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Home My WebLink AboutAttachment 2.4 Fuel Oil Wood Chips Cost ComparisonDelta High School Fuel Oil/ Wood Chips Cost ComparisonDelta Junction, AlaskaAttachment 2.4 Fuel Oil/Wood Chips Cost Comparison Attachment 5 Fuel Oil/Wood Chips Cost ComparsionDate(Revision Date): October 1, 2008Analyst: CTA-Architects Engineers- Nathan Ratz EXISTING CONDITIONS Existing Fuel Type:Fuel Oil Current Annual Fuel Cost:$4.10 3-year Annual Average Fuel Usage:58,000 Annual Heating Costs:$237,800ENERGY CONVERSION (to 1 mmbtu, or 1 dka)Current Annual Fuel Volume (btu):8,044,020,000 Assumed efficiency of existing heating system (%):70% Net Annual Heating Energy Used (btu):5,630,814,000 WOOD FUEL COST8662790769Wood Chips$/ton: $80.00 Assumed efficiency of wood heating system (%): 65% PROJECTED FUEL USAGEAssumed btu content of wood fuel 5400 btu/lb Tons of wood fuel to create net equivalent of 100% annual heating load802Annual loads of a 30 ton chip van26.7 Project Capital Cost -$2,868,000 Project Financing InformationPercent Financed0%Est. Pwr Use 55000 kWhAmount Financed $0 Elec Rate $0.27 /kWh 10 year 15 year 20 year 30 yearAmount of Grants $2,868,000 0.72 1.39 2.40 6.20Interest Rate 5.00%Term 10Annual Finance Cost (years) $0 21 (years)Inflation FactorsO&M Inflation Rate 5%Current Fuel Inflation Rate 8%Wood Fuel Inflation Rate 6%Year Year Year Year Year Year Year Year Year Year Year Year YearCash flow Descriptions Unit Costs HeatingSource ProportionAnnual Heating Source VolumesHeating Units12345678910152030Existing Heating System Operating CostsDisplaced heating costs $4.10 58000 gal $237,800 $256,824 $277,370 $299,560 $323,524 $349,406 $377,359 $407,547 $440,151 $475,363 $698,465 $1,026,274 $2,215,648Displaced Operation and Maintenance Costs$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Biomass System Operating CostsWood Fuel ($/ton, delivered to boiler site, btu/lb) (90% of total heat rqmnt) $80.00 90% 802 tons $57,752 $61,217 $64,890 $68,783 $72,910 $77,285 $81,922 $86,838 $92,048 $97,571 $130,572 $174,734 $312,922Small load existing fuel (10% of total heat rqmnt) $4.10 10% 58000 gal $23,780 $25,682 $27,737 $29,956 $32,352 $34,941 $37,736 $40,755 $44,015 $47,536 $69,846 $102,627 $221,565Additional Operation and Maintenance Costs$3,200 $3,360 $3,528 $3,704 $3,890 $4,084 $4,288 $4,503 $4,728 $4,964 $6,336 $8,086 $13,172Additional Operation and Maintenance Costs First 2 years$3,200 $3,200Additional Electrical Cost $0.27 $14,850 $16,038 $17,321 $18,707 $20,203 $21,820 $23,565 $25,450 $27,486 $29,685 $43,617 $64,088 $138,362Annual Operating Cost Savings$135,018$147,327$163,894$178,409$194,168$211,277$229,847$250,002$271,874$295,607$448,093$676,738$1,529,628Financed Project Costs - Principal and Interest0000000000Displaced System Replacement Costs (year one only)0Net Annual Cash Flow135,018 147,327 163,894 178,409 194,168 211,277 229,847 250,002 271,874 295,607 448,093 676,738 1,529,628Cumulative Cash Flow135,018 282,345 446,238 624,647 818,816 1,030,093 1,259,940 1,509,942 1,781,816 2,077,423 3,988,203 6,877,760 17,777,849Simple Payback: Total Project Cost/Year One Operating Cost Savings:Additional Power UseSimple Benefit Cost RatiosCummalative Cash Flow/Initial Project Cost