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Home My WebLink AboutBiomass Feas. Studies Public Fac. Interior Allakaket Village 2014 REF Grant 7060933 Allakaket 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 ....................................................................................................................................... 3 Community Contact Information .................................................................................................................. 3 Summary of Findings..................................................................................................................................... 3 Statement of Purpose ................................................................................................................................... 3 Community & Facility Information................................................................................................................ 4 Site Control ................................................................................................................................................... 5 Permitting ..................................................................................................................................................... 5 Alternatives Considered ............................................................................................................................ 6 Heat Load & Biomass Requirements ............................................................................................................ 7 Capital & Operating Costs ............................................................................................................................. 8 Estimate of Probable Cost ......................................................................................................................... 8 Financial Analysis ........................................................................................................................................ 10 Financial Summary .................................................................................................................................. 10 Benefit / Cost Model ............................................................................................................................... 11 Recommended Next Steps .......................................................................................................................... 12 Appendices .................................................................................................................................................. 12 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: Melanie Wholecheese, Interim Tribal Administrator, Allakaket Village Gale Bourne, Director of Facilities & Maintenance, Yukon-Koyukuk School District Dave Bishop, Principal, Allakaket School Russell Snyder, Grants Coordinator, Interior Regional Housing Authority Steven J. Stassel, P.E., Gray Stassel Engineering Community Contact Information Allakaket Village PO Box 50, Allakaket, AK 99720 p. (907) 968 2237 f. (907) 968 2233 email: n/a Yukon-Koyukuk School District Gale Bourne, Director of Facilities & Maintenance email: gbourne@yksd.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 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 3 of 12 Community & Facility Information Allakaket Village (population 105) is an Alaska Native Village located on the south bank of the Koyukuk River, southwest of its junction with the Alatna River, approximately 190 air miles northwest of Fairbanks. Allakaket Village also provides the airport, electric utility, postal services, and school services to Alatna Village (population 26), which is located directly across the River. The Yukon-Koyukuk School District (“YKSD”) will construct a new school in Allakaket in 5 – 10 years. This new school is the project building, as explained below. YKSD is managed by a Superintendent and Board of Education. The current Director of Facilities & Maintenance is Gale Bourne. YKSD purchases fuel oil in Allakaket for $5.69 per gallon. Delivery is by plane only. The current going rate for cordwood is $400 per cord (Allakaket Village Council meeting, personal conversation, February 5, 2013). The Allakaket Village Council and City of Allakaket offices both contain wood stoves, which are actively used for heating. Electricity averages 92 cents per KWH (email correspondence, Gale Bourne, February 11, 2014). Much of the town, including the existing Allakaket School, is below the 100 year flood mark of 497’, but new houses are generally constructed on high ground in the New Allakaket Subdivision. YKSD Facilities & Maintenance Director Gale Bourne indicated that the Allakaket School building is scheduled to be replaced in 5 – 10 years. Additionally, Mr. Bourne expressed that he is interested in a biomass energy project that meets the following standards: • Lower cost per btu than oil • No increased maintenance costs • No inherent risk that is out of YKSD’s ability to control It appears that a heat sales project, owned and operated by a third party, which is separate from the School’s energy system, may satisfy Mr. Bourne’s interest. However, the interest of a 3rd party to own and operate such a system remains to be determined, as discussed in the Conclusions section of this report. The project building is a future school. This building will have the largest heat load in the community, and new construction will offer the potential to minimize project costs by through simultaneous construction of the new school and biomass project. This biomass pre-feasibility assessment will include integration into a hydronic heat system designed to use warm water (120° F -- 155° F). The existing Allakaket School uses about 14,500 gallons of fuel oil per year (email correspondence, Gale Bourne, February 11, 2014).The biomass project will be modeled to partially offset the fuel oil consumption of a building with a similar heat demand. Several buildings were considered not suitable for biomass energy assessment, including the Tribal office, City office, and Washateria. The Tribal office and City office have relatively low fuel oil consumption (<1,200 gal/ yr), and already have cordwood stoves operating. The Washateria fuel oil consumption (1,160 gal/ yr) is too low to justify evaluation for biomass heat. The Washateria benefits from recovered heat from the nearby AP&T power plant. Page 4 of 12 Site Control The proposed biomass project is hypothetical, and no project location has been determined. Site control has not been evaluated for this project. Permitting Applicable project permitting is considered below: • 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. • 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. • 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. • 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 5 of 12 Proposed Biomass System The new building is likely to have a peak load in excess of 600,000 btu/hr. However, the wood resource and the expressed concern about maintenance of a biomass system suggest that a relatively small boiler may be better suited to a biomass project at the Allakaket School. The proposed system is one (1) 180,000 btu cordwood boiler. The project boiler must be suitable for delivery by plane. Contact was made with several air carriers to identify suitable aircraft for the project and ensure compatibility with the Allakaket airport runway. The project was modeled with the following assumptions: • Current annual consumption of 14,500 gallons of fuel oil per year, 95% of which serves space heat load, 5% of which serves domestic hot water • One (1) 180,000 btu cordwood boilers with 980 gallons of storage total, delta T = 80°F • Maximum 4 firings per day, with additional heat demand served by oil. Each firing requires 20 minutes labor • 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 • Input prices, year 1 o Cordwood -- $400/ cord o Oil -- $5.69/ gal o Labor -- $24.25/ hr Alternatives Considered There were no alternatives considered for this project. Page 6 of 12 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% $ 5.69 51.16$ 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 School (new)Fuel oil (gal)14,500 5.69$ 82,505$ Total 14,500 82,505$ PROJECTED ANNUAL FUEL USE & COST, BIOMASS PROJECT Facility Fuel Type Ave. Use Cost $ / unit Annual Fuel Cost School (new)Biomass (cords, 20% MC)51 400$ 20,400$ School (new)Fuel oil supplement (gal)*8,639 5.69$ 49,155$ Total $ 69,555 * Fuel oil offset =40% OPERATING REQUIREMENTS Facility Labor / hr Annual Biomass O&M Cost School (new)24.25$ 9,678$ 1,197 Biomass Firings / yr Page 7 of 12 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 $42,807 CONSTRUCTION SUB-TOTAL $204,150 Design & Construction Admin $16,000 Construction Management $18,000 PROJECT SUB-TOTAL $238,150 Contingency @ 20%$47,630 Admin @ 4%$9,526 TOTAL PROJECT COST $295,306 Page 8 of 12 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 20" 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 0 $100 $25 $225 150 150 Wood storage shed 200 sq ft $12 $2,400 0.25 50 $95 $4,750 $7,150 12 2400 BIOMASS HEAT SYSTEM Boiler -- GARN 1000 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 22,970 Ground Freight 2,200 lb.$1.24 $2,733 Air Freight 22,970 lb.$1.40 $32,074 Air Freight Tool Mob & Demob 2 lump $2,500 $5,000 Misc Small Freight & Gold Streaks 1 lump $3,000 $3,000 CONSTRUCTION SUB-TOTAL $82,338 692 $66,103 $12,902 $42,807 $204,150 Engineering (Design & CCA)1 lump $16,000 Construction Management 1 lump $18,000 PROJECT SUB-TOTAL $82,338 $66,103 46,902$ $42,807 $238,150 Contingency 20 %$47,630 Admin Fee 4 %$9,526 CONSTRUCTION TOTAL $295,306 Page 9 of 12 Financial Analysis Financial Summary The project is considered financially //// at this time, with a Benefit / Cost ratio of //// • B/C: /// • Simple Payback Period: /// • Net present value: /// Page 10 of 12 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 11 of 12 Recommended Next Steps ////// Appendices Appendix A – Biomass Technology Appendix B -- Utility Receipts Appendix C -- Site Photos Page 12 of 12