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Home My WebLink AboutAlatna Biomass Feasibility Study - Apr 2014 - REF Grant 7060933Alatna Village Biomass Heat Pre-Feasibility Study Prepared for Interior Regional Housing Authority April 25, 2014 Prepared by: Energy Action Wynne Auld With Support from: Alaska Energy Authority 1231 W. Northern Lights #578 Anchorage, AK 99503 www.energyaction.info Contents Acknowledgements ....................................................................................................................................... 1 Community Contact Information .................................................................................................................. 1 Summary of Findings..................................................................................................................................... 1 Statement of Purpose ................................................................................................................................... 1 Community & Facility Information................................................................................................................ 2 Site Control ................................................................................................................................................... 3 Permitting ..................................................................................................................................................... 3 Alternatives Considered ............................................................................................................................ 4 Heat Load & Biomass Requirements ............................................................................................................ 6 Capital & Operating Costs ............................................................................................................................. 7 Estimate of Probable Cost ......................................................................................................................... 7 Financial Analysis .......................................................................................................................................... 9 Financial Summary .................................................................................................................................... 9 Benefit/ Cost Model ................................................................................................................................ 10 Recommended Next Steps .......................................................................................................................... 11 Appendices .................................................................................................................................................. 11 Appendix A – Biomass Technology Appendix B -- Utility Receipts Appendix C -- Site Photos Acknowledgements Energy Action thanks the following representatives for their assistance with this assessment: Michelle Sam, 2nd Chief, Alatna Village Russell Snyder, Grants Coordinator, Interior Regional Housing Authority Steven J. Stassel, P.E., Gray Stassel Engineering Community Contact Information Alatna Village Contact: Michelle Sam, 2nd Chief PO Box 70, Allakaket, AK 99720 p. (907) 968 2261 f. (907) 968 2305 email: alatnatribe@yahoo.com Summary of Findings Community findings Facility findings Economic findings Recommendations Statement of Purpose Since 2008, the Alaskan Legislature has supported renewable electric and thermal energy projects through the Renewable Energy Grant Recommendation Program, administered by the Alaska Energy Authority. In Round 6 of the Program, the Interior Regional Housing Authority, which seeks opportunities to promote community self-sufficiency through community energy projects, received money to complete pre-feasibility studies of biomass heat in community buildings in seven villages. The following pre-feasibility study has been funded through that grant. Page 1 of 11 Community & Facility Information Alatna Village (population 26) is an Alaska Native village located on the north bank of the Koyukuk River, southwest of its junction with the Alatna River, approximately 190 air miles northwest of Fairbanks and 57 miles upriver from Hughes. Alatna Village is located directly across the River from Allakaket Village. In recent years, there has been no barge service. Imported goods and fuel are flown in to the Allakaket Village airport, then transported to Alatna Village by snow machine or boat. Occasionally an ice road is built between the communities. The Allakaket airport has a 4,000’ x 100’ gravel runway. Alatna Village depends on Allakaket Village for airport, postal, electric, and educational services. Alatna Village is governed by Alatna Village Council. Alatna Village Council owns and operates the project building, which is the Washateria/ Waterplant and Clinic (“Washateria”). This building was selected for pre-feasibility assessment because it is the largest heat load in the community. At the time of the meeting, the Washateria manager was not present. Fuel is purchased in Allakaket Village for $7.00 per gallon (See Appendix B). Delivery is by plane only. Additional transportation across the river, including labor, snow machine rental, and snow machine gas costs approximately $0.62 per gallon. These costs are well-documented in Quickbooks receipts. However, to be included as a fuel cost, these additional fuel transportation costs would need to be billed by the fuel vendor, in this case Allakaket Village Council. The total cost per gallon is approximately $7.62 per gallon. (See Appendix B) The current going rate for cordwood is $400 per cord. The Alatna Village Council office is primarily heated with wood, much of which is purchased from local residents. (Council meeting, personal conversation, February 4, 2013). Electricity is 82.85 cents per KWH, delivered by distribution lines from the AP&T power plant in Allakaket Village (See Appendix B). Alatna Village was relocated 2 miles downriver to its current location after the flood of 1994. All buildings are located on high ground. The Washateria was built in 2006. The approximately 2,300 sq. ft. building has two (2) fuel oil boilers and a solar hot water heater. The fuel oil boilers are Burnham V903A with 301,000 btu net output. The hi / lo setting is 180 d. / 160 d. F. The system is also equipped with an outdoor air reset. The Washateria boilers provide space heating, domestic hot water, and heat to the community’s potable water supply. In 2012, the Washateria used 2,315 gallons of fuel oil #1 (See Appendix B). Five zones deliver heat to various end uses, which include: dryers (2), building heat (2), and hot water generator (1). Hot water appliances include dryers, washers, faucets, cabinet unit heaters, unit heaters, baseboard piping and radiant panel. Additionally, there are valves for a future recovered heat connection on the boiler return lines, indicated in drawings and verified in the field. There are also available breakers in the panel. The project building is elevated off the ground. There is plenty of space on the south side of the Washateria, near the recovered heat valves, for a biomass project building. Page 2 of 11 Site Control The proposed project site, Lot 18 & 19 of Plat 2002-114 in the Fairbanks Recording District, is vested in “Village of Alatna.” Permitting Applicable project permitting is considered below: x The Alaska Department of Public Safety Division of Fire and Life Safety Firemarshall must approve the project plans before construction is started. Mechanical and electrical review is limited to that which is necessary to confirm compliance with fire and life safety requirements. x Commercial harvests associated with the project may or may not be required to comply with the Alaska Forest Practices and Resources Act. While most commercial operations are required to comply, commercial operations of minor or small scale are sometimes exempted. The Act addresses forest management along water bodies, erosion mitigation, and reforestation. x The 40CFR63 NESHAP Rule may apply to the project. The Rule does not apply to a hot water heater, which is defined in Subpart 6J as a boiler with a heat input capacity is less than 1.6 million Btu/hr and that does not generate steam. However, boilers using a combination of water and glycol should consult the EPA for case by case review of the project. x If State or Federal money is used to construct the project, the Alaska Department of Natural Resources Office of History and Archaeology, State Historic Preservation Office should review project plans to determine whether historic, prehistoric, or archaeological resources are likely to be affected. The Office also offers suggestions for to mitigate potential effects on resources. Page 3 of 11 Proposed Biomass System The proposed system is an 180,000 btu cordwood boiler with hydronic heat storage, to be located in a stand-alone project building on the south side of the Washateria. The proposed site is owned and controlled by Alatna Village, has sufficient space for the project, and offers good access to the Washateria’s mechanical room and existing supplemental heat valves. The project equipment must be suitable for delivery by plane. Contact was made with several air carriers to identify suitable aircraft for the project, including the ability to accommodate the project equipment and land at the Allakaket airport. Unfortunately, the requirement to deliver the project equipment by plane limits the size of the boiler. The project would be more cost effective with a boiler larger than the proposed 180,000 btu per hour. The project was modeled with the following assumptions: x Annual consumption of 2,315 gallons of fuel oil per year, 90% of which serves space heat load, 10% of which serves domestic hot water x 180,000 btu cordwood boiler with 980 gallons of water storage, delta T = 40°F x Maximum 4 firings per day, with additional heat demand served by oil. Each firing requires 20 minutes labor x Annual inflation o Biomass O&M and scheduled repairs – 1.5% o Cordwood – 1% o Oil O&M and scheduled repairs – 1.5% o Oil – 1.7%, according to average rate for project in ISER Round 7 model x Input prices, year 1 o Cordwood -- $400/cord o Oil -- $7.62/gal o Labor -- $24.25/ hr Alternatives Considered x The project could also heat the Alatna Village Council office, which uses about 700 gallons of fuel oil per year. However, this office already has a wood stove, and is located approximately 400’ away. This distance is considered too large to consider justify the additional capital and operating expense of integration with the biomass boiler facility. Page 4 of 11 Page 5of 11 Heat Load & Biomass Requirements FUEL ENERGY VALUES Gross btu/unit Net btu/unit Net boiler efficiency $/unit $/mmbtu (net) Oil (gal) 134,000 111,220 83% $ 7.62 68.51$ Biomass, 20% MC* (cord) 20,000,000 15,400,000 77% $ 400 25.97$ *MC is Moisture Content. Moisture in biomass fuel evaporates and absorbs energy in combustion, thereby decreasing the net energy value of the fuel. CURRENT ANNUAL FUEL USE & COST Facility Fuel Type Ave. Use $ / gal Annual Fuel Cost Washateria Fuel oil (gal) 2,315 7.62$ 17,640$ Total 2,315 17,640$ PROJECTED ANNUAL FUEL USE & COST, BIOMASS PROJECT Facility Fuel Type Ave. Use Cost $ / unit Annual Fuel Cost Washateria Biomass (cords, 20% MC) 19 400$ 7,600$ Washateria Fuel oil supplement (gal)* 131 7.62$ 1,001$ Total $ 8,601 * Fuel oil offset = 94% OPERATING REQUIREMENTS Facility Labor / hr Annual Biomass O&M Cost Washateria 24.25$ 7,098$ 878 Biomass Firings / yr Page 6 of 11 Capital & Operating Costs Estimate of Probable Cost Forced Account Summary Site & Foundation Work $12,171 Biomass boiler building $50,432 Biomass heat system $62,020 End-user building integration $12,918 Miscellaneous $6,000 Overhead $17,802 Freight $45,604 CONSTRUCTION SUB-TOTAL $206,948 Design & Construction Admin $16,000 Construction Management $18,000 PROJECT SUB-TOTAL $240,948 Contingency @ 20% $48,190 Admin @ 4% $9,638 TOTAL PROJECT COST $298,775 Page 7 of 11 Forced Account Detail ITEM QUAN UNIT UNIT MATL UNIT LAB LAB LABOR CONTR FREIGHT TOTAL UNIT TOTAL COST COST HRS HRS RATE COST COST COST COST WT WT(#) SITE & FOUNDATION WORK Site prep (layout, excavation, backfill, compaction, grading) 1 lump $5,000 $5,000 0.00 0 Rigid Insulation (2"x24"x96") 19 ea. $15.00 $285 0.25 4.75 $95 $451 $736 1.00 19 Concrete footing (8" deep x 12" spread) 3.5 cu.yd. $525.00 $1,838 2 7.0 $95 $665 $2,503 125 438 Concrete foundation 5.5 cu.yd. $525.00 $2,888 2 11.0 $95 $1,045 $3,933 125 688 BIOMASS BOILER BUILDING Sill plate - 2" x 6" x 16" PT 5 ea. $20 $100 0.75 2 $95 $190 $290 51 255 SIP exterior walls -- 4' x 10' pkg R-value 6.5 18 ea. $500 $9,000 8.8 158 $95 $15,048 $24,048 4 72 SIP roof -- 4' x 10' pkg R-value 6.5 11 ea. $500 $5,500 1.2 11 $95 $1,045 $6,545 4 44 SIP fasteners / hardware / framing anchors 1 lump $400 $400 0 0 $95 $0 $400 500 500 SIP caulk, sealant, expanding foam 1 lump $250 $250 20 20 $95 $1,900 $2,150 150 150 Roof, Metal -- 3' x 10' Delta rib roofing 15 ea. $37 $555 1.0 15 $95 $1,425 $1,980 96 1440 Siding, Metal, plus trim -- 3' x 10' Delta rib roofing 24 ea. $37 $888 1.0 24 $95 $2,280 $3,168 96 2304 Fasteners 1 lump $250 $250 0 0 $95 $0 $250 100 100 Windows 1 ea. $250 $250 1.5 2 $95 $143 $393 75 75 Man-door w/ hardware 1 lump $275 $275 3.0 3 $95 $285 $560 75 75 Overhead garage door 1 lump $1,000 $1,000 6 6 $95 $570 $1,570 250 250 Drywall -- 4' x 10' 25 ea. $20 $500 0.33 8 $95 $784 $1,284 50 1250 Interior paint -- 5 gal 1 ea. $40 $40 4 4 $95 $380 $420 42 42 Fire protection 1 lump $200 $200 0.25 0 $100 $25 $225 5 5 Wood storage shed 200 sq ft $12 $2,400 0.25 50 $95 $4,750 $7,150 12 2400 BIOMASS HEAT SYSTEM Boiler -- GARN Jr. or equivalent 1 ea. $11,000 $11,000 16 16 $95 $1,520 $12,520 2200 2200 Pipe/Valves/Ftgs/Gauges 1 lump $5,000 $5,000 54 54 $100 $5,400 $10,400 800 800 Circ pump 2 ea. $2,000 $4,000 3 6 $100 $600 $4,600 60 120 Plate HXR, ( 300 MBh @ 20F) 1 ea. $2,500 $2,500 8 8 $100 $800 $3,300 250 250 Toyostove 1 ea.$2,500 $2,500 4 4 $95 $380 $2,880 250 250 Misc Strut & Pipe Hangers 1 lump $1,000 $1,000 18 18 $95 $1,710 $2,710 500 500 Tank Insulation 1 lump $1,200 $1,200 3 3 $95 $285 $1,485 50 50 Stack -- 6" dia double wall UL listed + supporting infrastructure 1 lump $2,770 $2,770 4.00 4 $95 $380 $3,150 3.8 4 Ventilation 1 lump $500 $500 5 5 $95 $475 $975 50 50 BTU meter 0 ea. $2,500 $0 18 0 $95 $0 $0 0 0 Electrical 1 lump $10,000 $10,000 100 100 $100 $10,000 $20,000 750 750 INTEGRATION Insulpex -- 1 1/2" pre insulated PEX 100 lf $55 $5,500 0.08 8 $95 $713 $6,213 35 3500 PEX accessories -- 1 lump $500 $500 4.00 4 $95 $380 $880 200 200 Pipe penetration exclosure 1 lump $1,250 $1,250 5 5 $95 $475 $1,725 200 200 Temp controls 1 lump $750 $750 8 8 $100 $800 $1,550 200 200 Electrical work 1 lump $1,250 $1,250 13 13 $100 $1,300 $2,550 200 200 MISCELLANEOUS Misc Hardware 1 lump $2,500 $2,500 0 0 $95 $0 $2,500 500 500 Misc Tools & Safety Gear 1 lump $1,500 $1,500 0 0 $95 $0 $1,500 1446 1446 Consumables, Gases, Etc. 1 lump $2,000 $2,000 0 0 $95 $0 $2,000 1500 1500 OVERHEAD ROW Legal Work 0 lump $0 $0 0 Rent Heavy Equip 1 lump $1,500 $1,500 0 Misc Tool Rent 1 lump $1,250 $1,250 0 Commission System & Training 20 hr 1 20 $90 $1,800 $1,800 0 Superintendent Overhd Off-Site 40 hr 1 40 $90 $3,600 $3,600 0 Superintendent Overhd On-Site 40 hr 1 40 $90 $3,600 $3,600 0 Crew Travel Time 10 hr 1 10 $90 $900 $900 0 Crew Airfares 2 trips $350 $700 $700 0 Crew Per Diem 35 mn.dy. $42 $1,452 $1,452 0 Housing Rent 2 mo. $1,500 $3,000 $3,000 0 FREIGHT 22,825 Ground Freight 2200 lb. $1.24 $2,733 Air Freight 22825 lb. $1.40 $31,871 Air Freight Tool Mob & Demob 2 lump $2,500 $5,000 Misc Small Freight & Gold Streaks 1 lump $6,000 $6,000 CONSTRUCTION SUB-TOTAL $82,338 692 $66,103 $12,902 $45,604 $206,948 Engineering (Design & CCA) 1 lump $16,000 Construction Management 1 lump $18,000 PROJECT SUB-TOTAL $82,338 $66,103 46,902$ $45,604 $240,948 Contingency 20 %$48,190 Admin Fee 4%$9,638 CONSTRUCTION TOTAL $298,775 Page 8 of 11 Financial Analysis Financial Summary The project is considered financially //// at this time, with a Benefit / Cost ratio of //// x B/C: /// x Simple Payback Period: /// x Net present value: /// Page 9 of 11 Benefit/ Cost Model The following model was designed by University of Alaska Anchorage Institute of Social and Economic Research, for use by the Alaska Energy Authority. The model has been completed by the consultant, according to the aforementioned assumptions. /////// Page 10 of 11 Recommended Next Steps ////// Appendices Appendix A – Biomass Technology Appendix B -- Utility Receipts Appendix C -- Site Photos Page 11 of 11