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HomeMy WebLinkAboutHaines Central Wood Heating Feasibility Study - Sep 2017 - REF Grant 2195372Biomass District Heating for Haines Borough SEPTEMBER 2017 • HAINES, AK PREPARED FOR HAINES BOROUGH PO Box 1209 Haines, AK 99827 FUNDED BY THE US DEPARTMENT OF AGRICULTURE -FOREST SERVICE WISEWOOD ENERGY • Technology in Service of Community and Environment BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK Table of Contents ExecutiveSummary ...........................................................................................................................................1 1 Project Background...................................................................................................................................2 2 Existing Systems........................................................................................................................................ 3 2.1 Haines Borough K-12 School and Swimming Pool................................................................................3 2.2 Vocational Education Building..............................................................................................................3 2.3 Garage...................................................................................................................................................3 2.4 Public Library.........................................................................................................................................3 2.5 Administration Building.........................................................................................................................4 2.6 Future Greenhouse................................................................................................................................4 2.7 Waste Water Treatment Plant................................................................................................................ 4 2.8 Potential Future Connections................................................................................................................4 3 Proposed Biomass System........................................................................................................................5 3.1 District Heating Energy Model..............................................................................................................5 3.2 District Heating Phasing........................................................................................................................ 6 3.3 Proposed Boiler Technology.................................................................................................................7 3.4 ACT Equipment Evaluation and Other Boiler Technologies Assessed ................................................. 7 3.5 Preliminary Site Selection......................................................................................................................8 3.6 Air Quality.............................................................................................................................................. 8 4 Project Economics.....................................................................................................................................9 4.1 Preliminary Operating Costs..................................................................................................................9 4.2 Preliminary Capital Costs.....................................................................................................................10 4.3 Simple Payback....................................................................................................................................10 5 Conclusions and Next Steps....................................................................................................................11 5.1 Next Steps — Detailed Engineering.....................................................................................................11 5.2 Request for Input.................................................................................................................................11 WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK List of Appendices Appendix A — July 2017 Memorandum Appendix B —ACT Boiler Inventory Appendix C — Energy Model Appendix D — Proposed Biomass Boiler Building Location and Piping Plan Appendix E — Preliminary Estimated Operating Costs Appendix F — 25-Year Economic Pro Forma Appendix G — Preliminary Capital Cost Opinion WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK Executive Summary The Haines Borough received funding from the USDA Forest Service for the design and engineering of a biomass thermal energy system in Haines, Alaska. The proposed system was intended to serve the Haines Borough School, swimming pool, and a future greenhouse, with subsequent interest in expanding the system to serve other community buildings in the vicinity. The Borough is in possession of three ACT biomass boilers and various related equipment that it hoped to incorporate into the design of the proposed biomass system, to the extent this was feasible and recommended. The Borough contracted with Wisewood Energy to complete the design and engineering of the biomass system through two project phases: first to assess the feasibility and interconnection requirements of an expanded district heating system, conduct an inventory of the ACT equipment, evaluate whether the ACT equipment would be appropriate for the proposed system, and determine the preliminary optimum boiler size to serve the identified heat demand; and second to develop design and engineering documentation based on the determinations of the first project phase. This report summarizes the results from phase one of the biomass project and encompasses previous deliverables submitted to the Borough, including a July 2017 boiler type recommendation memorandum and an inventory of the ACT boiler equipment. The facilities assessed for inclusion in the district heating system include the K-12 School, swimming pool, Vocational Education building, school garage, Public Library, and an Administration building; these buildings are referred to as Phase One, while other potential future connections are considered for a possible Phase Two system expansion. According to Wisewood Energy's preliminary energy model, a 1.7 MMBtu/hr (500 kW) biomass boiler is sufficient to provide 92.8% of the 6,900 MMBtu/yr total heat load for Phase One buildings. Such a district heating system is estimated to utilize 485 green tons (GT) of wood chips (assuming 20% moisture content) and 5,200 gallons of propane (for peak and shoulder loads) per year. Annual operating costs for the proposed system are estimated to be $97,000, including wood and trim fuel, electricity, and operations and maintenance, generating a savings of $74,000 in year one compared to the existing fuel oil systems. Preliminary capital costs for the system are estimated to be approximately $2,593,000, including full system engineering, procurement, and construction management, as well as 10% contingency on equipment and labor costs and a 10% premium for construction costs in remote Alaska. Assuming the existing fuel oil price of $3.17/gal and wood chip price of $130/delivered ton, this generates a simple payback of 35 years, not including grant funding. This payback is expected to improve with increasing fossil fuel prices and a reduced price of wood chips once produced locally from the Haines State Forest. The next step in the Haines biomass district heating project is to initiate the second project phase for detailed design and engineering. Several requests for further input from the Borough are identified in Section 5.2 of this report, which will need to be addressed shortly after beginning the next project phase. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 1 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 1 Project Background The Haines Borough received funding from the USDA Forest Service for the complete design and engineering of a biomass thermal energy system in Haines, Alaska. The proposed system was intended to serve the Haines Borough school and swimming pool as well as a future greenhouse, with subsequent interest in expanding the system to serve other community buildings in the vicinity. The Borough is also in possession of three ACT biomass boilers and various related equipment that it hoped to incorporate into the design of the proposed biomass system, to the extent this was feasible and recommended. The Borough contracted with Wisewood Energy to complete the design and engineering of the biomass system through two project phases: first to assess the feasibility and interconnection requirements of an expanded district heating system, conduct an inventory of the ACT equipment, evaluate whether the ACT equipment would be appropriate for the proposed system, and determine the preliminary optimum boiler size to serve the identified heat demand; and second to develop design and engineering documentation based on the determinations of the first project phase. This report summarizes the results from phase one of the biomass project and encompasses previous deliverables submitted to the Borough, including a July 2017 boiler -type recommendation memorandum (Appendix A) and an inventory of the ACT boiler equipment (Appendix B). The facilities assessed for inclusion in the district heating system include the K-12 School and pool, Vocational Education building, school garage, Public Library, and an Administration building; the Aspen Hotel, Haines Brewing Company, and other buildings on Main Street were also considered for potential connections at a later phase of the system. The results of this feasibility study will inform the Borough's final decision on which buildings, and thus which boiler size, to incorporate into the forthcoming full design and engineering of the district energy system. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 2 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 2 Existing Systems Wisewood Energy visited each of the facilities proposed to connect to the district energy system, as well as the Haines Waste Water Treatment Plant. Haines Borough staff provided Wisewood Energy with billing records of the fuel oil and electricity consumption for each of the identified buildings for several years, including early 2017 data. The existing heating system of each building is summarized below. 2.1 HAINES BOROUGH K-12 SCHOOL AND SWIMMING POOL The Haines Borough High School was built in 1975 and heavily renovated in 2008 to combine the elementary, middle, and high schools into one building complex. It is approximately 96,500 square feet and serves approximately 250 students. The swimming pool is in a two-story metal building adjoining the school. Three 1,632 MBH oil -fired Weil -McLain Model 788 Series 1 hot water boilers with 7 sections each, circa 2008, heat the school and pool throughout the year. Domestic hot water is heated and stored in two electric QuickDraw tanks serving the school complex, and are heated by the boilers. Both the boilers and hot water heaters are in good condition. According to energy data provided by the Haines Borough, the three boilers consume a combined average of 35,042 gallons of fuel oil per heating season at an approximate cost of $113,082. This equates to an average of 5,506 MMBtu per year for heating consumed by the high school and pool together. 2.2 VOCATIONAL EDUCATION BUILDING The Vocational Education Building (Voc-Ed) is a two-story shed -roof metal building constructed in 1982. It is approximately 5,000 square feet and is located adjacent to the Haines Borough School. It has a single 219 MBH Weil -McLain Model 80 Series 1 oil -fired boiler installed in 2008 providing hot water/glycol to four overhead unit heaters distributed throughout the building. The boiler and heat distribution system are in need of replacement. The Voc-Ed building consumes an average of 2,730 gallons of fuel oil per heating season at an approximate cost of $7,565. This equates to an average of 379 MMBtu per year for heating. 2.3 GARAGE The garage is a metal building located adjacent to the Voc-Ed building to the northwest that is used for school vehicles. It was recently constructed, and is approximately 2,500 square feet. A single oil -fired boiler heats the building. The garage consumes an average of 1,409 gallons of fuel oil per heating season at an approximate cost of $4,671. This equates to an average of 196 MMBtu per year for heating. 2.4 PUBLIC LIBRARY The public library is a single -story building constructed in 2003. It is approximately 8,000 square feet and located directly east of the Haines Borough School, adjacent to the track. It has a single Weil -McLain Model 80 Series 1 oil -fired boiler with 5 sections providing hot water. The boiler appears to be in good condition. The library consumes an average of 4,193 gallons of fuel oil per heating season at an approximate cost of $13,873. This equates to an average of 605 MMBtu per year for heating. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 3 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 2.5 ADMINISTRATION BUILDING The Administration building is a single -story building constructed in 1980 and renovated in 2004. It is approximately 3,500 square feet and is located east of the Haines Borough School, directly north of the Library. It has a single Weil -McLain Model WGO-5 oil -fired boiler providing hot water. The boiler is in need of replacement. The Administration building consumes 832 gallons of fuel oil per heating season at an approximate cost of $2,698. This equates to an average of 120 MMBtu per year for heating. 2.6 FUTURE GREENHOUSE While the Haines Borough currently has a small, unheated greenhouse associated with the community garden, the Borough would like to construct a new heated greenhouse. To estimate the heat demand of a future year- round heated greenhouse, Wisewood Energy assumed a 60-foot by 40-foot polycarbonate twin wall structure, which mirrors other heated greenhouses constructed in southeast Alaska. Based on these inputs, a future greenhouse is expected to utilize approximately 409 MMBtu per year for heating. These assumptions and the anticipated location of the future greenhouse should be confirmed during the detailed design and engineering phase of the district heating project. 2.7 WASTE WATER TREATMENT PLANT The wastewater treatment plant, built in 1973, is approximately 2,000 square feet and is currently undergoing major renovations to the metal exterior. The facility is located southwest of the Haines Borough School, across Haines Highway, and was considered for potential connection to the district heating system to add space heating to the plant, which it currently does not have. During the site visit, it was determined that it would be more cost effective to install a dedicated biomass boiler at the wastewater treatment plant than to trench and install hot water piping from the district heating system due to its relatively small heating load and distance from the proposed system at the School. 2.8 POTENTIAL FUTURE CONNECTIONS While on site, Wisewood Energy staff also visited the Aspen Suite Hotel and Haines Brewing Company, both located northeast of the School on Main Street, directly north of the proposed biomass facility site. While both facilities are currently heated with recently installed heat pumps (aside from a moderate amount of propane used for process heat in the brewery), their proximity to the proposed district heating system makes them potential future connections: for example, when fossil fuel prices rise or the heat pumps reach the end of their useful life. The opportunity for future district heating customers is discussed in more detail in Section 3.2. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 4 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 3 Proposed Biomass System 3.1 DISTRICT HEATING ENERGY MODEL To calculate the thermal energy demand for a given building, Wisewood Energy uses an energy model that incorporates key data inputs such as existing annual energy consumption, an estimate of the efficiency of existing heating systems, operating schedules, and heating degree days. The model is used to calculate the optimal biomass boiler size, which is defined as the boiler system that offsets the maximum fossil fuel consumption without being oversized. Typically, biomass boilers are sized to meet approximately 90 — 95% of total annual energy demand, with a backup fossil fuel system providing the remaining 5 — 10% of demand, generally at peak- and low -load times. This is done because fossil fuel boilers can respond much more quickly (and thus more efficiently) to rapid changes in demand, such as during late spring and early fall "shoulder" heating seasons when occasional space heating is the primary demand source. The combined heat load of the Haines Borough School and pool, Administration building, Public Library, Vocational Education building, garage, and future greenhouse is approximately 6,900 MMBtu per year. According to Wisewood Energy's preliminary energy model, a biomass system capacity of 1.7 MMBtu/hr (500 kW) will provide 92.8% of this heating load. Wisewood recommends the Borough install a new 3.0 MMBtu/hr (800kW) propane boiler to provide the remaining shoulder season loads and serve as backup for the entire system; the existing oil boilers can also be retained for added redundancy. The district heating system will use approximately 485 green tons (GT) of wood chips (assuming 20% moisture content) and 5,200 gallons of propane per year. See Figure 1 below for a graphical representation of the energy model results. The complete energy model is included in Appendix C. Estimated Heat Load Coverage by New Wood -Fired Boiler 3,000 m 2,500 C 2,000 0 I (6 = 1,500 T 7 O I 1,000 J 0 Saptemba October N-mber 0."6er danpary Fabniary March Ap,# MaY Jpne July AO9ost K-12 School and Pool IIIIIIIIIIIIIIAdmin Building MLibrary �Voc-Ed Garage 60' x 40' Greenhouse —Wood Boiler Load Coverage FIGURE 1 Energy model for a 1.7 MMBtu/hr (500 kW) biomass boiler Phase One district energy system. The biomass system would provide approximately 92.8% of the facility's annual heating needs (shown by the solid black line),while the remaining 7.2% would be provided by a backup propane boiler during peak and shoulder seasons. WISEWOOD ENERGY I FEASIBILITY STUDY l SEPTEMBER 2017 5 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK The proposed biomass system capacity is approximately one-third smaller than the preliminary system capacity identified in the July 2017 memorandum to the Haines Borough, in which Wisewood Energy determined that a total system capacity of 730 kW would cover the 6,900 MMBtu annual heat load (compared to 500 kW recommended here). In the memorandum, Wisewood Energy recommended a two -boiler system consisting of two 400- or 500-kW boilers with a thermal storage tank, which would retain capacity for future heat customers without oversizing the system. Since that time, further analysis has incorporated additional data provided by the Borough on the operating schedule and energy consumption of the pool; this information indicated that the school and pool energy consumption is steadier throughout the year due to heating the pool during the summer. Incorporating this information into the energy analysis reduced the peak heat load from approximately 3,500 MMBtu/hr (1,025 kW) to approximately 2,500 MMBtu/hr (730 kW), indicating an optimum boiler size of 500 kW would cover 92.8% of the identified heat load. 3.2 DISTRICT HEATING PHASING Because the heat demand of the identified facilities can be sufficiently met with one 500 kW biomass boiler (along with the backup propane boiler), the Borough may choose to construct the district heating facility to accommodate only a single biomass boiler. While the combined biomass and backup propane system will have a total capacity of 4.7 MMBtu/hr (1,400 kW), sufficient for the potential customers assessed in this report, this single -biomass boiler system will limit the expansion potential of the system by requiring more fossil fuel to cover peak loads as additional customers are connected. In other words, adding another heat load to the system without adding new biomass capacity will increase the peak heating demand, which must be met by more expensive fossil fuel consumption. This may lead to a slight increase in per-MMBtu fuel costs for all connected customers, depending upon the number of customers added and the weather each year. Alternatively, the Borough could construct the district heating facility to accommodate the addition of a second biomass boiler, should additional facilities wish to connect later. Doing so would entail designing a second biomass boiler bay and sufficient space for related equipment in the district energy facility and investing in the additional cost for a larger building footprint during initial construction. The optimum size and design of the second biomass boiler would be determined when sufficient additional heat loads were identified and customers were committed to connecting. The currently identified buildings (Haines Borough School and pool, Administration building, Public Library, Vocational Education building, garage, and future greenhouse) are considered Phase One of the district heating system, while future connections would be considered Phase Two. Given the close proximity of the proposed district heating facility site to downtown Haines, the Aspen Suite Hotel, and the Haines Brewing Company, the Borough may wish to retain the opportunity for an expanded system by investing in a larger building footprint in Phase One. However, private owners of retail space can be difficult to mobilize for a substantial infrastructure project such as connecting to a district heating system, so the Borough would need to consider the public outreach required for such an effort. Finally, Wisewood Energy understands that there may be a number of buried utilities between the school and Voc-Ed building. Because this may make piping to the Voc-Ed building and garage more complicated, and because each building has a low heat demand, the Borough may wish to exclude these two buildings from the district heating system. Doing so will have negligible impact on the performance of the system, and will WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 6 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK not affect the recommended boiler size. However, if the Borough is concerned with displacing the maximum amount of fossil fuels with wood fuels, the piping costs of connecting the Voc-Ed building and garage may be worthwhile; this consideration may make accommodating a later Phase Two expansion similarly worthwhile. The decision whether to accommodate a potential Phase Two of the district heating system, as well as whether to include the Voc-Ed building and garage, will need to be finalized in the early part of the detailed design work. The remainder of this report assumes that the Voc-Ed building and garage remain included in Phase One construction. 3.3 PROPOSED BOILER TECHNOLOGY In the July 2017 memorandum submitted to the Haines Borough, Wisewood recommended eithertwo Fr6ling model TM400 or two model TM500 boilers as the best value for the Haines Borough district heating system; the former boiler has an output capacity of 1.36 MMBtu/hr (400M), and the latter has an output capacity of 1.7 MMBtu/hr (500M). Wisewood updated this recommendation during subsequent review of the memorandum, informing the Borough that only the TM500 is available in the United States with an ASME- rated pressure vessel. Because the updated preliminary energy analysis determined a boiler capacity of 1.7 MMBtu/hr (500 kW) is optimal, the Fr6ling TM500 remains the recommended technology for the district energy system for its fuel specification that is well matched to the available supply in the Haines area, low capital cost, and a reliable installation history. Should the Borough opt to include capacity for a Phase Two expansion of the district energy system, Wisewood Energy would recommend a second Fr6ling boiler for more consistent boiler maintenance, rather than bringing in another boiler manufacturer. 3.4 ACT EQUIPMENT EVALUATION AND OTHER BOILER TECHNOLOGIES ASSESSED Wisewood Energy assessed the ACT biomass boilers and associated equipment in the Haines Borough's possession for their suitability as the primary source of heating for the proposed district system, and summarized this evaluation in the July 2017 memorandum submitted to the Borough. A brief review of the memorandum's content is provided here. The ACT equipment includes three dual fuel chip -and -pellet boilers (model CP500 at 500MBH, model CP1350 at 1,350MBH, and model CP1700 at 1,700MBH), heat exchangers and cyclones for each boiler, fuel conveyance components, pellet silo components, two thermal storage tanks, various piping, and miscellaneous hydronic and other components. Each boiler appears to be in fair condition; boiler model CP1350 is in the best condition of the three. Reconnecting boiler control panel wiring correctly and re -commissioning the systems to factory specifications will likely be the primary and most costly issue if attempting to reinstall any boiler equipment, as no detailed instructions were located. Wisewood Energy recommends against using the ACT boilers for the proposed district heating system because of a mismatch in the boiler fuel specification and available fuel supplies, demonstrated lack of manufacturer support during installation and operations, and operational issues reported elsewhere. However, certain components of the equipment may be adapted for use in the system, particularly the two thermal storage tanks, which will be further explored during the detailed design WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 7 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK and engineering of the system. An ACT boiler may be appropriate for a less critical use, such as space heating at the wastewater treatment plant, should mechanically inclined staff be available to oversee the system. Several other boiler models were also considered for use in the proposed district energy system, but were not recommended. These included the Viessmann Pyrot 400 (1.36 MMBtu/hr, 400kW), Viessmann Pyrotec 720 (2.46 MMBtu/hr, 720kW), and Kohlbach K8 800 (2.73MMBtu/hr, 800kW). Each of these boiler options and configurations were summarized in the previous memorandum, alongside the recommended Fr6ling TM400/TM500 model. See Appendix A for the original memorandum. 3.5 PRELIMINARY SITE SELECTION Appendix D shows the proposed location and preliminary piping route of the biomass district heating facility as determined during Wisewood Energy's site visit. The site was subsequently approved by the Haines Planning Commission in July 2017 and will be used as the basis of design during detailed design and engineering. The biomass facility footprint will take up only a portion of the area shown, approximately 4,000 square feet, and is expected to be located entirely within the property boundary owned by the Borough and leased to the School District. The final, specific location within the approved site will be determined during detailed design of the system after a site survey has been completed. 3.6 AIR QUALITY Typically, the emission of greatest concern for air quality from biomass energy systems is particulate matter, or fine particles of dust. While particulate emissions are generally higher in these systems than in fuel oil systems, modern biomass boilers are extremely clean compared to other types of wood combustion. For example, they have approximately 20-50 times less particulate emissions than EPA -certified wood stoves and 50-100 times lower emissions than open pile burning. Furthermore, the wood chip system recommended for the Haines Borough features combustion technology that employs feedback from oxygen and temperature sensors in the combustion chamber and flue gas stream to optimize the air -to -fuel ratio, resulting in efficient combustion, low carbon monoxide emissions, and low particulate emissions, even with varying fuel quality. In Wisewood Energy's experience, meeting the relevant permitting requirements is not a problem for small- scale systems. A biomass feasibility study completed by CE2 Engineers for the Borough in 2009 determined that a minor source permit is required in the state of Alaska for biomass systems that burn more than 6,000 tons of wood chips per year, and that federal New Source Performance Standards (NSPS) apply to wood boilers with a heat input capacity of at least 10 MMBtu/hr. The proposed district heating system for the Haines Borough is far below these thresholds, with an expected annual fuel consumption of 485 green tons and only 1.7 MMBtu/hr output capacity. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 8 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 4 Project Economics 4.1 PRELIMINARY OPERATING COSTS Wisewood Energy compared the estimated existing costs of heating the Phase One buildings identified above for one year with a 1.7 MMBtu/hr Fr6ling TM500 wood chip district heating system, including fuel, heating and ancillary electricity, labor, and maintenance costs. A delivered price of wood chips is assumed to be $130/GT (or $10.21/MMBtu) based on fuel providers in the Yukon Territory (see Appendix A for the July 2017 memorandum detailing wood chip pricing); this price can be expected to decrease should wood chips of sufficient quality be produced locally in the future. This comparison is summarized in Table 1 below, which shows Year 1 savings of $38,000 against the current price of fuel oil ($3.17/gal, or $23.66/MMBtu). A full stabilized year estimate of operating costs for the biomass district heating system is included in Appendix E. TABLE 1 Comparison of estimated annual operating costs between existing heating systems in Phase One facilities and the proposed biomass Phase One district heating system (rounded to the nearest $100). Wood fuel cost is based on a delivered price of $130/ton. FUEL OIL $140,300 ELECTRICITY $23,600 OPERATIONS $8,000 TOTAL $171,900 WOOD FUEL $63,300 ELECTRICITY $10,700 OPERATIONS $13,000 TRIM FUEL $10,500 TOTAL $97,500 The operating costs shown in Table 1 above are representative of Year 1 of operations, after which costs would escalate. Wisewood Energy used an escalator of 4% for fossil fuels, which is commensurate with long term increases in the fossil fuel market; electricity, wood fuel, and labor costs were modeled with a 2% escalator. The effects of these escalators can be seen in the 25-year lifetime economic pro forma included in Appendix F. A snapshot comparison is shown in Table 2 below, where operating costs of the existing fossil fuel systems increase by almost 140% over 25 years, while the already lower biomass operating costs increase by only about 70%, resulting in potential cost savings over the life of the system of over $3.2 million. TABLE 2 Summary comparison of 25-year operating costs between existing and biomass heating systems (to the nearest $1,000). EXISTING SYSTEM $172,000 $410,000 $6,855,000 BIOMASS SYSTEM $97,000 $167,000 $3,223,000 BIOMASS SYSTEM SAVINGS $74,000 $244,000 $3,632,000 WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 9 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 4.2 PRELIMINARY CAPITAL COSTS Wisewood Energy estimates the cost of the biomass energy system described in the previous sections to be $2,593,000, as shown in Table 3 below. This includes full system engineering, procurement, and construction management, as well as 10% contingency on equipment and labor costs and a 10% premium for construction costs in southeast Alaska. The preliminary cost estimate also includes a hydraulic ram infeed system, which will enable the system to utilize a larger wood chip particle size. If the Voc-Ed building and garage were excluded from the system, the cost estimate would decrease by approximately $46,000 (and have a minor impact on preliminary operating costs, not detailed in this report). A detailed summary of total preliminary project costs is provided in Appendix G. TABLE 3 Estimated capital costs of the proposed biomass system. "EPCM" includes engineering, procurement, and construction management, as well as a 10% remote Alaska construction cost premium to account for the varying labor and procurement costs in rural Alaskan communities. All values are rounded to the nearest $1,000. Construction Costs $1,750,000 General Contractor Costs $350,000 EPCM Costs $283,000 Alaska Construction Premium $210,000 Total Estimated Cost $2,593,000 4.3 SIMPLE PAYBACK Simple payback, which does not take into account price escalators over the life of the system, is often used to justify the economic viability of capital improvement projects when the capital outlay will result in an operational savings. When the capital expense ($2,593,000) is divided by the estimated Year 1 savings ($74,000), the result is a simple payback of approximately 35 years, without the inclusion of any grant funding. Taking into consideration the escalators discussed above, the simulated payback may be closer to 20 years before grants are considered. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 10 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK 5 Conclusions and Next Steps The proposed biomass district energy system described in this report presents a unique opportunity for the Haines Borough to expand its use of wood fuels, develop economic opportunities to utilize sustainable resources available in the local community, reduce energy costs, and serve as a model of community district heating in southeast Alaska. Wood chips sourced from the Yukon Territory are available at a lower cost per MMBtu than fuel oil, and the existing grant funds will help improve economic payback. Perhaps more importantly, a modern biomass district heating system will displace imported, finite fossil fuels with locally abundant renewable fuels and will provide more stable budgeting across Borough facilities while supporting the local economy. These additional benefits can be difficult to quantify in economic terms. 5.1 NEXT STEPS - DETAILED ENGINEERING The next step is to initiate detailed engineering of the district heating system. Wisewood Energy is in discussion with the Borough to update the scope of work for this second phase of the project based on the results of this report. Detailed engineering is expected to include final mechanical design of the system, as well as structural, electrical, and civil engineering sufficient to construct the system, depending on the Borough's available budget. 5.2 REQUEST FOR INPUT Several components of the proposed system will require finalization shortly upon initiating the detailed design phase of the project. These are outlined below, along with specific requests for input from the Haines Borough. DISTRICT ENERGY PHASING, CONNECTIONS, AND HEAT LOADS System phasing and all heat loads must be finalized prior to commencing detailed mechanical design. • Determine whether the Borough wishes to accommodate a second phase expansion of the district heating system by investing in a larger footprint now. • Determine whether to exclude the Vocational Education building and garage, or any other buildings identified in Phase One. • Confirm whether Wisewood Energy's assumptions for the future heated greenhouse construction align with the Borough's intentions. • Provide input on whether space heaters are frequently used to supplement heating in any of the Phase One buildings. SITE SELECTION AND PIPING ROUTES The proposed biomass facility site and piping route for distributing hot water to each connected building need to be confirmed by the Borough prior to conducting a site survey. Once a site survey has been completed, both the site and piping route will be finalized. • Provide input on the proposed piping route, keeping in mind Borough property boundaries and known buried utilities. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 11 BIOMASS DISTRICT HEATING FOR HAINES BOROUGH I HAINES, AK • Inform Wisewood Energy of any new information regarding approval of the proposed biomass facility site. • Provide input on the likely location of the future heated greenhouse. BACKUP FOSSIL FUEL SYSTEM The preliminary operating and capital cost estimates assume that a propane boiler is installed in the biomass facility to serve as backup and to cover peak and shoulder heating loads in a centralized location at a minimal cost. However, the Borough may wish to rely only on the existing fuel oil boilers that are in good condition for backup and shoulder seasons. • Determine whether a backup propane boiler located in the biomass facility is desired. WISEWOOD ENERGY I FEASIBILITY STUDY I SEPTEMBER 2017 12 APPENDIX A July 2017 Memorandum WISEWOOD ENERGY • Technology in Service of Community and Environment MEMORANDUM TO: Brad Ryan (Haines Borough) FROM: Meagan Nuss (Wisewood Energy) CC: Darsie Culbeck (Haines Borough), Devany Plentovich (Alaska Energy Authority), Bob Deering (US Forest Service), Robert Venables (Southeast Conference), Andrew Haden (Wisewood Energy) DATE: July 14, 2017 RE: Comparison of biomass boiler options for the Haines Borough Brad, As we have discussed, the success of the biomass district heating system being planned for the Haines Borough depends on selecting the most appropriate boiler technology for the conditions in Haines. Of paramount importance in this consideration is matching the selected boiler's fuel specification with the fuel supply and quality that is expected to be available in the area in the short- and long-term, in addition to estimated capital costs and maintenance requirements. The district energy system's capacity to be expanded and connect new future heat customers should also be a consideration, given its close proximity to other facilities. Below we summarize our understanding of the fuel supply available to Haines, compare potential boiler technologies, and provide Wisewood Energy's technology recommendation for the planned district heating system. See Attachment 1 for a boiler summary comparison table. Fuel Supply Wisewood Energy understands that the Borough would like to utilize wood chips from the local Haines State Forest in the long term. Until such material is economically available, wood chips may be purchased from fuel providers in the Yukon Territory, or wood pellets may be sourced from Juneau. These options are discussed in more detail below. HAINES STATE FOREST WOOD CHIPS The Haines State Forest is 286,000 acres, 42,000 of which are managed for timber. According to the State Forester, five to six individuals currently bid on timber sales and operate a variety of wood processing businesses, although none are currently MM WISEWOOD ENERGY BCL is selling wood chips for $150/ton plus $4/km (CAD) after the first 150 kilometers. This is equivalent to approximately $114/ton, plus $4.84/mi (USD) after the first 93 miles. BCL is approximately 260km (161 mi) from Haines, which is equivalent to about $130 per delivered ton (USD). Fuel is delivered in a 53-ft walking floor trailer that holds approximately 20 tons of material. Currently, no additional tariffs apply to international shipments of wood chips and there are no known restrictions on potential wood disease or insects (although either of these potential constraints could change in the future). It is recommended that invoices be divided between fuel and transportation costs and that the fuel value is kept below $2,500 (USD) per transaction to avoid lengthier international border paperwork. Based on Wisewood Energy's conversations with BCL, the company appears to have high capacity, has demonstrated an investment in supplying wood chips for biomass energy systems, and likely represents a reliable source of fuel for the Haines Borough. To accept fuel from BCL, the Borough biomass system ought to be capable of handling at least 20% moisture content. BCL wood chips produced with a 3" screen should be evaluated for their appropriateness to meet a 2" minus specification. WOOD PELLETS In the event that wood chips are not available either locally or from Yukon providers, a dual -fuel boiler may utilize wood pellets. At least four buildings in Haines are currently heated with pellet -fueled biomass boilers. Pellets for these systems are typically imported from SEAlaska in Juneau for $430/ton. While pellet fuel is uniform, with lower maintenance requirements than wood chips, a high delivered cost and reliance on external sources makes this an unappealing (and potentially uneconomical) long-term fuel option for the district heating system. However, a dual -fuel boiler (with the related in -feed equipment) will lower fuel supply risk for the Borough if wood chips are unavailable for any reason. A system that is only capable of using wood pellets is not recommended, as it would not address the Borough's interest in developing local sources of fuel. Biomass Boiler Comparison Typically, biomass boilers are sized to meet 90-95% of total annual energy demand, with a backup fossil fuel system providing the remaining 5-10% of demand, generally at peak- and low -load times. This is done because fossil fuel boilers can respond much more quickly to rapid changes in demand, such as during late spring and early fall "shoulder" heating seasons when occasional space heating is the primary demand source. According to Wisewood Energy's preliminary energy model, a biomass system capacity of 2.5 MMBtu/hr (730 kW) will provide 97.2% of the heating load for the Haines school and pool, administration complex, library, vocational education building, 3 WE WISEWOOD ENERGY garage tank, and future greenhouse, with a backup fossil fuel boiler to cover the remaining shoulder season load; this identified heat load amounts to approximately 6,800 M M Btu per year. This capacity can be provided by either one large boiler, or two smaller boilers. Two smaller boilers have the advantage of providing redundancy in the case that one boiler requires maintenance or is out of service. Importantly, two small boilers also have a higher combined turndown ratio than one large boiler. During shoulder seasons when only a small amount of heat is required, systems with high turndown ratios are able to continue operating on biomass, while systems with a low turndown ratio are more likely to switch to a fossil fuel backup boiler to maintain efficient operations. A high turndown ratio also contributes to better flexibility in handling variable fuel moisture contents because wetter fuels typically increase the turndown ratio and lower the output of boiler, especially as moisture contents go above 40%. This has a considerable effect on the performance of the system, and its ability to sustain outputs at both the high and low end. Wisewood Energy has considered a number of boiler manufacturers and models based on the energy needs of the Borough, the existing assets owned by the Borough, and the available fuel supply. These options are described below, including the preliminary boiler system recommendation by Wisewood Energy. While each considered boiler has low emissions and includes state-of-the-art combustion controls, a more detailed discussion of air quality will be included during a later stage of design and engineering. See Attachment 1 for a summary comparison table of the boiler options considered. TWO MODEL TM400 FROLING BOILERS - RECOMMENDED Two model TM400 Fr6ling boilers have an output capacity of 1.36 MMBtu/hr (400kW) each, or 2.8 MMBtu/hr (800kW) total. The system is designed to handle wood pellets and/or wood chips with a moisture content of less than 45%, and 2" minus particle size. If a hydraulic ram in -feed system is included in the design, these boilers can handle up to 4" minus particle size, providing a wide range of fuel flexibility. Capital costs for the boiler unit itself is estimated to be approximately $150,000 each (not including in -feed equipment, related boiler equipment, or labor), or $300,000 for two. The fuel storage, in -feed system, and controls design can be integrated for smooth dual -fuel operations. Fr6ling is a respected manufacturer based in Austria, with a successful track record of installed projects in the Northeastern USA and Canada. Wisewood recommends two Fr6ling model TM400 boilers as the best value for the Haines Borough district heating system. This configuration has a fuel specification that is well matched to the available supply in the Haines area, low capital costs, and a reliable installation history, with the added benefits of a two -boiler system. 0 WE WISEWOOD ENERGY Of note, Fr6ling also makes a model TM500 for a similar cost as the TM400, but with increased total capacity. Installing dual 500 kW units could be beneficial, since there would be little loss of performance at the low end of the output range, and the system would have more redundancy and potential for future expansion. Should the Borough proceed with Wisewood Energy's recommended boiler selection, the ideal expansion potential of the district heating system should be discussed. TWO ACT BOILERS MODEL CP 1350 AND CP 1700 The Haines Borough is currently in possession of three ACT boilers and certain related equipment. These include three dual -fuel boilers (CP 500, CP 1350, and CP 1700), cyclones, one or more pellet silos, segments of 10" and 12" flue stacks, two thermal storage tanks, and a variety of ancillary parts and equipment. The CP 1350 and CP 1700 would together be sufficient to supply the heating needs to the identified district energy customers. ACT boilers are designed to handle wood pellets and/or wood chips with a moisture content of less than 30%, and a 1.25" minus particle size. This fuel specification is the least flexible of the boiler systems considered, and is potentially too low of a moisture content and too small of a particle size to be reliably supplied by the local area, based on the available information at this time. In addition, while the boiler is a dual -fuel system, the storage and in -feed equipment are designed for pellets. In order to also utilize wood chips, an additional storage and in -feed system would need to be designed, and controls would need to be synced across the ACT and other manufacturer's equipment, which can increase costs and complexity. While there are no additional capital costs to procure the equipment, the ACT equipment has been partially or completely disassembled and lacks instructions for re- wiring and correct installation. The ACT manufacturer has also demonstrated a lack of willingness to respond to questions and assist in installation. As such, significant costs for labor and time to reassemble the equipment would be necessary. Wisewood Energy has estimated these costs to be approximately $30,000 — $60,000, but the total amount is difficult to determine at this time. Additionally, Wisewood Energy visited New England this past April, in part as a fact- finding mission regarding local experience with ACT equipment, and spoke with multiple engineering and installation firms that have experience with ACT boilers. They were unanimous in their opinion that ACT boilers should be avoided for critical infrastructure uses if other boiler options are available. The stated reasons varied from lack of support, to expensive support, to poorly designed controls that resulted in problems ranging from frequent back -burns as well as other safety issues. The same sources indicated that if there is someone mechanically inclined available to work on 5 VIM WISEWOOD ENERGY the systems on a regular basis, and give them daily care, then they can function in a satisfactory manner. For these reasons, Wisewood Energy recommends against using the ACT boilers for the district heating system. However, certain components of the equipment may be adapted for use in the system, particularly the two thermal storage tanks. In addition, the CP 1350 boiler appears to be in the best condition of the three, and may be used in another less -critical facility in Haines, such as the wastewater treatment plant. TWO PYROT 400 VIESSMANN BOILERS Like the Fr6ling TM400, the Viessmann Pyrot 400 has an output capacity of 1.36 MMBtu/hr (400M) each, and two such boilers would suffice for the Haines Borough district heating system. The Pyrot 400 has a slightly narrower fuel specification, recommending that 2" minus wood chips under 35% moisture content be used instead of 45%. The Pyrot is also a dual -fuel system. Capital costs for the boiler unit itself is estimated to be approximately $250,000 each (not including in -feed equipment, related boiler equipment, or labor), or $500,000 for two. The fuel storage, in -feed system, and controls design can be integrated for smooth dual -fuel operations. Viessmann is also a respected manufacturer based in Austria, with a successful track record of installed projects in the USA and Canada. Because the Viessman Pyrot boiler has a narrower fuel specification than the Fr6ling, and a higher capital cost, Wisewood Energy does not recommend this option for the Haines Borough district heating system. ONE PYROTEC 720 VIESSMANN BOILER The Viessmann Pyrotec 720 boiler utilizes a different type of combustion system than the Pyrot 400, and is available in higher output capacities, including 2.46 MMBtu/hr (720M). As such, only one boiler would be required to provide sufficient heating for the proposed Haines system. Due to its more massive combustion chamber, the Pyrotec can efficiently combust wood chips up to 50% moisture content, 2" minus particle size, in addition to wood pellets. Capital costs for the boiler unit itself is estimated to be approximately $350,000 each (not including in -feed equipment, related boiler equipment, or labor). The fuel storage, in -feed system, and controls design can be integrated for smooth dual -fuel operations. Wisewood Energy recommends against the Pyrotec 720 boiler. According to discussions with the State Forester and other local stakeholders, a biomass system that is able to take fuels up to 50% moisture content is unnecessary in the Haines area, because sufficient supplies and capacity exist to consistently provide a chip with a lower moisture content. Furthermore, the 2" minus particle size offers no additional benefit from the perspective of wood chip production costs, compared to a system that can 0 MIM WISEWOOD ENERGY handle a larger chip. While a wider fuel moisture specification does provide more flexibility, the additional capital cost is not a worthwhile tradeoff in comparison to the dual TM400's which cost less, can be outfitted to utilize a 4" minus chip, and can handle 45% moisture content. ONE K8 800 KOHLBACH BOILER Another well -respected Austrian boiler manufacturer, Kohlbach specializes in biomass systems that can efficiently and cleanly utilize minimally processed, wet "hog fuel" wood chip material. One K8 800 unit with a capacity of 2.73MMBtu/hr (800kW) would be sufficient for the Haines project. Kohlbach systems are crucial in areas with little active wood processing activities or entrepreneurial capacity, where a select chip with a specific particle size and moisture content cannot be reliably sourced. With the proper in -feed equipment, these systems are able to handle large particle size chips up to 6", stringy material, and occasional oversize materials that exceed 12"; however, wood pellets are not recommended. Such a system has higher capital costs, with a single boiler unit estimated to be $500,000 (not including in -feed equipment). Wisewood Energy recommends against the Kohlbach K8 800 boiler for similar reasons as the Viessmann Pyrotec 720 boiler. While a wide fuel specification range increases fuel security, the higher capital cost is not worthwhile when an adequate wood chip can be produced in the region. Furthermore, in the case of the Kohlbach boiler, wood pellets would not be a long-term viable alternative fuel, should wood chips be unavailable for any reason. Next Steps As described above, Wisewood Energy recommends that the Haines Borough biomass district energy system be designed around two Fr6ling boilers. We would like to arrange a conference call with the Borough to discuss and confirm this recommendation, and also discuss whether the TM400 or TM500 model would be best suited for the Borough's long-term goals. Once the boiler selection is finalized, Wisewood Energy will incorporate the decision into our energy model, develop capital cost and operating cost estimates, and compile this information into a final report for this first Level 10 phase of the biomass project. Please let us know when you are available to discuss the above, and whether you have any questions in the meantime. Best regards, Meagan Nuss VA 7 WISEWOOD ENERGY Attachment 1 Biomass Boiler Summary Comparison Table Q V7 W z Q l7 w m V1 W z Q 2 L 10 D 0- v O u O O o 0 o M O In b4 Lo N v 4-1 Q N O CD N -Cv C O p N Q V V p p O 10 � � lM >O O LO > W v cV L Q v O O U U O E O O O 0 � >O b nj > v 0-01 s N LO M II v CD O O m N Q iii N SZ V O O O O O O N V N CD U 0 M O -0 Eb- O — 0 N L t L iii N L O 4 Q v CDC O CDN Q u O 0 0 E `O 0 O o O L cy? >O > O M M b4 v O z O z O z O z �i Ea) (L)E41 _0 a) s a) c c '+ a 4 w � i m O S V41 c O (n 4 L a) c m } s a 4 +� + 3 V � v O O c S + O v C) U >, S �O 0O O 4� + 0- L Z a u O c M Z L S m O s V O a O M O S M (6 � Es C •+, :O N L.L N O —C U i Q N J } W Z W O O W sn APPENDIX B ACT Boiler Inventory WISEWOOD ENERGY • Technology in Service of Community and Environment (NN W z W A 0 0 N 1-4 E 0) N c m V a W ° - O u 3 o ° m am o o m a= O at � R mL O) O O` y u u °i 3 c u m O U) O ,o c a) 'm 0.-0 N N Z w 0 u m T c 4 9 c m m a)u m 4 4 ° a m am. y C r £ � d N V M a) y N M N 'C E a)) � R C a Y U^ m N m N o v Q R -O '3 XO H a (J — H U R o Q m N '+' R u '3 X U U u U @ o `m Y Q a Q y o o y �° a `o Q Q o o o a)H °o a Y o O O a, O wo m ° OO ID a) o 3 c O • N c� s — M 0s— C7 C7 N C O E O R M c �=O V c D_ O Q—' c a -0 O 7 M N M d 0 M a 0) Rio O M E C O_ i+ C O a)R a) '� U M czs oo m N '^ O a r` C M a 7 R a N °� C �-. C M W m -O R^ R N — p am+ Y M O- `-0 aR+ W U •O N co c 3 0 a`) a) -O a,M N oo 0)p a) �' N a) N R O• 3 O p N j W m 1 cp cp ro a) =_ c co .a ao a-) rn C C R S u N E -O H )O t^. U .R N .` ° R E E .... n p s ,t C E 'fp M > u-0 M V a) M 3 c R -° )n )n M M M m u M X O m m M -p R -° m M x n '� a) Y m a)o Z m V ro m o� ro ro ro R .� ro m Q o-C a .O. N C a) to R R R u O m 'N a) 0 W Y O O- c m R x R m ° J o � a �° m °0 m X a) c N p N a) O to c O_ 0E C ° ° a) v a) °m 'O E O oO da O O E O O EO O A YZ p a) N •C Q m a) ° 61 w O E 9 a) m O a) m C O R R u U— 0 - a) d V 0 N m c0 O c 7 a' 't a) LU LU x C 0) C ° E` U L °- E N 4 ys 3 m 3 m U o 3 .m a) o x R m tR c o o m° 0 E c °U Y R o O L 4 0 U �' m R _° c 'c -2 � o R c •t O c p -O -0 O_ o m g 0— u R 3 O 0 p 0) v 5 0: a) o m o R a t'e 0 0 0 m: : c :: 2: cn l7 : u Q u .S 0 o c E rn E o a� m,o E x @ w U m a) a) z Z P P m 0 C E O N N 0 . y 0 N 'E H H rnC) a ^ 3 M Q Q a) o a a) T o U T o o 0 a w o ^ m s m '-' co — > a`) m o 0 E ° o rn rn � '+• c O R a V U o u a) C M c oo c 0 CC G a) 0 m m c a) a 0 N o u^ a, c oo O o T 'o w vi a o_ -Q a) w a p- c c m N t'i ° •g 0 c V c N L O' W s X = m s X C a) c D co R N o m R o s a) O — O U Of W w N vOi 2 V M 2 U tV m a N N o O c @ N v [O [0 t_ @ m Q E N _ rn U C N c u 01 C m m 30 m a) ro o p 0 o E c C m O � o p J Q J -° m m m U @ N m N O .0- O O O@ N .E a O_ c m O` O H N O C `! d N N R O 1 o m t0 C -O m N a— 0 d m 'J o - 0 0 N J L N ° m C Z« c Y c a c U@ N cCIJ d 3 aci m a) L L 3 o m m o u O .0 v N m O C E m M M« C m E �v o .�r` �NO Q u m J ua ai �� ��m ° O Q Q O 0 E a) On E@ -O EHm O @ c O m N p N H — E a) a/ u u m o fm` 0 O o l7 o D C : o OE ° m = m Q EN • • � • •O N J 0'M .-: .-• ^ C C O J N W -O W C M .p p. -O O p a) UJ v .-. N M .0 U C m C M X m M= C M N M O C @ E J v m E m° °: `o rnvv'Emp@ u rn c m E ^ a �m — °n T p- wm p_ o m m rn ;EMS^ H o cvo > J 3 M P @ E m C J U = J v -O CO E Y 'C W L L N m x�MM > oM m °a m rn� @ �v 3 m m S ° N y E 3 rnE a) m r: W C J V N L O r O. 1.) 4Cmm -ID U) N 'I'" t W N —M dy s'H O a) _NOp E mo M � dE m E Q.) O O a) > O-- a) > O aa > O cc a�O > � w` � —m Oad)_ O O —$ OM � °` �^3 N `O 3 .�� OM - .-R Cn .O C V b, P o- O E P n N j j N V L O m N^ m M M M O aMo axi .3 w Q w ado o 'a m S S m m w w S ww Z �° w m 'a O rn U 0 � J j m W @ U Q N a) J V 2 c c c c ° O t H 0 0 u .o .o 0 0 D o c m t o o =o c o d o . E y o 0 0 0 � o m E u u m XO u a>'i -@O m u O 0 0 0 0 O ~ U Q 0 p r O c .0 m 0) -0 O X c 01 c = LU 01 m .W .�.0 W c m N m 0 0 O O O p 0 p m N m R al O 0 o 0aa Q p c c p- `t a Z a O m m > ¢� > a a LU E N Z N M N H W V Q M m N 'O O O uV c ° 4 ° E c o '� ' .� N EO N m L c m m m C 5 a J 0 x C O E E o ° ° Tj o N c 0 a)3 � @ N« m rn � E H O) O m w j T .. m j C a) p O) O - J m ° x 0 m u 0 L 'O ° m Q o N .y N 0 C a) w N a) = d o -° U C a) Y C O ° N N m N � Q ° 0 CMQ 0 0 U E m° o @ E x v 3 — ^ m u m -0 0 0 u@i N O ai w 2 01 N 0 u Z u 'c c W C C X al c0' al c :O X �- @ w u �'' 3 N p> m 2 H N p o O O 2 V > U — > L T - U I > m H 2- 1 1Q Q 17 W P O N N N N Y 12 3 3 0 m a E O J o 0 O vO u E O -O u o L E E O u L O O N 0 H C O w c a! O N a o-- u a a) O o c Y E y E IE `o P jp c ^ J c0 l0 O C o w oo N m N Y W O) N o C N Q a0 O O ^O O C — O_ N O) - N O N o E '° ,o E : a0 c N c V co N �—^ m o M ,O m m a j C O .0 a d m o C N m N N E o a E v E o f �' ,o m `o 0 o u m a`) o > E o m E 0 E 0 o c 0 o o _O a Y m c E o a _ E O -o o Q O a)O o o a)a o o a N P V V P V V N W O NI o O CN C Y a u) to O al m W C � a) O) N o D aJ m W c Q m rn Q m rn L Q o C im o O M N V N N N APPENDIX C Energy Model WISEWOOD ENERGY • Technology in Service of Community and Environment E 02, C N W ° @ W m m 3 W 2-0 C C Qu 'D ' 0 C0E U a O ��W VI T @ = d N O O 00 N O O o V c 00 O 0 r M^ O N O U O V1 o C N I� Lq M O M O W r O ¢] V m o r o r O M EA O P. (O (O W N a O N O 6? O O O 3 w0 N M l0 I� O l0 l0 M N 7 d U C O y O O Q o a E ' @ y U EA EA .U, O N N >T> y> m m O E o 0 u U C L L (A — o a� c 3 o c y O o a c o o -° y o m m c a ° °' 'o a a m a W E -o E aLTi —@°m d w~ o @ C N @O. o O U y @ m O N r O N W R m N I� i OND @ ~ E m @ o d a o .O. U U O a vyi 0 `m o 0 o 0 O N e p @ O m M e O. r M O o co V N� O a E 0 '/� y m @ c M N m M m M O M V O O N m "r O M N M N n O LO OL m Cl) O O w U N Ih M EA ((j O EA E O [") a r m W I� O a M N N o 0 O m u 0 c y U U °Lp U N y O U d a O E y O LL L N y aL N N m m > > o U ^ Y Y Cm m O m m N @ O> @ N O O _ m c 'O y F LL w w @ @ y O cJ @ (0 Lm U c r E m o o (Li o ; o c L° a -O OL @ @ m O a m y O E (Cp N E L a O T T a C j O a L L 3 U U p_ o d @ U � U� N r m m � M o a co M w M co m m (O (O m T 2) N p o U @ O y� y O N `y OL @ L C U V N r2 O l0 I� N w I� M o m m I� m M (O m CC N W O O W N — o X a @ N @ U a L Lu m C" W ; m rn o m @ N LL O N a Uf c c Q N W W C w w c 0 U — c y O w .a y t0 O y O O N n M n Lo W N 7 M 0 0 0 C m M co co N N M _ M� N� 66 c5 N N 0 l0 N ap U 7 N W O m O N LOO EA o �, � N L) C EA EA C U O m O LL O 3 C d a E t@1 Ol m > o U m m>> U ° O -o T >. N zO o 2 Y Y N (.J C� L d LL j N C a U N N y N N O O o o y LL :� �_ @ @ y 'E c o 'Y-' o 0 j� O O W O I� r V V m m LO O LL U U o O U 'O U typ t E E m ?i m N O T@ O. 01 U m@ o C 2 m N m I� O m m M (O O (O C 'O G1 E '@O '@O y w co E O 2 a a @ E = E y O 5 O O m o" a O L U m o Ly Ly X y w U y U U O O @ m y a L W @ a m m O. °O N @ N a d O w Q a w w w L d o; c m Q O o LL o ' @ Q L@ } O O T E 0 Qc s E 0 Uaw 0 W m CD > e ° U co J N O 0 >O L. I .MO W N 7 O L L. it LL m 0 � O 6 0 x 0 O l Q N Z r w O 0��( \V 0 2 iq m 2 V m E Q C W �_ - 7- Q �1 S � 2 �( O d z N O O U N C � Y 0 0 o 0 0 0 0 0 0 0 0 0 M WHOM N N puewGC1 }e@H AjjnOH @5eaany m N O W Ln r N (O fM N 6 01 O O O O W 5 N O 601 V M N N O6 W W PO m a o 0 o O O in N I� o f O in O in o in O in N N o O in O in in O in N in N o in O in N O N LL"i n O N LO N � O N � O N LL"i n O O N �O I� I� O N � N O m m N N � 7 � O L � o U O1 a N N V J N N aD ° m /O�/� W M a o O O " I N M L W � Z m C7 b 0 x O N O N r C m cliN O W ca EI = v w � a J M p N C a Q ro N rn E co a E N +� N o W a° a °o c m 10 oo U M N 0 0 0 0 0 0 0 o in o in o u-� I (H8W) PuewG(3 WGH POWMIs3 APPENDIX D Proposed Boiler Building Location and Piping Plan WISEWOOD ENERGY • Technology in Service of Community and Environment 40 APPENDIX E Preliminary Estimated Year 1 Operating Costs WISEWOOD ENERGY • Technology in Service of Community and Environment Haines Borough Biomass District Energy W I S E W O O D ENERGY Estimated Operating Expenses Location Haines, AK Proposed System Biomass District Energy Contact Andrew Haden Client Contact Brad Ryan Proposed System Output (MBH) 1,706 Phone (503) 706-6187 Date 9/1/17 Proposed System Fuel Type Forestry Residuals M, Email andrew@wisewoodenergy.com Existing Fossil Fuel Heating System Operating Cost Oil Current oil consumption 44,206 gallons per year Current heating oil cost $ 3.17 per gallon Subtotal: $ 140,273 Current electricity for heating consumption 110,464 kWh per year Electricity cost $ 0.21 per kWh Subtotal: $ 23,627 Maintenance Maintenance labor $ 5,000 per year Maintenance parts $ 3,000 per year Subtotal: $ 8,000 M Proposed Biomass Energy System Operating and Maintenance Cost Wood Fuel Wood use 485 tons per year Wood fuel cost $ 114 per ton Subtotal: $ 55,257 Wood Fuel Handling & Delivery Handling and transportation 485 tons per year Tons per delivery container 20 tons per load Fuel deliveries needed 24 loads per year Transportation cost after first 150 km $ 4 CAD/km Exchange rate $ 0.75 CAD to USD Delivery distance 260 km Transportation cost $ 330 LSD per delivery Subtotal: $ 7,998 Electricity to Run Boiler Total electrical consumption 50,235 kWh Total electrical use charge $ 10,745 per year Total electrical demand charge $ - per year Subtotal: $ 10,745 Remaining Propa Propane use (peak and low load) 5,237 gallons Propane cost $ 2.00 per gallon Subtotal: $ 10,473 New Biomass System Fuel Cost, Total $ 84,472 All materialsm—ld in Mis tlocumeniare the in[ellecWal propert Wi—dE—&a,Mare p-d,dexcl—1,tA Client Copyright®Wserveotl E—V. All rights reservetl. Ash Dispos Ash container removal Labor for ash container removal Ash disposal fee Weekly Maintenance Weekly boiler checklist Labor cost 2 intervals $ 88 per interval $ 703 per interval 40 weeks $ 100 per week Subtotal: $ 1,500 Subtotal: $ 4,000 Monthly Maintenance Monthly boiler checklist 12 months Labor cost $ 300 per month Boiler water treatment $ 50 per month Remote Monit Remote monitoring 12 months per year Static IP and Internet connection $ 60 per month Administration Insurance 0.10% of Project Cost Subtotal: $ 4,200 Subtotal: $ 720 Subtotal: $ 2,593 New Biomass System Operations and Maintenance Costs, Total $ 13,013 'The Operating Expenses budget shown above does not account for any possible cost of personnel to manage fuel procurement. All materialsm—ld in Mis tlocumeniare the in[ellecWal propert Wi—dE—&—re p-d,dexclesivetytA Client Copyright®Wserveotl E—V. All rights reservetl. APPENDIX F 25-Year Economic Pro Forma WISEWOOD ENERGY • Technology in Service of Community and Environment ƒ w ; ! ; �\ -( \ I 27: & R® & - /, & _� / @ (¥% k #IM f R & R %§ / ¥ \§4 ; #k \ K . K \\ � IN ## ; # R;# ; #k \ ¥ 1. ; k \\ \ \\\ \ \1% \ \ � \ - ® N IQ + -- - - cli ! ` o IS o ; % y _ ) / o _ — — go o :w )4! k w �) ! _ \ APPENDIX G Preliminary Capital Cost Opinion WISEWOOD ENERGY • Technology in Service of Community and Environment Haines Borough Biomass District Energy W I S E W O O D ENERGY Capital Cost Opinion Summary Location Haines, AK Proposed System Biomass District Energy Contact Andrew Haden Client Contact Brad Ryan Proposed System Output (MBH) 1,706 Phone (503) 706-6187 Date 9/1/17 Proposed System Fuel Type Forestry Residuals Email and rew@wisewoodenergy.coi Est. Install Install Install Line °% Total Item Description Hours Equipment Materials Labor Total Project Construction Costs Site Prep and Excavation Included Included Included Included $ 38,000 1.5% Boiler Building, Fuel Storage, and Foundation 1,000 $ 2,000 $ 162,000 $ 125,000 $ 409,000 15.8% Biomass Boiler 330 $ 4,000 $ 187,500 $ 41,000 $ 233,000 9.0°% District Heating Piping 450 $ 4,000 $ 215,000 $ 57,000 $ 373,000 14.4% Interconnection to School and Pool 420 $ - $ 22,000 $ 53,000 $ 75,000 2.9% Interconnection to Administration and Library 430 $ $ 35,000 $ 53,000 $ 88,000 3.4°% Interconnection to Voc-Ed and Garage 130 $ $ 29,160 $ 16,750 $ 45,910 2.7% Backup Propane Boiler 140 $ 1,000 $ 43,000 $ 18,000 $ 62,000 2.4% Electrical 320 $ - $ 16,000 $ 40,000 $ 56,000 2.2°% Mechanical Contractor Travel and Per Diem $ 70,000 $ 70,000 2.7% Permitting $ 6,000 0.2% Freight $ 40,000 1.5°% Contingency and Unlisted Items $ 254,000 9.8% Subtotal Direct Costs 3,790 $ 7,000 $ 695,000 $ 544,000 $ 1,750,000 67.5% General Contractor Costs $ 350,000 13.5% Subtotal Construction Costs $ 2,100,000 81.0% Project Development Costs Engineering, Procurement, and Construction Management $ 283,000 10.9% Subtotal Development Costs $ 283,000 10.9% Alaska Bush Construction Cost Premium $ 210,000 8.1 % Total Capital Costs $ 2,593,000 100% Labor Rates $/Hour Mechanical contractor $ 125 Electrician $ 125 Engineering and Project Management $ 150 Finance and Accounting $ 200 All materials contained in this document are the intellectual property of Wisewood Energy and are provided exclusively to Client. 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