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HomeMy WebLinkAboutHuslia Traditional Council - Huslia Water System & Clinic Wood Boiler Report - Jan 2018 - REF Grant 7060927Alaska Renewable Energy Fund: Round 5 821 Huslia Water System & Clinic Wood Boiler Project Huslia Traditional Council Construction Design Proposer: Proposed Project Phase: App # BiomassResource: PlentovichAEA Program Manager:Applicant Type:Government Entity Project Description The project will design and construct a manual cordwood wood energy system in the community of Huslia, Alaska. The wood energy system will provide heat for the community water plant, washeteria and health clinic. The project is projected to save approximately $41,516 annually in fuel costs for the three facilities out of a total fuel expenditure of $30,416/year. The water plant and washeteria are co-located and are adjacent to the health clinic. All three facilities will be served by a common wood-fired heating plant consisting of two Gam WHS 2000 boilers and a fuel storage building. The biomass resource will be purchased from residents of the community by the Huslia Traditional Council. AEA Review Comments and Recommendation The Huslia Traditional Council in collaboration with ANTHC and IHRA is proposing the design and construction of a biomass heating system for the water treatment facility and the clinic. The project is estimated to replace 21,736 gallons of fuel oil. The water treatment plant operator will be responsible for the operation and maintenance of the wood heating system. The project will use approximately 254 cords per year AEA has the following concerns about the proposal: 1. The application mentions that current residents supply cordwood for $350 per cord, but there is no mention of letters of intent to supply the wood resource. 2. There is no mention of a wood inventory analysis to guarantee a sustainable wood supply. State Forestry notes that land availability for harvest is not established. 3. Although a reconnaissance assessment has been prepared, there is not a comprehensive feasibility assessment of fuel availability and project alternatives. Despite these concerns, economics appear favorable and AEA believes that partial funding is warranted to advance the project through final design. AEA will work with the grantee to ensure that building energy efficiency is addressed in conjunction with this project. Recommend partial funding of $50,000 for completion of feasibility and final design, including fuelwood inventory and supply plan with the requirement that AEA accept the feasibility report before funding is made available for final design. Partial Funding Requested Grant Funds:$398,331 $80,650 Total Potential Grant Amount:$478,981 Funding & Cost Yukon-Koyukuk/Upper Tanana Energy Region: Cost of Power:$0.52 /kWh Matched Funds Provided: $50,000AEA Funding Recommendation: Project Cost:$478,892 1/18/2012 1:37:15 PM Page Alaska Renewable Energy Fund: Round 5 821 Huslia Water System & Clinic Wood Boiler Project Huslia Traditional Council Construction Design Proposer: Proposed Project Phase: App # BiomassResource: PlentovichAEA Program Manager:Applicant Type:Government Entity Benefit/Cost Ratio (Applicant)Benefit/Cost Ratio (AEA) 0.910.89 4) Project Readiness (Max 5)2.00 5) Benefits (Max 15)2.88 6) Local Support (Max 5)4.00 7) Sustainability (Max 5)3.33 1) Cost of Energy (Max 35)22.75 2) Matching Resources (Max 15)9.75 3) Project Feasibility from Stage 2 (Max 20)8.90 Stage 3 Scoring Summary Criterion (Weight)Score Economic Analysis Overall Rank (out of 41)Stage 3 Total Score (out of 100) Scoring & Project Rank 53.61 18 DNR/DGGS General Comments (permanent construction sites and potential geohazards) DNR/DMLW Feasibility Comments No permits or easements required for the construction of the actual facility. DNR/DGGS Geohazards Comments ***See general DGGS comment on hazards. All projects proposing the development of permanent structures should conduct a geotechnical site survey to determine the potential detrimental effects from natural hazards such as flooding, earthquakes, active faults, tsunamis, landslides, volcanoes, liquefaction, subsidence, storm surges, ice movement, snow avalanches, and erosion, and incorporate appropriate measures to mitigate the risks. Projects may be required to perform a geohazards site survey as a condition of receiving construction permits, depending on location of proposed site. DNR/DGGS Feasibility Comments DNR/DOF Feasibility Comments The resource supply analysis for Huslia’s two Garn boiler system would identify specific areas to be harvested and utilize Tanana Chiefs Conference Forestry Program’s GIS system along with other existing regional forestry and Native allotment inventories conducted Tanana Chiefs Conference Forestry Program and others. A preliminary feasibility assessment prepared by the Juneau Economic Development Council confirms that driftwood can be a significant source of wood. This project will require approximately 254 cords of fuel wood which equals about 125 cords per year for each Garn unit to displace approximately 21,736 gallons of #1 fuel oil. This resource supply analysis would assist in determining if Huslia has sufficient accessible harvest areas. 1/18/2012 1:37:15 PM Page