diesel –electric gensets with newer, more efficient KEA has indicated that it can continue to provide as much Add ity needs, but that issue will have to be revisite the WTP and Maintenance building, as described if a shortfall arises. Considering the finite amount of biomass ity only supplement the . The Btu’s produced are better used to directly displace CITY WATER SYSTEM front end of the water treatment to assist in the ups in the distribution pipes. The present treatment system temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including filtration, operate at an optimal water temperature of 45°F. the existing location at the Public Works campus, or it may be re-located to the Hillside area This is therefore considered a long nlet water temperature at the WTP is a F, based on monitoring conducted by WH Pacific, at a flow rate averaging 220 gpm 610,000 Btu/hr, or 38.68 MM Btu/day. than the demand for heating all of the public buildings in Kotzebue,as calculated in Section 4.1.1. After accounting for production and heat transfer inefficiencies,it is expected that very closely matches the demand curve of an Add-Heat preheat The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. Temp. (deg. F) 199 63 187 63 188 58 200 58 189 55 193 59 Daily Load http://www.advantageengineering.com/fyi/288/advantageFYI288.php Return rrently in the process of overhauling its energy generation portfolio, focusing on local wind farm and testing and potential rollout electric gensets with newer, more efficient KEA has indicated that it can continue to provide as much Add ity needs, but that issue will have to be revisited in future years as the new the WTP and Maintenance building, as described if a shortfall arises. Considering the finite amount of biomass ity only supplement the Add-Heat system with biomass . The Btu’s produced are better used to directly displace front end of the water treatment to assist in the ups in the distribution pipes. The present treatment system temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including F.The WTP may be re to the Hillside area This is therefore considered a long-term option, contingent at the WTP is a , at a flow rate averaging 220 gpm , or 38.68 MM Btu/day. as calculated in Section 4.1.1. t is expected that output of Heat preheater The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. BTU/hr* 63 995,000 63 1,122,000 58 940,000 58 1,100,000 55 756,000 59 982,600 Daily Load 23,582,400 December 2012 rrently in the process of overhauling its energy generation portfolio, focusing on increasing reliance and potential rollout of solar electric gensets with newer, more efficient KEA has indicated that it can continue to provide as much Add-Heat from d in future years as the new the WTP and Maintenance building, as described if a shortfall arises. Considering the finite amount of biomass Heat system with biomass . The Btu’s produced are better used to directly displace front end of the water treatment to assist in the ups in the distribution pipes. The present treatment system temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including The WTP may be re-designed at to the Hillside area town,along the term option, contingent at the WTP is a relatively steady , at a flow rate averaging 220 gpm.Heating , or 38.68 MM Btu/day.This is greater as calculated in Section 4.1.1.. output of the proposed er for a re-designed The RDF boiler scenario, as proposed, will supply approximately 25% of the needed energy. BTU/hr* 995,000 1,122,000 940,000 1,100,000 756,000 982,600 23,582,400 December 2012 increasing reliance of solar electric gensets with newer, more efficient Heat from d in future years as the new the WTP and Maintenance building, as described if a shortfall arises. Considering the finite amount of biomass Heat system with biomass . The Btu’s produced are better used to directly displace front end of the water treatment to assist in the ups in the distribution pipes. The present treatment system temperature water, but this option becomes much more viable if the proposed redesign of the WTP goes forward. The advanced water treatment technologies, including designed at along the term option, contingent relatively steady Heating is is greater roposed designed KOTZEBUE BIOMASS 4-5 4.2 PROJECT SITING The selection of a prope feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the statu technology, the ability to expand production as required analysis with assis The drivers for siting of the biomass energy facility inclu 1.Proximity to energy user (load) 2.Land owned or controlled by project stakeholders 3.Compliance with city Zoning Code 4.Accepted by neighboring landowners 5.Compliance with County, State, and Federal regulations 6.Access Steam piping over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe run. In this project as in most, proximity to the end users of the energy produced is the single largest determining factor in facility siting. The city of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential impacts to nei a biomass impact the community. features to comply with applicable safety At present it does not appear that the land and space requirements for either of the proposed plant scenarios processing equipment indicates the process building will be within the range of existing industrial buildings in Kotzebue. detail in Section 5. In and around Kotzebue are many areas with preliminary wetland Wetlands Inventory (NWI). have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under a national Wide permit with t site selection. KOTZEBUE BIOMASS PROJECT SITING The selection of a prope feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the statu technology, the ability to expand production as required analysis with assistance from project partner DOWL The drivers for siting of the biomass energy facility inclu Proximity to energy user (load) Land owned or controlled by project stakeholders Compliance with city Zoning Code Accepted by neighboring landowners Compliance with County, State, and Federal regulations Access to feedstock delivery and storage Steam piping and hot water over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest determining factor in facility siting. ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential impacts to neighbors of the biomass plant are both critical siting factors. a biomass power plant is minimal, there still remains a need to ensure that such a facility does not negatively impact the community. features to comply with applicable safety At present it does not appear that the land and space requirements for either of the proposed plant scenarios will be a limiting factor in site sele processing equipment indicates the process building will be within the range of existing industrial buildings in .Process building and storage requirements for the biomass energy pla Section 5. In and around Kotzebue are many areas with preliminary wetland Wetlands Inventory (NWI). have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under a national Wide permit with t site selection. KOTZEBUE BIOMASS FEASIBILITY STUDY PROJECT SITING ASSESSMENT The selection of a proper site encompasses many issues feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the statu technology, the ability to expand production as required tance from project partner DOWL The drivers for siting of the biomass energy facility inclu Proximity to energy user (load) Land owned or controlled by project stakeholders Compliance with city Zoning Code Accepted by neighboring landowners Compliance with County, State, and Federal regulations to feedstock delivery and storage hot water piping are over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest determining factor in facility siting. ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential ghbors of the biomass plant are both critical siting factors. plant is minimal, there still remains a need to ensure that such a facility does not negatively impact the community.The plant will also need features to comply with applicable safety At present it does not appear that the land and space requirements for either of the proposed plant will be a limiting factor in site sele processing equipment indicates the process building will be within the range of existing industrial buildings in Process building and storage requirements for the biomass energy pla In and around Kotzebue are many areas with preliminary wetland Wetlands Inventory (NWI).Sites 2 and 3 are designated as ‘freshwater emergent wetlands’. have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under a national Wide permit with the designations. FEASIBILITY STUDY ASSESSMENT r site encompasses many issues feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the statu technology, the ability to expand production as required tance from project partner DOWL The drivers for siting of the biomass energy facility inclu Proximity to energy user (load) Land owned or controlled by project stakeholders Compliance with city Zoning Code Accepted by neighboring landowners Compliance with County, State, and Federal regulations to feedstock delivery and storage are predominantly over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential ghbors of the biomass plant are both critical siting factors. plant is minimal, there still remains a need to ensure that such a facility does not negatively The plant will also need features to comply with applicable safety regulations At present it does not appear that the land and space requirements for either of the proposed plant will be a limiting factor in site selection. processing equipment indicates the process building will be within the range of existing industrial buildings in Process building and storage requirements for the biomass energy pla In and around Kotzebue are many areas with preliminary wetland Sites 2 and 3 are designated as ‘freshwater emergent wetlands’. have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under he designations.An onsite delineation survey FEASIBILITY STUDY r site encompasses many issues, such as feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the statu technology, the ability to expand production as required,and more. tance from project partner DOWL HKM. The drivers for siting of the biomass energy facility include (ranked in Land owned or controlled by project stakeholders Compliance with County, State, and Federal regulations predominantly the limiting over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential ghbors of the biomass plant are both critical siting factors. plant is minimal, there still remains a need to ensure that such a facility does not negatively The plant will also need to be designed with appropriate setbacks and safety regulations. At present it does not appear that the land and space requirements for either of the proposed plant ction.Bulk feedstock processing equipment indicates the process building will be within the range of existing industrial buildings in Process building and storage requirements for the biomass energy pla In and around Kotzebue are many areas with preliminary wetland Sites 2 and 3 are designated as ‘freshwater emergent wetlands’. have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under An onsite delineation survey , such as transportation (i.e., road access for feedstock delivery trucks) and utility availability (i.e., electrical and substation access), into account issues such as the environmental impact, the status of current and future production and more.Tetra Tech conducted a project siting de (ranked in relative Compliance with County, State, and Federal regulations limiting factor in project siting, and a dist over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential ghbors of the biomass plant are both critical siting factors.While the environmental impact of plant is minimal, there still remains a need to ensure that such a facility does not negatively to be designed with appropriate setbacks and safety At present it does not appear that the land and space requirements for either of the proposed plant feedstock storage appears to be minimal, and plant processing equipment indicates the process building will be within the range of existing industrial buildings in Process building and storage requirements for the biomass energy pla In and around Kotzebue are many areas with preliminary wetland designation in the Kotzebue National Sites 2 and 3 are designated as ‘freshwater emergent wetlands’. have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under An onsite delineation survey transportation (i.e., road access for feedstock delivery trucks) and utility availability (i.e., electrical and substation access),but also should take s of current and future production Tetra Tech conducted a project siting relative order of importance): factor in project siting, and a dist over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential While the environmental impact of plant is minimal, there still remains a need to ensure that such a facility does not negatively to be designed with appropriate setbacks and safety At present it does not appear that the land and space requirements for either of the proposed plant appears to be minimal, and plant processing equipment indicates the process building will be within the range of existing industrial buildings in Process building and storage requirements for the biomass energy plant are described in designation in the Kotzebue National Sites 2 and 3 are designated as ‘freshwater emergent wetlands’. have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under An onsite delineation survey is recommended December 2012 transportation (i.e., road access for but also should take s of current and future production Tetra Tech conducted a project siting order of importance): factor in project siting, and a distance of over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential While the environmental impact of plant is minimal, there still remains a need to ensure that such a facility does not negatively to be designed with appropriate setbacks and safety At present it does not appear that the land and space requirements for either of the proposed plant appears to be minimal, and plant processing equipment indicates the process building will be within the range of existing industrial buildings in nt are described in greater designation in the Kotzebue National Sites 2 and 3 are designated as ‘freshwater emergent wetlands’.Site 1 does n have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under is recommended prior to December 2012 transportation (i.e., road access for but also should take s of current and future production Tetra Tech conducted a project siting ance of over 1,000’ between source and use is not recommended due to piping cost and energy loss over the pipe this project as in most, proximity to the end users of the energy produced is the single largest ity of Kotzebue has no zoning laws, thus zoning is less important, but land ownership and potential While the environmental impact of plant is minimal, there still remains a need to ensure that such a facility does not negatively to be designed with appropriate setbacks and safety At present it does not appear that the land and space requirements for either of the proposed plant appears to be minimal, and plant processing equipment indicates the process building will be within the range of existing industrial buildings in greater designation in the Kotzebue National Site 1 does not have a designation, but standing water was noted in one of the areas identified as suitable for plant siting. These designations are for planning purposes only, and it is likely the sites will qualify for development under prior to final KOTZEBUE BIOMASS 4-6 A map of Kotzebue of the preliminary wetland delineations in the 4.2.1 SITE 1: Several available locations at the Kotzebue Public Works campus are suitable for construction of a biomass energy plant, including to the west of the Bailer northeast of th Siting at the Public Works campus carries a number of project benefits, including source and energy users) producing renewab system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant configuration. As well, Kotzebue already owns and contro and reduce safety requirements at the site. There are also potential drawbacks to these sites. available unused land at a premium in the city, the si residential property to the southeast. than a smaller facility processing pre noise, visual, emissions, or other impacts. An additional consideration is that there is Building. Swan Lake Boat Harbor upgrades project, 4.2.2 SITE 2: HILLSIDE The Hillside plant site. The the 2009 Sanitation Master Plan to locate The area has been platted and lots subdivided, with the area.Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land. area and approximate site location, from the city looking east. KOTZEBUE BIOMASS Kotzebue identifying the prospective sites follows the of the preliminary wetland delineations in the SITE 1:PUBLIC WORKS FACILIT available locations at the Kotzebue Public Works campus are suitable for construction of a biomass energy plant, including to the west of the Bailer northeast of the WTP and Siting at the Public Works campus carries a number of project benefits, including source and energy users) producing renewable energy to serve either space heating at city system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant configuration. As well, Kotzebue already owns and contro and reduce safety requirements at the site. There are also potential drawbacks to these sites. available unused land at a premium in the city, the si residential property to the southeast. than a smaller-scale RDF boiler processing pre-sorted feedstock noise, visual, emissions, or other impacts. An additional consideration is that there is The city has considered filling the standing water area with dredged material from the upcoming Swan Lake Boat Harbor upgrades project, SITE 2: HILLSIDE Hillside area to the southeast of Kotzebue is . The city of Kotzebue has plans to develop areas of the hillside for residential use the 2009 Sanitation Master Plan to locate The area has been platted and lots subdivided, with the Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land. area and approximate site location, from the city looking east. KOTZEBUE BIOMASS FEASIBILITY STUDY identifying the prospective sites follows the of the preliminary wetland delineations in the PUBLIC WORKS FACILIT available locations at the Kotzebue Public Works campus are suitable for construction of a biomass energy plant, including to the west of the Bailer e WTP and water tanks. Siting at the Public Works campus carries a number of project benefits, including source and energy users)and land ownership and control. Regarding distance to potential energy users, le energy to serve either space heating at city system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant configuration. As well, Kotzebue already owns and contro and reduce safety requirements at the site. There are also potential drawbacks to these sites. available unused land at a premium in the city, the si residential property to the southeast. scale RDF boiler, which is expected to have greater noise, odor, and air emis sorted feedstock noise, visual, emissions, or other impacts. An additional consideration is that there is has considered filling the standing water area with dredged material from the upcoming Swan Lake Boat Harbor upgrades project, SITE 2: HILLSIDE area to the southeast of Kotzebue is ity of Kotzebue has plans to develop areas of the hillside for residential use the 2009 Sanitation Master Plan to locate The area has been platted and lots subdivided, with the Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land. area and approximate site location, from the city looking east. FEASIBILITY STUDY identifying the prospective sites follows the of the preliminary wetland delineations in the city. PUBLIC WORKS FACILITY available locations at the Kotzebue Public Works campus are suitable for construction of a biomass energy plant, including to the west of the Bailer tanks. Siting at the Public Works campus carries a number of project benefits, including and land ownership and control. Regarding distance to potential energy users, le energy to serve either space heating at city system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant configuration. As well, Kotzebue already owns and contro and reduce safety requirements at the site. There are also potential drawbacks to these sites. available unused land at a premium in the city, the si residential property to the southeast.This is more of a challenge to a large , which is expected to have greater noise, odor, and air emis sorted feedstock.This location is the most sensitive of the sites identified to noise, visual, emissions, or other impacts. An additional consideration is that there is currently standing water in the area has considered filling the standing water area with dredged material from the upcoming Swan Lake Boat Harbor upgrades project,thus creating a location for the facility. area to the southeast of Kotzebue is ity of Kotzebue has plans to develop areas of the hillside for residential use the 2009 Sanitation Master Plan to locate a new w The area has been platted and lots subdivided, with the Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land. area and approximate site location, from the city looking east. FEASIBILITY STUDY identifying the prospective sites follows the . available locations at the Kotzebue Public Works campus are suitable for construction of a biomass energy plant, including to the west of the Bailer building and vehicle storage Quonset hut, and to the Siting at the Public Works campus carries a number of project benefits, including and land ownership and control. Regarding distance to potential energy users, le energy to serve either space heating at city system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant configuration. As well, Kotzebue already owns and controls access to this land, which will speed permitting There are also potential drawbacks to these sites.For one, the available space is limited. available unused land at a premium in the city, the site is bordered closely by facilities on all sides, and This is more of a challenge to a large , which is expected to have greater noise, odor, and air emis This location is the most sensitive of the sites identified to currently standing water in the area has considered filling the standing water area with dredged material from the upcoming creating a location for the facility. area to the southeast of Kotzebue is also under consideration as a potential ity of Kotzebue has plans to develop areas of the hillside for residential use a new water treatment plant The area has been platted and lots subdivided, with the city of Kotzebue owning the majority of lots in this Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land. area and approximate site location, from the city looking east. identifying the prospective sites follows the discussion (Figure available locations at the Kotzebue Public Works campus are suitable for construction of a biomass uilding and vehicle storage Quonset hut, and to the Siting at the Public Works campus carries a number of project benefits, including and land ownership and control. Regarding distance to potential energy users, le energy to serve either space heating at city-owned buildings or the system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant ls access to this land, which will speed permitting For one, the available space is limited. te is bordered closely by facilities on all sides, and This is more of a challenge to a large , which is expected to have greater noise, odor, and air emis This location is the most sensitive of the sites identified to currently standing water in the area has considered filling the standing water area with dredged material from the upcoming creating a location for the facility. under consideration as a potential ity of Kotzebue has plans to develop areas of the hillside for residential use ater treatment plant on the east side of the Hillside area ity of Kotzebue owning the majority of lots in this Kikiktagaruk Inupiat Corporation (KIC) owns the surrounding land.Figure (Figure 4-2), and available locations at the Kotzebue Public Works campus are suitable for construction of a biomass uilding and vehicle storage Quonset hut, and to the Siting at the Public Works campus carries a number of project benefits, including proximity and land ownership and control. Regarding distance to potential energy users, owned buildings or the system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant ls access to this land, which will speed permitting For one, the available space is limited. te is bordered closely by facilities on all sides, and This is more of a challenge to a large-scale MSW gasification system , which is expected to have greater noise, odor, and air emis This location is the most sensitive of the sites identified to currently standing water in the area to the west of the bailer has considered filling the standing water area with dredged material from the upcoming creating a location for the facility. under consideration as a potential ity of Kotzebue has plans to develop areas of the hillside for residential use on the east side of the Hillside area ity of Kotzebue owning the majority of lots in this Figure 4-1 is a picture of Hillside December 2012 , and includes overlays available locations at the Kotzebue Public Works campus are suitable for construction of a biomass uilding and vehicle storage Quonset hut, and to the proximity (both to feedstock and land ownership and control. Regarding distance to potential energy users, owned buildings or the city Add system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant ls access to this land, which will speed permitting For one, the available space is limited.Not only is te is bordered closely by facilities on all sides, and scale MSW gasification system , which is expected to have greater noise, odor, and air emissions than a This location is the most sensitive of the sites identified to potential the west of the bailer has considered filling the standing water area with dredged material from the upcoming under consideration as a potential biomass energy ity of Kotzebue has plans to develop areas of the hillside for residential use, and proposed in on the east side of the Hillside area ity of Kotzebue owning the majority of lots in this is a picture of Hillside December 2012 includes overlays available locations at the Kotzebue Public Works campus are suitable for construction of a biomass uilding and vehicle storage Quonset hut, and to the (both to feedstock and land ownership and control. Regarding distance to potential energy users, ity Add-Heat system is logistically feasible at this prospective site. Hot water distribution piping is minimal in either plant ls access to this land, which will speed permitting Not only is te is bordered closely by facilities on all sides, and scale MSW gasification system than a potential the west of the bailer has considered filling the standing water area with dredged material from the upcoming energy , and proposed in on the east side of the Hillside area. ity of Kotzebue owning the majority of lots in this is a picture of Hillside KOTZEBUE BIOMASS 4-7 Figure The hillside siting offers the advantage that a proposed biomass f water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new lot, altogether, could be developed for this facility. This location has configuration of any size facility. The infrastructure on the hillside is underdeveloped. would be required for years before construction begins. Thermal energy produced by a facility at this location can only be used for heating city water, as a supplement or a replacement to the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W 4.2.3 SITE 3: CITY INDUSTR A third alternate plant site This location would allow smoke stack emissions to be concentrated in one area, instead of out over the Regional Corporation KOTZEBUE BIOMASS Figure 4-1:Photo of Hillside Area and Site 2 The hillside siting offers the advantage that a proposed biomass f water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new lot, altogether, could be developed for this facility. This location has several advantages, including configuration of any size facility. The infrastructure on the hillside is underdeveloped. would be required for development of the site. before construction begins. Thermal energy produced by a facility at this location can only be used for heating city water, as a supplement or a replacement to the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W SITE 3: CITY INDUSTR A third alternate plant site This location would allow smoke stack emissions to be concentrated in one area, instead of out over the city. The lots directly south of the power plant are an option. These are owned by NANA Regional Corporation, and it is likely that a transfer of ownership could be arranged for plant siting KOTZEBUE BIOMASS FEASIBILITY STUDY Photo of Hillside Area and Site 2 The hillside siting offers the advantage that a proposed biomass f water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new lot, altogether, could be developed for this facility. veral advantages, including configuration of any size facility. The infrastructure on the hillside is underdeveloped. development of the site. before construction begins. Thermal energy produced by a facility at this location can only be used for heating city water, as a supplement or a replacement to the current Add the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W SITE 3: CITY INDUSTRIAL SECTOR NEAR KEA A third alternate plant site could be located near the KEA Power plant, in the industrial part of This location would allow smoke stack emissions to be concentrated in one area, instead of ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting FEASIBILITY STUDY Photo of Hillside Area and Site 2 The hillside siting offers the advantage that a proposed biomass f water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new lot, altogether, could be developed for this facility. veral advantages, including c The infrastructure on the hillside is underdeveloped. development of the site.Also, plans exist for developing this area, Thermal energy produced by a facility at this location can only be used for heating city water, as a the current Add- the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W IAL SECTOR NEAR KEA could be located near the KEA Power plant, in the industrial part of This location would allow smoke stack emissions to be concentrated in one area, instead of ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting FEASIBILITY STUDY Photo of Hillside Area and Site 2 The hillside siting offers the advantage that a proposed biomass f water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new lot, altogether, could be developed for this facility.Large storage facilities could easily be located here. city ownership, and ample space available for siting and The infrastructure on the hillside is underdeveloped.Site grading and connection to utility infrastructure Also, plans exist for developing this area, Thermal energy produced by a facility at this location can only be used for heating city water, as a -Heat system. A redesigned Add the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W IAL SECTOR NEAR KEA POWER PLANT could be located near the KEA Power plant, in the industrial part of This location would allow smoke stack emissions to be concentrated in one area, instead of ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting The hillside siting offers the advantage that a proposed biomass facility could be located near the proposed water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new Large storage facilities could easily be located here. ity ownership, and ample space available for siting and Site grading and connection to utility infrastructure Also, plans exist for developing this area, Thermal energy produced by a facility at this location can only be used for heating city water, as a Heat system. A redesigned Add the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned W POWER PLANT could be located near the KEA Power plant, in the industrial part of This location would allow smoke stack emissions to be concentrated in one area, instead of ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting acility could be located near the proposed water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be requi Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new Large storage facilities could easily be located here. ity ownership, and ample space available for siting and Site grading and connection to utility infrastructure Also, plans exist for developing this area,but Thermal energy produced by a facility at this location can only be used for heating city water, as a Heat system. A redesigned Add-Heat system could absorb the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any additional produced energy would be limited to building heat for the redesigned WTP. could be located near the KEA Power plant, in the industrial part of This location would allow smoke stack emissions to be concentrated in one area, instead of ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting December 2012 acility could be located near the proposed water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is insufficient in providing all the required “add heat”, a separate “add heat” system would also be required. Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new Large storage facilities could easily be located here. ity ownership, and ample space available for siting and Site grading and connection to utility infrastructure but it may be Thermal energy produced by a facility at this location can only be used for heating city water, as a Heat system could absorb the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any could be located near the KEA Power plant, in the industrial part of Kotzebue This location would allow smoke stack emissions to be concentrated in one area, instead of spreading them ity. The lots directly south of the power plant are an option. These are owned by NANA , and it is likely that a transfer of ownership could be arranged for plant siting. December 2012 acility could be located near the proposed water treatment plant, making an “add heat” system logistically simple. Once again though, if the biomass is red. Since this area is not fully developed, the facility size is not as important. Lots could be combined or a new Large storage facilities could easily be located here. ity ownership, and ample space available for siting and Site grading and connection to utility infrastructure a few Thermal energy produced by a facility at this location can only be used for heating city water, as a Heat system could absorb the entire production of with an RDF Boiler or an MSW Gasifier system at this location. Outlets for any Kotzebue. spreading them ity. The lots directly south of the power plant are an option. These are owned by NANA While KOTZEBUE BIOMASS 4-8 relations between the could present significant additional cost to the project. The city of Kotzebue has plans to construct a designated water treatm loops. If the biomass were used for heating water in an location would be advantageous, because it could take biomass energy potential is insufficient to provide all have to purchase main would be required anyway. alternative facility types should be considered. KOTZEBUE BIOMASS relations between the could present significant additional cost to the project. ity of Kotzebue has plans to construct a designated water treatment and distribution center. Currently heated water is added to one of the loops. If the biomass were used for heating water in an location would be advantageous, because it could take biomass energy potential is insufficient to provide all have to purchase Add-Heat ain would be required anyway. alternative facility types should be considered. KOTZEBUE BIOMASS FEASIBILITY STUDY relations between the city and NANA are strong, land conveyance processes are slow, however, and this could present significant additional cost to the project. ity of Kotzebue has plans to construct a designated ent and distribution center. Currently heated water is added to one of the loops. If the biomass were used for heating water in an location would be advantageous, because it could take biomass energy potential is insufficient to provide all Heat from KEA, which it currently does on a fixed fee basis, and a ain would be required anyway. alternative facility types should be considered. FEASIBILITY STUDY and NANA are strong, land conveyance processes are slow, however, and this could present significant additional cost to the project. ity of Kotzebue has plans to construct a designated ent and distribution center. Currently heated water is added to one of the loops. If the biomass were used for heating water in an location would be advantageous, because it could take biomass energy potential is insufficient to provide all from KEA, which it currently does on a fixed fee basis, and a ain would be required anyway.If the biomass is insufficient in providing all the required alternative facility types should be considered. FEASIBILITY STUDY and NANA are strong, land conveyance processes are slow, however, and this could present significant additional cost to the project. ity of Kotzebue has plans to construct a designated Add-Heat ent and distribution center. Currently heated water is added to one of the loops. If the biomass were used for heating water in an Add- location would be advantageous, because it could take advantage of planned infrastructure. However, if the biomass energy potential is insufficient to provide all of the city’s from KEA, which it currently does on a fixed fee basis, and a If the biomass is insufficient in providing all the required and NANA are strong, land conveyance processes are slow, however, and this Heat line from the KEA power plant to the ent and distribution center. Currently heated water is added to one of the -Heat system for the advantage of planned infrastructure. However, if the ity’s Add-Heat requirements the from KEA, which it currently does on a fixed fee basis, and a If the biomass is insufficient in providing all the required and NANA are strong, land conveyance processes are slow, however, and this line from the KEA power plant to the ent and distribution center. Currently heated water is added to one of the system for the city’s water system, this advantage of planned infrastructure. However, if the Heat requirements the from KEA, which it currently does on a fixed fee basis, and a new If the biomass is insufficient in providing all the required December 2012 and NANA are strong, land conveyance processes are slow, however, and this line from the KEA power plant to the ent and distribution center. Currently heated water is added to one of the city’s distribution ity’s water system, this advantage of planned infrastructure. However, if the requirements the city would still new Add-Heat If the biomass is insufficient in providing all the required Add- December 2012 and NANA are strong, land conveyance processes are slow, however, and this line from the KEA power plant to the city’s ity’s distribution ity’s water system, this advantage of planned infrastructure. However, if the ity would still Heat water -Heat, KOTZEBUE BIOMASS 4 Figure KOTZEBUE BIOMASS 4-9 Figure 4-2:Biomass Energy Plant Sites KOTZEBUE BIOMASS FEASIBILITY STUDY Biomass Energy Plant Sites FEASIBILITY STUDY Biomass Energy Plant Sites FEASIBILITY STUDY December 2012December 2012 KOTZEBUE BIOMASS 5-1 5 CONCEPTUAL Tetra Tech reviewed major heating and power options that are applicable to the general project conditions thus far determined for the prospective technology for the biomass power plant and des 5.1 FACILITY DESCRIPTION Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue Scenario 1 will combust densified refuse on source stream. This waste stream will be combusted in a single operating expense. Thermal energy produced would could also be used to supplement the Scenario 2 is round thermal energy for system. 5.2 SCENARIO 1 Tetra Tech developed the following conceptual plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard engineering practices of 10% following section and a corresponding description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. Feedstock Man Feedstock wood materials from the be used to collect materials city’s MSW waste stream. possibly in conjunction with an aluminum and tin recycling program. Once sorted, the RDF adjacent to the Bailer Building on the Kotzebue Public Works achieve the standard cardboard/paper/wood ratio, then pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a KOTZEBUE BIOMASS CONCEPTUAL Tetra Tech reviewed major heating and power options that are applicable to the general project conditions thus far determined for the prospective technology for the biomass power plant and des FACILITY DESCRIPTION Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue Scenario 1 will combust densified refuse on source-separation and on stream. This waste stream will be combusted in a single operating expense. Thermal energy produced would could also be used to supplement the Scenario 2 is gasification round thermal energy for SCENARIO 1 – Tetra Tech developed the following conceptual plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard engineering practices of 10% following section and a corresponding description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. Feedstock Management & Logistics Feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and wood materials from the be used to collect materials city’s MSW waste stream. possibly in conjunction with an aluminum and tin recycling program. Once sorted, the RDF adjacent to the Bailer Building on the Kotzebue Public Works achieve the standard cardboard/paper/wood ratio, then pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a KOTZEBUE BIOMASS FEASI CONCEPTUAL ENGINEERING DESIGN Tetra Tech reviewed major heating and power options that are applicable to the general project conditions thus far determined for the prospective technology for the biomass power plant and des FACILITY DESCRIPTIONS Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue Scenario 1 will combust densified refuse separation and on-site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste stream. This waste stream will be combusted in a single operating expense. Thermal energy produced would could also be used to supplement the gasification-based system round thermal energy for pre-heating a redesigned version of RDF BOILER SYSTEM Tetra Tech developed the following conceptual plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard engineering practices of 10%system design. following section and a corresponding description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. agement & Logistics for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and wood materials from the city of Kotzebue waste stream. be used to collect materials, eithe city’s MSW waste stream.RDF fuel will be separated from the waste stream in the Bailer possibly in conjunction with an aluminum and tin recycling program. Once sorted, the RDF fuel material is transported to the fuel storage room of the adjacent to the Bailer Building on the Kotzebue Public Works achieve the standard cardboard/paper/wood ratio, then pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a FEASIBILITY STUDY ENGINEERING DESIGN Tetra Tech reviewed major heating and power options that are applicable to the general project conditions thus far determined for the prospective plant. The following section identifies the most likely process technology for the biomass power plant and describes the conceptual plant design. Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue Scenario 1 will combust densified refuse-derive waste (RDF) site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste stream. This waste stream will be combusted in a single operating expense. Thermal energy produced would could also be used to supplement the city water Add system processing the entire city’s heating a redesigned version of RDF BOILER SYSTEM Tetra Tech developed the following conceptual process plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard system design.The system process flow is described in sequence in the following section and a corresponding process flow diagram is supplied description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and ity of Kotzebue waste stream. , either as source- RDF fuel will be separated from the waste stream in the Bailer possibly in conjunction with an aluminum and tin recycling program. fuel material is transported to the fuel storage room of the adjacent to the Bailer Building on the Kotzebue Public Works achieve the standard cardboard/paper/wood ratio, then pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a BILITY STUDY ENGINEERING DESIGN Tetra Tech reviewed major heating and power options that are applicable to the general project conditions lant. The following section identifies the most likely process cribes the conceptual plant design. Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue derive waste (RDF)in a commercial site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste stream. This waste stream will be combusted in a single-chamber ambient operating expense. Thermal energy produced would be used for heating Public Works c city water Add-Heat system processing the entire city’s heating a redesigned version of the process design of a RDF boiler system for Scenario 1. plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard The system process flow is described in sequence in the process flow diagram is supplied description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and ity of Kotzebue waste stream.The city’s waste management equipment will -separated material from the producers RDF fuel will be separated from the waste stream in the Bailer possibly in conjunction with an aluminum and tin recycling program. fuel material is transported to the fuel storage room of the adjacent to the Bailer Building on the Kotzebue Public Works achieve the standard cardboard/paper/wood ratio, then sent through a shred pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a Tetra Tech reviewed major heating and power options that are applicable to the general project conditions lant. The following section identifies the most likely process cribes the conceptual plant design. Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue in a commercial site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste chamber ambient be used for heating Public Works c Heat system. processing the entire city’s MSW waste stream, and producing year the city water supply design of a RDF boiler system for Scenario 1. plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard The system process flow is described in sequence in the process flow diagram is supplied description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and The city’s waste management equipment will ted material from the producers RDF fuel will be separated from the waste stream in the Bailer possibly in conjunction with an aluminum and tin recycling program. fuel material is transported to the fuel storage room of the adjacent to the Bailer Building on the Kotzebue Public Works campus sent through a shred pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a Tetra Tech reviewed major heating and power options that are applicable to the general project conditions lant. The following section identifies the most likely process cribes the conceptual plant design. Tetra Tech evaluated the viability of two energy generation configurations at Kotzebue: in a commercial-scale boiler. site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste chamber ambient-air boiler of less capital and be used for heating Public Works campus waste stream, and producing year city water supply treatment and Add design of a RDF boiler system for Scenario 1. plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard The system process flow is described in sequence in the process flow diagram is supplied below as Figure description below, the process has been broken down into its three critical components: feedstock management, energy generation/distribution, and combustion byproduct management. for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and The city’s waste management equipment will ted material from the producers RDF fuel will be separated from the waste stream in the Bailer fuel material is transported to the fuel storage room of the energy ampus.Here, raw RDF is blended to sent through a shredder and pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a December 2012 Tetra Tech reviewed major heating and power options that are applicable to the general project conditions lant. The following section identifies the most likely process Scenario 1 will re site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste air boiler of less capital and ampus buildings waste stream, and producing year treatment and Add design of a RDF boiler system for Scenario 1. plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard The system process flow is described in sequence in the Figure 5-1.In the description below, the process has been broken down into its three critical components: feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and The city’s waste management equipment will ted material from the producers or mixed with the RDF fuel will be separated from the waste stream in the Bailer building, nergy plant building Here, raw RDF is blended to der and briquette unit. pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a December 2012 Tetra Tech reviewed major heating and power options that are applicable to the general project conditions lant. The following section identifies the most likely process Scenario 1 will rely site sorting of Kotzebue’s waste stream to produce a homogenous RDF waste air boiler of less capital and buildings, but waste stream, and producing year- treatment and Add-Heat design of a RDF boiler system for Scenario 1.The plant design is engineered and tailored to conditions specific to the site, at a level corresponding to standard The system process flow is described in sequence in the In the description below, the process has been broken down into its three critical components: feedstock for this system will consist of sorted and separated cardboard, newspaper, mixed paper, and The city’s waste management equipment will or mixed with the uilding, uilding, Here, raw RDF is blended to unit.A pelletizing unit may be substituted for briquetting in this stage, but would require the addition of a KOTZEBUE BIOMASS 5-2 hammer mill and possibly other equipment at an additional cost. to store blending of various grades of feedstock materials, and feedstock fuel processed at the facility is expected to be content as received is specification can be either dried or blended with in Operati understanding Several 4 assumed these bins can be moved from the sorting location building using existing city equipment (e.g., front Energy Generation & Distribution Sorted, mixed, dried, and densified Alternatively, a mechanized Walking floor systems add significant additional cost, and were not deemed necessa material needing transport twin screw augers homogenize and break up densified fuel, metering into the stoker The stoker and hazard associated with high exhaust gasses. from the bottom of the boiler. The working fluid (here, water) is heated at low pressure (15 The water will be metered as needed to the underground piping, which will enter each building at its boiler room and tie into existing heating distribution systems. heating needs. Feed control and plant operations controller (PLC) systems. Combustion B Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori dependent on the feedstock, moist produced by the system is expected to be KOTZEBUE BIOMASS hammer mill and possibly other equipment at an additional cost. to store a 60-day suppl blending of various grades of feedstock materials, and feedstock fuel processed at the facility is expected to be content as received is specification can be either dried or blended with in Operational experience understanding the seasonal variat Several 4-6 yard rolling bins will be included in the project capital costs for feedstock management. assumed these bins can be moved from the sorting location building using existing city equipment (e.g., front Energy Generation & Distribution Sorted, mixed, dried, and densified Alternatively, a mechanized Walking floor systems add significant additional cost, and were not deemed necessa material needing transport twin screw augers homogenize and break up densified fuel, metering into the stoker stoker –boiler and hazard associated with high exhaust gasses.The solid material remaining is the ash waste product which i from the bottom of the boiler. The working fluid (here, water) is heated at low pressure (15 water will be metered as needed to the underground piping, which will enter each building at its boiler room and tie into existing heating distribution systems. heating needs. Feed control and plant operations controller (PLC) systems. Combustion Byproduct Management Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori dependent on the feedstock, moist produced by the system is expected to be KOTZEBUE BIOMASS FEASI hammer mill and possibly other equipment at an additional cost. day supply of feedstock blending of various grades of feedstock materials, and feedstock fuel processed at the facility is expected to be content as received is expected to be approximately specification can be either dried or blended with in experience is critical in this stage the seasonal variat 6 yard rolling bins will be included in the project capital costs for feedstock management. assumed these bins can be moved from the sorting location building using existing city equipment (e.g., front Energy Generation & Distribution Sorted, mixed, dried, and densified Alternatively, a mechanized ‘walking floor’ Walking floor systems add significant additional cost, and were not deemed necessa material needing transport. The surge hopper marks the beginning of the combustion cycle. twin screw augers homogenize and break up densified fuel, metering into the stoker boiler system will ut and hazard associated with high The solid material remaining is the ash waste product which i from the bottom of the boiler. The working fluid (here, water) is heated at low pressure (15 water will be metered as needed to the underground piping, which will enter each building at its boiler room and tie into existing heating distribution systems.Existing diesel boilers are expected to be retained for backup or on Feed control and plant operations controller (PLC) systems. yproduct Management Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori dependent on the feedstock, moist produced by the system is expected to be FEASIBILITY STUDY hammer mill and possibly other equipment at an additional cost. y of feedstock, sufficient for this configuration blending of various grades of feedstock materials, and feedstock fuel processed at the facility is expected to be expected to be approximately specification can be either dried or blended with in is critical in this stage the seasonal variations inherent in the Arctic. 6 yard rolling bins will be included in the project capital costs for feedstock management. assumed these bins can be moved from the sorting location building using existing city equipment (e.g., front Sorted, mixed, dried, and densified RDF fuel will likely be manually loaded to a 1 ‘walking floor’system Walking floor systems add significant additional cost, and were not deemed necessa . The surge hopper marks the beginning of the combustion cycle. twin screw augers homogenize and break up densified fuel, metering into the stoker system will utilize a 3-pass, hydronic hot -pressure steam. The solid material remaining is the ash waste product which i The working fluid (here, water) is heated at low pressure (15 water will be metered as needed to the Water Treatment Plant underground piping, which will enter each building at its boiler room and tie into existing heating Existing diesel boilers are expected to be retained for backup or on Feed control and plant operations are managed automatically via control panel and programmable logic yproduct Management Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori dependent on the feedstock, moisture content and the transfo produced by the system is expected to be baled with residual MSW and BILITY STUDY hammer mill and possibly other equipment at an additional cost. , sufficient for this configuration blending of various grades of feedstock materials, and summer storage feedstock fuel processed at the facility is expected to be approximately expected to be approximately 10-30 specification can be either dried or blended with in-spec material to reach the desired b is critical in this stage; in order ions inherent in the Arctic. 6 yard rolling bins will be included in the project capital costs for feedstock management. assumed these bins can be moved from the sorting location building using existing city equipment (e.g., front-end loaders, skid RDF fuel will likely be manually loaded to a 1 system can transition stored f Walking floor systems add significant additional cost, and were not deemed necessa . The surge hopper marks the beginning of the combustion cycle. twin screw augers homogenize and break up densified fuel, metering into the stoker pass, hydronic hot pressure steam.In addition to The solid material remaining is the ash waste product which i The working fluid (here, water) is heated at low pressure (15 Water Treatment Plant underground piping, which will enter each building at its boiler room and tie into existing heating Existing diesel boilers are expected to be retained for backup or on are managed automatically via control panel and programmable logic Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori ure content and the transfo baled with residual MSW and hammer mill and possibly other equipment at an additional cost.The feedstock storage area is designed , sufficient for this configuration. summer storage approximately 30 percent.Any material received outs of that spec material to reach the desired b ; in order to produce ions inherent in the Arctic. 6 yard rolling bins will be included in the project capital costs for feedstock management. assumed these bins can be moved from the sorting location within the Bailer end loaders, skid-steer, etc). RDF fuel will likely be manually loaded to a 1 can transition stored f Walking floor systems add significant additional cost, and were not deemed necessa . The surge hopper marks the beginning of the combustion cycle. twin screw augers homogenize and break up densified fuel, metering into the stoker pass, hydronic hot-water based boiler system, reducing the cost In addition to hot water The solid material remaining is the ash waste product which i The working fluid (here, water) is heated at low pressure (15-30 psi) to desired temperature (180 deg Water Treatment Plant (WTP underground piping, which will enter each building at its boiler room and tie into existing heating Existing diesel boilers are expected to be retained for backup or on are managed automatically via control panel and programmable logic Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the ori ure content and the transformational process noted above baled with residual MSW and disposed of in the city landfill. feedstock storage area is designed This will allow for onsite drying, summer storage.The lower heat value of the approximately 6520 Btu/lb, and the moisture Any material received outs of that spec material to reach the desired b to produce consistent 6 yard rolling bins will be included in the project capital costs for feedstock management. within the Bailer building steer, etc). RDF fuel will likely be manually loaded to a 1-2 day surge hopper. can transition stored fuels into the combustion cycle. Walking floor systems add significant additional cost, and were not deemed necessary for the volume of . The surge hopper marks the beginning of the combustion cycle. twin screw augers homogenize and break up densified fuel, metering into the stoker – water based boiler system, reducing the cost hot water,the boiler The solid material remaining is the ash waste product which is mechanically 30 psi) to desired temperature (180 deg P) and the Maintenance Shop underground piping, which will enter each building at its boiler room and tie into existing heating Existing diesel boilers are expected to be retained for backup or on are managed automatically via control panel and programmable logic Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 2 to 10 percent of the original feedstock, but rmational process noted above disposed of in the city landfill. December 2012 feedstock storage area is designed This will allow for onsite drying, The lower heat value of the lb, and the moisture Any material received outs of that spec material to reach the desired blend consistent feed material 6 yard rolling bins will be included in the project capital costs for feedstock management. uilding to the process 2 day surge hopper. uels into the combustion cycle. ry for the volume of . The surge hopper marks the beginning of the combustion cycle.From here, –boiler unit. water based boiler system, reducing the cost the boiler generates ash and mechanically removed 30 psi) to desired temperature (180 deg ) and the Maintenance Shop underground piping, which will enter each building at its boiler room and tie into existing heating Existing diesel boilers are expected to be retained for backup or on-call peak are managed automatically via control panel and programmable logic Ash is produced by the combustion process and is collected as noted in the energy generation section. ginal feedstock, but rmational process noted above disposed of in the city landfill. December 2012 feedstock storage area is designed This will allow for onsite drying, The lower heat value of the lb, and the moisture Any material received outs of that ratio. feed material 6 yard rolling bins will be included in the project capital costs for feedstock management.It is to the process 2 day surge hopper. uels into the combustion cycle. ry for the volume of rom here, water based boiler system, reducing the cost ash and removed 30 psi) to desired temperature (180 deg C). ) and the Maintenance Shop via underground piping, which will enter each building at its boiler room and tie into existing heating call peak are managed automatically via control panel and programmable logic Ash is produced by the combustion process and is collected as noted in the energy generation section. ginal feedstock, but is rmational process noted above. Ash disposed of in the city landfill. KOTZEBUE BIOMASS 5-3 Air Pollution Control and is denoted as “gas contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA will be selected further into the design process, but would likely include one or more standard technologies, including cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital expenditure as such. 5.2.1 SCENARIO 1 SYSTEM SC The boiler users supplied. additional capacity allows turn demand for thermal energy, demonstrated in Table Table Peak Season Analysis Low Season Analysis Additionally, several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% + results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as needed to heat more city buildings. KOTZEBUE BIOMASS Air Pollution Control and is denoted as “gas contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA will be selected further into the design process, but would likely include one or more standard technologies, including cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital expenditure as such. SCENARIO 1 SYSTEM SC boiler system in Scenario 1 users supplied.Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The additional capacity allows turn demand for thermal energy, demonstrated in Table Table 5-1:Scenario 1 Seasonal Variability Seasonal Variability Peak Season Analysis Low Season Analysis Additionally,an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% + results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as needed to heat more city buildings. KOTZEBUE BIOMASS FEASI Air Pollution Control (APC)is the final treatment of the gas stream prior to release into and is denoted as “gas cleanup” in Figure contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA will be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital expenditure as such. SCENARIO 1 SYSTEM SCALE FLEXIBILITY in Scenario 1 is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The additional capacity allows turn-up and turn demand for thermal energy, demonstrated in Table Scenario 1 Seasonal Variability Seasonal Variability Peak Season Analysis Feedstock Demand (TPD) Hot Water (MM BTU/hr) Low Season Analysis Feedstock Demand (TPD) Hot Water (MM BTU/hr) an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% + results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as needed to heat more city buildings. FEASIBILITY STUDY is the final treatment of the gas stream prior to release into cleanup” in Figure 5-1. contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. will be selected further into the design process, but would likely include one or more standard cyclone dust collectors, baghouses cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital ALE FLEXIBILITY is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The up and turn-down capability to accom demand for thermal energy, demonstrated in Table Scenario 1 Seasonal Variability Seasonal Variability Feedstock Demand (TPD) Hot Water (MM BTU/hr) Feedstock Demand (TPD) Hot Water (MM BTU/hr) an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% + results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as BILITY STUDY is the final treatment of the gas stream prior to release into This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet and State environmental regulatory agency. will be selected further into the design process, but would likely include one or more standard cyclone dust collectors, baghouses, and electrostatic precipitators cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital ALE FLEXIBILITY is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The down capability to accom demand for thermal energy, demonstrated in Table 5-1. Feedstock Demand (TPD) Hot Water (MM BTU/hr) Feedstock Demand (TPD) Hot Water (MM BTU/hr) an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% + results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as is the final treatment of the gas stream prior to release into This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet and State environmental regulatory agency. will be selected further into the design process, but would likely include one or more standard , and electrostatic precipitators cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The down capability to accommodate fluctuations in Scenario 1 2.21 0.93 0.48 0.39 an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can immediately translate to more buildings heated by the system. 60% +capture rate of RDF is achievable, and results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as is the final treatment of the gas stream prior to release into This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet and State environmental regulatory agency. will be selected further into the design process, but would likely include one or more standard , and electrostatic precipitators cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The modate fluctuations in an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can capture rate of RDF is achievable, and results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as December 2012 is the final treatment of the gas stream prior to release into the atmosphere This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet and State environmental regulatory agency.APC equipment will be selected further into the design process, but would likely include one or more standard , and electrostatic precipitators. The less- cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The modate fluctuations in seasonal an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can capture rate of RDF is achievable, and results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as December 2012 the atmosphere This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet APC equipment will be selected further into the design process, but would likely include one or more standard -costly cyclonic dry systems are expected to be sufficient for this configuration, and are factored into the capital is designed to be oversized to allow for additional feedstock input and energy Primarily, this is because boilers are offered in a relatively standard 1.5 MM Btu size. The seasonal an RDF system in Kotzebue has significant ability for expansion in feedstock input through several sources. Increased production and/or capture of cardboard, paper, and wood materials can capture rate of RDF is achievable, and results in an increase of 60 tons per year of feedstock material. Pellet purchase can also be increased as KOTZEBUE BIOMASS 5-4 Figure RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at approximately 40 tons at a 50 occurs in September, as the heating season is beginning to ramp up. Figure 5 in boiler operations and RDF briquette storage. 0 10 20 30 40 50 60 70 TonsRDF/monthKOTZEBUE BIOMASS Figure 5-1:Feedstock RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at approximately 40 tons at a 50 occurs in September, as the heating season is beginning to ramp up. Figure 5 in boiler operations and RDF briquette storage. RDF Feedstock Input and Stockpile Levels KOTZEBUE BIOMASS FEASI Feedstock Storage Schedule RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at approximately 40 tons at a 50% RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply occurs in September, as the heating season is beginning to ramp up. Figure 5 in boiler operations and RDF briquette storage. RDF Feedstock Input and Stockpile Levels FEASIBILITY STUDY Storage Schedule RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply occurs in September, as the heating season is beginning to ramp up. Figure 5 in boiler operations and RDF briquette storage. RDF Feedstock Input and Stockpile Levels BILITY STUDY RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply occurs in September, as the heating season is beginning to ramp up. Figure 5 RDF Feedstock Input and Stockpile Levels RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply occurs in September, as the heating season is beginning to ramp up. Figure 5 RDF Feedstock Input and Stockpile Levels Boiler Feed RDF Stockpile RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply occurs in September, as the heating season is beginning to ramp up. Figure 5-1 shows the seasonal variation Boiler Feed Stockpile December 2012 RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply 1 shows the seasonal variation December 2012 RDF feedstock will be stockpiled through summer months and drawn down in the winter months. RDF briquettes will be stored in the plant building storage area in the offseason. Maximum storage is expected at % RDF capture rate, and 70 tons at a 60% RDF capture rate. Maximum supply 1 shows the seasonal variation KOTZEBUE 5 KOTZEBUE COMMUNITY ELECTRIC FEASIBILITY STUDY 5-5 Figure 5-2:Scenario 1 COMMUNITY ELECTRIC FEASIBILITY STUDY Scenario 1 –RDF Boiler COMMUNITY ELECTRIC FEASIBILITY STUDY RDF Boiler Block Flow Diagram COMMUNITY ELECTRIC FEASIBILITY STUDY Block Flow Diagram COMMUNITY ELECTRIC FEASIBILITY STUDY December 2012December 2012 KOTZEBUE BIOMASS 5 KOTZEBUE BIOMASS 5-6 Figure 5-3: KOTZEBUE BIOMASS FEASIBILITY STUDY Kotzebue Biomass Power Plant Facility Configuration FEASIBILITY STUDY Biomass Power Plant Facility Configuration FEASIBILITY STUDY Biomass Power Plant Facility ConfigurationBiomass Power Plant Facility Configuration (In-Town RDF Plant)Town RDF Plant) December 2012December 2012 KOTZEBUE BIOMASS 5-7 5.3 SCENARIO 2 Tetra Tech also developed a conceptual MSW,corresponding to and tailored to c 10%system design. corresponding process flow diagram is Feedstock Management & Logistics Feedstock for this system will consist of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gas Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce particle size, blend the feedstock, and make it more Energy Generation & Distribution Feedstock material will be introduced to the combustion system via the primary combustion chamber. interrupted. complete The system will utilize a 2 and carefully in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the boiler. The working fluid (here, water) is heated the steam will be transferred to Kotzebue’s incom exchangers. Feed control and plant operations are managed automatically via control panel and programmable logic controller (PLC) systems. Combustion Byproduct Management Ash is produced by the combustion The amount of ash produced will likely range from dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. KOTZEBUE BIOMASS SCENARIO 2 – Tetra Tech also developed a conceptual corresponding to and tailored to conditions specific to the site, at a level corresponding to standard engineering practices of system design.The system process flow is described in sequence in the following section and a corresponding process flow diagram is Feedstock Management & Logistics Feedstock for this system will consist of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gas Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce particle size, blend the feedstock, and make it more Energy Generation & Distribution Feedstock material will be introduced to the combustion system via the primary combustion chamber. interrupted.Supplemental fuel is estimated complete oxidation is achieved in the primary chamber The system will utilize a 2 and carefully-controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the boiler. The working fluid (here, water) is heated the steam will be transferred to Kotzebue’s incom exchangers. Feed control and plant operations are managed automatically via control panel and programmable logic controller (PLC) systems. Combustion Byproduct Management Ash is produced by the combustion The amount of ash produced will likely range from dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. KOTZEBUE BIOMASS FEASIBILITY STUDY MSW GASIFIER Tetra Tech also developed a conceptual corresponding to Scenario 2.As with the RDF boiler conceptual design, this onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a corresponding process flow diagram is Feedstock Management & Logistics Feedstock for this system will consist of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gas Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce particle size, blend the feedstock, and make it more Energy Generation & Distribution Feedstock material will be introduced to the combustion system via the primary combustion chamber. Supplemental fuel is estimated oxidation is achieved in the primary chamber The system will utilize a 2-stage gasification system described abo controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the The working fluid (here, water) is heated the steam will be transferred to Kotzebue’s incom Feed control and plant operations are managed automatically via control panel and programmable logic controller (PLC) systems. Combustion Byproduct Management Ash is produced by the combustion The amount of ash produced will likely range from dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. FEASIBILITY STUDY ASIFIER Tetra Tech also developed a conceptual process As with the RDF boiler conceptual design, this onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a corresponding process flow diagram is supplied below as Figure Feedstock for this system will consist of essentially unsorted municipal solid waste. Visual inspection of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gas Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce particle size, blend the feedstock, and make it more Feedstock material will be introduced to the combustion system via the primary combustion chamber.An operator Supplemental fuel is estimated oxidation is achieved in the primary chamber stage gasification system described abo controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the The working fluid (here, water) is heated to produce the steam will be transferred to Kotzebue’s incom Feed control and plant operations are managed automatically via control panel and programmable logic Combustion Byproduct Management Ash is produced by the combustion process and is collected as noted in the energy generation section. The amount of ash produced will likely range from dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. FEASIBILITY STUDY process design of a 2 As with the RDF boiler conceptual design, this onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a supplied below as Figure essentially unsorted municipal solid waste. Visual inspection of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gas Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce particle size, blend the feedstock, and make it more amenable to use within the gasification system. Feedstock material will be introduced to the combustion system via An operator will be required Supplemental fuel is estimated at 2.5 gallons/hr of diesel/ oxidation is achieved in the primary chamber. stage gasification system described abo controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the to produce medium the steam will be transferred to Kotzebue’s incoming raw water flow via jacketing or hot plate heat Feed control and plant operations are managed automatically via control panel and programmable logic process and is collected as noted in the energy generation section. The amount of ash produced will likely range from 10-15 dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. design of a 2-stage gasification system fuel by unsorted As with the RDF boiler conceptual design, this onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a supplied below as Figure 5-3. essentially unsorted municipal solid waste. Visual inspection of the waste stream to remove potentially explosive items (canisters, etc) or hazardo large batteries is all that is required prior to being fed into the gasifier. Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce amenable to use within the gasification system. Feedstock material will be introduced to the combustion system via auger, which will continuously load required onsite 24/ at 2.5 gallons/hr of diesel/ stage gasification system described above. The first stage operates with limited controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the medium pressure ing raw water flow via jacketing or hot plate heat Feed control and plant operations are managed automatically via control panel and programmable logic process and is collected as noted in the energy generation section. 15 percent of the original feedstock, but is dependent on the feedstock, moisture content and the transformational process noted abov produced by the system is expected to be disposed of in the city landfill. stage gasification system fuel by unsorted As with the RDF boiler conceptual design, this plant design is engineered onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a essentially unsorted municipal solid waste. Visual inspection of the waste stream to remove potentially explosive items (canisters, etc) or hazardous materials such as Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce amenable to use within the gasification system. auger, which will continuously load onsite 24/7 to assure material flow is not at 2.5 gallons/hr of diesel/fuel oil required to ensure ve. The first stage operates with limited controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the pressure steam (50-150 ing raw water flow via jacketing or hot plate heat Feed control and plant operations are managed automatically via control panel and programmable logic process and is collected as noted in the energy generation section. percent of the original feedstock, but is dependent on the feedstock, moisture content and the transformational process noted abov December 2012 stage gasification system fuel by unsorted plant design is engineered onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a essentially unsorted municipal solid waste. Visual inspection of us materials such as Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce amenable to use within the gasification system. auger, which will continuously load 7 to assure material flow is not required to ensure ve. The first stage operates with limited controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the 150 psi).Energy from ing raw water flow via jacketing or hot plate heat Feed control and plant operations are managed automatically via control panel and programmable logic process and is collected as noted in the energy generation section. percent of the original feedstock, but is dependent on the feedstock, moisture content and the transformational process noted above. December 2012 stage gasification system fuel by unsorted plant design is engineered onditions specific to the site, at a level corresponding to standard engineering practices of The system process flow is described in sequence in the following section and a essentially unsorted municipal solid waste. Visual inspection of us materials such as Once at the project site, the bales will be passed through an MSW shredder. This will serve to reduce amenable to use within the gasification system. auger, which will continuously load 7 to assure material flow is not required to ensure ve. The first stage operates with limited controlled oxygen (air) input and gasifies the material. Gasses are fully combusted with air in the second stage, producing steam in a boiler. The system generates ash and exhaust gasses. The solid material remaining is the ash waste product which is mechanically removed from the bottom of the Energy from ing raw water flow via jacketing or hot plate heat Feed control and plant operations are managed automatically via control panel and programmable logic process and is collected as noted in the energy generation section. percent of the original feedstock, but is e.Ash KOTZEBUE BIOMASS 5-8 Air Pollution Control and is denoted as “gas contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment wil would likely include one or more standard technologies, including cyclone dust collectors, baghouses, and electrostatic precipitators. chemical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow stream and a 'make discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. KOTZEBUE BIOMASS Air Pollution Control and is denoted as “gas contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment wil would likely include one or more standard technologies, including cyclone dust collectors, baghouses, and electrostatic precipitators. mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow stream and a 'make discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. KOTZEBUE BIOMASS FEASIBILITY STUDY Air Pollution Control (APC)is the final treatment of the gas stream prior to release into the atmosphere and is denoted as “gas cleanup” in Figure contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment wil would likely include one or more standard technologies, including cyclone dust collectors, baghouses, and electrostatic precipitators. mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow stream and a 'make-up' stream that will need to be cons discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. FEASIBILITY STUDY is the final treatment of the gas stream prior to release into the atmosphere cleanup” in Figure 5-3. contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment wil would likely include one or more standard technologies, including cyclone dust collectors, baghouses, and electrostatic precipitators.APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow up' stream that will need to be cons discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. FEASIBILITY STUDY is the final treatment of the gas stream prior to release into the atmosphere .This gas cleanup step will ensure that NOx, SOx, and other contaminates are removed from the combustion gasses. Air emissions will be required to meet regulations determined by the Federal EPA and State environmental regulatory agency. APC equipment will be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow up' stream that will need to be cons discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. is the final treatment of the gas stream prior to release into the atmosphere This gas cleanup step will ensure that NOx, SOx, and other Air emissions will be required to meet regulations determined by the Federal EPA and State l be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow up' stream that will need to be considered. The blow discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. is the final treatment of the gas stream prior to release into the atmosphere This gas cleanup step will ensure that NOx, SOx, and other Air emissions will be required to meet regulations determined by the Federal EPA and State l be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow idered. The blow-down stream is dried, discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. December 2012 is the final treatment of the gas stream prior to release into the atmosphere This gas cleanup step will ensure that NOx, SOx, and other Air emissions will be required to meet regulations determined by the Federal EPA and State l be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap the particulate emissions through the use of bag house filters. The wet systems have a 'blow-down' down stream is dried, discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. December 2012 is the final treatment of the gas stream prior to release into the atmosphere This gas cleanup step will ensure that NOx, SOx, and other Air emissions will be required to meet regulations determined by the Federal EPA and State l be selected further into the design process, but would likely include one or more standard technologies, including cyclone dust collectors, baghouses, APCs can be categorized into two types: wet or dry. Both types use mical addition, adsorbents and absorbents, and filters to bind the chemical pollutants, and then trap down' down stream is dried, discharged to outfall, or reused in the manufacturing process. A dry system will have filters that collect particles. In this the particles can be dislodged from the filters and disposed of, and the filters reused. KOTZEBUE BIOMASS 5 KOTZEBUE BIOMASS 5-9 Figure 5-4:Scenario 2 KOTZEBUE BIOMASS FEASIBILITY STUDY Scenario 2 –MSW Gasifier FEASIBILITY STUDY MSW Gasifier Block Flow Diagram FEASIBILITY STUDY Block Flow Diagram December 2012December 2012 KOTZEBUE BIOMASS 5-10 5.4 BIOMASS POWER PLANT Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be heated. Scenario 2 automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as needed basis. This is contingent on the advantage of feedstock hoppers and the project PLC to For scenario 2, oversee day to day operations, environmental monitoring, management of truck traffic in and out, and scheduling of repairs and down time. boiler operator will also be re Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent operation. It is noted that the operation of facility such as this comes under oversight by many authorities of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory goal of the City of Kotzebue The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, project development cos operational expenditures for both scenarios are described in Section 7. KOTZEBUE BIOMASS BIOMASS POWER PLANT Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be heated. Scenario 2 designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as needed basis. This is contingent on the advantage of feedstock hoppers and the project PLC to For scenario 2,four employees are required for 24/7/365 operations. oversee day to day operations, environmental monitoring, management of truck traffic in and out, and scheduling of repairs and down time. erator will also be re Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent operation. It is noted that the operation of facility such as this comes under oversight by many authorities of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory the City of Kotzebue The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, project development cos operational facility parameters for both plant configurations are expenditures for both scenarios are described in Section 7. KOTZEBUE BIOMASS FEASIBILITY STUDY BIOMASS POWER PLANT OPERATIONAL CONSIDER Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as needed basis. This is contingent on the advantage of feedstock hoppers and the project PLC to four employees are required for 24/7/365 operations. oversee day to day operations, environmental monitoring, management of truck traffic in and out, and scheduling of repairs and down time. erator will also be required. Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent It is noted that the operation of the prospective biomass power plant will require regulatory oversight. A facility such as this comes under oversight by many authorities of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory the City of Kotzebue. The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, project development costs, financing costs, start facility parameters for both plant configurations are expenditures for both scenarios are described in Section 7. FEASIBILITY STUDY OPERATIONAL CONSIDER Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as needed basis. This is contingent on the plant being built on the Public Works campus. advantage of feedstock hoppers and the project PLC to four employees are required for 24/7/365 operations. oversee day to day operations, environmental monitoring, management of truck traffic in and out, and scheduling of repairs and down time.Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A facility such as this comes under oversight by many authorities of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, ts, financing costs, start facility parameters for both plant configurations are expenditures for both scenarios are described in Section 7. FEASIBILITY STUDY OPERATIONAL CONSIDER Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as plant being built on the Public Works campus. advantage of feedstock hoppers and the project PLC to assist with four employees are required for 24/7/365 operations. oversee day to day operations, environmental monitoring, management of truck traffic in and out, and Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A facility such as this comes under oversight by many authorities of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, ts, financing costs, start-up costs, working capital and inventory costs. Major facility parameters for both plant configurations are expenditures for both scenarios are described in Section 7. OPERATIONAL CONSIDERATIONS Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as plant being built on the Public Works campus. assist with overnight and weekend operations. four employees are required for 24/7/365 operations.One oversee day to day operations, environmental monitoring, management of truck traffic in and out, and Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A facility such as this comes under oversight by many authorities including: US EPA, OSHA, of Environmental Conservation (AK DEC), Alaska Department of Labor and Wor others. Operating the proposed facility to the highest level of regulatory compliance should be a primary The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, up costs, working capital and inventory costs. Major facility parameters for both plant configurations are shown in Table Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as plant being built on the Public Works campus. overnight and weekend operations. One shift team leader oversee day to day operations, environmental monitoring, management of truck traffic in and out, and Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A including: US EPA, OSHA, of Environmental Conservation (AK DEC), Alaska Department of Labor and Workforce Development, compliance should be a primary The major variables for facility operation, as well as modeling the project’s financial perfor product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, up costs, working capital and inventory costs. Major shown in Table 5-2.Capital and operational December 2012 Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as plant being built on the Public Works campus.The system overnight and weekend operations. shift team leader is expected to oversee day to day operations, environmental monitoring, management of truck traffic in and out, and Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A including: US EPA, OSHA,Alaska Department kforce Development, compliance should be a primary The major variables for facility operation, as well as modeling the project’s financial performance, include product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, up costs, working capital and inventory costs. Major Capital and operational December 2012 Scenario 1 is expected to be in operation during normal business hours, or whenever buildings need to be designed to operate 24 hours per day, 7 days per week (24/7). The system will be automated to maintain the feed and monitor the operations, but will require regular shifts of operators. Scenario 1 requires only a boiler operator to oversee operations. It is expected that current refuse system employees will be available to assist in sorting and transport of feedstock to the process building on an as- The system takes is expected to oversee day to day operations, environmental monitoring, management of truck traffic in and out, and Two (2) shift employees cover the majority of operational shifts, and a Scheduled maintenance will need to be conducted on the system at periodic intervals. The biomass power plant is assumed to have 95% uptime, corresponding to approximately 350 days per year of consistent the prospective biomass power plant will require regulatory oversight. A Alaska Department kforce Development,and compliance should be a primary mance, include product yields, product and raw material pricing, labor costs, energy consumption and pricing, capital costs including engineering, procurement and construction of the plants and all supporting facilities and systems, up costs, working capital and inventory costs. Major Capital and operational KOTZEBUE BIOMASS 5-11 Table Landfill Diversion (ton/yr) Fuel Oil Replaced (gal/yr) Operators Needed Throughput rate of Feedstock (TPD) Storage (cu.yds) Ash disposal (ton/year) Table Plant Feedstock Electrical Inputs Plant Outputs System Parameters System Outputs (Average) KOTZEBUE BIOMASS 5-2: Biomass Facility Logistics Landfill Diversion (ton/yr) Fuel Oil Replaced (gal/yr) Operators Needed Throughput rate of Feedstock (TPD) Storage (cu.yds) Ash disposal (ton/year) Table 5-3: Biomass Energy Plant Inputs Feedstock Electrical Inputs Plant Outputs System Parameters System Outputs (Average) KOTZEBUE BIOMASS FEASIBILITY STUDY : Biomass Energy Plant Facility Logistics Landfill Diversion Fuel Oil Replaced Operators Needed Throughput rate of Ash disposal (ton/year) : Biomass Energy Plant Type Feedstock Demand (TPD) Auxiliary Fuel (gal fuel/day) Feedstock Shortfall (MM BTU/yr) Supplementary Feedstock Type Supplementary Feedstock (TPY) Parasitic Load (kWh/ raw ton) Output Type System Capacity (MM BTU) Combustion Efficiency* System Efficiency** Hot Water (MM BTU/hr) Hot Water (MM BTU/yr) Ash (lbs/day) Other Inert Material (lbs/day) FEASIBILITY STUDY Plant Operating Parameters Scenario 1 314 31,300 0.94 195 29 Plant Inputs and Outputs Feedstock Demand (TPD) Auxiliary Fuel (gal heating Feedstock Shortfall (MM BTU/yr) Supplementary Feedstock Type Supplementary Feedstock (TPY) Parasitic Load (kWh/ raw ton) Output Type System Capacity (MM BTU) Combustion Efficiency* System Efficiency** Hot Water (MM BTU/hr) Hot Water (MM BTU/yr) (lbs/day) Other Inert Material (lbs/day) FEASIBILITY STUDY Operating Parameters Scenario 2 314 1,300 100,200 1 0.94 195 29 Inputs and Outputs heating Feedstock Shortfall (MM BTU/yr) Supplementary Feedstock Type Wood Pellets Supplementary Feedstock (TPY) Parasitic Load (kWh/ raw ton) Thermal System Capacity (MM BTU) Other Inert Material (lbs/day) Scenario 2 1,245 100,200 4 4.45 21 162 Scenario 1 RDF 0.94 294 Wood Pellets 40.9 2.50 Scenario 1 Thermal -Boiler 1.5 77% 0.39 3,135 160 Scenario 2 All MSW 0.94 - 294 - Wood Pellets - 40.9 2.50 Scenario 2 Thermal - 1.5 77% 0.39 3,135 160 - December 2012 Scenario 2 All MSW 4.45 60 - - - 2.71 Scenario 2 -Boiler 2.0 69% 1.26 12,205 770 1,190 December 2012 KOTZEBUE BIOMASS 6-1 6 PERMITTINGAND ENVIR Based on the proposed sites under consideration, developing a biomass Kotzebue, Alaska, can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of regulatory permits and approvals. 6.1 PERMIT Based on environmental permits. construction and land use permits. solid and hazardous waste, water quality, water use, wastewater disposa other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the permitting process. Clean Air Act program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE). maximum annual operational (production, throughput, etc the capacity and configuration of the equipment and operations. The primary reason for requesting federally major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air pollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. analyzed biomass threshold and therefore will be subject to Non State of Alaska DEC Air Permitting regulate air emissions within the state. producing year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, monitoring and reporting. permit, but are expected to comply with federal emissions regulations. KOTZEBUE BIOMASS PERMITTINGAND ENVIR Based on the proposed sites under consideration, developing a biomass Kotzebue, Alaska,would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of regulatory permits and approvals. PERMITTING REQUIREMENTS FO Based on past project environmental permits. construction and land use permits. solid and hazardous waste, water quality, water use, wastewater disposa other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the permitting process. Clean Air Act -Non program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE). maximum annual operational (production, throughput, etc the capacity and configuration of the equipment and operations. The primary reason for requesting federally major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. analyzed biomass energy threshold and therefore will be subject to Non State of Alaska DEC Air Permitting regulate air emissions within the state. producing over 40 tons per year of nitrogen oxides (NO year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, monitoring and reporting. permit, but are expected to comply with federal emissions regulations. KOTZEBUE BIOMASS FEASIBILITY STUDY PERMITTINGAND ENVIR Based on the proposed sites under consideration, developing a biomass would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of regulatory permits and approvals. TING REQUIREMENTS FO past project experience, Tetra Tech assumes that the project will likely trigger several environmental permits.These permits may include various federal, state and local environmental, construction and land use permits.Examples of permitting concerns may include issues related to air quality, solid and hazardous waste, water quality, water use, wastewater disposa other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the Non-Title V Operating Permit program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE). maximum annual operational (production, throughput, etc the capacity and configuration of the equipment and operations. The primary reason for requesting federally major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. energy plant scenarios threshold and therefore will be subject to Non State of Alaska DEC Air Permitting regulate air emissions within the state. over 40 tons per year of nitrogen oxides (NO year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, monitoring and reporting.Facilities that produce less permit, but are expected to comply with federal emissions regulations. FEASIBILITY STUDY PERMITTINGAND ENVIRONMENTALANALYSIS Based on the proposed sites under consideration, developing a biomass would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of TING REQUIREMENTS FOR A BIOMASS ENERGY P experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, solid and hazardous waste, water quality, water use, wastewater disposa other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the Title V Operating Permit program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE). maximum annual operational (production, throughput, etc the capacity and configuration of the equipment and operations. The primary reason for requesting federally-enforceable major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. scenarios, and associated emission profiles, are expected to be below this threshold and therefore will be subject to Non State of Alaska DEC Air Permitting.AK DEC’s Division of Air Quality has the authority to permit and regulate air emissions within the state.Alaska Air Quality Regulations 18 over 40 tons per year of nitrogen oxides (NO year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, Facilities that produce less permit, but are expected to comply with federal emissions regulations. FEASIBILITY STUDY ONMENTALANALYSIS Based on the proposed sites under consideration, developing a biomass would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of R A BIOMASS ENERGY P experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, solid and hazardous waste, water quality, water use, wastewater disposa other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the Title V Operating Permit – Part 70.40 CFR 49.139 establishes an operating permit program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE). maximum annual operational (production, throughput, etc the capacity and configuration of the equipment and operations. enforceable limitations is to reduce a facility’s PTE to below major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. , and associated emission profiles, are expected to be below this threshold and therefore will be subject to Non-Title V Operating Permit procedures. AK DEC’s Division of Air Quality has the authority to permit and Alaska Air Quality Regulations 18 over 40 tons per year of nitrogen oxides (NOx) and/or sulfur oxides (SO year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, Facilities that produce less than these limits are not required to obtain a state permit, but are expected to comply with federal emissions regulations. ONMENTALANALYSIS Based on the proposed sites under consideration, developing a biomass would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant. industrial facility, construction and operation must be preceded by the acquisition of a broad range of R A BIOMASS ENERGY PLANT experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, solid and hazardous waste, water quality, water use, wastewater disposal, tank registration as well as various other local permits, such as local building, transportation and other special use permits. few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the 40 CFR 49.139 establishes an operating permit program for owners and operators of air pollution sources who want to request federally limits on the source’s actual emissions or potential to emit (PTE).A f maximum annual operational (production, throughput, etc.) rate of the facility taking into consideration the capacity and configuration of the equipment and operations. limitations is to reduce a facility’s PTE to below major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. , and associated emission profiles, are expected to be below this e V Operating Permit procedures. AK DEC’s Division of Air Quality has the authority to permit and Alaska Air Quality Regulations 18 ) and/or sulfur oxides (SO year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, than these limits are not required to obtain a state permit, but are expected to comply with federal emissions regulations. Based on the proposed sites under consideration, developing a biomass energy plant would require coordination with tribal, federal, state, and county personnel. can be one of the biggest obstacles to the development of any industrial plant.As in the case of any industrial facility, construction and operation must be preceded by the acquisition of a broad range of LANT experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, l, tank registration as well as various other local permits, such as local building, transportation and other special use permits.Below are outlined a few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska. not exhaustive and may change based on the technology and site selected for the final project. recommends contracting for the services of a permitting firm with experience in Alaska to navigate the 40 CFR 49.139 establishes an operating permit program for owners and operators of air pollution sources who want to request federally A facility’s PTE is based on the ) rate of the facility taking into consideration limitations is to reduce a facility’s PTE to below major source thresholds, therefore avoiding certain federal Clean Air Act requirements. source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. , and associated emission profiles, are expected to be below this e V Operating Permit procedures. AK DEC’s Division of Air Quality has the authority to permit and Alaska Air Quality Regulations 18-AAC-50 stipulates that facilities ) and/or sulfur oxides (SOx), and/or 15 tons per year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, than these limits are not required to obtain a state permit, but are expected to comply with federal emissions regulations.Laboratory testing will be December 2012 plant in the vicinity of would require coordination with tribal, federal, state, and county personnel.Permitting As in the case of any industrial facility, construction and operation must be preceded by the acquisition of a broad range of experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, l, tank registration as well as various Below are outlined a few of the primary permits that may be required for a biomass energy plant in Kotzebue, Alaska.This l not exhaustive and may change based on the technology and site selected for the final project.Tetra Tech recommends contracting for the services of a permitting firm with experience in Alaska to navigate the 40 CFR 49.139 establishes an operating permit program for owners and operators of air pollution sources who want to request federally-enforceable acility’s PTE is based on the ) rate of the facility taking into consideration limitations is to reduce a facility’s PTE to below major source thresholds, therefore avoiding certain federal Clean Air Act requirements.The major source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP. , and associated emission profiles, are expected to be below this AK DEC’s Division of Air Quality has the authority to permit and 50 stipulates that facilities ), and/or 15 tons per year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, than these limits are not required to obtain a state Laboratory testing will be December 2012 in the vicinity of mitting As in the case of any industrial facility, construction and operation must be preceded by the acquisition of a broad range of experience, Tetra Tech assumes that the project will likely trigger several These permits may include various federal, state and local environmental, Examples of permitting concerns may include issues related to air quality, l, tank registration as well as various Below are outlined a This list is Tetra Tech recommends contracting for the services of a permitting firm with experience in Alaska to navigate the 40 CFR 49.139 establishes an operating permit enforceable acility’s PTE is based on the ) rate of the facility taking into consideration limitations is to reduce a facility’s PTE to below The major source threshold for any “air pollutant” is 100 tons/year and major source thresholds for “hazardous air ollutants” (HAP) are 10 tons/year for a single HAP or 25 tons/year for any combination of HAP.The , and associated emission profiles, are expected to be below this AK DEC’s Division of Air Quality has the authority to permit and 50 stipulates that facilities ), and/or 15 tons per year of particulate matter, must apply for an air emissions permit, complete with dispersion modeling, than these limits are not required to obtain a state Laboratory testing will be KOTZEBUE BIOMASS 6-2 required to determine whether the proposed biomass energy plant scenarios will be exempt from state permitting obligations. Emergency Planning Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could produce hazardous waste, however, and the following sources. o o A Toxicity Characteristic Leaching Procedure (TCLP) test to characterize the waste as hazardous or non disposed of at approved municipal solid waste landfills. permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal that appears material. State of Alaska DEC Solid Waste Regulations acceptance of wastes to local land an application for any facility treating municipal solid waste. treating less than should be below that permit threshold and exempt, but contact with state representatives is encouraged. KOTZEBUE BIOMASS required to determine whether the proposed biomass energy plant scenarios will be exempt from state itting obligations. Alaska Department of Environmental Conservation Division of Air Quality 410 Willoughby Ave., Suite 303 Juneau, AK 99811 (907) 465 Program Manager: John Kuterbach Emergency Planning Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could produce hazardous waste, however, and the following sources. Residual fly ash Residual bottom ash A Toxicity Characteristic Leaching Procedure (TCLP) test to characterize the waste as hazardous or non disposed of at approved municipal solid waste landfills. permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal that appears unlikely material. State of Alaska DEC Solid Waste Regulations acceptance of wastes to local land an application for any facility treating municipal solid waste. treating less than five ( should be below that permit threshold and exempt, but contact with state representatives is encouraged.Contact information: Alaska Department of Environmental Conservation Division of Environmental Health Solid Waste Program 610 University Avenue Fairbanks, AK 99709 (907) 451 Project Contact: Ken Spires KOTZEBUE BIOMASS FEASIBILITY STUDY required to determine whether the proposed biomass energy plant scenarios will be exempt from state itting obligations.Contact information: Alaska Department of Environmental Conservation Division of Air Quality 410 Willoughby Ave., Suite 303 Juneau, AK 99811-1800 (907) 465-5100 Program Manager: John Kuterbach Emergency Planning and Community Right Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could produce hazardous waste, however, and the following Residual fly ash esidual bottom ash A Toxicity Characteristic Leaching Procedure (TCLP) test to characterize the waste as hazardous or non disposed of at approved municipal solid waste landfills. permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal unlikely.A similar system in Barrow, AK, has passed every TCLP test taken on its ash State of Alaska DEC Solid Waste Regulations acceptance of wastes to local land an application for any facility treating municipal solid waste. five (5)tons per day should be below that permit threshold and exempt, but contact with state representatives is Contact information: Alaska Department of Environmental Conservation Division of Environmental Health Solid Waste Program 610 University Avenue Fairbanks, AK 99709 (907) 451-2134 Project Contact: Ken Spires FEASIBILITY STUDY required to determine whether the proposed biomass energy plant scenarios will be exempt from state Contact information: Alaska Department of Environmental Conservation Division of Air Quality 410 Willoughby Ave., Suite 303 1800 Program Manager: John Kuterbach and Community Right-to Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could produce hazardous waste, however, and the following A Toxicity Characteristic Leaching Procedure (TCLP) test to characterize the waste as hazardous or non disposed of at approved municipal solid waste landfills. permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal A similar system in Barrow, AK, has passed every TCLP test taken on its ash State of Alaska DEC Solid Waste Regulations. acceptance of wastes to local landfills, including ash res an application for any facility treating municipal solid waste. tons per day, or ten ( should be below that permit threshold and exempt, but contact with state representatives is Contact information: Alaska Department of Environmental Conservation Division of Environmental Health Solid Waste Program 610 University Avenue Fairbanks, AK 99709 Project Contact: Ken Spires FEASIBILITY STUDY required to determine whether the proposed biomass energy plant scenarios will be exempt from state Alaska Department of Environmental Conservation Program Manager: John Kuterbach to-Know Act (EPCRA) Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could produce hazardous waste, however, and the following waste streams should be considered as potential A Toxicity Characteristic Leaching Procedure (TCLP) test may need to be to characterize the waste as hazardous or non-hazardous. disposed of at approved municipal solid waste landfills.Hazardous wastes need to be disposed of in permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal A similar system in Barrow, AK, has passed every TCLP test taken on its ash .AK DEC’s Solid Waste Program will be fills, including ash residuals. an application for any facility treating municipal solid waste. ten (10)tons per batch should be below that permit threshold and exempt, but contact with state representatives is Alaska Department of Environmental Conservation required to determine whether the proposed biomass energy plant scenarios will be exempt from state Alaska Department of Environmental Conservation Know Act (EPCRA)Section 313: Toxics Release Inventory. Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could waste streams should be considered as potential may need to be hazardous.Non-hazardous waste should be properly Hazardous wastes need to be disposed of in permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal A similar system in Barrow, AK, has passed every TCLP test taken on its ash AK DEC’s Solid Waste Program will be iduals.As well, the Solid Waste program requires an application for any facility treating municipal solid waste.Exemptions are allowed for facilities tons per batch.Both proposed project scenarios should be below that permit threshold and exempt, but contact with state representatives is Alaska Department of Environmental Conservation required to determine whether the proposed biomass energy plant scenarios will be exempt from state Section 313: Toxics Release Inventory. Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could waste streams should be considered as potential may need to be conducted on the ash residuals hazardous waste should be properly Hazardous wastes need to be disposed of in permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal A similar system in Barrow, AK, has passed every TCLP test taken on its ash AK DEC’s Solid Waste Program will be As well, the Solid Waste program requires Exemptions are allowed for facilities Both proposed project scenarios should be below that permit threshold and exempt, but contact with state representatives is December 2012 required to determine whether the proposed biomass energy plant scenarios will be exempt from state Section 313: Toxics Release Inventory. Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used abo the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could waste streams should be considered as potential conducted on the ash residuals hazardous waste should be properly Hazardous wastes need to be disposed of in permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal A similar system in Barrow, AK, has passed every TCLP test taken on its ash AK DEC’s Solid Waste Program will be involved with the As well, the Solid Waste program requires Exemptions are allowed for facilities Both proposed project scenarios should be below that permit threshold and exempt, but contact with state representatives is December 2012 required to determine whether the proposed biomass energy plant scenarios will be exempt from state Section 313: Toxics Release Inventory. Facilities must complete and submit a Toxic Chemical Release Inventory Form annually for each of the more than 600 Toxic Release Inventory (TRI) chemicals that are manufactured or otherwise used above the applicable threshold quantities. It is not expected that hazardous waste will be produced directly by the process based on the expected composition of material input. Maintenance operations could waste streams should be considered as potential conducted on the ash residuals hazardous waste should be properly Hazardous wastes need to be disposed of in permitted hazardous waste facilities, and may need to be transported out of Kotzebue for disposal, but A similar system in Barrow, AK, has passed every TCLP test taken on its ash involved with the As well, the Solid Waste program requires Exemptions are allowed for facilities Both proposed project scenarios should be below that permit threshold and exempt, but contact with state representatives is KOTZEBUE BIOMASS 6-3 EPA Construction General Permit. stormwater discharges from construction sites. site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an NPDES permit for their stormwater discharge Boiler Permitting and Boiler Operators trained operators for safe operation. Alaska’s Department of Labor and Workforce Development oversees boiler operator and permitting in the state. pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory oversight. Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste not exempt. Alaska Statutes, Sec. 18.60.395 MM Btu/hr, or well within the range of the proposed units. restrictive 6.2 EMISSIONS CONC Combustion (and vis concerns raised over the makeup of the material being combusted and the emissions produced by the system. operations begin, of the system’s emissions profiles emissions regulations and preserves loc It is important to note that many waste system will meet applicable air emissions control regulations. configuration of air pollution contr between the boiler supplier and APC supplier. achieve promised emissions profiles. contract for construction of a biomass energy plant. 6.2.1.1 Dioxins and Furans municipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the KOTZEBUE BIOMASS EPA Construction General Permit. stormwater discharges from construction sites. site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an NPDES permit for their stormwater discharge Boiler Permitting and Boiler Operators trained operators for safe operation. Alaska’s Department of Labor and Workforce Development oversees boiler operator and permitting in the state. pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory oversight. Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste not exempt. Alaska Statutes, Sec. 18.60.395 MM Btu/hr, or well within the range of the proposed units. restrictive class of boiler operator EMISSIONS CONC Combustion (and vis-à- concerns raised over the makeup of the material being combusted and the emissions produced by the Careful air emission and air dispersion operations begin, of the system’s emissions profiles emissions regulations and preserves loc It is important to note that many waste will meet applicable air emissions control regulations. configuration of air pollution contr between the boiler supplier and APC supplier. achieve promised emissions profiles. contract for construction of a biomass energy plant. 6.2.1.1 Hazardous Air Pollutants Dioxins and Furans are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the KOTZEBUE BIOMASS FEASIBILITY STUDY EPA Construction General Permit. stormwater discharges from construction sites. site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an NPDES permit for their stormwater discharge Boiler Permitting and Boiler Operators trained operators for safe operation. Alaska’s Department of Labor and Workforce Development oversees boiler operator and permitting in the state. pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste Alaska Statutes, Sec. 18.60.395 (b) (2) requires a third MM Btu/hr, or well within the range of the proposed units. boiler operator EMISSIONS CONCERNS FROM -vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the air emission and air dispersion operations begin, of the system’s emissions profiles emissions regulations and preserves loc It is important to note that many waste will meet applicable air emissions control regulations. configuration of air pollution controls equipment (APC) is often specified and installed as a partnership between the boiler supplier and APC supplier. achieve promised emissions profiles. contract for construction of a biomass energy plant. Hazardous Air Pollutants are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the FEASIBILITY STUDY EPA Construction General Permit.Construction activities in Alaska are covered by a general permit for stormwater discharges from construction sites. site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an NPDES permit for their stormwater discharges. Boiler Permitting and Boiler Operators.Dependent on size, boilers of various type trained operators for safe operation. Alaska’s Department of Labor and Workforce Development oversees boiler operator and permitting in the state. pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste (b) (2) requires a third MM Btu/hr, or well within the range of the proposed units. boiler operator license to obtain. ERNS FROM COMBUSTION AND GASIF vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the air emission and air dispersion operations begin, of the system’s emissions profiles emissions regulations and preserves local health and It is important to note that many waste-to-energy system vendors will meet applicable air emissions control regulations. ols equipment (APC) is often specified and installed as a partnership between the boiler supplier and APC supplier. achieve promised emissions profiles.Tetra Tech recommend contract for construction of a biomass energy plant. Hazardous Air Pollutants (HAPs) from are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the FEASIBILITY STUDY Construction activities in Alaska are covered by a general permit for stormwater discharges from construction sites.The NPDES stormwater program requires site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an s. Dependent on size, boilers of various type trained operators for safe operation. Alaska’s Department of Labor and Workforce Development oversees boiler operator and permitting in the state.The boilers proposed for this project produce low pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste (b) (2) requires a third-class boiler MM Btu/hr, or well within the range of the proposed units. license to obtain. COMBUSTION AND GASIF vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the air emission and air dispersion modeling prior to operations begin, of the system’s emissions profiles are critical to ensuring the system meets applicable al health and safety standards. energy system vendors will meet applicable air emissions control regulations. ols equipment (APC) is often specified and installed as a partnership This ensures that their technologies are compatible and Tetra Tech recommends contract for construction of a biomass energy plant. rom MSW Gasification are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the Construction activities in Alaska are covered by a general permit for The NPDES stormwater program requires site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an Dependent on size, boilers of various type trained operators for safe operation. Alaska’s Department of Labor and Workforce Development The boilers proposed for this project produce low pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating syste class boiler operator’s MM Btu/hr, or well within the range of the proposed units.A third-class COMBUSTION AND GASIFICATION vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the modeling prior to construction, critical to ensuring the system meets applicable safety standards. energy system vendors certify will meet applicable air emissions control regulations.As mentioned previously, specific ols equipment (APC) is often specified and installed as a partnership This ensures that their technologies are compatible and s that this stipulation be included in any EPC MSW Gasification are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the Construction activities in Alaska are covered by a general permit for The NPDES stormwater program requires site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an Dependent on size, boilers of various types require certified and trained operators for safe operation. Alaska’s Department of Labor and Workforce Development The boilers proposed for this project produce low pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, which is lower than the average heat input of both proposed heating systems.The systems are therefore operator’s license for systems up to 3.5 class operator’s ICATION OF WASTES vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the construction,and monitoring once critical to ensuring the system meets applicable certify, as a contact term, As mentioned previously, specific ols equipment (APC) is often specified and installed as a partnership This ensures that their technologies are compatible and that this stipulation be included in any EPC are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification. decomposition of these components occurs in the final combustion phase of the gasification December 2012 Construction activities in Alaska are covered by a general permit for The NPDES stormwater program requires construction site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an require certified and trained operators for safe operation. Alaska’s Department of Labor and Workforce Development The boilers proposed for this project produce low pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operat certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, The systems are therefore license for systems up to 3.5 license is the OF WASTES vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the and monitoring once critical to ensuring the system meets applicable , as a contact term,that As mentioned previously, specific ols equipment (APC) is often specified and installed as a partnership This ensures that their technologies are compatible and that this stipulation be included in any EPC are produced from the combustion of plastics and other chemical compounds found in unicipal MSW, and pose the largest hazardous air pollutant (HAP) risk of MSW gasification.Thermal gasification operation. December 2012 Construction activities in Alaska are covered by a general permit for construction site operators engaged in clearing, grading, and excavating activities that disturb 1 acre or more, including smaller sites in a larger common plan of development or sale, to obtain coverage under an require certified and trained operators for safe operation. Alaska’s Department of Labor and Workforce Development The boilers proposed for this project produce low pressure steam or hot water, and thus fall to the low end of the spectrum in terms of regulatory Alaska Statutes, Sec. 18.60.210 (a) (9) states that to be exempt from boiler inspections, operator certification, and licensing requirements, the system must have a heat input of less than 200,000 Btu/hr, The systems are therefore license for systems up to 3.5 license is the least vis gasification) of waste products has always been a contentious issue, with many concerns raised over the makeup of the material being combusted and the emissions produced by the and monitoring once critical to ensuring the system meets applicable that their As mentioned previously, specific ols equipment (APC) is often specified and installed as a partnership This ensures that their technologies are compatible and that this stipulation be included in any EPC are produced from the combustion of plastics and other chemical compounds found in Thermal operation. KOTZEBUE BIOMASS 6-4 Here, temperatures reach in excess of 1000 deg C. Th dioxins and furans, (700 deg C) Eco Waste Solutions Verification program, which is recognized and reciprocal with US EPA. Table Particulate Pb + Mn + Cr + Cu As + Ni Cd + Hg Dioxin/Furan* SO2** NOx CO *I-TEQ refers to international toxicity equivalent factor (2,3,7,8 ** Emissions exclude diesel R Indicates the reference measurement conditions for emissions which are : temperature = 25 and O Source: Tetra Tech is confident, based biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology configuration (including APC) is selected. samples as one o 9 EPA Doc 600280197 “Dioxins”, 1980 KOTZEBUE BIOMASS Here, temperatures reach in excess of 1000 deg C. Th dioxins and furans, (700 deg C) Eco Waste Solutions. Verification program, which is recognized and reciprocal with US EPA. Table 6-1:Sample Performance Claim for Batch Gasification of MSW Application. Parameter Particulate Pb + Mn + Cr + Cu As + Ni Cd + Hg Dioxin/Furan* ** TEQ refers to international toxicity equivalent factor (2,3,7,8 ** Emissions exclude diesel R Indicates the reference measurement conditions for emissions which are : temperature = 25 and O2 content = 11% dry Source:Eco Waste Solutions Inc. Tetra Tech is confident, based biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology configuration (including APC) is selected. samples as one of the most immediate Doc 600280197 “Dioxins”, 1980 KOTZEBUE BIOMASS FEASIBILITY STUDY Here, temperatures reach in excess of 1000 deg C. Th dioxins and furans, (700 deg C)9. Table 6 Tests were conducted to conform to the Canadian Environmental Technology Verification program, which is recognized and reciprocal with US EPA. Sample Performance Claim for Batch Gasification of MSW Application. Parameter TEQ refers to international toxicity equivalent factor (2,3,7,8 ** Emissions exclude diesel fuel auxiliary burner SO R Indicates the reference measurement conditions for emissions which are : temperature = 25 content = 11% dry Eco Waste Solutions Inc. Tetra Tech is confident, based on the analysis conducted for this and other projects, that the proposed biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology configuration (including APC) is selected. f the most immediate Doc 600280197 “Dioxins”, 1980 FEASIBILITY STUDY Here, temperatures reach in excess of 1000 deg C. Th . Table 6-1 is a sample performance claim for Tests were conducted to conform to the Canadian Environmental Technology Verification program, which is recognized and reciprocal with US EPA. Sample Performance Claim for Batch Gasification of MSW Application. Stack Emission Maximum TEQ refers to international toxicity equivalent factor (2,3,7,8 fuel auxiliary burner SO2 R Indicates the reference measurement conditions for emissions which are : temperature = 25 on the analysis conducted for this and other projects, that the proposed biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology configuration (including APC) is selected.As such, Tetra Tech recommends analytical testing of feedstock f the most immediate proceeding Doc 600280197 “Dioxins”, 1980 FEASIBILITY STUDY Here, temperatures reach in excess of 1000 deg C. This is well above the thermal degradation point of a sample performance claim for Tests were conducted to conform to the Canadian Environmental Technology Verification program, which is recognized and reciprocal with US EPA. Sample Performance Claim for Batch Gasification of MSW Application. Stack Emission Maximum 12 1 0.02 0.1 0.09 39 136 1.3 TEQ refers to international toxicity equivalent factor (2,3,7,8-TCDD) 2 and NOx contributions R Indicates the reference measurement conditions for emissions which are : temperature = 25 on the analysis conducted for this and other projects, that the proposed biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology As such, Tetra Tech recommends analytical testing of feedstock proceeding steps in the development of this project. is is well above the thermal degradation point of a sample performance claim for Tests were conducted to conform to the Canadian Environmental Technology Verification program, which is recognized and reciprocal with US EPA. Sample Performance Claim for Batch Gasification of MSW Application. Stack Emission Maximum TCDD) contributions R Indicates the reference measurement conditions for emissions which are : temperature = 25 on the analysis conducted for this and other projects, that the proposed biomass energy systems will meet all applicable air permits and regulations permitting requirements (and therefore not require a state air emissions permit) confirmed until samples of the specific feedstock input have undergone analytical testing and the technology As such, Tetra Tech recommends analytical testing of feedstock the development of this project. is is well above the thermal degradation point of a sample performance claim for a gasification Tests were conducted to conform to the Canadian Environmental Technology Sample Performance Claim for Batch Gasification of MSW Application. Unit mg/Rm mg/Rm mg/Rm mg/Rm ng ITEQ/ mg/Rm mg/Rm mg/Rm R Indicates the reference measurement conditions for emissions which are : temperature = 25°C, pressure = 101.3kPa, on the analysis conducted for this and other projects, that the proposed biomass energy systems will meet all applicable air permits and regulations, and may be below state permitting requirements (and therefore not require a state air emissions permit).However, that cannot be confirmed until samples of the specific feedstock input have undergone analytical testing and the technology As such, Tetra Tech recommends analytical testing of feedstock the development of this project. December 2012 is is well above the thermal degradation point of a gasification system offered by Tests were conducted to conform to the Canadian Environmental Technology Unit mg/Rm3 mg/Rm3 mg/Rm3 mg/Rm3 ng ITEQ/Rm3 mg/Rm3 mg/Rm3 mg/Rm3 C, pressure = 101.3kPa, on the analysis conducted for this and other projects, that the proposed , and may be below state However, that cannot be confirmed until samples of the specific feedstock input have undergone analytical testing and the technology As such, Tetra Tech recommends analytical testing of feedstock the development of this project. December 2012 is is well above the thermal degradation point of offered by Tests were conducted to conform to the Canadian Environmental Technology C, pressure = 101.3kPa, on the analysis conducted for this and other projects, that the proposed , and may be below state However, that cannot be confirmed until samples of the specific feedstock input have undergone analytical testing and the technology As such, Tetra Tech recommends analytical testing of feedstock KOTZEBUE BIOMASS 7-1 7 PROJECT FINANCIALAN Tetra Tech prepared biomass energy conditions evaluated in the study. equipment providers, and supplemented that information with parameters incorporated for Product yields Product and raw material pricing Labor costs Energy consumption and pricing Capital costs including engineering, procurement and construction of the plants Financing costs Project development costs, These parameters are further evaluated in the section below corresponding to the base primary factors affecting the financial viability of the project scenarios 7.1 FACILITY CAPITAL COS Tetra Tech developed capital costs communication costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. recommends that capital cost Table 22 shows costs, startup, and contingency corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to international standard, the RDF Boiler plant all $2.9 MM. KOTZEBUE BIOMASS PROJECT FINANCIALAN Tetra Tech prepared two energy plant, using proprietary economic modeling software. conditions evaluated in the study. equipment providers, and supplemented that information with parameters incorporated for roduct yields oduct and raw material pricing abor costs nergy consumption and pricing apital costs including engineering, procurement and construction of the plants inancing costs roject development costs, These parameters are further evaluated in the section below corresponding to the base primary factors affecting the financial viability of the project scenarios FACILITY CAPITAL COS Tetra Tech developed capital costs communications with equipment vendors costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. mends that Kotzebue capital costs. shows the estimated costs, startup, and contingency corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to international standard, the RDF Boiler plant all .The MSW Ga KOTZEBUE BIOMASS FEASIBILITY STUDY PROJECT FINANCIALAN two financial modeling and economic performance projections of the prospective plant, using proprietary economic modeling software. conditions evaluated in the study.When possible, Tetra Tech solicited cost and operational parameters from equipment providers, and supplemented that information with parameters incorporated for a 1.5 MM Btu RDF Boiler and a 1.5 MM Btu MSW Gasifier oduct and raw material pricing nergy consumption and pricing apital costs including engineering, procurement and construction of the plants roject development costs,including These parameters are further evaluated in the section below corresponding to the base case project assumptions, and primary factors affecting the financial viability of the project scenarios FACILITY CAPITAL COSTS Tetra Tech developed capital costs with equipment vendors costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. Kotzebue solicit final construction bids from prospective vendors to confirm final project the estimated capital cost breakdown for process equipment, building costs, development costs, startup, and contingency for corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to international standard, the RDF Boiler plant all MSW Gasifier plant is projected to cost FEASIBILITY STUDY PROJECT FINANCIALAND ECONOMICANALYSIS financial modeling and economic performance projections of the prospective plant, using proprietary economic modeling software. When possible, Tetra Tech solicited cost and operational parameters from equipment providers, and supplemented that information with a 1.5 MM Btu RDF Boiler and a 1.5 MM Btu MSW Gasifier oduct and raw material pricing apital costs including engineering, procurement and construction of the plants including start-up costs, working capital and inventory These parameters are further evaluated in the section below case project assumptions, and primary factors affecting the financial viability of the project scenarios Tetra Tech developed capital costs for the proposed with equipment vendors,publicly costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development for both scenarios corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to international standard, the RDF Boiler plant all-in capital cost is plant is projected to cost FEASIBILITY STUDY D ECONOMICANALYSIS financial modeling and economic performance projections of the prospective plant, using proprietary economic modeling software. When possible, Tetra Tech solicited cost and operational parameters from equipment providers, and supplemented that information with a 1.5 MM Btu RDF Boiler and a 1.5 MM Btu MSW Gasifier apital costs including engineering, procurement and construction of the plants up costs, working capital and inventory These parameters are further evaluated in the section below case project assumptions, and additional analysis is provided to examine primary factors affecting the financial viability of the project scenarios for the proposed facility configurations publicly-available information costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development both scenarios.The capital cost supplied is a budgetary estimate, corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to in capital cost is plant is projected to cost in the range of D ECONOMICANALYSIS financial modeling and economic performance projections of the prospective plant, using proprietary economic modeling software.The models evaluate the project When possible, Tetra Tech solicited cost and operational parameters from equipment providers, and supplemented that information with internal engineering analysis. a 1.5 MM Btu RDF Boiler and a 1.5 MM Btu MSW Gasifier apital costs including engineering, procurement and construction of the plants up costs, working capital and inventory These parameters are further evaluated in the section below.A pro additional analysis is provided to examine primary factors affecting the financial viability of the project scenarios. facility configurations available information,and internal databases, as well as costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development The capital cost supplied is a budgetary estimate, corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as completion of the facility, and as such can only be held to a +30% to -15% accuracy level. in capital cost is projected to fall in the range of in the range of $4.2 MM D ECONOMICANALYSIS financial modeling and economic performance projections of the prospective The models evaluate the project When possible, Tetra Tech solicited cost and operational parameters from internal engineering analysis. a 1.5 MM Btu RDF Boiler and a 1.5 MM Btu MSW Gasifier include: apital costs including engineering, procurement and construction of the plants up costs, working capital and inventory A pro forma analysis was additional analysis is provided to examine facility configurations based on and internal databases, as well as costs and operational parameters derived from engineering investigation of the proposed facility. cost below is therefore not representative of any single bid or vendor’s equipment profile. final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development The capital cost supplied is a budgetary estimate, corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as 15% accuracy level. projected to fall in the range of MM – $6.4 MM December 2012 financial modeling and economic performance projections of the prospective The models evaluate the project When possible, Tetra Tech solicited cost and operational parameters from internal engineering analysis.Facility include: alysis was prepared additional analysis is provided to examine based on a number of and internal databases, as well as costs and operational parameters derived from engineering investigation of the proposed facility.The capital cost below is therefore not representative of any single bid or vendor’s equipment profile.Tetra Tech final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development The capital cost supplied is a budgetary estimate, corresponding to the level of engineering detail that has been conducted at this stage of the project. Budgetary quotes are defined by engineering’s governing body, AACE International, as 10-15% design 15% accuracy level.Adhering to this projected to fall in the range of $1.9 MM MM. December 2012 financial modeling and economic performance projections of the prospective The models evaluate the project When possible, Tetra Tech solicited cost and operational parameters from Facility prepared additional analysis is provided to examine the a number of and internal databases, as well as The capital Tetra Tech final construction bids from prospective vendors to confirm final project capital cost breakdown for process equipment, building costs, development The capital cost supplied is a budgetary estimate, corresponding to the level of engineering detail that has been conducted at this stage of the project. 15% design Adhering to this MM – KOTZEBUE BIOMASS 7-2 Table Note that a Actual costs will vary depending on the technology provider and general contractor chosen for the project material costs, and other factors in further facilit 7.1.1 CAPITAL COST A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. Process Equipment Scale and significantly more than smaller RDF boiler by itself is approximately $250,000, wh MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock supply either through improved RDF collection efforts or increased purchase of Scenario 2 is scaled anticipated additional feedstock sources for this type of syste Materials and Labor Factor for Kotzebue delivery of materials from outside vendors, were subject to a Process Equipment Energy System & Controls Feedstock Handling and Rolling Stock District Energy Distribution Piping Process Equipment Total Building and Development Costs Site Preparation Process Building Utility Connections and Controls Delivery and Installation Engineering, Permitting, and Indirect Costs Total Contingency (20%) Grand Total KOTZEBUE BIOMASS Table 7-1:Biomass Power Plant Note that a 20%contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project material costs, and other factors in further facilit CAPITAL COST A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. Process Equipment Scale and significantly more than smaller RDF boiler by itself is approximately $250,000, wh MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of Scenario 2 is scaled anticipated additional feedstock sources for this type of syste Materials and Labor Factor for Kotzebue delivery of materials from outside vendors, were subject to a Process Equipment Energy System & Controls Feedstock Handling and Rolling Stock District Energy Distribution Piping Process Equipment Total Building and Development Costs Site Preparation Process Building Utility Connections and Controls Delivery and Installation Engineering, Permitting, and Indirect Costs Total Contingency (20%) Grand Total Capital Expenditure KOTZEBUE BIOMASS FEASIBILITY STUDY Biomass Power Plant contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project material costs, and other factors in further facilit CAPITAL COST FACTORS A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. Process Equipment Scale and Cost. significantly more than smaller-scale installations, As noted in the cost estimate above, a 1.5 MM Btu RDF boiler by itself is approximately $250,000, wh MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of Scenario 2 is scaled to match the volume of incoming feedstock; it anticipated additional feedstock sources for this type of syste Materials and Labor Factor for Kotzebue delivery of materials from outside vendors, were subject to a Process Equipment Energy System & Controls Feedstock Handling and Rolling Stock District Energy Distribution Piping Process Equipment Total Building and Development Costs Utility Connections and Controls Delivery and Installation Engineering, Permitting, and Indirect Costs Contingency (20%) Capital Expenditure FEASIBILITY STUDY Biomass Power Plant Capital Cost Estimate contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project material costs, and other factors in further facility engineering and procurement stages A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. Cost.It was discovered that RDF boilers priced for Scenario 1 scale installations, As noted in the cost estimate above, a 1.5 MM Btu RDF boiler by itself is approximately $250,000, wh MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of to match the volume of incoming feedstock; it anticipated additional feedstock sources for this type of syste Materials and Labor Factor for Kotzebue. All materials and labor sourced from the Kotzebue area, and delivery of materials from outside vendors, were subject to a Feedstock Handling and Rolling Stock District Energy Distribution Piping Building and Development Costs Utility Connections and Controls Engineering, Permitting, and Indirect Costs Capital Expenditure FEASIBILITY STUDY Capital Cost Estimate contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project y engineering and procurement stages A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. It was discovered that RDF boilers priced for Scenario 1 scale installations, As noted in the cost estimate above, a 1.5 MM Btu RDF boiler by itself is approximately $250,000, while a 500k MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of to match the volume of incoming feedstock; it anticipated additional feedstock sources for this type of syste . All materials and labor sourced from the Kotzebue area, and delivery of materials from outside vendors, were subject to a Scenario 1 RDF Boiler $250,000 $133,000 $185,000 $568,000 $37,000 $388,000 $98,000 $624,000 $150,000 $1,865,000 $373,000 $2,238,000 contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project y engineering and procurement stages A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. It was discovered that RDF boilers priced for Scenario 1 scale installations, As noted in the cost estimate above, a 1.5 MM Btu ile a 500k –1 MM Btu boiler MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of to match the volume of incoming feedstock; it is not oversized as there are no anticipated additional feedstock sources for this type of system. . All materials and labor sourced from the Kotzebue area, and delivery of materials from outside vendors, were subject to an 185% cost surplus factor. This estimate is Scenario 1 Scenario 2 RDF Boiler MSW Gasifier $250,000 $133,000 $185,000 $568,000 $37,000 $388,000 $98,000 $624,000 $150,000 $1,865,000 $373,000 $2,238,000 contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project y engineering and procurement stages. A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. It was discovered that RDF boilers priced for Scenario 1 scale installations, As noted in the cost estimate above, a 1.5 MM Btu 1 MM Btu boiler saves MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock upply either through improved RDF collection efforts or increased purchase of wood pellets. is not oversized as there are no . All materials and labor sourced from the Kotzebue area, and 185% cost surplus factor. This estimate is Scenario 2 MSW Gasifier $2,434,000 $190,000 $0 $2,624,000 $190,000 $351,000 $157,000 $624,000 $162,000 $4,108,000 $822,000 $4,930,000 December 2012 contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project A number of assumptions are made regarding capital costs for projects that are in early developmental stages. The primary factors affecting the Kotzebue biomass energy system are described below. It was discovered that RDF boilers priced for Scenario 1 do not cost scale installations, As noted in the cost estimate above, a 1.5 MM Btu saves only $30-50k. 1.5 MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock wood pellets. is not oversized as there are no . All materials and labor sourced from the Kotzebue area, and 185% cost surplus factor. This estimate is December 2012 contingency factor is also applied to the capital cost to account for additional cost overruns. Actual costs will vary depending on the technology provider and general contractor chosen for the project, A number of assumptions are made regarding capital costs for projects that are in early developmental do not cost scale installations, As noted in the cost estimate above, a 1.5 MM Btu 50k. 1.5 MM Btu is a standard size for this equipment, and is available through more outlets. Therefore it was determined to specify an oversized boiler for Scenario 1, able to accommodate additional feedstock is not oversized as there are no . All materials and labor sourced from the Kotzebue area, and 185% cost surplus factor. This estimate is KOTZEBUE BIOMASS 7-3 based on past experience with remote capital p by the McDowell Group for the Alaska Department of Labor and Workforce 7.2 FINANCIAL MODELING Tetra Tech prepared two financial models for the project designs. information available goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and retu The project inputs that have the greatest impact on project operations and financial returns are: Feedstock Input. year of sorted cardboard, paper, and woo wood pellets to meet the WTP and Maintenance Building heating needs. heat demand between For the stream, 1,625 feedstock available Feedstoc costs are included as manpower and operational costs. $300/ton Avoided Waste Disposal Cost. associated with each scenario Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 for an Alaska township the size of Kotzebue ton.Converted to 2012 dollars, the ra assumed for financial costing of the project 10 Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. 11 “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North America, May 1999. KOTZEBUE BIOMASS based on past experience with remote capital p by the McDowell Group for the Alaska Department of Labor and Workforce FINANCIAL MODELING Tetra Tech prepared two financial models for the project The financial model is an estimate of potential project returns, information available at present goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and retu The project inputs that have the greatest impact on project operations and financial returns are: Feedstock Input.For the of sorted cardboard, paper, and woo wood pellets to meet the WTP and Maintenance Building heating needs. demand between For the MSW Gasifier stream, 1,625 tons per year at feedstock available Feedstock Input Cost. costs are included as manpower and operational costs. $300/ton,delivered Avoided Waste Disposal Cost. associated with each scenario Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 for an Alaska township the size of Kotzebue Converted to 2012 dollars, the ra assumed for financial costing of the project Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North America, May 1999. KOTZEBUE BIOMASS FEASIBILITY STUDY based on past experience with remote capital p by the McDowell Group for the Alaska Department of Labor and Workforce FINANCIAL MODELING INPUTS AND CONDITION Tetra Tech prepared two financial models for the project The financial model is an estimate of potential project returns, at present.To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and retu The project inputs that have the greatest impact on project operations and financial returns are: For the RDF Boiler of sorted cardboard, paper, and woo wood pellets to meet the WTP and Maintenance Building heating needs. demand between 0.51 tons/day MSW Gasifier scenario, feedstock inpu tons per year at ~20 feedstock available.Daily input rate k Input Cost.MSW feedstock costs are included as manpower and operational costs. delivered to Kotzebue. Avoided Waste Disposal Cost.A associated with each scenario, and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 for an Alaska township the size of Kotzebue Converted to 2012 dollars, the ra assumed for financial costing of the project Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North FEASIBILITY STUDY based on past experience with remote capital p by the McDowell Group for the Alaska Department of Labor and Workforce INPUTS AND CONDITION Tetra Tech prepared two financial models for the project The financial model is an estimate of potential project returns, To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and retu The project inputs that have the greatest impact on project operations and financial returns are: RDF Boiler scenario (Scenario 1) of sorted cardboard, paper, and wood product, supplemented by 40.9 tons per year of purchased wood pellets to meet the WTP and Maintenance Building heating needs. .51 tons/day and 2.35 scenario, feedstock inpu ~20% moisture Daily input rate is steady per the volume of material incoming MSW feedstock was not assumed to carry any cost or tipping fee costs are included as manpower and operational costs. . A factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 for an Alaska township the size of Kotzebue11 Converted to 2012 dollars, the range is $102 assumed for financial costing of the project, after accounting for ash waste that will need to be landfilled Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North FEASIBILITY STUDY based on past experience with remote capital projects as well as geographic cost differentials calculated by the McDowell Group for the Alaska Department of Labor and Workforce INPUTS AND CONDITIONAL Tetra Tech prepared two financial models for the project,correspondi The financial model is an estimate of potential project returns, To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and retu The project inputs that have the greatest impact on project operations and financial returns are: (Scenario 1), feedstock input is assumed to be d product, supplemented by 40.9 tons per year of purchased wood pellets to meet the WTP and Maintenance Building heating needs. 2.35 tons/day. scenario, feedstock input is assumed to be which is approximately the current moisture content in the is steady per the volume of material incoming was not assumed to carry any cost or tipping fee costs are included as manpower and operational costs. factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 11.Costs for the smaller rural areas were much higher per nge is $102-168/ton. , after accounting for ash waste that will need to be landfilled Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North rojects as well as geographic cost differentials calculated by the McDowell Group for the Alaska Department of Labor and Workforce AL ASSUMPTIONS corresponding to the two plant scale conceptual The financial model is an estimate of potential project returns, To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs financial forecasts that have the greatest impact on the project risk and return The project inputs that have the greatest impact on project operations and financial returns are: , feedstock input is assumed to be d product, supplemented by 40.9 tons per year of purchased wood pellets to meet the WTP and Maintenance Building heating needs. assumed to be the entire volume of Kotzebue’s waste which is approximately the current moisture content in the is steady per the volume of material incoming was not assumed to carry any cost or tipping fee Supplemental pellets are assumed to cost factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68 Costs for the smaller rural areas were much higher per 168/ton.$102/ton avoidance cost was conservatively , after accounting for ash waste that will need to be landfilled Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North rojects as well as geographic cost differentials calculated by the McDowell Group for the Alaska Department of Labor and Workforce10. ASSUMPTIONS ng to the two plant scale conceptual The financial model is an estimate of potential project returns,based upon the To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs rn follows. The project inputs that have the greatest impact on project operations and financial returns are: , feedstock input is assumed to be d product, supplemented by 40.9 tons per year of purchased wood pellets to meet the WTP and Maintenance Building heating needs.Daily input rate varies with the entire volume of Kotzebue’s waste which is approximately the current moisture content in the is steady per the volume of material incoming. was not assumed to carry any cost or tipping fee Supplemental pellets are assumed to cost factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Association of North America, which calculated an average disposal cost of $68-112/ton in 1995 dollars Costs for the smaller rural areas were much higher per $102/ton avoidance cost was conservatively , after accounting for ash waste that will need to be landfilled Fried, Neal. “The Cost of Living in Alaska.” Alaska Economic Trends, July 2011. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North December 2012 rojects as well as geographic cost differentials calculated ng to the two plant scale conceptual based upon the most accurate To maintain project transparency, and to facilitate adjustments to project goals as the project moves further in the development phase, an explanation of the inputs used in the The project inputs that have the greatest impact on project operations and financial returns are: , feedstock input is assumed to be 320 tons per d product, supplemented by 40.9 tons per year of purchased Daily input rate varies with the entire volume of Kotzebue’s waste which is approximately the current moisture content in the was not assumed to carry any cost or tipping fee.RDF sorting Supplemental pellets are assumed to cost factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling Disposal cost avoidance was based on research conducted by the Alaska Chapter of the Solid Waste 112/ton in 1995 dollars Costs for the smaller rural areas were much higher per $102/ton avoidance cost was conservatively , after accounting for ash waste that will need to be landfilled “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North December 2012 rojects as well as geographic cost differentials calculated ng to the two plant scale conceptual most accurate To maintain project transparency, and to facilitate adjustments to project used in the tons per d product, supplemented by 40.9 tons per year of purchased Daily input rate varies with the entire volume of Kotzebue’s waste which is approximately the current moisture content in the RDF sorting Supplemental pellets are assumed to cost factor was included to account for avoidance of landfilling the wastes , and was included as a revenue or savings in the financial modeling. Solid Waste 112/ton in 1995 dollars Costs for the smaller rural areas were much higher per $102/ton avoidance cost was conservatively , after accounting for ash waste that will need to be landfilled. “Alaska Solid Waste Regionalization Report.” The Alaska Chapter of the Solid Waste Association of North KOTZEBUE BIOMASS 7-4 Thermal Energy Production. assumed to be heating Add-Heat system. Thermal Energy $6.037/gallon. heating fuel serving the buildings. is $45.05/MM Btu. Scenario 2 replaces the KEA Add KEA Add avoided (times) the price of the efficiency of the City’s $39.42/MM Btu. Project Investment. a bond, supplemented by capital investment from the Treasury Department’s posted 20 Grant Funding. project scenario. Project Construction and operational in the year 2014. project financial close, then ramp up to full operations i Depreciation and Amortization. of the buildings. reported by the respective equipment vendors, and takes into account maintenance and overhaul cos 10-year Return on Investment (ROI) calculation. facility operation 20-year Internal Rate of Return (IRR) calculation. year run of the financial model (1 flow). Project Operating and Maintenance. is assumed to be KOTZEBUE BIOMASS Thermal Energy Production. assumed to be used by the heating of city buildings Heat system. Thermal Energy Sale Value. $6.037/gallon.The heating fuel, determined on serving the buildings. is $45.05/MM Btu. Scenario 2 replaces the KEA Add KEA Add-Heat contract. avoided (times) the price of the efficiency of the City’s $39.42/MM Btu. Project Investment. a bond, supplemented by capital investment from the Treasury Department’s posted 20 Grant Funding.Support of $500,000 in general economic development grants is assumed for each project scenario. Project Construction and operational in the year 2014. project financial close, then ramp up to full operations i Depreciation and Amortization. of the biomass energy buildings.Process equipment de reported by the respective equipment vendors, and takes into account maintenance and overhaul cos year Return on Investment (ROI) calculation. facility operation, on a pre year Internal Rate of Return (IRR) calculation. year run of the financial model (1 flow). Project Operating and Maintenance. is assumed to be 1.5 KOTZEBUE BIOMASS FEASIBILITY STUDY Thermal Energy Production.All t used by the city of Kotzebue to offset of city buildings is assumed as the use, for Scenario 2, water heating in replacement of the KEA Sale Value.The average price of heating fuel in Kotzebue for the winter of 2012/2013 is The value of the thermal energy , determined on Btu:Btu serving the buildings.Efficiency of those boilers is set at 8 Scenario 2 replaces the KEA Add Heat contract.The contract states that the charge is equal to the quantity of avoided (times) the price of heating the efficiency of the City’s boilers, set at 80%. Project Investment.Financing of the project is expected to be accomplished primarily through raising of a bond, supplemented by capital investment from the Treasury Department’s posted 20 Support of $500,000 in general economic development grants is assumed for each Project Construction and Facility Operational Year. operational in the year 2014. project financial close, then ramp up to full operations i Depreciation and Amortization. energy plant’s Process equipment de reported by the respective equipment vendors, and takes into account maintenance and overhaul cos year Return on Investment (ROI) calculation. , on a pre-tax income basis. year Internal Rate of Return (IRR) calculation. year run of the financial model (1 Project Operating and Maintenance. 1.5% of the equipment capital costs, annually. FEASIBILITY STUDY All thermal energy produced ity of Kotzebue to offset is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is value of the thermal energy :Btu basis taking into account Efficiency of those boilers is set at 8 Scenario 2 replaces the KEA Add-Heat system, and the value of The contract states that the charge is equal to the quantity of heating fuel (times) 70%. The quantity of fuel avoided includes a factor for boilers, set at 80%. Financing of the project is expected to be accomplished primarily through raising of a bond, supplemented by capital investment from the Treasury Department’s posted 20-yr Bond interest rate, Support of $500,000 in general economic development grants is assumed for each Facility Operational Year. The construction period is expected to consume 13 months following project financial close, then ramp up to full operations i 20-year straight line depreciation is used to depreciate the installed cost major equipment, and 30 Process equipment depreciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul cos year Return on Investment (ROI) calculation. tax income basis. year Internal Rate of Return (IRR) calculation. year run of the financial model (10 years of th Project Operating and Maintenance.Maintenance % of the equipment capital costs, annually. FEASIBILITY STUDY mal energy produced ity of Kotzebue to offset heating fuel purchases is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is value of the thermal energy produced in Scenario 1 basis taking into account Efficiency of those boilers is set at 80 Heat system, and the value of The contract states that the charge is equal to the quantity of fuel (times) 70%. The quantity of fuel avoided includes a factor for boilers, set at 80%.Thus, the value of thermal energy in Scenario 2 is Financing of the project is expected to be accomplished primarily through raising of a bond, supplemented by capital investment from the city. yr Bond interest rate, Support of $500,000 in general economic development grants is assumed for each Facility Operational Year.The facility was assumed to be constructed and The construction period is expected to consume 13 months following project financial close, then ramp up to full operations in months 14 and 15. year straight line depreciation is used to depreciate the installed cost major equipment, and 30 preciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul cos year Return on Investment (ROI) calculation.Return on Investment calculation is based on 10 years of year Internal Rate of Return (IRR) calculation.Internal Rate of Return calculation is based on a years of the base model plus 1 Maintenance and materials expenditures % of the equipment capital costs, annually. mal energy produced by the biomass heating fuel purchases is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is produced in Scenario 1 basis taking into account the relative efficiency of the diesel boilers 0%.The value of thermal energy in Scenario 1 Heat system, and the value of thermal energy is se The contract states that the charge is equal to the quantity of fuel (times) 70%. The quantity of fuel avoided includes a factor for Thus, the value of thermal energy in Scenario 2 is Financing of the project is expected to be accomplished primarily through raising of .The projects yr Bond interest rate,2.5% as of November Support of $500,000 in general economic development grants is assumed for each The facility was assumed to be constructed and The construction period is expected to consume 13 months following n months 14 and 15. year straight line depreciation is used to depreciate the installed cost major equipment, and 30-yr straight line depreciation for process preciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul cos Return on Investment calculation is based on 10 years of Internal Rate of Return calculation is based on a e base model plus 10 years of additional end and materials expenditures % of the equipment capital costs, annually. by the biomass energy heating fuel purchases.For Scenario 1, space is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is produced in Scenario 1 is based on the local price of #1 the relative efficiency of the diesel boilers The value of thermal energy in Scenario 1 thermal energy is se The contract states that the charge is equal to the quantity of fuel (times) 70%. The quantity of fuel avoided includes a factor for Thus, the value of thermal energy in Scenario 2 is Financing of the project is expected to be accomplished primarily through raising of projects expected interest rate is set at November 2012. Support of $500,000 in general economic development grants is assumed for each The facility was assumed to be constructed and The construction period is expected to consume 13 months following n months 14 and 15. year straight line depreciation is used to depreciate the installed cost yr straight line depreciation for process preciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul cos Return on Investment calculation is based on 10 years of Internal Rate of Return calculation is based on a years of additional end and materials expenditures for each December 2012 plant scenarios For Scenario 1, space is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is is based on the local price of #1 the relative efficiency of the diesel boilers The value of thermal energy in Scenario 1 thermal energy is set according to the The contract states that the charge is equal to the quantity of heating fuel (times) 70%. The quantity of fuel avoided includes a factor for Thus, the value of thermal energy in Scenario 2 is Financing of the project is expected to be accomplished primarily through raising of expected interest rate is set at 2012. Support of $500,000 in general economic development grants is assumed for each The facility was assumed to be constructed and The construction period is expected to consume 13 months following year straight line depreciation is used to depreciate the installed cost yr straight line depreciation for process preciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul cos Return on Investment calculation is based on 10 years of Internal Rate of Return calculation is based on a years of additional end-of-year cash for each project scenario December 2012 scenarios is For Scenario 1, space is assumed as the use, for Scenario 2, water heating in replacement of the KEA The average price of heating fuel in Kotzebue for the winter of 2012/2013 is is based on the local price of #1 the relative efficiency of the diesel boilers The value of thermal energy in Scenario 1 t according to the heating fuel fuel (times) 70%. The quantity of fuel avoided includes a factor for Thus, the value of thermal energy in Scenario 2 is Financing of the project is expected to be accomplished primarily through raising of expected interest rate is set at Support of $500,000 in general economic development grants is assumed for each The facility was assumed to be constructed and The construction period is expected to consume 13 months following year straight line depreciation is used to depreciate the installed cost yr straight line depreciation for process preciation is based on the minimum lifespan of the equipment as reported by the respective equipment vendors, and takes into account maintenance and overhaul costs. Return on Investment calculation is based on 10 years of Internal Rate of Return calculation is based on a 20- year cash scenario KOTZEBUE BIOMASS 7-5 7.3 PRO FORMA Tetra Tech conducted for the city of Kotzebue project. including a balance sheet, income statement, and cash flow statement. year of construction and ten years of operation) Cost Model also produces been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu RDF boiler system, Scenario 2 is a 1.5 MM Btu MSW 7.3.1 PROJECT FINANCIAL AN Based on the inputs included in the financi financial ventures. The RDF lifespan Internal Rate of Return (IRR) nearly $213,000 scenario. Table City of Kotzebue 112C04294 Financial Projections Summary 10 20 Simple Payback in Years Average Annual Total Project Investment However, average income and before interest, taxes, depreciation, and amortization), the cash entity.Thus, o (approximately $150,000 and $ costs, maintenance, and employee pay (totaling approximately $ produces enough cash flow to support a single employee, however, and required the $500,000 grant funding to reduce the cost of capital equipment repaymen KOTZEBUE BIOMASS PRO FORMA FINANCIAL MODE Tetra Tech conducted the ity of Kotzebue The Tetra Tech including a balance sheet, income statement, and cash flow statement. year of construction and ten years of operation) Cost Model also produces been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu oiler system, Scenario 2 is a 1.5 MM Btu MSW PROJECT FINANCIAL AN Based on the inputs included in the financi financial ventures. The RDF lifespan Internal Rate of Return (IRR) nearly $213,000,and a lifespan IRR of 4.7%. Table 7-2: Summary Financial Metrics City of Kotzebue 112C04294 Financial Projections Summary 10-year Average Annual ROI 20-year Internal Rate of Return (IRR) Simple Payback in Years Average Annual Total Project Investment However, average income and before interest, taxes, depreciation, and amortization), the cash Thus, on an ongoing operations basis, the facilities are self (approximately $150,000 and $ ts, maintenance, and employee pay (totaling approximately $ produces enough cash flow to support a single employee, however, and required the $500,000 grant funding to reduce the cost of capital equipment repaymen KOTZEBUE BIOMASS FEASIBILITY STUDY FINANCIAL MODE the financial a ity of Kotzebue to pursue, and to identify key project parameters that most affect the viability of the The Tetra Tech Life Cycle Cost Model including a balance sheet, income statement, and cash flow statement. year of construction and ten years of operation) Cost Model also produces 20-year project return calculations. been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu oiler system, Scenario 2 is a 1.5 MM Btu MSW PROJECT FINANCIAL ANALYSIS RESULTS Based on the inputs included in the financi financial ventures. The RDF boiler produces a slim lifespan Internal Rate of Return (IRR) and a lifespan IRR of 4.7%. : Summary Financial Metrics City of Kotzebue 112C04294 Financial Projections Summary year Average Annual ROI year Internal Rate of Return (IRR) Simple Payback in Years Average Annual Income Total Project Investment However, average income and IRR do not tell the full story. before interest, taxes, depreciation, and amortization), the cash n an ongoing operations basis, the facilities are self (approximately $150,000 and $500,000 annually, for Scenario ts, maintenance, and employee pay (totaling approximately $ produces enough cash flow to support a single employee, however, and required the $500,000 grant funding to reduce the cost of capital equipment repaymen FEASIBILITY STUDY FINANCIAL MODELING AND PROJECTED R analysis to determine if , and to identify key project parameters that most affect the viability of the Life Cycle Cost Model including a balance sheet, income statement, and cash flow statement. year of construction and ten years of operation)for the year project return calculations. been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu oiler system, Scenario 2 is a 1.5 MM Btu MSW ALYSIS RESULTS Based on the inputs included in the financial model, oiler produces a slim lifespan Internal Rate of Return (IRR)of 1.8%.The MSW and a lifespan IRR of 4.7%.T : Summary Financial Metrics City of Kotzebue 112C04294 Financial Projections Summary Scenario 1: RDF Boiler year Internal Rate of Return (IRR) do not tell the full story. before interest, taxes, depreciation, and amortization), the cash n an ongoing operations basis, the facilities are self 0,000 annually, for Scenario ts, maintenance, and employee pay (totaling approximately $ produces enough cash flow to support a single employee, however, and required the $500,000 grant funding to reduce the cost of capital equipment repaymen FEASIBILITY STUDY LING AND PROJECTED R nalysis to determine if a biomass energy , and to identify key project parameters that most affect the viability of the Life Cycle Cost Model produces ten including a balance sheet, income statement, and cash flow statement. for the scenario is year project return calculations. been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu oiler system, Scenario 2 is a 1.5 MM Btu MSW gasifier system. ALYSIS RESULTS al model,both the oiler produces a slim annual average The MSW gasifier produces a Table 7-2 displays the summary financial metrics of each Scenario 1: RDF Boiler 2.6% 1.8% 17.66 $39,749 $2,053,100 do not tell the full story.Both facilities produce positive EBITDA (earnings before interest, taxes, depreciation, and amortization), the cash n an ongoing operations basis, the facilities are self 0,000 annually, for Scenarios ts, maintenance, and employee pay (totaling approximately $ produces enough cash flow to support a single employee, however, and required the $500,000 grant funding to reduce the cost of capital equipment repayment. LING AND PROJECTED RETURNS a biomass energy , and to identify key project parameters that most affect the viability of the ten-year operating forecasts for the projects including a balance sheet, income statement, and cash flow statement.Complete 11 scenario is included in the appendixes. The impacts of critical project variables have been determined and the viability of the projects with regard to each has been As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu asifier system. RDF boiler and annual average net income of asifier produces a displays the summary financial metrics of each Scenario 2: MSW Gasifier 2.6% 1.8% 7.66 $39,749 $212,916 $2,053,100 $4,930,100 Both facilities produce positive EBITDA (earnings before interest, taxes, depreciation, and amortization), the cash flow from operations n an ongoing operations basis, the facilities are self-sustaining, saving more in fuel costs s 1 and 2, respectively ts, maintenance, and employee pay (totaling approximately $55,000 and $2 produces enough cash flow to support a single employee, however, and required the $500,000 grant funding ETURNS a biomass energy plant is economically feasible , and to identify key project parameters that most affect the viability of the year operating forecasts for the projects Complete 11-year pro included in the appendixes. The impacts of critical project variables have been determined and the viability of the projects with regard to each has been evaluated. As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu and the MSW g net income of nearly $40,000, asifier produces an annual average income displays the summary financial metrics of each Scenario 2: MSW Gasifier 4.8% 4.7% 11.93 $212,916 $4,930,100 Both facilities produce positive EBITDA (earnings flow from operations sustaining, saving more in fuel costs , respectively) than their operational ,000 and $230,000, each). produces enough cash flow to support a single employee, however, and required the $500,000 grant funding December 2012 is economically feasible , and to identify key project parameters that most affect the viability of the year operating forecasts for the projects year pro forma included in the appendixes.The Life Cycle The impacts of critical project variables have As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu gasifier are positive nearly $40,000,and project l average income displays the summary financial metrics of each Both facilities produce positive EBITDA (earnings flow from operations for a tax-exempt sustaining, saving more in fuel costs ) than their operational ,000, each).Scenario 1 only produces enough cash flow to support a single employee, however, and required the $500,000 grant funding December 2012 is economically feasible , and to identify key project parameters that most affect the viability of the year operating forecasts for the projects forma (one The Life Cycle The impacts of critical project variables have As before, the financial pro forma analysis considered for two project scenarios; Scenario 1 is a 1.5 MM Btu positive project l average income of displays the summary financial metrics of each Both facilities produce positive EBITDA (earnings exempt sustaining, saving more in fuel costs ) than their operational Scenario 1 only produces enough cash flow to support a single employee, however, and required the $500,000 grant funding KOTZEBUE BIOMASS 7-6 Table 7-3 summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year stable facility operations. Table City of Kotzebue 112C04294 Pro Net Revenue Avoided Disposal Heat Power Total Revenue Production & Operating Expenses Feedstocks Electricity Total Production Costs Gross Env. Commodities / Incentives Administrative & Operating Expenses Maintenance Materials & Services Salaries, Wages & Benefits Total Administrative & EBITDA Less: Interest Depreciation & Amortization Current Income Taxes Year 2 Net Earnings 10-Year Average Annual Income 10-Year Average Annual ROI 20-Year Internal Rate of Return (IRR) Appendices A and B display KOTZEBUE BIOMASS shows a summary pro forma Income summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year stable facility operations. Table 7-3:Results of Baseline Scenario Financial Analysis City of Kotzebue 112C04294 Pro forma Income Statement for Year 2 Net Revenue Avoided Disposal Heat Power Total Revenue Production & Operating Expenses Feedstocks Electricity Total Production Costs Gross Profit Env. Commodities / Incentives Administrative & Operating Expenses Maintenance Materials & Services Salaries, Wages & Benefits Total Administrative & EBITDA Less: Interest -Senior Debt Depreciation & Amortization Current Income Taxes Year 2 Net Earnings Year Average Annual Income Year Average Annual ROI Year Internal Rate of Return (IRR) Appendices A and B display KOTZEBUE BIOMASS FEASIBILITY STUDY summary pro forma Income summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year stable facility operations. Results of Baseline Scenario Financial Analysis City of Kotzebue 112C04294 forma Income Statement for Year 2 Avoided Disposal Cost Production & Operating Expenses Total Production Costs Env. Commodities / Incentives Administrative & Operating Expenses Maintenance Materials & Services Salaries, Wages & Benefits Total Administrative &Operating Expenses Senior Debt Depreciation & Amortization Current Income Taxes Year 2 Net Earnings Year Average Annual Income Year Average Annual ROI Year Internal Rate of Return (IRR) Appendices A and B display complete FEASIBILITY STUDY summary pro forma Income Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year Results of Baseline Scenario Financial Analysis forma Income Statement for Year 2 Production & Operating Expenses Env. Commodities / Incentives Administrative & Operating Expenses Maintenance Materials & Services Operating Expenses Year Average Annual Income Year Internal Rate of Return (IRR) complete financial pro forma FEASIBILITY STUDY Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year Results of Baseline Scenario Financial Analysis Scenario 1: RDF Boiler Operating Expenses financial pro formas for the Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year Scenario 1: RDF Boiler MSW Gasifier $/Year $29,905 $154,715 $0 $184,620 $12,300 $221 $12,521 $172,099 $0 $5,329 $50,490 $55,819 $116,281 $24,859 $65,085 $0 $26,337 $39,749 2.6% 1.8% the scenarios. Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year Scenario 2: MSW Gasifier $/Year $152,159 $493,136 $0 $645,295 $0 $1,078 $1,078 $644,217 $0 $39,341 $191,760 $231,101 $413,115 $71,632 $168,113 $0 $173,370 $212,916 4.8% 4.7% December 2012 Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year $/Year $152,159 $493,136 $0 $645,295 $0 $1,078 $1,078 $644,217 $0 $39,341 $191,760 $231,101 $413,115 $71,632 $168,113 $0 $173,370 $212,916 4.8% 4.7% December 2012 Statement for the two baseline production scenarios. The summaries display projected financial metrics in Year 2 of facility operation, assumed to be the first year of KOTZEBUE BIOMASS 7-7 7.3.2 OPTIONS TO IMPROVE C While both they have medium break-even than many banks and private investors the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of those critical variables and the effect changing these variables. Option 1: Increase RDF c to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial product capture, throughput If this capture $60,000, and IRR increases to 6.1%. This project. Option primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, construction costs as well as project ‘s Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year. solely through the improvement in capital expenditure. Option cash flow by reducing the debt interest payment required. through a zero The MSW g KOTZEBUE BIOMASS OPTIONS TO IMPROVE C While both project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, ave medium-term payback periods even than many banks and private investors the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of those critical variables and the effect changing these variables. Option 1: Increase RDF c to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial product capture, throughput If this capture rate $60,000, and IRR increases to 6.1%. This project. Option 2: Reduce CapEx. primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, construction costs as well as project ‘s Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year. solely through the improvement in capital expenditure. Option 3: Loan Assistance. cash flow by reducing the debt interest payment required. through a zero-interest loan, it The MSW gasifier scenario improves as well, to 5.6% IRR and plus $81,000 in net income. KOTZEBUE BIOMASS FEASIBILITY STUDY OPTIONS TO IMPROVE CASH FLOW project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, term payback periods even than many banks and private investors the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of those critical variables and the effect changing these variables. Option 1: Increase RDF collection Rate to 60% to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial product capture, throughput increases rate is achieved, net $60,000, and IRR increases to 6.1%. This : Reduce CapEx.Project equity and debt requirements can be eased through grant assistance, primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, construction costs as well as project ‘s Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year. solely through the improvement in capital expenditure. : Loan Assistance.Low- cash flow by reducing the debt interest payment required. interest loan, it improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. FEASIBILITY STUDY ASH FLOW project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, term payback periods near to the lifespan expectancy of the equipment even than many banks and private investors the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of those critical variables and the effect changing these variables. ollection Rate to 60% to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial increases by over 60 tons/year to 383.25 tons/year. is achieved, net income of the RDF boiler scenario more than doubles, to nearly $60,000, and IRR increases to 6.1%. This is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, construction costs as well as project ‘soft costs’, the oversight and management costs of a project. Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year. solely through the improvement in capital expenditure. -interest or zero cash flow by reducing the debt interest payment required. improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. FEASIBILITY STUDY project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, near to the lifespan expectancy of the equipment even than many banks and private investors would prefer the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of those critical variables and the effect changing these variables. ollection Rate to 60%.Increasing the sorting and capture rate of RDF feedstock to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial by over 60 tons/year to 383.25 tons/year. income of the RDF boiler scenario more than doubles, to nearly is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, oft costs’, the oversight and management costs of a project. Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year. solely through the improvement in capital expenditure. interest or zero-interest capital improvement loans cash flow by reducing the debt interest payment required. improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, near to the lifespan expectancy of the equipment would prefer. Key project variables can be improved from the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of Increasing the sorting and capture rate of RDF feedstock to 60% of the available material, from the estimated 50%, provides a substantial increase in energy produced, fuel oil gallons displaced, and as a result, projected financial performance. by over 60 tons/year to 383.25 tons/year. income of the RDF boiler scenario more than doubles, to nearly is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, primarily, or also secondarily by combining capital improvement projects. design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope, oft costs’, the oversight and management costs of a project. Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately $700,000, and improves average annual income by $30,000 per year.IRR rises to investment interest capital improvement loans cash flow by reducing the debt interest payment required.If the RDF improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, near to the lifespan expectancy of the equipment . Key project variables can be improved from the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of Increasing the sorting and capture rate of RDF feedstock to 60% of the available material, from the estimated 50%, provides a substantial increase in energy performance. by over 60 tons/year to 383.25 tons/year. income of the RDF boiler scenario more than doubles, to nearly is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, primarily, or also secondarily by combining capital improvement projects.For instance, paralleling the design and project management of the biomass energy plant with the proposed redesign of the WTP, and incorporating the biomass plant within the WTP building envelope,can substantially reduce oft costs’, the oversight and management costs of a project. Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately IRR rises to investment interest capital improvement loans can help to improve If the RDF boiler scenario improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. December 2012 project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, near to the lifespan expectancy of the equipment, and are closer to . Key project variables can be improved from the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of Increasing the sorting and capture rate of RDF feedstock to 60% of the available material, from the estimated 50%, provides a substantial increase in energy performance.With this increased income of the RDF boiler scenario more than doubles, to nearly is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, stance, paralleling the design and project management of the biomass energy plant with the proposed redesign of the WTP, can substantially reduce oft costs’, the oversight and management costs of a project. Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately IRR rises to investment-grade 9. can help to improve scenario is capitalized improves ROI and IRR to 4.0% each, and annual net income by $22,000 scenario improves as well, to 5.6% IRR and plus $81,000 in net income. December 2012 project scenarios achieve positive cash flow and are on the plus side of all major financial metrics, , and are closer to . Key project variables can be improved from the conservative feasibility study assumptions to improve the financial outlook. Below are listed some of Increasing the sorting and capture rate of RDF feedstock to 60% of the available material, from the estimated 50%, provides a substantial increase in energy With this increased income of the RDF boiler scenario more than doubles, to nearly is an achievable goal that can have a significant impact on the Project equity and debt requirements can be eased through grant assistance, stance, paralleling the design and project management of the biomass energy plant with the proposed redesign of the WTP, can substantially reduce Incorporating the RDF boiler scenario into the WTP reduces capital expenditure by approximately grade 9.7% can help to improve is capitalized improves ROI and IRR to 4.0% each, and annual net income by $22,000. KOTZEBUE BIOMASS 8-1 8 CONCLUSIONSAND REC Based on the information available at this time and the analysis conducted in this study, Tetra Tech recommends that the Kotzebue. for a public entity to undertake. Benefits to the community include jobs and economic development, as well as renewable and self imports of fuel oil burned for heat Evaluated options for the proposed biomass facility include Scenario 2 near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Works campus building heat, supplemental Add Treatment Plant). The optimal proj factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent on the redevelopment of the WTP, which has been propos built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s waste composition. content of the material, as well as contaminants and other values. Sampling expected product capture rate combined with test profile, and required equipment for combustion (pre In conclusion, w being unnecessarily landfilled, and a significant amount of fuel oil could be displaced of a biomass energy plant. Total energy production of the gallons of fuel oil each year, and could keep over Reduction of waste is a primary driver for the project production but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 million pounds of material from landfills each year. program would make Kotzebue a model community in its own right. KOTZEBUE BIOMASS CONCLUSIONSAND REC Based on the information available at this time and the analysis conducted in this study, Tetra Tech recommends that the Kotzebue.The project, built at either project scale, for a public entity to undertake. Benefits to the community include jobs and economic development, as well as renewable and self- imports of fuel oil burned for heat Evaluated options for the proposed biomass facility include Scenario 2 MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Works campus building heat, supplemental Add Treatment Plant). The optimal project scale factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent on the redevelopment of the WTP, which has been propos built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s waste composition.Collection of sample content of the material, as well as contaminants and other values. Sampling expected product capture rate combined with test-burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre In conclusion, what can be determined from this study being unnecessarily landfilled, and a significant amount of fuel oil could be displaced of a biomass energy plant. Total energy production of the gallons of fuel oil each year, and could keep over Reduction of waste is a primary driver for the project production. A model program that th but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 million pounds of material from landfills each year. program would make Kotzebue a model community in its own right. KOTZEBUE BIOMASS FEASIBILITY STUDY CONCLUSIONSAND REC Based on the information available at this time and the analysis conducted in this study, Tetra Tech recommends that the city of Kotzebue proceed with further development of a biomass energy plant in , built at either project scale, for a public entity to undertake. Benefits to the community include jobs and economic development, as well -reliant energy imports of fuel oil burned for heat. Evaluated options for the proposed biomass facility include MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Works campus building heat, supplemental Add ect scale and configuration factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent on the redevelopment of the WTP, which has been propos built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s Collection of sample content of the material, as well as contaminants and other values. Sampling expected product capture rate of RDF burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre can be determined from this study being unnecessarily landfilled, and a significant amount of fuel oil could be displaced of a biomass energy plant. Total energy production of the gallons of fuel oil each year, and could keep over Reduction of waste is a primary driver for the project . A model program that th but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 million pounds of material from landfills each year. program would make Kotzebue a model community in its own right. FEASIBILITY STUDY CONCLUSIONSAND RECOMMENDATIO Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in , built at either project scale, for a public entity to undertake. Benefits to the community include jobs and economic development, as well energy generation, reduced waste disposal in the local lan Evaluated options for the proposed biomass facility include MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Works campus building heat, supplemental Add-Heat, and/or Add and configuration remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent on the redevelopment of the WTP, which has been propos built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s Collection of sample combustible material product will determine the actual energy content of the material, as well as contaminants and other values. Sampling of RDF. Laboratory characterization of the feedstock source burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre can be determined from this study being unnecessarily landfilled, and a significant amount of fuel oil could be displaced of a biomass energy plant. Total energy production of the gallons of fuel oil each year, and could keep over Reduction of waste is a primary driver for the project . A model program that this can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 million pounds of material from landfills each year. program would make Kotzebue a model community in its own right. FEASIBILITY STUDY OMMENDATIO Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in , built at either project scale,appears to be a for a public entity to undertake. Benefits to the community include jobs and economic development, as well , reduced waste disposal in the local lan Evaluated options for the proposed biomass facility include two MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Heat, and/or Add remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent on the redevelopment of the WTP, which has been proposed but not yet finalized. Whether the new WTP is built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material product will determine the actual energy content of the material, as well as contaminants and other values. Sampling . Laboratory characterization of the feedstock source burns in the selected conversion technology to solidify burn characteristics, emission profile, and required equipment for combustion (pre-processing, ash handling, etc). can be determined from this study is that a significant amount of Kotzebue’s trash is being unnecessarily landfilled, and a significant amount of fuel oil could be displaced of a biomass energy plant. Total energy production of the RDF Boiler scenario gallons of fuel oil each year, and could keep over 300 tons of waste out of the local landfill annually. Reduction of waste is a primary driver for the project, not to be forgotten with the benefits of energy is can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 million pounds of material from landfills each year.A biomass energy pl program would make Kotzebue a model community in its own right. OMMENDATIONS Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in appears to be a technically and for a public entity to undertake. Benefits to the community include jobs and economic development, as well , reduced waste disposal in the local lan two configurations ( MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Heat, and/or Add-Heat preheating for a redesigned Water remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent ed but not yet finalized. Whether the new WTP is built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material product will determine the actual energy content of the material, as well as contaminants and other values. Sampling . Laboratory characterization of the feedstock source burns in the selected conversion technology to solidify burn characteristics, emission processing, ash handling, etc). s that a significant amount of Kotzebue’s trash is being unnecessarily landfilled, and a significant amount of fuel oil could be displaced RDF Boiler scenario tons of waste out of the local landfill annually. , not to be forgotten with the benefits of energy is can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 A biomass energy pl program would make Kotzebue a model community in its own right. Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in technically and financially sound decision for a public entity to undertake. Benefits to the community include jobs and economic development, as well , reduced waste disposal in the local lan configurations (Scenario 1 MSW gasifier), at several project locations (on the Public Works campus, at the Hill near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Heat preheating for a redesigned Water remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent ed but not yet finalized. Whether the new WTP is built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plan Tetra Tech also recommends laboratory analysis of representative samples of Kotzebue’s waste stream. scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material product will determine the actual energy content of the material, as well as contaminants and other values. Sampling can also help to indicate . Laboratory characterization of the feedstock source burns in the selected conversion technology to solidify burn characteristics, emission processing, ash handling, etc). s that a significant amount of Kotzebue’s trash is being unnecessarily landfilled, and a significant amount of fuel oil could be displaced,with the development RDF Boiler scenario would displace tons of waste out of the local landfill annually. , not to be forgotten with the benefits of energy is can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 A biomass energy plant combined with a recycling December 2012 Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in financially sound decision for a public entity to undertake. Benefits to the community include jobs and economic development, as well , reduced waste disposal in the local landfill, and reduced Scenario 1RDF boiler MSW gasifier), at several project locations (on the Public Works campus, at the Hillside site, or near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Heat preheating for a redesigned Water remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent ed but not yet finalized. Whether the new WTP is built near its current location on the Public Works campus or on the Hillside area closer to the city water source at Vortak Lake helps to determine both the scale and the location of the biomass energy plant. Kotzebue’s waste stream. scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material product will determine the actual energy can also help to indicate . Laboratory characterization of the feedstock source should be burns in the selected conversion technology to solidify burn characteristics, emission s that a significant amount of Kotzebue’s trash is with the development displace over 30 tons of waste out of the local landfill annually. , not to be forgotten with the benefits of energy is can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 ant combined with a recycling December 2012 Based on the information available at this time and the analysis conducted in this study, Tetra Tech ity of Kotzebue proceed with further development of a biomass energy plant in financially sound decision for a public entity to undertake. Benefits to the community include jobs and economic development, as well dfill, and reduced RDF boiler and side site, or near KEA’s electricity generation plant), and providing thermal energy for several potential users (Public Heat preheating for a redesigned Water remains indeterminate at this time, and is based on a number of factors outside of the scope of this study. Several configurations of the biomass energy plant are contingent ed but not yet finalized. Whether the new WTP is built near its current location on the Public Works campus or on the Hillside area closer to the city water Kotzebue’s waste stream.The scope of the study only allowed for empirical review of available information and estimation of Kotzebue’s combustible material product will determine the actual energy can also help to indicate should be burns in the selected conversion technology to solidify burn characteristics, emission s that a significant amount of Kotzebue’s trash is with the development 30,000 tons of waste out of the local landfill annually. , not to be forgotten with the benefits of energy is can be based on is Sitka, a town roughly twice the size of Kotzebue but with a similar opportunity to reduce landfilled waste. Sitka’s voluntary recycling program diverts over 1.4 ant combined with a recycling KOTZEBUE BIOMASS 8-2 KOTZEBUE BIOMASSKOTZEBUE BIOMASS FEASIBILITY STUDYFEASIBILITY STUDYFEASIBILITY STUDY December 2012December 2012 Appendix A - 0 APPENDIX A – LIFE CYCLE COST MODEL PROFORMA RDF Boiler Scenario Financial Projection Appendix A - 1 Cityof Kotzebue - RDFBoiler Financial Assumptions Nameplate Plant Scale 1.5 MMBtu Operating Days Per Year 350 USEOFFUNDS: SOURCEOFFUNDS:Investment Activities Project Engineering & Construction Costs Senior Debt Income TaxRate 0.00% EPC Contract $350,000 Principal $1,026,550 50.00% Investment Interest 0.00% Deliveryand Installation $624,000 Interest Rate 2.50% fixed Operating Line Interest 0.00% Rail $0 Lender and Misc. Fees $0 0.000% Barge Unloading $0 Placement Fees $0 0.000% State Producer Payment Additional Feedstock Storage $0 Amortization Period 30 years Producer payment $0 Contingency $373,000 Cash Sweep 0.000% Env. Commodity$/kWh $0.000 Total Engineering and Construction Cost $1,347,000 Incentive duration, years 0 Subordinate Debt Development and Start-up Costs Principal $0 0.00% Other Incentive Payments Expires Inventory- Feedstock $0 Interest Rate 0.00% interest only Small Producer TaxCredit 0 n/a Inventory- Chemicals $0 Lender Fees $0 0.000% ITC / PTC TaxCredit $0.00 n/a Inventory- Spare Parts $0 Placement Fees $0 0.000% Start-up Costs $100 Amortization Period 10 years Plant Operating Rate Land $0 Site Development $218,000 EquityInvestment Month % Nameplate Building & Office Equipment $388,000 Total EquityAmount $526,550 25.65% 13 50.0% Insurance & Performance Bond $0 Placement Fees $0 0.000% 14 50.0% Rolling Stock & Shop Equipment $0 Common Equity $526,550 100.000% 15 100.0% Organizational Costs & Permits $100,000 Preferred Equity $0 0.000% 16 100.0% Capitalized Interest & Financing Costs $0 17 100.0% Working Capital/Risk Management $0 Grants 18 100.0% Total Development Costs $706,100 Amount $500,000 24.35% 19 100.0% 20 100.0% TOTAL USES $2,053,100 TOTAL SOURCES $2,053,100 21 100.0% 22 100.0% Accounts Payable, Receivable & Inventories Receivable Payable Inventories 23 100.0% (# Days) (# Days) (# Days) 24 100.0% Finished Products 14 0 Chemicals 0 0 Feedstock 10 30 Utilities 15 Appendix A - 2 Cityof Kotzebue - RDFBoiler Production Assumptions 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Annual Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Escalation Year: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Feedstock Inputs MSW Input (raw ton/year) 293 319 319 319 319 319 319 319 319 319 SecpondaryFeedstock Input (tons/yr) 0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 41.0 Feedstock Moisture Content (%) 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% 9.3% Blended Feedstock LHV(btu/lb) 6,580 6,580 6,580 6,580 6,580 6,580 6,580 6,580 6,580 6,580 Total Feedstock Usage (ton/yr) 293 360 360 360 360 360 360 360 360 360 Feedstock Price / Tipping Fee ($/ton) $0.00 $34.13 $34.81 $35.51 $36.22 $36.94 $37.68 $38.44 $39.21 $39.99 2.00% Production Outputs Avoided Disposal Cost Avoided disposal Yield (tons/ton waste) 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 Avoided Waste total (ton/year) 263 287 287 287 287 287 287 287 287 287 Cost of Disposal ($/ton) 102.00 104.04 106.12 108.24 110.41 112.62 114.87 117.17 119.51 121.90 2.00% Heat & Power Co-generation Efficiency(%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Heat Recovery(%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Raw Feedstock EnergyContent (MMBTU/yr) 3,852 4,742 4,742 4,742 4,742 4,742 4,742 4,742 4,742 4,742 ElectricityProduction (kWh/yr) 0 0 0 0 0 0 0 0 0 0 ElectricityAvailable for Sale (kWh/yr) 0 0 0 0 0 0 0 0 0 0 ElectricitySale Price ($/kWh) $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 2.00% Thermal EnergyProduction (MMBtu/yr) 3,071 3,351 3,351 3,351 3,351 3,351 3,351 3,351 3,351 3,351 Thermal EnergyAvailable for Sale (MMBtu/yr) 3,071 3,351 3,351 3,351 3,351 3,351 3,351 3,351 3,351 3,351 Thermal EnergySale Price ($/MMBtu) $45.0500 $46.1763 $47.3307 $48.5139 $49.7268 $50.9699 $52.2442 $53.5503 $54.8891 $56.2613 2.50% UtilityUsage Thermal EnergyRequired (BTU/raw ton feedstock) 0 0 0 0 0 0 0 0 0 0 Thermal EnergyGenerated (BTU/raw ton) 0 0 0 0 0 0 0 0 0 0 Makeup EnergyNeeded (BTU/raw ton) 0 0 0 0 0 0 0 0 0 0 Thermal EnergyPrice ($/MMBTU) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annual Thermal EnergyUse (MMBTU/yr) 0 0 0 0 0 0 0 0 0 0 ElectricityRequired (kWh/raw ton feedstock) 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 ElectricityGenerated (kWh/raw ton) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Makeup ElectricityNeeded (kWh/raw ton) 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 ElectricityPrice ($/kWh) 0.2400 0.2448 0.2497 0.2547 0.2598 0.2650 0.2703 0.2757 0.2812 0.2868 2.00% Annual ElectricityUse (kWh/year) 732 901 901 901 901 901 901 901 901 901 ElectricityDemand (MW) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Number of Employees 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Average Salary $49,500 $50,490 $51,500 $52,530 $53,580 $54,652 $55,745 $56,860 $57,997 $59,157 2.00% Maintenance Materials & Services (% of Capital Equipment Cost)1.500% 1.523% 1.545% 1.569% 1.592% 1.616% 1.640% 1.665% 1.690% 1.715% 1.50% PropertyTax& Insurance (% of Depreciated Property, Plant & Equipment)0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 3.00% Inflation for all other Administrative Expense Categories 2.00% Appendix A - 3 Cityof Kotzebue - RDFBoiler Proforma Balance Sheet Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0) Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations ASSETS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Current Assets: Cash & Cash Equivalents 0 69,014 135,650 206,276 280,110 357,236 437,739 521,710 609,239 700,420 795,348 Inventories Feedstock 0 0 1,054 1,075 1,097 1,119 1,141 1,164 1,187 1,211 1,235 Finished Product Inventory 0 0 0 0 0 0 0 0 0 0 0 Spare Parts 0 0 0 0 0 0 0 0 0 0 0 Total Inventories 0 0 1,054 1,075 1,097 1,119 1,141 1,164 1,187 1,211 1,235 Prepaid Expenses 0 0 0 0 0 0 0 0 0 0 0 Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 Total Current Assets 0 70,048 137,900 208,572 282,452 359,624 440,175 524,195 611,774 703,005 797,985 Land 0 0 0 0 0 0 0 0 0 0 0 Property, Plant & Equipment Property, Plant & Equipment, at cost 1,757,700 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 1,953,000 Less Accumulated Depreciation & Amortization 0 65,085 128,713 192,341 255,970 319,598 383,226 446,854 510,482 574,110 637,738 Net Property, Plant & Equipment 1,757,700 1,887,915 1,824,287 1,760,659 1,697,030 1,633,402 1,569,774 1,506,146 1,442,518 1,378,890 1,315,262 Capitalized Fees & Interest 9,439 14,569 13,112 11,655 10,199 8,742 7,285 5,828 4,371 2,914 1,457 Total Assets 1,767,139 1,972,532 1,975,299 1,980,886 1,989,681 2,001,768 2,017,234 2,036,169 2,058,662 2,084,809 2,114,704 LIABILITIES & EQUITIES Current Liabilities: Accounts Payable 0 8 321 327 334 341 347 354 361 369 376 Notes Payable 0 0 0 0 0 0 0 0 0 0 0 Current Maturities of Senior Debt (incl. sweeps) 0 23,883 24,485 25,103 25,737 26,386 27,052 27,735 28,435 29,152 0 Current Maturities of Working Capital 0 0 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 23,891 24,806 25,431 26,071 26,727 27,399 28,089 28,796 29,521 376 Senior Debt (excluding current maturities) 815,589 979,372 954,887 929,784 904,047 877,661 850,609 822,874 794,439 765,287 765,287 Working Capital (excluding current maturities) 0 0 0 0 0 0 0 0 0 0 0 Deferred Income Taxes 0 0 0 0 0 0 0 0 0 0 0 Total Liabilities 815,589 1,003,263 979,693 955,214 930,118 904,388 878,008 850,963 823,235 794,808 765,663 Capital Units & Equities Common Equity 526,550 526,550 526,550 526,550 526,550 526,550 526,550 526,550 526,550 526,550 526,550 Preferred Equity 0 0 0 0 0 0 0 0 0 0 0 Grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Distribution to Shareholders 0 0 0 0 0 0 0 0 0 0 0 Retained Earnings (75,000) (57,281) (30,944) (879) 33,013 70,830 112,676 158,656 208,877 263,451 322,490 Total Capital Shares & Equities 951,550 969,269 995,606 1,025,671 1,059,563 1,097,380 1,139,226 1,185,206 1,235,427 1,290,001 1,349,040 Total Liabilities & Equities 1,767,139 1,972,532 1,975,299 1,980,886 1,989,681 2,001,768 2,017,234 2,036,169 2,058,662 2,084,809 2,114,704 Appendix A - 4 Cityof Kotzebue - RDFBoiler Proforma Income Statement Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0)Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Avoided Disposal Cost 0 24,376 29,905 30,503 31,113 31,735 32,370 33,018 33,678 34,351 35,038 Heat 0 138,363 154,715 158,583 162,547 166,611 170,776 175,046 179,422 183,907 188,505 Power 0 0 0 0 0 0 0 0 0 0 0 Environmental Commodities / Incentives 0 0 0 0 0 0 0 0 0 0 0 Total Revenue 0 162,739 184,620 189,086 193,661 198,346 203,146 208,063 213,100 218,259 223,544 Production & Operating Expenses Feedstocks 0 0 12,300 12,546 12,797 13,053 13,314 13,580 13,852 14,129 14,411 Chemicals 0 0 0 0 0 0 0 0 0 0 0 Natural Gas 0 0 0 0 0 0 0 0 0 0 0 Electricity 0 176 221 225 229 234 239 244 248 253 258 Makeup Water 0 0 0 0 0 0 0 0 0 0 0 Wastewater Disposal 0 0 0 0 0 0 0 0 0 0 0 Direct Labor & Benefits 0 0 0 0 0 0 0 0 0 0 0 Total Production Costs 0 176 12,521 12,771 13,026 13,287 13,553 13,824 14,100 14,382 14,670 Gross Profit 0 162,563 172,099 176,315 180,634 185,060 189,594 194,240 199,000 203,877 208,874 Administrative & Operating Expenses Maintenance Materials & Services 0 4,813 5,329 5,409 5,490 5,572 5,656 5,741 5,827 5,914 6,003 Repairs & Maintenance - Wages & Benefits 0 0 0 0 0 0 0 0 0 0 0 Consulting, Management and Bank Fees 0 0 0 0 0 0 0 0 0 0 0 PropertyTaxes & Insurance 0 0 0 0 0 0 0 0 0 0 0 Salaries, Wages & Benefits 0 49,500 50,490 51,500 52,530 53,580 54,652 55,745 56,860 57,997 59,157 Engineering and Organizational Costs 75,000 0 0 0 0 0 0 0 0 0 0 Office/Lab Supplies & Expenses 0 0 0 0 0 0 0 0 0 0 0 Travel, Training & Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 Total Administrative & Operating Expenses 75,000 54,313 55,819 56,908 58,020 59,153 60,308 61,486 62,687 63,911 65,160 EBITDA (75,000) 108,251 116,281 119,406 122,615 125,907 129,286 132,754 136,313 139,965 143,714 Less: Interest - Operating Line of Credit 0 0 0 0 0 0 0 0 0 0 0 Interest - Senior Debt 0 25,446 24,859 24,256 23,638 23,005 22,355 21,689 21,007 20,307 19,589 Interest - Working Capital 0 0 0 0 0 0 0 0 0 0 0 Depreciation & Amortization 0 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 Pre-TaxIncome (75,000) 17,719 26,337 30,065 33,891 37,817 41,846 45,980 50,221 54,574 59,040 Current Income Taxes 0 0 0 0 0 0 0 0 0 0 0 Net Earnings (Loss) for the Year (75,000) 17,719 26,337 30,065 33,891 37,817 41,846 45,980 50,221 54,574 59,040 Pre-TaxReturn on Investment -4.8% 1.1% 1.7% 1.9% 2.2% 2.4% 2.7% 3.0% 3.2% 3.5% 3.8% 10-Year Average Annual Pre-TaxROI 2.6% Appendix A - 5 Cityof Kotzebue - RDFBoiler Proforma Statements of Cash Flows Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0) Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Cash provided by(used in) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Operating Activities Net Earnings (loss) (75,000) 17,719 26,337 30,065 33,891 37,817 41,846 45,980 50,221 54,574 59,040 Non cash charges to operations Depreciation & Amortization 0 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 Total cash provided by(used in) (75,000) 82,804 91,422 95,150 98,976 102,902 106,931 111,065 115,306 119,659 124,125 Changes in non-cash working capital balances Accounts Receivable 0 1,034 162 24 24 25 25 26 26 27 27 Inventories 0 0 1,054 21 22 22 22 23 23 24 24 Prepaid Expenses 0 0 0 0 0 0 0 0 0 0 0 Accounts Payable 0 (8) (313) (6) (7) (7) (7) (7) (7) (7) (7) Total changes in capital balances 0 1,026 903 39 39 40 41 42 43 43 44 Investing Activities Land Purchase 0 0 0 0 0 0 0 0 0 0 0 Fixed Asset Purchases 1,757,700 195,300 0 0 0 0 0 0 0 0 0 Capitalized Fees & Interest 9,439 5,130 0 0 0 0 0 0 0 0 0 Total Investing activities 1,767,139 200,430 0 0 0 0 0 0 0 0 0 Financing Activities Senior Debt Advances 815,589 210,961 0 0 0 0 0 0 0 0 0 Repayment of Senior Debt 0 (23,295) (23,883) (24,485) (25,103) (25,737) (26,386) (27,052) (27,735) (28,435) (29,152) Working Capital Advances 0 0 0 0 0 0 0 0 0 0 0 Repayment of Subordinate Debt 0 0 0 0 0 0 0 0 0 0 0 EquityInvestment 526,550 0 0 0 0 0 0 0 0 0 0 Grants 500,000 0 0 0 0 0 0 0 0 0 0 Cash Sweep for Debt Service 0 0 0 0 0 0 0 0 0 0 0 Distributions to Shareholders 0 0 0 0 0 0 0 0 0 0 0 Net Increase (Decrease) in Cash 0 69,014 66,636 70,627 73,834 77,126 80,504 83,971 87,529 91,181 94,928 Cash (Indebtedness), Beginning of Year 0 0 69,014 135,650 206,276 280,110 357,236 437,739 521,710 609,239 700,420 Cash (Bank Indebtedness), End of Year 0 69,014 135,650 206,276 280,110 357,236 437,739 521,710 609,239 700,420 795,348 20-Year IRR 1.8% Appendix A - 6 Cityof Kotzebue - RDFBoiler Debt Coverage Ratio 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations EBITDA 108,251 116,281 119,406 122,615 125,907 129,286 132,754 136,313 139,965 143,714 Taxes Paid 0 0 0 0 0 0 0 0 0 0 Distributions to Shareholders 0 0 0 0 0 0 0 0 0 0 Changes in non-cash working capital balances (1,026) (903) (39) (39) (40) (41) (42) (43) (43) (44) Investing Activities (Capital Expenditures) (200,430) 0 0 0 0 0 0 0 0 0 Senior Debt Advances 210,961 0 0 0 0 0 0 0 0 0 Working Capital Advances 0 0 0 0 0 0 0 0 0 0 Cash Available for Debt Service 117,755 115,377 119,368 122,575 125,867 129,245 132,712 136,270 139,922 143,670 Senior Debt P&I Payment 48,741 48,741 48,741 48,741 48,741 48,741 48,741 48,741 48,741 48,741 Suboridinate Debt P&I Payment 0 0 0 0 0 0 0 0 0 0 Debt Coverage Ratio (senior + subdebt) 2.42 2.37 2.45 2.51 2.58 2.65 2.72 2.80 2.87 2.95 10-year Average Debt Coverage Ratio 2.63 Note: the '1st Year Operations' consists of 0 months of construction and startup, plus 12 months of commercial operation Depreciation Schedules Depreciation 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Method (note1)Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Major Process equipment 20 year SLN 37,247 37,247 37,247 37,247 37,247 37,247 37,247 37,247 37,247 37,247 Minor Process Equipment 20 year SLN 18,780 18,780 18,780 18,780 18,780 18,780 18,780 18,780 18,780 18,780 Aux.30 year SLN 0 0 0 0 0 0 0 0 0 0 Vehicles 10 year SLN 0 0 0 0 0 0 0 0 0 0 Building 30 year SLN 9,053 9,053 9,053 9,053 9,053 9,053 9,053 9,053 9,053 9,053 Office equipment 5 year SLN 0 0 0 0 0 0 0 0 0 0 Start-up cost 20 year SLN 5 5 5 5 5 5 5 5 5 5 Annual capital expenditures (starting in year 2)10 year SLN 0 0 0 0 0 0 0 0 0 0 Total Depreciation 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 65,085 Note 1: Depreciation Method = DDB (Double Declining Balance) or SLN (Straight Line) Appendix B - 0 APPENDIX B – LIFE CYCLE COST MODEL PROFORMA MSW Gaifier Scenario Financial Projection Appendix B - 1 Cityof Kotzebue - MSW Gasifier Financial Assumptions Nameplate Plant Scale 1.5 MMBtu Operating Days Per Year 350 USEOFFUNDS: SOURCEOFFUNDS:Investment Activities Project Engineering & Construction Costs Senior Debt Income TaxRate 0.00% EPC Contract $2,584,000 Principal $3,697,575 75.00% Investment Interest 0.00% Deliveryand Installation $624,000 Interest Rate 2.50% fixed Operating Line Interest 0.00% Rail $0 Lender and Misc. Fees $0 0.000% Barge Unloading $0 Placement Fees $0 0.000% State Producer Payment Additional Feedstock Storage $0 Amortization Period 30 years Producer payment $0 Contingency $822,000 Cash Sweep 0.000% Env. Commodity$/kWh $0.000 Total Engineering and Construction Cost $4,030,000 Incentive duration, years 0 Subordinate Debt Development and Start-up Costs Principal $0 0.00% Other Incentive Payments Expires Inventory- Feedstock $0 Interest Rate 0.00% interest only Small Producer TaxCredit 0 n/a Inventory- Chemicals $0 Lender Fees $0 0.000% ITC / PTC TaxCredit $0.00 n/a Inventory- Spare Parts $0 Placement Fees $0 0.000% Start-up Costs $100 Amortization Period 10 years Plant Operating Rate Land $0 Site Development $437,000 EquityInvestment Month % Nameplate Building & Office Equipment $351,000 Total EquityAmount $732,525 14.86% 13 50.0% Insurance & Performance Bond $0 Placement Fees $0 0.000% 14 50.0% Rolling Stock & Shop Equipment $0 Common Equity $732,525 100.000% 15 100.0% Organizational Costs & Permits $112,000 Preferred Equity $0 0.000% 16 100.0% Capitalized Interest & Financing Costs $0 17 100.0% Working Capital/Risk Management $0 Grants 18 100.0% Total Development Costs $900,100 Amount $500,000 10.14% 19 100.0% 20 100.0% TOTAL USES $4,930,100 TOTAL SOURCES $4,930,100 21 100.0% 22 100.0% Accounts Payable, Receivable & Inventories Receivable Payable Inventories 23 100.0% (# Days) (# Days) (# Days) 24 100.0% Finished Products 14 0 Chemicals 15 0 Feedstock 10 30 Utilities 15 Appendix B - 2 Cityof Kotzebue - MSW Gasifier Production Assumptions 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Annual Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Escalation Year: 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Feedstock Inputs MSW Input (raw ton/year) 1,490 1,625 1,625 1,625 1,625 1,625 1,625 1,625 1,625 1,625 SecpondaryFeedstock Input (tons/yr) 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Feedstock Moisture Content (%) 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% Blended Feedstock LHV(btu/lb) 4,912 4,912 4,912 4,912 4,912 4,912 4,912 4,912 4,912 4,912 Total Feedstock Usage (ton/yr) 1,490 1,625 1,625 1,625 1,625 1,625 1,625 1,625 1,625 1,625 Feedstock Price / Tipping Fee ($/ton) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2.00% Production Outputs Avoided Disposal Cost Avoided disposal Yield (tons/ton waste) 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.90 Avoided Waste total (ton/year) 1,341 1,463 1,463 1,463 1,463 1,463 1,463 1,463 1,463 1,463 Cost of Disposal ($/ton) 102.00 104.04 106.12 108.24 110.41 112.62 114.87 117.17 119.51 121.90 2.00% Heat & Power Co-generation Efficiency(%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Heat Recovery(%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total Raw Feedstock EnergyContent (MMBTU/yr) 14,634 15,964 15,964 15,964 15,964 15,964 15,964 15,964 15,964 15,964 ElectricityProduction (kWh/yr) 0 0 0 0 0 0 0 0 0 0 ElectricityAvailable for Sale (kWh/yr) 0 0 0 0 0 0 0 0 0 0 ElectricitySale Price ($/kWh) $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 2.00% Thermal EnergyProduction (MMBtu/yr) 11,188 12,205 12,205 12,205 12,205 12,205 12,205 12,205 12,205 12,205 Thermal EnergyAvailable for Sale (MMBtu/yr) 11,188 12,205 12,205 12,205 12,205 12,205 12,205 12,205 12,205 12,205 Thermal EnergySale Price ($/MMBtu) $39.4200 $40.4055 $41.4156 $42.4510 $43.5123 $44.6001 $45.7151 $46.8580 $48.0294 $49.2302 2.50% UtilityUsage Thermal EnergyRequired (BTU/raw ton feedstock) 3 3 3 3 3 3 3 3 3 3 Thermal EnergyGenerated (BTU/raw ton) 0 0 0 0 0 0 0 0 0 0 Makeup EnergyNeeded (BTU/raw ton) 3 3 3 3 3 3 3 3 3 3 Thermal EnergyPrice ($/MMBTU) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Annual Thermal EnergyUse (MMBTU/yr) 0 0 0 0 0 0 0 0 0 0 ElectricityRequired (kWh/raw ton feedstock) 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 ElectricityGenerated (kWh/raw ton) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Makeup ElectricityNeeded (kWh/raw ton) 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 ElectricityPrice ($/kWh) 0.2400 0.2448 0.2497 0.2547 0.2598 0.2650 0.2703 0.2757 0.2812 0.2868 2.00% Annual ElectricityUse (kWh/year) 4,037 4,404 4,404 4,404 4,404 4,404 4,404 4,404 4,404 4,404 ElectricityDemand (MW) 0.000 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 0.001 Number of Employees 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Average Salary $47,000 $47,940 $48,899 $49,877 $50,874 $51,892 $52,930 $53,988 $55,068 $56,169 2.00% Maintenance Materials & Services (% of Capital Equipment Cost)1.500% 1.523% 1.545% 1.569% 1.592% 1.616% 1.640% 1.665% 1.690% 1.715% 1.50% PropertyTax& Insurance (% of Depreciated Property, Plant & Equipment)0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 0.000% 3.00% Inflation for all other Administrative Expense Categories 2.00% Appendix B - 3 Cityof Kotzebue - MSW Gasifier Proforma Balance Sheet Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0) Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations ASSETS 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Current Assets: Cash & Cash Equivalents 0 123,658 359,766 608,122 867,683 1,138,739 1,421,589 1,716,538 2,023,899 2,343,992 2,677,148 Inventories Feedstock 0 0 0 0 0 0 0 0 0 0 0 Finished Product Inventory 0 0 0 0 0 0 0 0 0 0 0 Spare Parts 0 0 0 0 0 0 0 0 0 0 0 Total Inventories 0 0 0 0 0 0 0 0 0 0 0 Prepaid Expenses 0 0 0 0 0 0 0 0 0 0 0 Other Current Assets 0 0 0 0 0 0 0 0 0 0 0 Total Current Assets 0 128,299 365,852 614,330 874,015 1,145,198 1,428,177 1,723,258 2,030,753 2,350,983 2,684,279 Land 0 0 0 0 0 0 0 0 0 0 0 Property, Plant & Equipment Property, Plant & Equipment, at cost 4,336,200 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 4,818,000 Less Accumulated Depreciation & Amortization 0 168,113 332,616 497,118 661,620 826,122 990,625 1,155,127 1,319,629 1,484,131 1,648,634 Net Property, Plant & Equipment 4,336,200 4,649,887 4,485,384 4,320,882 4,156,380 3,991,878 3,827,375 3,662,873 3,498,371 3,333,869 3,169,366 Capitalized Fees & Interest 23,358 36,111 32,500 28,889 25,278 21,667 18,055 14,444 10,833 7,222 3,611 Total Assets 4,359,558 4,814,296 4,883,737 4,964,101 5,055,672 5,158,742 5,273,608 5,400,575 5,539,957 5,692,074 5,857,256 LIABILITIES & EQUITIES Current Liabilities: Accounts Payable 0 44 46 47 48 49 50 51 52 53 54 Notes Payable 0 0 0 0 0 0 0 0 0 0 0 Current Maturities of Senior Debt (incl. sweeps) 0 86,024 88,195 90,421 92,702 95,042 97,440 99,899 102,420 105,005 0 Current Maturities of Working Capital 0 0 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 86,068 88,241 90,468 92,750 95,091 97,490 99,950 102,472 105,058 54 Senior Debt (excluding current maturities) 3,225,116 3,527,644 3,439,449 3,349,029 3,256,327 3,161,285 3,063,845 2,963,946 2,861,526 2,756,521 2,756,521 Working Capital (excluding current maturities) 0 0 0 0 0 0 0 0 0 0 0 Deferred Income Taxes 0 0 0 0 0 0 0 0 0 0 0 Total Liabilities 3,225,116 3,613,712 3,527,691 3,439,497 3,349,077 3,256,376 3,161,335 3,063,896 2,963,998 2,861,579 2,756,575 Capital Units & Equities Common Equity 732,525 732,525 732,525 732,525 732,525 732,525 732,525 732,525 732,525 732,525 732,525 Preferred Equity 0 0 0 0 0 0 0 0 0 0 0 Grants 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 Distribution to Shareholders 0 0 0 0 0 0 0 0 0 0 0 Retained Earnings (98,083) (31,941) 123,521 292,079 474,071 669,842 879,748 1,104,155 1,343,434 1,597,970 1,868,156 Total Capital Shares & Equities 1,134,442 1,200,584 1,356,046 1,524,604 1,706,596 1,902,367 2,112,273 2,336,680 2,575,959 2,830,495 3,100,681 Total Liabilities & Equities 4,359,558 4,814,296 4,883,737 4,964,101 5,055,672 5,158,742 5,273,608 5,400,575 5,539,957 5,692,074 5,857,256 Appendix B - 4 Cityof Kotzebue - MSW Gasifier Proforma Income Statement Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0)Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Avoided Disposal Cost 0 109,395 152,159 155,202 158,306 161,472 164,701 167,995 171,355 174,782 178,278 Heat 0 441,016 493,136 505,465 518,101 531,054 544,330 557,938 571,887 586,184 600,839 Power 0 0 0 0 0 0 0 0 0 0 0 Environmental Commodities / Incentives 0 0 0 0 0 0 0 0 0 0 0 Total Revenue 0 550,411 645,295 660,666 676,407 692,526 709,031 725,934 743,242 760,966 779,116 Production & Operating Expenses Feedstocks 0 0 0 0 0 0 0 0 0 0 0 Chemicals 0 0 0 0 0 0 0 0 0 0 0 Natural Gas 0 0 0 0 0 0 0 0 0 0 0 Electricity 0 969 1,078 1,100 1,122 1,144 1,167 1,190 1,214 1,238 1,263 Makeup Water 0 0 0 0 0 0 0 0 0 0 0 Wastewater Disposal 0 0 0 0 0 0 0 0 0 0 0 Direct Labor & Benefits 0 0 0 0 0 0 0 0 0 0 0 Total Production Costs 0 969 1,078 1,100 1,122 1,144 1,167 1,190 1,214 1,238 1,263 Gross Profit 0 549,442 644,217 659,567 675,285 691,381 707,864 724,743 742,028 759,728 777,853 Administrative & Operating Expenses Maintenance Materials & Services 0 35,530 39,341 39,932 40,530 41,138 41,756 42,382 43,018 43,663 44,318 Repairs & Maintenance - Wages & Benefits 0 0 0 0 0 0 0 0 0 0 0 Consulting, Management and Bank Fees 0 0 0 0 0 0 0 0 0 0 0 PropertyTaxes & Insurance 0 0 0 0 0 0 0 0 0 0 0 Salaries, Wages & Benefits 23,083 188,000 191,760 195,595 199,507 203,497 207,567 211,719 215,953 220,272 224,677 Engineering and Organizational Costs 75,000 0 0 0 0 0 0 0 0 0 0 Office/Lab Supplies & Expenses 0 0 0 0 0 0 0 0 0 0 0 Travel, Training & Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 Total Administrative & Operating Expenses 98,083 223,530 231,101 235,527 240,038 244,636 249,323 254,100 258,970 263,935 268,995 EBITDA (98,083) 325,912 413,115 424,040 435,248 446,746 458,542 470,643 483,057 495,793 508,858 Less: Interest - Operating Line of Credit 0 0 0 0 0 0 0 0 0 0 0 Interest - Senior Debt 0 91,657 89,539 87,369 85,143 82,861 80,522 78,123 75,664 73,143 70,559 Interest - Working Capital 0 0 0 0 0 0 0 0 0 0 0 Depreciation & Amortization 0 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 Pre-TaxIncome (98,083) 66,142 155,462 168,558 181,991 195,771 209,907 224,406 239,280 254,536 270,186 Current Income Taxes 0 0 0 0 0 0 0 0 0 0 0 Net Earnings (Loss) for the Year (98,083) 66,142 155,462 168,558 181,991 195,771 209,907 224,406 239,280 254,536 270,186 Pre-TaxReturn on Investment -2.2% 1.5% 3.5% 3.8% 4.1% 4.4% 4.7% 5.1% 5.4% 5.7% 6.1% 10-Year Average Annual Pre-TaxROI 4.4% Appendix B - 5 Cityof Kotzebue - MSW Gasifier Proforma Statements of Cash Flows Construction 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year (Year 0) Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Cash provided by(used in) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Operating Activities Net Earnings (loss) (98,083) 66,142 155,462 168,558 181,991 195,771 209,907 224,406 239,280 254,536 270,186 Non cash charges to operations Depreciation & Amortization 0 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 Total cash provided by(used in) (98,083) 234,255 323,576 336,671 350,105 363,885 378,020 392,520 407,393 422,650 438,299 Changes in non-cash working capital balances Accounts Receivable 0 4,641 1,445 122 124 127 129 132 134 137 140 Inventories 0 0 0 0 0 0 0 0 0 0 0 Prepaid Expenses 0 0 0 0 0 0 0 0 0 0 0 Accounts Payable 0 (44) (2) (1) (1) (1) (1) (1) (1) (1) (1) Total changes in capital balances 0 4,597 1,443 121 123 126 128 131 133 136 139 Investing Activities Land Purchase 0 0 0 0 0 0 0 0 0 0 0 Fixed Asset Purchases 4,336,200 481,800 0 0 0 0 0 0 0 0 0 Capitalized Fees & Interest 23,358 12,753 0 0 0 0 0 0 0 0 0 Total Investing activities 4,359,558 494,553 0 0 0 0 0 0 0 0 0 Financing Activities Senior Debt Advances 3,225,116 472,459 0 0 0 0 0 0 0 0 0 Repayment of Senior Debt 0 (83,907) (86,024) (88,195) (90,421) (92,702) (95,042) (97,440) (99,899) (102,420) (105,005) Working Capital Advances 0 0 0 0 0 0 0 0 0 0 0 Repayment of Subordinate Debt 0 0 0 0 0 0 0 0 0 0 0 EquityInvestment 732,525 0 0 0 0 0 0 0 0 0 0 Grants 500,000 0 0 0 0 0 0 0 0 0 0 Cash Sweep for Debt Service 0 0 0 0 0 0 0 0 0 0 0 Distributions to Shareholders 0 0 0 0 0 0 0 0 0 0 0 Net Increase (Decrease) in Cash 0 123,658 236,109 248,356 259,561 271,057 282,850 294,949 307,361 320,094 333,156 Cash (Indebtedness), Beginning of Year 0 0 123,658 359,766 608,122 867,683 1,138,739 1,421,589 1,716,538 2,023,899 2,343,992 Cash (Bank Indebtedness), End of Year 0 123,658 359,766 608,122 867,683 1,138,739 1,421,589 1,716,538 2,023,899 2,343,992 2,677,148 20-Year IRR 3.3% Appendix B - 6 Cityof Kotzebue - MSW Gasifier Debt Coverage Ratio 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations EBITDA 325,912 413,115 424,040 435,248 446,746 458,542 470,643 483,057 495,793 508,858 Taxes Paid 0 0 0 0 0 0 0 0 0 0 Distributions to Shareholders 0 0 0 0 0 0 0 0 0 0 Changes in non-cash working capital balances (4,597) (1,443) (121) (123) (126) (128) (131) (133) (136) (139) Investing Activities (Capital Expenditures) (494,553) 0 0 0 0 0 0 0 0 0 Senior Debt Advances 472,459 0 0 0 0 0 0 0 0 0 Working Capital Advances 0 0 0 0 0 0 0 0 0 0 Cash Available for Debt Service 299,221 411,672 423,919 435,124 446,620 458,413 470,512 482,924 495,657 508,719 Senior Debt P&I Payment 175,563 175,563 175,563 175,563 175,563 175,563 175,563 175,563 175,563 175,563 Suboridinate Debt P&I Payment 0 0 0 0 0 0 0 0 0 0 Debt Coverage Ratio (senior + subdebt) 1.70 2.34 2.41 2.48 2.54 2.61 2.68 2.75 2.82 2.90 10-year Average Debt Coverage Ratio 2.52 Note: the '1st Year Operations' consists of 0 months of construction and startup, plus 12 months of commercial operation Depreciation Schedules Depreciation 1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year Method (note1)Operations Operations Operations Operations Operations Operations Operations Operations Operations Operations Major Process equipment 20 year SLN 106,315 106,315 106,315 106,315 106,315 106,315 106,315 106,315 106,315 106,315 Minor Process Equipment 20 year SLN 53,604 53,604 53,604 53,604 53,604 53,604 53,604 53,604 53,604 53,604 Aux.30 year SLN 0 0 0 0 0 0 0 0 0 0 Vehicles 10 year SLN 0 0 0 0 0 0 0 0 0 0 Building 30 year SLN 8,190 8,190 8,190 8,190 8,190 8,190 8,190 8,190 8,190 8,190 Office equipment 5 year SLN 0 0 0 0 0 0 0 0 0 0 Start-up cost 20 year SLN 5 5 5 5 5 5 5 5 5 5 Annual capital expenditures (starting in year 2)10 year SLN 0 0 0 0 0 0 0 0 0 0 Total Depreciation 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 168,113 Note 1: Depreciation Method = DDB (Double Declining Balance) or SLN (Straight Line)