HomeMy WebLinkAboutAEA 14-006 Haines Borough Grant Application Pellet Heating PRenewable En ergy Fund Round VII
Grant Application -Heat Projects
Application Fo rma and Instructions
This instruction page and the following grant application constitutes the Grant
Application Fonn for Round VII 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 fonn (see RFA section 1.5). An electronic version of the
Request for Applications (RFA) and both application fonns is available online at:
www .akenergyauthodty.om/REFund7 .html.
o If you need techn ical assistance filling out this application, please contact Shawn
Calfa, the Alaska Energy Authority Grant Administrator at (907) n1-3031 or at
scalfa@aidea.om .
• If you are applying for grants for more than one project, provide separate
application fonns for each project.
• Multiple phases for the same project may be submitted as one application.
o If you are applying for grant funding for more than one phase of a project, provide
milestones and grant 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).
o If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit infonnation sufficient to demonstrate that
the preceding phases are completed and funding for an advanced phase is
warranted.
• If you have additional infonnation 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.
o 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 fonn to
provide sufficient space for the infonnation, or attach additional sheets if needed.
RE MINDER:
• 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.
o All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
o 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 infonnation is to be kept confidential the applicant must:
o Request the infonnation be kept confidential .
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Renewable Energy Fund Round VII
Grant Application -Heat Projects
o Clearty identify the infonnation that is the trade secret or proprietary in
their application.
o Receive concurrence from the Authority that the infonnation will be kept
confidential. If the Authority detennines 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
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Grant Application -Heat Projects
SECTION 1 -APPLICANT INFORMATION
Name
Haines Borough
Type of Entity: Municipality Fiscal Year End: June 30
Tax ID #470888708 Tax Status: For ..profit Non-profit ....X
Government ( checkone)
Date of last financial statement audit 9/12
Mailing Address Physical Address
P.O. Box 1209 Haines, Alaska 99827 1 03 Third Avenue South
Telephone (907) Fax Email dculbeck@halnes.ak.us
766-2231
1.1 APPLICANT POINT OF CONTACT I GRANTS MANAGER
Name Title
Darsle Culbeck Executive Aaaistant to the Borough
Manager
Mailing Address
P.O. Box 1209 Haines, Alaska 99827
Telephone Fax Email
907-768-2231 ex dculbeck@halnes.ak.us
60
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
AS42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
X A local government, or
A governmental entity (which includes tribal councils and housing authorities);
Yes 1.2.2 Attached to this application is formal approval and endorsement for the
project by the applicanfs board of directors, executive management, or
other governing authority. If the applicant is a collaborative grouping, a
formal approval from each participanfs governing authority is necessary.
(Indicate Yes or No in the box)
Yes 1.2.3 As an applicant, we have administrative and financial management
systems and follow procurement standards that comply with the standards
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Grant Application -Heat Projects
set forth in the grant agreement (Section 3 of the RFA).
Yes 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
btm;/lwww.a~energ~utho!lW:Q[Q/v~eQ/Grant-TemRiate.odf. (Any
exceptions should be dearly noted and submitted with the application.)
Yea 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.
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.
Haines Borough Municipal Buildings Biomass Project
2.2 Project Location -This project will be located in the Haines Borough in specific
municipal buildings. The Haines School, The Public Safety Building, The Chi/kat
Center for Performing Arts, The Haines Borough Ubrary, The Wastewater
Treatment Plant, The Water Plant, The old city Shop, The new city Shop, The
Haines School Vocational Building, The Sheldon Museum
2.2.1 Location of Project-Latitude and longitude, street addrwaa, or community
name.
59 degrees, 14 minutes and 12.24 seconds N, 135 degrees, 26 minutes and 42.26
secondsW
2.2.2 Community benefiting -Name(s) of the community or communities that will
be the beneficiaries of the project. The Haines Borough
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind to Heat X Biomass or Biofuels
Hydro to Heat Solar Thermal
Heat Recovery from Existing Heat Pumps
Sources
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Coostrucdon COD!ID!don
I. Reconnaissance Ill. Final Design and Permitting
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Grant Application -Heat Projects
II. Feasibility and Conceptual X IV. Construction and Commissioning
Design
2.4 PROJECT DESCRIPTlON
Provide a brief one paragraph description of the proposed heat project.
This project will install biomass pellet boilers in ten borough buildings; The Haines
School and Pool, The Chi/kat Center, The Sewer Treatment Plant, The Water
Treatment Plant, The Vocational Education Building, The Ubrary, The old City Shop,
The new City Shop, The Public Safety Building and The Sheldon Museum.
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.)
This project will significantly reduce community reliance on non renewable fossil fuels. It
will reduce municipal heating costs, lead to cleaner air locally, contribute to a net loss of
carbon emissions, and cause greater energy independence and security. This project
will also be a model for other communities considering the switch to biomass. The
project is in line with the US Forest Service regional strategy of 30% conversion of
heating oil to biomass in the next decade. This also aligns with the recommendations
made in the Alaska Energy Authorities Southeast Integrated Resource Management
Plan, which recommended a significant conversion to biomass heating.
This project will displace an estimated 80,000 gallons of heating oil. It will save the
Haines Borough over $4,000,000 during the lifespan of the boilers (20, years).
Converting to biomass will also reduce a significant oil spill liability for the Borough. In
the past 12 months the Haines Borough has spent over $50,000 to remediate oil-
contaminated soil.
Another benefit of this project is that the Haines Borough could become an anchor
customer of the proposed Chilkoot Indian Association (CIA) pellet mill. CIA has
completed a wood supply feasibility study, (attached) a wood pellet mill feasibility study
(attached), and recently received a federal grant for design. This mill would employee 3
to 6 people and create an estimated 4 to 8 indirect jobs. The money spent on pellets will
cycle through the local economy numerous times before heading out. A recent study by
Civic Economics htto:/fwww.locartirst.om/images/stories/SLC-Final-lmpact-Study-
Series.pdf found that money spent locally circulated 4 times more than money spent at
a chain store. This would be the case if the Haines Borough spent it annual heating
budget of $330,000 on local pellets verses the non local heating oil supplier.
The switch to biomass for the Haines Borough is a large transformational shift away
from a reliance on fossil fuels. We recognize that some of our buildings score better
than others, the Haines School has B/C ratio of 3.82 versus the Ubrary with a B/C ratio
1.51, and we have chosen to apply for the whole package (all ten buildings) with an
overall 8/C ratio of 1.97. We have considered high grading our best scores and
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Grant Application -Heat Projects
achieving a high 8/C ratio, but feel that the goal of the AEA renewable energy program
is to make a real shift in policy and decision-making. An almost complete Borough shift
to biomass will have a great impact on the overall move to renewable energy in the
region and across the state.
We understand that funding for these projects is limited and if awarded partial funding,
we would convert the buildings with the highest 8/C ratios.
2.6 PROJECT BUDGET OVERVIEW
Brieny discuss the amount of funds needed, the anticipated sources of funds, and the
nature and source of other contributions to the project.
Mechanical engineers, Murray and Associates with Pacific Rim Mechanical have
perfonned a detailed estimate on the cost of procuring and installing pellet boilers in
these buildings. (attached)
The cost to decommission the old systems, procure and install new boilers and pellet
storage, create a delivery system, provide administrative oversight and fulfill AEA
reporting requirements is calculated at $1,354,892. The Haines Borough will match
10% or $135,489 and would like to use the $41,000 already spent on the installation of
the pellet boiler in the Haines Senior Center as part of the match.
This grant request Ia for a total amount of $1 ,237,403
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your projecrs total costs and benefits below.
Grant Coats
(Summary of funds tequested)
2.7.1 Grant Funds Requested In this application $1,237,403
2. 7.2 Cash match to be provided $88,448
2.7.3 Total In-kind match to be provided (sum of linea $41000
below)
Biomass or Blofuel inventory on hand $
Energy efficiency Improvement& to buildings $41,000
to be heated (within past 5 years or
committed prior to proposed project
completion)
Other ln..l(lnd match to be provided $10,000 Admin
2.7.4 Other grant funds to be provided $
2.7.5 Other grant applications not yet approved $
2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $$1,374,892
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Grant Application -Heat Projects
Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get
to a fully operational project)
2.7.7 Total Project Cost Summary from Cost $$1,374,892
Worksheet, Section 4.4.4, including estimates
through construction.
2. 7.8 Additional Perfonnance Monitoring Equipment $
not covered by the project but required for the
Grant Only applicable to construction phase
projects.
2. 7.9 Estimated Direct Financial Benefit (Savings) $4.168.842
2.7.10 Other Public Benefit If you can calculate the $ 30.000 Carbon
benefit in terms of dollars please provide that reduction net savings •
number here and explain how you calculated that
number in Section 5 below.
• It is estimated that replacing 80,000 gallons of heating oil with 695 tons of pellets
will produce a net reduction of between 986 (high case) and 179 (low case) tons of
carbon. According to the federal govemmenrs estimates for the social costs of carbon
as published by the National Bureau of Economic Research, we will save between $62
(high case) and $12 (low case) per ton of carbon reduction. Using these figures the
high/high case savings is $61,132 annually and the low/low case savings is $2148
annually. We will use the average of $30,000 annually for reduced social costs of
Carbon.
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Grant Applicat ion -Heat Projects
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 appr1C8nt
expects project management assistance from AEA or another government entity, state
that in this section.
Darsie Culbeck will be the project manager. He is the Executive Assistant to the Haines
Borough Manger and was responsible for the pellet boiler installation In the Haines
Senior Center. He was responsible for procuring the funds, choosing the boiler,
choosing the installer, sourcing the pellets, and general project oversight He was also
responsible for bringing in Professor Andy Soria to do emissions tests, the Haines High
School power systems engineering class to monitor pellet moisture and fuel usage. He
is a member of the Wood 2 Energy working group through JEDC. He has managed
numerous grants and projects for the Haines Borough. He can be contacted at
dculbeck@haines .ak .us or 907-766-2231 His resume is attached.
References: Mark Earnest, Haines Borough Manager. Carlos Jimenez, Haines Borough
Public Facilities Director. Both can be reached at 907-766-2231.
If awarded the grant, Mr. Culbeck will oversee bid documents, RFP development and
award, construction, testing, commissioning and reporting.
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points 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.
PI ease fill ut ~ 0 orm prov ided b I eow. ou maya dd dditi a ona rows as needed
Start End
Milestones Tasks Date Date
Identify possible boiler Publish RFP for boiler suppliers
suppliers 6-1-14 7-15-14
Choose boiler supplier Award contract for boilers 8-1 -14
Identify system installers Publish RFP for boiler
installation 6-1-14 7-15-14
Choose Installers Award contract for installation 8-1-14
Install boiler systems Install boilers system 9-1-14 9-1-15
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G tA r ti H tP . ts ran ppaca on-ea roJec ENRJ( AUrHOAnY
Commissioning . Testing and fire up 10-1514
Reporting Quarterly reports 1•a
2015
3.3 Project Resources
Describe the personnel, contradors, accounting or bookkeeping personnel or finns,
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 projed. Desaibe 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, contradors, and suppliers as an attachment to
your application.
The Haines Borough administration and maintenance staff are familiar with pellet
systems as evidenced by the successful installation of a wood pellet boiler in the Haines
Senior Center in November 2012. Haines is also fortunate to have local technicians who
can install and maintain pellet boilers.
Carlos Jimenez is the Haines Borough Facilities Diredor. He is responsible for all the
proposed buildings.
Ed Bryant is the maintenance supervisor and in will be in charge of boiler operations
and maintenance.
Shawn Obrien is the owner of Pacific Rim Mechanical and a Haines based dealer for
Okofen Boilers.
Matt Bray is the sales rep for Okofen Boilers.
Scott Hansen is a projed manager for the Chilkoot Indian Association (CIA) and is the
point person for their proposed pellet plant CIA also supplies pellets locally.
Shawn Blumenshine is a projed manager with Sealaska who is currenUy supplying
pellets to Haines.
Doug Murray of Murray and Associates is a mechanical engineer helping with design
and estimates of costs.
Bob Deering: Biomass Roadmap Coordinator, Tongass National Forest, USDA Forest
Service (on Special Assignment from the U.S. Coast Guard)
Daniel J. Parrent; Biomass and Forest Stewardship Coordinator, R10 USDA Forest
Service, State & Private Forestry
Jlla Stuart is the Haines Borough CFO. She has ten years of experience with the
financial aspects of grant reporting and administration.
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AI Roskom is the owner of Alaska Pellet Supply and has provided quotes for pellet
supply.
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority infonned of the
status. Please provide an alternative contact person and their contact information.
Project Manager, Darsie Culbeck will provide quarterly reports detailing progress made,
expenses to date, fuel usage and expected milestones completed during the next
quarter.
An alternate contact will be Mark Earnest 907-766-2231 or current Haines Borough
Manager.
3.5 Project Risk
Discuss potential problems and how you would address them.
Pellet Supply and delivery is the biggest challenge to this project. Alaska Pellet supply
has guaranteed pellets at $325 in bulk containers for large volume and $349 for smaller
volume. The Haines Borough has also received quoted from Tongass Forest
Enterprises, Dimok limber and Chilkoot Indian Association.
Another risk involves the supply chain and always having a reseNe supply of pellets.
This grant proposes to install storage silos at all ten buildings and have an additional
100 ton storage in five 20' shipping containers. These containers can also be used for
shipping pellets from Seattle if a local supply is unavailable. The Haines Borough will
use a mobile pellet blower to delivery pellets to each silo.
In the long term, the Haines Borough will support the Chilkoot Indian Association's
efforts to build a pellet plant in Haines, Alaska. If this pellet mill is built, the Chilkoot
Indian Association has said they will provide pellets at cost plus depreciation. This cost
is estimated at $300 per ton.
Another risk is that a pellet boiler breaks down. To provide back up, each building will
be fitted with external hook ups for an oil boiler on trailer. This will allow the building to
have heat while repairs are made.
SECTION 4-PROJECT DESCRIPTION AND TASKS
• The level of Information will vary accotrllng fo phaae(s) of the project you
propose fo underlske with grant funds.
• If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit infonnation sufficient to demonstrate that the
preceding phases are satisfied and funding for an advanced phase is wal18nted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
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Discuss the pros and cons of your proposed energy resource vs. other alternatives that
may be available for 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.
There is an unlimited supply of pellets in British Columbia, Canada and in Seattle, WA. ·
There is also a sustainable amount of biomass in the Haines State Forest. A local wood
pellet supply feasibility report is attached. There are also substantial biomass resources
in the Yukon Territory, Canada.
There are numerous advantages associated with the use of wood pellets over the current
fuel system (heating oil) (1) wood pellets are currently less expensive per BTU (2) wood
pellet prices are expected to rise at 2% to 3% per year versus 4% to 8% with heating oil
(3) heating with wood pellets will release net 92% less carbon into the atmosphere (4)
particulate emissions are less with wood pellet (5) money spent on local wood pellets will
stay in the community longer than money spent on oil (6) a wood pellet industry creates
local jobs. In the big picture, Haines switching to pellets gives incentive to CIA to build a
pellet mill. A regional pellet mill will spur installation of biomass systems throughout
Southeast Alaska and create jobs.
The Haines Borough has funds left in our AEA Wood Heat Feasibility grant and is issuing
an RFP for final design services to be completed by January 1, 2013
4.1.2 For Biomass Projects 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?
A wood pellet mill located in Haines would source most of its biomass from the Haines
State Forest. It's also possible that some biomass would also come from beetle kill
spruce in the Yukon Territory, Canada. The Chilkoot Indian Association wood availability
study concludes that the Haines State Forest can sustain the production of at least 2500
tons of pellets annually.
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 a e efficien and of neration.
Current systems are;
Haines School: Two oil boilers at half life
Museum: One oil boiler at half life
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Grant Application • Heat Projects
Waste Water Treatment Plant Three forced air furnaces one new and two very old
Library: One with % life remaining
Water Treatment Plant One forced air furnace at the end of its life
Chilkat Center for the Arts: Two new boilers
Old City Shop: One forced air furnace at the end of its life
New City Shop: One oil boiler with % life remaining
Public Safety Building: One new boiler
Vocational Education Building: One boiler at the end of its life.
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.
The ten buildings proposed for this project use an estimated 80,000 gallons of heating oil
annually. There is no anticipated problem with supply of heating oil in the short tenn.
However global economics and competition for resources could drive the price up over
time. There is also a risk of supply disruption to the long supply chain. Fuel for Haines,
comes from the state of Washington and an 800 mile marine journey. There are many
possible scenarios that could cause a disruption in supply.
The impact Haines could face with a switch to biomass is probably more likely to be one
of an •Avoided Impact". Using a local resource for heat means that global economics and
supply disruptions have less of an impact on the Haines Borough.
4.2.3 Existing Heating Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on
energy customers.
The majority of homes in Haines are heated with oil or cordwood. Some people also use
electric heat, but this is causing the local utility to augment their hydro power with diesel
generated power during low water times. This causes the price per kilowatt to rise.
The manager of the local fuel company has stated that a Borough move towards pellets
could impact one fuel company employee. However, the fuel switch on the part of the
Borough is not expected to immediately influence the cost of heating fuel. In the long run,
a Borough move to pellets, coupled with the availability of low cost pellets in Haines,
could cause a local and regional market shift.
A Borough wide move towards pellets may have great impact on people examining
biomass energy in the region and statewide. The Haines Borough has proven the
technology and the cost savings with the pellet boiler in the Haines Senior Center.
If the Haines Borough installs wood boilers as proposed in this grant, we will become a
case study for the entire state. We will be able to provide data on money saved, fuel
used, diesel displaces, and how the technology and delivery systems work. The goal is to
show that this is an appropriate technology for small municipalities. Success may spur
interest in renewable energy sources in general.
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Another impact of this move will be an increased demand for pellets that should help
consumers and new suppliers enter the market. We hope to encourage economic
development in Haines by providing a ready market for locally developed wood pellets. If
a pellet mill is built, numerous jobs will be created. Low cost pellets may provide
opportunities for business development.
The main impact of this move is significant savings to the taxpayer and a low cost
renewable heating source into the future.
4.3 Proposed System
Include infonnation necessary to describe the system you are intending to develop and
address potential system design, land ownership, pennits, energy efficiency and
environmental issues.
4.3.1 System Design
Provide the following infonnation for the proposed renewable energy system:
• A description of renewable energy technology specific to project location
o Optimum installed capacity
• Anticipated capacity factor
• Anticipated annual generation
• Anticipated barriers
• Basic integration concept
• Delivery methods
• Energy efficiency measures (building envelope)
Please see attached system design document ·MAPc HNS Borough Bldgs. Heating
Plant Conversion 9-20-12• from Murray and Associates. This outlines a design for each
Borough buildings.
Please see attached PDF documents ·He 1• through •HB-1 o·. These are system costs
estimates provided by Pacific Rim Mechanical. We will be using ACT, Okofen or similar
boilers. Both ACT and Okofen boilers are currently in use in Southeast Alaska and have
proven track records.
The only anticipated barrier is supply and creating a delivery system. We are confident in
the technology and the ability of staff to manage the systems.
The Haines Borough will fill silos from bulk storage using a gasoline powered portable
blower. The Haines Borough will store approximately 100 tons of pellets in 5 shipping
containers as a reserve against disruption of supply. There are several options for pellet
delivery to Haines. Alaska Pellet Supply has quoted a price of $325 per ton delivery in
bulk to Haines in 20' containers. The Haines Borough is planning on purchasing these
containers for storage and they may also be shipped back and forth to Seattle. The
Haines Borough has also received quotes from Tongass Forest Enterprises for delivery
via blower truck. This is a back up option if needed. The Haines Borough has also
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received quotes from Dimok timber and a guarantee of •at cosf pellets from the Chilkoot
Indian Associat ion.
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 obtain harvest contracts and
access issues.
The Haines Borough owns all the land and buildings in question and anticipates no issues
with land ownership.
4.3.3 Perm i ts
Provide the following information as it may relate to permitting and how you intend to
address outstanding permit issues.
• List of applicable permits
• Anticipated permitting timeline
• Identify and discussion of potential barriers
No permits are anticipated for this project.
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
No environmental issues are expected. The Haines Borough will give consideration to the
visual, and aesthetics aspects of pellet storage.
4.4 Proposed New System Costs and Projected Reven ues
(Total Estimated Costs and Projected Revenues)
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 : Applicants records or
analysis, industry standards, consultant or manufacturer's estimates.
4.4.1 Project Devel opment Coat
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Grant Application -Heat Projects
Provide detailed project cost information based on your current knowledge and
understanding of the project. Cost information should include the following:
o Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds -loans, capital contributions, in-kind
o Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Pro"ected develo ent cost of osed renewable en s tern
Please see attached spread sheet •AEA Grant Details•. This document shows costs per
building, B/C ratios, fuel usage, etc. Costs are estimates from Pacific Rim Mechanical
4.4.2 Project Operating and Maintenance Coats
Include anticipated O&M costs for 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 reporting impacts of projects on
the communities they serve.)
In our experience with the Okofen pellet boiler in the Haines Senior Center, the O&M
costs are the same for pellets as they are with oil boilers. We anticipate no additional
expense for all the buildings with Okofen or similar boilers. These smaller buildings are
budgeted at $2,500 per building per year. The large buildings, the Haines School and
The Chilkat Center, will require larger ACT or similar boilers. We estimate the costs of
O&M at these buildings to be slightly higher than status quo and have budgeted these
costs into our spreadsheets.
The Haines Borough will cover all O&M expenses with general funds as we do now. The
attached Haines Borough Assembly resolution shows support for this project.
4.4.3 Heat Purchase/Sale
The heat purchase/sale information should include the following:
• Identification of potential energy buyer(s)/custorner(s)
• Potential heat purchase/sales price -at a minimum indicate a price range
• Proposed rate of return from grant-funded project
The Haines Borough is the customer.
The Chilkoot Indian Association (CIA) has indicated they will sell pellets "at cosr plus
depreciation if they are successful in building a pellet mill. This price is estimated at $300
to $325 per ton.
Alaska Pellet Supply will deliver pellets to Haines for $325 per ton in large volume and
$349 in smaller volume.
Tongass Forest Enterprises has quoted an estimated delivered price at $350 per ton in a
delivery truck.
AEA 201~ Grant Application Page 16of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Pro· ects
Dimok Timber has estimated a delivered price for $300 per ton if they build their proposed
pellet mill in Haines Junction, YT.
All quotes are attached.
The project has a simple payback of 9.9 years.
4A.4 Project Cost Wortcaheet
Complete the cost worbheet fonn which provides summary information that will be
considered in evaluating the pro_m
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 Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. There is an unlimited supply of biomass from
British Columbia and a sustainable supply in
the Haines State Forest See attached CIA
wood supply study
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
Existing Heating Energy Generation and Usage
a} Basic configuration
i. Number of generators/boilers/other 14 ----------------------------ii. Rated capacity of varies
generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of
generators/boilers/other
Oil boilers
From 1 to 25 years
Estimated 70% average
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor Estimated $25,000
ii. Annual O&M cost for non-
labor
----------------------------------
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 unknown
[kWh]
AEA 2014-006 Grant Application Page 18of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
ii. Fuel usage
Diesel
[gaq
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
I
-----------------------------------------vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] All boilers combined 79,438 gallons
ii. Electricity [kWh]
iii. Propane (gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry
tons]
vi. Other
Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity an estimated 700 tons of biomass will displace
(Wind, Hydro, Biomass, other) an estimated 80,000 gallons of heating oil
[kW or MMBtulhr]
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii.Heat [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 700 tons of pellets annually
tons, dry tons]
iv.Other
AEA 2014-006 Grant Application Page 17 of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
I Project Cost
a) Total capital cost of new system $1,374,892
b) Development cost
c) Annual O&M cost of new system $37,000
d) Annual fuel cost $278,000
Project Benefits
a) Amount of fuel displaced for
i. Electricity
ii. Heat 80,000 gallons of diesel
iii.
Transportation
b) Current price of displaced fuel
c) Other economic benefits
d) Alaska public benefits
Heat Purchase/Sales Price
a) Price for heat purchase/sale
Project Analysis
a) Basic Economic Analysis
$326,000
Catalyst for local pellet mill, financial savings due
minimizing fuel spill risks.
Catalyst for regional shift to biomass
A range of $300 to $360 per ton was calculated for
each building. See attached spreadsheets
Project benefit/cost Overall 8/C ratio is 1.97
ratio
I.
Payback (years) 9.9 years
--~---------------------------------
AEA 2014-008 Grant Application Page 18of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
4.4.5 Building Efficiency
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: Haines School and Pool
• Type or primary usage of the building: Education of K-12 students and swimming
pool
• Location: Haines, Alaska
• Hours of operation: School is open from 7-5 during school year. Pool hours vary
but average 40 hours per week
• Single structure or multiple units: single
• Total square footage: 94,612
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 37,598 gallons per year
• Average number of occupants: 300
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No. Building was new in 2007
Estimated annual heating fuel savings in year one. $59,000
• Building name: Vocational Educational
• Type or primary usage of the building: Education of K-12 students
• Location: Haines, Alaska
• Hours of operation: School is open from 7-5 during school year.
• Single structure or multiple units: single
• Total square footage: 5,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3173 gallons per year
• Average number of occupants: 250
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $4,900
AEA 2014406 Grant Application Page18of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
• Building name: Museum
• Type or primary usage of the building: Education
• Location: Haines, Alaska
• Hours of operation: Varies, open more in the summer
• Single structure or multiple units: single
• Total square footage: 9,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3179 gallons per year
• Average number of occupants: 25 per day
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $4,900
• Building name: Sewer Treatment Plant
Type or primary usage of the building: waste water treatment facility
• Location: Haines, Alaska
• Hours of operation: Varies, 24 hours per day
• Single structure or multiple units: single
• Total square footage: 9,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 7615 gallons per year
• Average number of occupants: 3 per day
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $11,700
• Building name: Library
• Type or primary usage of the building: Education
• Location: Haines, Alaska
• Hours of operation: Varies, 60 hours per week
• Single structure or multiple units: single
AEA 2014-008 Grant Application Page20of32 71212013
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Grant Application-Hea t Projects
• Total square footage: 6,500
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3241 gallons per year
• Average number of occupants: 125 per day
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $4,900
• Building name: Water Treabnent Pl ant
• Type or primary usage of the building: Drinking water treatment
• Location: Haines, Alaska
• Hours of operation: Varies, 24 hours per day
• Single structure or multiple units: single
• Total square footage: 4,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 4038 gallons per year
• Average number of occupants: 1 per day
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $6,000
• Building name: Chllkat Center
• Type or primary usage of the building: Performing arts, dance studio, radio
station, community events,
• Location: Haines, Alaska
• Hours of operation: Varies, 60 hours per week
• Single structure or multiple units: single
• Total square footage: 12,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 9992 gallons per year
• Average number of occupants: 50 per day
AEA 2014-008 Grant Application Page21 of32 71212013
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Grant Applic ation -Heat Projects
o Has an energy audit been perfonned? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thennal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one . $15 ,000
• Building name: Old City Shop
o Type or primary usage of the build ing: Borough maintenance facility
o Location: Haines, Alaska
• Hours of operation: Varies, 50 hours per week
Single structure or multiple units: single
• Total square footage: 5,300
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3797 gallons per year
• Average number of occupants : 3 per day
• Has an energy audit been perfonned? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thennal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $5,500
• Building name: New City Sh op
• Type or primary usage of the building: Borough maintenance facility
• Location: Haines, Alaska
• Hours of operation: Varies, 50 hours per week
• Single structure or multiple units: single
• Total square footage: 6,000
o Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3094 gallons per year
• Average number of occupants: 6 per day
• Has an energy audit been perfonned? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thennal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annua l heating fuel savings in year one. $4 ,500
• Building name: Pu blic Safety Build ing
AEA 2014-008 Grant Application Page22of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
o Type or primary usage of the building: Police and Fire, Public Works office
Location: Haines, Alaska
• Hours of operation: 24 hours per day
• Single structure or multiple units: single
o Total square footage: 13,000
• Electrical consumption per year. Unknown
• Heating oil/fuel consumption per year: 3712 gallons per year
• Average number of occupants: 15 per day
• Has an energy audit been performed? When? Please provide a copy of the
energy audit, if applicable. No
• Have building thermal energy efficiency upgrades been completed? In some of
the buildings. No.
Estimated annual heating fuel savings in year one. $5,300
• If the building is not yet constructed please provide evidence of the value of
planned building envelope efficiency investments beyond typical construction
practices. Include anticipated savings associated with efficiency investments if
available.
SECTION 5-PROJECT BENEFIT
Explain the economic and public benellts of your project. Include direct coat
savings, and how the people of Alaska will benefit from lhe pmject.
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«:anomic public benefits to Alaskans over the lifetime of the
project
Overall this project will save the Haines Borough over $4,000,000 during the 20-year
lifespan. This is a great public benefit. This project will also help the Chilkoot Indian
Association move forward with their proposed pellet mill. The pellet mill combined with a
Haines Borough switch to biomass will create direct and indirect jobs, spur economic
development, and move Haines closer to energy independence. Other benefits include:
AEA 2014-006 Grant Application Page23of32 71212013
Renewable Energy Fund Round VII
Grant Application • Heat Pro· acts
a significant reduction in net carbon emissions, a reduction in onsite heating oil tanks
and the associated costs with spills/leaks.
Another significant benefit is that this project could move the whole region towards
using locally produced biomass.
This project will displace over 1,500,000 gallons of heating oil over the 20-year life span.
This heating oil costs for the lifespan are estimated at over $13,800,000. Recent
invoices are attached
SECTION 6-SUSTAINABIUTY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
• Proposed business structure(s) and concepts that may be considered.
• How you propose to finance the maintenance and operations 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
The Haines Borough currently budgets for heating oil and will have no challenge with
paying for pellets and the costs of operations.
It is estimated that the cost of operating pellet boilers is very similar to the cost of
operating oil boilers and any additional O&M costs will be offset by fuel cost savings. We
are estimating additional O&M costs at $12,000 per year. The backup system will be a
portable oil fired boiler that can be externally hooked up to any of the buildings. We will
use one of the existing oil boilers for this system.
The Haines Borough will diligently track fuel costs, fuel usage, and any other
requirements of AEA and issue quarterly reports.
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.
The Haines Borough has received a grant from AEA and JEDC to conduct a wood heat
AEA 201~ Grant Application Page24of32 71212013
Renewabl e Energy Fund Round VII
Grant Application -Heat Projects
feasibility study. There have been two versions of this study to date.
The Haines Borough has invested in a pellet boiler and storage system in the Haines
Senior Center, which has been in operation for 10 months. This boiler has operated well
and an analysis of the project shows significant cost savings. This boiler system was
purchased and installed with municipal general funds. The Haines Borough would like to
use this installation as part of the Borough match.
The biomass project manager has attended numerous wood heat meetings, held a mini
biomass summit in Haines and is working with the Chilkoot Indian Association to help
support their efforts at building a pellet mill.
The current wood feasibility grant has a design component. It is expected that system
design will be completed for all of the buildings by the end of 2013.
If awarded the grant, installation of the first boilers is scheduled for fall2014.
SECTION 8-LOCAL SUPPORT AND OPPOSITI ON
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, 2013.
The Haines Borough 2025 Comprehensive Plan adopted in September 2012 offers
support for this grant application and a move toward biomass heat.
Page 34 of the Action Summary states under Objective 15L "S upport actions to reduce
power, heating, and fuel coats. n
Strategy 5 states ·support feasibility studies and developments of small scale renewable
power or heating prqiects that power or heat individual buildings, or a series of
connected buildings or an area through district heat: such as local wind. biomass ....... •
Please see attached document •aligns with Haines Comp Plan•
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.
Provide a narrative summary regarding funding sources and your financial commitment
to the project
The Haines Borough is seeking$ $1,237,403 in funding from the Alaska Energy
Authority.
The Haines Borough will match 10% and would like the $41,000 installation of a pellet
boiler in the Haines Senior Center as part of the match.
AEA 2014-008 Grant Application Page25of32 71212013
Renewabl e En ergy Fund Round VII
Grant Appli cati on -Heat Projects
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.
Our reporting will mainly focus on how many tons of pellets are being burned and
comparing that to the same amount of heating oil. Invoices will quantify pellet use
during the year combined with silo and truck volumes. Some boilers may also have
meters that measure fuel usage. We will comply with any AEA metering requirements.
Applications MUST include a separate wor1<sheet for each project phase that was
identified in section 2.3.2 of this application, (1. Reconnaissance, II. Feasibility and
Conceptual Design, Ill. 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-n1-3031 or
by emailing the Grant Administrator, Shawn Calfs, at scalfa@aidea.om.
The project milestones dates below are an estimate for the first building. The Ten
building construction project may take 12 months to complete and will likely be done in
stages. Final design documents, a successful grant award, and installation proposals
will determine in what order we proceed with construction.
The budget numbers in the milestone tables are for the whole project.
We are not currently aware of the AEA BTU metering requirements for Construction
grants and have no estimates on costs for this asped. However, if it is a requirement for
monitoring and reporting, then the Haines Borough will allocate the funds necessary. It
is hoped that these funds can be used as part of our match.
(List milestones based
on phase and type of
project. See Milestone
list below. •
Design and feasibility
Antlclpat
eel
Compleli
on Data
RE -Fund
Grant
Funds
12-31-13 Current
rant
Granl8e
llatl:ldn
8
FunciS
Current
match
AEA 2014-008 Grant Application Page28of32
Source of
Cash $30Kor
less
71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
Bid Documents 6-1-14 $900 $100 completed
Vendor selected and 8-1-14 $1800 $200 award in place
Decommission old 9-1-14 $48,000 $12000 systems
Construction 9-15-14 1,156,402 128,489
Integration and testing 10-1-14 4500 500
Commissioning 11-1-14 18000 $2000
8. Operation reporting
1st
quarter $8000 $2000
2015
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
TOTALS $ $
Budget Categories:
Direct Labor & Benefits $ $
Travel & Per Diem $ $
Equipment $ $
Materials & Supplies $ $
Contractual Services $ $
Construction Services $ $
Other $ $
TOTALS $ $
AEA 2014-006 Grant Application Page27of32
From
$10k $1000 Admin
Match
From
$10k $2000 Admin
Match
cash $60,000
Cash/in
kind, 1,284,892 ad min
match
From 10k $5,000 ad min
cash $20,000
From 10K $10,000 ad min
$
$
$
$
$
$
$
$
$
$
137,489 $1,374 892
$
$
$
$
$
$
$
$
7/212013
Renewable Energy F~nd Round VII
Grant Application -Heat Projects
~t~~r] '~ ;1,. ~;?~~· I ~
~\ ~~ ,"'J 1 ~. ~~~
~~ ~ I ~ -;}
1 :~~· I'~ RE-Fund
leetone or. Tulf ed Grant
~
Grantlle
llatchin
Complell Funds ~ I
on Data I ~ Funds
·~· .~ ' ~ A
J• 1;.-•'.t.· -~~, 'f -
(List milestones based
on phase and type of
project. See Milestone
list below.)_
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
TOTALS $ $
Budget Categories:
Dired Labor & Benefits * $ $
Travel & Per Diem * $ $
Equipment * $ $
Materials & Supplies * $ $
Contradual Services * $ $
Construction Services * $ $
Other * $ $
TOTALS * $ $
Source of
llldl:hing II
~ Funds:
Caahlln-
ldndFede TOTALS ....
GnudaiOt
her Stale
Gnudlll()t, ·~
her
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
* If awarded the grant the Haines Borough will complete a budget amendment after
awarding the contrads for boiler installation. This amendment will provide exad
numbers for Budget Categories above.
(
AEA 2014-006 Grant Application Page28of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
~ '/,
~~ 'j ~~: ;~ Anticipat RE-Fund Granlae
Milestone or Tak eel Grant Mall:bin
Completl Funds g
'1:~~.; .. on Data Funds
i l-~· ~ it~~~; ·~ .... -.t~-J:: ~ ·~il-c'
(List milestones based
on phase and type of
project. See Milestone
list below. )
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
$ $
TOTALS $ $
Budget Categories:
Direct Labor & Benefits $ $
Travel & Per Diem $ $
Equipment $ $
Materials & Supplies $ $
Contractual Services $ $
Construction Services $ $
Other $ $
TOTALS $ $
AEA 2014-008 Grant Application Page29of32
Soun:e ofl
lllltclllng
F . .
Caeh/ln ..
ldndiF8de ifOTALS 1'111
GmntiiOt
herS1ate
GrantiiiOt fJ})
her I•
'.rll. "
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
I SECTION 10-AUTHORIZED SIGNERS FORM
Community/Grantee Name:
Haines Borough
Regular Election is held:
1st Tuesday of October
Authorized Grant Signer(s):
Printed Name Title
Date:
September 2~. 2013
Term Signature
Mark Earnest Haines Borough NIA ~~~ Manager
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term
Mark Earnest Borough Manager N/A
Grantee Contact lnfonnatlon:
Signature
Mailing Address: P.O. Box 1209, HainesAK 99827
Phone Number: (907) 766-2231
Fax Number: (907) 766-2716
E-mail Address: meamest@haines.ak.us
Federal Tax 10 #: #470888706
Please submit an updated form whenever there Is a change to the above
Information.
AEA 201~ Grant AppllcatJon Paga30of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
SECTION 11 -ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPUCAnON:
A. Contact lnfonnation, resumes of Applicant's Project Manager, key staff,
partners, consultants, and suppliers per application fonn Section 3.1 and
3.4. Applicants are asked to provide resumes submtttad with applications
in separate electronic documents If the Individuals do not want their
resumes posted to the project web sl1a.
B. Letters or resolutions demonstrating local support per application fonn
Section 8.
C. For heat projects only: Most recent Invoice demonstrating the cost of
heating fuel for the bulldlng(s) Impacted by the project
D. Governing Body Resolution or other fonnal action taken by the applicant's
governing body or management per RFA Section 1.4 that
-Commits the organization to provide the matching resources for project
at the match amounts Indicated In the application.
-Authorizes the Individual who signs the application has the authority to
commit the organization to the obligations under the grant
-Provides as point of contact to represent the applicant for purposes of
this application.
-Certifies the applicant Is In compliance with applicable federal, state,
and local, laws including existing credit and federal tax obligations.
E. One paper copy and one electronic version of the entire application on CD
or other electronic media, per RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant Is
truthful and correct, and that the applicant Is In compliance with, and will
continue to comply with, all federal and state laws Including existing credit and
federal tax obligations and that they can Indeed commit the entity to these
obligations.
Print Mark Earnest
Name
Signature
AU. 2014-008 Grant Application Page31 of32 71212013
Renewable Energy Fund Round VII
Grant Application -Heat Projects
Title Borough Manager
Date tA{~ "1/JJ> \ ~
I
AEA 2014-008 Grant Application Page32of32 71212013
2012 Heating
Oil usage Tons
Building (gallons) pellets
Haines School 37,593.80 319
Museum: 3179.6 27
Sewer Treatment Plant: 7615 65
Library: 3241.7 28
Water Treatment Plant: 4038 35
Chilkat Center for the Arts: 9992.6 85
Old City Shop 3797.7 33
New City Shop 3094.8 27
Public Safety Building 3712.1 32
Vocational Education Building: 3173 27
Totals 79,438.30 678
Blower system
Five 20' shipping containers
1 0 year Admin for management and reporting
Portable oil boiler for backup
Total system costs
1 0% Borough match
Total Grant Request
costs with
contingency,
Hard System admin,
costs managment
$358,000 $398,825
$49,000 $57,513
$175,000 $195,113
$76,000 $86,538
$72,000 $82,238
$170,000 $189,738
$56,000 $65,038
$45,000 $53,213
$73,000 $83,313
$47,000 $53,363
$1,121,000 $1,264,892
$60,000
$20,000
$10,000
$20,000
$1,374,892
-$137,489
$1,237,403
b/c ratio
$300 pellets Annual Maint
3.82 $10,500
2.29 $2,500
2.44 $6,500
1.52 $2,500
1.99 $2,500
2.18 $2,500
2.35 $2,500
2.33 $2,500
1.81 $2,500
2.37 $2,500
1.97 $37,000
Boiler Boiler
Boiler Replacem Replacme
replacement ent in 10 nt 15
now
$50,000
$25,000
$25,000
years
$120,000
$30,000
years
$35,000
$35,000
HAINES BOROUGH, ALASKA
RESOWTION No. 13-09-495 Adopted
A RESOLUnON OF THE HAINES BOROUGH ASSEMBLY SUPPORnNG
APPLICAnON FOR A DESIGN AND CONSTRUCTION GRANT THROUGH THE
ALASKA ENERGY AUTHORITY FOR INSTALLING WOOD PELLET BOILERS
IN BOROUGH FACILITIES.
WHEREAS, the Haines Borough places a high priority on redudng Its use of fossil fuels; and
WHEREAS, the Haines Borough is committed to reducing airborne carbon emissions; and
WHEREAS, the Haines Borough Is interested in renewable energy sources that make
economic sense; and
WHEREAS, wood pellets boilers produce less airborne carbon than heating oil; and
WHEREAS, the use of wood pellet boilers will save the Borough money over their life cycle;
and
WHEREAS, multiple borough facilities are In need of new boilers; and
WHEREAS, the AEA is accepting Round VII applications for grants from the Renewable
Energy Fund and will make project recommendations to the Legislature for FY2015 funding;
and
WHEREAS, Round VII grant funds will enable the Haines Borough to Install Wood Pellet
Boilers In multiple Borough Fadlltles,
NOW THEREFORE BE IT RESOLVED that the Haines Borough Assembly supports the
application for funding for design and construction of wood pellet boiler systems In borough
facilities and authorizes the borough manager to sign all grant application documents.
ADOPTED BY A DULY CONSTITUTED QUORUM OF THE HAINES BOROUGH ASSEMBLY THIS
lOth DAY OF SEPTEMBER, 2013.
ATTEST:
Project: All buildings combined
Status Quo Pellet Low Pellet Medium Pellet High
Capitol Cost 0 $1,374,892 $1 ,553,628 $1,553,628
Oil usage -20 years (gal} 1,580,000 0 0 0
Oil Prlce(2014} $4 .11 $4 .11 $4.11 $4.11
Pellet usage -20 years (tons} N/A 13,560 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons} N/A N/A 678 678
Chip Price N/A N/A #REF! #REF !
Toto/ fuel cost -20 years $13,805,043 $5 ,035 ,444 $5,455,064 $6,042,533
Fuel cost savings -20 years} 0 $8,769,599 $8,349,978 $7,762,510
Simple payback (years} NA 9 .9 12.8 15 .9
Cumulative costs (20 years} $14,515,043 $7,150,336 $7,748,692 $8,336,161
NPV $4,636,842 $4,156,663 $3,727,388
Benefit/Cost Ratio 1.97 1.25
Project: Chilkat Center
Status Quo Pellet Low Pellet Medium Pellet High
Cop/to/ Cost 0 $189,738 $189,738 $189,738
Oil usage -20 years (go/) 199,852 0 0 0
Oil Price(Z014) $4.11 $4.11 $4.11 $4.11
Pellet usage -ZO years (tons) N/A 1,700 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -ZO years (tons) N/A N/A 85 85
Chip Price N/A N/A #REF! #REF!
Toto/ fuel cost-ZO years $1,746,181 $631,287 $683,894 $757,545
Fuel cost savings -ZO years) 0 $1,114,893 $1,062,286 $988,636
Simple payback (years) NA 10.6 12.1 15 .0
Cumulative costs {20 years) $1,796,181 $871,025 $923,632 $997,282
NPV $575,991 $537,549 $483,732
Benefit/Cost Ratio 2.18 1.72
Project: Library
Status Quo Pellet Low Pellet Medium Pellet High
Capital Cast 0 $86,538 $86,538 $86,538
Oil usage -20 years (gal} 64,820 0 0 0
Oil Price{2014} $4.11 $4.11 $4 .11 $4.11
Pellet usage -20 years (tans} N/A 560 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tans} N/A N/A 28 28
Chip Price N/A N/A #REF! #REF!
Total fuel cost -20 yeors $566,356 $207,953 $225,283 $249,544
Fuel cost savings -20 years} 0 $358,403 $341,073 $316,812
Simple payback (years} NA 15.3 17.5 22.0
Cumulative costs {20 years} $616,356 $344,491 $361,820 $386 ,082
NPV $160,204 $147,5 41 $129,8 13
Benefit/Cost Ratio 1.52 1.25
Project: Museum
Status Quo Pellet Low Pellet Medium Pellet High
Capital Cast 0 $57,513 $57,513 $57,513
Oil usage -20 years (gal} 63,592 0 0 0
Oil Prlce{2014} $4.11 $4.11 $4.11 $4.11
Pellet usage -20 years (tons} N/A 540 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons} N/A N/A 27 27
Chip Price N/A N/A #REF! #REF!
Total fuel cost-20 years $555,627 $200,527 $217,237 $240,632
Fuel cost savings -20 years} 0 $355,100 $338,390 $314,995
Simple payback (years} NA 10.1 11 .5 14.3
Cumulative costs (20 years} $605,627 $308,039 $324,750 $348,144
NPV $186,309 $174,098 $157,003
Benefit/Cost Ratio 2.29 1.90
Project: New City Shop
Status Quo Pellet Low Pellet Medium Pellet High
Capital Cast 0 $53,213 $53,213 $53 ,213
Oil usage-20 years (gal) 61,896 0 0 0
Oil Price{2014} $4 .11 $4 .11 $4 .11 $4.11
Pellet usage -20 years (tans} N/A 540 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -ZO years (tons} N/A N/A 27 27
Chip Price N/A N/A #REF ! #R EF!
Total fuel cost -ZO years $540,808 $2 00,527 $217,237 $240 ,632
Fuel cost savings -ZO years} 0 $34 0,282 $3 23,571 $300,176
Simple payback (years} NA 10.0 11.5 14 .5
Cumulative costs (20 years) $642,408 $303,739 $3 20 ,450 $343,844
NPV $230,222 $218,012 $2 00,917
Benefit/Cost Ratio 2.33 1.9 1
Project: Sewer Treatment Plant
Status Quo Pellet Low Pellet Medium Pellet High
Capitol Cost 0 $189,738 $189,738 $189,738
Oil usage -20 years (gal) 199,852 0 0 0
Oil Price{2014) $4.11 $4 .11 $4.11 $4 .11
Pellet usage -20 years (tons) N/A 1,300 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons) N/A N/A 65 65
Chip Price N/A N/A #REF ! #REF!
Total fuel cost -20 years $1,746,181 $482,749 $522 ,978 $579,299
Fuel cost savings -20 years) 0 $1,263,432 $1 ,223,202 $1,166,882
Simple payback (years) NA 7 .9 8.5 9 .5
Cumulative costs (20 years) $1,796,181 $802,487 $842 ,716 $899,036
NPV $624,938 $595,542 $554,387
Benefit/Cost Ratio 2.44 2.10
Project: Vocational Education BLDG
Status Quo Pellet Low Pellet Medium Pellet High
Capitol Cost 0 $55,363 $55,363 $55,363
Oil usage -20 years (go/} 63,460 0 0 0
Oil Prlce(2014} $4.11 $4.11 $4 .11 $4.11
Pellet usage -20 years (tons} N/A 540 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons} N/A N/A 27 27
Chip Price N/A N/A #REF ! #REF !
Toto/ fuel cost-20 years $554,473 $200,527 $217,237 $240,632
Fuel cost savings -20 years} 0 $353 ,947 $337,236 $313,842
Simple payback (years} NA 9 .8 11 .1 13.8
Cumulative costs (20 years} $604,473 $305,889 $322 ,600 $345,994
NPV $187,590 $175,379 $158,284
Benefit/Cost Ratio 2.37 1.96
Project: Water Treatment Plant
Status Quo Pellet Low Pellet Medium Pellet High
Capital Cost 0 $82 ,238 $82,238 $82,238
Oil usage -20 years (gal} 80,760 0 0 0
Oil Price(2014} $4.11 $4.11 $4.11 $4.11
Pellet usage -20 years (tons} N/A 700 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage-20 years (tons} N/A N/A 35 35
Chip Price N/A N/A #REF ! #REF !
Total fuel cost-20 years $705,630 $259,942 $281,604 $311 ,930
Fuel cost savings -20 years} 0 $445,688 $424,026 $393,700
Simple payback (years} NA 11 .7 13.5 16 .9
Cumulative costs (20 years} $755,630 $392,179 $413,841 $444,168
NPV $223,818 $207,989 $185,829
Benefit/Cost Ratio 1.99 1.60
Project: Haines School
Status Quo Pellet Low Pellet Medium Pellet High
Cop/to/ Cost 0 $398,825 $398,825 $398,825
Oil usoge -20 yeors (go/} 751,960 0 0 0
011 Prlce(20l4} $4 .11 $4 .11 $4 .11 $4 .11
Pellet usoge -20 yeors (tons} N/A 6,373 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usoge -ZO yeors (tons} N/A N/A 319 319
Chip Price N/A N/A #REF ! #REF !
Toto/ fuel cost-zo yeors $6,570,152 $2,366,414 $2,563,616 $2,839,697
Fuel cost savings -20 yeors} 0 $4,203,737 $4,006,536 $3,730,455
Simple poybock (yeors} NA 5.9 6.7 8 .3
Cumulative costs (20 yeors} $6,790,152 $2 ,975,2 39 $3 ,172,441 $3,448,522
NPV $2 ,485,800 $2,34 1,702 $2,139,963
Benefit/Cost Rotlo 3.82 2.94
Project: Old City Shop
Status Quo Pellet low Pellet Medium Pellet High
Capital Cost 0 $65,038 $65,038 $65,038
Oil usage -20 years (gal} 75,954 0 0 0
Oil Price(20l4} $4.11 $4.11 $4 .11 $4 .11
Pellet usage -20 years (tons} N/A 660 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons} N/A N/A 33 33
Chip Price N/A N/A #REF ! #REF !
Total fuel cost -20 years $663,638 $245 ,088 $265,512 $294,106
Fuel cost savings -20 years) 0 $418 ,550 $3 98,126 $369,533
Simple payback (years} NA 9.9 11.4 14 .3
Cumulative costs (20 years} $713,638 $360,125 $380,549 $409,143
NPV $221 ,998 $207,074 $186.180
Benefit/Cost Ratio 2.35 1.90
Project: Public Safety BLDG
Status Quo Pellet Low Pellet Medium Pellet High
Capital Cast 0 $83,313 $83,313 $83,313
Oil usage -20 years (gal} 74,240 0 0 0
Oil Price(2014} $4.11 $4.11 $4.11 $4 .11
Pellet usage -20 years (tons} N/A 640 N/A N/A
Pellet Price N/A $300 N/A N/A
Chip usage -20 years (tons} N/A N/A 32 32
Chip Price N/A N/A #REF! #REF!
Tatalfuel cost -20 years $648,662 $237,661 $257,466 $285,193
Fuel cost savings -20 years} 0 $411 ,00 1 $391,196 $363,469
Simple payback (years} NA 12 .8 14 .7 18 .4
Cumulative costs (10 years} $698,662 $370,974 $390,779 $418,506
NPV $199,204 $184,732 $164,471
Benefit/Cost Ratio 1.8 1 1.48
October 13, 2013
Co11trnct I# 101313-1
Haines Borough
P.O. Box 1209
Haines, Alaska
lWALINGA
" ...
T -·ENGINEERED
Jt[_ TRANSPORTATION
... EQUIPMENT
Phone: 907-766-2231 ext. 60
Fax:
Cell:
E-mail: dculbeck@haines.ak
Attention: Darsie Culbeck (Executive Assistant to the Manager)
We are pleased to quote the following:
Model:
Capacity:
Dimensions (approx.)
SPECIFICATIONS:
Frame:
Motor:
Fuel tank:
Wallnga Inc.
R.R.I5,
5662 Hwy 8 North
Guelph, ON N1H 8J2
Ph: 888-WALINGA
722-1128
Fax: 519-824-5851
3510-30G Agri-Vac (Gas)
500 -900 bushels/hour
Height -73"
Width-35"
Length -78"
Weight-1100 lbs.
I piece formed steel with 3 heavy-duty pneumatic tires/one on
heavy-duty swivel, and forklift pockets
30 horsepower Kohler Industrial gasoline-powered engine with
electric start and battery
Bracket and holder for 5 gal. plastic tank (tank is included)
leadership In Englneeflld Transportation Equipment Since 1954
Box
70rAve.NE
Carman, Man•oba
Canada ROO OJO
Ph: 204-745-2951
Fax: 204-745-6309
Inc.
POBox849
220 Frontage Rd.
Davidson, Saskatchewan
canada SOG 1AO
Ph: 306-567-3031
Fax: 306-587-3039
WallngaUSA
1190 Elecltlc:Ave.
'Naytand, Michigan
49348USA
Ph: 800-468-1197
Fax: 618-877-3474
USA Inc.
679 St.NW
Sioux Center, Iowa
51250USA
Ph: 800-846-5689
Fax: 712-
Check us out at www.wallnga.com
Blower:
Airlock:
Drh•e:
Receiver:
Muffler:
Finish:
SAFEGUARDS:
STANDARD
ACCESSORIES:
1 -36-24330-5
1 -36-26344-5
I -38-03737-5
1 -38-21899-5
Model 510 Walinga positive displacement extra-chrome hardened
commercial type air pump, maximum volume to 1,100 CFM.
121 0-4A cast iron shell, precision machined, drop-through;
8 vane steel rotor with neoprene rubber tips, direct drive; shear-
pin; belt/chain driven; 4'' outlet w/ DF4 coupling.
V -type 2 groove sheaves and belts on blower, single belt to idler
shaft; chain drive direct to airlock; shear pin safety on airlock
drive
I 8" dia. x 36" high one-piece steel tank with safety choke to
blower intake. 4" inlet w/ DF4 coupling
Heavy-duty discharge silencer mounted under main fi"Bme
Walinga Agri-Vac green with yellow accent decals
Choke mechanism in receiver tank to protect blower
Appropriate guards, operation and warning decals.
4" x 12 rubber hose 45 deg. elbow w/DF4 & DM4 couplings
4" x 12' galvanized flex hose w/DF4 & DM4 couplings
4" x 34" nozzle
4" cleanup nozzle with sweep
PRICE (F.O.B. Wayland, Ml) $20,000.00
Discount: CS 1.000.00)
Total: $ 19,000.00
DELIVERY:
TERMS:
FREIGHT:
In stock
Balance due on delivery
All taxes extra if applicable
All prices quoted in US fimds
Quote valid for 30 days
Delivery to Haines, Alaska
TOTAL PRICE OF (1) MACIUNE:
To be determined
$ 19,000.00 +freight
2
PIPING FOR ONE HOPPER BIN: (sec attached worksheet) $ 1,717.18
Discount: ($ 86.36)
Total: $ 1,640.81
OPTIONAL ACCESSORIES:
Ounptlty Pnrt II
1-36-14639-5
1-36-26344-5
I-38-27154-5
1-51-20440-4
1-36-27133-5
t-36-28885-5
1-89-00392-2
1-38-00397-5
1-38-36781-5
1-94-09185-5
I -94-05 182-5
2-30-13084-6
1-38-43219-5
Dnsr!pt!on
4" x 12' rubber hose w/DM4 & DF4 cplg.
4" x 12' galvanized steel flex w/DM4 & DF4 cplg.
4" x 19" plastic discharge cyclone w/ DM4 cplg.
4" x 90 deg. x 36" clr t I gauge primed and painted elbow
4" x 20' aluminum pipe w/DF4 & DM4
4" x I 0' aluminum pipe w/DF4 & DM4
4" x 20' x .072" aluminum pipe (price per foot)
DM4 coupling for tube/screw
DF4 coupling for tube/screw
stainless steel wingbolts (2 needed per DF4 cplg)
W' self-tapping coupling screws
4" x 3 bolt compression coupling
4"-3" long tapered reducer with DM4 & KF3 cplg.
Price
425.22
356.51
855.00
221.25
416.93
306.28
8.45
31.16
56.08
4.82
.08
24.66
(intake & discharge use) 203.98
1-38-38433-5 Reducer, steel-4" to 3" (no couplings) 71.73
t-36-40505-5 3" x 12' rubber static-guard hose with KM3 & KF3 288.51
1-36-15194-5 3" rubber hose static-guard hose (no ends) (per ft.) 11.37
1-38-13998-5 KM3 coupling w/ hose shank 14.90
1-38-13999-5 KF3 coupling w/hose shank 22.71
1-38-80120-6 3" plastic seed discharge cyclone with handle 250.00
1-38-37815-5 3" x 37" alum. straight nozzle with KM3 158.58
I-38-37825-5 3" x 30" alum nozzle with alum. sweep & KM3 289.69
(NOTE: Adclitiollal freight chargu will apply for shipping opllo11al acceuorles if not shipped with the mrll)
NOTE: I) Unit has I year Walinga warranty
Purchase Order II Date:
The undersigned Purchaser orders the above equipment from Walinga Inc.
Ordered by:
Signed
Trusting this to your satisfaction, we thank you for the opportunity of quoting and look forward
to your much valued business, Sincerely I /1, . hi ./t~l~C
Salesman: ~anager:J.Pelerl(l~~ _ .. j, u 3 v
I -. ... ..
:::
W A -..
-. -----_.
--...
--~--
--~:....c. --• .,-
-• .._.. .l =-4 --. ~ :-J< . ·-.,._
---~-
The 3510 AGRI·VAC. equipped with a WALINGA 1510 blower, can
move up to 900 bulhr (23 tonneslhr). Weighing leu than 1400 lbs.
(635 kg), It can be used In the tightest corners to perform tr11ufer,
cleanup or loading operations. The 3510 moves grain on a cushion of
air whkh minimizes grain or seed damage. This Is Important to
maintain grain and seed quaUty. The 3510 gMieledrlc model Is
mounted on a formed stee~ three wheeled cart,
with fork·llft pockets making It very simple to move
Into the smallest corner of your storage erea.
Available In 30 hp gas, 1Cii15120 hp electric. or
with a 3 point hitch, It Is the Ideal unit for
someone who needs a versatile and portable
grain handling unit.
CLEAN UP
• Portable
• Efficient
• Versatile
SPECIPICATIONS1
))I U l (·.lnlrt•l
Head Office:
938 Olqerty Ctes.
Fergua ON. Cll1llda
N1M2W7
l8t(518)787~
Fax: (618) 787-8210
Michigan:
11110 Elec:llto lc¥e.
w.,llnt.MI.
USA48348
"AAl (100) .... 1187
Fax (818) 877-3474
BLOWER/AIRLOCK
• 510 positive
displacement WALINGA
blower
• 12•x1o• (31x2& em)
Drop·Thru Airlock
• Combination belt/chain
drive
OPTIONS
• Stalnle11 steel hose1
• :J• (75 mm) rubber
suction hose
• Discharge cyclone
• Remote shut off
(gas model only)
ACaSSORIES
No11le:
• 4• Suction Noazle
• 4• (100 mm) with
cleanup head
Hotel:
• one 4• x 11'
(100 mm x :J.es m)
rubber suction hose
• One 4• X 12'
(100 mm x :J.IS m)
galvanized
discharge hose
CAPACITIES I
Manitoba:
70 3ld lc¥e. N.E. Boll 17110
Clrmln, Mlnftoba
CMidl ROO OJO
"AAl (204) 741-2851
Fax (204) 74H308
www.wallnga.com 1
Saskatchewan:
P.O. Box848
2210 Ftonlaoe Ad.
DMfson, 8ulllafdalln
Cll1llda 800 1NJ
Tel (308) 687~1
Fax (308) 667-3039
i
I
I
Hello Darsie,
If I can move a railcar load at a time (115 ton) the price is considerably cheaper. That would be
5-20' containers.
Depending on how much consumption and silo capacity will determine how much you can take
per delivery.
This price would be $325 a ton delivered to Haines. AML has extra fees if container is held more
than 5 days.
If you cannot handle this much at one time, less than a railcar, it would be $349 a ton. This
increase is due to trucking charges.
These are pretty hard estimates but could change slightly by the time you have your boilers up
and running.
When this happens I will try to coincide your pellet needs with Sitka's to get the better rate.
I sincerely hope that we can help with your pellet needs in the future.
Thank you,
AI Roskam
Alaska Pellet Supply LLC
1451 W. Fairview Lp.
Wasilla, Alaska 99654
907-232-1393
Hi Darsie,
Further to our conversation today, I would like to give you some approximate
numbers.
Based on our preliminary estimates we feel that we can set up to produce pellets
at a price of about $300/ton USD fob Haines or $275/ton at our plant. The cost of
ground biomass would be about $199 less. This would be for a small screened chip
comparable to what you termed "microchips".
We are confident that the moisture content would average 16% or less. We feel
that even an average of 12% may be achievable without drying. There are a few
variables to account for these numbers but if we plan on 16% I think we have a
safe number to work with.
I hope this is useful information for you Regards,
Daniel Clunies-Ross
Dimok Timber on 9/17/13
Pellet Delivery to Haines
Pellets 10 tons 225 per ton $ 2,250
Ferry 1 LS $1,000 $ 1,000
Delivery 2 Hr $65 Hr $ 130
Contingency $ 200
$ 3,580.00 $ 358.00
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax:907-272-8389
Bill To:
Haines Borough
PO BOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
New City Shop
PESS6 Assembly· S6Kw Vacuum Boiler 191000 BTU
PESS6ASME • S6KwVacuum Boiler 191000 BTU
PEASCHRE • Right Ash Compression & Ash Box
12104720 ·Boiler Side Pellet Suction Hose 66'
BRPT·OO ·Blue Ribbon Tridicator
4S·SS I • Low Water Cut Off (Hydro level) • Short
M33S-MI Valve· Bronze Boiler Pressure Release Valve
SWS·M ·Vacuum System Metering Unit
S I 0 • Incoming Freight
E 1307US • Heating Controller for I Heating Zone
SILQ-9-60-24 Assembly • Silo 9' x 22' S" • 60 deg • 20 tons
033694 • MFS Silo 9' x 22'S"· 60 deg • 20.7 ton
032146 ·Ladder for 033694 Silo
BLK-1 0208 • Fill Kit for 033493
ZRIOO • 4" x 39.37" Pipe
ZSIOO • 4" Clamp Ring with Gasket
Male CAM x 4" Shank· Male CAM x 4" Shank
400DC·AL • Dixon Dust Cap
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit • I Leg • Outside Silo Drop Boot Kit for I Legs
Drop Boot • I Leg • I Legged drop boot for outdoor silo to
s-sws
121134 ·Storage Tank Connection Diam ISO
S lOS • Slide Gate for Storage Bin
ZS I SO • I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installation ofNew Wood Pellet Boiler and Piping
Hydronic Piping
Mechanical Insulation
Plumbing
Hydronic Specialties
Electrical/ Controls
Boiler Room Construction
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
New City Shop
Job Name PaymentTenns
New City Shop COD
Estimate
Date Estimate#
911312013 HB2
Requested Date Seller
12131/2013 Shawn
Qty Rate Total
I IS,296.20 IS,296 .20
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0 .00 0.00
I 0.00 0.00
I 0.00 0.00
0.00 0.00
I 0.00 0.00
I 6,691.88 6,691.88
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
7 0.00 0.00
8 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 10,000.00 10,000.00
I 6,4SO.OO 6,4SO.OO
I 37S .OO 37S.OO
I 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I I,SOO.OO I,SOO.OO
I 2,SOO.OO 2,SOO.OO
0.00 0.00
I 2,200 .00 2,200.00
Total
Page 1
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax:907-272-8389
Bill To:
Haines Borough
PO BOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Hoisting and Craning
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
New City Shop
Job Name PaymentTenns
New City Shop COD
Qty Rate
Total
Page2
Estimate
Date Estimate#
9/13/2013 HB2
Requested Date Seller
12/31/2013 Shawn
Total
$4S,OI3.08
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Old City Shop
PES32 Assembly· 32KwVacuum Boiler 109!100 BTIJ
PES32ASME • 32Kw Vacuum Boiler 109!100 BTIJ
PEASCHRE • Right Ash Compression & Ash Box
12104720 ·Boiler Side Pellet Suction Hose 66'
BRPT-00 ·Blue Ribbon Tridicator
4S-SS I • Low Water Cut Off (Hydro level) • Short
M33S-MI Valve· Bronze Boiler Pressure Release Valve
SWS·M ·Vacuum System Metering Unit
SIO ·Incoming Freight
SILQ-9-60-16 Assembly· Silo 9' x 20' 2" • 60 deg • 16 tons
033693 • MFS Silo 9' x 20' 2" • 60 deg • 16.7 ton
03214!1 ·Ladder for 033693 Silo
BLK-10208 • Fill Kit for 033493
ZRIOO • 4" x 39.37" Pipe
ZSIOO • 4" Clamp Ring with Gasket
Male CAM x 4" Shank· Male CAM x 4" Shank
400DC·AL • Dixon Dust Cap
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit • I Leg • Outside Silo Drop Boot Kit for I Legs
Drop Boot • I Leg • I Legged drop boot for outdoor silo to
S-SWS
121134 ·Storage Tank Connection Diam ISO
SIOS ·Slide Gate for Storage Bin
ZS I SO • I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installation ofNew Wood Pellet Boiler and Piping
Hydronic Piping (Included)
Mechanical Insulation
Chimney Stack
Plumbing
Hydronic Specialties
Electrical/ Controls
Boiler Room Construction
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Old City Shop
Job Name Payment Tenns
Old City Shop COD
Qty Rate
Estimate
Date Estimate#
9/1312013 HB3
Requested Date Seller
12/3112013 Shawn
Total
I 12,423.7!1 12,423.7!1
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
0.00 0.00
I 6,2SS.OO 6,2SS.OO
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
7 0.00 0.00
8 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 9,!100.00 9,!100.00
I 6,4!10.00 6,4!10.00
I 37!1.00 37!1.00
I 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I 0.00 0.00
I !1,600.00 !1,600.00
0.00 0.00
I 1,300.00 1,300.00
I 1,96!1.00 1,96!1.00
I 7!10.00 7!10.00
I 2,100.00 2,100.00
I 3,!100.00 3,!100.00
I 6,100.00 6,100.00
Total
Page 1
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To :
Haines Borough
POBOX 1209
Haines, AK 99827
Attn : Darsie Culbeck
Description
Hoisting and Craning
Ship To:
Haines Borough
POBOX 1209
Haines. AK 99827
Attn: Darcie Culbeck
Old City Shop
Job Name Payment Terms
Old City Shop COD
Qty Rate
I
Total
Page2
Estimate
Date Estimate#
911312013 HB3
Requested Date Seller
12/3112013 Shawn
Total
0.00 0.00
SS6,318.7S
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax:907-272-8389
Bill To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Museum
PESS6 Assembly· S6Kw Vacuum Boiler 191000 BTU
PESS6ASME • S6Kw Vacuum Boiler 191000 BTU
PEASCHRE • Right Ash Compression & Ash Box
12104720 • Boiler Side Pellet Suction Hose 66'
BRPT-00 • Blue Ribbon Tridicator
4S·SS I ·Low Water Cut Otf(Hydrolevel) ·Short
M33S-MI Valve· Bronze Boiler Pressure Release Valve
SWS·M ·Vacuum System Metering Unit
S I 0 • Incoming Freight
E 1307US • Heating Controller for I Heating Zone
SILQ-9-60-24 Assembly • Silo 9' x 2S' S" • 60 deg • 24 tons
03369S • MFS Silo 9' x 2S' S" • 60 deg • 24.7 ton
032147 ·Ladder for 03369S Silo
BLK-10208 ·Fill Kit for 033493
ZRIOO • 4" x 39.37" Pipe
ZSIOO • 4" Clamp Ring with Gasket
Male CAM x 4" Shank· Male CAM x 4" Shank
400DC-AL • Dixon Dust Cap
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit • I Leg • Outside Silo Drop Boot Kit for I Legs
Drop Boot • I Leg • I Legged drop boot for outdoor silo to
S-SWS
121134 ·Storage Tank Connection Diam ISO
S I OS • Slide Gate for Storage Bin
ZS I SO • I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installation of New Wood Pellet Boiler and Piping
Hydronic Piping
Mechanical Insulation
Plumbing
Hydronic Specialties
Electrical/ Controls
Boiler Room Construction
Ship To :
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Museum
Job Name Payment Terms
Museum COD
Estimate
Date Estimate#
9/13/2013 HBS
Requested Date Seller
12/31/2013 Shawn
Qty Rate Total
I IS,296.20 IS,296.20
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0 .00 0.00
I 0.00 0.00
I 0.00 0.00
I 0 .00 0.00
0.00 0.00
I 0.00 0.00
I 7,630.29 7,630 .29
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
7 0.00 0.00
8 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 11 ,000.00 11,000.00
I 3,700.00 3,700.00
I 37S.OO 37S.OO
I 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I 2,SOO.OO 2,SOO.OO
I 2,SOO .OO 2,SOO.OO
I 0.00 0.00
I 3,SOO .OO 3,SOO.OO
I 0.00 0.00
0.00 0.00
I 1,800.00 1,800.00
Total
Page 1
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn : Darsie Culbeck
Description
Hoisting and Craning
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Musewn
Job Name PaymentTenns
Musewn COD
Qty Rate
Total
Page2
Estimate
Date Estimate t
911312013 HBS
Requested Date Seller
12/3112013 Shawn
Total
$48,301.49
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax:907-272-8389
Bill To :
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Water Treatment
PETSII2 Assembly-S6Kw Vacuum Boiler 382000 BTIJ
PETSII2-Pellet Boiler vor Vacuum Systems
PEASCHRE -Right Ash Compression &. Ash Box
PEASCHRE -Right Ash Compression &. Ash Box
12104720-Boiler Side Pellet Suction Hose 66'
SWS-M-Vacuum Systems Metering Unit
Gauge Kit-Low Water Cut Off-Tricicator Pressure Release
S I 0 -Incoming Freight
E 1307US -Heating Controller for I Heating Zone
SIL0-9-60-28 Assembly -Silo 9' x 28' II" -60 deg -28 tons
033696 -MFS Silo 9' x 28' II" -60 deg -28 .7 ton
032148 -Ladder for 033696 Silo
BLK-10208-Fill Kit for033493
ZRIOO-4" x 39.37" Pipe
ZSIOO-4" Clamp Ring with Gasket
Male CAM x 4" Shank-Male CAM x 4" Shank
400DC-AL -Dixon Dust Cap
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit - 2 Leg -Outside Silo Drop Boot Kit for 2 Legs
Drop Boot - 2 Leg - 2 Legged drop boot for outdoor silo to
S-SWS
121134-Storage Tank Connection Diam ISO
SIOS-Slide Gate for Storage Bin
ZS I SO -I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installat ion ofNew Wood Pellet Boiler and Piping
Arctic Hydronic Piping
Mechanical Insulation
Plumbing
Hydronic Specialties
Electrical/ Controls
Boiler Room Construction
Hoisting and Craning_
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Dan:ie Culbeck
Water Treatment
Job Name Payment Terms
Water Treatment COD
Estimate
Date Estimate#
9/13/2013 HB6
Requested Date Seller
12131/2013 Shawn
Qty Rate Total
I 14,287.SO 14,287.SO
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
2 20l.S7 403.14
I 0.00 0.00
2 0.00 0.00
0.00 0.00
I 0.00 0.00
I 8,109.38 8,109.38
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
7 0.00 0.00
8 0.00 0.00
I 0.00 0 .00
I 0.00 0.00
I 10,600.00 10,600.00
I S,900.00 S,900.00
I 1SO.OO 1SO.OO
I 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I 2,SOO.OO 2,SOO.OO
I 12,000.00 12,000.00
I 0.00 0.00
I 3,SOO.OO 3,SOO .OO
I 7SO.OO 1SO.OO
I 4,200 .00 4,200.00
I 3,200.00 3,200.00
I 6.100.00 6,100.00
Total $72,300.02
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To :
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Vex: Ed S<:hool
PES32 Assembly· 32Kw Vacuum Boiler 109SOO BTU
PES32ASME • 32Kw Vacuum Boiler 109SOO BTU
PEASCHRE • Right Ash Compression & Ash Box
12104720-Boiler Side Pellet Suction Hose 66'
BRPT-00 ·Blue Ribbon Tridicator
4S-SS I • Low Water Cut Off (Hydro level) • Short
M33S-MI Valve· Bronze Boiler Pressure Release Valve
SWS·M ·Vacuum System Metering Unit
SIO ·Incoming Freight
SIL0-9-60-16 Assembly -Silo 9' x 20' 2" -60 deg • 16 tons
033693 • MFS Silo 9' x 20' 2" • 60 deg • 16.7 ton
03214S ·Ladder for 033693 Silo
BLK-10208 ·Fill Kit for 033493
ZRIOO • 4" x 39.37" Pipe
ZSIOO • 4" Clamp Ring with Gasket
Male CAM x 4" Shank· Male CAM x 4" Shank
400DC·AL -Dixon Dust Cap
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit • I Leg • Outside Silo Drop Boot Kit for I Legs
Drop Boot -I Leg -I Legged drop boot for outdoor silo to
s-sws
121134 • Storage Tank Connection Diam I SO
SIOS ·Slide Gate for Storage Bin
ZS I SO • I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installation ofNew Wood Pellet Boiler and Piping
Hydronic Piping (Included)
Mechanical Insulation
Chimney Stack
Plumbing
Hydronic Specialties
Electrical I Controls
Boiler Room Construction
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Vex: Ed S<:hool
Job Name Payment Terms
Vex: Ed S<:hool COD
Qty Rate
Estimate
Date Estimate#
9/1312013 HB7
Requested Date SeUer
12/3112013 Shawn
Total
I 12,423.7S 12,423.7S
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
0.00 0.00
I 6,2SS .OO 6,2SS.OO
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
7 0.00 0.00
8 0.00 0.00
I 0.00 0.00
I 0.00 0.00
I 7,000.00 7,000.00
I 3,700.00 3,700.00
I 37S.OO 37S.OO
I 0.00 0.00
2 0.00 0 .00
2 0.00 0.00
2 0.00 0.00
I 2,SOO.OO 2,SOO.OO
I S,600.00 S,600.00
0.00 0.00
I 300.00 300.00
I 7SO .OO 7SO.OO
I 1SO.OO 7SO.OO
I 900.00 900.00
I 3,000.00 3,000.00
I 3,SOO.OO 3,SOO.OO
Total
Page 1
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax:907-272-8389
Bill To:
Haines Borough
PO BOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Hoisting and Craning
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Voc Ed School
Job Name Payment Terms
Voc Ed School COD
Qty Rate
I
Total
Page2
Estimate
Date Estimate#
9/13/2013 HB7
Requested Date Seller
12/31/2013 Shawn
Total
0.00 0.00
$41,0S3.1S
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darsie Culbeck
Description
Haines Public Safety
PESS6 Assembly-S6KwVacuum Boiler 191000 B111
PESS6ASME • S6Kw Vacuum Boiler 191000 B111
PEASCHRE • Right Ash Compression & Ash Box
12104720 ·Boiler Side Pellet Suction Hose 66'
BRPT-00 ·Blue Ribbon Tridicator
4S-SS I -Low Water Cut Off(Hydrolevel) ·Short
M33S-MI Valve· Bronze Boiler Pressure Release Valve
SWS-M ·Vacuum System Metering Unit
SIO -Incoming Freight
E 1307US -Heating Controller for I Heating Zone
SIL0-9-60-28 Assembly • Silo 9' x 28' II" • 60 deg • 28 tons
033696 • MFS Silo 9' x 28' II" • 60 deg • 28.7 ton
032148 • Ladder for 033696 Silo
BLK-10208 ·Fill Kit for 033493
ZRIOO • 4" x 39.37" Pipe
ZS I 00 -4" Clamp Ring with Gasket
Male CAM x 4" Shank-Male CAM x 4" Shank
400DC-AL -Dixon Dust Cap
12104720-Boiler Side Pellet Suction Hose 66'
Concrete Foundation/Silo Construction/Pellet Feed Hoses
Delivery Charges to Haines, AK
Drop Boot Kit • I Leg • Outside Silo Drop Boot Kit for I Legs
Drop Boot • I Leg • I Legged drop boot for outdoor silo to
s-sws
121134 ·Storage Tank Connection Diam ISO
S I OS • Slide Gate for Storage Bin
ZS I SO -I SOmm Clamp for outside storage
Demo of Existing Boilers and Piping
Installation ofNew Wood Pellet Boiler and Piping
Arctic Hydronic Piping
Mechanical Insulation
Plumbing
Hydronic Specialties
Electrical I Controls
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn: Darcie Culbeck
Haines Public Safety
Job Name PaymentTenns
Public Safety COD
Estimate
Date Estimate#
9/1312013 HB9
Requested Date Seller
12/3112013 Shawn
Qty Rate Total
2 IS,296.20 30,S92.40
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I 10,109.38 10,109.38
I 0.00 0.00
I 0.00 0.00
I 0.00 0.00
8 0.00 0.00
9 0.00 0.00
I 0.00 0.00
I 0.00 0.00
2 20l.S7 403.14
I 11,600.00 11,600.00
I 7,900.00 7,900.00
I 7SO.OO 7SO.OO
I 0.00 0.00
2 0.00 0.00
2 0.00 0.00
2 0.00 0.00
I 2,SOO.OO 2,SOO.OO
I 3,SOO.OO 3,SOO.OO
I 0.00 0.00
I 0.00 0.00
I 7SO.OO 7SO.OO
I 2,SOO.OO 2,SOO.OO
I 2,200.00 2,200.00
Total
Page 1
Pacific Rim Mechanical, LLC.
200 W. 34th Ave #347
Anchorage, AK 99503
Phone: 907-868-3972
Fax: 907-272-8389
Bill To:
Haines Borough
PO BOX 1209
Haines. AK 99827
Attn : Darsie Culbeck
Description
Boiler Room Construction
Hoisting and Craning
Ship To:
Haines Borough
POBOX 1209
Haines, AK 99827
Attn : Darcie Culbeck
Haines Public Safety
Job Name Payment Terms
Public Safety COD
Qty Rate
I
I
Total
Page2
Estimate
Date Estimate tl
9/1312013 H89
Requested Date Seller
12/3112013 Shawn
Total
0.00 0.00
0.00 0.00
$72,804 .92
September 5, 2013
Darsie Culbeck
Chilkoot Indian
Association
Executive Assistant to the Manager
Haines Borough
P.O. Box 1209
Haines, Alaska 99823 7
RE: Wood Pellets
Dear Darsie,
The Chilkoot Indian Association is committed to helping the residents of the
Chilkoot and Cbillcat valleys. CIA is willing to sell wood pellets created in our wood
pellet plant at cost plus the depreciation of the equipment in the plant.
David F. Berry Jr.
Tribal Administrator
A Fedemlly Recognized Sovereign Indian Tribe
PO Box 490 Haines AK 99827 Phone 907-766-2323 Fax 907-766-2365
UPDATED s/8/2013 REVISION1
Wood Pellet Mil Feasibility
Study
As Commissioned by the Chilkoot Indian Association; Prepared by
Pellergy LLC with support from Vermont Wood Pellet Company LLC
By: Andrew Boutin, Pellergy LLC
Wrtb support from ChN Brooks,
Vermont Wood Pellet Company LLC
By: Andrew Boutin, Pellergy LLC
Wood Pellet Mill Feasibility Study
REVISION SUMMARY:
REV 1: PUBUSHED S/8/13 -Updated Figure 1.1, Impact of Trucking Costs on Pellet Prices
2 •
By: Andrew Boutin, Pellergy ILC
Executive Summary
Pellergy ILC, together with the Vennont Wood Pellet Company, is pleased to present the Chilkoot Indian
Association (CIA) with the following feasibility study for a wood pellet production facility in SE Alaska.
Pellergy ILC (Pellergy) is a technology-based company specializing in wood pellet systems including
stand-alone wood pellet burner systems, dedicated wood pellet boilers, and bulk pellet storage, handling
and delivery solutions. The Vermont Wood Pellet Company is the State of Vennont's only wood pellet
manufacturer; with operations in Clarendon, Vermont. Together, Pellergy and The Vermont Wood Pellet
Company present this feasibility analysis based upon industry experience as well as a site visit to Haines,
AK and with feeder data provided by the CIA.
This study is intended to give a partial analysis of the overall feasibility. Specifically, this report addresses
the following:
Wood Pellet-EatabiiNiment
0 Mil Chataderistlcs
o Output per year
0 Operational Cost Aaaeaement
o Equipment Analysis Including ure Cycle Cost Estimate
, .. rt.qul,.,.. Documenta
0 Size of f8cllly
0 Size of lot required
o Special coneideratlons (transpoftatlon, acceaa, zomg,
power, ordinances, etc.)
Pellergy's analysis has been based on actual startup and operational costs from the Vermont Wood Pellet
Company combined with updated cost information on capital costs of equipment and local rates
determined as a result of the site visit and the data presented herein. Pellergy has relied upon data
supplied by the CIA as a result of their own (separately contracted) wood supply analysis to complete this
analysis. Pellergy has also relied upon the CIA to provide a list of local assumptions as to labor rates,
power rates, local pennitting fees, etc.
It is the conclusion of this report that the CIA has the potential to operate a micro-scale wood pellet
operation within Haines, AK capable of producing up to 2500 tons per year. This operation would be
unique in its size, from a pellet manufacturing facility standpoint; however, the technologies and
techniques utilized are proven.
This analysis provides the CIA with a financial breakdown of capital expenses to establish the
recommended mill, operational cost projections based upon equipment cost quotes obtained by the vr
Wood Pellet company and their operational experience in a smaller scale mill.
A risk assessment is included, identifying potential risk, consequence and mitigation factors.
'Ibis proposal containt OOIIPE'ITI'ION SENSrllVI! material intended for the adiiiM use by the Qlilkoot IDdlan A1sociatioo (CIA).
By: Andrew Boutin. Pellergy U.C
Approach
Pellergy has combined their experience in the end-use market for wood pellets with the established
experience of the Vermont Wood Pellet Company to provide the Chilkoot Indian Association with a
robust. accurate assessment of the financial requirements to manufacture and operate a wood pellet mill
of appropriate size for the existing and potential market for wood pellets.
Pellergy has relied upon the Chilkoot Indian Association to provide feeder data to complete this study.
The feeder data has identified the local wood fuel supply availability. pricing and limiting factors. This
report. entitled •wood Fuel Supply Opportunities Haines. Alaska• dated July u. 2010 and performed by
Innovative Natural Resource Solutions U.C {INRLS) has been used by Pellergy for data input into the
financial analysis of this report.
Overall. the wood supply assessment performed by INRLS for the CIA determined an adequate feedstock
supply to support a wood pellet mill capable of up to 20.000 tons of wood pellets per year. There were
identified limiting factors; however. for the purpose of this report. we have assumed an adequate supply
of woody biomass feedstock.
Method
The initial goal was to determine an appropriate size for a pellet mill operation given the current and
potential market demand for wood pellets in the local market. In evaluating the potential market the
total number of homes currently heating with oil and wood are examined. Assumptions are made as to
the potential for fuel switching based upon a variety of factors and an estimated local demand profile was
determined.
Transportation limitations were investigated in determining reasonable market expectations for more far-
reaching markets. Overall. Haines has a very good transportation infrastructure; however. shipping costs
are comparatively high for the shipment oflower cost bulk commodities such as woody biomass as
feedstock and finished wood pellets.
The investigation looked at the potential for low cost competition to move in and capture market share
once a local wood pellet demand is established.
As of the date of this report. a pellet mill in Fairbanks. AK has come on line and is producing wood pellets.
Representatives from Pellergy visited this mill and spoke with its operators in April of 2011. Additionally.
Pellergy has a trial system installed in the Fairbanks area and keeps regular contact with the home heating
company who installed the system and is watching the market grow within the area.
Pellergy also looked at additional potential uses for a small scaled pellet mill. Since there is currently very
little wood pellet usage in the Haines area. and immediate demand for the product will be low. additional
uses for the equipment may offset the capital investment.
This proposal eontains COMPE'ITI10N SENSmvE mataial illteoded for the adiiSM U8t by the auJkoot IDdian AasodatiOD (CIA).
s •
By: Andrew Boutin, Pellergy LLC
Due to the small size of the mill recommended by this study, and relatively low discharge of waste heat
from the operation, co-generation of electricity was not investigated in detail and is not recommended
without further investigation and/or a change to the system layout. The capital equipment costs of co-
generation equipment, given the existing technologies, will surpass that of the mill setup given the size
and capacity of the pellet mill descn'bed herein. Additional investigations are recommended as result of
these preliminary investigations and should be undertaken in conjunction with the initial purchase of
equipment. It is recommended that these investigations include sizing a biomass burner for higher
capacity than required for the pelletizing operation and using waste heat from power generation to dry the
feedstock material for the pellet mill.
Additionally, in preliminary investigations of available technologies it was determined that the
operational cost of the equipment would equate to an equivalent power generation cost of $0.21 -o.$23
per kilowatt hour. At current non-diesel generation rates, these costs present a competitive price for
electricity; however, from an equipment capital cost perspective become costly.
Waste heat power generation technologies are rapidly becoming more efficient, affordable and available
to smaller scale operations. For example, there have just recently been reports of an off the shelf Organic
Rankine Cycle (ORC) system that can provide 35-50 KW of power generation for as little as $0.07 -$0.09
per kilowatt hour of generation. At the time of this report, this technology is emerging and worth
studying in greater detail. It is recommended that the following course of action be taken:
Analysis
Pellergy LLC has experience in the wood pellet demand side of the wood pellet market. Our business is
centered on the production of wood pellet burner systems, wood pellet boilers and bulk wood pellet
storage and conveyance solutions. Our staff has toured many wood pellet mill operations and has
discussed the details of wood pellet manufacturing with many mill operators. Pellergy has teamed with
the Vermont Wood Pellet Company LLC in Clarendon, Vermont to provide their insight and know-how
regarding the setup and operation of a small-scale wood pellet mill. The Vermont Wood Pellet Company
is just about to enter their third year of operations. They have entered a market full of known product and
have, in a relatively short period of time, made a name for themselves as a company that provides the top
quality wood pellet fuel from 100,_, softwood feed stock. In fact, Pellergy LLC was drawn to the Vermont
Wood Pellet Company originally due to Pellergy's very successful testing of the wood pellets produced in
their facility. The Vermont Wood Pellet Company is unique for many reasons: Their size, know-how and
ability to produce a consistently outstanding wood pellet fuel.
Markel Dema nd
Together, Pellergy and the Vermont Wood Pellet Company have assessed the potential market for a wood
pellet manufacturing facility, identified an appropriate size for facility given potential market and
identified risks and challenges in setting up such a facility. The findings are presented herein:
6 •
By: Andrew Boutin, Pellergy U.C
Heating oil (#2 Fuel Oil, Kerosene) comprise the majority of home heating fuel consumed within Haines
with approximately 83% of housing units utilizing it for primary heating and wood consisting of
approximately 10% of home heating (city-data.com, 201o).
r-,
I
I • Fuel 011/ Kerosene
•wood
• Propane/LP
• Electricity
•Other
Haines, AK Most Commonly Used Heating Fuels
Repeated calls to Delta Western, Inc., Haines' heating oil dealer have gone unanswered. It is not common
for heating oil delivery companies to release this data to private entities. Pellergy has documented and
used the analysis below to estimate the total potential market for pellet usage.
For the purpose of this analysis, heating oil will be used as the primary potential market segment available
for conversion, add-on and supplemental displacement by wood pellets. Each of these is described below:
Rmlacement: Involves the removal of existing central heating equipment and the installation of new. The
new wood pellet heating system supplies 100% of the home heat. Replacement systems are typically the
highest cost installations for two primary factors: Cost of the new equipment and combined labor in the
removal of the old system and adaptation of the existing distribution (Hot Air or Hot Water) to the new
equipment.
Add-On: Involves the addition of a wood pellet central heating system that will operate in conjunction
with the existing and remaining oil fired system. The new wood pellet system can reasonably be expected
to provide for So% or more of the total home heating in an add-on scenario with the existing system only
used in the coldest of heating days and if the wood pellet system is out of seiVice. Add-on systems tend to
be slightly less expensive than Replacement systems due to the saved labor associated with the removal of
existing equipment and relative ease of tying into an existing system. Add-on systems can also be sized
slightly smaller than Replacement systems due to the fact that the existing system remains and can
provide for "surge• heating on the coldest of days, allowing the add-on system to carry a majority of the
heating needs.
This proposal contaias COMPETI110N SENSri'IVE DUiterial intended for the eldusiYe use by the Cbillroot Indian Allodatloo (CIA).
By: Andrew Boutin, Pellergy LLC
SJuwlemental: Involves the installation of a point of source pellet heater rather than a central heating
system. These pellet stoves are used to provide heat to one or more rooms to supplement home heating
needs, but not replace a central heating system. Supplemental heaters are the most commonly installed
wood pellet fueled unit. In certain homes they can replace up to 7596 of the heating, and in rare cases an
entire small home can be heated with just one or two pellet stoves. Supplemental pellet stove installations
are the most cost effective installation; however, they do require daily attention in most cases. These can
be thermostatically controlled and automated for operation without constant user intetvention.
For the purpose of analysis, the total number of houses, combined with apartment units was used to
analyze the potential market. Data from 2009 indicates there existed 991 total housing units in both
Haines and suiTOunding rural areas (ci.ty-data.com, 2010), 691 houses and condos and 300 apartments.
Additionally, the Borough of Haines has seen permit applications averaging 11 per year for the
construction and addition of housing units.
Since some numbers of the 300 apartments are presumed to be combined within the same structure,
thereby sharing a heating system, we will assume an average multi-unit size of 2-5 units per building. This
results in an estimated 120 structures requiring heat.
For the total current number of dwelling structures requiring heating the number of houses and condos
( 691) was combined with the estimated number of apartment buildings (120) and an average of 11
dwellings per year added for 2010 and 2011. The total number used for this analysis is 833· While this
does not represent an exact number, it gives a relatively accurate number for analyzing the total market
potential.
Based on the size, age and quality of the dwellings; environmental factors; and total number of heat days
within Haines and the immediate surrounding areas, an average oil usage of 850 gallons per year was
used in this analysis. From the total number of housing units and average usage, the total oil consumed in
the residential market is estimated at 708,050 gallons.
The average cost of heating oil in Haines was $3.18 per gallon in 2010 (Alaska.gov -Laborstats, April
2011), and the current delivered price of heating fuel as of December 2010 was $3.85. a one-year, 2196
increase in costs. Overall, there is an approximate $2.25M spent in home heating oil alone in 2010.
ofTOiall Uftltl --a I• • 1GK IS 2S .. .. sa
Number of Dwelling Units m 17 42 83 125 208 :zso 333 417
Average Total 011 Usage (pi) 70eO 14161 354CS 7all5 106208 177013 212415 283220 35G5
Equlv Wood Pellets (tons) 5900 118 295 590 885 1475 177'0 2360 2950
At current fuel oil delivered costs of $4.72 per gallon (Delta Western, FEB 2012)
8 •
By: Andrew Boutin, Pellergy U.C
QycnQ Pellet SR»JJly
At the time of the initial investigation, no wood pellet mill operations were in existence within the State of
Alaska and the use of wood pellets was very minimal at an estimated 3.500 tons of pellets for the entire
state (N. Soboleff, 2010 ). Since the initial investigation; however, there have been some advancements in
both wood pellet production and usage in Alaska:
• Superior Wood Pellet Company of Fairbanks, AK has constructed and brought online a mill that
can operate at up to 6 Tons Per Hour capacity. This mill has brought an increased awareness of
wood pellets to the more northern region of Alaska; however, it is not feasible to transport these
pellets to Southeast Alaska due to transportation costs.
• SeaAlaska Corporation has installed a 750MBTU system in their Juneau, AK offices. This system
heats their office complex and creates a demand for pellets on the order of 300 tons per year. As
a result of this installation more individual homes and businesses are looking at converting to
wood pellets in Juneau. Given feny routes in SE Alaska, it is feasible to ship pellets from a
manufacturing facility in Haines to consumers in Juneau.
• More installations of pellet fired central heating systems have been installed and proven in
central heating applications. These systems are beginning to produce a track record of cost
savings and are providing a base demand increase for wood pellet fuel.
• Recently, there have been solicitations for up to 400 tons of pellets to be supplied to a bulk user
in Ketchikan, AK. That user has recently been identified as a local federal building.
• And, the United States Coast Guard is looking at ways to reduce their overall heating oil usage on
bases throughout Southeast Alaska.
The market for wood pellets in Alaska is growing as is the awareness that pellets can provide a heating
alternative that can save home and business owners 5096 or more on their heating costs.
That said, the market in and around Haines remains small at under 100 tons per year. As illustrated
above, it is the opinion of the Authors that an eventual market of nearly 2.500 tons per year can and will
exist within Haines and in the immediate surrounding areas within the next 5-10 years. This will be
driven by the conversion of between 40-5096 of existing homes to wood pellet heating.
Barrien to Market Growth
7hnwzortgtion
The single greatest limiting factor in expansion of the pellet sales market for a mill located in Haines, AK
is the cost of transportation. Overland transportation costs for trucking pellets into markets accessible by
road can add significant cost to a ton of pellets. Figure 1.1 below illustrates the additional trucking costs of
pellets given fuel prices ranging from $4.25 to $6.65 per gallon of diesel. Miles shown are an estimated
one-way mileage; the dollar value shown is the estimated additional cost per ton of pellets delivered to the
indicated location.
This proposal contains COIIPE'ITnON SBNSI11VE mmriaJ intended for the esdusiYe use by the alilkoot IDdlan Aslociation (CIA).
By: Andrew Boutin, Pellergy LLC
..... -~,.,_.c-. .......................... c-.
Mles ....... l'llca ,.,Gillon IOiesell
!';f.2S $4.45 $4.8 $4.15 . $5.115 sus $5.45 sus sus SU5 sus sus $18 ....... t.: 111' . $UIII a.a lUI lUI .sa.n ..... lUI Jl 1M ~ IIUI lUI ...... 1! ,.. lUI $&11 SUI $UI $UI ... ... lUI 11..1! ,., IIIAI ...
Juncllon, Yl 151 $lUI .. .. ,... ... .. SZUI .. ... ~ ... lUll lUI ..
horse, Yl 251 iiUI ... $lUI $lUI ... .. .... .. $fi.JIJ ... .... $lUll $lUI
Figure 1.1 illustrating an estimated additional cost per ton of pellets delivered outside Haines, AK
Based on the chart above, it is reasonable to assume that the local market for pellets, including delivery
out to and just beyond Mosquito Lake are the farthest reaching markets where the economics of delivery
continue to translate in to cost savings for the consumer.
Transport using the Alaska Marine Highway Ferry system is also available; however, the cost impacts for
shipment of pellets in this manner to farther reaching destinations are still great. Figure 1.2 below
illustrates the estimated costs associated with the transport of pellets via truck using the ferry system.
Est Cost PerTon
Skagway 1----...;...$1_7._.67;...__ __ ~
Juneau $ZB.TI ~----~~~----~ Ketchikan $J.Z1.66 ~----~~~----~
Figure 1.2 illustrating an estimated additional cost per ton of pellets delivered outside Haines, AK
From the figures above, it is reasonable to assume that both Skagway and Juneau are viable markets for a
pellet production facility located in Haines.
In both cases, there are local cargo transport companies that can compete with the estimated prices.
Cargo transport companies may be able to move full30-ton containers of bulk or bagged pellets for less;
however, these prices fluctuate with both the season and the cargo account booking the shipment. It is
reasonable to assume that, from time to time, shipments may be made using local cargo transport
companies to fulfill pellet orders outside the areas identified above; however, these cases will likely be the
exception rather than normal operations.
AtfordabiUQI
An additional barrier to market growth will be the required capital cost for the consumer to convert to
pellets. The cost to convert a central heating system to wood pellets in the lower 48 states ranges from
$7 ,soo to over $25,000 depending on the size of system, cost to install, and level of automation the
system provides. Consumers in the Northeast region of the lower 48 have many choices in both heating
products and contractors to install the equipment. States such as New Hampshire and Vermont offer
incentives in the form of rebates for consumers to convert to pellet central heating.
In order to positively impact the increase in homeowners and business conversion to wood pellet heating,
the CIA could look into partnerships with financial institutions for the financing of systems, to equipment
manufacturers for training oflocal heating contractors in the installation of their equipment and the
10 .
By: Andrew Boutin, Pellergy LLC
potential for bulk buying discounts; and to the State of Alaska for incentivizing fuel switching through
incentives.
This methodolo&Y can apply to wood pellet stove users as well. Pellet stoves can have a very positive
impact on cost savings for the consumer and can translate into pellet sales for the producer. Pellet stoves
can not generate the type of large scale pellet demand that central heating systems can.
QualitJI &surance
A poor quality pellet will not sell. It should be the focus of the CIA to produce the highest quality pellet
available on the market. There are many examples of pellet consumers purchasing wood pellets from a far
reaching pellet mill and at a higher cost than one located closer to them, if not right in their hometown,
over pellet quality issues. Pellet consumers demand a high quality pellet and are willing to pay a premium
to get it.
Focusing on the purchase and setup of equipment that is specifically designed for the type of feedstock
available is a necessity. The equipment should include features that will allow for adjustments using
control features of the system rather than a rebuild or redesign of equipment. Mill operators should be
not only familiar with the equipment and its operation, but also with the impacts of improper operation
on pellet quality.
The Vermont Wood Pellet Company can assist the CIA in the specifying, initial setup and operational
personnel training of a wood pellet mill facility. Company owners have many contacts throughout the
industry, including some in British Columbia, Canada who are familiar with the setup of equipment
specifically designed and tuned to the species of feed stock woods available in SE Alaska.
Idendfylnc Feed Stock Sourq
The CIA provided a document entitled "Wood Fuel Supply Opportunities Haines, Alaska• as data to use in
determining the feasibility of operating a wood pellet mill in the area. The report's summary states that
there are ample supplies of both local and somewhat distant market feed stocks to support a pellet
production facility with an annual output of nearly 25,000 tons of pellets per year. The report identifies
three major, potentially viable sources of biomass to support the operation:
1. Local logging of primarily Sitka Spruce;
2. The utilization of beetle killed White Spruce and sawmill residue from the Yukon; and
3. Sawmill residue from operations in Hoonah.
Each of these has been documented in the report as capable suppliers of biomass feedstock. During an
independent visit to the area by Pellergy and the Vermont Wood Pellet Company, visits were made to
logging sites in the Haines area as well as to Dimok Lumber Company in the Yukon. The purpose of the
visit was to inspect typically harvested logs in these areas to evaluate the quality for pelletizing. The
Hoonah mill was not visited due to time limitations as well as reports that the operation uses and can
produce residues from species very similar to that in the Haines area.
This proposal contai111 COMPE11110N SEHSrriVE material illteuded for the eulusM: use by the Cllllkoot IDdian ADoeiatioo (CIA).
u •
By: Andrew Boutin, Pellergy ILC
During these visits, some interesting observations were made. Both the Haines managed forests and the
beetle killed cuts in the Yukon are providing logs that are extremely well suited to the production of a high
quality wood pellet; however two important distinctions exist:
• Locally sourced Spruce logs have a moisture content of between 36" and 6o" (INRLC Report,
June2010)
• White Spruce logs at Dimok lumber were witnessed as having moisture content of below 15" and
mill residue on site was even lower.
Furthermore, the bulk density of the white spruce was witnessed to be much greater than that of the
locally available species. The diy climate of the Yukon has provided a veey slow growth environment for
the white spruce. The result are trees with veey tight growth rings and density approaching that of much
harder wood species. While it was not possible to take actual bulk density tests, discussions with the
sawmill, local loggers and consumers of firewood in the local area all agree that the beetle killed white
spruce is a much more dense log.
The pelletizing process is one of densification. In the manufacturing wood pellets, feed stock is reduced to
sawdust sized particles and fed into the pelletizer where the material is forced through a die under beat
and pressure. In typical softwood pelletizing processes the ratio of green feedstock to finished product is
between 2.1 and 2.5 to one, meaning that for eveey ton of pellets produced, 2.1 to 2-5 tons of feedstock is
required. In pellet mill operations where predominately hardwood feedstock is used, this ratio is much
less due to the fact that the wood used starts out at a higher bulk density. Ratios of 1.2 to 1.6 to one are
commonly observed in these operations.
Ideal moisture levels of feedstock entering the pelletizer are between 9" and 14" moisture. In typical
pellet mill operations a deyer is used to bring feedstock moisture levels down to this level. Deyers in pellet
mill operations manufacture deyer fuel as a part of their operations, taking some of the feedstock,
chipping and deying it and reducing it to sawdust to burn in the deyer burner. This operation can cost a
pellet mill operation between $12 and $15 per ton of finished product.
In looking at the options for feedstock, Pellergy and the Vermont Wood Pellet Company evaluated the
higher acquisition cost of the beetle killed white spruce from the Yukon versus the lower local cost of the
more locally sourced Spruce and Hemlock.
Pellet Mill Financial Analysis
Using experiential data from the Vermont Wood Pellet Company and feeder data from both the CIA and
local sources in and around Haines, AK, the following financial analysis of mill operations was performed.
The basis for mill size selection was a combination of the market analysis presented above indicating that
within 5 years there could exist a market for as much as 2,500 tons per year.
12 •
By: Andrew Boutin, Pellergy U.C
Oj)eratinntl Com
An operational schedule of 6-months per year was used to evaluate production output and finances. This
decision was based on two primary factors:
• The existing logging and log hauling infrastructure has been identified in the CIA report as
outdated and somewhat lacking. Additionally, hauling logs extended distance over the highway
system in winter can be met with unexpected delay and can result in a lack of feedstock at the
mill.
• CUrrently,logging operations are limited to a few months of the year due to weather conditions
and access on logging roads.
Additionally, only one production shift is loaded into the financial model on startup of the mill. This will
allow for work shifts during normal business hours to reduce the overall management burden on the
operations. Alternatively, if deals can be made with the local power company to operate the mill in off-
peak hours, the model allows for the one shift to be in production at any time of day.
Figure 1.3 below shows the projected first year production capability given the 24 weeks of shutdown ( 6-
months) and operations for of five shifts per week (one shift per day during the weekdays). The
production of 1,680 tons is what is used in the financial model for the first full production year. A total of
soo tons of production is loaded into the model for the startup year of operation. As indicated below, the
"Full Capacity" of the mill operation, running three full shifts and only 6-weeks of shut down for
maintenance activity is just over u,soo tons per year. It is this production number that is typically stated
as a mill's operational capacity.
Startup
Production Actual Full Capacity
Shut down weeks 2. 6
Operating Hours 1,UO 7,728
Production 1,680 11,592
Figure 1.3 indicating actual production capacity and full production capacity
From an operational perspective, assumptions were loaded into the financial model based upon
experience in smaller mill operations and as a result of the equipment selected (and presented in later
sections of this report. As indicated in Figure 14 below, the overall mill capacity is 1-5 tons per hour. This
is a relatively small pelletizing operation; however, appropriately sized for the capacity target identified
above and of lower cost for startup.
There are four additional work weeks loaded into the model above and beyond the 24 production weeks
listed in Figure 1.3 above. These weeks will account for startup and shutdown during the season as well as
lost production to maintenance tasks.
The raw to finished ratio of 14 indicated below is indicative of using the beetle killed white spruce from
the Yukon. An analysis using locally sourced wood is also presented and evaluated later in this section.
This proposal eontains COMPE'ITI10N SENSITIVE material intended for the exclusive use by the Cbilkoot Indian Assoeiatioo (CIA).
13 .
By: Andrew Boutin, Pellergy LLC
The kilowatt draw for the mill operations is a result of the estimated system total draw of all electrical
loads in the mill operations. A complete listing of the equipment is presented later with a breakdown of
the estimated electrical draw for each component of the mill operations.
ASSUMPT10NS
Operations
Mill size 1.5 tons/hour
Shifts per week s
Weeks/Year 28
Workers/shift • Raw/Finished Ratio 1.4
KW 183.15
KWh 206,(0)
Figure 14 showing operational assumptions for mill operations
Direct Cotta
Direct operational cost assumptions are documented in Figure 1-5 below. This list of assumptions is
based upon raw material costs as identified in the CIA provided wood availability study for raw materials
coming from the Yukon. The $70 per ton figure for raw materials landed in Haines is on the high side of
what can be expected. This figure comes as a result of the current pricing for a load of firewood brought
into Haines from the Yukon. These purchases are very low in volume as compared to what would be
required for even the startup year for the mill (approximately 700 tons oflogs). It is reasonable to assume
this cost will be 10-15CJ6lower for contracted, large quantity deliveries; however, the higher number is
maintained as a conservative estimate.
The debarking and chipping costs of $15.00 per ton are based on actual costs realized by the Vermont
Wood Pellet company plus an additional adder for fuel expenses. Chipping and debarking can be
accomplished either on site of by the supplier of the feed stock. For the purpose of this analysis, both
chipping and debarking is performed outside the mill operations as a cost to the operation. It is
reasonable to assume that either the feedstock supplier or an independent operation will show interest in
chipping and debarking.
Acquiring the feedstock material with chipping and debarking represent soCJ6 of the operational costs of
the pellet mill.
Bagging and wrapping charges per ton of $25 are again based on actual costs, plus an adder for the
increased shipping charges to acquire the required materials. This cost includes the cost of the actual
40LBS pellet bags, shrink wrap to cover the stacked bags and a wood pallet on which the bags are stacked.
Bags can be stacked in one to one and a half ton (so or 75 bags per pallet) pallets for ease of
14 •
By: Andrew Boutin, Pellergy U.C
transportation and logistics. Wrapping the pallets in shrink wrap will allow for limited outdoor storage
and transportation of the pellets without damaging exposure from the elements.
Electricity at $0.18 per kilowatt hour is based upon Alaska Power and telephone published rates for
Category A3 Bulk Power as of February 10, 2012. The published rate is $0.17o6; however other usage and
monthly fees apply and have been amortized into the per kilowatt hour rate indicated. Electrical power
represents 12% of the operational costs of the pellet mill.
The financial model entries for Supplies & Misc.; Repairs, Building & Engineering; Equipment
Maintenance and Fuel are all based on actual operational experience with adders as appropriate for the
increased cost associated
Direct Costs $ unit
~
Raw Materials 70.00 purchased ton
De-Barking & Chipping 15.00 purchased ton
Dryer Fuel finished ton
Bagging & Wrapping 25.00 finished ton
Electridty 0.180 kWh
Supplies & Mise LSO finished ton
Repairs,Building & Engineering 6.00 finished ton
Equipment Maintenance 5.00 finished ton
Fuel s.oo finished ton
Hourly Wage 13.50 hour
Benefit Rate ~~ of payroll
Figure 1-5 indicating direct cost assumptions
OthcrCottt
Additional operational expenses have been considered and documented in the financial analysis. Figure
1.6 below documents the assumptions loaded into the model.
Other Costs Monthly Annual
Management 3,3(0 19,800
Rent 358 4,300
Real estate taxes
Insurance 1..200 14,400
Marketing Costs 500 6,000
Professional Fees 7:-D 9,000
Office and Admin 1.200 14,400
Testing & Certification 125 1,500
Figure 1.6 indicating other cost assumptions
This proposal contains COMPB'ITilON SENSmvE material intended Cor tbe l!lldiiSM use by the awtoot lndiaD Associaticm (CIA).
J5 •
By: Andrew Boutin, Pellergy llC
Of note in these assumptions is the fact that managerial salary is only loaded in for the six months of
operation. The monthly salary for management as well as rent have been supplied by the CIA, all other
entries are based upon operational experience. The Testing and Certification entl'y is intended to cover
third party testing of the end product to verify quality control and for labeling of the product under the
Pellet Fuels Institute guidelines (see www .pellet heat .org for more information).
flgegdgl
Although it is unclear as to the exact financing vehicles available to the CIA, assumptions have been made
and documented as a result of this financial analysis. As indicated in Figure 1.7 below, a mix oflower
interest loans at 4.2596 interest, equity financing and grant awards have been used in this analysis. The
Total estimated total project cost of $475.300 has been allocated between these three potential funding
opportunities as indicated below.
Flnanclns
Loan Rate 4.~
Loan term 1S
Loan Amount 118,825 $ 118,825
Loan Payment $ 10,000
Equity Finandng 2596 118,825
Grant Finandng (EIIg Costs) 50'i(i 237,650
Discount Rate 896
lnfaltlon Rate ~
Figure 1.7 indicating financing assumptions
Capita) Reauirementa
Capital cost requirements are documented in F'tgure 1.8 below. Of note is the fact that there is no
investment listed for drying equipment. 'Ibis is a direct result of being able to source feedstock material
that is ready to process into pellets directly (9-1496 moisture upon arrival).
The equipment costs shown are for the installation of a 1.5 Ton per Hour system with the major
components sourced from China. There are additional expenses included for freight, setup and
engineering costs that will be required.
The Electrical Control System identified primarily consists of dedicated Variable Frequency Drives and
PLC controls to enable system automation, monitoring and control.
In addition to the capital costs in equipment, engineering, installation labor, freight and setup costs; we
have also included a line item for $too,ooo for initial working capital to support operations. The costs
listed in Figure 1.8 below are a result of direct quotes, operational experience and escalation factors and
adders for SE Alaska. They represent, in some cases, a best estimate based upon experience; however, a
By: Andrew Boutin, Pellergy U.C
full Request for Proposal and quoting process should be perfonned to verify.
This proposal contains COMPB'ITI'ION 8ENS1'11VE material inteoded for the ClldusiYe uae by the Ollllloot IDdian As8ociatioD (CIA).
By: Andrew Boutin, Pellergy ILC
Equipment
Power
Price New/Used/
KW Refabricated
lnfeed System Hopper 1.200 New
Screw Conveyer 1.5 1.910 New
Hammermill 45 New
Hopper New
Cyclone New
Fan 4 New
Airlock 3 New
Drying System
Rotory Feeder New
Drum Dryer New
Collector/Airlock New
Ducting New
Biomass Burner New
Burner Control System New
Pellet System
Tube Magnet New
Surge Hopper New
Screw Feeder 0.75 New
Conditioner 7.5 7, New
Ring Die Pellet Mill 110 New
Pellet Mill Control System New
Cooling System
Conveyor 2.2 ~ New
Counterflow Cooler LS New
Cyclone New
Cooling Fan 3 New
Airlock L1 New
Rotory Shaker 0.75 4, New
Bucket Elevator 1.5 New
Bagging Sysytem
Bins, Gate, Level Indicators 1. New
Hopper 270 New
Semi-Automated 8a in Machine 1.35 8,240 New
Electrical Control Sysytem
Some Parts Optional 69,250 New
Misc. arts s.cm
Sub-Total Power/Equipment 183.15 195,300
Welding
Freight 1 •
Electrical/Installation 20,(1X)
Plumbing/Duct Installation 20,(JX)
Engineering and Consulting uum
Additional Installation Labor 5,00)
By: Andrew Boutin, Pellergy U.C
Misc. parts r s.(ll)l
Sub-Total Power/Equipment 24L45 195,300 r---' ,_
Welding 5,00)
Freight 120,<m
Electrical/Installation 2D,OJ)
Plumbing/Duct Installation 20,(JX)
Engineering and Consulting w,cm
Additional installation Labor 5,(Xl)
Sub-Total Freight & Installation r
175,000
·-Market develoment s.om
Feasibility -
Tech Review -
Office set-up i -
Sub-Total Admin & Development costs 5,000
PROJECT COSTS 375,300
-
Working Capital $ ~
Total capital Costs 475,300
Figure 1.8 indicating equipment purchase costs and operational kw draw for each piece.
Profit and Lots Prolections
Figure 1.9 below illustrates an example Profit and Loss projection for a wood pellet mill operation using
the following assumptions in addition to the previously documented assumptions above:
• Production will start limited and grow in time to reach an operational output of 4,200
tons per year;
• The Sale price of wood pellets from the mill is $285/ton and subject to the inflation rate
indicated;
• All sales are FOB Haines, AK with no transportation costs of finished product included in
operational expenses.
This proposal contains COMPE'ITI'ION SENSrnvE material intended for the ezdusM! use by the <lilllroot IDdian Association (CIA).
By: Andrew Boutin, Pellergy U.C
The projection indicates the potential to tum profitable within a very short period of time as the local
pellet market grows.
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Pellet Mill Recommendations
Based upon the information presented in the analyses above, the following is the recommendation of the
Pellergy / Vennont Wood Pellet team:
• The Construction of a 1-5 Ton Per Hour pellet mill operation. This operation will need to be an
engineered solution; however, the technology is proven as is the supply base.
o If accepting logs, the suggested lot size for the facility is 6 acres, if accepting chips, the
suggested size is 3 acres.
o A 6,000 square foot building would provide ample room for the pelletizing operation as
well as required indoor, covered space for the storage of pellets.
• Source initial material from the Yukon. The beetle killed white spruce bulk density and moisture
content far outweigh the added cost of material in operational expenses. Once the operation is
ready to expand, the addition of an on-site dryer will allow the operation to accept and utilize
locally harvested spruce and hemlock at 4o-6o% moisture.
• Plan for 48oV, a-phase power. Site the mill operations in an area serviced with this industrial
power supply.
• Invest in marketing, sales and distribution agreements in Juneau. This market has the greatest
potential for immediate sales to the SeaAlaska Corporation and immediate growth potential due
to the years of promotion the corporation has accomplished to date.
Risk Assessment
Overall risk assessment including potential mitigation efforts are detailed below:
Inyntln• ln too smell an OJICI'Idion
Risk: If the CIA were to build a pellet mill in SE Alaska with limited production capability, then demand
for the pellets produced will outpace production capability.
Probability: Moderate. While some potential exists, it is not likely that demand can spike in a very short
period of time. There are currently a limited number of equipment vendors and installers of pellet
burning equipment in the area, and very low demand for wood pellets. Even a 3-400% increase within a
few months is manageable.
Consequence: Low. Even if this becomes an issue, the impact is the mill sells out of product.
Mitigation: When planning and siting the facility, plan for expansion. Wood pellet mill operations on the
smaller scale (such as the scale recommended) are very capable of expansion and duplication given the
real estate to do so. Also be cautious about entering into long tenn supply contracts with remote
customers. If local demand increases dramatically, the mill operations should look to sell as much
product into the immediate local market as possible without added transportation costs.
TrenspnrtaUon Price fMeletion
By: Andrew Boutin, Pellergy lLC
Risk: If transportation prices rise dramatically, then the cost of raw materials and final product will
impact the financial model.
Probability: High. Given the volatility of oil prices, there is a fairly high potential for this risk to become
an operational issue.
Consequence: Moderate. As oil prices rise, so does the demand for wood pellets; however, price
expectations for pellets may cause even local customers to look at purchasing their pellets from other
sources.
Mitigation: Develop the local market as much as possible. This approach involves as little transportation
as possible in the finished product. Additionally, plan for the addition of the dryer unit up front in the
design process. This will give the operation to ability to add the unit quickly in the event the economics of
local timber become more attractive than transporting timber in from the Yukon.
Falling 011 Prices
Risk: If oil prices fall dramatically, then the market for wood pellets will not develop as required (i.e.
customers will not convert from oil to wood pellets).
Probability: Low. Historical numbers show an increase in oil prices as do all predictions on futures.
Consequence: High. If oil prices were to fall to below $3.00 per gallon for heating oil it becomes harder
for individuals to make the investment in converting to wood pellets. There are still savings; however,
they are reduced to the point where the investment may not be justified. This will have a major impact on
the pellet mill's ability to sell wood pellets at a competitive price as over 6596 of the operational costs will
not respond proportionally to lower oil prices.
Mitigation: Develop the local market as much as possible. This approach involves as little transportation
as possible in the finished product. Additionally, plan for the addition of the dryer unit up front in the
design process. This will give the operation to ability to add the unit quickly in the event the economics of
local timber become more attractive than transporting timber in from the Yukon.
Aclden In Flnendal Analuil
Risk: If the adders in the financial analysis above fall short of realistic numbers, then the capital and
operational costs may be higher.
Probability: Moderate. There are many opportunities to underestimate how much more items of
importance cost in SE Alaska than in the lower 48. The financial analysis includes adders; however, the
reality is that there are no manufacturing operations to be able to pull more realistic numbers from. The
numbers are based on the experience of an operational small-scale wood pellet mill in Vermont.
Consequence: Moderate. There are other drivers in the analysis that tend to be more conservative and
may outweigh small differences; however the impact of this risk becoming an issue can mean the
difference between a profitable venture and one with losses.
2 •
By: Andrew Boutin, Pellergy U£
Mitigation: Perfonn an in depth analysis using the financial prediction tools provided and actual quotes
from established vendors and transportation companies. Also, have the engineering plans produced such
that actual estimates can be solicited.
Pellet Ouallty. Feedatock to Flplehcd Ratio and Molature Content
Risk: If pellets cannot be produced as predicted in the analysis, then greater operational costs may be an
issue.
Probability: Low. Based upon the combined findings of both reports and investigations done by the CIA
indicate the availably of feed stocks of the quality and quantity described herein. Furthermore, the USDA
has undertaken and produced a study testing the quality of local wood supplies for the production of wood
pellets with good results (Brackley, Allen M.; Parrent, Daniel J. 2011. Production of wood pellets from
Alaska-grown white spruce and hemlock).
Consequence: Moderate. Having to source feed stocks from multiple suppliers or from all local sources
initially will mandate the use of a dryer system and higher operational and up-front costs. Furthermore, if
the beetle killed white spruce does not produce pellets as predicted; these measures may have to be
incorporated as a result.
Mitigation: Perfonn an initial pellet production test using the beetle killed feed stocks from the Yukon.
This pilot project would include procuring some of the typical logs and transporting them to a facility to
be processed. Measurements should be taken at harvest and at every step of the process to verify
perfonnance as predicted.
Conclusion
It is the opinion of Pellergy U£ and the Vennont Wood Pellet Company that a viable wood pellet
operation can exist in Haines, AK. The scale of this mill, as described in this document is not typical of
wood pellet mill operations throughout North America; however, the technology and equipment exist.
Furthermore, because the Vermont Wood Pellet Company has set up a smaller scale wood pellet mill
within the last five years and has run and operated this mill to provide the region with a very high quality
pellet, there are some lessons learned and resources that can be accessed to assist in setting up such an
operation.
Chris Brooks of the Vennont Wood Pellet Company is the point of contact for future inquiries regarding
the path forward in system specification, design and implementation. Chris has a network of equipment
vendors, engineers, pellet mill operators and contractors that are well suited to assisting in the setup of a
small scale mill operation in Haines. Contact information for the Vennont Wood Pellet Company is as
follows:
Vennont Wood Pellet Company
Chris Brooks, President
1105 Route 7B Central North Clarendon, VI' 05759
This proposal eontains COMPE'ITI10N SENSmvE material intended for the erdusive use by the Cbillroot Indian Association (CIA).
a •
By: Andrew Boutin, Pellergy LLC
chris@vermontwoodpellet.com
Phone: (8o2) 747-1093
Author Contact Information
All coiTeSpondence regarding this report should be forwarded to:
Andrew Boutin
General Manager
Pellergy LLC
16 Railroad Street
Barre, Vermont o6541
andv.bout in\ii' Qcllcrgy.com
Phone: +8o2.6594866
...
By: Andrew Boutin, Pellergy U.C
Appendix A: Local Sitka Spruce Evaluation
Using data from the CIA Supplied study and the values for locally sourced Spruce and Hemlock, an
alternative analysis was run and presented below.
Operatlogel Com
The same operational schedule of 6-months per year was used to evaluate production output and finances
for the local wood supply scenario. Therefore, schedules and production capability remain unchanged.
Figure A.t below shows the projected first year production capability given the use of locally sourced
feedstock.
Startup
Production Actual Full Capacity
-~
Shut down weeks 24 6
Operating Hours 1,120 7,728
Production 1,680 11,592
Figure A.t indicating actual production capacity and full production capacity
Using locally sourced feed stock has two impacts on the operational assumptions detailed in Figure A.2
below: The Raw /Finished ratio and the total operational KW (and therefore the KWh requirement of the
facilty).
The raw to finished ratio of 24 indicated below is indicative of using the locally sourced wood supply of
primarily Sitka Spruce with some Hemlock. This is higher than the analysis above due to the increased
bulk density of the Yukon sourced White Spruce over that of the local wood species.
The kilowatt draw for the mill operations is a result of the estimated system total draw of all electrical
loads in the mill operations. A complete listing of the equipment is presented later with a breakdown of
the estimated electrical draw for each component of the mill operations. The main addition to the
electrical load is the drum dryer operation. This is necessitated due to the higher moisture content of the
local wood supply.
11m proposal contmns OOMPEITI10N SENSrnvE material ioteuded for the emusiYe uee by the Cbillloot Indian Aasodation (CIA).
By: Andrew Boutin, Pellergy U.C
ASSUMPTIONS
Operations
Mill size ~5 tons/hour
Shifts per week s
Weeks/Year 28
Workers/shift 4
Raw/Finished Ratio 2.4
KW 241.45
KWh 271,QX)
Figure A.2 showing operational assumptions for mill operations
Direct Costs
Direct operational cost assumptions as documented in Figure A.3 below are updated for locally sourced
wood feedstock. This list of assumptions is based upon raw material costs as identified in the CIA
provided wood availability study for raw materials coming from local suppliers at $43 per green ton. The
$43 per ton figure for raw materials landed in Haines is on the low side of what can be expected, per this
study.
All other direct costs remain as detailed in the report above.
Direct Costs $ unit
Raw Materials 43.00 purchased ton
De-Barking & Chipping 1.5..00 purchased ton
Dryer Fuel 12.00 finished ton
Bagging & Wrapping 25.00 finished ton
Electridty Q.220 kWh
Supplies & Mise ~so finished ton
Repairs,Building & Engineering 6.00 finished ton
Equipment Maintenance 5 .00 finished ton
Fuel s.co finished ton
Hourly Wage 13.50
Benefit Rate ~
Figure A.3 showing direct costs for mill operations
By: Andrew Boutin, Pellergy U.C
No Additional operational expenses above and beyond what was analyzed for the Yukon sourced wood
were added to the analysis.
The addition of the drum dryer and required burner/components for deying locally sourced wood
feedstocks adds just over $67,000 to the total capital requirements of the project. For the purpose of this
analysis these costs are not added into the financing model and are therefore a part of the required initial
capital investment. An overview of the equipment required along with the KW draw of each component is
listed in Figure A4 below under the •Drying System• heading.
Capital Bcgulremeog
Total Capital cost requirements are documented in Figure A4 below. All other costs remain the same
with the addition of the deying system to handle the locally sourced wood.
Equipment
Power
Price New/Used/
KW Refabricate
d
lnfeed System
r-
Hopper 1,200 New
Screw Conveyer 1.5 1.970 New
Hammermlll 45 5,30) New
Hopper 450 New
Cydone 1,500 New
Fan 4 1.501 New
Airlock 3 1,800 New
Power
Price Drying System KW
Rotory Feeder 1.1 2.065 New
Drum Dryer 29.4 35,400 New
Collector/AIrlock 20.7 ~(JJ) New
Ducting 2.400 New
Biomass Burner 7.1 20,650 New
Burner Control System 2.700 New
This proposal contains OOMPB'ITI10N SEN8111VE mata'ial inteDcled for the erdusM use by the Cbilllloot IDdian As1ociation (CIA).
7 •
By: Andrew Boutin, Pellergy U.C
Pellet System
Tube Magnet 1,360 New
Surge Hopper 600 New
Screw Feeder 0.75 2.650 New
Conditioner 7.5 7,50) New
Ring Die Pellet Mill 110 45,(D) New
Pellet Mill Control System 12.&) New
Cooling System
Conveyor 2.2 6,(11) New
Counterflow Cooler 1.5 m.no New
Cydone l,(D) New
Cooling Fan 3 530 New
Airlock 1.1 Em New
Rotory Shaker 0.75 4,Em New
Bucket Elevator 1.5 3,600 New
Bagging Sysytem
Bins, Gate, Level Indicators 1,720 New
Hopper Z1D New
Semi-Automated Bagging Mad 1.35 8,l40 New
Electrical Control Sysytem
Some Parts Optional 69,250 New
I
Misc.l:!arts s,cm
Sub-Total Equipment 241.45 262,515
8 •
By: Andrew Boutin, Pellergy U.C
Welding
r--· s.cm
Freight 12D,tm
Electrical/Installation 20,000
Plumbing/Duct Installation 20,(D)
Engineering and Consulting lO,(D)
Additional Installation Labor S,CDJ
Sub-Total Freight & Installation 17S,CXX)
.---
Market develoment S,CD)
Feasibility -
Tech Review -
Office set-up -
Sub-Total Admin & Development costs 5,00>
PROJECT COSTS 442,515
Investment -
start-up, Equipment, Raw Materials, Test Mill, and R & D
Working Capital s .~cm
!Total (apltal Costs 542,515
Figure A.4 showing total equipment costs and operational power requirement for mill operations using
locally sourced wood
Profit and Log Projections
Figure A.5 below illustrates an example Profit and Loss projection for a wood pellet mill operation using
the following assumptions in addition to the previously documented assumptions above:
• Production will start limited and grow in time to reach an operational output of 4,200
tons per year;
• The Sale price of wood pellets from the mill is $285/ton and subject to the inflation rate
indicated;
• All sales are FOB Haines, AX with no transportation costs of finished product included in
operational expenses.
The projection indicates the potential to turn profitable within a very short period of time as the local
pellet market grows.
This proposal eontaios COMPETrnON SEHSD'IVE mmrw inteuded for the erdusive use by the Chi1koot IDdian Aaaorietion (CIA).
_...,. 1 l J ·-5 ~ -'--· -7 I ..!.., n ~ U U lJ U 15 16 17 11 Jt :Ill
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~ s s s s s s $ s s s s
,_ s s $ s s s s $ s s $ $ s s s s s s s $
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.. NO
-1-.wl
Figure A.5 iDdicating an estimated zo-Year Profit and Loss potential for a pellet m.iJl operation in Haines, AK
Appendix A Conclusion
Based upon the infonnation presented in the analyses above, the financial predictions show the higher
operational costs associated with the locally sourced wood and an operational loss for the operation. 1be
primary drivers in the analysis are:
1. 1be lower bulk density;
2. 'Ibis higher moisture content;
3. And, relatively high cost of the locally sourced wood.
Appendix A is provided to give insight into the recommendation of the main feasibility analysis and to
identify these drivers.
\Xlood Fuel Supply Opportunities
1 -lainL:~~ 1 \L-t~.;J,;t
Prepared for:
C l1ill~ C) C) t l11cli ~111 ./\ s s C) cia ti c111
July 11, 2010
Prepared By:
Innovative Natural Resource Solutions LLC
107 Flm Street, Suite 100-G
Portland, ME 04101
207-772-5440
www.inr.llc.com
37 Old Pound Road
Antrim, NH 03440
603 -588-3272
Inttocluction
This document serves as an independent assessment of wood availability, and factors influencing
availability and pricing, for a proposed wood pellet plant and possible wood-fired combined
heat/ power facility, the size of both as yet determined, to be located in or near the town of Haines,
Alaska. Although the size and wood supply needs have not been detennined as of this time, it is
assumed that the facility (ies) may use up to 50,000 green tons of woody material to start. This
analysis is based on that assumption. Information contained in this document was devdoped by
Innovative Natural Resource Solutions I.LC .
Innovative Natural Resource Solutions I.LC (INRS) was hired by the Chilkoot Indian Association to
conduct these investigations and analyses and to compile this report. INRS has decades of extensive
experience with the forest products industry and loggers in North America.
INRS btlit~~ts the i'!formation mntaineti in this rrport /Q he comd, based II/JO" illjormfllion sotmes 1111 tiemt
reliable. Giwn the t!J1111111it nallm of lll()()d markets anti biomass, INRS ti«s ll()t 'Wtlmlnlte information in
this rrport against aJJ nrors. This rrport mntains some prttiidions, forr«JSts anti .forwarti-lboking slalllllntls
that are based lljJon the proftssional knowletige, txpnientt anti opinion of INRS. These prttiidions anti
foretasts arr not g11amntm of fott~rt tt~tnls.
lppoyatiyc Natwal Rcsowcc Solutiopa 1LC
FO\mded in 1994, Innovative Natural Resource Solutions I.LC (INRS) is a full·service consulting
finn specializing in the forest industry, natural resource conservation/sustainability, and renewable
energy.
INRS has worked with many parties, public and private, on the devdopment of new biomass energy
facilities around the United States. The finn is currendy working with devdopers of biomass or
biofud projects in Maine, New Hampshire, New York, New Jersey, Vennont, Massachusetts,
Indiana, Virginia, Georgia and California in addition to this Alaska effort.
A complete description of INRS activities in biomass energy devdopment, including a partial client
listing, can be found at www.inrslkcom
Innovative Natural Resource Solutions LLC
Wood Availability Analyse , Chilkoot Indian
Association, Haines, Alaska
July 11, 2010 Pg 2 of 36
Table of Contents
&ecutive SlllllJ1mJ
1. Market Structure for Forest-Derived Wood
2. Biont:lss ~ Roundwood Availsbility-~
3. Species ofTunber Available
4
5
9
4. Wood Products Manuf.actming and Competition in the Reginn
21
22
26
26
28
31
33
5. Factors Influencing the Price of Biomass Fuel
6. Diesel as ~of Bionnss Production Costs
7. Cost Estimates for Biomass Supply
8. Supplier Base
9 . Biomass Supply Infrastructure Development
Appendix A -Investing in Supply Infrastructure - A Case Study 34
Table of Figures & Tables
Figure 1. Schematic of Products Derived from a Single Tree .................................................................................... 6
Figure 2 Log landing with slasher (left), chipper (right), and wood sorted by product. ....................................... 7
Figure 3. Wood sorted for chipping ............................................................................................................................... 7
Figure 4. Close-up of chipper on log landing ................................................................................................................ 8
Figure 5. Trailer for whole-tttc chips. with opening for chipper to blow chips into ............................................. 8
Figure 6. Fifty Mile Radius of Haines. AK .................................................................................................................... 9
Figure 7. Timberland Ownership within SO Miles of Haines. AK .......................................................................... 10
Figure 8. Species Mix, Tunberlaod, SO Mile Radius ofH~s. AK ........................................................................ 11
Figure 9. Portable sawmill, Haines. AK ....................................................................................................................... 13
Figure 10. Cottonwood, Klebini River valley .............................................................................................................. 14
Figure 11. Haines State Forest map .............................................................................................................................. 15
Figure 12. Yukon Territory map ................................................................................................................................... 17
Figure 13. Beetle kill areas, Yukon ................................................................................................................................ 18
Figure 14. Beetle kill, Yukon .......................................................................................................................................... 19
Figure 15. Beetle kill spruce logs ................................................................................................................................... 20
Figure 16. Wood Using Markets. southeast Alaska area ........................................................................................... 22
Figure 17. Icy Straits Lumber Company ...................................................................................................................... 23
Figure 18. Dimok Lumber Company ........................................................................................................................... 24
Table 1. Standing Inventory and Growth-Removals-SO Miles of Haines, AK .................................................. 10
Table 2. Haines State Forest Biomass Availability ..................................................................................................... 16
Table 3. Users of Wood in Southeast Alaska area ...................................................................................................... 25
Table 4. Diesel costs in biomass production ............................................................................................................... 21
Table 5. Estimated Biomass Fuel Prices. Haines, Alaska .......................................................................................... 29
Table 6. Estimated Biomass Fuel Prices, Distant Sources ........................................................................................ 30
Table 7. Loggers in Haines area .................................................................................................................................... 28
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July 11, 2010 Pg 3 of 36
Executive Summary
The Chilkoot Indian Association hired Innovative Natural Resource Solutions ILC (INRS) to
conduct a wood availability study for a proposed wood pellet mill and possible wood-fired
combined heat/ power facility to be sited near or in Haines, Alaska . The proposed facilities may
need up to 50,000 tons of woody biomass annually as feedstock for these plants.
INRS developed information about biomass sourcing for the proposed facility using three different
and complementary approaches.
• First, the timber availability in the 50-mile radius area around Haines was detennined from
the USDA Forest Inventory and Assessment data set that over 45 million tons of standing
timber exists on the over 156,000 acres of land that is considered "timberland" -land that is
biologically capable of growing timber crops. This data also shows that annually on public
and private land in the area, net growth, the amount of growth of the forest over and above
mortality and harvesting, is over 487,000 tons of timber.
• Secondly, using data and information provided by the State of Alaska, Haines State Forest,
between 35,000 and 65,000 tons of biomass is available for harvest annually on the state
ownership from its harvestable 42,000 acres of forestland
• Lasdy, more distant sources of b iomass are available that can be used to supplement the
more local sources of biomass available in the Haines area. Over 10,000 tons of sawmill
residue biomass is available annually from two somewhat distant sawmills in the Yukon
Territory and in Hoonah, Alaska. Additionally, substantial amounts ofbeede kill white
spruce roundwood are available from the Yukon. Although price may be an issue, easily the
entire biomass need identified for the proposed Haines facilities could be fulfilled with the
beede kill wood
lhe two major species available for biomass production in the Haines area are sitka spruce and
western hemlock. Additionally, black cottonwood, not currendy utilized, is also available in lesser
quantities. Biomass from these species in the immediate Haines area can likely be sourced in
roundwood form for approximately $ 43 to $ 46 per delivered green ton. Beede kill spruce from the
Yukon can likely be sourced for approximately $ 70 per delivered green ton. Sawmill residue from
the Yukon can likely be sourced for approximately $120 per delivered ton in wood chip form while
residue from Hoonah can be purchased for approximately $ 60 delivered, per green ton in chip
form.
The preferred source of biomass to supply the proposed wood using facilities is the material that is
available on the Haines State Forest property and other private lands in the greater Haines valley
from town to the Canadian border along the Haines highway corridor. A challenge in getting this
biomass to market is the small and underutilized logging infrastructure that exists in the Haines area.
five logging companies, all single person operations, currendy operate in the area. Collectively,
these companies are operating at less than 40% of capacity considering labor and equipment. A new
market for low quality material created as a result of a wood pellet and combined heat/power
facility(ies) along with sufficient incentives, should increase the logging infrastructure in the first few
years in the I Iaines area to be able to fully utilize the available biomass.
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L Market Structure for Forest-Derived Wood for Energy Production
Wood for use as biomass fuel, or for the production of wood pellets, is the by-product of timber
harvesting for house logs, sawlogs and other lower-grade roundwood (where those markets exist).
The economics and availability of biomass fuel rests upon the harvesting of higher-value products,
with the tops, branches, off-spec wood and economically undesirable species potentially available as
biomass fuel.
On timber harvesting operations, the landowners and loggers are generally looking to harvest house
logs, sawlogs (for lumber) and low-grade roundwood (for firewood or pulp and paper mills where
this is a geographically accessible market), both generally higher value products than biomass.
However, much wood does not meet the rigid specifications for these higher value markets. For
example, a length of tree may be crooked, have rot, or have a split in it. For this wood, as well as all
tops and branches, loggers have (three) choices: they can return the wood to the forest and allow it
to decay, or they can chip the wood that does not meet sawlog and pulpwood specifications or
move this lower grade material to markets as roundwood. Most loggers practice a combination of
these approaches in other places in Canada and the lower 48 US states.
In the Haines Borough area, the lack of forest product markets has resulted in a very limited logging
work force . The companies that are operating are small and use more traditional equipment
(chainsaws as the only tree felling tool). This logging infrastructure, which will be discussed in more
detail later in this report, creates some challenges when contemplating the development of wood
energy production or wood pellet manufacturing in the Haines area.
Loggers and landowners make their money from growing, harvesting and selling veneer, house logs,
sawlogs and (to a much lesser extent) low-grade roundwood, where all of those markets exist. The
health of these markets, particularly the higher value markets, is what allows for the economic
opportunity to conduct a timber harvesting operation. If these markets are not strong, as in the
I Iaines, Alaska area, or suffer a significant downturn, less biomass may be available in the
marketplace because fewer individuals will be conducting timber harvesting operations. Discussed
later, the value of low grade wood products used for facilities such as the proposed Haines wood
pellet or wood energy plants that are the subject of this report, are unlikely to be sufficient for
loggers to operate as the sole, or significant component, of a timber harvesting business .
In general, when a single tree is harvested (and when a full suite of wood markets exist in the area), a
number of products can be derived;.
• The bottom length (generally eight to sixteen feet or even up to twenty-four feet on occasion) is
often straight with relatively few defects such as knots or branches. This section is generally a
veneer log, sent to a market that slices or peels the log for plywood, or more commonly a house
log or sawlog, the latter of which is sent to a sawmill for lumber production.
• lbe next lengths (again, often eight to twenty-four feet) may become a variety of products. If it
is straight and has few defects, it is a veneer log, house log or sawlog. If it is smaller than the
size sawmills require, or has a large number of defects (rot, knots, split, etc.), it will be sent to a
pellet mill or to a pulp mill for paper manufacturing. If it is not straight (and thus cannot be
cleanly debarked) it may be chipped for use in biomass production or mulch, or left in the
woods if those markets are not economically available.
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• The tops and branches from all of the tree grades harvested can be chipped for biomass energy
markets, chipped for mulch markets, or left in the woods.
Figure 1 shows the sections of a single tree and the products derive<f; figures 2 through 5 show
parts of a lower-48 logging operation that will produce whole-tree chips for a biomass power plant.
Figure 1. Schematic of Products Derived from a Single Tree
Tops and bnnches-Chipped for
biomass or mulch. or left iD \'rOods
S ·to 16 ' -Depending upon quality and
loc:al markets, smt to sat\ mill, pulp nUll
orc:hipped
S 'to Hr -Saw log-smtto sat\mill
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Figure 2. Log landing with slasher (left), chipper (right), and wood sorted by product.
Figure 3. Wood sorted for chipping.
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Figure 4. Close-up of the business end of a chipper on log landing.
Figure 5. Trailer for whole-tree chips, with opening for chipper to blow chips into.
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2. Biomass and Roundwood Availability-Haines, Alaska
INRS has used several methods to estimate wood availability in the area around Haines, Alaska.
• First, a review of the data available &om the USDA Forest Inventory and Analysis databases
was conducted in order to understand the standing wood volume in the forests within a 50-
mile radius from Haines (see Figure 6).
• A second analysis was conducted &om data on the Haines State Forest area to understand
what is standing and available there.
• A final approach assesses the potential for acquiring wood energy resources &om more
distant locations, namely, &om the north in British Columbia and the Yukon Territory of
Canada and from the areas south of Haines within southeast Alaska.
2A. USDA Forest Inventory and Analysis -Using the USDA Forest Inventory & Analysis
database;;;, INRS determined the growth and drain (mortality and harvest) for a region within a 50-
mile radius of Haines, Alaska. INRS used the most recent complete FIA information, which uses
data collected between 2004 and 2009 for southeast Alaska". 1bis data covers only the U.S. area and
includes 2,237,091 acres of land area (within the U.S.).
Figure 6. Fifty Mile Radius of Haines, AK
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INRS restricted its assessment to timberland -those acres physically and legally capable of
producing commercial timber cropsv. Of the over 156,680 acres of timberland within fifty miles of
Haines: 7% is held privately; 18% is owned by the federal Bureau of Land Management; 21% is in
the Tongass National Forest; and 55% is in State Forest ownership. By policy, virtually none of the
federal land is available for timber harvesting. An estimated half of the private land may be available
for harvest due to landowner attitudes and accessibility. Also by policy, approximately 50%, or
42,000 acres, of state land is available for timber harvest out of the 85,658 acres of timberland in the
area.
Figure 7. Timberland Ownership within 50 Miles of Haines, AK (acres)
10737
• National Forest
• Bureau of Land
Management
• State Forest
• Private
With the existing minimal timber markets in place in the Haines area, for the 50 miles surrounding
Haines, annual~ ofrouruiwood on the timberland ages exceeds harvest b,y over 487.901
gteen tons per year.
Table 1. Standing Inventory and Growth-Removals-50 Miles of Haines, AK
Standing Volume
Annual Growth
Annual Removals
Growth less Removals
Green Tons
45,185,084
576,119
88,218
487,901
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The FIA only measures the roundwood portion of the tree, not tops, branches, or other parts
suitable for biomass fuel. When these are included, INRS estimates that growth levels exceed
harvest levels by 633,000 green tons per year.
The species mix on the timberland in the region is roughly one-third softwood, two-thirds
hardwood The figure below shows the breakout by species.
Figure 8. Species Mix Standing Timber (%), on Timberland, 50 Mile Radius of Haines, AK
paper birch black subalpine fir
mounta in "fialder cottonwood 1%
hemlock 0% __ ...__,
9%
lodgepole pine l _____________ O% ________________ ~
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2B. Haines State Forest Wood Availability Review
The major forestland base available, and most importandy, for timber harvests and potential as a
supply for the proposed wood pellet and combined heat/power facility in the 50-mile radius from
Haines, is land within the Haines State Forest. Any federal land within the Tongass National Forest
in this area is largely off-limits to logging as part of the policy of the Tongass. Though some timber
sales on the Tongass are expected to move ahead in the next 5 years based on recent court rulings,
these sales are all in the southern area of the Tongass, far distant from the Haines area. While the
FIA data reviewed above indicates 10,737 acres of private timberland in the 50-mile radius area, for
the purposes of this study, only a minor amonnt of timber is expected to become available from
these lands. The result is that the Haines State Forest, with a management plan and goal of
providing timber to the local economy (though in limited amounts given the actual forest base that
could produce timber), is the only nearby forest area that will produce significant wood for the
proposed facilities.
From the Haines State Forest Management Plan, adopted in 2002:
On ]11fy 1, 1982, Alaska took the first step in the dnllopmtnl of a system of Sta11-o11111ed lands
legislati~~e!J dtdkattd to the 11111/tiple liSt managt~~~tnl of forest resomres. Alaska Slallltes (AS)
41.15.300-41.15.330 tstablishtd the Haines State Forts/ R.tso~~rn Managt~~~tnl Ana (State Forest).
At the same time, AS 41.21.610-41.21.630, established the Alaska Chi/kat Bald Eagle Prestr~~t
{Prestr~~t), which is SNmJIIndtd i!J the Haines State Forest R.tsolm't Managt~~~tnl Ana. This legislation
IPaS the res11/t of cooperation among a host of di~~trst intmsl grotps.
Tht legislati~~e intent in establishing the State Forts/ stalls:
''The primary pmposts for the establishment of the Haines Stall Forest R.tsolm't Managmttnl Ana an
the lltilization, pnpttlllllion, CtJnstrtNJtion, and protet/UJn of the land and 11/(J/tr, inciNding, b11t notlilllited
to, tht liSt of nnt~~~able and nonn11t111able reso11rm thro11gh 11111/tiple-mt 111anagt111tnl, a11d the CtJIItin~~t~tion
of other btntficialmts, inclllding traditionalmts and other ncnatiolllll adivitits. "
Haines State Forest includes 286,208 acres of mosdy forest land (green oudined area, Figure 1 1). Of
that, 42,000 acres are available for timber harvest under the management of the State of Alaska,
Division of Forestry.,;. An additional accessible and operable 6,500 (approximate) acres is under the
jurisdiction of the University of Alaska and seen in Figure 11 as orange hatched area. The State's
Mental Health Trust has approximately 2,120 additional acres that are available for harvest.,;;.
A formal forest inventory was last conducted in 1985 on the Haines State Forest. This inventory
indicated 164 tons/acre of standing timber. The species breakdown is 52% sitka spruce, 45%
western hemlock and 3% cottonwood. This timber volume data, with adjustments for growth and
mortality and harvest over time, was the data used for calculating the allowable harvest levels, or
allowable cut, for the forest. The Haines State Forest Management Plan provides for an annual
allowable cut of 5.88 million board feet of timber from the 42,000 acres of forest designated for
timber harvest. In the 8 years since the adoption of the plan, an average of 7 50,000 board feet has
been cut in any given year. The allowable cut calculations provide for harvesting on up to 294 acres
per year of the State Forest. Currendy, only approximately 30 acres are harvested annually. The
allowable cut level has not been reached because there is the lack of forest products markets in the
area within reasonable transport distance from the Forest. The nearest full-time substantial timber
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markets for forest products are at the Icy Straits Lumber Company in Hoonah, Alaska, over 90 miles
distant via water, and Dimok Lwnber Company in Canyon Creek, east of Haines Junction in the
Yukon Territory, Canada, some 164 road miles from Haines. Several portable sawmills exist and are
being operated in Haines (see Figure 9) but these are insignificant users of wood and are not
considered true year-round forest products markets of substance. See market competitors section
later in this report for a review of other forest products markets in the region.
Figure 9. One of several operating portable sawmills in the Haines, AK area
With the forest inventory data available and adjustments made by State Forest personnel, it is
estimated that a minimwn of 21,000 tons of biomass could be made available annually. A reminder
that annual harvests have been less than 13% of allowable cut since the plan was adopted in 2002.
Haines State Forest staff advise that the 21,000 tons annually is very conservative and could be off
by 50% or morew;. There has been no experience harvesting biomass material and so estimating the
amount available from a typical harvest is very difficult. Several harvesting operations viewed
indicate a substantial amount of lower quality and small woody materials is left in the forest during a
typical harvesting job from the traditional harvested species of sitka spruce and western hemlock.
1bis material could add substantially to what is available and estimated by state forestry staff.
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The Haines State Forest inventory includes data on most of the timber resources on the State Forest
property. It does not, however, include data on several species that could find a place if a low-grade
market for biomass were developed for pellets or power generation in Haines. Cottonwood (see
Figure 1 0) is a species that is found throughout the valley bottom areas of the Forest near rivers and
creeks and also along timber roads and other bottomland roads. Although no timber inventory data
is available, officials at the Haines State Forest" estimate that substantial volumes of cottonwood are
standing on operable areas of the Haines State Forest and that these trees could add substantially to
the volumes of sitka spruce and western hemlock that are traditionally harvested. Data derived from
the USDA Forest Service Forest Inventory and Analysis for the state forest show that 646,000 green
tons of cottonwood are standing on the 85,658 acres of timberland in the State Forest. Assuming
that approximately half of this acreage on the Forest is available for harvesting, then we can assume
that approximately 323,000 green tons of standing cottonwood is available on the State Forest.
These volumes could double the amount of material available from the State Forest -an additional
20,000 tons per year is possible for a substantial number of years.
An important note here is that the staff at the Haines State Forest believes that, while there is still a
substantial amount of timber available to harvest from the easily accessible areas off the main
existing logging roads on the Forest, there will be a need for investment in additional new logging
roads to access other areas that need to be harvested. There is question as to how this work can be
financed given the small size of the existing logging companies in the Haines area.
Figure 10. Cottonwood in .Klehini River valley, Haines Borough, AK
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Figure lL llaines State Forest
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The Haines State Forest sourcing of biomass for a pellet and/or combined heat/power facility in
Haines holds significant promise, though the lack of logging capacity in the area could put
constraints, at least initially, on supply (see Section 8 for a more thorough review of logging capacity
in the Haines area).
Table 2 summarizes the likdy annual availability of biomass from the State Forest property. As
stated above, the existing logging capacity may have difficulty harvesting this volume of additional
woody biomass.
Table 2 Summary of annually available biomass from the Haines State Forest (green tons)
Cottonwood
TOTALS
15,000
35,500
25,000
65J)OO J
2C. Remote Sources of Biomass for Haines pellet and/ or CHP plant
As described in the previous section, the most logical source of biomass for a Haines-sited pellet
and/ or combined heat/power facility is the Haines State Forest because of the readily available
timber, proximity and an existing and eager (though constrained) logging infrastructure (see previous
and next sections). However, other readily available sources of biomass exist -from distance
locations north and south and should be explored as well.
2C1. Yukon Beetle Kill Wood
Over 1.6 million acres of Yukon forest has been killed or partially killed by the bark beetle
infestation since the 1990sx. An estimated 5 to 14 billion board feet of~. primarily white
spruce, has been killed and is standing dead in the southwestern Yukon Territory area to the north
and east of the Kluane National Park and Preserve and north of Haines, Alaska in Canada (see
Figures 12 and 13)... This represents some 25-70 million tons of standing dead material. Although
the beetle outbreak is considered waning, additional thousands of acres are identified as new kill
areas each year by government officials .
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Figure 12. Yukon Territory
Bu~ Y U K 0 N
bndfilo
l>esbuction Bay T E R R I l'&
ill C A N A D A Tlldltnl
Be.ar Creek
lt.alnes Junction
y
TOftPS$ National F01est
of Allfkl
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a.-r
ub•ro•
y
... . j .... ,
Eno
.......
'
Figure 13. Beetle Kill Areas in the western Yukon Territory
SPRUCE BHTI.E CUMUl.AnvE
~ ' ~
/, ~ ~
~ ~
~ ~
-
Source: GIS Section, Forest Management Br.mch, Energy, Mines and Resources, Government of Yukon, 2008
Innovative Natural Resource Solutions U.C
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In recent years, the Territorial government has been making more and more of this timber available
for harvest. With a dry climate, compared to the Haines area, beede kill spruce will not rot or decay
for a decade or more. The timber in these trees generally can be sawed into timbers for years after
death, but the extreme cracking due to the shrinkage in drying generally prevents the trees from
being sawed into boards or small diameter structural pieces.
Figure 14. Beede Kill White Spruce in the Yukon Territory
Dimok Lumber Company in Canyon Creek, Yukon, is in a position to supply large volumes of
beede kill white spruce to an operation in Haines. This material is already being shipped to a few
selected firewood companies in the Haines area on 28 cord truckloads as roundwood. The delivered
price to Haines for this material is $155 /cord or approximately $70 /ton. The owners ofDimok
Lumber are very eager to provide large volumes of this material to the Haines area . Figure 15 shows
the intact several year old beede kill white spruce.
Only limited by trucking capacity, tens of thousands of tons ofbeede kill spruce would be available
via this source. Backhaullogs cut in the Haines area could reduce the trucking costs considerably.
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Figure 15. Beetle killed white spruce in at Dimok Lwnber in Canyon Creek, Yukon
2C2. Biomass &om Yukon Ieaitocy sawmill
Dimok Lumber Company also has mill waste wood available. As the sawmill cuts lumber, cants and
logs for houses and cabins, it generates waste wood material in the form of slabs and sawdust.
Although a chipper is on-site (originally acquired for other purposes), the waste material from the
mill is simply piled near the mill and open air burned when the storage space runs short.
Dimok Lumber Company produces approximately 2.3 million board feet of lumber and
house/ cabin logs per year. The mill generates an estimated 5,000 tons of mill residue per year. 'Ibis
material, with currently no market, could be purchased in chipped and sawdust form, delivered to
Haines, for approximately $100-150 per ton. Price is not dear because there is no current market
for the material and negotiations need to occur between the pellet and combined heat/power
facilities owner to determine market price. See summary of pricing issues in later section.
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2C3. Biomass from Southern Sources in Soutbeast Alaska
The likeliest other source of biomass that is currently available would come &om Icy Straits Lumber
Company in Hoonah, Alaska. This sawmill, also producing house and cabin logs, lumber and more
recendy, finished lumber materials, saws approximately 2 million board feet per yearm. The mill
currendy generates over 7,000 green tons of waste wood in the form of slabs and sawdust. This
material currendy has no market and is burned in piles when the supply takes up too much storage
space. Delivered at the dock in Haines, this material would cost between $35 and $45 /green ton
based on barge loads of approximately 3,000 tons. Barge shipping costs from Hoonah to Haines (90
miles) are approximately $5-6/green ton.
A final source of sawmill residues, &om Viking Lumber Company in Craig, Alaska (some 290 water
miles south) may be too distant to make economical sense with barge transport costs estimated at
$20-30/green ton &om that location. Residue cost estimates &om this location are estimated at $30-
50 I green ton loaded onto a barge.
3. Species of Timber Available
Figure 8 on page 12 shows the relative abundance of tree species growing in the 50-mile radius area
within the US &om Haines. The major species, and moisture characteristics, for trees to be sourced
in the Haines area are as follows:
a. Sitka spruce (Pieta JitdNIISiJ)-This high quality species is used for a variety of structural and finish
solid wood purposes. Lower quality trees of this species abound and, along with unused tops and
branches, could be a significant source of biomass for both a wood pellet plant and combined
heat/power facility. The lower quality sitka spruce is also currendy used in the firewood market.
Published studies indicate green moisture content commonly over 60%. In a Haines High School
study conducted in late 2009, green moisture content for this species at standing live tree and decked
for 1 month, respectively, was determined to be between 36% (standing) and 43% (decked). a.
b. Western Hemlock (T mb' htfmiJJI!y/14)-This is the second most abundant tree species in the Haines
area and is also used for a variety of purposes though it is not as prized a species as sitka spruce.
Western hemlock is the dominant species used in the firewood market in the Haines area . Moisture
content determination of green western hemlock in published studies suggest average moisture
content of over 70%. In the Haines High School study conducted in late 2009, green moisture
content for this species at standing live tree and decked for 1 month, respectively, was estimated at
between 44% (standing) and 49% (decked).
c. Black Cottonwood (Pop111Ms trichocarpa) -Black Cottonwood is fairly abundant in the river valleys
in and around the Haines area. Trees can grow to substantial size (over 100 feet) but a lot of the
standing volume of this species is in small to medium sized trees (under 70 feet). Cottonwood can
be used for a number of solid wood products but is not utilized much for these purposes in the
Haines area. Green moisture content of standing trees are often over 1 OO%:JV and in virtually all
cases will be substantially higher than the moisture content of spruce and hemlock. Cottonwood can
be air-dried relatively quickly compared to other species.
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The other species that might be available in significant quantities include white spruce (pitta glaNca)
from the Yukon, as previously discussed Tills species is typically drier than species found in
southeast Alaska due to the drier climate found in the interior landscape of the Yukon Territory of
Canada. Green tree moisture content may be over 40% but will quickly dry during warm weather
months once harvested The beede kill spruce that is available in large quantities is often as dry as
15% moisture content after a season or more of drying once the beede has killed the tree.
4. Wood Products Manufacturi.og and Competition in the Region
lbcre is very litde competition for the wood that is available in the greater Haines area of Alaska.
1bere is only one local competitor market for lower quality /value timber that would be used in a
wood pellet and/ or combined heat/power facility-firewood There is no data available on
firewood use in Haines, however, a survey of the loggers in the Haines valley (to the Canadian
border) suggest that commercial production of firewood is approximately 1200 cords per year. This
does not include firewood that is cut by the homeowner, which could be a substantial addition to
the commercial total.
Figure 16. Wood Using Markets in the southeast Alaska area
Bolt til Alntt
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July 11, 2010 Pg 22 of 36
Loggers in the Haines area produce firewood from the lower grade, lower value wood harvested on
the Haines State Forest, University of Alaska, Mental Health Trust and certain private forests in the
area.
Figure 17. Icy Straights Lumber Company, Hoonah, Alaska
Innovative Natural Resource Solutions LLC
Wood Availability Analyses, Chilkoot Indian
Association, Haines, Alaska
July 11, 2010 Pg 23 of 36
Figure 18. Dimok Lumber Company, Canyon Creek, Yukon Territory
The table below shows operating substantial,...; wood markets in the region.
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Wood Availability Analyses, Chilkoot lndtan
A'!s ociation, Haines, Alaska
July 11, 2010 Pg 24 of 36
Table 3. Users of Timber in southeast Alaska area
Facility A Dimok Lumber Company
Location Canyon Creek, Yukon Territory
Product Lumber and house/ cabin loJtS
Owner Privately hdd: john Clunie-Ross
Annual Wood Use 2.3 million board feet
Road miles 164
Travel Time 4 hours 30 minutes
Status 0peratin2
Facility B Haines firewood market
Location Haines, Alaska
Product firewood
Owner Various (6+)
Annual Wood Use 1200 cords
1 estimate)
Road miles 0
TravelTime 0 minutes
Status Operatin2
F acility C Icy Straits Lumber Company
Location Hoonah, Alaska
Product Lumber, house/ cabin l~
Owner Wes Tyler
Annual Wood Use 2 million board feet
Distance 90+ miles via barge
TravelTime 4 hours and 40 minutes
Status Operatin2
FaciliJ! D Viking Lumber Company
Location Craig, Alaska
Product Lumber, House/ cabin l~
Owner Privatdy hdd
Annual Wood Use Several million board feet
(estimate)
Distance 290 miles via barge
Travel Time 14.5 hours
Status 0peratin2
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5. Factors Influencing the Price of Biomass Feedstock
The following factors influence the pricing and availability of biomass fuel, and changes in any of
these factors can have an impact on biomass fuel prices.
• Diesel costs are one of the largest single inputs to forest-derived wood. Every step of the
process-felling, skidding, chipping and transport-uses diesel to power machinery. As diesel
costs rise, biomass prices will rise as well. As a general rule, it takes slighdy over 2 gallons of
diesel to make and transport 1 green ton of wood chips normal transport distances of 50 miles
or less.
• The number of housing starts in the region, and thus the volume of land clearing wood and
sawmill production, is impacted by overall economic conditions. The current economic
downturn has affected building throughout the lower 48 states and Alaska. This is cyclical, and
will change as overall regional economic conditions change.
• The region's wood using and logging infrastructure is facing serious challenges, and is not in
growth mode. Loggers will not expand production without expanded markets for the products
they harvest. A new substantial wood using facility(ies) in Haines would likely spur logging
capacity increases.
• Specific and localized weather events can have a meaningful short-term impact on the price of
biomass fuel.
6. Diesel as a Component of Biomass Production Costs
As noted above, diesel fuel is a significant cost input variable to the price of biomass. Diesel is used
in both in-wood operations (felling and skidding), operations at the log landing (handling and
chipping), and transport to the facility, whether by road or water.
INRS has developed a formula for estimating the fuel used and diesel cost component of biomass
fuel, based upon distance to market, payload size, and fuel cost. As a rule of thumb, two gallons of
diesel fuel are used in the production of a single green ton of biomass. However, this varies
considerably by the type and age of equipment, operator decisions and behavior, harvest
prescription, skidding distance, distance to market, and other variables.
The table below shows the estimated diesel cost component of production of biomass -both for
wood operations (felling, skidding, handling and chipping) and transportation-at a number of
diesel fuel costs. In this table, the left column (blue) represents a range of possible diesel fuel prices,
per gallon. The second column (yellow) shows the modeled in-woods diesel cost, and the green
columns show the diesel cost for round-trip transportation (loaded in one direction, empty on the
return) for a 27 ton load at a variety of distances. For example, if diesel is $4.40 per gallon, the in-
woods diesel cost is estimated to be $5.59 and the transportation cost at 50 miles is estimated to be
$3.62. The total cost for diesel per green ton of chips would thus be $9.21.
Innovative Natural Resource Solutions LLC
Wood Availability Analyses, Chilkoot Indian
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July 11, 2010 Pg 26 of 36
Table 4. Diesel costs in biomass production
2.00
2..20
240
2.60
2.80
3.60
3.80
4.00
4.20
4.40
4.
4.80
.60
6.00
10 210 40 50 60 70 80 90 100
..._.Tap'l1 p • C..
(da&ars F p:al.IIID
2.54 0.33 0-66 0.99 1.32 1.65 1.98 2.30 2.63 2.96 3.29
2.79 0.36 0.12 1.09 l AS 1.81 2.17 2.!)) 2.90 3.26 .'-62
3.05 0.40 0.19 1.19 1.58 1.98 2.37 2.77 3.16 3.56 3.95
330 0.43 0..86 1.28 1.71 2.14 2.57 3.00 3.42 3.85 4.28
3 56 0-46 0.92 1.38 1.84 2.30 2.77 3.23 3.69 4.15 4.61
3 81 Q.49 0..99 1.48 1.98 2.4 2.96 M6 l.95 4.44 4.94
406 0.53 1.05 1.58 2.11 2.61 116 3.69 4.21 474 5.27
4 .32 0.56 1.1 2 1.68 2.24 2.80 3.36 3.92 4.48 5.04 5.60
4.5"' 0.59 1.19 1.78 2.37 2.96 3.56 4.15 4.74 5.33 5.93
4 .83 0.63 1.25 1.88 2.50 3.13 3.75 4.38 5.00 5.63 6.26
5.08 0.66 1.l2 1.98 2.63 3.29 3.95 4.61 5.27 5.93 6.58
5.33 0.69 1.38 2.07 2.77 l.46 4.15 4.84 S.Sl 6.22 6.91
5 59 0.72 1A5 2.17 2.90 3.62 4.35 5.07 5.79 6.52 7.24
5.84 0.76 1.51 2.27 3.03 3.79 4.54 5.30 6.06 6.81 7.5
610 0.19 1.58 2.37 3.16 3.95 4.74 S.Sl 6.32 7.11 7.90
6.35 0.82 1.65 2.47 1 29 4.1 2 4.94 5.76 6.58 7.41 &23
6.60 0.86 1.71 2.57 3.42 4.28 5.1 4 5.99 6.85 7.70 8.56
686 0.89 1.78 2.67 3.56 4.44 5.33 6.22 7.11 8.00 &89
7 11 0.92 1.84 2.77 169 4.61 S.S3 6.45 7.37 &30 9.22
7 37 0.9 5 1.91 2.86 1 82 4.77 5.71 6.68 7.64 8.59 9.55
7.62 0.99 1.98 2.96 3.9 5 4.94 5.93 6.91 7.90 8.89 9.88
Innovative Natural Resource Solutions LLC
Wood Availability Analyses, Chilkoot Indian
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July 11, 2010 Pg 27 of 36
7. Cost estimates for Biomass Supply
7.A Haines area biomass -Using historic prices of firewood in the Haines area as a baseline, INRS
has estimated the price of biomass fuel per green ton for local sources of biomass -primarily from
the Haines State Forest but also including wood from other ownerships in the Haines Valley area
north to the Canadian border. Currendy, firewood is produced from western hemlock and a lesser
extent from sitka spruce and delivered as log length roundwood in the Haines area for $42-47 I green
ton equivalent (firewood is sold in cords). Table 5 estimates take recent historic prices, and inflates
the wood componenrw by 3% annually. This assumes a biomass supply mix of 100% roundwood
(including bark) delivered on conventional log trucks to a yard somewhere in the Haines area. While
more supply is available as standing timber in the Haines valley area, given the constraints on logging
infrastructure (see next section), we are estimating initial production by local loggers at between
lOJ)()Q 15,()()() tons annually for the first several years of plant operation.
The prices in the table should be viewed as estimated average annual prices; actual pricing will
change regularly based upon weather, season, diesel prices, changes in the marketplace and other
factors. These prices do not anticipate the entrance of a major new market for low-grade wood in
close proximity to Haines (none are announced or expected), and assumes that the wood buyer is
steady, interacts with contractors regularly and maintains positive relationships with the supplier
base.
Table S. Estimated Biomass Prices ($US), Haines area wood (roundwood per green ton delivered)
Yc:at
2012
2013
2014
2015
Wood Diesd Per GaBon
Component $3.50 $3.7 5 $4.00
$37.00 $43.7 5 $44.23 $44.71
$38.11 $44.86 $45 .34 $45.82
$39.25 $46.00 $46.48 $46.96
$40.43 $47.18 $47 .66 $48.14
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$4.25 $4.50
$45 .20 $45.68
$46.31 $46.79
$47.45 $47.93
$48.63 $49.11
July 11, 2010
$4.75
$46.16
$47.27
$48.41
$49.59
Pg28of37
$5.00
$46.64
$47.75
$48.89
$50.07
7.B Price of biomass from likeliest other sources-Initially, in order to secure up to 50,000 green
tons of biomass per year for the project's wood pellet and possible combined heat/power plant,
additional sources over and above the local sources described above will be needed. We estimate
the following sources and costs to secure the additional up to 35,000 tons in the start-up years:
Table 6. Estimated Biomass Prices ($US), Distant sources (per green ton delivered)
Soaaz
Yeu 2012
Wood
Compoaem
Diesel Per Gallon
$4.50 5 $5.
Dimok I.AJJnber sawmill residue* sso.oo $11250 $120.00 $1Z7.50 $135.00 $14250 $150.00 $157.50
Dimok Lumber beetle kill roWldwood** 540.00 $64.00 $70.00 $76.00 $82.00 $88.00 $94.00 $100.00
Icy Straits Lumber sawmil residue *** 35.0o $56.70 $60.20 $63.35 $66.85 $70 .35 $74.20 $77 .70
• chip form -moisture content 15-20%,
5000 tons per year available
** roWldwood form-moisture content 15-
20%, large quantities available
*** chip form, 7,0CXJ tons per year available
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July 11, 2010 Pg 29 of 36
8. Supplier Base
INRS believes that the most logical and cost-effective source of biomass supply for a wood pellet
mill and possible combined heat/power facility in Haines is the Haines State Forest and private
forestlands in the Haines valley from town through to the Canadian border. As discussed briefly
throughout this report, the supply of biomass is adequate in the valley for the size of facility(ies)
being contemplated. The challenge, however, is the logging capacity to cut and haul the needed
biomass material to the plant site.
Not since the early 1990s, when the last full-time sawmill operated in Haines, has the logging
infrastructure been adequate given the timber availability in the area. The current logging
infrastructure is small (see Table 7), with five companies operating logging equipment in the Haines
valley area along with a third that manufactures cut, split and delivered firewood for the Haines
market. These companies are largely single person operations with hired help on occasion to
supplement the owners' work. These operators cut mosdy on Haines State Forest lands but will cut
on private lands and lands owned by the Mental Health Trust or U niversity of Alaska lands (the
latter of two likely managed by the Haines State Forest staff). As mentioned previously, the Haines
State Forest annual allowable harvest is 5.88 million board feet but the logging infrastructure has
harvested only an average of 750,000 board feet annually.
Based on personal interviews with the loggers, INRS believes that the loggers in the list, given the
equipment they own and the current production of the companies, is collectively operating at below
40% capacity. The largest and most productive company, the Stump Company and its proprietor
Scott Rossman, operates at less than 50% capacity. In other words, given the same labor force and
equipment owned by these finns, a doubling of production could occur simply by adding markets
for the wood harvested. A wood pellet plant and combined heat/power facility would be such a
market for the lower value material currendy under utilized on the Haines State Forest and
surrounding lands.
1be challenge associated with the need for increased production by the existing labor and logging
company infrastructure is to also provide for some additional markets for the higher quality logs that
would be harvested along with the lower quality material destined for the wood pellet and biomass
plant market. Loggers will derive more income for the same amount of labor out of sale of higher
quality logs that they harvest. Currendy, most logs go to small sawmill (portable sawmill) producers
of lumber and house/ cabin logs. Some of the loggers on the list have invested in portable
sawmilling equipment (or in partnership with others) essentially, to create their own log market.
1be likeliest other market that would allow for more log production as part of increased production
of biomass in the valley, is to backhaullogs to the Dimok Lumber Company when Dimok ships
biomass grade material to initially supplement the locally produced biomass. The company is
interested in such an arrangement, particularly for the high quality sitka spruce logs, that could be
sent north on the back haul.
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July 11, 2010 Pg 30 of 37
INRS believes that given a new biomass market that has steady demand for biomass and keeps
prices relatively stable, the existing logging infrastructure in the Haines area will increase production
and will likely grow its capacity with additional equipment and employees.
Table 7 Loggers Operating in the Haines area
Name Company Address Phone
E ager Beaver \X'ood
Rock · Seward Products P .O Box 1548 Hames AK 9982 7 907--7 6 7-5624
Green Diamond
Carl Wallers Logging P.O. Box 651 Haines AK 99827 907-767 -5645
Sco tt Ro ssman Stumg Compan · P .O. Box 1411 Hames AK 99827 907-766-3321
Sage Thomas Klehini Log Works HC 60 Box 3161 Haines AK 99827 907-767 -5449
Bob J enson To Har l..o..g&ng P .O . Box 4-7 Haines AK 99827 907-766-2514
Nick Degtof~ Fabulous Firewood HC 60 Box 2710 Haines AK 99827 907 -767-5476
*Fabulous Firewood docs not operate logging equipment at this time but might act to broker biomass material
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July 11,2010 Pg 31 of36
9. Biomass Supply Infrastructure Development
The small, underutilized logging infrastructure in the Haines are may need additional assistance to
grow, initially, should a wood pellet plant and combined heat/power biomass plant be built. There
are a number of ways that the plant( s) can assist in this growth, including:
• Long-term contracts that provide the supplier certainty that they can pay off the significant
capital cost of new equipment
o Contracts can provide a fixed price, fixed quantity, or price indexed to input costs (e.g.,
diesel fuel), and give the buyer some level of assurance that wood can be purchased at a
known price formula;
o Long-term contracts between large, credit-worthy parties (e.g. the biomass plant) and
small parties (e.g. loggers) tend to be one-sided, with the smaller parties having greater
ability to exit the contract with minimal penalty;
o Long-term contracts have not, however, been the norm in the industry in the lower 48.
• Financing packages offered to suppliers that are paid off as fuel is provided to the facility:
o Helps quickly build the infrastructure needed to supply a facility;
o Encourages loggers to deliver to the facility, building supplier loyalty;
o Puts the facility in the position of acting as a lender, not a core business and not an
action many entities are interested in taking.
o See Appendix A for a case study of this approach.
• Contracting with (or owning) mobile chipping unit(s) that can service a number of small
suppliers:
o Allows these smaller logging contractors to act as suppliers without scaling up and
adding equipment and staff.
o Chips from these "aggregators" tend to be higher cost, as there is cost and downtime
involved in constandy moving a chipper (or grinder) from one location to the next.
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July 11, 2010 Pg 32 of 36
Appendix A-Investing in Supply Infrastructure -A Case Study
The follollling is adapted from a &a.re st114J INRS prrpartd highlighting the llli!J one biomass jif711 mes eqllipment
financing to strengthen thtir ntpp!J thair. This &a.re slllt!J, prrpartd for the Mass«hmetts TedJno/ogy
Co/laboratittt, examines the praaitts of &ralex, a jif711 IIIith wood-ford po.,. plants in Maine and Ne111 York.
&ralex is ronsidmd a leader in this siiJ>P!J chain slralegy.
The financing program is a "lease to buy" agreement, where payment is based on wood
deliveries (i.e., $/ton). The program is available to any reputable contractor who is
interested in establishing an in-woods biomass processing operation. Each agreement is
tailored to meet the mutual needs of the contractor and the facility. The agreements are
governed by a contract that states the annual volume to be delivered to the biomass facility
and respective prices. The typical contract length is five years with an annual volume of
approximately 50,000 to 60,000 tons.m. The annual volume is expected to be delivered in a
40 week time period"". Volume obligations and delivered prices are renegotiated annually to
provide flexibility for the contractor and the power plant. The contractor is responsible for
negotiating the purchase price with the equipment dealer, and the power plant pays the
invoice for the machine plus the cost of the manufacturer's recommended parts inventory.
Under the terms of the agreement, the contractor pays back the principal, and interest at
7 .0%, through wood deliveries. The contractor is not required to make an equipment
payment if they do not deliver wood. When a load of chips or hog fuel is delivered, a dollar
per ton amount (e.g., $2.50/ton) is withheld from payment to the contractor and credited
towards money owed on the machine (see table below). With prior approval from the
power plant, the contractor can use the equipment for deliveries to competing facilities,
however, the contractor is required to make the same dollar per ton equipment payment to
the power plant on the volume. The ownership tide transfers to the contractor and payment
withholding ceases when the money owed equals zero. Once the contractor owns the
machine, they are still required to fulfill their annual volume obligation for the remaining
term of the contract, but they do not need the power plant's prior approval to make
deliveries to other wood-fired power plants.
The contractor has the option to forfeit the agreement prematurely, however, doing so
eliminates all accrued ownership in the financed equipment. If the wood-enetgy industry
becomes uncompetitive and all of the power plant's wood-energy facilities close, a force
majeure clause would be triggered, thus elevating the obligation for the contractor to
continue to make equipment payments. In the occurrence of such an event, the contractor
has the option to pay the remaining balance on the equipment liability, however, they are not
required to.
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Cash flows with facility financing of biomass equipment (example)
l.oMt# Hc:e pa: Bt •• voa..e Total ~O..c-.
Ddlveae4 Paywat (To.) ...,_._ &til ..
Toa pa T CMI c-.....
$ 300,000
t $ 24.00 $ 250 30 $ 7ZfJ $ 75 $ 299,925
z $ 24.00 $ 250 27 $ 648 $ 68 $ 299,858
3 $ 24.00 $ 250 28 s 672 $ 70 $ 299,788
4 $ 24.00 $ 250 29 $ 696 $ 73 $ 299,715
5 $ 24.00 $ 2.50 30 $ 720 $ 75 $ 299,640
6 $ 24.00 $ 2.50 32 $ 768 $ 80 $ 299,560
7 $ 24.00 s 2.50 26 $ 624 $ 65 $ 299,495
8 $ 24.00 $ 2.50 28 $ 672 $ 70 $ 299,425
9 $ 24.00 $ 250 30 s 7ZiJ $ 75 $ 299,350
10 $ 24.00 $ 250 31 s 744 s 78 $ 299,273
The contractor is required to pay for inland marine insurance, and all operating costs (e.g.,
labor, maintenance and repair, fuel, etc.) associated with the financed machine. The
contractor is also directly or indirectly (i.e., via subcontractors) responsible for the ownership
and operating costs related to loading (e.g., excavator, loader on crane carrier, etc.), transport
(e.g., tractor trucks, chip vans, etc.), and any support equipment/assets (e.g., pick-up truck,
garage, etc.). The wood-fired power plant pays a diesel fuel surcharge based on the prior
month's fuel price movement. The Energy Information Administration's ''weekly retail on-
highway diesel price" datam is used to determine the surcharge.
Boralex indicated that while the program requires more oversight, communication, and
financial risk than traditional means of procuring wood material, it sends a message to their
contactors/suppliers that they think the wood-energy industry has a strong future and that
they want a long-term relationship with them. Four contractors have already reused the
program, thus indicating they are pleased with the arrangement
Innovative Natural Resource Solutions LLC
Wood AvailAbility Analyses, Chilkoot Indian
A s ociation, Haines , Alaska
July 11, ZiJ10 Pg 34 of 36
Endnotes
• While this is a general description of the variety of products tint can be dermd from a single me, it is important to
note tint the characteristics of an individual ttte, combined with local markets, may make all or most of it unsuitable for
lwnbcr manufacturing, and then all of the tree would be used for pulp and chip markets, or left in the woods.
• Nofl: This tree is used for illustration purposes only. Forest-grown trees look significantly diffcta1t than this diagram,
generally with longer trunks and less "crown", or leafy top.
• USDA Forest Service EV .ALIDator 4 .01, bnp://6 arools .fs.fcd.us /Eva4d.ato r4Ql /tmannbute.Js p
w USDA Forest Service data is presented in cubic feet. INR.S calculated green tons assuming 85 cubic feet of solid wood
per cord, and that a green cord of wood weighs 2.6 tons for hardwood and 2.3 tons for softwood .
• FIA definition of "timberland" is "Forest land that is producing or capable of producing in excess of 20
cubic feet per acre (1.4 cubic meters per ha) per year of wood at culmination of mean annual incrcmcot (MAl).
Tunbcrland excludes reserved forest lands." http;l/socratc s.lv-
hrc .o eyada .edu I fi.a /ab /issucs /pending /glossa.r;y /Giossa.cy 5 .30 Q6 .pd f
"Personal communication, Greg Palimiera, Haines State Forest, 6/15 /10 & 6 /16/10
.. The University of Alaska and Mental Health Trust lands are not designated for timber harvest per sc by the two state
entities in any fonnal management plan but are geoerally considered available by the agencies and the Division of
Forestry though this designation could change .
.... Personal communication, Greg Palirnicra, Haines State Forest, 6 /15 &16 /10
.. Personal communication, Greg Palirniera, Haines State Forest, 6 /16 /10
• Yukon, Energy Mines and Resources -http:/ /www.emr.gov.yk.ca /forcstry /spruccbcede.html
"Canadian Energy, Mines and Resources and local resident estimates(font size?)
.. Yukon Forest Health Report 2008, Energy, Mines and Resources, Government of Canada
... Personal communication, Wes Tyler, Icy Straits Lumber Company,JWlC 28, 2010
-Moisture content infonnation was taken from published studies (see below) and studies done in the Haines High
School Physical Science classes under the supervision of physics teachers and documented in an unpublished rcscan:h
paper entided "Moisture Content of Locally-Sourced Fuclwoods", November, 2009. Tests conducted for these
investigations used the standard ASTM protocol E 1358-97: Standard Test Method for Dctcnnination of Moisture
Content of Particulate Wood Fuels Using a MicroW2vc Oven .
... HJI1'fiModJ of tht Paafo NorthMII, S.S . Niemiec, G .R. Ahrens, S. Willits, and D.E. Hibbs. 1995. Research Contribution 8.
Oregon State University, Forest Rescan:h Laboratory
.., The use of the tenn substantial refers to the full -time wood users of significant capacity. INR.S estimates that in the
Haines area there are approximately six regularly operating portable sawmills that each likely produce 10,000 to 40,000
board feet per year. In the southeast Alaska area there are likely dozens, if not hundreds of such operations . Most arc
very part-time.
Innovative Natural Resource Solutions LLC
Wood Availability Analyses, Chilkoot Indian
Associa 1ion, Haines, Alaska
July 11, 2010 Pg 35 of 36
nti The wood component includes the cost of Stump2gC and labor costs but not diesel
nwi Excerpted from: RE Consulting and Innovative N aturallksowce Solutions ILC. &.-b• Bitmtass .fronl tiN Forrsts Dj
Massath~t~~tts: Forrrt Htm1tllillg Syri#IIIS for Bi411NUJ Prot/Mdio11. Prqnral for the Massachusetts Technology Collaborative.
June 2007.
uaTIUs volume applies to luge chippers or grinders . The typical annual volume obligation for a smaller chipper is
10,000 to 15,000 tons.
u 1lUs equates to an avenge daily delivery of approximately eight to nine loads .
01 b ttp ://mnto.c ja .doq~oy /oo.g /info /w obdp /d!csel detail report combintd.asp
Other Sources
Construction materials: their nature and behavior, J. M. Ulston. P. L I. Domone. Taylor & Francis, 2001 -554
pages
F 0 R E S T E N E R G Y P R 0 G R A M M E, Storage and seasoning of conifer and broadleaf firewood,
Pieter D. Kofman and Tom Ke111, 2008
Haines State Forest Management Plan, 2002
Haines Borough Wood Source Report, CE2 Engineers, Inc., 2009
HarriiPoods of the Pactfic Northwesl, S.S. Niemiec, G.R. Ahrens, S. Wtllits, and D .E. Hibbs. 1995. Research
Contribution 8. Oregon State U niversity, Forest Research Laboratory
Logger interviews, various
Moisture Distributions in Western Hemlock Lumber From Trees Harvested Near Sitka. Alaska
David L Nicholls, Allen M . Brackley, and T ravis Allen, USDA Forest Service, Research Note
PNW-RN-530, May 2003
Norum, Rodney A.; Miller, Melanie. Measuring fuel moisture content in Alaska: standard methods and
procedures. Gen. Tech. Rep. PNW-171. U .S. Department of Agriculture, Forest Service, Pacific Northwest
Forest and Range Experiment Station; 1984. 34 p .
State of Alaska, Office of Economic Development, Species of Trees in Alaska,
http://www.dced.state.ak.us /oed /forest products /forest p roducts5£htm
State of Alaska, Department of Natural Resources, Division of Forestry, memo "Haines State Forest Timber
Resource and Biomass Estimate Summary" June 25,2010
Wes Tyler, Icy Straits Lumber Company, Hoonah, Alaska, Personal communication 6 /29/10
Innovative Natural Resource Solutions LLC
Wood Availability Analyse s , Chilkoot Indian
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July 11, 2010 Pg 36 of 36
ACTION SUMMARY-Haines Borough 2025 Comprehensive Plan I September 2012 page 34
~ ' ............. ~.,.......,..---·-~--~~-~~~,~,-1 .,.,. · · -... •Timefr;Jme
• Stp t ~gi ~s .' . ··'·;...~ . ~. ~-·· ~~ !2.Jil !J
5. Develop brochure to educate Borough employees, residences X Chamber, Bo rough,
and businesses on the importance of saving energy and on Ha ines Schoo l,
common techniques. AP& T, IPEC, Delta
Western, CIA
ObJective lSL: Haines Borough should work with local electric utilities to achieve a rate of 15
cents per KwH or lower. Support actions to reduce power, heating, and fuel costs. Cro ss
reference with Econ Dev 3H
1. Identify any actions that could lower rates. Focus on X X I Borough, AP& T, opportunities to benefit commercial and industrial users . Cross I RCA
reference with Econ Dev 3 H (1)
1-i-1-
2 . Explore the concept of net-metering, a consumer-based X X ! AP&T, IPEC, RCA,
renewable energy incentive. Borough
--
3. Separate heating from power needs; while both are expensive X X X
this will increase the opportunity to install a less expensive Ho me and bu il din g
ow ne rs
source for one or the other.
4. Facilitate or sponsor a workshop and information on realistic, X X
non -petroleum based options to provide (or reduce costs) for
home or small district heating (e.g. ground or air source heat Boro ug h, CIA
exchange, bio-mass options, etc.) and power (solar, wind,
small hydro, tidal/current systems). --s. Support feasibility studies and development of small-scale X X
renewable power or heating projects in Haines that power or
heat individual buildings, or a series of connected buildings or Borou gh, Southeast
an area through district heat; such as local wind, biomass, Conference, State
smaller hydro, ground or air source heat pumps, and other. Legisl ato rs, AP& T,
Update land use code as needed to ensure small scale IP EC
renewable power or heating projects are allowed and I compatible with neighboring properties.
ObJective 15M: Develop renewable energy sources sufficient to meet current and future year-
round residential, Institutional, commercial, and Industrial needs in the Haines Borough . Th is
Includes enough local power from renewable sources to, where reasonably economic and
practical, first provide year-round power to meet demand from 460 more residents over next
20 years and second, to tie freighters, barges and cruise ships to shore power while In port.
1. Issue letters of support, lobby funders, and provide technical X
assistance as appropriate for development of renewable and Borough, all
clean energy projects in Haines Borough. A goal is to lower
rates, especially for industrial and commercial users. --
2. Support feasibility studies and other technical assessments X X Borough, Southeast
that will lead to development of add itional larger renewable Conference, State
or clean power sources in the Borough, particularly projects Legislators, AP& T,
that will reduce or stabilize power costs for consumers . IPEC
Della Western~ Inc.
Dt... estern Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH
PO BOX 1209
HAINES, AK 99827
CATHY KELLER
Customer PO 31
Item# Ordered Oty Qty Shipped
02U GAL 148.9 148.9
r
DIESEL ULSD#2 HEATING OIL
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
i i'l I"\.'. 1'\\" .:il.' ·'-'·' 1•'1'-!.1:'-i'JIE:\!\llll':;Tl'\.11.;:~.1':.
: .\1.\fT('!:I . ..; ·.1',\Y.\1!11: 10: ,,,., i:\ 1\J· .• ~if·:J.i,\'. !.'.(. I "lHitX 1J435t.
Whse:H05
I \r.~'J'/1.1., !~A ')S/.'4 O¢~c,
i·l LA:,f IIH·',"lll \' l'fltJK I' . .O,YMFST BY N:COUN'T 1'\l'~!IH:k. i J.'<V~ H:. E :\ L;'.!!ii·Y ;\~1 I l.'r \ UICI·. DAI E.
I ,:,;~·.~ (.ll.:..k(d'.ll .\1m~TJli.Y t ~~ 1',\ST lJtiE IL\1.,\~Cr.o;.
~·1:1<!\1'; :~:"'ll U I'II)ITI~2'~S (I~RI'.VI\RSI' SIDE. _
ll)~Lf'II.I~('J SY
~-AF~'EO';;; t x··· ~ u
---·--.. --.. -·------
Invoice Number: 2250853-IN
Invoice Date: 8/2/2013
Customer#: 0082190
CHILKA T CENTER -FO
HAINES BOROUGH
Terms: NET 30 DAYS FROM INVOICE DATE
Backordered
0.0
Price
4.0890
0.00000
0.00000
0.00100
·---4.09.,..00-:-0,.--
Net lnvo1ce :
Freight:
Sales Tax :
Invoice Total:
Less Deposit:
Amount
608 .85
0.00
0.00
0.15
609.00
609.00
0.00
0.00
609.00
0.00
609 .00
1/a Western Inc.
D& • ldStern Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH
PO BOX 1209
HAINES. AK 99827
CATHY KELLER
Customer PO 17901 T01
Item# Ordered Qty Oty Shipped
02U GAL 400.9 400.9
DIESEL ULSD#2 HEATING OIL
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
I 1': !·.\~: '\.'1 1::EI -\.',T i!J,/.1 i>.: l'!t .\'.1t.:J .. -r \'{.!:, _\1'~
-'-l \:'.!.~:I;,:--:~, h\Y.-\!111 'i~·-/J!:LIA ;\J:.\J[h'\ 1\t.
/'<1/HI.\" <J4l56
Whse:H12
SI-.ATrt F. H~\ '18/ ~4 66.16
1·1.1:.->. '.I·. :1 •t::·: i I bY YUt.·:.: 1'.\ Y \1EI-.;T IIY ;\:.'COL~; I' .\'l;~Wt:k
1\\·(lli_'L ;-.::\1:\1·~ .\,;[; !'-\ !liU: 1),\11:.
'
! ~;c·: ~·!:,,•H;;il\1:1'.1 !11'(()\iP, ~TIWI 1\AI..'\:\t :-.~
::t:t: ; t:!<1viS .\ '\<~ ~·o:-.crrt< :\'.\ ( ,:-.; ~'" 1:1~\l: ~lf"tt'
I -------------i r.r-'-,'f: :::~·· r.-.
ru:CCi'IE:O 0'"' ·x ---e>---
Invoice Number: 2239288-IN
Invoice Date: 6/3/2013
Customer #: 0082190
PUBLIC SAFETY BUILDING -FO
HAINES BOROUGH
Terms: NET 30 DAYS FROM INVOICE DATE
Backordered
0.0
I : ~
.,
Price Amount
4 .0890 1,639 .28
0.00000 0 00
0.00000 0 00
0 .00100 0.40 ------·-.----'-~,....C...,:---4.09000 1,639 68
Net lnvo1ce:
Freight:
Sales Tax:
Invoice Total:
Less Depos1t:
1.639.68
0.00
0.00
1.639 .68
0.00
1,639.68
Della Western~ Inc.
Delta Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH
PO BOX 1209
HAINES, AK 99827
CATHY KELLER
Customer PO 21839 T01
Invoice Number: 2240054-IN
Invoice Date: 6fl/2013
Customer #: 0082190
SEWER PLANT -SO
HAINES BOROUGH
Terms: NET 30 DAYS FROM INVOICE DATE
lt~m ~---------------------------------_______________ p_rd_ered Oty a~y-~-~!RP-~------~~~~-<?!.~~~~-----------------~~!~~------------Amount
01 GAL 71.6 71.6 0.0 4.1090 294 .20
DIESEL #1 HS HEATING OIL Whse:H05
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
i'l ·.,·_.;t~l'-\'. ·n:l·l. \1 1t:t· 1.1. :H:: \~10.->'i! '--~;J. .. \.\
~-HKI ''!!!-( !· ·; 1'\Y'.'III· '1(1: J;{-'1'/.\ 11'1-:\TI:'J.:\' /\'('
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I' \'t Jl: 'I· 'Ot.~.liH'R ·\~m 1''\'0f(T D.-\TI'.
; ~7~', Ci i.\JC(.,!'I 1 MC.,:-;TIILY ON i'AST Dl:E ~ALA './CJ:~. I '>LJ: II:~M'> ,., '·P ( u:-.:nnt•.''~-'· C•N tH'CVl'.k ~r, ~If >:C.
I ~Tl!'ll FLO C'i -
I
t~r·r''~~~y ----·-·-____ .. ________ (~
' ------~ I
I
I
I
--J
0.00000
0.00000
0 .00100
4.11000
0.00
0.00
0.07
294 .27
Net Invoice: 294.27
Freight: 0.00
Sales Tax: 0.00
------~ Invoice Total: 294.27
Less Deposit: 0.00
294.27
Della Western, Inc~
Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
Invoice Number: 2240845-IN
Invoice Date: 6/13/2013
Customer #: 0082190
HAINES BOROUGH
PO BOX 1209
HAINES, AK 99827
WATER PLANT-FAA RD.
HAINES BOROUGH
CATHY KELLER
Customer PO 17988
Item#
01
--·------·-·· ----------·-------_____ _Q~d-~.~~_gt_y ______ gt_y_§.!')!RP.~-
GAL 68.9 68.9
DIESEL #1 HS HEATING OIL
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
'•II \(:1,!'-\Y :1:1: \\l·:.li'\: I'~ il!l· \\tu:_.\! :··~1.: \:'~
't \:·,t_•·t:.:: ;,·. ;• .. , \';It ltJ /)f'_f_j \ H/c,<,"lf·.H.\,1\'('
/'(J £!()\ 94.1.11•
\F 1 /'/'/.!:'. \1'.-1 1/.l I 24-M56
Whse:H12
J·: i--\;·,!-!1}: .. '\'lH·Y ~.·~~~ H i':\\~ti·NT1tYACCt>t·>~Ti\!_'~tHt;l'.
' 1:> '-::I( E '\:_'\1:\''R .\ ·.;n 1'\\'0!:.·L 1),\1 J·.
~:·;_ .. 1'; t~ ll.l.i<1...;::1 ~ ;.t:;l'\: itl.'r t '~ P.-\S I IJL~: B;\1.;\!\!'E.(;_
\1'1· I El{\1~ \;.;;) t'OSl!rl It~~.;\ IJ'\ P.LV!'HSI; SIDi'
i -~-ii<.:t'i',-{[;-u-·.--
' ,,
L ~\ ----------
Terms: NET 30 DAYS FROM INVOICE DATE
Backordered
·---~---·----
0.0
Price ·----------
4.1090
0.00000
0.00000
0.00100
Amount .. ·-------.. ·--·
283.11
0.00
0.00
0.07
4 .11000 __ _ 283.18
Net Invoice: 283.18
Fre1ght: 0.00
Sales Tax: 0.00 -------Invoice Total: 283.18
Less Deposit: 0.00
283.18
Delta Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH SCHOOL
PO BOX 1289
HAINES, AK 99827
ASHLEY SAGE
Customer PO 18426
Invoice Number: 2257384-IN
Invoice Date: 9/4/2013
Customer#: 0076700
NEW HIGH SCHOOL BLD -FO
BELOW GROUND TANK
Terms: NET 30 DAYS FROM INVOICE DATE
Item!__ ______ Ordered OIL_ Q!l_S~-Backordered __ Price ___ Amount_
02U GAL 1,200.0 1,200.0 0.0 4.0890 4,906.80
DIESEL ULSD#2 HEATING OIL Whse:H12
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
0.00000
0.00000
0.00100
4.09000
0.00
0.00
1.20
4,908.00
Net Invoice: 4,908.00
Freight: 0 .00
Sales Tax: 0.00 -----~ Invoice Total: 4,908.00
Less Deposit: ------:~~0.~00~
4,908.00
Delta Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
SHELDON MUSEUM & CULTURAL CNTR
POBOX269
HAINES, AK 99827
NO CONTACT NAME
Customer PO 18562 T01
Invoice Number: 2259877-IN
Invoice Date: 9/17/2013
Customer #: 0113961
SHOP -SHELDON MUSEUM S/0
Terms : NET 30 DAYS FROM INVOICE DATE
Item~ ______ OrderedQtt_ ~S~L Backordered __ Price __ ~mount_
01 GAL 77.2 77.2 0.0 4.1090 317 .21
DIESEL #1 HS HEATING OIL Whse:H12
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
0.00000
0.00000
0.00100
4.11000
0 .00
0.00
0.08
317.29
Net Invoice: 317.29
Freight: 0.00
Sales Tax: 0.00 ------Invoice Total: 317.29
Less Deposit: ----~o .• oo~
317.29
Delta Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH LIBRARY"
PO BOX 1089
HAINES, AK 99827
ANN MYREN
Customer PO 18529
Invoice Number: 2259461-IN
Invoice Date: 9/12/2013
Customer#: 0113996
NEW LIBRARY TANK FO
THIRD AVE
Terms: NET 30 DAYS FROM INVOICE DATE
Item~ ______ OrderedQtr._ 9!l_S!:!!,eped_ Backordered __ Price __ ~mount_
02U GAL 9.9 9.9 0.0 4.0890 40.48
DIESEL ULSD#2 HEATING OIL Whse:H12
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
0.00000
0.00000
0.00100
4.09000
0.00
0.00
0.01
40.49
Net Invoice: 40.49
Freight: 0.00
Sales Tax: 0.00 -----:-~~ Invoice Total: 40.49
Less Deposit: ----.;;0-;.:;00~
40.49
Delta Western Inc
PO Box 79018
Seattle WA 98119
EIN 91-2083838
8005280191
HAINES BOROUGH SCHOOL
PO BOX 1289
HAINES, AK 99827
ASHLEY SAGE
Customer PO 18521 T01
Invoice Number: 2259453-IN
Invoice Date: 9/12/2013
Customer#: 0076700
VOCATIONAL BUILDING -SO
ABOVE GROUND TANK
Terms: NET 30 DAYS FROM INVOICE DATE
ltemL ______ OrderedQty__ Q!r_S~-Backordered __ Price ___ Amount_
01 GAL 56.3 56.3 0.0 4.1090 231.34
DIESEL #1 HS HEATING OIL Whse:H12
Federal Fuel Tax
State Fuel Tax
Federal LUST Tax
0.00000
0.00000
0.00100
4.11000
0.00
0.00
0.06
231.40
Net Invoice: 231.40
Freight: 0.00
Sales Tax : ____ ..;;..o._oo_
Invoice Total: 231.40
Less Deposit: ____ .:.:0.~00:...
231.40
Murray & Assodates, P. C, Consulting Mecht~niclll Engineers
PO &x 21081, }t~lltllll, A/a.JJ/4 99802-1081 (907) 780-61Jt Fax: (907) 780-6182
SEPTEMBER 20,2013
HAINES BOROUGH BUILDINGS
HEATING PLANTS CONVERSION TO BIOMASS
Chilkat Center for Arts
Existing Heating Plant: Two new Buderus Boilers GE315 (Output?) were recently installed
in 2012. Double wall 1 o· dia chimney exists.
Conversion Notes: Minimal piping modification for connection, connect to chimney in
boiler room. Connect to existing electrical panels.
Wood Boiler Location: Install one wood pellet boiler with nominal capacity of 600 MBH
(ACT CP600) in place of the two boilers. Install dust collection cyclone and exhaust fan (5
HP) to 10" diameter double wall positive pressure chimney. lnstall300 gallon Buffer Tank
between boilers and heating units with air separators (2 @ 3"), eire pumps (2 @ 40 gpm
ea), and necessary valves, trim, and controls.
Wood Pellet Storage: Southwest exterior comer, silo. Route pellet feed tubes into
basement ceiling space to boiler room approx. 40 feet.
New City Shop
Existing Heating Plant: One Weil Mclain WG0-7, Net 210 MBH, supplies heating through
radiant floor heating for entire shop. Boiler was installed 5-6 years ago.
Conversion Notes: Minimal piping modification, connect to chimney in boiler room.
Connect to existing electrical panels.
Wood Boiler Location: Remove boiler and install wood pellet boiler in its place. Suggest
OkoFen PE 56.
Wood Pellet Storage: Silo outside boiler room, Southeast corner of building. Route pellet
tubing to boiler approx 20 feet.
Old City Shop
Existing Heating Plant: Furnace, looks like minimal life left. 0 years estimated service life
left. Building with poor thermal characteristics. Estimated 80 MBH heat loss.
Conversion Notes: Leave furnace in place and use as backup if needed. Connect to
existing electrical panels.
Potential Wood Boiler Location: Install new pellet boiler in NE comer of building, construct
walls (70 sq. ft.) around boiler room. Suggest OkoFen PE32. lnstall2 large UH's (40
MBH ea.) for shop area and 1 UH (20 MBH) for office. Route heating piping exposed in
shop.
Wood Pellet Storage: NE comer of building outside new boiler room. Route pellet
tubing to boiler approx 15 feet.
Haines Borough Buildings
Heating Plant Conversion to Wood Fired Boilers Study
Page 1
Sept.,2013
Library
Existing Heating Plant: Weil Mclain 580 (Net 448 M BH), good condition. estimate service
life left of 20 years .
Conversion Notes: Not enough room in boiler for tandem (2) wood boilers to meet current
output. Minimal conversion if oil boiler is left in place and exterior boiler is used . Tie into
oil boiler heating supply and return. Suggest tandem wood boiler in container; two Okofen
PE 56. Connect to existing electrical panels .
Potential Wood Boiler Location: Exterior container, possibly couple with Administration
heating system . Route 2" HS/HR Arctic pipe from Admin bldg to container.
Wood Pellet Storage: Exterior silo near energy box or use end of energy box for storage.
Administration
Existing Heating Plant: Ultimate boiler (150 MBH Net) is poor condition . 6" dia double wall
stack.
Conversion Notes: Difficult to fit wood boiler in room unless room is enlarged 50%.
Recommend removing oil boiler anyway and tie into Library heating system .
Potential Wood Boiler Location: Combine with heating system of Library for single wood
boiler in container located near Library . Route 1-1/4" HS/HR Arctic pipe from Admin bldg
to container .
Wood Pellet Storage : Exterior silo near energy box or use end of energy box for storage.
Museum
Existing Heating Plant: Existing Weil Mclain WGO 08 (Net 231 MBH) located in boiler
room that is nearly underground. Chimney is double wall, 8" dia. Estimated boiler service
life left is 1 0 years .
Conversion Notes: Piping conversion minimal. Can reuse double wall chimney.
Difficult getting new boiler in place but it is possible. Suggest OkoFen PE 56 .
Connect to existing electrical panels.
Potential Wood Boiler Location: Remove oil boiler and install pellet boiler in its place .
Wood Pellet Storage: Install silo at NE corner of building outside bailer room. Route pellet
tubing to boiler approx 20 feet.
Water Treatment Bldg
Existing Heating Plant: Furnace oil fired that supplies heated air to the space. Service life
left 2-5 years .
Conversion Notes: Leave furnace in place or remove if needed for air movement.
Suggest PE 32 .Connect to existing electrical panels.
Potential Wood Boiler Location: New boiler location at NE corner of the building in Storage
Haines Borough Buildings
Heating Plant Conversion to Wood Fired Boilers Study
Page 2
Sept.,2013
room. Construct boiler room, approx 70 sq ft.
Wood Pellet Storage: Install silo at NE corner of building outside bailer room . Route pellet
tubing to boiler approx 20 feet.
Sewer Treatment Bldg
Existing Heating Plant: Three furnaces supply air heating . Furnace F-1 is in the Sewer
Treatment room and appears to be relatively new, installed in the 1-2 years. Furnace F-2
is
in Shop Area and is old reached the end of its service life . Furnace F-3 serves the office
area and appears to have 5-1 0 years left.
Conversion Notes: Recommend removing all three furnaces and installing two wood pellet
boiler plants served by one central pellet silo to supply heating for the complex . Connect to
existing electrical panels .
Wood Boiler Location: Treatment Bldg: Install one tandem (2xPE 56) boiler plant for the
Treatment Bldg in place of the furnace. Construct room around tandem boilers . Provide
four large unit heaters (100 MBH ea) in each corner for heating and air circulation. Unit
heaters with explosion proof motors,
Shop/Office Bldg: Install one pellet boiler on concrete stand of old furnace. PE 56 in place
of the Shop furnace. Install one large size unit heater (100 MBH) in shop. lnstall1" HS &
HR to unit heater. Install new AHU (800 cfm) in Office with heating coil (60 MBH) in place
of furnace. Install 1" HS/H R piping to AHU HC from Shop. Use Arctic pipe with 1" HS &
HR in between shop and office building (40 feet).
Wood Pellet Storage: Large silo located on the south side of the Shop with two vacuum
pellet feeds for supply of the two wood boiler plants. Route vacuum tubing approximately
50 feet to each boiler location.
High School
Existing Heating Plant: Three oil-fired boilers, installed in 2007, supply heating for the
school/pool complex. The boilers are configured in a lead-lag-standby configuration .
Each Weil Mclain 788 boiler, at 1419 MBH, is sized to provide approximately 43% of the
total calculated heating requirements, not including domestic hot water load which is
supplied from the boiler heating plant. The expected remaining life of the existing boilers is
25 years minimum. The boilers use a combined double wall chimney pipe. 4" diameter
taps have been provided on them ain heating loop for addition of another heating
appliance.
Conversion Notes: Two 1700 M BH pellet boilers, the largest of the medium size type wood
boilers, would supply the design heating load, not including domestic hot water , for the high
School and Pool complex. Fitting two of these size wood boilers in the existing boiler room
will require all three of the oil-fired boilers to be removed and extensive renovation of the
heating system inside the Boiler room. The two wood boilers will not provide any diversity
or backup for the facility. In order to accomplish backup recommend plumbing in 4" HS/H R
connections from the main headers to exterior wall for temporary boiler connection if
needed, due to one wood boiler being offline or lack of capacity during sever cold times.
Haines Borough Buildings
Heating Plant Conversion to Wood Fired Boilers Study
Page 3
Sept.,2013
Demolition: Remove all three oil boilers and underground oil tank (Empty and abandon in
place?). Remove and modify interior piping for wood boilers.
Wood Boiler Plant: Install two pellet boilers each with nominal capacity of 1700 MBH (ACT
CP1700) in place of the three oil fired boilers. Modify concrete housekeeping pads for new
boilers. Install dust collection cyclone and exhaust fan (10 hp) to connect to existing 20"
diameter double wall positive pressure chimney. lnstall550 gallon Buffer Tank between
boilers and heating units with air separators (2 @ 5"), eire pumps (2 @ 115 gpm each in
lead/lag config), and necessary valves, trim, and controls in Boiler Room. lnstall4" HS/HR
connections from the main headers to exterior wall for temporary boiler connection
Wood Pellet Storage: Silo adjacent to Boiler Room with separate augers into the wood
boilers.
School Vocational Education Bldg
Existing Heating Plant: Existing Hydrotherm oil-fired boiler with net 190 MBH capacity.
The boiler has approximately 2-5 years service life left. Double wall chimney at ceiling
existing.
Conversion Notes: Connection to piping minimal. Existing Boiler room wall would need
to be moved approx 2 feet to allow for wood boiler in place of oil-fired boiler. Recommend
OkoFen 56. Connect to existing electrical panels.
Wood Boiler Location: Replace oil boiler and install wood boiler in boiler room.
Wood Pellet Storage: Located silo in place of existing oil tank. Fencing is already in place
around tank.
Public Safety Bldg
Existing Heating Plant: Existing boiler was recently installed (2013) and is a Burnham
V904 with a net 420 M BH. Double wall chimney is existing.
Conversion Notes: The room is tight but it appears that a tandem OkoFen assembly
would fit. A tandem PE 56 would provide a net of 382 MBH so very close to the existing
capacity. Connect to existing electrical panels.
Wood Boiler Location: Replace oil boiler with wood boiler in Boiler Room. This boiler is a
good candidate for the Borough to used on a portable skid for temporary heating plant.
Wood Pellet Storage: Locate pellet silo at southwest comer of building. Route pellet
vacuum tubes into crawlspace and to the pellet boiler, approximately 40 feet in length.
End of Report
Douglas Murray, P.E.
President, Murray & Associates. P. C.
Haines Borough Buildings
Heating Plant Conversion to Wood Fired Boilers Study
Page4
Sept.,2013