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HomeMy WebLinkAboutHaines Wood Heating Analysis Final Report Wood Heating Analysis Haines Borough Administration Building Public Library Vocational Education Building Haines School and Pool Wastewater Treatment Plant Chilkat Center Prepared by: Final Report June, 2012 Blank Page Haines Borough 1 Wood Heating Analysis Table of Contents Section 1: Executive Summary  Introduction ........................................................................................ 3  Life Cycle Cost Analysis .................................................................... 3  Wastewater Treatment Plant and Chilkat Center ............................... 5  Summary ............................................................................................ 6  Section 2: Introduction  Introduction ........................................................................................ 9  Conceptual Design Intent ................................................................. 10  Cost of Heat Comparison ................................................................. 11  Section 3: Life Cycle Cost Methodology  Economic Factors ............................................................................. 13  Construction Costs ........................................................................... 13  Operating Costs ................................................................................ 14  Energy Costs .................................................................................... 15  Section 4: Life Cycle Cost Analysis  Introduction ...................................................................................... 19  Administration Building ................................................................... 19  Public Library ................................................................................... 21  Vocational Education Building ........................................................ 22  School and Pool ................................................................................ 24  District Heating System ................................................................... 25  Summary .......................................................................................... 27  Appendix A: Conceptual Design Diagrams  Appendix B: Sizing and Life Cycle Cost Calculations  Appendix C: Equipment Specifications  Haines Borough 2 Wood Heating Analysis Blank page Haines Borough 3 Wood Heating Analysis Section 1 Executive Summary INTRODUCTION This report presents the findings of a Wood Heating Analysis for the Haines Borough. The intent of this analysis is to determine if there is economic incentive to invest in wood heating systems for Haines Borough buildings. The analysis looks at individual wood heating systems and a district wood heating system to serve the following buildings: Administration Building; Public Library; Vocational Education Building; and School and Pool. In addition, we summarize the feasibility of converting the Chilkat Center and Wastewater Treatment plant to wood heating. The scope of this study is limited to evaluating options for heating the buildings with wood pellets. While wood boilers are capable of burning a variety of wood fuel including pellets, chips, disks, and cordwood, only pellets are commercially available in consistent quality and sufficient quantity to be considered for the buildings. The buildings that are part of this study are currently heated by a fuel oil boiler(s). Pellet boilers integrate well with the fuel-oil boiler heating systems because they both produce 180°F heating water. In multiple boiler installations, a pellet boiler can replace an existing fuel oil boiler, retaining the necessary heating redundancy. For the smaller buildings (Administration, Library, Voc-Ed) a containerized wood boiler is evaluated. For the larger wood boilers to serve the School or District Plant, a separate boiler building is constructed to house the equipment. LIFE CYCLE COST ANALYSIS The analysis compares retaining the fuel oil boilers (status quo) with converting to wood pellet boilers. The wood heating option retains the fuel oil boilers for redundancy and backup. Administration, Library, and Vocational Education The status quo option requires replacement of the boilers in the Administration and Voc-Ed buildings. The Library boiler is in good condition and is retained. The wood heating conversion for each building installs a containerized boiler adjacent to each boiler room. The container includes the wood boiler, pellet storage tank, piping, and appurtenances. The life cycle cost analysis determined that retaining the fuel oil boilers has the lowest life cycle cost. Wood boilers require significant investment and more maintenance than fuel oil boilers. These relatively small buildings with modest heating loads do not generate sufficient energy savings to offset these higher costs. Haines Borough 4 Wood Heating Analysis School and Pool The status quo option retains the fuel oil boilers in the school. The wood heating option installs two pellet boilers in a boiler building located near the school boiler room. A life cycle cost comparison determined that the two options have essentially equal life cycle costs. The high heating requirements of the school allows the wood boiler to generate sufficient energy savings to offset higher construction and operating costs. District Heating System The status quo option requires replacement of the older boilers in the Administration and Vocational Education Building. The Library and School boilers are retained. The wood heating option constructs a district heating plant near the school boiler room. Buried piping distributes the heat to each building. A life cycle cost comparison of the base case shows that the status quo option has the lowest life cycle cost. The high heating requirements of the buildings does not generate sufficient energy savings to offset the high cost of constructing the wood heating plant and buried distribution piping. Life Cycle Cost Comparison Heating System Construction Operating Energy Total LCC Administration Building Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 Library Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 Vocational Education Building Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000 School and Pool Status Quo: Fuel Oil Boilers $0 $135,000 $5,086,000 $5,221,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000 District Heating System Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000 Results based on 6.6% fuel oil inflation and 3.6% wood pellet inflation. Highlighted costs are lowest life cycle cost. Haines Borough 5 Wood Heating Analysis WASTEWATER TREATMENT PLANT AND CHILKAT CENTER The Borough has identified the Wastewater Treatment Plant and Chilkat Center as potential wood heating conversions. Wastewater Treatment Plant The Wastewater Treatment Plant (WWTP) is heated by three fuel oil furnaces that consume 7,400 gallons of fuel oil per year. The furnaces have a relatively high design load of 720 MBH due to ventilation loads. Heating Options Status Quo: The building is heated by three fuel oil furnaces; two are at the end of their service life. The status quo option would replace the two furnaces. Wood Heating Conversion: One option is to replace the two furnaces and install a containerized wood boiler and a hydronic heating loop to supply the heat to a heating coil installed in each furnace. A less expensive option is to connect the building to a district plant via buried pipelines. This is only viable if the district plant is constructed. Wood Heating Assessment The wood heating options have a probable cost of construction of $750K for the connection to a district plant and $1,000K to construct a wood boiler plant. The life cycle energy savings to shift 7,400 gallons of fuel oil to wood pellets is approximately $530K. The energy savings does not offset the cost of installing the wood boiler so there is no economic incentive to install a wood boiler. The factors that contribute to this finding are:  The relatively high heating load increases the size of the wood boiler and the initial investment.  The cost of converting is further increased by the need to install a hydronic heating system to supply heat to each furnace. Chilkat Center The Chilkat Center is heated by two fuel oil boilers that consume 11,000 gallons of fuel oil per year. Heating Options Status Quo: The two boilers are at the end of their service life. The status quo option replaces the boilers. Wood Heating Conversion: This option replaces the existing heating system and adds a heat exchanger and pumps to separate the building heating system from the wood boiler system, and installs an exterior container that contains a wood boiler, pellet storage tank, boiler pump and appurtenances. A control system is installed to operate the boilers and pumps in a lead/standby configuration. Wood Heating Assessment The wood heating option has a probable cost of construction of $400K. The life cycle operating savings—energy savings minus added maintenance— is approximately $600K. The operating savings more than offset the investment so there is incentive to convert the building to wood heating. It was noted in recent assessments of the building that it is currently operating inefficiently. Efforts to reduce energy consumption typically have a better return than investments in new heating systems. It is recommended that the building be brought up to optimal operation and then the wood heating assessment be based on the new baseline energy consumption. Haines Borough 6 Wood Heating Analysis SUMMARY This analysis determined that there is not sufficient incentive to invest in wood heating systems. Wood heating is the higher life cycle cost option on the three smaller buildings, only breaks even for the School, and is higher for the district plant. The findings are typical of other recent analyses that the author has performed for buildings in Southeast Alaska. A useful metric is for a wood heating system to provide a 10% life cycle savings to justify the investment. For the school wood heating system, the wood pellet price would for investing in a wood heating system is for the a decision to invest The use of wood as a heating source is increasing in North America, primarily because of energy cost savings. The findings do not directly challenge this trend, but instead exhibit the following realities of wood heating in Haines:  Energy Costs: Wood pellets are more expensive in Haines and are subject to greater price volatility due to imbedded transportation energy. In the Pacific Northwest, the delivered cost is $190 per ton. Sealaska Corporation is quoting $360 per ton (89% higher).  Construction Costs: Haines has higher construction costs due to higher labor and material costs. This reality has historically hindered the incentive to invest in energy efficiency throughout Southeast Alaska. A common metric for incentive to gather funds and invest in energy efficiency is to obtain a 10% life cycle savings. Looking only at the school/pool wood heating plant, a pellet price of $265 per ton would offer this incentive. The prudent course of action is to wait and see how this energy source plays out over time. Important signals will be the influx of private money into the industry and favorable long-term assessments of the wood energy resource that reduce the risk. There is little lost in waiting as the economics do not currently provide a strong incentive to invest in wood heating. Relevant Considerations Any building owner that is considering wood heating should be fully versed in the technology and requirements of the system. Wood heating systems require significant investment, considerably more maintenance, and the equipment has a shorter service life—wood boilers last 18 years, fuel oil boilers 35 years. While the technology has improved remarkably in recent years, wood heating is not a better way to heat buildings. A wood heating system requires a more hands-on ownership role than a fuel oil boiler system. It is also prudent to consider that a wood boiler does not convert wood energy to heat at higher efficiency; there is no change in the amount of purchased energy. Wood heating still requires the purchasing a finite energy source from the energy market. In a world of increasing energy demands and finite supplies, it has yet to be proven that wood energy can retain its present cost advantage over the life of the investment (and beyond). The lack of knowledge on this point is a serious deficiency given that firm energy saving is the dominant reason for investing in a wood heating system. Haines Borough 7 Wood Heating Analysis Recommendation It is recommended that the Haines Borough not invest in wood heating systems at this time. The wood heating industry is in its relative infancy and there remain unknowns and risks of the future availability and cost of wood energy. The recently released Draft Southeast Alaska Integrated Resource Plan (IRP) makes a strong recommendation for wood heat conversions. However, the plan failed to provide a regional wood energy resource analysis of the sustainability and cost of wood heating energy throughout the region. Without the analysis, the wood heating recommendation lacks basis. The recommendation to not invest in wood heating until the economics improve and more is known about the wood energy resource provides Haines a window for planning its energy future. While the IRP attempted to provide a plan for the entire Southeast Alaska region, each community essentially has its unique energy challenges and opportunities. Haines’ long-term economic health can be fortified by developing a local energy plan. Since Haines and Skagway share hydroelectric resources, coordination between the communities is also needed. The energy plan can look at all potential sources of energy, evaluate their supply and demand, and assess how they contribute to meeting the future energy demands of the community. Haines Borough 8 Wood Heating Analysis Blank page Haines Borough 9 Wood Heating Analysis Section 2 Introduction INTRODUCTION This report presents the findings of a Wood Heating Analysis for the Haines Borough. The intent of this analysis is to determine if there is economic incentive to invest in wood heating systems for Haines Borough buildings. The analysis looks at individual wood heating systems and a district wood heating system to serve the following buildings:  Administration Building  Haines Borough Public Library  Vocational Education Building  Haines School and Pool In addition, we summarize the feasibility of converting the Chilkat Center and Wastewater Treatment plant to wood heating. The purpose of this analysis is to compare the life cycle cost of maintaining the status quo of heating with fuel oil boilers with converting to wood pellet heating. The analysis is performed by:  Jim Rehfeldt, P.E., Mechanical/Energy Engineer, Alaska Energy Engineering LLC  Doug Murray, Mechanical Engineer, Murray & Associates P.C.  Ben Haight, Electrical Engineer, Haight & Associates, Inc. Scope of Work The scope of work as defined in the Request for Proposals is:  Provide a current resource assessment for finished wood pellets.  Provide a 20-year life cycle cost analysis to heat the buildings with wood pellets. The analysis will evaluate the construction, maintenance, and energy costs of retaining the fuel oil heating systems, converting to a wood pellet heating system, or a wood pellet district heating system. On the wood boiler options, the fuel oil heating system is retained as backup.  In addition to the buildings in the above analysis, provide an executive summary on the feasibility of using wood pellets to heat the following borough facilities: Sewage Treatment Plant and Chilkat Center. Haines Borough 10 Wood Heating Analysis CONCEPTUAL DESIGN INTENT Pellet Boilers The scope of this study is limited to evaluating options for heating the buildings with wood pellets. While wood boilers are capable of burning a variety of wood fuel including pellets, chips, disks, and cordwood, only pellets are currently commercially available in consistent quality and sufficient quantity to be considered for the buildings. Heating Systems The buildings that are the focus of this study are currently heated by a fuel oil boiler(s). Pellet boilers integrate well with the fuel-oil boiler heating systems because they both produce 180°F heating water. At the School, which is heated with multiple boilers, a pellet boiler can replace a fuel oil boiler, retaining the necessary heating redundancy. A wood heat conversion will integrate a wood boiler with the existing boiler(s) to provide a dual-fuel heating system. The design intent is to provide an integrated dual-fuel system that operates the boilers in a lead (pellet) and lag (fuel oil) configuration to heat the building. The wood boilers can be installed within the building or in a container as part of a preassembled package. None of the buildings have sufficient room within the boiler rooms for the pellet boiler. For the smaller boilers (Admin, Library, Voc-Ed) a containerized boiler has been selected. For the larger wood boilers to serve the School or District Plant, a separate boiler building is required for the heating plant. The School site is highly constrained in the vicinity of the boiler room by an access road, buried utilities, and parking. It was reported that the adjacent property—currently occupied by the closed Elks Lodge—will be put up for sale. The corner of this lot closest to the boiler room offers a suitable, flat site for the wood boiler building. It is assumed that the Borough will purchase the property and a wood boiler building is suitable for the back corner of the lot. All of the wood heating systems will require an anti-freeze solution so the outdoor piping and wood boiler do not freeze if it is shut down for service or repairs. Since anti-freeze would reduce the heating capacity of the existing building heating systems, a heat exchanger is required to separate the building heating system from the wood boiler system. District Heating A district heating plant that supplies the four buildings can be effectively located anywhere between the school and the Administration Building. Since the School has the highest heating load, it has been located near the School to reduce the cost of buried piping and associated heat loss. If the Borough consolidates facilities in a location closer to the Library, the wood boiler building can be moved closer to the new facility without significant cost impact if its heating load is comparable to the School. Haines Borough 11 Wood Heating Analysis COST OF HEAT COMPARISON The following chart provides a 20-year heating cost comparison for fuel oil, electric and wood pellet heat. Wood pellet heat is less expensive than both fuel oil and electric heat. See Section 3 for the basis of energy inflation factors. Fig 1: Cost of Heat Comparison $0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031$ / MMBtuYear Cost of Heat Comparison Fuel Oil Boiler Heat @ 6.6% Inflation Electric Boiler Heat @ 2.5% Inflation Pellet Boiler Heat @ 3.6% Inflation Haines Borough 12 Wood Heating Analysis Blank page Haines Borough 13 Wood Heating Analysis Section 3 Life Cycle Cost Methodology The purpose of this feasibility analysis is to compare the life cycle cost of retaining the fuel oil heating systems with converting them to wood pellet heating. The findings are highly sensitive to the economic factors, energy costs, and energy inflation used for the analysis. While future energy inflation has the greatest impact on the findings, there is no authority for these values. For this reason, a sensitivity analysis is used where base case, low, and high values for electricity and fuel oil inflation are evaluated. ECONOMIC FACTORS The following economic factors are used in the analysis:  Economic Period: The scope of work sets the economic period at 20 years with all costs based on 2013 construction.  Nominal Interest Rate: This is the nominal rate of return on an investment, without regard to inflation. If the Haines Borough were to finance a large project it would do so by issuing bonds through the Alaska Municipal Bond Bank. The bond bank’s most recent issue in April paid an interest rate of 2.94% for a 20 year maturity. The analysis is based on a rate of return of 3%.  Inflation Rate: The Consumer Price Index has risen at a rate of 2.9% over the past 20-years. The State of Alaska predicts general inflation of 2.5-3% per year. The analysis is based on a 2.75% rate of inflation over the 20-year economic period. CONSTRUCTION COSTS It is preferable to install wood boilers within the building for ease of maintenance and to minimize the impact to the aesthetics of the site. Unfortunately, none of the boiler rooms have sufficient space for a wood boiler. Adding a wood boiler will require constructing an addition to the building or installing a containerized boiler. The containerized option is less expensive and acceptable to the Borough, so the conceptual design is based on this option. This option is suitable for the Admin Building, Library, and Voc-Ed Building. The larger boiler plant for the school and district heating system requires a standalone building to house the boilers and accessories. All of the wood boilers are sized for 70% of the design heating load. This sizing will optimize the efficiency of the boiler. Fuel oil boiler supplementation will be required during cold weather and when undergoing maintenance and repair. The pellet boiler will supply 90% of the heating load and the fuel oil boiler 10%. Appendix C contains specifications for the wood boilers. Haines Borough 14 Wood Heating Analysis OPERATING COSTS Operating costs include maintenance and repair cost—on an annual and intermittent basis—and equipment replacement costs at the end of its expected service life. The costs are derived from industry standards for the long-term operation of the systems. Maintenance and Repair The heating systems will have the following maintenance and repair requirements. Wood boilers have higher maintenance requirements than the existing systems. Fuel Oil Boilers The following describes the maintenance requirements for fuel oil boilers. For the wood heating options, where the fuel oil boiler is operated as the lag boiler, these requirements are reduced by 50%.  Daily: Inspection of boiler operation; 5 min/day  Monthly: Check burner and fuel system; Check gaskets for unusual wear, overheating, and leakage; 2 hours.  Annual Maintenance: Drain boiler, check interior for scale, clean combustion surfaces, perform combustion test, remove and clean low water cutoff probe, burner maintenance, replace any leaking elements or element gaskets; 2x per year, 8 hours each.  Annual Parts Allowance: $150 per year. Wood Boilers It is assumed that daily and weekly maintenance will be performed in-house and monthly and annual maintenance will be performed under a service contract. The wood boilers have considerably higher maintenance requirements. It is incumbent with a wood heating system that the operating personnel have a strong sense of ownership in the system and a willingness to monitor and maintain it.  Daily: Visual inspection of the boiler; 5 minutes (small boilers, 10 minutes large boilers). This work can be performed by Borough building maintenance.  Weekly: Close visual inspection of plant equipment; 30 minutes. This work can be performed by Borough building maintenance.  Monthly: Check critical functions, remove ash and clinkers; 2 hours. This work will require specialize training. The analysis is based on contracting this work.  Biannual: Inspections, lubing, burner maintenance, internal critical function checks, possible equipment replacement; 8 hours. This work will require specialize training. The analysis is based on contracting this work.  Annual Parts Allowance: $250 per year. Pumps  Require annual lubrication and periodic replacement. Replacement The fuel oil boilers have an expected service life of 35 years and will not require replacement during the 20-year analysis period. The wood boilers have an expected service life of 18 years. The analysis assumes that will operate satisfactorily throughout the 20-year analysis period. Haines Borough 15 Wood Heating Analysis ENERGY COSTS Fuel Oil Current Cost The Haines Borough currently pays $4.22 per gallon for #2 heating oil. Future Inflation Base Fuel Oil Case: In recent years, fuel oil inflation has been very sporadic, with a decidedly upward trend in prices. Looking at oil prices over a longer period will smooth out the data and provide a longer-term assessment of future costs. Using this perspective over the past 25-years, fuel oil inflation has averaged 6.6% per year. The base case assumes that future fuel inflation will continue at this rate. This results in a 2013 price of $4.50 per gallon. High Fuel Oil Case: There is potential for world oil demand to increase due to increased consumption by developing countries and/or an expanding global economy. Disruption of the world oil supplies could also affect supply, causing prices to rise. The high case assumes these factors and others could cause fuel inflation to be higher than the base case at 8% per year. Low Fuel Oil Case: The U.S. Energy Information Agency predicts fuel oil inflation of 4.8% per year for the next 25-years. While this reference has historically under-predicted actual fuel oil inflation, it is possible that future fuel oil inflation may be lower than the base case due to: new technologies that increase oil field production; new sources such as oil sands; and efficiency gains that reduce global oil demand. These factors and others could lead to less demand which would result in fuel oil inflation lower than the base case at 4.8% per year. Wood Pellets Supply Source Wood heating of commercial and institutional buildings is increasing in use in the United States, but the industry is in its relative infancy in Southeast Alaska. Boilers can burn pellets, chips, discs, cordwood, and hog fuel (chopped wood). Of these energy sources, only pellets are manufactured to known standards for energy content, moisture levels, ash content, etc. Premium-grade pellets are currently the only suitable wood energy fuel for the buildings. This selection does not exclude other local wood energy supplies from being considered in the future if the Haines Borough installs a wood heating system(s). Other sources that can demonstrate the capability to supply wood heating energy in suitable quality and quantity, and offer a life cycle savings, will be considered. The following institutional Haines buildings are currently heating with wood pellets:  Chilkoot Indian Association Housing: Two 4-plexes. They direct purchase their pellets from Washington, ship them to the site, and load them in the pellet hopper. There current cost is $155 per ton plus $5.30 per 40# bag for shipping which comes to $420 per ton plus labor to load the hopper. Sealaska Corporation, through their Sealaska Global Logistics subsidiary, is committed to distributing wood pellets throughout Southeast Alaska. There are no local pellet sources, so they purchase pellets from the Pacific Northwest and distribute them to buildings in Southeast Alaska. The analysis is based on their pellet price. This does not exclude any other supplier from bidding on future pellet supply contracts if they can meet the pellet procurement requirements. Haines Borough 16 Wood Heating Analysis Other Sources The Chilkoot Indian Association has studied the idea of constructing a wood pellet plant in Haines. The plant could source beetle-killed wood from the Yukon or from the Haines State Forest. At the present time, they are in the initial stages of developing a plant to manufacture pellets from Yukon wood. If this plant is able to produce lower cost pellets, the results of this analysis may change. Dakwakak Development Corporation in the Yukon has looked into constructing a pellet plant but is not actively pursuing the idea. A pellet plant has just begun operation in Fairbanks. There have been some issues with quality control and the formation of clinkers within the boiler. Unfortunately, it is cost prohibitive to ship pellets for Fairbanks to Haines. Current Costs Sealaska has quoted a pellet price of $360 per ton. Future Inflation The recently released Draft Southeast Alaska Integrated Resource Plan (IRP) lays out a goal to convert 80% of the fuel oil heating load to wood heating. Unfortunately, the IRP does not provide or reference a market analysis of future pellet inflation, information that is basic to performing a wood heating analysis or making a long-term investment in a wood heating boiler. While Alaska and all of the states in the Pacific Northwest recognize wood heating as a viable heating option, none of them have performed research on long-term costs and sustainability under various load growth scenarios. Research on pellet pricing trends has failed to produce definitive information that can be used in predicting the rate of inflation in a Southeast Alaska energy analysis. Local pellet production is without history, with just one Ketchikan pellet mill in production for a few months. At this point, any pricing should assume pellets will be imported from the Pacific Northwest. Baseline Case: Historic pellet inflation factored over 20 years has approximated the rate of general inflation in the U.S. and in Europe, approximately 3%. In the shorter and more recent past (5-7 years) pellet inflation for some mills has averaged 4.5 to 5 percent. The following examples were found:  Tongass Forest Enterprises, Ketchikan: Current contract with Federal Government includes a 5% per year annual escalation factor.  Manke Lumber, Seattle: Price increases of ~5% over the past 5 years.  Pellets in New England averaged 4.6% annual increase from 1998-2010. However, Charlie Neibling of New England Wood Pellet recommends using 3% pellet inflation.  Case studies reviewed from Oregon, Montana and New England used inflation rates of 3.0 to 4.25 percent. From our research, a pellet inflation rate between 3% and 4.5% is defensible. This is a wide range that reflects the lack of independent study; critical information that is essential to evaluating the economics of wood heat. The analysis is based on a median pellet inflation rate of 3.75%. There are two sides to the issue of pellet inflation. A low inflation rate improves the short-term economics of conversion. From a long-term perspective, a higher inflation rate improves pellet manufacturer cash flow to cover increasing labor, material, and energy costs while offering incentive to invest in production equipment. This in turn leads to competition, which hopefully leads to better pricing. A 3.75% inflation rate aligns with the long-term perspective that is inherent with investment in a wood boiler. Haines Borough 17 Wood Heating Analysis Transportation accounts for 56% of the cost of pellets delivered to Haines. The fuel surcharge quoted by Alaska Marine Lines is 20% of the shipping cost. The following calculation uses this breakdown to determined that the sum of each of these factors and returns a delivered inflation rate of 3.6% Pellet Inflation = 44% of total cost x 3.75% pellet inflation = 1.7% Transportation (non-fuel) = 80% of 56% of total cost x 2.75% general inflation = 1.2% Transportation (Fuel) = 20% of 56% total cost x 6.6% oil inflation = 0.7% Total Pellet Inflation Rate = 3.6% High Case: If in the near term, pellets and fuel oil inflate at their base case predictions of 4% and 6.6%, the cost differential between them will increase in the future. This will provide greater incentive to convert to wood heating and the increasing cost difference will give pellet manufacturers an incentive to raise prices. Other factors that can lead to higher pellet costs are localized supply reductions that have occurred from time to time. Because this is a regional market the loss of one major supplier through fire or business shut-down can cause market disturbance. A high case of 5% reflects these factors. Low Case: If local pellet mill production develops, with competition, pellet prices for Southeast Alaska consumers could see a reduction because of reduced shipping costs. Or, if a robust wood products industry develops in Southeast Alaska, there will be more “waste” material that can be made into pellets. If this were to happen, pellet inflation could remain at the historic inflation rate of 3%. Electricity Current Cost The Alaska Power Company supplies power to the buildings. A review of the billing data shows that electric costs average $0.24 per kWh. Since electricity consumption is a minor part of a heating systems total energy use, this value is accepted for use in the analysis. Future Inflation It is assumed that electric rates will increase at 3% per year. This increases 2013 cost to $.25 per kWh. Haines Borough 18 Wood Heating Analysis Summary The following table summarizes the energy and economic factors used in the analysis. A sensitivity analysis is also provided to determine how modest variations in energy inflation affect the results. The following table shows the base, high and low case energy inflation that is applied to the analysis. Summary of Economic and Energy Factors Factor Rate or Cost Nominal Discount Rate 3% General Inflation Rate 2.75% Electricity, 2013 25¢ per kWh Electricity Inflation 3% Fuel Oil, 2013 $4.50 / gallon Fuel Oil Inflation 1 4.8%, 6.6% (Base), 8% Pellets $373.00 / ton Pellet Inflation 1 2.75%, 3.6% (Base), 5% 1. The inflation rates for fuel oil and wood pellets represent the base case and the low and high cases used for the sensitivity analysis. Haines Borough 19 Wood Heating Analysis Section 4 Life Cycle Cost Analysis INTRODUCTION This section provides the conceptual design and life cycle cost comparison of retaining the existing heating systems or converting to wood pellet heating systems. Incorporating wood boilers will require added investment in the boilers, storage, and integration with the existing building heating systems. ADMINISTRATION BUILDING Heating Options Status Quo The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the heating system including the boiler, pumps, piping, domestic hot water heating system, and appurtenances. Wood Heating Conversion This option replaces the existing heating system and adds a heat exchanger and pumps to separate the building heating system from the wood boiler system, and installs an exterior container that contains a wood boiler, pellet storage tank, boiler pump and appurtenances. The container is located within 5’ of the boiler room so the piping can be routed aboveground. A control system is installed to operate the boilers and pumps in a lead/standby configuration. Annual Costs The following table compares the 2013 annual maintenance and operating costs of the two options. In the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs. However, the lack of initial savings reduces the incentive to invest in a wood heating plant. Annual Costs – Administration Building Item Consumption 2013 Cost Status Quo Maintenance 78 hours $3,300 Fuel Oil 990 gals 4,500 Electricity 400 kWh 100 Total $ 7,900 Wood Pellet Conversion Maintenance 134 hours $8,600 Fuel Oil 100 gals 400 Pellets 9 tons 3,400 Electricity 2,200 kWh 500 Total $ 12,900 Haines Borough 20 Wood Heating Analysis Life Cycle Costs A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the lowest life cycle cost. When comparing the options under the base case, the wood boiler option has the following life cycle cost factors that are central to this result:  The construction costs are 390% higher.  The maintenance costs are 260% higher.  The energy costs are 29% lower. The findings indicate that the higher construction and operating costs are not offset by the energy savings. This causes the wood heating option to have a higher life cycle cost. For the Administration Building, the heating load is relatively low due to the lack of a ventilation system. The wood boiler is not able to generate sufficient energy savings to offset the higher construction and maintenance costs. This is true under all of the energy inflation cases. For the wood heating option to be preferred over the status quo—likely siphoning current dollars from other priorities—the system should overwhelmingly have a lower life cycle cost. This is not the case. Life Cycle Cost Comparison – Administration Building Heating System Construction Operating Energy Total LCC Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $154,000 $295,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $98,000 $565,000 Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $110,000 $251,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $93,000 $560,000 High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $107,000 $574,000 Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 Note: Highlighted costs are lowest life cycle cost in each category. Haines Borough 21 Wood Heating Analysis PUBLIC LIBRARY Heating Options Status Quo The building is heated by a fuel oil boiler that has over 20-years of remaining service life. The status quo option retains the existing heating system. Wood Heating Conversion This option retains the existing heating system, installs an exterior container that contains a wood boiler, pellet storage tank, boiler pump and appurtenances, and adds a heat exchanger and pumps to separate the building heating system from the wood boiler system. The container is located within 5’ of the boiler room so the piping can be routed aboveground. A control system is installed to operate the boilers and pumps in a lead/standby configuration. Annual Costs The following table compares the 2013 annual maintenance and operating costs of the two options. In the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs. However, the lack of initial savings reduces the incentive to invest in a wood heating plant. Annual Costs - Library Item Consumption 2013 Cost Status Quo Maintenance 74 hours $3,100 Fuel Oil 3,300 gals 14,800 Electricity 600 kWh 100 Total $ 18,000 Wood Pellet Conversion Maintenance 126 hours $8,000 Fuel Oil 340 gals 1,600 Pellets 26 tons 9,700 Electricity 3,000 kWh 700 Total $ 20,000 Life Cycle Costs A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the lowest life cycle cost. When comparing the options under the base case, the wood boiler option has the following life cycle cost factors that are central to this result:  An investment of $319,000 is required for the heating system.  The maintenance costs are 260% higher.  The energy costs are 43% lower. The findings indicate that the higher construction and operating costs are not offset by the energy savings. This causes the wood heating option to have a higher life cycle cost. Haines Borough 22 Wood Heating Analysis The wood boiler is not able to generate sufficient energy savings to offset the higher construction and maintenance costs. This is true under all of the energy inflation cases. For the wood heating option to be preferred over the status quo—likely siphoning current dollars from other priorities—the system should overwhelmingly have a lower life cycle cost. This is not the case. Life Cycle Cost Comparison - Library Heating System Construction Operating Energy Total LCC Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $504,000 $565,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $273,000 $749,000 Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $357,000 $418,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $258,000 $734,000 High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $298,000 $774,000 Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 Note: Highlighted costs are lowest life cycle cost in each category. VOCATIONAL EDUCATION BUILDING Heating Options Status Quo The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the heating system including the boiler, pumps, piping, domestic hot water system, and appurtenances. Wood Heating Conversion This option replaces the existing heating system and adds a heat exchanger and pumps to separate the building heating system from the wood boiler system, and installs an exterior container that contains a wood boiler, pellet storage tank, boiler pump and appurtenances. The container is located within 5’ of the boiler room so the piping can be routed aboveground. A control system is installed to operate the boilers and pumps in a lead/standby configuration. Annual Costs The following table compares the 2013 annual maintenance and operating costs of the two options. In the initial years, the annual cost of operating a wood boiler will exceed the annual cost of the status quo option. This difference will decrease over time as fuel oil prices inflate faster than pellet costs. However, the lack of initial savings reduces the incentive to invest in a wood heating plant. Haines Borough 23 Wood Heating Analysis Annual Costs – Vocational Education Item Consumption 2013 Cost Status Quo Maintenance 78 hours $ 3,300 Fuel Oil 1,650 gals 7,400 Electricity 390 kWh 200 Total $ 10,900 Wood Pellet Conversion Maintenance 132 hours $8,500 Fuel Oil 170 gals 800 Pellets 14 tons 5,200 Electricity 3,000 kWh 700 Total $ 15,200 Life Cycle Costs A life cycle cost comparison of the options shows that retaining the status quo fuel oil boiler has the lowest life cycle cost. When comparing the options under the base case, the wood boiler option has the following life cycle cost factors that are central to this result:  The construction costs are 480% higher.  The maintenance costs are 260% higher.  The energy costs are 33% lower. The findings indicate that the higher construction and operating costs are not offset by the energy savings. This causes the wood heating option to have a higher life cycle cost. Life Cycle Cost Comparison – Vocational Education Heating System Construction Operating Energy Total LCC Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000 High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $182,600 $311,700 Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $67,500 $63,900 $182,600 $314,000 Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 Pellet and Fuel Oil Boilers $312,000 $165,000 $166,000 $643,000 Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 Pellet and Fuel Oil Boilers $312,000 $165,000 $139,000 $616,000 Note: Highlighted costs are lowest life cycle cost in each category. Haines Borough 24 Wood Heating Analysis SCHOOL AND POOL Heating Options The School Building boilers also supply heat to the Borough swimming pool. Status Quo The school building has a three-boiler heating plant with over 20-years of remaining service life. The status quo option retains the existing heating system. Wood Heating Conversion Wood Heating System: This option retains the existing heating system but disables one of the fuel oil boilers. A boiler building is constructed on the adjacent Elks Lodge property—it is assumed that the Borough will purchase the property—and a two wood boiler heating plant is constructed to supply the building. A heat exchanger and pumps are installed in the boiler room to separate the building heating system from the wood boiler system. A control system is installed to operate the boilers and pumps in a priority lead/standby configuration. Annual Costs The following table compares the 2013 annual maintenance and operating costs of the two options. The wood boiler option has lower annual costs throughout the life of the boiler due to energy cost savings offsetting higher maintenance costs. Annual Costs – School and Pool Item Consumption 2013 Cost Status Quo Maintenance 162 hours $7,000 Fuel Oil 38,400 gals 173,000 Electricity 6,800 kWh 2,000 Total $ 182,000 Wood Pellet Conversion Maintenance 288 hours $18,000 Fuel Oil 3,800 gals 17,000 Pellets 323 tons 121,000 Electricity 21,000 kWh 5,000 Total $ 161,000 Life Cycle Costs A life cycle cost comparison of the base case shows that the two options have essentially equal life cycle costs. The high heating requirements of the school give the wood boiler the ability to generate sufficient energy savings to offset higher construction and operating costs. When comparing the options, the wood boiler option has the following life cycle cost factors that are central to this result:  An investment of $1,917,000 in the wood heating system is required.  The maintenance costs are 260% higher.  The energy costs are 38% lower. Haines Borough 25 Wood Heating Analysis The life cycle cost comparison changes in a predictable way with the different energy inflation cases. Where fuel oil inflation is lower or pellet inflation is higher, the fuel oil boiler option has a lower life cycle cost. Under the scenarios where fuel oil inflation is higher or pellet inflation is lower, the wood boiler option has a lower life cycle cost. All of the options and scenarios have a life cycle cost of $5.5M +/- 10%, which is very close when estimating and forecasting costs for 20 years. For the wood heating option to be preferred over the status quo—likely siphoning current dollars from other priorities—the system should overwhelmingly have a lower life cycle cost. There is no compelling reason to invest in a wood heating system. Life Cycle Cost Comparison – School and Pool Heating System Construction Operating Energy Total LCC Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000 High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,931,000 $6,066,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,261,400 $5,526,400 Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $4,198,000 $4,333,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,088,100 $5,353,100 High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,581,800 $5,846,800 Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 Pellet and Fuel Oil Boilers $1,917,000 $348,000 $2,963,300 $5,228,300 Note: Highlighted costs are lowest life cycle cost in each category. DISTRICT HEATING SYSTEM Heating Options Status Quo The four buildings will have the same scope of work as for the individual wood boiler systems.  Administration Building: The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the heating system including the boiler, pumps, piping, domestic hot water system, and appurtenances.  Library: The building is heated by a fuel oil boiler that has over 20-years of remaining service life. The status quo option retains the existing heating system.  School and Pool: The school building has a three-boiler heating plant with over 20-years of remaining service life. The status quo option retains the existing heating system.  Vocational Education: The building is heated by a fuel oil boiler that is at the end of its service life. This option replaces the heating system including the boiler, pumps, piping, domestic hot water system, and appurtenances. Haines Borough 26 Wood Heating Analysis Wood Heating Conversion Wood Heating System: This option retains the existing heating systems in each building. A district heating plant is constructed on the adjacent Elks Lodge property—it is assumed that the Borough will purchase the property—with two wood boilers to supply the buildings. The buildings are connected by buried piping in insulated enclosures. A heat exchanger and pump is installed in each boiler room to separate the building heating system from the wood heat distribution system. A control system is installed in each boiler room to operate the local boilers and pumps when the wood boiler is not supplying sufficient heat. Annual Costs The following table compares the 2013 annual maintenance and operating costs of the two options. The wood boiler option has lower annual costs throughout the life of the boiler due to lower maintenance and energy costs. Annual Costs – District Heating System Item Consumption 2013 Cost Status Quo Maintenance 398 hours $ 17,000 Fuel Oil 44,000 gals 199,000 Electricity 8,500 kWh 2,000 Total $ 218,000 Wood Pellet Conversion Maintenance 324 hours $ 20,000 Fuel Oil 2,500 gals 11,000 Pellets 416 tons 155,000 Electricity 53,000 kWh 13,000 Total $ 199,000 Life Cycle Costs A life cycle cost comparison of the base case shows that the status quo option has the lowest life cycle cost under all scenario except the high fuel oil case at 8% inflation. The high heating requirements of the buildings fail to generate sufficient energy savings to offset the high cost of installing the wood heating plant and buried distribution piping. The district plant does reduce maintenance costs over the status quo because the majority of the maintenance is shifted from the individual fuel oil boilers to the wood boilers. When comparing the options, the wood boiler option has the following life cycle cost factors that are central to this result:  An additional investment of $3,248,000 in the wood heating system is required.  The maintenance costs are 7% lower because the maintenance of the wood plant is less than maintaining individual boilers.  The energy costs are 47% lower. The district plant supplies 95% of the heating load consuming less expensive wood energy. Haines Borough 27 Wood Heating Analysis All of the options and scenarios have a life cycle cost of $6.3 +/- 10%, which is very close when estimating and forecasting costs for 20 years. For the wood heating option to be preferred over the status quo—likely siphoning current dollars from other priorities—the system should overwhelmingly have a lower life cycle cost. There is no compelling incentive to invest in a wood heating system. Life Cycle Cost Comparison – District Heating System Heating System Construction Operating Energy Total LCC Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000 High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $6,825,000 $7,302,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,144,000 $6,846,000 Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $4,832,000 $5,309,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,062,000 $6,764,000 High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,492,000 $7,194,000 Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $2,899,000 $6,601,000 Note: Highlighted costs are lowest life cycle cost in each category. SUMMARY This analysis determined that there is not sufficient incentive to invest in wood heating systems. Wood heating is the higher life cycle cost option on the three smaller buildings, only breaks even for the School, and is higher for the district plant. The findings are typical of other analyses for buildings in Southeast Alaska. The use of wood as a heating source is increasing in North America, primarily because of energy cost savings. The findings do not directly challenge this trend, but instead exhibit the following realities of wood heating in Haines:  Energy Costs: Wood pellets are more expensive in Haines and are subject to greater price volatility due to imbedded transportation energy. In the Pacific Northwest, the delivered cost is $190 per ton. Sealaska Corporation is quoting $360 per ton (89% higher).  Construction Costs: Haines has higher construction costs due to higher labor and material costs. This reality has historically hindered the incentive to invest in energy efficiency throughout the region. The prudent course of action is to wait and see how this energy source plays out over time. Important signals will be the influx of private money into the industry and favorable long-term assessments of the resource that reduce the risk. There is little lost in waiting as the economics do not currently provide a strong incentive to invest in wood heating. Haines Borough 28 Wood Heating Analysis Blank page Appendix A Conceptual Design Diagrams DISTRICT HEATING PLANT CONCEPTUAL DESIGN SITE1 1WOOD HEATING PLANT CONCEPTUAL DESIGNSCHOOL/POOL BUILDINGS 1W0OD HEATING PLANT CONCEPTUAL DESIGN - LIBRARY,ADMINISTRATION, VOC-ED BUILDINGS 1WOOD HEATING PLANT CONCEPTUAL DESIGNDISTRICT WIDE Appendix B Sizing and Life Cycle Cost Calculations Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Administration Building Summary Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.6% Fuel Inflation 0.2% Real Discount Rate 3.0% Electricity Inflation 2.75% Pellet Inflation Results Construction Annual Energy Total % of Base Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 - Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 203% High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $154,000 $295,000 - Pellet and Fuel Oil Boilers $300,000 $167,000 $98,000 $565,000 192% Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $110,000 $251,000 - Pellet and Fuel Oil Boilers $300,000 $167,000 $93,000 $560,000 223% High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 - Pellet and Fuel Oil Boilers $300,000 $167,000 $107,000 $574,000 209% Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $77,000 $64,000 $133,000 $274,000 - Pellet and Fuel Oil Boilers $300,000 $167,000 $89,000 $556,000 203% June 7, 2012 Page 1 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Admin Building Annual Energy Requirements Sizing Analysis Design Heating Load, Estimated BTUH/sqft sqft MBH 25 3,538 88 Existing Boilers Boiler MBH B-1 129 Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH Wood 88 70% 62 62 B-1 88 146% 129 0 Total 191 62 % Design 216% 70% Annual Heating Load Fuel Oil Use Year Gallons 2010 980 2011 1,120 Average 1,050 Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU 1,050 138.5 68% 98,889 Status Quo: Fuel Oil Boilers Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 98,889 100% 98,889 72% 138.5 992 Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh 11 15 4 25 0.04 70% 400 Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag) Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons 98,889 90% 89,000 70% 15,560 9.0 0% 9.0 Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 98,889 10% 9,889 72% 138.5 99 Electric Loads Load Ave GPM Head bhp η Hours kWh Boiler pump 4 15 0.03 70% 8,760 240 HX Pump 4 15 0.03 70% 8,760 240 Silo Auger 0.50 70% 500 266 Feed Auger 0.25 70% 3,000 799 Induction Fan 0.25 89% 3,000 629 2,174 June 7, 2012 Page 2 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Administration Building Status Quo: Fuel Oil Boiler Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.00% Electricity Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Heating Plant Demolition (assume no soil remediation) Heating Plant 1 ea $5,000 $5,000 Fuel tank, aboveground 1 ea $500 $500 62 MBH fuel oil boiler 1 ea $9,000 $9,000 Chimney 1 ea $1,600 $1,600 Heating pumps 1 ea $1,500 $1,500 Piping and appurtenances 1 ls $5,000 $5,000 DHW heat pump 1 ea $4,000 $4,000 Replace fuel system 1 ea $6,000 $6,000 Single phase electric service 3 ea $600 $1,800 Contingencies Estimating contingency 15% $5,160 Haines locality factor 30% $11,868 Overhead & profit 30% $11,868 Design fees 10% $6,330 Project management 10% $6,963 Total Construction Costs $77,000 Annual Costs Qty Unit Base Cost Present Value Fuel Oil Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673 Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance 1 - 20 4 hrs $40.00 $3,112 DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112 Total Annual Costs $64,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 992 gal $4.50 $130,544 Electricity 1 - 20 400 kWh $0.25 $1,998 Total Energy Costs $133,000 $274,000 0 0 0 0 0 0 0 Present Worth Years 0 0 Years 0 0 0 June 7, 2012 Year 0 0 Page 3 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Administration Building Pellet and Fuel Oil Boilers Basis 20 Study Period (years) 6.60% Fuel Inflation 3.00% Nominal Discount Rate 3.00% Electricity Inflation 0.24% Real Discount Rate 2.75% Pellet Inflation 2.75% General Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Heating Plant Demolition (assume no soil remediation) Heating Plant 1 ea $5,000 $5,000 Fuel tank 1 ea $500 $500 62 MBH fuel oil boiler 1 ea $9,000 $9,000 Chimney 1 ea $1,600 $1,600 Heating pumps 1 ea $1,500 $1,500 Piping and appurtenances 1 ls $5,000 $5,000 DHW heat pump 1 ea $4,000 $4,000 Replace fuel system 1 ea $4,000 $4,000 Electrical 3 ea $600 $1,800 Pellet Boiler Containerized 88 MBH pellet boiler, storage, pump, appurt 1 ea $50,000 $50,000 Installation: Pad 1 ea $2,500 $2,500 Piping to Bldg 1 ea $1,000 $1,000 Startup 1 ea $5,000 $5,000 Pellets 3.5 ton $373 $1,306 Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000 Accumulator tank 1 ea $2,500 $2,500 Piping and connection to primary loop 1 ea $4,000 $4,000 Electrical Single phase electric load 4 ea $1,500 $6,000 Pellet boiler service 1 ea $6,000 $6,000 Controls $0 Lead/lag control 1 ea $20,000 $20,000 Contingencies Estimating contingency 15% $20,206 Haines locality factor 30% $46,473 Overhead & profit 30% $46,473 Design fees 10% $24,786 Project management 10% $27,264 Total Construction Costs $300,000 0 0 0 0 0 0 0 0 0 0 0 0 0 June 7, 2012 Year 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 4 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Administration Building Pellet and Fuel Oil Boilers June 7, 2012 Annual Costs Qty Unit Base Cost Present Value Wood Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229 Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350 Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233 Parts Allowance 1 - 20 1 LS $250.00 $4,863 Fuel Oil Boiler Maintenance Monthly: 1 hours per month 1 - 20 12 hrs $40.00 $9,336 Annual: 8 hours, 1x per year 1 - 20 8 hrs $40.00 $6,224 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance, 4 hrs ea 1 - 20 12 hrs $40.00 $9,336 Glycol tank and pump 1 - 20 2 hrs $40.00 $1,556 DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112 Total Annual Costs $167,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 99 gal $4.50 $13,054 Pellets 1 - 20 9.0 tons $373.00 $65,455 Electricity 1 - 20 2,174 kWh $0.25 $10,869 Total Energy Costs $89,000 $556,000 Years Years Present Worth Page 5 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Haines Public Library Summary Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.6% Fuel Inflation 0.2% Real Discount Rate 3.0% Electricity Inflation 2.75% Pellet Inflation Results Construction Annual Energy Total % of Base Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 - Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 147% High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $504,000 $565,000 - Pellet and Fuel Oil Boilers $319,000 $157,000 $273,000 $749,000 133% Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $357,000 $418,000 - Pellet and Fuel Oil Boilers $319,000 $157,000 $258,000 $734,000 176% High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 - Pellet and Fuel Oil Boilers $319,000 $157,000 $298,000 $774,000 157% Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $61,000 $432,000 $493,000 - Pellet and Fuel Oil Boilers $319,000 $157,000 $248,000 $724,000 147% June 7, 2012 Page 1 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Haines Public Library Annual Energy Requirements Sizing Analysis Design Heating Load, Estimated BTUH/sqft sqft MBH 30 7,040 211 Existing Boilers Boiler MBH B-1 448 Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH Wood 211 70% 148 148 B-1 211 212% 448 0 Total 596 148 % Design 282% 70% Annual Heating Load Fuel Oil Use Year Gallons 2010 3,240 2011 3,270 Average 3,260 Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU 3,260 138.5 68% 307,027 Status Quo: Fuel Oil Boilers Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 307,027 100% 307,027 68% 138.5 3,260 Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh 35 20 12 12 0.06 70% 596 Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag) Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons 307,027 90% 276,324 70% 15,560 26.0 0% 26.0 Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 307,027 10% 30,703 70% 138.5 317 Electric Loads Load Ave GPM Head bhp η Hours kWh Boiler pump 12 12 0.06 70% 8,760 596 HX Pump 12 8 0.04 70% 8,760 397 Silo Auger 0.50 70% 500 266 Feed Auger 0.25 70% 3,500 933 Induction Fan 0.25 89% 3,500 733 2,925 June 7, 2012 Page 2 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Public Library Status Quo: Fuel Oil Boiler Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.00% Electricity Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Existing Heating Plant Retain existing boiler 1 ea $0 $0 Contingencies Estimating contingency 15% $0 Haines locality factor 30% $0 Overhead & profit 30% $0 Design fees 10% $0 Project management 10% $0 Total Construction Costs $0 Annual Costs Qty Unit Base Cost Present Value Fuel Oil Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673 Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance 1 - 20 4 hrs $40.00 $3,112 Total Annual Costs $61,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 3,260 gal $4.50 $429,149 Electricity 1 - 20 596 kWh $0.25 $2,978 Total Energy Costs $432,000 $493,000 0 Present Worth June 7, 2012 Year 0 Years 0 0 Years 0 0 Page 3 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Public Library Pellet and Fuel Oil Boilers Basis 20 Study Period (years) 6.60% Fuel Inflation 3.00% Nominal Discount Rate 3.00% Electricity Inflation 0.24% Real Discount Rate 2.75% Pellet Inflation 2.75% General Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Existing Heating Plant Convert to primary/secondary 1 ea $6,000 $6,000 Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000 Accumulator tank 1 ea $4,000 $4,000 Piping and connection to primary loop 1 ea $4,000 $4,000 Pellet Boiler Containerized 148 MBH pellet boiler, storage, pump, appurt 1 ea $67,000 $67,000 Installation: Concrete Pad 1 ea $3,000 $3,000 Piping to Bldg 1 ea $1,200 $1,200 Pellets 9.5 ton $373 $3,544 Startup 1 ea $5,000 $5,000 Heat exchanger, pump, glycol pump, and piping 1 ea $5,000 $5,000 Accumulator tank 1 ea $4,000 $4,000 Piping and connection to primary loop 1 ea $6,000 $6,000 Electrical Electric - single phase load 3 ea $1,500 $4,500 Pellet boiler service 1 ea $6,000 $6,000 Controls $0 Lead/lag control 1 ea $20,000 $20,000 Contingencies Estimating contingency 15% $21,487 Haines locality factor 30% $49,419 Overhead & profit 30% $49,419 Design fees 10% $26,357 Project management 10% $28,992 Total Construction Costs $319,000 June 7, 2012 Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 4 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Public Library Pellet and Fuel Oil Boilers June 7, 2012 Annual Costs Qty Unit Base Cost Present Value Wood Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229 Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350 Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233 Parts Allowance 1 - 20 1 LS $250.00 $4,863 Fuel Oil Boiler Maintenance Monthly: 1 hours per month 1 - 20 12 hrs $38.50 $8,986 Annual: 8 hours, 1x per year 1 - 20 8 hrs $38.50 $5,991 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance 1 - 20 4 hrs $40.00 $3,112 Glycol tank and pump 1 - 20 2 hrs $40.00 $1,556 Total Annual Costs $157,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 340 gal $4.50 $44,758 Pellets 1 - 20 26.0 tons $373.00 $189,092 Electricity 1 - 20 2,925 kWh $0.25 $14,624 Total Energy Costs $248,000 $724,000Present Worth Years Years Page 5 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Vocational Education Building Summary Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.6% Fuel Inflation 0.2% Real Discount Rate 3.0% Electricity Inflation 3.60% Pellet Inflation Results Construction Annual Energy Total % of Base Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 - Pellet and Fuel Oil Boilers $312,000 $165,000 $148,000 $625,000 179% High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $182,600 $311,700 - Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 200% Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $67,500 $63,900 $182,600 $314,000 - Pellet and Fuel Oil Boilers $312,000 $165,000 $145,000 $622,000 198% High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 - Pellet and Fuel Oil Boilers $312,000 $165,000 $166,000 $643,000 184% Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $65,200 $63,900 $220,900 $350,000 - Pellet and Fuel Oil Boilers $312,000 $165,000 $139,000 $616,000 176% June 7, 2012 Page 1 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Vocational Education Building Annual Energy Requirements Sizing Analysis Design Heating Load, Estimated BTUH/sqft sqft MBH 25 5,000 125 Existing Boilers Boiler MBH B-1 190 Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH Wood 125 70% 88 88 B-1 190 70% 133 0 Total 221 88 % Design 176% 70% Annual Heating Load Fuel Oil Use Year Gallons 2010 1,705 2011 1,787 Average 1,750 Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU 1,750 138.5 68% 164,815 Status Quo: Fuel Oil Boilers Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 164,815 100% 164,815 72% 138.5 1,653 Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh 19 20 6 25 0.07 70% 666 Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag) Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Container Loss tons 164,815 90% 148,334 70% 15,560 14.0 0% 14.0 Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 164,815 10% 16,482 70% 138.5 170 Electric Loads Load Ave GPM Head bhp η Hours kWh Boiler Pump 6 25 0.07 70% 8,760 666 HX Pump 6 15 0.04 70% 8,760 400 Silo Auger 0.50 70% 500 266 Feed Auger 0.25 70% 3,500 933 Induction Fan 0.25 89% 3,500 733 2,998 June 7, 2012 Page 2 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Vocational Education Building Status Quo: Fuel Oil Boiler Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.00% Electricity Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Heating Plant Demolish heating plant 1 ea $5,000 $5,000 190 MBH fuel oil boiler 1 ea $10,500.00 $10,500 Chimney 1 ea $1,600.00 $1,600 Heating pumps 1 ea $2,000.00 $2,000 Piping and appurtenances 1 ls $5,000.00 $5,000 DHW heat pump 1 ea $4,000.00 $4,000 Electrical 2 ea $600.00 $1,200 Contingencies Estimating contingency 15% $4,395 Haines locality factor 30% $10,108.50 Overhead & profit 30% $10,108.50 Design fees 10% $5,391.20 Project management 10% $5,930.32 Total Construction Costs $65,200 Annual Costs Qty Unit Base Cost Present Value Fuel Oil Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Monthly: 2 hours per month 1 - 20 24 hrs $40.00 $18,673 Annual: 8 hours, 2x per year 1 - 20 16 hrs $40.00 $12,448 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance 1 - 20 4 hrs $40.00 $3,112 DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112 Total Annual Costs $63,900 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 1,653 gal $4.50 $217,573 Electricity 1 - 20 666 kWh $0.25 $3,330 Total Energy Costs $220,900 $350,000 June 7, 2012 Year 0 0 0 0 0 0 Present Worth 0 0 Years 0 0 Years 0 0 Page 3 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Vocational Education Building Pellet and Fuel Oil Boilers Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.00% Electricity Inflation 3.60% Pellet Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Heating Plant Demolish heating plant 1 ea $5,000 $5,000 133 MBH fuel oil boiler 1 ea $10,000 $10,000 Chimney 1 ea $1,600 $1,600 Heating pumps 1 ea $1,500 $1,500 Piping and appurtenances 1 ls $5,000 $5,000 DHW heat pump 1 ea $4,000 $4,000 Electrical 3 ea $600 $1,800 Pellet Boiler Containerized 88 MBH pellet boiler, storage, pump, appurt 1 ea $55,000 $55,000 Installation: Concrete Pad 1 ea $2,500 $2,500 Piping to Bldg 1 ea $1,000 $1,000 Startup 1 ea $5,000 $5,000 Pellets 3.5 ton $373 $1,306 Heat exchanger, pump, glycol pump, and piping 1 ea $4,000 $4,000 Accumulator tank 1 ea $2,500 $2,500 Piping and connection to primary loop 1 ea $4,000 $4,000 Electrical Single phase loads 4 ea $1,500 $6,000 Pellet boiler service 1 ea $10,000 $10,000 Controls $0 Lead/lag control 1 ea $20,000 $20,000 Contingencies Estimating contingency 15% $21,030.83 Haines locality factor 30% $48,370.90 Overhead & profit 30% $48,370.90 Design fees 10% $25,797.81 Project management 10% $28,377.59 Total Construction Costs $312,000 0 0 0 0 0 0 0 0 June 7, 2012 Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 4 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Vocational Education Building Pellet and Fuel Oil Boilers June 7, 2012 Annual Costs Qty Unit Base Cost Present Value Wood Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Weekly: 30 minutes per week 1 - 20 26 hrs $40.00 $20,229 Monthly: 2 hours per month 1 - 20 24 hrs $110.00 $51,350 Annual: 8 hours, 2x per year 1 - 20 16 hrs $110.00 $34,233 Parts Allowance 1 - 20 1 LS $250.00 $4,863 Fuel Oil Boiler Maintenance Monthly: 1 hours per month 1 - 20 12 hrs $38.50 $8,986 Annual: 8 hours, 1x per year 1 - 20 8 hrs $38.50 $5,991 Parts Allowance 1 - 20 1 LS $150.00 $2,918 Pump Maintenance 1 - 20 12 hrs $40.00 $9,336 DHW heat pump maintenance 1 - 20 4 hrs $40.00 $3,112 Total Annual Costs $165,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 170 gal $4.50 $22,379 Pellets 1 - 20 14.0 tons $373.00 $111,070 Electricity 1 - 20 2,998 kWh $0.25 $14,990 Total Energy Costs $148,000 $625,000 Years Years Present Worth Page 5 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Haines School and Pool Wood Heating Analysis Summary Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.6% Fuel Inflation 0.2% Real Discount Rate 3.0% Electricity Inflation 3.60% Pellet Inflation Results Construction Annual Energy Total % of Base Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 - Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,177,000 $5,442,000 104% High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,931,000 $6,066,000 - Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,261,400 $5,526,400 91% Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $4,198,000 $4,333,000 - Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,088,100 $5,353,100 124% High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 - Pellet and Fuel Oil Boilers $1,917,000 $348,000 $3,581,800 $5,846,800 112% Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $0 $135,000 $5,086,000 $5,221,000 - Pellet and Fuel Oil Boilers $1,917,000 $348,000 $2,963,300 $5,228,300 100% June 7, 2012 Page 1 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Haines School and Pool Wood Heating Analysis Annual Energy Requirements Sizing Analysis Design Heating Load, Estimated BTUH/sqft sqft MBH 39 94,612 3,690 Existing Boilers Boiler MBH Firm B-1 1,632 1,632 B-2 1,632 1,632 B-3 1,632 4,896 3,264 Boiler Sizing Boiler Design MBH Factor Size, MBH Firm MBH Wood 3,690 35% 1,291 1,291 Wood 3,690 35% 1,291 1,291 B-1 1,632 100% 1,632 1,632 B-2 1,632 100% 1,632 Total 5,847 4,215 % Design 158% 114% Annual Heating Load Fuel Oil Use Year Gallons 2011 38,522 2012 38,241 Average 38,380 Heating Load, kBTU Fuel, gals kBTU/gal Efficiency Load, kBTU 38,380 138.5 68% 3,614,628 Status Quo: Fuel Oil Boilers Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 3,614,628 100% 3,614,628 68% 138.5 38,380 Boiler Pumping Ave MBH ΔT Ave GPM Head bhp η kWh 413 20 103 20 0.95 91% 6,809 Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag) Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons Bldg Loss tons 3,614,628 90% 3,253,166 68% 15,560 308 5% 323 Fuel Oil Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 3,614,628 10% 361,463 68% 138.5 3,838 Electric Loads Load Ave GPM Head bhp η Hours kWh Boiler pump 103 30 1.42 91% 8,760 10,214 HX Pump 103 15 0.71 91% 8,760 5,107 Silo Auger 0.50 70% 1,000 533 Feed Auger 0.25 70% 7,800 2,078 Induction Fan 0.5 89% 7,800 3,269 21,201 June 7, 2012 Page 2 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines School and Pool Wood Heating Analysis Status Quo: Fuel Oil Boiler Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.00% Electricity Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Existing Heating Plant Retain existing heating plant 1 ea $0.00 $0 Contingencies Estimating contingency 15% $0 Haines locality factor 30% $0 Overhead & profit 30% $0 Design fees 10% $0 Project management 10% $0 Total Construction Costs $0 Annual Costs Qty Unit Base Cost Present Value Fuel Oil Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Monthly: 2 hours per month 1 - 20 72 hrs $40.00 $56,018 Annual: 8 hours, 2x per year 1 - 20 48 hrs $40.00 $37,345 Parts Allowance 1 - 20 3 LS $150.00 $8,753 Pump Maintenance 1 - 20 12 hrs $40.00 $9,336 Total Annual Costs $135,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 38,380 gal $4.50 $5,052,373 Electricity 1 - 20 6,809 kWh $0.25 $34,047 Total Energy Costs $5,086,000 $5,221,000 0 Present Worth June 7, 2012 Year 0 Years 0 0 Years 0 0 Page 3 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines School and Pool Wood Heating Analysis Pellet and Fuel Oil Boilers Basis 20 Study Period (years) 6.60% Fuel Inflation 3.00% Nominal Discount Rate 3.00% Electricity Inflation 0.24% Real Discount Rate 3.60% Pellet Inflation 2.75% General Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Existing Heating Plant Disable fuel oil boiler: 1 of 3 1 ea $1,000.00 $1,000 Pellet Boiler Site Work Site survey, building site work 1 ls $25,000 $25,000 Water service, paving repair 50 lnft $200 $10,000 Sanitary sewer, paving repair 50 lnft $200 $10,000 Building Building: 30'x20' 600 sqft $300 $180,000 Service sink, cold water, DWH heater 1 ls $15,000 $15,000 Waste piping 1 ls $10,000 $10,000 Heating piping, unit heater 1 ls $15,000 $15,000 Ventilating unit with controls 4,000 cfm $6 $24,000 1,300 MBH pellet boiler w/ scrubbers and augers 2 ea $147,000 $294,000 Pellet silo 1 LS $40,000.00 $40,000 Pellets 20 tons $373.00 $7,460 Chimney 2 ea $8,000 $16,000 Accumulator tank 1 ea $12,000 $12,000 Boiler pumps, piping, glycol system 1 ea $25,000 $25,000 Startup 1 ea $6,500 $6,500 Piping to Bldg 100 lnft $350 $35,000 Electrical Electric service to Building 1 ls $23,000 $23,000 Panelboard 1 ls $9,000 $9,000 Lighting 1 ls $7,500 $7,500 Receptacles and circuiting 1 ls $3,000 $3,000 Single-phase Electrical 4 ls $1,500 $6,000 Three-phase electrical 4 ls $3,500 $14,000 Controls Boiler lead/lag control 1 ea $40,000.00 $40,000 Boiler pump control 1 ea $10,000.00 $10,000 School Boiler Room Heat exchanger, pump, and piping connection to primary loop 1 ea $15,000 $15,000 Three-phase electrical 1 ls $7,500 $7,500 Contingencies Estimating contingency 15% $129,144 Haines locality factor 30% $297,031 Overhead & profit 30% $297,031 Design fees 10% $158,417 Project management 10% $174,258.30 Total Construction Costs $1,917,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 June 7, 2012 Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 4 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines School and Pool Wood Heating Analysis Pellet and Fuel Oil Boilers June 7, 2012 Annual Costs Qty Unit Base Cost Present Value Wood Boiler Maintenance Daily: 10 minutes per day 1 - 20 61 hrs $40.00 $47,330 Weekly: 30 minutes per week, ea 1 - 20 52 hrs $40.00 $40,457 Monthly: 2 hours per month, ea 1 - 20 48 hrs $110.00 $102,700 Annual: 8 hours, 2x per year, ea 1 - 20 32 hrs $110.00 $68,467 Parts Allowance 1 - 20 2 LS $250.00 $9,725 Fuel Oil Boiler Maintenance Daily: 5 minutes per day 1 - 20 30 hrs $40.00 $23,665 Monthly: 1 hours per month 1 - 20 24 hrs $40.00 $18,673 Annual: 8 hours, 1x per year 1 - 20 16 hrs $40.00 $12,448 Parts Allowance 1 - 20 2 LS $150.00 $5,835 Pump Maintenance 1 - 20 24 hrs $40.00 $18,673 Total Annual Costs $348,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 3,838 gal $4.50 $505,237 Pellets 1 - 20 323.4 tons $373.00 $2,565,718 Electricity 1 - 20 21,201 kWh $0.25 $106,006 Total Energy Costs $3,177,000 $5,442,000 Years Years Present Worth Page 5 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 jim@alaskaenergy.us Haines Borough District Wood Heating System Summary Basis 20 Study Period (years) 2.75% General Inflation 5.25% Nominal Discount Rate 6.6% Fuel Inflation 2.4% Real Discount Rate 3.0% Electricity Inflation 3.60% Pellet Inflation Results Construction Annual Energy Total % of Base Base Case: 6.6% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 - Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,105,000 $6,807,000 108% High Fuel Oil Case: 8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $6,825,000 $7,302,000 - Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,144,000 $6,846,000 94% Low Fuel Oil Case: 4.8% Fuel Oil, 3.6% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $4,832,000 $5,309,000 - Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,062,000 $6,764,000 127% High Pellet Case: 6.6% Fuel Oil, 5% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 - Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $3,492,000 $7,194,000 114% Low Pellet Case: 6.6% Fuel Oil, 2.75% Wood Pellet Inflation Status Quo: Fuel Oil Boiler $150,000 $327,000 $5,854,000 $6,331,000 - Pellet Plant and Fuel Oil Boilers $3,398,000 $304,000 $2,899,000 $6,601,000 104% June 7, 2012 Page 1 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Vocational Education Building Annual Energy Requirements Sizing Analysis Wood Boiler Sizing Building Design MBH Factor Size, MBH GPM Pipe Admin 88 70% 62 9 1-1/2 Library 211 70% 148 22 1-1/2 School 3,690 70% 2,583 369 6 Voc-Ed 125 70% 88 13 1-1/2 4,115 Total 2,880 413 6 % Design 70% Annual Heating Load Buildings Building Load, kBtu Admin 98,889 Library 307,027 School 3,614,628 Voc-Ed 164,815 4,185,359 Distribution Losses Serve Size Length Loss, Btuh/sqft Loss, kBtu CHP to HS 6 300 26 68,328 HS to VocEd 1-1/2 700 12 73,584 CHP to Library 2-1/2 2,200 14 269,808 Lib to Admin 1-1/2 320 12 33,638 445,358 11% Heating Load, kBTU Load, kBTU 4,630,718 Status Quo: Fuel Oil Boilers Building Fuel, gal Elect, kWh Admin 992 400 Library 3,260 596 School 38,241 6,809 Voc-Ed 1,653 666 44,145 8,471 June 7, 2012 Page 2 Alaska Energy Engineering LLC CALCULATIONS 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@earthlink.net Vocational Education Building Annual Energy Requirements June 7, 2012 Option 1: Wood Boiler (Lead) and Fuel Oil Boiler (Lag) Wood Boiler Load, kBTU % Load Net, kBTU Efficiency kBTU/ton tons 4,630,718 95% 4,399,182 68% 15,560 416 Fuel Oil Boilers Load, kBTU % Load Net, kBTU Efficiency kBTU/gal Fuel, gals 4,630,718 5% 231,536 68% 138.5 2,458 Pumping System Ave MBH ΔT Ave GPM Head bhp η kWh Pri Pumps 207 18 1.71 91% 12,268 Dist Pumps 529 20 136 55 3.45 91% 24,741 Bldg Pumps 8,471 HP η Hours Silo Auger 0.50 70% 2,000 1,066 Feed Auger 0.25 70% 8,760 2,334 Induction Fan 0.5 89% 8,760 3,671 52,550 Electric Loads Load Number GPM Head bhp η kW Pri Pumps 1 413 18 3.42 89% 2.9 Sec Pumps 2 413 55 10.44 89% 17.5 Silo Auger 1 0.50 70% 0.5 Feed Auger 2 0.25 70% 0.5 Induction Fan 2 0.5 89% 0.8 22.3 Page 3 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Borough District Wood Heating System Status Quo: Fuel Oil Boiler Basis 20 Study Period (years) 2.75% General Inflation 3.00% Nominal Discount Rate 6.60% Fuel Inflation 0.24% Real Discount Rate 3.0% Electricity Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Admin Heating Plant Remove heating plant 1 ea $5,000 $5,000 Remove fuel tank, assume no remediation 1 ea $500 $500 62 MBH fuel oil boiler 1 ea $9,000.00 $9,000 Chimney 1 ea $1,600.00 $1,600 Heating pumps 2 ea $1,500.00 $3,000 Piping and appurtenances 1 ls $5,000.00 $5,000 DHW heat pump 1 ea $4,000.00 $4,000 Replace fuel system 1 ea $4,000.00 $4,000 Electrical 3 ea $1,500.00 $4,500 Replace Voc-Ed Heating Plant Demolish heating plant 1 ea $5,000 $5,000 150 MBH fuel oil boiler 1 ea $10,000.00 $10,000 Chimney 1 ea $1,600.00 $1,600 Heating pumps 1 ea $2,000.00 $2,000 Piping and appurtenances 1 ls $5,000.00 $5,000 DHW heat pump 1 ea $4,000.00 $4,000 Electrical 2 ea $1,500.00 $3,000 Contingencies Estimating contingency 15% $10,080 Haines locality factor 30% $23,184 Overhead & profit 30% $23,184 Design fees 10% $12,364.80 Project management 10% $13,601.28 Total Construction Costs $150,000 Annual Costs Qty Unit Base Cost Present Value Fuel Oil Boiler Maintenance Daily: 5 minutes per day, ea 1 - 20 122 hrs $40.00 $94,660 Monthly: 2 hours per month, ea 1 - 20 144 hrs $40.00 $112,036 Annual: 8 hours, 2x per year, ea 1 - 20 96 hrs $40.00 $74,691 Parts Allowance 1 - 20 6 LS $150.00 $17,506 Pump Maintenance 1 - 20 24 hrs $40.00 $18,673 DHW heat pump maintenance 1 - 20 12 hrs $40.00 $9,336 Total Annual Costs $327,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 44,145 gal $4.50 $5,811,340 Electricity 1 - 20 8,471 kWh $0.25 $42,353 Total Energy Costs $5,854,000 $6,331,000 0 0 0 0 0 0 0 0 0 0 0 0 0 Present Worth June 7, 2012 Year Years 0 0 Years 0 0 0 0 0 0 Page 4 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Borough District Wood Heating System Pellet Plant and Fuel Oil Boilers Basis 20 Study Period (years) 2.75% General Inflation 5.25% Nominal Discount Rate 6.60% Fuel Inflation 2.43% Real Discount Rate 3.00% Electricity Inflation 3.60% Pellet Inflation Construction Costs Qty Unit Base Cost Year 0 Cost Replace Heating Plant Admin Bldg Demolition (assume no soil remediation) Heating Plant 1 ea $5,000 $5,000 Fuel tank, aboveground 1 ea $500 $500 106 MBH fuel oil boiler 1 ea $9,000.00 $9,000 Heating pumps 2 ea $1,500.00 $3,000 Piping and appurtenances 1 ls $8,000.00 $8,000 DHW heat pump 1 ea $4,000.00 $4,000 Replace fuel system 1 ea $6,000.00 $6,000 Vocational Education Demolish heating plant 1 ea $5,000 $5,000 106 MBH fuel oil boiler 1 ea $9,000.00 $9,000 Heating pumps 2 ea $1,500.00 $3,000 Piping and appurtenances 1 ls $8,000.00 $8,000 DHW heat pump 1 ea $4,000.00 $4,000 District Heat Plant Site Work Site survey, building site work 1 ls $25,000 $25,000 Water service, paving repair 50 lnft $200 $10,000 Sanitary sewer, paving repair 50 lnft $200 $10,000 Building Building: 30'x20' 600 sqft $250 $150,000 Service sink, cold water, hot water, DHW heater 1 ls $15,000 $15,000 Waste piping 1 ls $10,000 $10,000 Heating piping, Unit Heater 1 ls $10,000 $10,000 Ventilating unit with controls 4,000 cfm $6 $24,000 Heating Plant 1,300 MBH pellet boiler w/ augers 2 ea $147,000 $294,000 Pellet silo, 20 tons 1 LS $40,000.00 $40,000 Pellets 20 tons $360.00 $7,200 Chimney 2 ea $8,000 $16,000 Accumulator tank 1 ea $12,000 $12,000 Boiler pumps, piping, glycol system 1 ea $27,500 $27,500 Startup 1 ea $6,500 $6,500 Distribution pumps, piping, appurtenances 1 ea $20,000 $20,000 Controls 1 ea $40,000 $40,000 Controls Boiler lead/lag control 1 ea $40,000.00 $40,000 Boiler pump control 1 ea $10,000.00 $10,000 Distribution pump controls 1 ea $15,000.00 $15,000 Energy meters 2 ea $2,000.00 $4,000 0 0 0 0 0 0 June 7, 2012 Year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Page 5 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Borough District Wood Heating System Pellet Plant and Fuel Oil Boilers June 7, 2012 Construction Costs Qty Unit Base Cost Year 0 Cost Electrical Electric service to Building 1 ls $23,000 $23,000 Panelboard 1 ls $9,000 $9,000 Lighting 1 ls $7,500 $7,500 Receptacles and circuiting 1 ls $3,000 $3,000 Single-phase Electrical 4 ls $1,500 $6,000 Three-phase electrical 4 ls $3,500 $14,000 Distribution System Plant to HS Direct bury piping to boiler room; two @ 6" 150 lnft $350.00 $52,500 Piping to heat exchanger 1 ls $5,000.00 $5,000 Heat exchanger and primary pump 1 ls $30,000.00 $30,000 Primary pump and piping to building connection 1 ls $12,000.00 $12,000 High School to Voc-Ed Indoor piping 100 lnft $40 $4,000 Buried piping 250 lnft $175 $43,750 Piping to heat exchanger 1 ls $2,000.00 $2,000 Heat exchanger and primary pump 1 ls $6,000.00 $6,000 Primary pump and piping to building connection 1 ls $3,500.00 $3,500 Plant to Library $0 Buried piping 1,100 lnft $225 $247,500 Piping to heat exchanger 1 ls $2,500.00 $2,500 Heat exchanger and primary pump 1 ls $7,000.00 $7,000 Primary pump and piping to building connection 1 ls $4,000.00 $4,000 Library to Admin $0 Buried piping 160 lnft $175 $28,000 Increase boiler room size 50 sqft $100 $5,000 Piping to heat exchanger 1 ls $2,000.00 $2,000 Heat exchanger and primary pump 1 ls $6,000.00 $6,000 Primary pump and piping to building connection 1 ls $3,500.00 $3,500 Controls $0 Admin Bldg 1 ea $20,000.00 $20,000 Library 1 ea $20,000.00 $20,000 School//Pool 1 ea $25,000.00 $25,000 Vocational Education 1 ea $20,000.00 $20,000 Contingencies Estimating contingency 20% $292,490 Haines locality factor 30% $526,482 Overhead & profit 30% $526,482 Design fees 10% $280,790 Project management 10% $308,869 Total Construction Costs $3,398,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Year 0 0 0 0 0 0 0 0 Page 6 Alaska Energy Engineering LLC Life Cycle Cost Analysis 25200 Amalga Harbor Road Tel/Fax: 907.789.1226 Juneau, Alaska 99801 alaskaenergy@gci.net Haines Borough District Wood Heating System Pellet Plant and Fuel Oil Boilers June 7, 2012 Annual Costs Qty Unit Base Cost Present Value Wood Boiler Maintenance Daily: 10 minutes per day 1 - 20 61 hrs $40.00 $37,268 Weekly: 30 minutes per week, ea 1 - 20 52 hrs $40.00 $31,856 Monthly: 2 hours per month, ea 1 - 20 48 hrs $110.00 $80,866 Annual: 8 hours, 2x per year, ea 1 - 20 32 hrs $110.00 $53,911 Parts Allowance 1 - 20 2 LS $250.00 $7,658 Fuel Oil Boiler Maintenance Monthly: 1 hours per month 1 - 20 60 hrs $40.00 $36,757 Annual: 8 hours, 1x per year 1 - 20 40 hrs $40.00 $24,505 Parts Allowance 1 - 20 5 LS $150.00 $11,487 Pump Maintenance 1 - 20 32 hrs $40.00 $19,604 Total Annual Costs $304,000 Energy Costs Qty Unit Base Cost Present Value Fuel Oil 1 - 20 2,458 gal $4.50 $253,625 Pellets 1 - 20 416.0 tons $373.00 $2,639,847 Electricity 1 - 20 52,550 kWh $0.25 $211,042 Total Energy Costs $3,105,000 $6,807,000 Years Present Worth Years Page 7 Appendix C Equipment Specifications Haines Borough Wood Heating Study 1 Equipment Specifications WOOD PELLET BOILERS – SMALL CAPACITY PART 1 - PRODUCTS 1.1 DESCRIPTION A. Boiler: ASME certified, hydronic pellet fired wood boiler packaged assembly in container with automatic fuel supply, stainless steel combustion chamber with three way ash removal, automatic cleaning system, integrated ash box with automatic ash compression system, and fully automated digital controls. Chimney of high grade stainless steel with double wall construction. Assembly pre-installed. B. Pellet Store Room: Dust proof, sloping floor with augers and self-feeding vacuum pellet distribution. C. Container: Durable timber construction with triple laminated sections, 1-hour rated, totally enclosed with separate boiler and pellet storage compartment. Double access doors with keyed entry lever entry. with heavy duty solid brass and ball bearing hinge Floor and ceiling of boiler room with aluminum diamond plate surface. Roof completely wrapped with ice and water shield. Roof to be galvanized steel material capable of minimum 70 lbs per sq. ft. snow load. Pellet access doors to be insulated aluminum, keyed, and minimum of 3 ft x 3 ft. size. D. Foundation: Reinforced concrete pad 6 inches thick. E. Installation: Trained and licensed by boiler manufacturer. 1.2 OUTPUT CAPACITIES A. Admin Building: 62 MBH B. Voc-Ed Building: 88 MBH C. Library: 148,000 MBH 1.3 FUEL DELIVERY (INTERNAL TO CONTAINER) A. Admin Building and Voc-Ed Building: Auger delivery. B. Library: Vacuum suction with flexible tubing 1.4 FUEL STORAGE CAPACITIES A. Admin Building: 3.5 tons. B. Voc-Ed Building: 5.0 tons C. Library: 9.5 tons. 1.5 HEATING WATER CONNECTIONS A. 1-1/2 inch supply and return. 1.6 ELECTRICAL REQUIREMENTS A. 208 volt, 6 amps. Minimum 60 amp circuit. Haines Borough Wood Heating Study 2 Equipment Specifications 1.7 MONITORING A. Remote monitoring via web based interface. B. User can remotely see key boiler functions and error messages. 1.8 WARRANTY A. Warranty is 5 years on the ASME Stamped Boiler Vessel and 2 years on all other parts and pieces of the boiler. B. Warranty does not include labor and but may be extended via the local dealer. 1.9 CERTIFIED DEALERS: A. The Plumbing and Heating Company in Juneau 907-789-3332 B. Schmolck Mechanical Contractors - Ketchikan Alaska - 907-225-6648 1.10 STARTUP, COMMISSIONING, AND TRAINING A. Start-up, commissioning and training provided by Certified Dealer. 1.11 REFERENCES: A. Ken Coville - Superintendent School Admin. District 74, Anson, ME - (207) 635-2727 Ext 1 B. City of Gardiner Maine - Chuck Applebee - (207) 582-4408 C. Town of Marshfield, Vermont - 802-426-3305 1.12 FINANCING A. Financing is not available directly from the company. End of Section Haines Borough Wood Heating Study 3 Equipment Specifications WOOD BOILERS - MEDIUM CAPACITY PART 1 - PRODUCTS 1.1 DESCRIPTION A. Boiler: ASME certified, hydronic pellet fired wood boiler packaged assembly consisting of stainless steel combustion chamber, heat exchanger, control panel and fuel storage and delivery system. B. Components: Additional components include Intermediate fuel storage bin, agitator to prevent fuel bridging, emergency extinguishing system, ignition blower, primary, secondary and tertiary blower motors all with VFD’s, burner ring for primary gasification zone, rotating ash grate, secondary and tertiary introduction rings, ash collection bin, double insulated heat exchanger, rotating tabulators, and cyclone precipitator with industrial utility type exhaust fan controlled by VFD. Chimney of high grade stainless steel with double wall construction. Assembly pre-installed. C. Fuel Delivery System: Bin conveying auger and auger channel with back burn preventing flap valve at the boiler. D. Fuel Storage: 20 ton silo with hopper bottom and top loading port. OSHA approved ladder access. Silo mounted on reinforced concrete pad 6 inches thick. E. Installation: Trained and licensed by boiler manufacturer. 1.2 OUTPUT CAPACITIES A. High School/Pool: Two boilers at 1,300 MBH B. District Plant: Two boilers at 1,450 MBH 1.3 HEATING WATER CONNECTIONS A. Each boiler with 4-inch supply and return. 1.4 ELECTRICAL REQUIREMENTS A. Each Boiler @ 208 volt, 30 amps. Minimum 60 amp circuit. 1.5 DIMENSIONS A. High School/Pool: Each Boiler at 8’-10” long, 9’-3” long, 6’-6” high. B. District Plant: Each Boiler at 9’-3” long, 9’-3” long, 6’-6” high. 1.6 MONITORING A. Remote monitoring via web based interface. B. User can remotely see key boiler functions and error messages. The boiler output temperature can be remotely adjusted and the boiler can be turned on and off. 1.7 WARRANTY A. 1 Year standard warranty with extended warranty available. Haines Borough Wood Heating Study 4 Equipment Specifications 1.8 CERTIFIED DEALERS A. None in Alaska. Installation and start-up typically done by ACT Bioenergy. 1.9 REFERENCES A. David St. Onge, Senior Facilities Technician The Wild Center, Natural History Museum of the Adirondacks 45 Museum Drive Tupper Lake, NY 12986-9712 518-359-7800, ext. 118 dstonge@wildcenter.org 1.7 MMBtu (pellets) B. Bill Hollywood - Onsite Maintenance of Federal Building Total System Service 648 Mission Street Room 108 Ketchikan, Alaska 99901 (907) 220-9229 1.0 MMBtu (pellets) C. John Culpepper, Director of Facilities North Country School Lake Placid, NY (518) 523-9329 1.4 MMBtu (chip/pellet) 1.10 STARTUP, TRAINING, COMMISISONING A. Boiler pricing includes 3 days of on-site startup, commissioning support and training by an ACT Bioenergy technician. 1.11 FINANCING A. Financing not available directly from the company. The Company does work with companies who do provide leasing for public and private sector customers. End of Section