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Nenana Final Appendix 7-24 Part 1
APPENDIX A Preliminary Estimates of Probable Cost Preliminary Estimates of Probable Cost Biomass Heating Options Nenana, AK Chip Option A.1 - School Integration Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $60,000 School Integration $50,000 Subtotal:$1,035,000 30% Remote Factor $310,500 Subtotal:$1,345,500 Design Fees, Building Permit, Miscellaneous Expenses 15%: $201,825 Subtotal:$1,547,325 15% Contingency:$232,099 Total Project Costs 1,779,424$ Chip Option A.2 - S + SA +SW Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $115,000 School Integration $50,000 Warehouse and Administration Integration $51,000 Subtotal:$1,141,000 30% Remote Factor $342,300 Subtotal:$1,483,300 Design Fees, Building Permit, Miscellaneous Expenses 15%: $222,495 Subtotal:$1,705,795 15% Contingency:$255,869 Total Project Costs 1,961,664$ Preliminary Estimates of Probable Cost Biomass Heating Options Nenana, AK Chip Option A.3 - S + SA + SW + DC Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $180,000 School Integration $50,000 Warehouse and Administration Integration $51,000 Day Care Integration $44,000 Subtotal:$1,250,000 30% Remote Factor $375,000 Subtotal:$1,625,000 Design Fees, Building Permit, Miscellaneous Expenses 15%: $243,750 Subtotal:$1,868,750 15% Contingency:$280,313 Total Project Costs 2,149,063$ Chip Option A.4 - S + SA + SW + DC + WP Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $390,000 School Integration $50,000 Warehouse and Administration Integration $51,000 Day Care Integration $44,000 Water Plant Integration $46,500 Subtotal:$1,506,500 30% Remote Factor $451,950 Subtotal:$1,958,450 Design Fees, Building Permit, Miscellaneous Expenses 15%: $293,768 Subtotal:$2,252,218 15% Contingency:$337,833 Total Project Costs 2,590,050$ Preliminary Estimates of Probable Cost Biomass Heating Options Nenana, AK Chip Option A.5 - S + SA + SW + DC + WP + FH Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $400,000 School Integration $50,000 Warehouse and Administration Integration $51,000 Day Care Integration $44,000 Water Plant Integration $46,500 Fire Hall Integration $43,000 Subtotal:$1,559,500 30% Remote Factor $467,850 Subtotal:$2,027,350 Design Fees, Building Permit, Miscellaneous Expenses 15%: $304,103 Subtotal:$2,331,453 15% Contingency:$349,718 Total Project Costs 2,681,170$ Chip Option A.6 - S + SA +SW + SLC Chip Storage/ Boiler Building:$270,000 Wood Heating & Wood Handling System: $325,000 Stack/Air Pollution Control Device:$180,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $590,000 School Integration $50,000 Warehouse and Administration Integration $51,000 SLC Integration $47,500 Subtotal:$1,663,500 30% Remote Factor $499,050 Subtotal:$2,162,550 Design Fees, Building Permit, Miscellaneous Expenses 15%: $324,383 Subtotal:$2,486,933 15% Contingency:$373,040 Total Project Costs 2,859,972$ Preliminary Estimates of Probable Cost Biomass Heating Options Nenana, AK Pellet Option B.1 - School Integration Boiler Building and Silo:$180,000 Wood Heating & Wood Handling System: $265,000 Stack/Air Pollution Control Device:$50,000 Mechanical/Electrical within Boiler Building: $150,000 Underground Piping $60,000 School Integration $50,000 Subtotal:$755,000 30% Remote Factor $226,500 Subtotal:$981,500 Design Fees, Building Permit, Miscellaneous Expenses 15%: $147,225 Subtotal:$1,128,725 15% Contingency:$169,309 Total Project Costs 1,298,034$ Cord Wood Option C.1 - Meda Lord Senior Center Biomass Boiler Building:$97,500 Wood Heating and Cord Wood Storage $16,000 Stack:$2,200 Mechanical/Electrical within Boiler Building: $20,200 Underground Piping $12,000 MLSC Integration $14,500 Subtotal:$162,400 30% Remote Factor $48,720 Subtotal:$211,120 Design Fees, Building Permit, Miscellaneous Expenses 15%: $31,668 Subtotal:$242,788 15% Contingency:$36,418 Total Project Costs 279,206$ APPENDIX B Cash Flow Analysis & Economic Sensitivity Analysis Nenana SchoolOption A.1Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Admin Warehouse Daycare TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:34,00034,000Annual Heating Costs:$122,400 $0 $0 $0 $122,400ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):4,573,000,000 0 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):3,658,400,000 0 0 0 3,658,400,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.440Tons of wood fuel to supplant net equivalent of 85% annual heating load.37425 ton chip van loads to supplant net equivalent of 85% annual heating load.15 Project Capital Cost-$1,780,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 40000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$1,780,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 30.1 years Net Benefit B/C Ratio$2,832,089 $1,052,089 1.59$1,616,943 -$163,0570.91Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost18Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 34000 gal $122,400 $128,520 $134,946 $141,693 $148,778 $156,217 $164,028 $172,229 $180,841 $189,883 $199,377 $209,346 $219,813 $230,803 $242,344 $309,299 $394,752 $503,815Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 374 tons $28,032 $28,873 $29,739 $30,631 $31,550$32,496 $33,471 $34,475 $35,510 $36,575 $37,672 $38,802 $39,966 $41,165 $42,400 $49,154 $56,982 $66,058Small load existing fuel$3.60 15% 5100 gal $18,360 $19,278 $20,242 $21,254 $22,317 $23,433 $24,604 $25,834 $27,126 $28,482 $29,907 $31,402 $32,972 $34,621 $36,352 $46,395 $59,213 $75,572Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$11,200 $11,536 $11,882 $12,239 $12,606 $12,984 $13,373 $13,775 $14,188 $14,613 $15,052 $15,503 $15,969 $16,448 $16,941 $19,639 $22,767 $26,394Annual Operating Cost Savings$59,208$63,121$69,754$74,174$78,842$83,771$88,975$94,469$100,268$106,388$112,845$119,659$126,848$134,430$142,428$189,449$250,643$330,108Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow59,208 63,121 69,754 74,174 78,842 83,771 88,975 94,469 100,268 106,388 112,845 119,659 126,848 134,430 142,428 189,449 250,643 330,108Accumulated Cash Flow59,208 122,330 192,084 266,258 345,100 428,871 517,846 612,315 712,583 818,970 931,816 1,051,475 1,178,323 1,312,753 1,455,181 2,303,414 3,427,827 4,911,172Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana School + Admin + Warehouse Option A.2Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Admin Warehouse Daycare TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:34,000 1,600 4,20039,800Annual Heating Costs:$122,400 $5,760 $15,120 $0 $143,280ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):4,573,000,000 215,200,000 564,900,000 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):3,658,400,000 172,160,000 451,920,000 0 4,282,480,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.515Tons of wood fuel to supplant net equivalent of 85% annual heating load.43825 ton chip van loads to supplant net equivalent of 85% annual heating load.18 Project Capital Cost-$1,960,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 40000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$1,960,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 27.2 years Net Benefit B/C Ratio$3,385,501 $1,425,501 1.73$1,940,341 -$19,6590.99Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost17Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 34000 gal $122,400 $128,520 $134,946 $141,693 $148,778 $156,217 $164,028 $172,229 $180,841 $189,883 $199,377 $209,346 $219,813 $230,803 $242,344 $309,299 $394,752 $503,815Displaced heating costs $3.60 1600 gal $5,760 $6,048 $6,350 $6,668 $7,001 $7,351 $7,719 $8,105 $8,510 $8,936 $9,382 $9,852 $10,344 $10,861 $11,404 $14,555 $18,577 $23,709Displaced heating costs $3.60 4200 gal $15,120 $15,876 $16,670 $17,503 $18,378 $19,297 $20,262 $21,275 $22,339 $23,456 $24,629 $25,860 $27,153 $28,511 $29,937 $38,207 $48,764 $62,236Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 438 tons $32,813 $33,798 $34,812 $35,856 $36,932$38,040 $39,181 $40,356 $41,567 $42,814 $44,099 $45,422 $46,784 $48,188 $49,633 $57,539 $66,703 $77,327Small load existing fuel$3.60 15% 5100 gal $18,360 $19,278 $20,242 $21,254 $22,317 $23,433 $24,604 $25,834 $27,126 $28,482 $29,907 $31,402 $32,972 $34,621 $36,352 $46,395 $59,213 $75,572Small load existing fuel$3.60 15% 240 gal $864 $907 $953 $1,000 $1,050 $1,103 $1,158 $1,216 $1,277 $1,340 $1,407 $1,478 $1,552 $1,629 $1,711 $2,183 $2,786 $3,556Small load existing fuel$3.60 15% 630 gal $2,268 $2,381 $2,500 $2,625 $2,757 $2,895 $3,039 $3,191 $3,351 $3,518 $3,694 $3,879 $4,073 $4,277 $4,490 $5,731 $7,315 $9,335Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$11,200 $11,536 $11,882 $12,239 $12,606 $12,984 $13,373 $13,775 $14,188 $14,613 $15,052 $15,503 $15,969 $16,448 $16,941 $19,639 $22,767 $26,394Annual Operating Cost Savings$72,175$76,832$84,248$89,494$95,033$100,879$107,049$113,561$120,432$127,681$135,329$143,395$151,903$160,875$170,335$225,913$298,161$391,893Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow72,175 76,832 84,248 89,494 95,033 100,879 107,049 113,561120,432 127,681 135,329 143,395 151,903 160,875 170,335 225,913 298,161 391,893Accumulated Cash Flow72,175 149,006 233,254 322,748 417,781 518,660 625,710 739,271 859,703 987,384 1,122,713 1,266,108 1,418,010 1,578,885 1,749,220 2,761,778 4,100,544 5,862,829Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana School Buildings + Daycare Option A.3Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Admin Warehouse Daycare TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:34,000 1,600 4,200 4,550 44,350Annual Heating Costs:$122,400 $5,760 $15,120 $16,380 $159,660ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):4,573,000,000 215,200,000 564,900,000 611,975,000Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):3,658,400,000 172,160,000 451,920,000 489,580,000 4,772,060,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.574Tons of wood fuel to supplant net equivalent of 85% annual heating load.48825 ton chip van loads to supplant net equivalent of 85% annual heating load.20 Project Capital Cost-$2,150,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 43000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$2,150,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 26.4 years Net Benefit B/C Ratio$3,795,177 $1,645,177 1.77$2,177,730 $27,7301.01Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost16Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 34000 gal $122,400 $128,520 $134,946 $141,693 $148,778 $156,217 $164,028 $172,229 $180,841 $189,883 $199,377 $209,346 $219,813 $230,803 $242,344 $309,299 $394,752 $503,815Displaced heating costs $3.60 1600 gal $5,760 $6,048 $6,350 $6,668 $7,001 $7,351 $7,719 $8,105 $8,510 $8,936 $9,382 $9,852 $10,344 $10,861 $11,404 $14,555 $18,577 $23,709Displaced heating costs $3.60 4200 gal $15,120 $15,876 $16,670 $17,503 $18,378 $19,297 $20,262 $21,275 $22,339 $23,456 $24,629 $25,860 $27,153 $28,511 $29,937 $38,207 $48,764 $62,236Displaced heating costs $3.60 4550 gal $16,380 $17,199 $18,059 $18,962 $19,910 $20,905 $21,951 $23,048 $24,201 $25,411 $26,681 $28,015 $29,416 $30,887 $32,431 $41,391 $52,827 $67,422Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 488 tons $36,565 $37,662 $38,792 $39,955 $41,154$42,389 $43,660 $44,970 $46,319 $47,709 $49,140 $50,614 $52,133 $53,697 $55,307 $64,117 $74,329 $86,167Small load existing fuel$3.60 15% 5100 gal $18,360 $19,278 $20,242 $21,254 $22,317 $23,433 $24,604 $25,834 $27,126 $28,482 $29,907 $31,402 $32,972 $34,621 $36,352 $46,395 $59,213 $75,572Small load existing fuel$3.60 15% 240 gal $864 $907 $953 $1,000 $1,050 $1,103 $1,158 $1,216 $1,277 $1,340 $1,407 $1,478 $1,552 $1,629 $1,711 $2,183 $2,786 $3,556Small load existing fuel$3.60 15% 630 gal $2,268 $2,381 $2,500 $2,625 $2,757 $2,895 $3,039 $3,191 $3,351 $3,518 $3,694 $3,879 $4,073 $4,277 $4,490 $5,731 $7,315 $9,335Small load existing fuel$3.60 15% 683 gal $2,457 $2,580 $2,709 $2,844 $2,986 $3,136 $3,293 $3,457 $3,630 $3,812 $4,002 $4,202 $4,412 $4,633 $4,865 $6,209 $7,924 $10,113Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$12,040 $12,401 $12,773 $13,156 $13,551 $13,958 $14,376 $14,808 $15,252 $15,709 $16,181 $16,666 $17,166 $17,681 $18,212 $21,112 $24,475 $28,373Annual Operating Cost Savings$81,506$86,722$94,727$100,595$106,789$113,326$120,225$127,505$135,187$143,290$151,837$160,853$170,360$180,386$190,957$253,044$333,731$438,382Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow81,506 86,722 94,727 100,595 106,789 113,326 120,225 127,505 135,187 143,290 151,837 160,853 170,360 180,386 190,957253,044 333,731 438,382Accumulated Cash Flow81,506 168,228 262,955 363,550 470,339 583,665 703,890 831,396 966,582 1,109,872 1,261,710 1,422,562 1,592,923 1,773,309 1,964,266 3,098,786 4,597,653 6,569,425Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana School Buildings + Daycare + Water Plant Option A.4Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Bldgs Daycare Water Plant Fire Dept TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:39,800 4,550 10,70055,050Annual Heating Costs:$143,280 $16,380 $38,520 $0 $198,180ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):5,353,100,000 611,975,000 1,439,150,000 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):4,282,480,000 489,580,000 1,151,320,000 0 5,923,380,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.712Tons of wood fuel to supplant net equivalent of 85% annual heating load.60525 ton chip van loads to supplant net equivalent of 85% annual heating load.24 Project Capital Cost-$2,590,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 50000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$2,590,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 26.1 years Net Benefit B/C Ratio$4,638,894 $2,048,894 1.79$2,656,188 $66,1881.03Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost16Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 39800 gal $143,280 $150,444 $157,966 $165,865 $174,158 $182,866 $192,009 $201,609 $211,690 $222,274 $233,388 $245,057 $257,310 $270,176 $283,685 $362,061 $462,092 $589,760Displaced heating costs $3.60 4550 gal $16,380 $17,199 $18,059 $18,962 $19,910 $20,905 $21,951 $23,048 $24,201 $25,411 $26,681 $28,015 $29,416 $30,887 $32,431 $41,391 $52,827 $67,422Displaced heating costs $3.60 10700 gal $38,520 $40,446 $42,468 $44,592 $46,821 $49,162 $51,620 $54,202 $56,912 $59,757 $62,745 $65,882 $69,176 $72,635 $76,267 $97,338 $124,231 $158,554Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 660 tons $49,511 $50,997 $52,527 $54,103 $55,726$57,397 $59,119 $60,893 $62,720 $64,601 $66,539 $68,535 $70,592 $72,709 $74,891 $86,819 $100,647 $116,677Small load existing fuel$3.60 15% 5970 gal $21,492 $22,567 $23,695 $24,880 $26,124 $27,430 $28,801 $30,241 $31,753 $33,341 $35,008 $36,759 $38,597 $40,526 $42,553 $54,309 $69,314 $88,464Small load existing fuel$3.60 15% 683 gal $2,457 $2,580 $2,709 $2,844 $2,986 $3,136 $3,293 $3,457 $3,630 $3,812 $4,002 $4,202 $4,412 $4,633 $4,865 $6,209 $7,924 $10,113Small load existing fuel$3.60 15% 1605 gal $5,778 $6,067 $6,370 $6,689 $7,023 $7,374$7,743 $8,130 $8,537 $8,964 $9,412 $9,882 $10,376 $10,895 $11,440 $14,601 $18,635 $23,783Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$14,000 $14,420 $14,853 $15,298 $15,757 $16,230 $16,717 $17,218 $17,735 $18,267 $18,815 $19,379 $19,961 $20,559 $21,176 $24,549 $28,459 $32,992Annual Operating Cost Savings$99,342$105,747$115,011$122,209$129,809$137,833$146,303$155,243$164,678$174,634$185,137$196,218$207,907$220,235$233,236$309,643$409,025$538,024Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow99,342 105,747 115,011 122,209 129,809 137,833 146,303 155,243 164,678 174,634 185,137 196,218 207,907 220,235 233,236 309,643 409,025 538,024Accumulated Cash Flow99,342 205,088 320,099 442,308 572,117 709,950 856,254 1,011,497 1,176,175 1,350,809 1,535,946 1,732,164 1,940,0712,160,306 2,393,542 3,780,882 5,616,846 8,035,572Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana School Buildings + Daycare + Water Plant + Fire Dept. Option A.5Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Bldgs Daycare Water Plant Fire Dept TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:39,800 4,550 10,700 3,950 59,000Annual Heating Costs:$143,280 $16,380 $38,520 $14,220 $212,400ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):5,353,100,000 611,975,000 1,439,150,000 531,275,000Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):4,282,480,000 489,580,000 1,151,320,000 425,020,000 6,348,400,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.763Tons of wood fuel to supplant net equivalent of 85% annual heating load.64925 ton chip van loads to supplant net equivalent of 85% annual heating load.26 Project Capital Cost-$2,680,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 55000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$2,680,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 25.1 years Net Benefit B/C Ratio$4,975,009 $2,295,009 1.86$2,849,249 $169,2491.06Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost16Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 39800 gal $143,280 $150,444 $157,966 $165,865 $174,158 $182,866 $192,009 $201,609 $211,690 $222,274 $233,388 $245,057 $257,310 $270,176 $283,685 $362,061 $462,092 $589,760Displaced heating costs $3.60 4550 gal $16,380 $17,199 $18,059 $18,962 $19,910 $20,905 $21,951 $23,048 $24,201 $25,411 $26,681 $28,015 $29,416 $30,887 $32,431 $41,391 $52,827 $67,422Displaced heating costs $3.60 10700 gal $38,520 $40,446 $42,468 $44,592 $46,821 $49,162 $51,620 $54,202 $56,912 $59,757 $62,745 $65,882 $69,176 $72,635 $76,267 $97,338 $124,231 $158,554Displaced heating costs $3.60 3950 gal $14,220 $14,931 $15,678 $16,461 $17,284 $18,149 $19,056 $20,009 $21,009 $22,060 $23,163 $24,321 $25,537 $26,814 $28,155 $35,933 $45,861 $58,531Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 704 tons $52,768 $54,351 $55,982 $57,661 $59,391$61,173 $63,008 $64,898 $66,845 $68,850 $70,916 $73,043 $75,235 $77,492 $79,816 $92,529 $107,267 $124,351Small load existing fuel$3.60 15% 5970 gal $21,492 $22,567 $23,695 $24,880 $26,124 $27,430 $28,801 $30,241 $31,753 $33,341 $35,008 $36,759 $38,597 $40,526 $42,553 $54,309 $69,314 $88,464Small load existing fuel$3.60 15% 683 gal $2,457 $2,580 $2,709 $2,844 $2,986 $3,136 $3,293 $3,457 $3,630 $3,812 $4,002 $4,202 $4,412 $4,633 $4,865 $6,209 $7,924 $10,113Small load existing fuel$3.60 15% 1605 gal $5,778 $6,067 $6,370 $6,689 $7,023 $7,374$7,743 $8,130 $8,537 $8,964 $9,412 $9,882 $10,376 $10,895 $11,440 $14,601 $18,635 $23,783Small load existing fuel$3.60 15% 593 gal $2,133 $2,240 $2,352 $2,469 $2,593 $2,722 $2,858 $3,001 $3,151 $3,309 $3,474 $3,648 $3,831 $4,022 $4,223 $5,390 $6,879 $8,780Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$15,400 $15,862 $16,338 $16,828 $17,333 $17,853 $18,388 $18,940 $19,508 $20,094 $20,696 $21,317 $21,957 $22,615 $23,294 $27,004 $31,305 $36,291Annual Operating Cost Savings$106,772$113,642$123,397$131,113$139,260$147,861$156,941$166,524$176,637$187,309$198,568$210,445$222,974$236,188$250,124$332,021$438,541$576,802Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow106,772 113,642 123,397 131,113 139,260 147,861 156,941 166,524 176,637 187,309 198,568 210,445 222,974 236,188 250,124 332,021 438,541 576,802Accumulated Cash Flow106,772 220,414 343,810 474,923 614,183 762,044 918,985 1,085,509 1,262,146 1,449,455 1,648,023 1,858,468 2,081,442 2,317,630 2,567,755 4,055,426 6,023,947 8,617,079Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana School + Admin+ Warehouse + Student Living Center Option A.6Nenana, AlaskaWood Chip Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchool Admin Warehouse SLC TotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:34,000 1,600 4,200 28,800 68,600Annual Heating Costs:$122,400 $5,760 $15,120 $103,680 $246,960ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):4,573,000,000 215,200,000 564,900,000 3,873,600,000Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):3,658,400,000 172,160,000 451,920,000 3,098,880,000 7,381,360,000WOOD FUEL COSTWood Chips$/ton: $75.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 30% MC 6400 Tons of wood fuel to supplant net equivalent of 100% annual heating load.887Tons of wood fuel to supplant net equivalent of 85% annual heating load.75425 ton chip van loads to supplant net equivalent of 85% annual heating load.30 Project Capital Cost-$2,860,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 90000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 4.0 40 160 $20.00 $3,200Amount of Grants$2,860,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 3.0 40 120 $20.00 $2,400Interest Rate5.00%Term10Annual Finance Cost (years)$0 25.4 years Net Benefit B/C Ratio$5,441,730 $2,581,730 1.90$3,085,014 $225,0141.08Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost16Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 34000 gal $122,400 $128,520 $134,946 $141,693 $148,778 $156,217 $164,028 $172,229 $180,841 $189,883 $199,377 $209,346 $219,813 $230,803 $242,344 $309,299 $394,752 $503,815Displaced heating costs $3.60 1600 gal $5,760 $6,048 $6,350 $6,668 $7,001 $7,351 $7,719 $8,105 $8,510 $8,936 $9,382 $9,852 $10,344 $10,861 $11,404 $14,555 $18,577 $23,709Displaced heating costs $3.60 4200 gal $15,120 $15,876 $16,670 $17,503 $18,378 $19,297 $20,262 $21,275 $22,339 $23,456 $24,629 $25,860 $27,153 $28,511 $29,937 $38,207 $48,764 $62,236Displaced heating costs $3.60 28800 gal $103,680 $108,864 $114,307 $120,023 $126,024 $132,325 $138,941 $145,888 $153,183 $160,842 $168,884 $177,328 $186,194 $195,504 $205,279 $261,994 $334,378 $426,761Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$75.00 85% 884 tons $66,308 $68,297 $70,346 $72,456 $74,630$76,869 $79,175 $81,550 $83,997 $86,517 $89,112 $91,786 $94,539 $97,375 $100,297 $116,271 $134,790 $156,259Small load existing fuel$3.60 15% 5100 gal $18,360 $19,278 $20,242 $21,254 $22,317 $23,433 $24,604 $25,834 $27,126 $28,482 $29,907 $31,402 $32,972 $34,621 $36,352 $46,395 $59,213 $75,572Small load existing fuel$3.60 15% 240 gal $864 $907 $953 $1,000 $1,050 $1,103 $1,158 $1,216 $1,277 $1,340 $1,407 $1,478 $1,552 $1,629 $1,711 $2,183 $2,786 $3,556Small load existing fuel$3.60 15% 630 gal $2,268 $2,381 $2,500 $2,625 $2,757 $2,895 $3,039 $3,191 $3,351 $3,518 $3,694 $3,879 $4,073 $4,277 $4,490 $5,731 $7,315 $9,335Small load existing fuel$3.60 15% 4320 gal $15,552 $16,330 $17,146 $18,003 $18,904 $19,849 $20,841 $21,883 $22,977 $24,126 $25,333 $26,599 $27,929 $29,326 $30,792 $39,299 $50,157 $64,014Additional Operation and Maintenance Costs$3,200 $3,264 $3,329 $3,396 $3,464 $3,533 $3,604 $3,676 $3,749 $3,824 $3,901 $3,979 $4,058 $4,140 $4,222 $4,662 $5,147$5,683Additional Operation and Maintenance Costs First 2 years$2,400 $2,448Additional Electrical Cost $0.280$25,200 $25,956 $26,735 $27,537 $28,363 $29,214 $30,090 $30,993 $31,923 $32,880 $33,867 $34,883 $35,929 $37,007 $38,117 $44,188 $51,226 $59,385Annual Operating Cost Savings$112,808$120,447$131,022$139,615$148,697$158,296$168,439$179,154$190,473$202,427$215,051$228,380$242,452$257,306$272,983$365,326$485,836$642,716Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow112,808 120,447 131,022 139,615 148,697 158,296 168,439 179,154 190,473 202,427 215,051 228,380 242,452 257,306 272,983 365,326 485,836 642,716Accumulated Cash Flow112,808 233,255 364,277 503,892 652,590 810,886 979,324 1,158,478 1,348,951 1,551,378 1,766,430 1,994,810 2,237,262 2,494,568 2,767,551 4,399,622 6,575,026 9,458,385Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Nenana SchoolOption B.1Nenana, AlaskaWood Pellet Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSSchoolTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:34,00034,000Annual Heating Costs:$122,400 $0 $0 $0 $122,400ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):4,573,000,000 0 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):3,658,400,000 0 0 0 3,658,400,000WOOD FUEL COSTWood Pellets$/ton: $325.00Assumed efficiency of wood heating system (%): 70% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 7% MC 8200 Tons of wood fuel to supplant net equivalent of 100% annual heating load.319Tons of wood fuel to supplant net equivalent of 85% annual heating load.27125 ton chip van loads to supplant net equivalent of 85% annual heating load.11 Project Capital Cost-$1,300,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 20000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 2.0 40 80 $20.00 $1,600Amount of Grants$1,300,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 180.4 years Net Benefit B/C Ratio$1,289,692 -$10,308 0.99$590,490 -$709,5100.45Year Accumulated Cash Flow > 0#N/AYear Accumulated Cash Flow > Project Capital Cost24Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 34000 gal $122,400 $128,520 $134,946 $141,693 $148,778 $156,217 $164,028 $172,229 $180,841 $189,883 $199,377 $209,346 $219,813 $230,803 $242,344 $309,299 $394,752 $503,815Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$325.00 85% 271 tons $88,034 $90,675 $93,396 $96,197 $99,083 $102,056 $105,117 $108,271 $111,519 $114,865 $118,311 $121,860 $125,516 $129,281 $133,160 $154,369 $178,955 $207,458Small load existing fuel$3.60 15% 5100 gal $18,360 $19,278 $20,242 $21,254 $22,317 $23,433 $24,604 $25,834 $27,126 $28,482 $29,907 $31,402 $32,972 $34,621 $36,352 $46,395 $59,213 $75,572Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$1,600 $1,632 $1,665 $1,698 $1,732 $1,767 $1,802 $1,838 $1,875 $1,912 $1,950 $1,989 $2,029 $2,070 $2,111 $2,331 $2,573$2,841Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.280$5,600 $5,768 $5,941 $6,119 $6,303 $6,492 $6,687 $6,887 $7,094 $7,307 $7,526 $7,752 $7,984 $8,224 $8,471 $9,820 $11,384 $13,197Annual Operating Cost Savings$7,206$9,535$13,703$16,425$19,343$22,470$25,818$29,399$33,227$37,317$41,683$46,343$51,312$56,608$62,251$96,385$142,627$204,746Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow7,206 9,535 13,703 16,425 19,343 22,470 25,818 29,399 33,227 37,317 41,683 46,343 51,312 56,608 62,251 96,385 142,627 204,746Accumulated Cash Flow7,206 16,741 30,443 46,868 66,211 88,681 114,499 143,897 177,124 214,441 256,124 302,467 353,778 410,387 472,637 882,087 1,497,212 2,389,469Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Meda Lord Senior CenterOption C.1Nenana, AlaskaCord Wood Boiler Date: July 24, 2012 Analyst: CTA Architects Engineers - Nick Salmon & Nathan Ratz EXISTING CONDITIONSMLSCTotalExisting Fuel Type:Fuel Oil Fuel Oil Fuel Oil Fuel OilFuel Units:gal gal gal galCurrent Fuel Unit Cost:$3.60 $3.60 $3.60 $3.60 Estimated Average Annual Fuel Usage:6,5666,566Annual Heating Costs:$23,638 $0 $0 $0 $23,638ENERGY CONVERSION (to 1,000,000 Btu; or 1 dkt)Fuel Heating Value (Btu/unit of fuel):134500 134500 134500 134500Current Annual Fuel Volume (Btu):883,127,000 0 0 0Assumed efficiency of existing heating system (%):80% 80% 80% 80% Net Annual Energy Produced (Btu):706,501,600 0 0 0 706,501,600WOOD FUEL COSTCord Wood$/ton: $200.00Assumed efficiency of wood heating system (%): 65% PROJECTED WOOD FUEL USAGEEstimated Btu content of wood fuel (Btu/lb) - Assumed 20% MC, 6,700 Btu/lb x 28.4 lb/cf x 85 cf16,173,800 Cords of wood fuel to supplant net equivalent of 100% annual heating load.67Cords of wood fuel to supplant net equivalent of 85% annual heating load.5725 ton chip van loads to supplant net equivalent of 85% annual heating load.N/A Project Capital Cost-$280,000 Project Financing InformationPercent Financed0.0%Est. Pwr Use 3000 kWh Type Hr/Wk Wk/Yr Total Hr Wage/Hr TotalAmount Financed$0 Elec Rate $0.280 /kWh Biomass System 10.0 40 400 $20.00 $8,000Amount of Grants$280,000 Other 0.0 40 0 $20.00 $01st 2 Year Learning 2.0 40 80 $20.00 $1,600Interest Rate5.00%Term10Annual Finance Cost (years)$0 -158.0 years Net Benefit B/C Ratio$220,868 -$59,132 0.79$88,173 -$191,8270.31Year Accumulated Cash Flow > 05Year Accumulated Cash Flow > Project Capital Cost26Inflation FactorsO&M Inflation Rate2.0%Fossil Fuel Inflation Rate5.0%Wood Fuel Inflation Rate3.0%Electricity Inflation Rate3.0%Discount Rate for Net Present Value Calculation 3.0%Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30Existing Heating System Operating CostsDisplaced heating costs $3.60 6566 gal $23,638 $24,819 $26,060 $27,363 $28,732 $30,168 $31,677 $33,260 $34,924 $36,670 $38,503 $40,428 $42,450 $44,572 $46,801 $59,731 $76,234 $97,296Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Displaced heating costs $3.600 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site)$200.00 85% 57 cords $11,424 $11,767 $12,120 $12,484 $12,858 $13,244 $13,641 $14,051 $14,472 $14,906 $15,354 $15,814 $16,289 $16,777 $17,281 $20,033 $23,224 $26,923Small load existing fuel$3.60 15% 985 gal $3,546 $3,723 $3,909 $4,105 $4,310 $4,525 $4,751 $4,989 $5,239 $5,500 $5,775 $6,064 $6,367 $6,686 $7,020 $8,960 $11,435 $14,594Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Small load existing fuel$3.60 15% 0 gal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Additional Operation and Maintenance Costs$8,000 $8,160 $8,323 $8,490 $8,659 $8,833 $9,009 $9,189 $9,373 $9,561 $9,752 $9,947 $10,146 $10,349 $10,556 $11,654 $12,867 $14,207Additional Operation and Maintenance Costs First 2 years$1,600 $1,632Additional Electrical Cost $0.280$840 $865 $891 $918 $945 $974 $1,003 $1,033 $1,064 $1,096 $1,129 $1,163 $1,198 $1,234 $1,271 $1,473 $1,708 $1,980Annual Operating Cost Savings-$1,773-$1,328$817$1,368$1,959$2,592$3,271$3,998$4,775$5,606$6,493$7,440$8,450$9,527$10,674$17,611$27,000$39,592Financed Project Costs - Principal and Interest0000000000 Displaced System Replacement Costs (year one only)0Net Annual Cash Flow(1,773) (1,328)817 1,368 1,959 2,592 3,271 3,998 4,775 5,606 6,493 7,440 8,450 9,527 10,674 17,611 27,000 39,592Accumulated Cash Flow(1,773) (3,100) (2,284) (916)1,043 3,635 6,906 10,905 15,680 21,286 27,779 35,220 43,67053,196 63,870 137,198 252,302 423,622Additional Power UseAdditional MaintenanceSimple Payback: Total Project Cost/Year One Operating Cost Savings:Net Present Value (30 year analysis):Net Present Value (20 year analysis): Fuel Oil Fuel Oil Estimated Wood Simple Fuel Oil Wood Biomass Year 1 NPV NPV 20 Yr 30 YrLine Project Usage Unit Cost Power Use Fuel Cost Payback O&M & Elec Fuel Weekly Additional Operating 30 yr 20 yr B/C B/C ACF ACF YRNo. Cost Gal $/Gal. kwh $/cord ton yrs Inflation Inflation Inflation O&M Hrs O&M Savings at 3% at 3% Ratio Ratio YR 20 YR 30 ACF=PCAll Options - Base CasesA.1 $1,780,000 34,000 $3.60 40,000 $75 30.1 2.0% 5.0% 3.0% 4.0 $3,200 $59,208 $2,832,089 $1,616,943 0.91 1.59 $2,303,414 $4,911,172 18A.2 $1,960,000 39,800 $3.60 40,000 $75 27.2 2.0% 5.0% 3.0% 4.0 $3,200 $72,175 $3,385,501 $1,940,341 0.99 1.73 $2,761,778 $5,862,829 17A.3 $2,150,000 44,350 $3.60 43,000 $75 26.4 2.0% 5.0% 3.0% 4.0 $3,200 $81,506 $3,795,177 $2,177,730 1.01 1.77 $3,098,786 $6,569,425 16A.4 $2,590,000 55,050 $3.60 50,000 $75 26.1 2.0% 5.0% 3.0% 4.0 $3,200 $99,342 $4,638,894 $2,656,188 1.03 1.79 $3,780,882 $8,035,572 16A.5 $2,680,000 59,000 $3.60 55,000 $75 25.1 2.0% 5.0% 3.0% 4.0 $3,200 $106,772 $4,975,009 $2,849,249 1.06 1.86 $4,055,426 $8,617,079 16A.6 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 5.0% 3.0% 4.0 $3,200 $112,808 $5,441,730 $3,085,014 1.08 1.90 $4,399,622 $9,458,385 16B.1 $1,300,000 34,000 $3.60 20,000 $325 180.4 2.0% 5.0% 3.0%2.0 $1,600 $7,206 $1,289,692 $590,490 0.45 0.99 $882,087 $2,389,469 24C.1 $280,000 6,566 $3.60 3,000 $200 -158.0 2.0% 5.0% 3.0% 10.0 $8,000 -$1,773 $220,868 $88,173 0.31 0.79 $137,198 $423,622 261Option A.6 is the strongest economic case and will be used for further sensitivity analysis.23A.6 - Adjusting Fuel Oil Inflation Rate4 $2,680,000 59,000 $3.60 55,000 $75 25.1 2.0% 5.0% 3.0% 4.0 $3,200 $106,772 $4,975,009 $2,849,249 1.06 1.86 $4,055,426$8,617,079 165 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 6.0% 3.0% 4.0 $3,200 $112,808 $6,808,757 $3,589,605 1.26 2.38 $5,180,433$12,107,386 156 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 7.0% 3.0% 4.0 $3,200 $112,808 $8,459,179 $4,157,775 1.45 2.96 $6,064,159$15,340,638 147 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 8.0% 3.0% 4.0 $3,200 $112,808 $10,455,463 $4,797,897 1.68 3.66 $7,064,717 $19,291,766 138 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 9.0% 3.0% 4.0 $3,200 $112,808 $12,874,011 $5,519,433 1.93 4.50 $8,197,877 $24,124,941 129 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 10.0% 3.0% 4.0$3,200 $112,808 $15,808,228 $6,333,076 2.21 5.53 $9,481,488 $30,041,735 121011A.6 - Adjusting Fuel Oil Cost12 $2,860,000 68,600 $3.50 90,000 $75 26.7 2.0% 5.0% 3.0% 4.0$3,200 $106,977 $5,214,151 $2,948,258 1.03 1.82 $4,206,814 $9,070,980 1613 $2,860,000 68,600 $3.75 90,000 $75 23.5 2.0% 5.0% 3.0% 4.0$3,200 $121,555 $5,783,098 $3,290,148 1.15 2.02 $4,688,833 $10,039,492 1514 $2,860,000 68,600 $4.00 90,000 $75 21.0 2.0% 5.0% 3.0% 4.0$3,200 $136,132 $6,352,045 $3,632,039 1.27 2.22 $5,170,852 $11,008,005 1415 $2,860,000 68,600 $4.50 90,000 $75 17.3 2.0% 5.0% 3.0% 4.0$3,200 $165,287 $7,489,940 $4,315,821 1.51 2.62 $6,134,890 $12,945,029 1316 $2,860,000 68,600 $5.00 90,000 $75 14.7 2.0% 5.0% 3.0% 4.0$3,200 $194,442 $8,627,835 $4,999,603 1.75 3.02 $7,098,928 $14,882,054 111718A.6 - Adjusting Wood Fuel Cost19 $2,860,000 68,600 $3.60 90,000 $75 25.4 2.0% 5.0% 3.0% 4.0$3,200 $112,808 $5,441,730 $3,085,014 1.08 1.90 $4,399,622 $9,458,385 1620 $2,860,000 68,600 $3.60 90,000 $85 27.5 2.0% 5.0% 3.0% 4.0$3,200 $103,967 $5,184,223 $2,913,343 1.02 1.81 $4,162,059 $9,037,768 1621 $2,860,000 68,600 $3.60 90,000 $100 31.5 2.0% 5.0% 3.0% 4.0 $3,200 $90,705 $4,797,964 $2,655,837 0.93 1.68 $3,805,716 $8,406,843 1722 $2,860,000 68,600 $3.60 90,000 $110 34.9 2.0% 5.0% 3.0% 4.0 $3,200 $81,864 $4,540,457 $2,484,166 0.87 1.59 $3,568,153 $7,986,226 182324 NPV: Net Present ValueACF: Accumulated Cash FlowYR ACF=PC : Year Accumulated Cash Flow equals Project CostJuly 24, 2012Economic Sensitiviy AnalysisNenana Biomass Heating System APPENDIX C Site Plan NENANA SCHOOL CLUSTERMEDA LORD SENIOR CENTERLIVING CENTERMISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE-FEASIBILITY ASSESSMENTNENANA, ALASKANENANA OVERVIEWSSFNRH07/24/2012FEDCJ:NENANA800'400'200'0SCALE: 1:400NORTHREF.SITE PLAN SCHOOL1,250285'-0"200'-0"BOILER PLANTSCHOOL ADMIN.SCHOOL WAREHOUSENENANA NATIVECOUNCIL DAY CAREWATER PLANTFIREHALL2,500' TO S.L.C.400'200'100'0SCALE: 1:200MISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE FEASIBILITY ASSESSMENTNENANA, ALASKANENANA SCHOOL CLUSTERSSFNHR07/24/2012FEDCJ:NENANANORTHREF.LEGENDPIPE ROUTINGBOILER ROOMSITE PLAN STUDENT LIVINGCENTER2,500' TO BOILER PLANT100'500'25'0SCALE: 1:50MISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE-FEASIBILITY ASSESSMENTNENANA, ALASKASTUDENT LIVING CENTERSSFNHR07/24/2012FEDCJ:NENANANORTHREF.LEGENDPIPE ROUTINGBOILER ROOMSITE PLAN MEDA LORD SENIOR CENTERBOILER PLANT75'-0"35'-0"MISSOULA, MT(406)728-9522Fax (406)728-8287Date®BIOMASS PRE-FEASIBILITY ASSESSMENTNENANA, ALASKANENANA MEDA LORD SENIOR CENTERSSFNHR07/24/2012FEDCJ:NENANA100'50'25'0SCALE: 1:50NORTHREF.LEGENDPIPE ROUTINGBOILER ROOMSITE PLAN