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Home My WebLink About05 Kenny Lake Fuel Oil vs Pellets 9-10-2010KENNY LAKE SCHOOL FUEL OIL VS WOOD PELLETS ANALYSIS Date(Revision Date): September 10, 2010 EXISTING CONDITIONS Existing Fuel Type:Fuel Oil Current Annual Fuel Cost:$2.82 3-year Annual Average Fuel Usage:20,000 Annual Heating Costs:$56,400 ENERGY CONVERSION (to 1 mmbtu, or 1 dka) Current Annual Fuel Volume (btu):2,773,800,000 Assumed efficiency of existing heating system (%):80% Net Annual Fuel Usage (btu):2,219,040,000 WOOD FUEL COST Wood Pellets $/ton: $310.00 Assumed efficiency of wood heating system (%): 80% PROJECTED FUEL USAGE Assumed btu content of wood fuel 8400 Tons of wood fuel to create net equivalent of 100% annual heating load 165 Project Capital Cost $565,485 Project Financing Information Percent Financed 0%Est. Pwr Use 9000 kWh Amount Financed $0 Elec Rate $0.25 /kWh Amount of Grants $565,500 Interest Rate 3.00% Term 10 Annual Finance Cost (years) $0 53 years Inflation Factors O&M Inflation Rate 3.0% Current Fuel Oil Inflation Rate 12.6% Wood Fuel Inflation Rate 4.0% Year Year Year Year Cash flow Descriptions Unit Costs Heating Source Proportion Annual Heating Source Volumes Heating Units 1234 Existing Heating System Operating Costs Displaced heating costs $2.82 20,000 gal $56,400 $63,506 $71,508 $80,518 Displaced Operation and Maintenance Costs $0 $0 $0 $0 Biomass System Operating Costs Wood Fuel ($/ton, delivered to boiler site, btu/lb) (90% of total heat rqmnt)$310.00 90% 165 tons $46,065 $47,907 $49,824 $51,817 Small load existing fuel (10% of total heat rqmnt)$2.82 10% 20,000 gal $5,640 $6,351 $7,151 $8,052 Additional Operation and Maintenance Costs $1,000 $1,030 $1,061 $1,093 Additional Operation and Maintenance Costs First 2 years $1,000 $1,126 Additional Electrical Cost $0.25 $2,250 $2,534 $2,853 $3,212 Annual Operating Cost Savings $445 $4,559 $10,620 $16,345 Financed Project Costs - Principal and Interest 0000 Displaced System Replacement Costs (year one only)0 Net Annual Cash Flow 445 4,559 10,620 16,345 Cumulative Cash Flow 445 5,004 15,624 31,969 Benefit Cost Ratio 0.00 0.01 0.03 0.06 Simple Payback: Total Project Cost/Year Three Operating Cost Savings: Additional Power Use Page 1 of 2 KENNY LAKE SCHOOL FUEL OIL VS WOOD PELLETS ANALYSIS Year Year Year Year Year Year Year Year Year Year Year Year Year 5678910111213141520 30 $90,664 $102,087 $114,950 $129,434 $145,743 $164,106 $184,783 $208,066 $234,282 $263,802 $297,041 $537,661 $1,761,540 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $53,889 $56,045 $58,287 $60,618 $63,043 $65,565 $68,187 $70,915 $73,751 $76,701 $79,769 $97,052 $143,660 $9,066 $10,209 $11,495 $12,943 $14,574 $16,411 $18,478 $20,807 $23,428 $26,380 $29,704 $53,766 $176,154 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305 $1,344 $1,384 $1,426 $1,469 $1,513 $1,754 $2,357 $3,617 $4,073 $4,586 $5,164 $5,814 $6,547 $7,372 $8,301 $9,346 $10,524 $11,850 $21,449 $70,274 $22,965 $30,602 $39,388 $49,479 $61,044 $74,279 $89,402 $106,660 $126,331 $148,728 $174,205 $363,640 $1,369,095 000000 22,965 30,602 39,388 49,479 61,044 74,279 89,402 106,660 126,331 148,728 174,205 363,640 1,369,095 54,934 85,536 124,924 174,403 235,447 309,726 399,128 505,788 632,119 780,847 955,052 2,346,929 10,521,558 0.10 0.15 0.22 0.31 0.42 0.55 0.71 0.89 1.12 1.38 1.69 4.15 18.61 Page 2 of 2