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Home My WebLink AboutKluti-Kaah biomass 2019TKN ALASKA ENERGY AUTHORITY January 14,2019 United States Department of Agriculture U.S.Forest Service RE:Support for Biomass Boiler design To Whom It May Concern: Alaska Energy Authority's mission is to reduce the cost of energy in the State of Alaska.As part of the State of Alaska Department of Community,Commerce,and Economic Development,AEA understands that a biomass heating system can act as an impetus to drive economic vitality ina community.This letter is in support of the Native Village of Kluti-Kaah's application for a wood innovations grant for the design ofan appropriately sized wood boiler system for key community buildings. This community has long desired to build a woody biomass energy system to help the Tribe utilize their local resources.The Traditional Council has been collaborating with various entities to plan for resource management and utilization.This crucial step,alongside a mature desire to develop their woody biomass resource,is key to the success of any woody biomass energy system. |appreciate the interest the Native Village of Kluti-Kaah has shown in biomass energy and look forward to working with them to design and develop a woody biomass energy system in the community.Please feel free to contact me should any questions about our support for this project arise.: Sincerely,on _ Dan Smith Project Manager 813 West Northern Lights Boulevard,Anchorage,Alaska 99503 |P 907.771.3000 |Toll Free 888.300.8534 |F 907.771.3044 |WWW.AKENERGYAUTHORITY.ORG REDUCING THE COST OF ENERGY IN ALASKA Elim Trip Report Date:April 24,2018 Attendees:Devany Plentovich and Jeremy Douse Key Contacts:Christine Amaktoolik,Administrator,cityofelim@yahoo.com,(907)890-3441 Roy Daniels,Water Plant/Biomass Operator,elimroy2@gmail.com,907-880-1091 Jeremy Douse,a forester with Tanana Chiefs Conference,and Devany Plentovich with Alaska Energy Authority traveled to Elim on Thursday,March 29,2018 to review the operation of the biomass heating system and the wood harvest supply system.A Garn boiler constructed in a connex was installed at the Elim water treatment plant in 2011 -2012 and has been operational since the 2012 fall heating season. Executive Summary The wood harvesters are doing a good Job with the cordwood harvest for the boiler at the water treatment plant.The FRPA scoring was 100%!There are no sustainability concems with this level of harvest and there is a significant supply of standing dead spruce. The inspection of the boiler identified urgent maintenance needs that are summarized in the list below. Dave Frederick,the Alaska Garn Boiler representative,will develop a parts list and cost estimated of the maintenance items referenced in this report: 1.Purchase and install a replacement secondary reaction chamber. 2.Per the water testing results -drain the garn unit and replace the water at the end of this heating season.The fill water must be treated with 7.5 to 8.5 gallons of CLT-350.This can be ordered from Dave Frederick. 3.Install a ventilation fan in each side of the connex to reduce the amount of moisture and condensation in the unit. 4.Replace the batt insulation with board insulation over the boiler unit.This will improve the safety and ease of water sampling and will increase the life of the insulation. 5.Contact Dave Frederick,the state of Alaska Garn representation,and purchase a replacement controller for the combustion fan control unit.Replace the controller. 6.(tis critical that water samples be sent to Precision Testing in late August and in February of each year.Without water testing and water treatment,the Garn boiler can rust through in just a few years. Garn Boiler System Inspection -Devany Plentovich The heat exchanger tubes should be cleaned this summer.Brushes and rods were shipped with the boiler and will be required to complete the work.A video of this operation was included on the thumb drive that was left with the City Administrator.This activity requires a set of replacement gaskets that can be purchased from Dave Frederick. Devany toured the water treatment plant with Roy Daniels,the water plant and biomass boiler operator.The Garn boiler connex is located outside of the water plant with pre-insulated pipes connecting to the heating loop within the water plant.Wood storage is located outside of the connex in 2 wooden bins.Up to a week's worth of wood is staged in the connex.The boiler systems uses approximately 50 cords of wood per year and the City of Elim pays $250/cord. The biomass system is operating as it was designed.The operator stokes the boiler 2 to 3 times per day and the only diesel usages occurs at night.The operator documents critical supply and return temperatures daily. t' i ;'i - Rae aeandes1hehereetisHid :.¢ Figure 1 -Biomass Boiler connex located outside of the water treatment piant. Figure 3 -Additional Wood Storage in the boiler connex. oy oN a2!1227884Se a] 4 4 ; T. L - af a:onan Figure 4 -Daily Operator Log A maintenance inspection revealed the following findings: The condition of the connex is deteriorating due to moisture and condensation in the storage unit. There are significant amounts of rust and rot on the floor,walls and ceiling on the operator side of the connex.The ceiling above the boiler unit was dripping condensate onto the insulation.The insulation above the boiler was waterlogged and no longer covering the boiler.The operator reported that insulation is frequently getting into the boiler and plugging the filters and pumps. Both door knobs to the connex are broken. Figure 6 -Condensation on the ceiling over the boiler unit. <3 h Rides Laeae kee taepiSspees; Bey SISOP ae ee a'hie |ay a aD A sy pee tee AL 7 Awe Tee,fe :*.we CR aa ceeaete Figure 7 -Deterioration of the insulation over the boiler unit.This area needs improved access for water sampling and inspections The operator reported that water testing has not been performed on the boiler and was not interested in taking a sample.Devany took a water sample from the manway at the top of the boiler and inspected the interior of the boiler.There was no apparent buildup in the boiler.Due to the deteriorated condition of the insulation,there are opportunities to improve the safe access for water testing.The batt insulation should be replaced with a rigid insulation for improved safe access and inspection. The results of the water testing included in this report.It is recommended that the boiler bwew drained this summer and replaced with fresh water.The fill water must be treated with 7.5 to 8.5 gallons of CLT- 350. The heat exchanger tubes have never been cleaned.The boiler was relatively free from creosote due to burning very dry wocd,but the heat exchanges tubes should be cleaned this summer. The door seal was in acceptable condition and the operator was shown how to adjust the seal by slightly turning the seal support in a counter clock-wise direction. Figure 8 -The door seal is in acceptable condition. An inspection of the combustion chamber showed refractory bricks and mat in suitable condition and no damage to the air collar.The secondary reaction chamber is no longer installed in the unit.The secondary reaction chamber Is critical to the proper combustion and efficiency of the boiler unit and MUST BE REPLACED. Figure 9 -The secondary reaction chamber has been removed from the unit and must be replaced. Roy reported that the transformer in the combustion fan controller has failed.He is able to manually run the fan with an extension cord bypassing the controller.This is most likely a controller failure that has been soon on a few other units.This controller should be replaced.stageoe)Pw we,fen ae ae Oe -¢pectSewwea°Figure 10 -Extension cord by passing the combustion air controller. Dave Frederick will develop a recommended parts list with prices for all of the maintenance items and forward to the City Administrator. Summary of Recommendations: 7.Purchase and install a replacement secondary reaction chamber. 8.Per the water testing results -drain the garn unit and replace the water at the end of this heating season.The fill water must be treated with 7.5 to 8.5 gallons of CLT-350.This can be ordered from Dave Frederick. 9.Install a ventilation fan in each side of the connex to reduce the amount of moisture and condensation in the unit. 10.Replace the batt insulation with board insulation over the boiler unit.This will improve the safety and ease of water sampling and will increase the life of the insulation. 11.Contact Dave Frederick,the state of Alaska Garn representation,and purchase a replacement controller for the combustion fan control unit.Replace the controller. 12.It is critical that water samples be sent to Precision Testing in late August and in February of each year.Without water testing and water treatment,the Garn boiler can rust through in just a few years. 13.The heat exchanger tubes should be cleaned this summer.Brushes and rods were shipped with the boiler and will be required to complete the work.A video of this operation was included on the thumb drive that was left with the City Administrator.This activity requires a set of replacement gaskets that can be purchased from Dave Frederick. Biomass Harvest Evaluation Report for Elim Alaska -Jeremy Douse On March 29",Tanana Chiefs Conference Forestry accompanied Alaska Energy Authority to review the biomass harvest and garn boiler operations in Elim Alaska.This report is meant to fulfill the requirements of the contract between Tanana Chiefs Conference and the Alaska Division of Forestry for Elim's biomass harvest inspection. I.Introduction The city of Elim is paying local wood cutters to deliver firewood in support of the Garn boiler that is providing heat to the water treatment facility.The price woodcutters is getting is $250.00 per cord. There is a bin located outside the wood storage facility that measures a cord to ensure it's the accurate amount of wood.Harvest of wood occurs to support one Garn boiler that heats the water treatment facility.About 48 cords are needed annually which is below the FRPA threshold of 100 cords for region Ill.However,a general inspection of the harvest operations and a FRPA compliance scoresheet was filled out on Elim's harvest operations.Unfortunately only one wood cutter was available at the time of the site visit but his operation was representative of the other wood cutters operations. I.Current Forest Condition The forest type above Elim is open grown white spruce pole and small saw timber.It appears that a bark beetle infestation occurred in the recent past because large patches of dead standing spruce.Not every stem is affected in these patches but a large amount of dead standing spruce exists.This makes for a lot of dry wood within easy reach of Elim.2011 aerial forest health surveys show that spruce bark beetle (Dendroctonus rufipennis)was found in the area but this infestation appears older than that.The bark on most of the affected stems is loose and easily removed. Robe«DA So Figure 1:Multiple dead standing stems exist in the forest above Elim.It appears that an old Spruce Bark Beetle infestation occurred here. Il,Current Harvest The land is owned by the Elim Native Corporation.They have not identified specific locations where wood is to be cut but everyone is cutting the dead standing spruce for personal use or to sell to the city. There is such an abundance of dead standing spruce that the city will not buy green wood.advLanae4Rad+Me:ekVeetieeeOYEayte8. ,iThere are about 8 local wood cutters delivering wood to the water treatment facility.Each woodcutter is working in their own areas or "woodlots”however,all }woodiots are located in the hills just to the north and northwest of town.Total volume that is used annually is about 48 cords.All the cutting is taking place in the winter months and material is being hauled into town on snowmachines using existing Snowmachine trails.No new roads,skid trails or drainage structures are being constructed to support this biomass project. IV.FRPA Inspection During the harvest evaluation a FRPA best management practice inspection was completed for one of the eight wood cutters operation (see attachment).While only one woodcutter was available duringFigure2:The beetle infestation appears to have occurred over 10 years ago.The bark is loose and easy to pull off the stems.the site visit,he mentioned that all the wood cutters are harvesting in the same fashion as him.All management practices on his operation scored a 5 ora "N.A.”.There is no riparian buffers or surface waters that are being impacted by this harvest.The final score of the operation that was visited was 100%. Vv.Sustainability There is no concern with the sustainability of this type of harvesting.They are salvaging dead wood which has the added benefit of reducing fuel loading near the village.There is an abundance of dead standing wood in the hills north of Elim and this type of harvesting will support the biomass facility for a while.In the future,if green wood is needed to support the biomass facility or if they need substantially more volume then recommendations on harvesting techniques as well as monitoring regeneration may be warranted. Vi.Concerns and Recommendations There was about 1 to 3 feet of snow on the ground during the site visit so it's not clear how grass Is affecting forest regeneration.It was also impossible to see how many small spruce seedlings existed in the understory but because they are only removing dead standing,residual stocking is likely not a concern. Wood cutters should avoid damaging residual stems during falling and hauling operations.This is a relatively open grown forest type so there is currently little damage.Also,if more volume is needed as a result of additional boilers being installed,the tribe may want to take a more active approach in managing harvest units.Delineating boundaries and cruising and marking stems to harvest would ensure the volume necessary for the garn boilers. The Elim Native Corporation may want to consider preparing a forest stewardship plan.This a cost share program funded by the US Forest Service and managed by the Alaska Division of Forestry managed for non-industrial private forest landowners.It helps landowners formulate their goals and objectives for their forest resource,develop mapping products and generally develop management guidelines for the timber and other non-timber resources. Elim Biomass Harvest Area nao&we tas e Seta "Grae RS ae aan ae!+4 a ee co Bt Ne cas *vee EA,ait ag Wx Ta vimenaen te SER ee on”Rash,rN oe,Fy ES Bae Ne oe be,Pe ah pete or ak hy PRO RS EE,SL EtLy &2teoeFRgeveyaevadTis,Rett ay Saye wag fate Cooks BeRPAmieeSTaesFa?sakes pies ae My woe ys ¥xyaeEPSY«ged1ee:anshheeweeeelettee7eosvgeas3hreneTee*aJOG,AgretiFOsl100,at feea 0 0.129.25 0.5 0.75 4 Miles Date:4-13-18 Lab Tech:LG Elim Water Treatment Plant P.O.Box 9 Elim Moses Point Road Elim,AK 99739 PrecisionChem LLC Professioaally Engineered Products &Services Phone:1-920-324-2007 Fax:1-920-324-4417 officeddprecistonchemic.com Chenical Analysis Control Limits (Goal) GARN Scrial # Tota]Hardness Candactivity/TDS 600 NA Chlorides "Pp”Alkalinity "M"Alkalinity Molybdate Nitrite (NO2/NaNO2)Less than 100 pH 9.78 Tron Fe Copper Cu Bio Test (Bacteria Fuepi Mold) Remarks/Recommendstions:_Dutreated system,-Kecoramud to Amin +clean ondHEADahd'chanical,_Keg us 5.7.9 te B.D callers a CLI-Ba0 te heply by ermal]OK fp,revs La hous Paceytreatleperhots piping bevel theLLAiGOUGeOT& "4a)ectra GORPORATION s GARN®WHS/ETS Bia PrecisionChem Sample Analysis Survey Name Chi WJ tt ly anidStreetaehaeecinveddioad Date 24]]gcityCMstareAKzip4GFBG Phone #{only used if we have a problem,etc.)ot 2WIO - 244 |2 "¢GARN®Model #GARN®Serial #bie Se"4 abel by blower mater) or FILL WATER sample (Please Circle One)(ve.anrented,pew weiter} Years in service:BS byw System volume (gallons):Z.0O 0 When was the system last drainea?:VL Currently treating with water treatment chemical?Y ax(1)(circle) Chemica]Name/Number/Manofacturer,ete.: Last add of chemical (approx.date):Dosage added: History Of;Sludge build-up (soft deposits)?(y)ap (circle if known)Broun Unusual}water color or smell?Y orf Hard scale deposits in system?Y or (s) Evidence of excessive corrosion/pitting?Y or & Chronic pump failures?'2 N "Ins hachionn,Wis grating Anode rods installed?fo N At Syston Frequent anode rod replacement?Y or needs g rep lacens. Please use the space below to list any information you think pertinent fo the sample analysis. oer Clim 6)yore com -Ch SHwebehh: Lr GARN®WATER SAMPLING INSTRUCTIONS To ensure accurate resulls end handling of your sampls please follow afl directions carefully. WHS/ETS 1}Fill out questionnaire as accurately as possible on the back of this paper.Add anyadditionalinformationorconcernsstthebottomofthepage.This information isvitalforfinalanalysisinterpretationandrecommendations.Incomplete formswilldelayyourtestwork.This includes your very first sample sent after Initial installation and start-yp.Our leb needs complete information,particularlyinformationaboutcurrentchemical!identification and dosages,Do not assume the lab tech will know what you have purchased through GARN or PrecisionChem and certainly not any past chemical providers. 2)Fill your included sample bottle FULL after rinsing with sample water,The sarople may be obtained from any part of the system (manbole,drain,etc.)as longasitisacleanrepresentativesample.We DO NOT want sludge,or other materials,ete.,in the sample.Our lab reserves the right to refuse analysis for samples deemed too dirty to effectively and accurately test. 3)Tighten cap firmly.4)Place the sample bottle in the provided ziplock bag.Seal the bag pushing the airoutsothatwhenfinishedthebaggedsamplefitsinthereturnmailerbox.The sample must be retumed in the provided box.No exceptions.5)Return this completed form to the mailer box.Make sure this paper isoutside ofyourbagged,sealed sample., 6)Remove the preprinted return label from your mailer box,Close and seal themailerboxwithtapeandaffixthereturnlabel.We recommend the US Mail astheleastexpensiveandbestcarriertogetyoursamplebacktous.When askedaboutthecontentsofthepackageindicatethatitis"a water sample".Samples can be sent safely ali year long. Results will be mailed to your address within 2-3 weeks of our receipt of your sample.The months of October and November may require additional time. Thank you, PrecisionChem Labs Alaskan Heat Technologies ()Estimate PO Box 93 :Date Estimate # Tok,AK 99780 (907)883-4328 5/2/2018 502181 Name /Address Elim,AK 99739 Project Description Qty Rate Total "|Water Treatment -2.5 gal pail 3 165.00 495.00 Estimated shipping for water treatment 1 300.00 300.00 "|Gasket Service Pack =Vertical 1 99.00 99.00 "Gasket Saver Kit 1 46.00 46.00 Digital Controller 1 436.00 436.00 V Reaction Chamber -set of 2 1 203.00 203.00 Manway Cover Gasket 1 19.00 19.00 V|#1 Split Fire Brick 12 9.00 108.00 4-1/2 X 9X 1-1/4 . Shipping for remaining parts 168.42 168.42 Total $1,874.42 612 W.Willoughby Ave.,Suite B P.O.Box 21989,Juneau,AK 99802 Phone (907)586-4360 www.seconference.org Email info@seconference.org SOUTHEAST ALASKA REGIONAL DEVELOPMENT ORGANIZATION instructor Contact List for Biomass Training Coffman Cove -March 2018 Karen Petersen Biomass Coordinator,Southeast Conference biomass@seconference.org Amanda Byrd Biomass Coordinator Alaska Center for Energy &Power agbyrd@alaska.edu (907)888-2516 (907)401-3234 Robert Venables Executive Director,Southeast Conference robert@seconference.org (907)723-0177 Dave Frederick Alaskan Heat Technologies,Inc. dave @alaskanheatingtechnologies.com Office:(907)883-4328DevanyPlentovichCell:(907)322-5201ProgramDirector,Alaska Energy Authority dplentovich@aidea.org Glen Holt (907)771-3004 Alaska Forestry &Habitat Services gsholt@gci.net (907)978-5001DanSmith Alaska Energy Authority DSmith@aidea.org (907)771-3983 Jonathan Fitzpatrick Southeast Island School District jfitzpatrick@sisd.orgRustyForeaker(907)828-8254Agronomist Horticulture Evaluations p:907.745.8092 f:907.746.1568 rusty.foreaker@alaska.gov Biomass train 1n4 Staten tS Community |Name Phone Email Chilkoot Nick Kokotovich {907-314-0733 4&2:|4v7-746-2323 "2"nkoko@chilkoot-nsn.gov Chilkoot Mike Binke 907-515-7779 907-766-2323 mbinkie@chilkoot-nsn.gov Hydaburg Carl Carlson 907-513-1254 carlcarlson73@gmail.com Hydabure==+808-464-3548 makario@hydaburg.k12.ak.us Hydaburg Ted Peele 907-401-3114 topeele48@yahoo.com Tanana Randall Brower 907-366-1055 rbrower@aktcsd.org Tanana Mike Ashton 907-305-0411 alaskaarcher@alaskan.com Minto Peter John 907-798-6008 907-798-7112 keith.charlie@tananchiefs.org Tanacross Kyle Allen 907-883-1165 907-505-0154 kyle.allen 11 @hotmail.com Tanacross ='|Trent Jonathan 907-699-2583 907-888-2663 907-883-5987 wttitpenatharise@ gmail.com Tazlina Noble Sherwood [907-290-4208 midaight welues 209 ¢meil comTazlinaTimPeteAvy923497 CatEman Dawe Mae'sé,FOo7 37 216SouteastTsladScloolotecekqo7-3SeowFt36 Yay 2F-AAT7 Ol teen @ Girwi\Loan ALASKA WOOD ENERGY TASK GROUP Tuesday November 15,2016 1:30pm to 4:30PM Location:AEA Conference Room Via ZOOM Join from PC,Mac,Linux,iOS or Android:https://zoom.us/j/137903916 Or iPhone one-tap (US Toll):+14086380968,13790391 6#or+16465588656,137903916# Or Telephone: Dial:+1 408 638 0968 (US Toll)or +1 646 558 8656 (US Toll) +1 855 880 1246 (US Toll Free) +1 877 369 0926 (US Toll Free) Meeting ID:137 903 916 International numbers available: https://zoom.us/zoomconference?m=g8SX G4njrelsHaLuzuyeahOf7ODT_C-H Or an H.323/SIP room system: H.323:162.255.37.11 (US West)or 162.255.36.11 (US East) Meeting ID:137 903 916 SIP:137903916@zoomerc.com Devany Plentovich (AEA),Charles Parker (AVI),Eric Geisler (BLM),Jeff Graham (SOA-DNR),Trevor (SOA-DNR),Renee Johnson(USDA),Jessie Huff (USDA),Dan Consenstein (Farm Service), (NRCS),Thomas Wolf (Denali Comm.),Dan Parrent (USFS),David Nichols (PNWRS),Robert Venables (SEC),Will Putnam (TCC),Shirley Kelly (EDA),Amanda Byrd (ACEP),Conor Reynolds(TNC),Shaina Kilcoyne (REAP),Bob Deering (USFS)4 Fbx ADOPTION OF AGENDA OLD BUSINESS 1.Update on this summer's Studies -Noatak -(done:Dan Smith) -Noorvik-(done:Dan Smith ) The following were all done by Coffman Engineering -Kiana -Port Heiden -Kodiak School District (2 schools Ouzinkie and Port Lions) NEW BUSINESS: 1.Current Applications:aa.)Fairbanks Northstar School District >b.)Gustavus -?probally ret Bob Dees "AX to Akeaverc.)Kalskag ?need more cabo,heed buy (A from Schoo |hestnee2.Discussion on outreach and applications! a.Priorities for the AWEDTG (do we want to change direction?) b.Funding Discussion on accepting applications that want to burn paper/municipal solid waste Jessie Huff USDA Paper and Cardboard to insulation in Hub communities Amanda Byrd update from Sydney and the Volter Installation Brian Hirsch &Mountain Village (?) .Wood Energy Conference (Biomass Handbook) NEXT MEETING: ADJOURNMENTNAARYW ooNone Kotzebue Barrow Ambler Alaska Wood Energy Development Task Force. Project Status @ Feasibility ©Construction "echalkyilsik ©Design ©Operating 0 100 200 300 Mi a ne " .)North?;D elta Junetfon Yakutat Venetie ©<Kobukl ™-+Shugnak a"Hughes Fort Yukon ©Huslia ounyukuk_Galena ulato oe.Opin e Ruby 'Tania on @ e@Nikglai eH McGrath Cpy AOS Talkeetna won Anchorage Kasilof ne ©PorGraham-Kokhanok-a en Projection:NAD_1883_Aleska_Albers Date Updated:8/13/2015 Updated By:AEA-Justin CrowtherFile:AWEDTG_Status_081315_6.5x11 Statement of Interest In Developing Wood-Fired Heating Projects Information from this form will be used in ranking your project for a pre-feasibility assessment that will be conducted by a contractor hired on behalf of the Alaska Wood Energy Task Group. Not all applications can be funded Electronic copies of this form can be downloaded from the Alaska Energy Authority website at http://www.akenergyauthority.org/biomasswoodenergygrants.html It is preferred that Statements of Interest are submitted electronically (via e-mail)but paper copies will be accepted via mail (no fax). Applicant:Fairbanks North Star Borough Eligibility: [X]Local Government []School []State Agency []Not-For-Profit Organization [}Federal Agency []Federally Recognized Tribe:[]ANCSA Corporation: []Other: []Commercial Enterprise (identify industry sector): Contact Name:Ben Loeffler Mailing Address: 1885 Marika Road City:|Fairbanks State:|AK Zip Code:|99709 Telephone:|459-1335 Fax: Email:|bloeffler@fnsb.us Please refer to Frequently asked Questions for more information on completing this Statement of Interest. Please respond to the following evaluation criteria:(Attach additional pages as necessary) 1.Please include a short paragraph on what your objectives are with this project. The Fairbanks North Star Borough (FNSB)seeks to engage with the Alaska Center for Energy and Power (ACEP)in a pilot project to examine the performance of a wood-fired hydronic boiler system at a borough-owned building.The objectives of the FNSB project will be similar to ACEP's Biomass Boiler Performance Evaluation Studies in Gulkana,Tanana and Delta Junction (for more information, please see:http://acep.uaf.edu/projects/biomass-boiler-performance-evaluation-study.aspx). As part of its Economic Development Strategy,the Fairbanks North Star Borough seeks to find new ways to provide affordable clean energy in the FNSB and surrounding regions.FNSB would like to create an opportunity to demonstrate biomass heat generation and increase utilization of local sustainable biomass energy resources. Questions 2-3 are specific to individual buildings.Applications can include more than one building.PLEASE SUBMIT A COPY OF THIS PAGE FOR EACH BUILDING Facility Identification/Name:_PEARL CREEK ELEMENTARY 2.Facility information Approximate size (square footage)of building 62,982 Type of construction (wood,cement,etc.)Steel/wood frame Age of building 1983 What is building used for?Elementary school Has building had a recent energy audit?2012 by AHFC What is the age of the current heating system?1983 What type of current heating system is in place? (Radiant,forced air,baseboard etc.) Oil fired boilers,fin tube,unit heaters, glycol air handlers 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 Annual fuel consumption (gallons)15,088 Cost of fuel per gallon $2.85 Cost of electricity per kWh 20 cents Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Facility Identification/Name:_WELLER ELEMENTARY 2.Facility information Approximate size (square footage)of building 65,259 Type of construction (wood,cement,etc.)Block/steel/wood frame Age of building 1983 What is building used for?Elementary school Has building had a recent energy audit?2012 by AHFC What is the age of the current heating system?1983 What type of current heating system is in place? (Radiant,forced air,baseboard etc.) Oil fired boilers,glycol air handlers,fin tube,unit heaters 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 Annual fuel consumption (gallons)11,583 Cost of fuel per gallon $2.83 Cost of electricity per kWh 20 cents Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Facility Identification/Name:TWO RIVERS ELEMENTARY 2.Facility information Approximate size (square footage)of building 22,200 Type of construction (wood,cement,etc.)Block/wood frame Age of building 1982 What is building used for?Elementary school Has building had a recent energy audit?2012 by AHFC What is the age of the current heating system?1982 What type of current heating system is in place? (Radiant,forced air,baseboard etc.) Oil fired boilers,glycol air handlers,fin tube,unit heaters 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 Annual fuel consumption (gallons)6,740 Cost of fuel per gallon $2.81 Cost of electricity per kWh 20 cents Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Facility Identification/Name:_SALCHA ELEMENTARY 2.Facility information Approximate size (square footage)of building 13,608 Type of construction (wood,cement,etc.)Wood frame Age of building 1963 What is building used for?Elementary school Has building had a recent energy audit?2012 by AHFC What is the age of the current heating system?1984 (Radiant,forced air,baseboard etc.) What type of current heating system is in place?Oil fired boilers,glycol air handlers,fin tube,unit heaters 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 Annual fuel consumption (gallons)4,858 Cost of fuel per gallon $2.80 Cost of electricity per kWh 20 cents Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Questions 4 -10 are general questions -answer only once per application -not required for every building. 4.Presence of high-hazard forest fuels Describe any forest fires or insect outbreaks in the past 5 years: e Discuss any activities to utilize dead/dying material: e Discuss any activities or programs that would mitigate the effects of future fires or infestations: Interior Alaska experiences annual wildfires that pose threats to FNSB communities.The forested areas around Fairbanks constitute a fire protection zone where active fire breaks and hazardous fuels reduction efforts are maintained.To the southeast,the 2012 Delta blow-down event created significant salvage areas,which pellet manufacturer Superior Pellets has a timber sale agreement in place to harvest. 5.Resource Issues e Where would you plan on getting wood from? e Discuss the ownership of nearby forest lands and any agreements there may be to harvest trees (live or dead)from those lands. e Discuss the extent and sustainability of local forest resources and wood supply: ®Discuss wildlife habitat or other forest health issues you may have: e Isthere aLAND MANAGEMENT PLAN in place for the area of wood source? e Doyou have access to other wood (i.e.drift wood,wood pellets,bio bricks etc.)? Boilers could be run on wood pellet or wood chip fuel purchased from Superior Pellet Fuels,LLC located between Fairbanks and North Pole.The Alaska Division of Forestry has a Forest Management Plan in place for the Tanana Valley State Forest (http://forestry.alaska.gov/management/tvsfmp).Maintenance of the Fairbanks fire protection zone produces biomass as part of hazardous fuels reduction efforts.The existing commercial lumber and firewood industry produces waste for conversion into wood pellet fuels. The local commercial wood pellet business,Superior Pellet Fuels,LLC has significant capacity. 6.Availability of local wood processing residues (e.g.,slabs,chips,bark,sawdust,shavings,etc.)- e List any known wood processors near your community.include owners'names and contact information. @ What do those processors currently do with their residues? Northland Wood Products is the borough's largest wood processing facility,and sells wood residue to Superior Pellet Fuels for processing into pellet logs.Northland is located at 4000 South Cushman St, Fairbanks,AK 99701 and their phone is 907.452.4000.Superior Pellet Fuels also processes raw timber from fire reduction and salvage harvests into pellets.Superior Pellets is located at 1595 Wescott Dr, North Pole,AK 99705 and their phone number is 907.488.6055. 7.Wood Fuel Availability «What type of woody biomass are you interested in for your system (pellets,chips, cordwood,etc) e Provide anticipated cost for the woody biomass planned on being used. FNSB is interested in considering both pellet and wood chip systems.Current commercial prices for wood pellets from Superior Pellet Fuels are $275 per bulk ton,which Superior Pellet Fuels equates to $19.60 per MMBTU in an 85%efficient boiler.They currently produce 3,000 tons annually,and have existing capacity to produce up to 35,000 tons annually.Wood chips are also available at $70.50/green ton spruce,$59.40/green ton other +delivery ($5/green ton). 8.Discuss community support/advocacy,or which agency will be the project champion for this project e Please tell us about your community advocate (or advocacy group) e Does your community have any other wood energy systems?If yes,please identify the system. e Have you had any meetings to discuss wood energy? The FNSB community has a long history of pursuing higher energy efficiency and lower cost sustainable energy.This community support is reflected in the initiatives of the local government to pursue energy projects in its facilities.FNSB has an active Stove Change-Out program to exchange inefficient wood stoves with high efficiency,low emissions units. The Borough employs an Energy Management Engineer dedicated to pursuing the FNSB's energy goals. The Energy Management Engineer is now jointly funded with the Alaska Center for Energy and Power (ACEP),providing an important link between ACEP's expertise and the Borough's energy initiatives.The Energy Management Engineer will work closely with ACEP's biomass experts to champion this project and communicate its impacts to the community. 9.Please provide a narrative or description on how you see this project being operated and maintained in your community. This project will build on existing FNSB Department of Public Works expertise in facilities operation and maintenance.The project will be overseen by the Energy Management Engineer as a showcase project for successful biomass energy utilization in the Borough.The system will be operated and maintained by professional FNSB maintenance crews. 10.Discuss what,if any,public benefit will result from this project. As the Fairbanks area works to improve its PM2.5 air quality issues,there is a lingering public association of biomass energy with inefficient pollution emitting wood stoves.This project offers the opportunity to publicly demonstrate the clean-burning high-efficiency operation of modern biomass boilers and the economic benefits of biomass energy compared to imported heating oil.Increased acceptance of wood pellet heating systems will have economic benefits both for the consumer,and the local wood pellet industry.Existing local pellet production has a capacity of 35,000 tons per year,well in excess of its current output of 3,000 tons per year.Future biomass heating may be integrated into recycling programs to compound the benefits of recycling efforts.Utilization of local sustainable energy resources will lessen the impact of future heating fuel price increases. The Borough looks highly on the integration of biomass heating and education curriculum demonstrated in Southeast Alaska,and sees similar potential for integrating biomass and greenhouse projects in its schools.Pearl Creek Farm currently has a student run garden that grows produce for both use in the school and sale to the community. 11.Please include any other information that should be considered for this project. Below is the FNSB analysis performed while selecting the candidate buildings.These four buildings offer a range of heating requirements that may be better suited to different size biomass systems.All have existing heating systems which are over 30 years old and due for replacement.Analysis is based on pellet fuel source,although chip fuels may prove more economical. School Pearl Creek |Weller |Two Rivers |Salcha Square Footage sqft 62,982 65,259 22,200 13,608 Annual Fuel gal/yr 15088 11583 6740 4858 Peak Month gal/mo 4500 3600 2000 1700 Peak Month MMBTU/mo 621 497 276 235 Peak Month Avg.Heating Rate BTU/hr 862,500 |690,000;383,333 |325,833 Fuel Cost S/gal $2.85 $2.83 $2.81 $2.80 Annual Fuel Energy MMBTU/yr 2082 1598 930 670 Annual Oil Cost S/yr $43,001 |$32,780 |$18,939 |$13,602 Oil Boiler Efficiency 80%80%80%80% MMBTU Delivered MMBTU/yr 1666 1279 744 536 Cost/MMBTU Delivered S/yr $25.82 $25.63 $25.45 $25.36 Heating EU!kBTU/saft 33 24 42 49 Heating ECI S/saft $0.68 $0.50 $0.85 $1.00 Wood Boiler Efficiency 85%85%85%85% Annual Pellets Required tons/yr 119 91 53 38 Annual Pellet Cost S/yr $32,661 |$25,074|$14,590 |$10,516 Expected Wood Cost $/MMBTU $19.61 $19.61 $19.61 $19.61 Expected Annual Savings $/yr $10,340 |$7,706 |$4,349 |$3,086 Return Statement of Interest to: Karen Petersen University of Alaska Cooperative Extension Service P.O.Box 19190 Thorne Bay,AK 99919 (907)821-2681 khpetersen@alaska.edu Statement of Interest In Developing Wood-Fired Heating Projects Information from this form will be used in ranking your project for a pre-feasibility assessment that will be conducted by a contractor hired on behalf of the Alaska Wood Energy Task Group. Not all applications can be funded Electronic copies of this form can be downloaded from the Alaska Energy Authority website at http://www.akenergyauthority.org/biomasswoodenergygrants.html It is preferred that Statements of Interest are submitted electronically (via e-mail)but paper copies will be accepted via mail (no fax). Applicant:|Gustavus Community Center []LocalGovernment []School []State Agency [X]Not-For-Profit Organization []Federal Agency []Federally Recognized Tribe: []ANCSA Corporation: []Other: []Commercial Enterprise (identify industry sector): Eligibility: Contact Name:|Sean Neilson PO Box 268 Mailing Address: City:|Gustavus State:|AK Zip Code:|99826 Telephone:|907 697 2140 Fax: Email:|seanneilson@gmail.com Please refer to Frequently asked Questions for more information on completing this Statement of Interest. Please respond to the following evaluation criteria:(Attach additional pages as necessary) 1.Please include a short paragraph on what your objectives are with this project. We are in the design phase of a 5000 square foot facility to be used as a community center. Our community has a surplus of cardboard and paper and we would like to turn that liability into a resource.We are seeking an affordable,efficient and sustainable solution to provide heat to our facility. Questions 2-3 are specific to individual buildings.Applications can include more than one building.PLEASE SUBMIT A COPY OF THIS PAGE FOR EACH BUILDING Facility Identification/Name:Gustavus Community Center (not yet built) 2.Facility information Approximate size (square footage)of building 5000 Type of construction (wood,cement,etc.)wood Age of building Not yet built What is building used for?Community center Has building had a recent energy audit?n/a What is the age of the current heating system?n/a What type of current heating system is in place?n/a (Radiant,forced air,baseboard etc.) 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc:)|n/a Annual fuel consumption (gallons)n/a Cost of fuel per gallon $4.00 Cost of electricity per kWh $.26 residential $.52 commercial Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Questions 4 -10 are general questions -answer only once per application -not required for every building. 4.Presence of high-hazard forest fuels Describe any forest fires or insect outbreaks in the past 5 years: e Discuss any activities to utilize dead/dying material:none e Discuss any activities or programs that would mitigate the effects of future fires or infestations:not a fire-prone region (SE AK) 5.Resource Issues e Where would you plan on getting wood from?We are hoping to use paper/cardboard ¢Discuss the ownership of nearby forest lands and any agreements there may be to harvest trees (live or dead)from those fands. We are surrounded by some Mental Trust lands an Federal lands managed by the NPS e Discuss the extent and sustainability of local forest resources and wood supply: It is unclear to us how we would harvest wood.Our objective is to utilize paper and cardboard,of which we have a great surplus that is currently being accepted at our Disposal and Recycling Center. e Discuss wildlife habitat or other forest health issues you may have: e Is there a LAND MANAGEMENT PLAN in place for the area of wood source? e Do you have access to other wood (i.e.drift wood,wood pellets,bio bricks etc.)?yes-our disposal and recycling center has paper and cardboard 6.Availability of local wood processing residues (e.g.,slabs,chips,bark,sawdust,shavings,etc.)- e List any known wood processors near your community.Include owners'names and contact information.Two individuals mill wood at fairly low levels. Vince Schafer 697-2292 Ernie King 697-2766 @ What do those processors currently do with their residues?They burn it as slash. 7.Wood Fuel Availability e What type of woody biomass are you interested in for your system (pellets,chips, cordwood,etc) Paper and cardboard e Provide anticipated cost for the woody biomass planned on being used. if we could use paper and cardboard,the only costs associated with this would be to transfer the product less than one mile between the Disposal and Recycling Center to the Community Center. There could be a low level of administrative costs associated with this transfer. 8.Discuss community support/advocacy,or which agency will be the project champion for this project ) e Please tell us about your community advocate (or advocacy group)The group would be the board of the Gustavus Community Center.This active group of volunteers would facilitate the acquisition and transfer of the paper products. ®Does your community have any other wood energy systems?If yes,please identify the system.No e Have you had any meetings to discuss wood energy? Yes,we have had one.We all agree that it possible,we would like to be able to use surplus paper products to heat our facility partially,or in full if feasible. 9.Please provide a narrative or description on how you see this project being operated and maintained in your community. Our community currently has a large surplus of paper and cardboard.We actually have to pay to dispose of it.Most of it has to be shipped away.Many households burn their cardboard and paper products in burn barrels rather than pay for disposal.If there was a technological way to convert this large,paper and cardboard surplus into BTU's,our community would embrace it. With the advent offree shipping services via online ordering,and cheaper freight from our relatively new ferry service,our paper and cardboard surplus has grown even further.There is no end in sight of this surplus-it seems like a sustainable and reliable resource for many years to come. 10.Discuss what,if any,public benefit will result from this project. People will save money by not having to pay to ship off their paper products.The Gustavus Disposal and Recycling center will not have to spend resources to facilitate the disposal (shipping it off)of paper and cardboard. 11.Please include any other information that should be considered for this project. Even if there is no technology that will allow us to burn solely paper products,perhaps there is a system that can accept multiple types of fuel,one of which would be paper and cardboard.Furthermore,this boiler could be used as a supplemental heat source to a more traditional heat source (i.e.stove oil, electric,etc) Return Statement of Interest to: Karen Petersen University of Alaska Cooperative Extension Service P.O.Box 19190 Thorne Bay,AK 99919 (907)821-2681 khpetersen@alaska.edu ire 4 -29.5 1.2"236 112° »Roof Linefo™ 7»Roof Line Same7WidthasWalkway i4xt i >' 7'Arctic Entry + : OPTS Main Hall Phase 2 Phase 1 a Exercise 20"3-0"7: ||}Ronen Saecmeent an 4} Walkway 65-0"y Patio Size TED Phase 1 &2 Floor Plan 7 NN 7 7 Patio eo 1/8"=1°4"n* Statement of Interest In Developing Wood-Fired Heating Projects Information from this form will be used in ranking your project for a pre-feasibility assessment that will be conducted by a contractor hired on behalf of the Alaska Wood Energy Task Group. Not all applications can be funded Electronic copies ofthis form can be downloaded from the Alaska Energy Authority website at http://www.akenergyauthority.org/Programs/AEEE/Biomass It is preferred that Statements of Interest are submitted electronically (via e-mail)but paper copies will be accepted via mail (no fax). Applicant:|George Morgan Sr.High School,Kalskag []Local Government [XXX]School []State Agency []Not-For-Profit Organization []Federal Agency {]Federally Recognized Tribe: []ANCSA Corporation: [JOther: []Commercial Enterprise (identify industry sector): Eligibility: Contact Name:|Severin Gardner or Chris Reich PO Box 30 Mailing Address: City:|Kalskag State:|AK Zip Code:|99607 Telephone:|907.471.2288 Fax: Email:|sgardner@kuspuk.org Please refer to Frequently asked Questions for more information on completing this Statement of Interest. Please respond to the following evaluation criteria:(Attach additional pages as necessary) 1.Please include a short paragraph on what your objectives are with this project. Our objectives are to:reduce reliance on diesel fuel for heating the high school,lower the costs of heating the high school,and free financial resources for other student-oriented activities. Questions 2-3 are specific to individual buildings.Applications can include more than one building.PLEASE SUBMIT A COPY OF THIS PAGE FOR EACH BUILDING Facility Identification/Name:George Morgan Sr.High School 2.Facility information Approximate size (square footage)of building 6000 Type of construction (wood,cement,etc.)Steel beam &wood Age of building 5 years What is building used for?High School,7-12 (55 students) Has building had a recent energy audit?No What is the age of the current heating system?5 years What type of current heating system is in place? (Radiant,forced air,baseboard etc.) Baseboard heat from glycol-based system. 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 fuel oil Annual fuel consumption (gallons)16,000 Cost of fuel per gallon $2.48 Cost of electricity per kWh S.55 Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Questions 4 -10 are general questions -answer only once per application -not required for every building. 4.Presence of high-hazard forest fuels Describe any forest fires or insect outbreaks in the past 5 years:None. Discuss any activities to utilize dead/dying material:There are no current activities that use dead/dying material. Discuss any activities or programs that would mitigate the effects of future fires or infestations:There are none currently.Having a wood-fired boiler would consume dead and/or dying material (scrub brush,fallen trees). S.Resource Issues Where would you plan on getting wood from?Napaimute lumberyard and Kalskag's surrounding forests through local purchases from community members. Discuss the ownership of nearby forest lands and any agreements there may be to harvest trees (live or dead)from those lands.Tribal,TKC,Kuskokwim Corp Discuss the extent and sustainability of local forest resources and wood supply:standing burn from 2005,lumberyard within 5 miles,local sawmills. Discuss wildlife habitat or other forest health issues you may have:none Is there a LAND MANAGEMENT PLAN in place for the area of wood source?Leased to Napaimute from TKC. Do you have access to other wood (i.e.drift wood,wood pellets,bio bricks etc.)?Drift wood can be acquired,and wood pellets can be barged in on the river. 6.Availability of local wood processing residues (e.g.,slabs,chips,bark,sawdust,shavings,etc.)- List any known wood processors near your community.Include owners'names and contact information.Napaimute Lumberyard,Mark Leary,907.545.2877 What do those processors currently do with their residues?Unknown. 7.Wood Fuel Availability What type of woody biomass are you interested in for your system (pellets,chips, cordwood,etc)Primarily chips. Provide anticipated cost for the woody biomass planned on being used.140 cords of wood times $300 =$42,000 per year 8.Discuss community support/advocacy,or which agency will be the project champion for this project e Please tell us about your community advocate (or advocacy group).Mark Leary Does your community have any other wood energy systems?If yes,please identify the system.No Have you had any meetings to discuss wood energy?Feasibility study done in 2013 for Lower School in Lower Kalskag. 9.Please provide a narrative or description on how you see this project being operated and maintained in your community.The school would have a specified period of time for community members to provide biomass.After this specified period of time,the school could then contract out with a local lumberyard to acquire biomass. 10.Discuss what,if any,public benefit will result from this project. This project would provide opportunities for the local community to earn money,and support local, Alaskan industry. 11.Please include any other information that should be considered for this project. Return Statement of Interest to: Karen Petersen University of Alaska Cooperative Extension Service P.O.Box 19190 Thorne Bay,AK 99919 (907)821-2681 khpetersen@alaska.edu L}£Sede vo"Fenn EE CEP Alaska Center for Energy and Power REPORT ON 2 OF 3 COMMUNITIES UNDER ANALYSIS PROJECT TITLE:Data Collection and Analysis -Wood Heating for Public Buildings in Interior Alaska Communities COVERING PERIOD:June 2013 -May 2016 DATE OF REPORT:11 January 2017 RECIPIENT:Alaska Energy Authority R ) 813 West Northern Lights Boulevard ----_ Anchorage,AK 99503 o AWARD NUMBER:© PROJECT LEAD:Daisy Huang i | Alaska Center for Energy and Power <<PO Box 755910 Fairbanks AK 99775-5910 OTHER PARTICIPANTS:City of Tanana (study complete) Gulkana Village Council (study complete) Delta Greely School District (study ongoing) Contents L INTFOMUCTION 00.0...cscs ssseccreeeesccesenncesseeseesesesteseeeecnsnnansacessseeeeeeseeeneeeseaaaseasseeeneaseceeeseeeerneeees 3 2 Background of Biomass-Fired Boilers ...........:scssesesssssrsesecssnessessscesseesesssesenesessaceneeeconseesseenes 3 3 Backgrounds of the Three Selected COMMUNITICS...........ccessccesstesestsesesseseeseesesceseesesnsesseseese 4 3.1 TAM ama...eecessssseecceccceecssccceseessesssssneesesosessoesseeesessannesessensosnscessesssessennceeseceseaeeeessousosees 6 3.2 -GuIK AMA...eee eeeseceeeesseeeeessccnssssnsccsecscesscessanscseessansuseessoeevsneseeaeeesseesseseseueseneeseesseecnsaenes 6 3.3 Delta JUNCTION.........c.cseccccssscrscessstcetesssceseesescscessssssscssecsssnesescessscessossnesscseseesoneescesseeeesessees 7 4 =Methods and Instrumentation .............ssecccsssesssscssscesssseveossecessssseesessseesecsnsesscseesscessessossneeees 8 4.1 Instrumentation and Data Collection,Btu Output Side...ccsesseseceeesensnreeeeeesens 8 4.2 Instrumentation and Data Collection,Fuel Feed Side ................sscsccscscscccersccccceseesssssvenses 9 5 --Performance R@SUItS..........ccssccccssecsssecessecesseeesssseesseesecesssesssseanseascsuseseseeesssssensesenseeensesssseeses 10 5.1 -_Discussion and Sources Of Errr...........ssccsssssccssccsssccssecsessesseesseesseseressseesesensenssoensesesesonee 10 6 Other Results of Study .............cssssccscssecssssscecesessesceseesssessseesoesessescoseeeeessorseassseseeseneesesseseesenses 11 6.1 Societal Benefits Of BioMASS ..........ce eesessssssscsssessccsssssscenensssseseesesceeseusessscessssesesscessessees 11 6.2.The Challenges of Data Collection in Rural Alaska............sssscsscsssscessesessersssessseeseeseens 11 6.3.The Importance of Clean,Dry Fuel..........ssssesssessccsscsssesessscessressssesssersssessssnessssesseeens 12 6.4 Another Definition of "Efficiency”?............scccsesssscreessseesscssessceseecessesessessseseeseseesseeeeees 12 6.5 Use of this Data by Operators...........ccesscccsssecssessrcsenssescssesessscceenscssesesseneceessceescnssesessnes 12 1 Introduction ef ficiency The goal of this data collection and analysis is to quantify the effectiveness'and financial savings achieved from installation off woody biomass boilers in public buildings in order to displace conventional heating oil.The results of this analysis will allow future biomass projects across the state to benefit from knowledge gained by the assessment locations. The assessment locations were chosen from Interior Alaskan communities that received technical assistance from the Alaska Wood Energy Development Task Group (AWEDTG).The data collection methods used for this analysis were a combination of instrumentation, edmrnistrative-record keeping,and performance analysis.operations | The data collection parameters from each community consisted of the following: Wood type and consumption rate Range of wood moisture content experienced at each burn Location and methods u ed for wood harvestOperationaldataofdifferentboilergincluding o [fuel consumption Btu output o Flow rates e Estimated gallons of heating fuel displaced and associated savings e £stimated emissions data 2 Background of Biomass-Fired Boilers -»,Biomass boilers increase efficiency and reduce emissions based on the premiseof decouplingitheheatingsourcefromtheheatingload.This allows the combustion to take place under optimal,conditions,rather than subject to the conditions present in the target heating load.Shihoma che Traditional wood stoves are located inside the space to be heated (heating load),and heats using the space via direct convection and radiation.Once the desired temperature is reached, the user will allow the combustion to slow by reducing air intake and/or damping the exhaust.C j:"72Thisprocessresultsinreducedcombustionefficiencyandconsequentlyincreasedparticulate matter. [a-contrast)biomass-fired hydronic boilers are thermally decoupled from the heating load,andtargetstoichiometriccombustionatallstagesduringtheheatingcycle.A fluid is circulated from the firebox to the heat demand,and the flow rate of this fluid controls the delivery of heat.This allows for cleane Rk Ried Pie er.nvenvement.In the case of cordwood-fired boilers,operators areca to)|the firebox and light a fire when more heat is needed. Biomass-fired boilers also are designed in such a way that secondary combustion occurs in the presence of added air,enabling a more complete burn of the biomass fuel than a conventional wood stove.This allows for both increased energy capture and reduced particulate emissions. Biomass boilers typically heat a water jacket (as in the case of all three locations discussed in this report),and the heat from the water jacket is transferred via heat exchanger toa-seeordary heating loop that is typically a 50/50 water/glycol mix.The eesedery loop circulatesthroughoutthetargetheatingload.This study,however,only measured heat delivery tne /boiler to the first loop,thus measuring only the heat output of the boiler,independent of the heat exchanger efficiency or any losses along the secondary heat loop.heat from Be:F fo Losp¥-Oa In Alaskan villages that use biomass heat,the biomass boiler is usually installed in-line with -lusnattyfan oil boiler to act as a backup system,or to provide supplemental pene te,extreme iensuresaconstantsupplyofheatintheeventofdifficultieswithoneoftheboiler¥in the 60 Alaskan Interior,where summer tends to be warm,the biomass systems are only used in winter and minimally during the "shoulder”seasons (spring and autumn).The reason for this is that biomass boilers must operate at a certain minimum temperature which will cause the target heating load to overheat during warmer periods (+50°F).By using the biomass boiler in-line with an oil boiler,the oil boiler can provide heat during this warmer periods where minimal heating is required.This is not necessarily the case in locations with cooler summers,such as Southeast Alaska. 3 Backgrounds of the Three Selected Communities Tanana,Gulkana,and Delta Junction were selected to cover a fange of operating conditions and situations.The background information is summarized ir(Tabe2.Both Gulkana Village andDeltaJunctionareontheroadsystem.Tanana is accessible by air only,but}is served by 3-4 egtitar daily flights from Fairbanks.All three communities have reliable and motivatedoperators,$0 thety biomass boilers%eldom gy'neglected,as well as g reliable local sources ofwood.The communities also have similar heating climatic conditions,being in arid subarctic climate zones of low moisture and extreme temperature swings from summer to winter;this allows a degree of control over environmental .Varian les 65°F Table 1.Background information about the three selected communities Parameter Tanana Gulkana Delta Junction PPopulation 254 119 974 Access Air only;t hour from |Road;200 road miles |Road;100 road miles Fairbanks from Anchorage,240 |from Fairbanks road miles from Fairbanks Facility Fire station,tetatef |Tribal office and 4 High school,77,0001736s4uarefeetresidentialduplexes_|squaré feet 2 Heating Degree Days,|14790 13763 13429 Wood type al, Surcel [Priftwood cordwood,|Imost all spruce;lengths of 1-2 feet; larger logs split, smaller rounds left whole it. Cut cordwood, seasoned for one year,almost all spruce;lengths of 1- 1.5 feet;larger logs split,smaller rounds Chips from local lumber mill ttegging 'Milli Associates},chipped to about %inch in size "a|Net whole Wood moisture Below 8%to over 22%|Under 20%Under 18% content,as measured by random sampling Location of wood Local Local Local harvest Wood collection Open callto residents |City employees Purchase from private method until 2015;now taken lumber mill from clearings from new road _ How and when is wood harvested? |Year-round, harvested locally by individuals Year-round, harvested locally by tribal members from tribal lands Year-round,chipped from scrap from lumber mill,which harvests trees locally Wood storage --T Storage in building Storage in covered shed outside building Storage in large bin in building,from which auger delivers directly to firebox Chain saws and,Equipment used Chain sa ood Caterpillar harvesters chomper?)hydraulic splitter Annual oil usage gallons at 4500 gallons at 102,000 gallons at before installation of |$6.50/gallon $4/gallon $4/gallon biomass boiler . Annual wood usage 12.4 cords;1 Gara |50 cords over2 Garng¥500 tons of chips at with biomass boiler Bosker Berke $60/ton Annual oil usage after |1200 gallons 2200 gallons 50,000 gallons installation of projecteda#current biomass boiler 'trend Boiler type Garn WHS2000 2xGarn WHS2000 Messersmith/Hurst (they also have a boiler pellet boiler,but it was not instrumented) Boiler rating 425,000 Btu/hr 425,000 Btu/hr 5,000,000 Btu/hr Funding sources <fillin,even stating AEA Renewable -$2 million from Alaska "multiple sources”Energy grant for Energy Authority, 'locally funded”>$500,000 $800,000 from State of Alaska Current fuel costs free at present (whil harvested from tribal ood is gathered lands 5 $60/tonfromroadLcost:7\construction)nog Tfee!L how pel haves f agreement?3.1 Tanana Cure Tanana pon Qa is a Koyukon Athabascan village located at the confluence of the Tanana andYukonRivers,about 100 air miles west of Fairbanks.The boiler system is comprised of a Garn WHS2000 boiler,rated at 425,000 Btu/hr,burning cordwood that is pulled from the Yukon River as driftwood. Moisture content in Tanana ranged from 20 -30%moisture content.For each sampled taken,4 logs were tested with a moisture content meter.JF{- 75 Fare ¥6 USe age'oF Artt 3.2 Gulkana Gulkana (pon 420)is an Ahtna Athabascan village located in the Coppsy Vall y near Glenallen.The biomass boilér system ide valuatiGh consists of two parallel-eonrfec ed-cordwood-firedGarnWHS2000systemsratedat425,000 Btu/hr,and a backup oil-fired niet for There is alsoa-CIARMsystem that is metered separately from the Garn system.The two Garns are heating the70lytribalgovernmentofficeandfourrgsidentialduplexes.The residentia e metered Me tely,5Q their Btu-usage can counted for in the calculations."sp D k brought back online,it will be used to heat the duplexes."3 . Pera.Heaven Moisture content in Gulkana ranged from 15 -20%moisture content.For each sampled taken,"sg 4 logs were tested with a moisture content meter. a e Wee 3.3 Delta Junction Delta Junction (pop.G3)is an agricultural community on the Alaska Highway.The boilersystem-under exami is a Messersmith chip-fired boiler rated at 5,000,000 Btu/hr.The boiler burns high-quality chips,which are made from scrap wood-fremt a local lumber mill.< The moisture content of these wood chips range from 10 -30%,since it is chipped year-round and delivered as needed.This results in a wide range of moisture content as the wood may or may not have had time to dry.However,some of the wood comes from slab wood that has been kiln dried,which results ing@moisture content enthetowerend-eftherange(10-15%).lower 4 Methods and Instrumentation The dafa collection methods used for this analysis were a combination of instrumentation,iStratiwe record keeping,and performance analysis.The instrumentation of the Btu output consisted of installing flow meters in-line in the jacket water.A thermocouple was installed in e-water pn both the supply side and the return side of the boiler,the difference intemperatureeeuptedwiththeflowrate,the Btu-output-ef the boiler could be calculated,Rou Mel a BK,cup,The fuel feed data collection for Gulkana and Tanana consisted of reviewing logs kept by the------Pal operators,collecting temperature data,and making sgrg@ assumptions based on boiler specifications and local cordwood.The fuel data collection for Delta Junction was comparatively simple,the manufacturer provided methods to calculate the fuel feed.The methods are detailed below.7 , The Data was collected as follows: e Tanana >2013 -2014 e Gulkana >2013-2014 e Delta Junction >2015-2017 (ongoing) 4.1 Instrumentation and Data Collection,Btu Output Side Flow rates and temperatures were logged hourly using ultrasonic flow meters andthermocouplésjovertheburningseasonof2013-2014.From the difference in the temperaturesbetweenthesupplyandreturnsideofthewater,the amount of thermal energy delivered to the space could be calculated as: Eneating =C,ATm, where C,is the specific heat of the fluid used to move the heat (in this case,4.19 J/g-K,or 1 Btu/F-Ib)for water),AT is the temperature difference between the hot side and the cold side,and(is the mass of the fluid.In the case of the heat delivery calculations,performance over time is calculated,so units of power (energy per time)are used,so: Eneating/time =C,AT X (mass flow rate) Note that this measures energy output from the boiler,not energy delivered to the building, which would need to account for minor heat losses in the heat exchangers and in the heat delivery loop.The Btu meters logged data both hourly and daily,enabling a measure of energy output at close to real time. 5 Kabler(@eives the instrumentation type used for the metering and measurement.The components"tee,were manufactured by Kamstrup,a Swedish company that provides meters to the utilityindustry. Instrumentation used to measure energy delivery from biomass-fired boilers Component Tanana Gulkana Delta Junction Flow meter 1"Ultraflow-54,type |3"Ultraflow-54,type |(4")DN100 qp100 65-5-CgAG 65-5-CMCH Ultraflow-54,type 65-5-FBCL ,c/w 10m cable Temperature sensors,|2-wire temperature 2-wire temperature Type 65-56-43, 2 each sensor,c/w cable.sensor,c/w cable.140mm long Sensor pre-connected |Sensor pre-connected to cable.to cable. --[balculaton-----Multicast 602--=CMtltieae-Caltutator,ta SSS}r adeeeoType:602-B-5-00-8 Type:602-B-5-00-8 Type:602-B-5=| *4.2 Instrumentation and Data Collection,Fuel Feed Side Due to the nature of the fuel used in cordwood systems,the amount of cordwood burned at any given time could only be estimated very roughly.In Gulkana,the operator fills the firebox about 80%full at every firing,although the cordwood is loosely packed.This report makes the following assumptions: The firebox volume is 17.4 ft?,per the GARN specificatior$Sigace!.ae OrAcordofwoodi£128 ft,per commonly accepted definition The firebox is filled approximately 80%,with a void space of approximately 25%(75% full)per visual observation. A cord of spruce has approximately 16,000,000 btus. Therefore,each filling of the firebox is (0.75 *0.80 *17.4)/128 =0.08 of a cord,or 1,300,000 btus. 4 In Tanana,the operator was less procedural Willage Public Safety Officer (VPSO),doubled as theoperator-ancHiveds at the fire station and maintained the fire in the GARN.A log book was used to record firings,with notes such as,"Filled the box %full”or "finished second cord today”.The following assumptions,similar to those made for Gulkana,are made: The firebox volume is 17.4 ft?,per the GARN specifications Ve A Gece ?A cord of wood i5C28 Fe,per commonly accepted definition” Notes of "1/4 full”assume 25%of capacity;"1/2 full”assume 50%of capacity. A cord of spruce has approximately 16,000,000 btus. When full,the firebox is filled approximately 80%,with a void space of approximately 25%(75%full)per visual observation. Therefore,a "half”filling of the firebox is (0.5 *0.80 *17.4)/128 =0.05 of a cord,or 820,000 btus.Cosrstency ?rs it hal?of &0%,?or half of Aa?| 9 View @ space) The Messersmith boiler in Delta Junction,has an electronic "eye”on the fuel feed system that measures the volume of chips being feed into the burn box.The boiler manufacturer provided a data logging system that used data derived from this electronic "eye”to internally calculate the fuel feed rate. 5 Performance Results Table 2.Results from Btu metering Parameter Tanana Gulkana Delta Junction Dates of data collection Oct 2,2013-Feb 27,2013,when Oct 30,2013-Apr 22,2014,when Sept 2015-May 2016 Sept 2016-May 2017 operator quit operator quit burning-wood __|burning weod Energy produced with 62,600,000 em in progressbiomass,Btu et Heating fuel displaced,<5 in progressgallons,assuming 87%P\4efficiencyofanoil-fired boiler (not measured,but fon Z based on typical performance of typical boiler)-, Calculated fuel dollars $3400-$6000 ($4/gallon)|in progress saved ($6.50/gallon) Estimate of wood 12.6 cords 38 cords consumed Wood cost $3780 $9500 in progress Oil burned,gallons 1200 2200 in progress Oil cost $7800 $8800 in progress Total fuel cost $11580 $18300 in progress 5.1 Discussion and Sources of Error -woeDatacollectionfrombothcordwoodsystemsedoh operator reporting. Gulkana Village Council keeps a log book in the boiler room.Each time an operator fills the firebox with wood,they record the time,tank water temperature,outdoor air temperature, supply/return temperatures,and glycol level.During the shoulder seasons this is done 1-2 times per day,in the depth of winter 3-4 times per day.The only gap in data from Gulkana is from Jan 6 -20 2014,where pages are missing.For this time frame,boiler stoking was assumed to be on the same schedule as the prior week.At some point during the heating season,Gulkana Village Council had appellet boiler installed to heat the fourplex,which took over much of thefan 4 isthes _10 Operal ng?7).pooLeyFempTeCovi heat load that would otherwise have been carried by the GARNs alone.Therefore this also impacted the results of the study. The Fire Station in Tanana did not keep a logbook.The VPSO/operator agreed to start logging boiler firings to assist this analysis.This data logging was an improvement,but still left some data gaps.The log included comments such as "filled %full”,fuel calculations were made based on al i A ane AE operational circumstances to Gulkanthva(n Com bean "OA wth Scomy lar oF pump KoneBrood!spent 'onal . -e3rnDatacollectioninDeltaJunctionwasmorestraightforward&to the nature of the fuel,and the on board logging system.However,in January of 2016,it became apparent that although the data logger was receiving a live feed of data at all times,it was not #rfaet logging the data. This was remedied in summer 2016,a daily snapshot of fuel consumption is now being logged. This will provide both fuel consumption and Btu output data for the 2016-2017 heating season (currently in progress) tee 6 Other Results of Study 6.1 Societal Benefits of Biomass loys 7InDeltaJunction,management of the biomass boilerisajob-ferone full-time operator.It also turns what would otherwise be a waste product from a lumber mill into a value-added product. In Gulkana,stoking the biomass boiler at regular intervals provided part-time work for two workers.The boiler was stoked 469 times during the heating season.Assuming that each daytime firing requires one half person-hour,and each midnight firing requires one full person- hour,that results in about 300 person-hours per year.Installation and larger maintenance operations were performed by Gulkana village maintenance staff. In Tanana,me local biomass program was started in 2007,and continues to this day,with GARNboilersiinstataljedithewasheteria,city shop,school,senior center,and other communitybuildingsBESthefirestation.Since inception,the money saved on avoided fuel costs has enabled building a new children's playground,and improved weatherization of both the school and teachers'housing.This weatherization of the school saved a further 7000 gallons of cit the<_first-year,before wood heat was installed;it now has wood heat as well,annua llehPPmentsthee 6.2 The Challenges of Data Collection in Rural Alaska Sb yortawe%number farOfallthechallengestodatacollectioninruralAlaska,the primary obstaclérelateg to ny,52 won i operational logs.Most operators are willing and helpful,but differing priorities result in gapsin be use |the data., 11 Natare ofAnothermajorchallengewithcordwoodbiomassdatacollectionistheafsaulsrityefthe-cordwood.Logistics aside,there are several technicaffinconsistencies that include,but are notlimitedto: af Varying wood density and log dimensions varying firebox fill densities wood speciesmoisturecontentbarkincludedversus debarked The Delta Junction system also had unique problems with fuel feed data collection.In January of 2016,it was realized that the data logger was notinfatt logging the data.Manufacturer technical support was difficult to obtain given the remoteness.The manufacturer support was based in Vermont,which make communicationfogistics very difficult.aad 0 Ther 6.3.The Importance of Clean,Dry Fuel The Delta Junction boiler took advantage of the experience in Tok,which has an identical boiler. Tok chipped entire trees,which were chopped down the create fire breaks,including branchesandrootballs(they calledit"guts,feathers,and all”).However,the excess soil/sand in the fuelledtotheaccumulationofslagintheburnchamber,requiring removal of slag on a daily basis. In contrast,Delta Junction has always burned clean chips from a lumber mill,thus has never had an issue with slag build-up.Tok is currently purchasing chips from a nearby lumber mill;this still results in fuel savings over oil. 6.4 Another Definition of "Efficiency”? The engineering definition of"efficiency”is (energy output)/(energy input).However,this definitionis not the only applicable definition when examining biomass systems in rural Alaska. A more important factoris the cost effectiveness of the system,whichis strongly ttied to thecostofthefuel.- 6.5 Use of this Data by Operators A sudden dropin fuel demand and heat output together would indicate that thereis a loss ofsignalbetweenthethermostatandtheboiler,and the space will cool down rapidly.A sudden dropin heat output,with no corresponding loss of fuel demand,would mean that heatis being ___lgst,.and leaks would need to be checked. 12 ACEP Alaska Center for Energy and Power REPORT ON 2 OF 3 COMMUNITIES UNDER ANALYSIS PROJECT TITLE:Data Collection and Analysis -Wood Heating for Public Buildings in Interior Alaska Communities COVERING PERIOD:June 2013 -May 2016 DATE OF REPORT:11 January 2017 -_ RECIPIENT:Alaska Energy Authority -_ 813 West Northern Lights Boulevard C>an Anchorage,AK 99503 OZ SSopAWARDNUMBER: PROJECT LEAD:Daisy Huang Alaska Center for Energy and Power PO Box 755910 Fairbanks AK 99775-5910 OTHER PARTICIPANTS:City of Tanana (study complete) Gulkana Village Council (study complete) Delta Greely School District (study ongoing) Contents s I [0 0 e (0 [oi 00)9 ene eee 3 2 Background of Biomass-Fired Boilers ............cescssssecssssssecesesesersescscosssceesesscosseeetcassaseseseaesees 3 3 Backgrounds of the Three Selected CoOMMuNItieS.............cceeeeeeesscteeeeessteetecsssoeeeeseceeesseeeeeesnee 4 ceRe 0-1 0 0:6 oyA C10 ||:|0);re 6 3.3 Delta JUNCtION.....cece cctcecseeecsseessncescsscccensssesesseessesasseecsssesessceesosseeseseeceseeseeseseeeeeserers 7 4 =Methods and Instrumentation ...........ccsccssscesssssssessescsseesessccseessnsesesseessoseesesesessesesssseaseeeetees 8 4.1 Instrumentation and Data Collection,Btu Output Side@............cc ccccccecceccscssssesssesenseees 8 4.2.Instrumentation and Data Collection,Fuel Feed Side .u.........ccccccccccsccsscsesscsssssssssscsssveceees 9 5 Performance ReSuIts...........cssccccssseccscsssessssssecccssssesssessseesesseesesssessessscssesesssceeesesenesssseeeesonaeees 10 5.1 Discussion and Sources Of Error..........ssscssssessssseessesessseessceesssscesseeesseesesaccesseeeseeseneeess 11 6 Other Results of Study .........cs cccsssccsssscsesssseeceeesensesesssseessseccesssseeseesssssseresseeessesenseessaseceseeasens 12 6.1 Societal Benefits Of BiOMASS 00.0...sesseeetsssrssesecseceeseeeesseeescseeessesesssceeeseseseeeacecereneetens 12 6.2.The Challenges of Data Collection in Rural Alaska..............cessscsssssssescesseessssesesssseecseneees 12 6.3.The Importance of Clean,Dry Fuel...seessseseresssssecssnseesessssssessssesesssosessssaseceeseeers 13 6.4 Another Definition of "Efficiency”?.........ccc sesecessessereccessceeeessssecsssnsossessseesesseseressesecees 13 6.5 Use of this Data by Operators...cccssscccessssssscsssesssccessccsecseesssessessssnceeseseseesssesecesseesess 13 __under the Alaska Wood Energy Development Task Group (AWEDTG).|The three facets of tetecollectionareinstrumentation,data collection,and performance analysis}The wood Tonk 1 Introduction {73Thegoaloftt?biomass data collection and analysis program is to quantify effectiveness and financial savings achieved from installation of woody biomass-fired boilers in public buildings. Assessment locations were chosen from Interior Alaskan communities that were assessed heating systems were installed with the goal of displacing heating fuelaleading to economicsavingsopcreation,and increase§energy security.This project attempts to quantify theeconomicandenvironmentalvalueoftheseparticularsystems,enable a technical comparisonoftheperformanceofdifferentwood-fired boilers,and assess individual boiler performance under different weather and fuel conditions. The goals of the project were to collect data on the following in each community: Wood type and consumption Range of wood moisture content that is currently experienced at each burn e Location of wood harvest e Wood collection method e Operational data of different boilers such as Btu,flow rates e Gallons of heating fuel displaced and estimated cost savings e £stimated emissions data 2 Background of Biomass-Fired Boilers Biomass-fired boilers operate on the premise of increasing efficiency and reducing emissions bydecouplingtheheatsourcefromthéspacetobeheated,allowing the burn to take place under optimal conditions for efficiency rather than direct nee requirements.A traditional wood stoveislocatedinsidethespacetobeheated,and it hea space via direct convection and radiation.When the space reaches the desired temperature,the user either chokes back the burn by reducing air intake,or damps the burn by reducing air outflow.Hoover these richburnsyieldreducedefficiencyandincreasedparticulates,which <gx7 versely atte leairQnalitysincontrast,roma AY hydrgnic boilers are thermally decoupled from the space to beheated,and target s iCvonnet ic burning all the time.A fluid is circulated from the firebox to the heat demand,and the flow rate of this fluid controls the delivery of heat.This allows for cleaner burns and less operator involvement.In the case of cordwood-fired boilers,operators are still required to fill the firebox and light a fire when more heat is needed.However,in between burns,no active air control is necessary,since the boiler always targetsstoichiometric--burning.Biomass-fired boilers also are designed-suehthat-a secondary combustion occurs inthepresenceofaddedair,enabling cleaner,more efficient burning that obtains more heat per -ance Ia SucSfoichiometoieypBelge nuns Had com Gastron toatereatBureon ef,er x9 unit of fuel than a conventional wood stove.This allows for both increased energy capture and reduced particulate emissions. The boilers typically heat a water jacket (as in the case of all three discussed in this report),and the heat from the water jacket is transferred via a heat exchanger to a secondary heating loop that is typically a 50/50 water/glycol mix.It is this secondary loop that circulates throughout the space to be heated;this is necessary to prevent freezing of the fluid,as well as to increase the heat capacity of the carrier fluid.This study,however,only measured heat delivery from the -boiler to the first loop,thus measuring as directly as possible only the heat output of the boiler, independent of the heat exchanger efficiency or any losses eleng the Taoget.hat foaetiAtheatleakInAlaskanvillagesthatusebiomassheat,the biomass-fired boiler is syptcaly installedin line with the oil-fired boiler,sharing the secondary heat loop.If the biomass-fired boiler is sufficiently stoked,the oil-fired boiler does not fire up.However,in the case of operator absence or insufficient biomass burning,the fluid will fall below the set point temperature and the oil-fired boiler will kick on.On the demand side,the occupant of the building thus has only to set a thermostat in their living space,and the water circulates to deliver it,making the process invisible to the occupant. In the Alaskan Interior,where summer tends to be warm,the biomass-fired heating systems are used only in winter,and minimally during the "shoulder seasons”of spring and fall.The reason is that when outside air temperatures rise above a certain level (generally around 50°F) the heat output from even a low fire-rate of a biomass boiler is greater than the heating demand of the building,and the building overheats.Some communities (for example,Tok and Coffman Cove)use the excess heat generation to heat greenhouses.But if a secondary heat need is not present,it needs to be vented.For this reason,operators in our three communities in this study tend to quit burning biomass in late spring (April or May),switching to oil alone for a heat source.In regions with cooler summers,such as Southeast Alaska,this is not necessarily the case. 3 Backgrounds of the Three Selected Communities Tanana,Gulkana,and Delta Junction were selected to cover a range of operating conditions andsituations.The background informationis summarizedin Table 1.Both Gulkana Village andDeltaJunctionareontheroadsystem.Tanana is accessible by air only,but it is served by 3-4 regular daily flights from Fairbanks.operators,so their biomass boilers seldom go neglected.All three communities also have reliable local sources of wood.They also have similar heating climatic conditions,beingin arid subarctic climate zones of low moisture and extreme temperature swings from summer to winter. Combi nr Table 1.Background information about the three selected communities Parameter Tanana Gulkana Delta Junction Population 254 119 974 Access Air only;1hour from |Road;200 road miles |Road;100 road miles Fairbanks from Anchorage,240 |from Fairbanks road miles from Fairbanks Facility Fire station,tota!of Tribal office and 4 High school,77,000 1736 square feet residential duplexes square feet Heating Degree Days,|14790 13763 13429 65°F Wood type Driftwood cordwood, almost all spruce; lengths of 1-2 feet; larger logs split, smaller rounds left whole Cut cordwooad, seasoned for one year,almost all spruce;lengths of 1- 1.5 feet;larger logs split,smaller rounds left whole Chips from local lumber mill (Logging and Milling Associates),chipped to about %inch in size Wood moisture Below 8%to over 22%|Under 20%Under 18% content,as measured by random sampling Location of wood Local Local Local harvest Wood collection Open callto residents |City employees Purchase from private method until 2015;now taken from clearings from new road lumber mill How and when is wood harvested? Year-round, harvested locally by individuals Year-round, harvested locally by tribal members from tribal lands Year-round,chipped from scrap from lumber mill,which harvests trees locally Wood storage Storage in building Storage in covered shed outside building Storage in large bin in building,from which auger delivers directly to firebox Equipment used Chain saws and wood Chain saws and Caterpillar harvesters chomper hydraulic splitter Annual oil usage 2000 gallons at 4500 gallons at 102,000 gallons at before installation of |$6.50/gallon $4/gallon $4/gallon biomass boiler Annual wood usage 12.4 cords 50 cords over 2 Garns {|500 tons of chips at with biomass boiler $60/ton Annual!oil usage after |1200 gallons 2200 gallons 50,000 gallons installation of projected at current biomass boiler trend Boiler type Garn WHS2000 2xGarn WHS2000 Messersmith/Hurst (they also have a boiler pellet boiler,but it was not instrumented) Boiler rating 425,000 Btu/hr 425,000 Btu/hr 5,000,000 Btu/hr Funding sources AEA Renewable $2 million from Alaska Energy grant for Energy Authority, $500,000 $800,000 from State of Alaska Current,costs free at present (while |harvested from tribalwiwoodisgatheredlands $60/ton "from road construction) 3.1 Tanana Tanana (pop.310)is a Koyukon Athabascan village located at the confluence of the Tanana and Yukon Rivers,about 100 air miles west of Fairbanks.The boiler system is comprised of a Garn WHS2000 boiler,rated at 425,000 Btu/hr,burning cordwood that is pulled from the Yukon River as driftwood. Moisture content was sampled on 4 logs each time the meter was read;moisture content ranged from 20 -30%. 3.2 Gulkana Gulkana (pop.100)is an Ahtna Athabascan village located in the Copper Valley near Glenallen. The biomass boiler system under evaluation consists of two parallel-connected cordwood-fired Garn WHS2000 systems rated at 425,000 Btu/hr,and a backup oil-fired monitor.There is also a TARM system that is metered separately from the Garn system.The two Garns are heating the tribal government office and four residential duplexes.The residential duplexes are metered separately so their Btu usage can be accounted for in the calculations.When the TARM system is brought back online,it will be used to heat the duplexes. Moisture content was sampled on4 logs each time the meter was read;moisture content ranged from 15 -20%. 3.3 Delta Junction Delta Junction (pop.974)is an agricultural community on the Alaska Highway.The boiler system under examination is a Messersmith chip-fired boiler rated at 5,000,000 Btu/hr.They are burning exceptionally high-quality chips,which are made from scrap wood from Logging and Milling Associates,a local lumber mill. Their wood moisture content ranges from 10 -30%,since it is chipped year-round and delivered as needed.The timing of chipping and delivery may or may not correlate with when the wood has dried.Therefore,the wood moisture level tends to vary quite a bit.Most of it is from slab wood that remains after boards are cut from logs.Therefore,it's been kiln-dried,and the overall average moisture content of the chips tends to remain toward the low end of the range (10-15%). fe Wyte4 Methods and Instrumentation The data collection plan is comprised of on-site monitoring by local operators,automated Btu meters,and administrative oversight. Measuring Btu output was comparatively simple.Flow meters were installed inline in the jacket water.A thermocouple was installed in the water on both the "supply”side and the "return” side of the boiler.From the temperature difference and the flow rate,heat input at the boiler could be calculated. Measuring the fuel feed side was equally straightforward for Delta Junction's chip-fired boiler,which is fed with an auger of known volume.The boiler manufacturer provides an interface to read and log the fuel feed at hourly intervals.For Gulkana and Tanana's cordwood-fired boilers, measuring and logging fuel feed information was comparatively more difficult,and many assumptions were made.These assumptions are outlined in the following sections. Data was collected from the Tanana fire station and from the Gulkana village council buildings from 2013-2014,and from Delta Junction High School from 2015-2016 and 2016-2017 (ongoing). 4.1 Instrumentation and Data Collection,Btu Output Side Btu metering was accomplished as follows.Ultrasonic flow meters were installed inline in the jacket water.A thermocouple was installed in the water on both the "supply”side and the "return”side of the boiler. Flow rates and temperatures were logged hourly over the burning season of 2013-2014.From the difference in the temperatures between the supply and return side of the water,the amount of thermal energy delivered to the space could be calculated as: Eneating =C,ATm, where Cp is the specific heat of the fluid used to move the heat (in this case,4.19 J/g-K,or 1 Btu/F-lb)for water),AT is the temperature difference between the hot side and the cold side, and mis the mass of the fluid.In the case of the heat delivery calculations,we are looking at performance over time,so units of power (energy per time)are used,so:heBe|aonEneating/time =C,AT X (mass flow rate) Thus,by monitoring flow rate and temperature difference between the hot and cold side of the water,energy output from the boiler could be measured.Note that this measures energy output from the boiler,not energy delivered to the building,which would need to account for a non-unity efficiency of the heat exchanger between the water loop (boiler side)and the glycol loop (heat delivery side),as well as losses in the heat delivery loop.The Btu meters logged data 8 both hourly and daily,enabling a measure of energy output at close to real time.There is a time delay between combustion and the transfer of heat from the firebox to the water. (Coaiueshve instrumentation type used for the metering and measurement.The componentsweremanufacturedbyKamstrup,a Swedish company that provides meters to the utility industry. Instrumentation used to measure energy delivery from biomass-fired boilers Component Tanana Gulkana Delta Junction Flow meter 1"Ultraflow-54,type |3"Ultraflow-54,type |(4")DN100 qp100 65-5-CgAG 65-5-CMCH Ultraflow-54,type 65-5-FBCL ,c/w 10m cable Temperature sensors,|2-wire temperature 2-wire temperature Type 65-56-43, 2 each sensor,c/w cable.sensor,c/w cable.140mm long Sensor pre-connected |Sensor pre-connected to cable.to cable. Calculator Multical-602 Multical-602 Multical-602 Calculator,Calculator,Calculator, Type:602-B-5-00-8 Type:602-B-5-00-8 Type:602-B-5-00-8 4.2 Instrumentation and Data Collection,Fuel Feed Side For the cordwood systems,the amount of cordwood burned at any given time could only be estimated very roughly. In Gulkana,every time the firebox is filled,it is filled until visually full (although loosely packed). This report makes the following assumptions: The firebox volume is 17.4 ft?,per the GARN specification..A cord of wood is 128 ft?,per commonly accepted definition.>>2 re ve sof spar ce.The firebox is filled approximately 80%,per visual observation.S CatenKo -feores Of the part that the firebox is filled (the bottom 80%),the wood is packed much more loosely tha ile of cordwood is typically stacked.This factor is visually approximated to be 75%. e Acord of spruce has approximately 16,000,000 e Therefore,each filling of the fir 1,300,000 btus. *17.4)/128 > Whs-DInTanana,the operator did not follow any particular procedure.It was the Village Public Safety Officer,who lived at the fire station and maintained the fire in the GARN.He left notes such as, "Filled the box %full”or "finished second cord today”.Because he filled the firebox with less of a cord,or procedural consistency,it is more difficult to account for how much he burned.However,the following assumptions,similar to those made for Gulkana,are made: e The firebox volume is 17.4 ft?,per the GARN specification. e Acord of wood is 128 ft?,per commonly accepted definition. e When he reports "1/4 full”,we assume it's literally 25%of full;when he reports "1/2 full”,we assume it's literally 50%of full. e Acord of spruce has approximately 16,000,000 btus. e Of the part that the firebox is filled (the bottom percentage),the wood is packed much more loosely than a pile of cordwood is typically stacked.This factor is visually approximated to be 75%. e Therefore,a "half”filling of the firebox is (0.5 *0.80 *17.4)/128 =0.05 of a cord,or 820,000 btus. In Delta Junction,there is an electronic "eye”on the fuel feed system that measures the volume of chips being feed into the burn box.The boiler manufacturer,Messersmith,made certain assumptions and programmed them into the fuel feed data logger,so that it would output processed data in Ibs/hour and tons/day.They assumptions they make are as follows e Wood chip density is {XX}. e Wood moisture content is {YY}. e Aturn ofthe augur moves volume {ZZ}of chips. 5 Performance Results Table 2.Results from Btu metering Parameter Tanana Gulkana Delta Junction Dates of data collection Oct 2,2013-Feb |Oct 30,2013-Apr |Sept 2015-May 2016 27,2013,when |22,2014,when Sept 2016-May 2017 operator quit operator quit =-burning wood burning wood Energy produced with 62,600,000 183,000,000 in progress biomass,Btu Heating fuel displaced,500 1500 in progress gallons,assuming 87%oo efficiency of an oil-fired boiler (not measured,but based on typical performance of typical boiler) Calculated fuel dollars $3400 $6000 ($4/gallon)|in progress saved ($6.50/gallon) Estimate of wood 12.6 cords 38 cords 10 consumed Wood cost $3780 $9500 in progress Oil burned,gallons 1200 2200 in progress Oil cost $7800 $8800 in progress Total fuel cost $11580 $18300 in progress y[EFFIecesert 7 5.1 Discussion and Sources of Error Data collection from both cordwood systems depended on operator reporting. Gulkana Village Council keeps a logbook in a binder located in the boiler room.Each time an operator fills the firebox with wood,they record the time,tank water temperature,outdoor air temperature,supply and return temperatures,and glycol level.During the shoulder seasons, they do this 1-2 times per day.In the depth of winter,they do this 3-4 times per day. The pages from Jan 6"-20"2014 are missing,Neithe Gulkdna Village Council nor account for this,as the binder never leaves the boiler operator room.\For this time frame,boiler stoking was assumed to be on the same schedule as the prior week. L At some point during the heating season,Gulkana Village Council had a pellet boiler installed to heat the fourplex,which took over much of the heat load that would otherwise have been carried by the GARNs alone,Tkerefore this alse impacted the results of the study. The Tanana Fire Station does not keep a logbook.The Village Public Safety Officer,who lived at the fire station and maintained the fire in the GARN,agreed to keep notes of when he fired the boiler.|left him with a blank notebook with the headings,"Date”,"Load”,and "Notes”,and he agreed to maintain notes of when he filled the firebox.He does not necessarily fill the firebox to the same amount each time.Therefore,his notes include comments such as "filled %full”, and fuel calculations were made using those assumptions,but otherwise similarly to Gulkana. |Delta Junction data collection should in theory have been the most straightforward becausehaveboththetidiest,most consistent fuel;but they have the tidiest,most consistent feed. The chips are cut from clean,dry slabwood,and are automatically augured into the firebox as required.The chip-fired boiler is the most process-blind and operator-independent.The thermostat is set for the space to be heated,and when the water in the boiler jacket drops below its set point,it calls for the boiler to demand more chips.The auger has an electronic. "eve”on it that measures how much fuel is fe df.However in January of 2916,we realized that Ithough it was reading outalive feed of data at alltimes,it was not in fact logging the data. From this point forward,we captured a daily snapshot of fuel consumption. Over the summer of 2016,the fuel interface was finally repaired,so are collecting hourly data for both fuel feed and Btu output and will have a complete data set for the 2016-2017 heating season. id 6 Other Results of Study 6.1 Societal Benefits of Biomass In Delta Junction,management of the biomass boiler is a job for one full-time operator.It also turns what would otherwise be a waste product from a lumber mill into a value-added product.. In Gulkana,stoking the biomass boiler at regular intervals provided part-time work for two workers.The boiler was stoked 469 times during the heating season.Assuming that each daytime stoking is half a person-hour,and each midnight stocking is one person-hour,that comes to about 300 person-hours per year.Installation and larger maintenance were performed by the person who maintains everything in Gulkana village. q 77 In Tanana,it is difficult to separate out how much of the societal benefits realized by the villagerereduespecificallytotheiThebiomassprogramwasStartedin 2007,and continues to this day,with GARN boilers installedin the washeteria,city shop, school,senior center,and other community buildings in addition to the fire station,Thus far,the money saved on avoided fuel costs has enabled building a new children's playground,and aimprovementandweatherizationofboththeschoolandteachers'housing.Weatherization of |Sitheschoolsaved7000gallonsofoilthefirstyear,before wood heat was installed.It now has Quete,wood heat as well.°y 6.2 The Challenges of Data Collection in Rural Alaska esearchers must ask favors of people who are not paid to take on additional work.MostTherearesignificantchallengestodatacollectioninruralieaoneONerarIABOnE.'S that are kind and helpful,and a few are genuinely interested,but when hey are unavailable orwhen"something else comes up”,have gaps in the data.It's also common that ¢the¥do not understand the importance of consistent reporting,and either forget to provide criticalinformation,or providee rrelevantinformationsho ever charming,such as presence of arainbowinthesky!). The second one is that the granularity of cordwood data is already logistically challenging,even if WA have willing,paid hands.The inconsistences include,but are not limited to:alehowdenselypackeAcordis---P a5)vy how much wood oaded into the firebox when the wood boiler is "filled”.wood eves? moisture content log length and diameter (which both affect packing density) bark/is removed 12 - "|4 Even the Delta Junction system presented its problems with fuel feed data collection,although3withtheelectronicsveanfhe.auger,it should have been the most straightforward of the threeNS Ug © systems However,hfSiar of 2016,we realized that_although it was reading out a live feedataatalltimes,it was not in fact logging the data.When we contacted the "local”support technician (located in Vermont),he was dismissive.This is illustrative of another challenge todatacollectioninruralAlaska.eG are almost always a larger company's smallest,least important customer,and they don't care to support you/(However,|would like to point ou"at when |wrote a strongly-worded email to Messersmith,he very quickly replied with excellent support.)Ove +6 2 erator in Delta Junction very kindly and helpfully accommodated us all d,by providing a daily o of the live feed interface of the fuel f vetomn-This reported fuel consumed in the previous oily sraahot of fuel consumption Over the summer of 2016,interface inally repaired,so we are collecting hourly data for both fi and Btu output and will have a co data set for the 2016-2017 The Delta Junction boiler took advantage of the experience in Tok from the prior year:They purchased the same boiler as Tok.Tok originally installed the Messersmith as a way to utilize what they perceived as "free fuel”-chips that were cut from trees that had been cut for fire 6.3.The Importance of Clean,Dry Fuel y remediation.Tok ground entire trees,including branches and root balls (they called it "guts,2S.feathers,and all”),but it led to an excess accumulation of slag in the burn chamber,requiring3removalofslagoveronceaday.In contrast,Delta Junction has always burned clean chips fromvealumbermill,and never experienced the same problems that Tok did.Tok today also purchaseschipsfromalumbermill(and they still save money over burning oil despite this unanticipated expense). 6.4 Another Definition of "Efficiency”?sh.[Asé:(l vot eter fo H,>)a S Ow henomene ASaneengineeringdefinitionof"efficiency”is (energy output)/(energy input).tower we eff.CranOposethatthisdefinitionisnotveryapplicabletobiomasseconomicsofruralAlaska.For nH etafniple,one boiler might be 87%efficient,but its fuel might be more expensive.While "econon clotherisonly75%efficient,while its fuel is extremely low-cost,leading to a higher economic Picieatxffectivenessforthecommunity.We would like to extend an invitation to any economists °t reading this to open a discussion of how we might better define "efficiency”of a boiler.FRective 6.5 Use of this Data by Operators ----- A sudden drop in fuel demand and heat output together would indicate that there is a loss of signal between the thermostat and the boiler,and the space will cool down rapidly.A sudden ,drop in heat output,with no corresponding loss of fuel demand,would mean that heat is being eed to be checked. 13 7 aa Ragen Carsoralion,tre.at,{SvcconserFinterestteNootek7:Mapecktulnaut nae - Seen any,'NORTAK AIRPORT= ",TRACT 4 PARCEL A ect 2.Vitoge foots 2-000042-0 tao 4 ROW Louarn=o tfaOL ALeeDeedtoAbieUtiteycovenversrrsag'tay18/1980 : Be.37,Poe 201-2083/18/1000Lote1& Community Map ?NOATAK TAK ia 2 67 33°57°N 162°58 26°W (NAD 83)\A A ee as 5 & Approximate Elevation:00.44"ALASKA "zo oo N O .se,on .seen a cope iTownship25North,Ranges 10&20 Weel,c'o if]9 Oy eel nn.ey AB y eas Department of Commerce,Cocimeiny ated Eevenenar rrmeeofComenatyamlKates!River Meridian,AK Cone ¥ws . ie'Na_849 1 ot"|RET Tntee cong Patong Irn tie Rerikvest lonpat Roumag tethers.KARE Ragmnal”fl = n .ANU COONDMIE pel oes BL HAMA Regional Corporation,he.">+|Corporehon,ead tenon smmoculaan The Rerizvvet arctic Dorwagh cumtresied with Gib fTUSGS.Quadrangle "NOATAK C-2,&C-9,"Alaska DevaLorMeNny 7 Fee nats aac Tal dss ke AUTHOR .fee WO oe demon &ao a san Peclimeing Bervans,tha dgedofO03 te propery Ube ay a TZEBUE RICT °mee BIONA:COPPOO ATION ONC MAMIEACLANCUATIONE a "9 ..'BUILDING KEY : E Tete map sheakt wt ts comstrend as 4 curses.On-site surveys sasutd te seogacted = *=ated i t [Svngemering or constractca Th map mus complet to tort hartowlal aad ?LEGEND _mC.18°C es "41.Snow Removal Equipment Bullding i smeurncy ta Asverinace =k uolional umep ecvarery vlamdarde,% Residential Building .Water Line \.4 g &Napeagtugmiut School Fuel Tanks Praperty umd lnfernestion hae bern greereied trem rendity evaiiabir sarees sith . .3.Noatek Lions Club bmtet mocwrery Property infermetiw ws vel mtsnted le repermm a ute march wfCommercialBuilding*'Sewer Line gq .ra]§4.Old Napsaqtugmiut School (Abandoned)t lhe Semerter's Office rorerd.UUMy levetion w npprecimate ned shows enly the mam lowe Public Bulidi 4%.Sewer Force Main ;"of 1 6 PAA Antenne é Ceuaraty.tha lormaiion We ourvaal ar of Sophccer #13 SFTW provided vantetimn and ne eee Electric .Lu 8 Noatak Friends Church forty cert 5 17{b)Trail Easements 'Telephone wa»7 Noatak Friends Church-Youth coer y Bipag.Sem plstererts arr pane 1 OOS ts nominal tae,tims TSrc).|Gs ibandor es wrthephete:raphe mappeng Basie of Coordinates Underground Telephone = Army National Guard (Abandoned)t cooents wary prepared 0 Tow (E)Koak leareain uh laos coetoury Srary tan (10)fot@simBramcup.a0 Blectrie &Telephone 2% Ime be i 4 .BOSIEOWTALAMDVERTICALCONTHOLWOWC14,Tr.A Fuel Line i 'The horgontal aad vertical control stelion for Ute Ggiel map und eriepiele ses on MCT isUSS4486EdgeofWater12OPUStelulonferGPE(nc Tet "BAM 1"The.bersoalal daium JAB 965 coordinaion for thinyt3aTaalareHorih6?a0 67.0000"and Cont [62 B26 0084Y"tad tiv ciertion bb OOO DS °190 700 44 "To SEC. --is (CNG.B49 'The mapping of tbe somunassly of feted nan boon to hs sootratng e100" *'Clana bigh-procistenGPUwethagsvadUsadpttedcoordinalee and eirvolin Por BLK Bras CopSCALE:1°©100'.Bb WOME 14,Tek USE 4400",sure culruieled bo eutebien 2 tree)cumiral referomse The BiltDateofPhotography:June 12,2013 SCALE IN FEET #47,(Quccemer m terest to 1983 coordensim fer ites manned ore Worth BFS M0077 ond tot er oe isT®IS Magnetic Declinatioa compuled by U.S.C.5.Ceomag SHEET 16.Search &Rescue Building 1,-Nopoen eat Ue ctoreleen We TRG foot 3ProgramusingIGRFT!COF model ae of August !.20t3 Lona fae 4a 'Tole reap projetion (q hamed open HAD 00,A5F Tone 7 an expreeved in UN Survey Pest. Ly alt aA KER\Gam ENERGY AUTHORITY Noatak Biomass Heating Prefeasibility Assessment Dan Smith Project Technician,Alaska Energy Authority dsmith@aidea.org 907-771-3983 a _fakenergyauthoritytorgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 a August 16,2016 /=ALASKA:G@ammgpwp ENERGY AUTHORITY Table of Contents Executive SUMM ALY .......ccccccsstscssccssseesserssenessncessessseescccesssesscsesnessnessassseescensesssessseecesseesnsessseeeneeseeeesoaseseenneesa 2 Community Disposition 0.0.0.0...eccseecssseseececeseceeceenecsseossncesseseneseesassensesesesaessscssesessussecsaresseseaseseseseseoseseaeees 2 Background ..........cececssesssesssscescessssccscrscesscsasssessesscesesssssesscsasessssorsessseesssessssssssseseaesseeseesesseseasesscsasseseasonees 2 Existing SyStems ........:cc:csesccssccccesccnececeecceseecscesecesssessecsuevcecsesersssasseeesseessscsesesssssssssuseresssdeseesesecseseeeseeseans 2 Community-wide Fuel Savings ..........cscscscssescssssesessesstsessescessnssseessssessesssseseessscesonesessesssessesessesosssssesseenatens 2 SCOMATIOS ......ccceeseessecncceceecsessseeseesecsccereccacenceeateenecsnseseseseasssseassssssessaesaesusesesvssesseccdanerererensessesenessesoneeteeeteeseeeees 3 1 -Individual Buildings ...........ccccssessssssssseseeeseseesesenesetscesesessesesecneseneseseaeneseesesenensnesssenenss seveeaessesneeseeneens 3 2 -Small Heating Loop .........ccceecseseceseeseecnceeoecsenessecseseescsessesccecneeseesateceeeeeseseesaecenerseseneeraseaceneeeseneneearees 4 3 -Large Heating Loop 2 0...eee esssesssssssecssessenevssecesssvsassscnesesssnssessesssavsecesasesssosssssassasesaeseseseerseseneres 5 Biomass ReSOUICE .........:sscscsceseseeeeesesescscscscsecenerenesesesesenassscacsesssssessusnsesusecsesscasscuseesasagecssuceeeseseseatsenenseeeetees as) AEA Recommendations.........ccscscssscesscsecssesscscrsssersecsssussscnsecesssnssssssseesssseseseeseessenesssscessesessessassesoesnaseaseases 6 APPeNdlx ......cc eseessesscescsecscesoesscsscssessssssssesesssusessessevsesueseesseesereseussensensessseecssensensesseceeceseseenssntsnessessesssssesessneegs 7 A -Fuel ASSUMptiON 0.0...eee seeeseesesssesssevssessassecsssessenecousseeensseessnasssessaseasessasoeusenssenessoososesseseeseseutenes 7 B -Capital Costs ......scscscssssscsssesscsccssssecsscssssssscssensseecsssesssssassussasssssesecseucsscsssessssenessessasseseesseusenseusessasoasees 7 C -Biomass ASSUMPUIONS............cceseececesessscsecsscesesesssessssesscsseessossssaasnescssesessesssecenssssusesaseusssaesedtoetteesenee 7 D -Site Photos 0.0...ceescessccesescccesccecesceeneeseccoescenesesecsnescversuesssesasssesstesdensassdsesssseessnesesessasenseseseaesssssaneeseseeees 8 E -Statement of Interest 0.0.0...cecessssesssessseesesscssessecscesesssessesssesevscesscsseeessscesssssesssscscescesssssessesseereasenseass 9 F -Maniilag Forestry Inventory ..........ccsscscsssssseseccossrssssssescsessssnevssesssnsserassnsesseesssenessaessssseeesssssesneseneree 9 |or akenetgyauthortityzorg}2813WestNorthernLightsBoulevardAnchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 I=ALASKAENERGYAUTHORITY 4.Cord calculations used 87 ft?to account for void space in wood stacking,this differs from the conventional 128 ft}figure used in a 4X4X8ft cord. D -Site Photos 5,aNd NeLdYEENS/»Ss |¢4-Old School Building.The South WingoNMtisscheduledfordemolition,the North Wing(s)require retrofits to become suitable for use. e 6 -Noatak Friends Church e 7 -Noatak Friends Church -Youth Center e 9 -Noatak Native Store e 12 -Tribal Office e 10 -Powerhouse e 14--Water Treatment Plant e 15 -Water Tank OPT Aw PEs :Tee NO”:<s |Noatak downtown region. OTS BN Maniilag Clinic.Relatively distant from other public buildings. Tribal Office Building royauthsrityiorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 /=ALAS KAGumm®ENERGY AUTHORITY Water Treatment Plant Representative forested area in region.Note that the growth is denser near the river. 2 RATE ORT IOEE SO TY RMT TD ET TS ee ee EOE Dt ee "] Aerial view of Noatak.Airstrip to the left. Downtown area along river.The new school is the building furthest from the river. E -Statement of Interest See Attached F -Maniilaq Forestry Inventory See Attached C ee akenergyauthorityrorg? 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 /=-/ALASKAQaENERGYAUTHORITY Executive Summary The Tribal council of Noatak has expressed interest in using biomass,specifically a cord wood boiler,as an alternative heating source.Five possible scenarios were evaluated during this investigation which would result in savings ranging from $4,000 to $35,000 in heating fuel costs annually.The differing capital costs in each of these scenarios result in some being more beneficial than others.However,due to sparse biomass/timber abundance in the region,it is strongly cautioned that a robust forestry management plan be developed prior to further pursuit of biomass heating. Community Disposition Background On June 15",2016 Devany Plentovich and Dan Smith from AEA traveled with both Clara Jones from the Northwest Arctic Borough (NWAB)and Jackie Schaeffer from WH Pacific to Noatak,Alaska.The purpose of this visit was to engage the community regarding the potential for implementing biomass heating in various public buildings as a cost saving measure.The Tribal Council is interested in using a cordwood boiler to heat the Tribal Office building,and had submitted a statement of interest to the Alaska Wood Energy Development Task Group (AK WEDTG). Existing Systems The current heating system employed in nearly every building in the community is either an oil fired boiler or a space heating stove (Toyo stove).In buildings with a boiler,a hydronic system is typically employed to distribute the heat throughout the building. The community primarily heats its Water Treatment Plant (WTP)with a heat recovery system that pulls 584 MMBtu of waste heat annually from the Cummins QSX15 G9 generators in the nearby powerhousebyusingamarine,geffffewater jacket.This system was originally constructed in the mid-1990s and repaired in 2012 by ANTHC;it is currently displacing 4,300 gallons of heating oil.The WTP also has an oil boiler to supplement the heat recovery system which used approximately 4,400 gallons of heating oil annually before the heat recovery system was installed.Based on commercial heating oil prices of $7.00/gal,the heat recovery system saves the community roughly $30,100 annually. Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In the table below,estimates were created based on given usage values and val from nearby communities.The estimates,combined with the fact that 1 cord of wood is equivalent t€[30 gallons of heating fuel,translate into cords of wood required to heat a given building each year;from there a new cost and subsequent savings are found.Table 1 only takes into account the fuel costs and does not consider any capital costs or O&M costs typically associated with biomass systems. [30-{130%02)=(04 oer 100 gllers I i .MMMM akenergyauthorityforgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 ) (astoFIJoedAugust 16,2016 a f/\\K KA\l=ENERGY SIA Table 1:Community Wide Fuel Savings Size Oil Used (gal)Cords of Wood Annual Building (ft2)Annually _Annually Savings Tribal Office 2500 1200 9.23 $5,169.23 Noatak Friends Church*4000 1400 10.77 $6,030.77 Noatak Friends Church -Youth 1140 900 6.92 $3,876.92 Center* Noatak Native Store*4864 1400 10.77 $6,030.77 Maniilaq clinic*5000 2200 16.92 $9,476.92 Old school (north wing)**9300 4200 32.31 $18,092.31 Water Treatment Plant 3400 4400 33.85 $18,953.85 Annual Total 15,700 120.77 $67,630.77 Lifetime Totals (25 yrs)392,500 3019.23 |$1,690,769.23 *Estimated value **Assumes building will be retrofitted and repurposed The total annual savings figure depicts an ideal scenario in which nearly every community building is heated with biomass and the old school (which is currently vacant)would be repaired and repurposed.If this were the case,the community could potentially save over $1.5M in fuel costs by using cord wood instead of heating oil over the life of the boilers.As mentioned earlier,this figure does not include construction or annual O&M costs.It is primarily used to illustrate how cost effective biomass is compared to oil.However,if the cost of installing three Gam WHS 3200 boiler ugits ¢as well as the O&Mrequiredthecommunity-wide savings would still come out to be over $600,000 overer thie 25-year lifespan of the boilers. Scenarios To adequately assess all possibilities,several scenarios were considered and assessed.These scenarios were based on information collected during a site visit on June 15,2016.Estimates were created from this information as well as data from previous,similar projects. these evaluations,the Benefit/Cost ratio acts as a simplified decision making tool.A B/C ratio greater than }.0 means that the project will save more money than it costs to implement.This number is generally driven primarily by the amount of heating oil displaced;the higher the number,the higher the ratio,and the more beneficial it will be. 1 -Individual Buildings The Tribal Council originally submitted a statement of interest that only expressed interest in heating the Tribal Office building with a cord wood boiler.As shown in table 2,heating only the Tribal Office building yields a very low B/C ratio.Because of this,two other buildings were investigated for heating with a biomass boiler. The Clinic was the next choice,because it has a medium heating load.Installing a biomass boiler in the clinic would be more beneficial than installing one to heat only the tribal office.However,the economics still yield a B/C ratio that is only marginally beneficial. 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 Table 2:Heating Individual Buildings / Tribal Office Clinic WTP Cord of Wood Annually 10 17 34 Boiler life 25 25 25 Capital cost $265,275.00 $265,275.00 $265,275.00 Annual O&M $500.00 |§$500.00 |$500.00 Annual Fuel Savings $4,707.69 $8,630.77 $17,261.54 Total O&M $12,500.00 $12,500.00 $12,500.00 Total Fuel Savings $117,692.31 $215,769.23 $431,538.46 Lifetime Total Savings $(160,082.69)|$(62,005.77)$153,763.46 Simple Payback (years)63.05 32.63 15.83 B/C ratio 0.42 0.78 1.55 -ALASKA Qa ENERGY AUTHORITY The third option investigated was the water treatment plant (WTP). Currently the WTP is heated exclusively with recovered heat from the nearby powerhouse. Because of this, the WTP does not use any heating oil at present.However,the community has recently been evaluating the possibility of relocating the powerhouse;there is a possibility that this relocation would cause the existing heat recovery system to become ineffective.If this relocation were to happen,using a biomass boiler as an alternative to oil and/or recovered heat could be a good choice.Over the life of the boiler $150,000 would be saved and result in a B/C ratio of 1.55.As appealing as this option is,it hinges on two key things happening.1)the powerhouse must be relocated and 2)the powerhouse must be relocated in such a way as to make continued heat recovery operations unfeasible for the WTP.The recovered heat could then be used to heat other buildings in its new vicinity. 2 -Small Heating Loop The first heating loop scenario would depend on a single Gam WHS 3200 boiler unit;it would run between the Tribal Office and a cluster of buildings 300ft away.The buildings contained in this cluster are the Noatak Friends Church,the nearby Youth Center,and the Noatak Native Store. Table 3:Small Heating Loops Small Loop 1 (with Store)|Small Loop 2 (No Store) Cords of Wood Annually 38 27 Boiler life 25 25 Capital cost $335,812.50 $366,525.00 Annual O&M $500.00 $500.00 Annual Fuel Savings $19,223.08 $13,730.77 Total O&M $12,500.00 $12,500.00 Total Fuel Savings $480,576.92 $343,269.23 Lifetime Total Savings $132,264.42 $(35,755.77) Simple Payback (years)17.94 27.70 B/C ratio 1.38 0.91 In Loop 1,the Office,Church, Youth Center, and the Store were all . included in the calculations.By including additional buildings,the added heating oil being offset would pay for the capital cost over the life of the project.Heating Loop 1 would save well over $100,000 over the life of the boiler;it has a favorable B/C ratio of 1.4.However,if the Store is not included in the heating loop,the savings would not be enough to offset the capital costs.To recoup these losses,the boiler would need to be active past the expected life for at least another 3 years with regular maintenance.This means a project life of 28 years,which is uncharacteristically long for a boiler Cc -- 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 akenefgyauthorityzorg? I=ABSKA\f=ENERGY SIAAugust16,2016 3 -Large Heating Loop 2 A large heating loop would be very similar to the smaller heating loops previously outlined.The primary difference would be that this heating loop would draw heat from two Garn 3200 boilers situated in the North wing of the old school.Currently this building is unused and would require extensive retrofits in order to be repurposed.During these retrofits,a portion of the building could be set aside/designed to house the boiler units;this would save a considerable amount of money on the construction costs. Table 4:Large Heating Loops Large Loop 1 (with Store)|Large Loop 2 (no Store)|Because of the Cords of Wood Annually 70 60 |size of the Boiler life 25 25 |North wing of Capital cost $523,800.00 $494,268.75 |the old school, Annual O&M $500.00 $500.00 |thereis Annual Fuel Savings $35,700.00 $30,207.69 Potential ier a Total O&M $12,500.00 $12,500.00 heating 'oad,Total Fuel Savings $892,500.00 $755,192.31 |similar to that Lifetime Total Savings $356,200.00 $248,423.56 |of the water Simple Payback (years)14.88 16.64 |treatment plant. B/C ratio 1.66 1.49 |As mentionedearlier,as more heating oil is displaced,the project becomes more attractive.The inclusion of the refurbished school building makes these projects very attractive. Biomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.The Noatak subunit stretches 40 miles upriver of Noatak,20 miles downriver,and is 13 miles wide on average.In this report it was found that the Noatak subunit contains 4,915,124 ft?of timber.With the harvest range being limited to a 5-mile radius surrounding the 'Yiweof Noatak,thisletothecommunity(Syequatesto14,655 Oi of wood Aes .Ud hat:+ The Noatak subiéhit ls comprised primarily of white spruce with some balsa poplar/cottonwood and trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 8,958 cords of harvestable spruce and 1,A24 cocottonwoodwithinroughlya5-mile radius of the community.Wowie!Table 5:Biomass Distribution Resource Cord Weight |Energy Harvestable Composition |(Ibs/cord)(MMBtu/cord)|Cords Spruce Harvest 65%3100 18.1 8,958.61 Cottonwood Harvest 8%2400 15 1,424.19 Other Harvest 27%2700 16.5 4,272.57 Weighted Average 2936 17.42 Total 14,655.36 Makenergyatithorityforg} 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 /=ALASKAG@ammmENERGYAUTHORITY With an average tree maturation rate of over 100 years,the wood used by the community every year cannot exceed 1%of the total available resource poe aintain sustainability.With 14,655 cords ofwoodintheharvestareathisequatesto146cordaldsmentionedearlier,if the majority of community buildings were to use biomass resoufces for heating,approximately 120 cords of wood would be required annually.The fact that these numbers are so closeis concerning as over harvest couldnegativelyaffecttheriverineenvironmentandthushaveari dire consequences for the local subsistence lifestyle. teal o feea#!""wo$toge etast .8 -2)He, Table 6:Biomass Heating Scenarios Cords of .My Biomass Heating Scenarios Wood a rd,;Annuall BOs Tribal Office 9.23 ;§'4Clinic16.92 4 " WTP 33.85 om Small Loop 1 (Store)37.69 Be a Small Loop 2 (No Store)26.92 er Bey reks Large Loop 1 (Old School,no Store);70.00 f Legend aa Large Loop 2 (Old School,Store)59.23 ©Communities >Noatak Subunit Wf NANA Region Allotment Parcels a]af Woatak Subunit Atlotment ParcelsForeachofthescenariosoutlinedearlier,different amounts of wood would be needed.Those amounts are me 6 - outlined in table 6 for each given scenario.The wood a Oo”ig 10g 20 required for each scenario evaluated is lessthan what .|,BT Ee Bs 7 mes awouldbeneededfortheallcommunitybuildingstobe"aol t ite 7 in J?heated with biomass and therefore within the allowable Zmountforsustainableannualharvest.|However,AEA strongly recommends a more detailed forestry evaluation ing wood resources before developing a harvest plan and further pursuing a(_biomass heating system.J”10LD"AEA Recommendations Based on the information presented AEA recommends a more detailed forestry analysis be conducted to confirm the biomass abundance and availability in the area.Once an in-depth forestry analysis has been conducted for the region directly surrounding Noatak,a timber harvest plan should be drafted in parallel with a feasibility report to confirm the designs and economics outlined in this report.Out of all the scenarios presented in this report,only options similar to those with a positive B/C ratio should be considered at this time. fakenergyauthorityforgt 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 16,2016 Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available data. 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities. 3.The oil price is taken to be the commercial rate of $7.00/gallon.Using the community retail rate of $10.00/gallon would make the economics more favorable. 4.Cords of wood required to heat a given building was based on the energy content of the weightedaverageofavailabletimberintheregion.At contain 17.42 MMBtu/cord. The price of Cord wood is $400/cord andis based on the vyenrwunit. -Capital Costs Boiler costs assume a Garn WHS 3200 The Single Building estimate can be used for any scenario involving heating individual buildings Loops 1 and 2 consider different lengths of arctic pipe required and draw heat from a single boiler a / ical cord used would be 65%spruce,8%poplar and«2 Oe is€price in Kobuk. 4.Loops 3 and 4 assume that Part of the North wing of the old school will be repurposed to act as housing for the boiler units,thus reducing the Boiler Housing cost.5.Loops 3 and 4 assume two pam 3200 boiler units will provide heatTable7:Capital Cost Estimates \yucthon teas Capital Costs Single Building {|Loop 1 Loop2 _}Loop3-2Garns |Loop 4 -2 GarnsBoilerHousing_7[($35,000 S0/1 35,0085)|$35,090-|$15,000 $15,000 Boiler Cost tT "P346,500---|$46,500 "*]$46,5007*|$93,000 $93,000 Artic Pipe ($175/ft)|N/A $47,250 |$70,000 |$105,000 $83,125 Piping/Hardware $45,000 $45,000 |$45,000 |$45,000 $45,000 Thermal Storage $5,000 $5,000 $5,000 |$5,000 $5,000 Controls/Electrical |$10,000 $10,000 |$10,000 |$10,000 $10,000 Heat Exchanger $5,000 $5,000 $5,000 $5,000 $5,000 Freight $50,000 $55,000 |$55,000 |$110,000 $110,000 Subtotal $196,500 $248,750 |$271,500 |$388,000 $366,125 Engineering (15%)|$29,475 $37,312 |$40,725 |$58,200 $54,919 Contingency (20%)|$39,300 $49,750 |$54,300 |$77,600 $73,225 Total $265,275 $335,813 |$366,525 |$523,800 $494,269 C -Biomass Assumptions 1.Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. 2.Approximately 35%of the subunit is within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 1.65%white spruce 2.8%balsa poplar/cottonwood 3.27%other/deadwood cc akénercgVauthorityro: 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 "ALASKA Quam ENERGY AUTHORITY igi x KC Game ENERGY AUTHORITY Executive Summary The Tribal council of Noatak has expressed interest in using biomass,specifically a cord wood boiler,as an alternative heating source.Five possible scenarios were evaluated during this investigation which would result in savings ranging from $4,000 to $35,000 in heating fuel costs annually.The differing capital costs in each of these Scenarios,result in some being more beneficial than others.ue to sparse biomass/timber abundance in the region,it is strongly cautioned that a robust forestry management plan be developed prior to further pursuit of biomass heating.Vip fe 74,Community Disposition mare p Fovare PEAFRSS a Background On June 15",2016 Devany Plentovich and Dan Smith from AEA traveled with both Clara Jones from the Northwest Arctic Borough (NWAB)and Jackie Schaeffer from WH Pacific to Noatak,Alaska.The purpose of this visit was to engage the community regarding the potential for implementing biomass heating in various public buildings as a cost saving measure.The Tribal Council is interested in using a -small cordwood boiler to heat the Tribal Office building,and had submitted a statement of interest to the Alaska Wood Energy Development Task Group (AK WEDTG). Existing Systems The current heating system employed in nearly every building in the community is either an oil fired boiler or a space heating stove (Toyo stove).In buildings with a boiler,a hydronic system is typicallyemployedtodistributetheheatthroughoutthebuilding. The community primari a Water Treatment Plant (WTP)with a heat recovery system that pulls584MMBtuofwastehea"at he Cummins QSX15 G9 generators in the nearby powerhouse by using amarinegradewaterjacket.This system was originally constructedin the mid-1990s and repairedin 2012byANTHGC;it is currently displacing 4,300 gallons of heating #24,The WTP also has an oi]boiler tosupplementtheheatrecoverysystemwhichusedapproximately4,400 gallons of heating fd annually before the heat recovery system was installed.Based on commercial heating oil prices of $7.00/gal,the heat recovery system saves the community roughly $30,100 annually. Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In the table below,estimates were created based on given usage values and values from nearby communities.The estimates,combined with the fact that 1 cord of wood is equivalent to 130 gallons of heating fuel,translate into cords of wood required to heat a given building each year;fromthereanewcostandsubsequentsavingsarefound.Fhejabtefbctew only takes into account the fuel costs and does not consider any capital costs or O&M costs typically associated with biomass systems. MEMEEAKGNSEGVAUthOEtyTOrE! 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 banatiachteach of Scenarios off. August 9,2016 JZ/NAS KA\-f=ENERGY AUTHORITY Size Oil Used (gal)Cords of Wood Annual Building (ft2)Annually Annually Savings Tribal Office 2500 1200.007 9.23 $5,169.23 Noatak Friends Church*4000 140066.10.77 $6,030.77 Noatak Friends Church -Youth |1140 90040.6.92 $3,876.92 Center* Noatak Native Store*4864 140060 10.77 $6,030.77 Maniilaq clinic*5000 22008”16.92 $9,476.92 Old school (north wing)**9300 4200-00 32.31 $18,092.31 Water Treatment Plant 3400 4400.85 33.85 $18,953.85 Annual Total 1570088 120.77 $67,630.77 Lifetime Totals (25 yrs)392500 3019.23 $1,690,769.23 *Estimated value **Assumes building will be retrofitted and repurposed The total annual savings figure depicts arrtdeat scenario in which nearly every community building is heated with biomass and the old school (which is currently vacant)would be repaired and repurposed.If this were the ¢case,the community couldie potentially save over $1.5Min fuel costs over the life of the ¥community,the wide savings of over $600,000 over the life of the project. ees Constrnction ef co aeToadequately';assess all possitincrcomes,several scenarios were considered and assessed.These sul V|scenarios were based on information collected during a site visit on June 15,2016.Estimates were created usfromthisinformationaswellasdatafromprevious,similar projects.lus teate For these evaluations,the Benefit/Cost ratio acts as a simplified decision making tool.A B/C ratio greater effect:vethan1.0 means that the project will save more money than it costs to implement.This number is generallydrivenprimarilybytheamountofheatingoildisplaced;the higher the number,the higher the ratio,and B ronesy the more beneficial it will be.7S comparedrl1-Individual Buildings to ol, The Tribal Council originally submitted a statement of interest that only expressed interest in heating the Tribal Office building with a cord wood boiler.As shown in the ane heating only the Tribal OfficebuildingyieldsaverylowB/C ratio.Because of this,two other bui ings were investigated for heating with a biomass boiler. The Clinic was the next choice,because it has a medium heating load.Installing a biomass boiler in the clinic would be more beneficial than installing one to heat only the tribal office.However,the economics still yield a B/C ratio that is only marginally beneficial. fakenergyauthorityrorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 / Different Scenarios Tribal Office Clinic WTP Cord of Wood Annually 10 17 34 Boiler life 25 25 25 Capital cost $265,275.00 $265,275.00 $265,275.00 Annual O&M $500.00 |$500.00 |$500.00 Annual Fuel Savings $4,707.69 $8,630.77 $17,261.54 Total O&M $12,500.00 $12,500.00 $12,500.00 Total Fuel Savings $117,692.31 $215,769.23 $431,538.46 Lifetime Total Savings $(160,082.69)|$(62,005.77)$153,763.46 Simple Payback (years)63.05 32.63 15.83 B/C ratio 0.42 0.78 1.55 "ALASKA G@ummm ENERGY AUTHORITY The third option investigated was the water treatment plant (WTP). Currently the WTP is heated exclusively with recovered heat from the nearby powerhouse. Because of this, the WTP does not use any heating oil at present.However,the community has recently been evaluating the possibility of relocating the powerhouse;there is a possibility that this relocation would cause the existing heatrecoverysystemtobecomeineffective.If this relocation were to happen,using'biomass san alternative to oil and/or recovered heat Gould be a good choice.Over the life of the boiler $150,000 would be saved and result in a B/C ratio of 1.55.As appealing as this option is,it hinges on two key things happening.1) the powerhouse must be relocated and 2)the powerhouse must be relocated in such a way as to makecontinuedheatrecoveryoperationsunfeasiblefortheWTP.The recovered heat could then be used-forrr den other buildings in its new vicinity. 2 -Small Heating Loop The first heating loop scenario would depend on a single Garn WHS 3200 boiler unit;it would run between the Tribal Office and a cluster of buildings 300ft away.The buildings contained in this cluster are the Noatak Friends Church,the nearby Youth Center,and the Noatak Native Store. Small Loop Scenarios Small Loop 1 (with Store)|Small Loop 2 (No Store) Cords of Wood Annually 38 27 Boiler life 25 25 Capital cost $335,812.50 $366,525.00 Annual O&M $500.00 $500.00 Annual Fuel Savings $19,223.08 $13,730.77 Total O&M $12,500.00 $12,500.00 Total Fuel Savings $480,576.92 $343,269.23 Lifetime Total Savings $132,264.42 $(35,755.77) Simple Payback (years)17.94 27.70 B/C ratio 1.38 0.91 In Loop 1,the Office,Church, Youth Center, and the Store were all included in the calculations.By including additional buildings,the added heating oil being offset would pay for the capital cost over the life of the project.Heating Loop 1 would save well over $100,000 over the life of the boiler;it has a favorable B/C ratio of 1.4.However,if the Store is not included in the heating loop,thesavingswouldnotbeenoughtooffsetthecapitalcosts.To FEELS these losses,the boiler would need to be active past the expected life for at least another 3 years with regular maintenance.This means a project life of 28 years,which is uncharacteristically long for a boiler akenergyauthorityrofgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 5,2016 -f/ALASKA\August 9,.a f=ENERGY 'SKA 3 -Large Heating Loop 2 A large heating loop would be very similar to the smaller heating loopspreviously outlined.The primaand-include-thedifferencewouldbethatthisheatingloopwoulddrawheatfromtwoGarn3200boilersi North wing of the old school.Currently this building is unused and would require extensive retrofits in order to be repurposed.During these retrofits,a portion of the building could be set aside/designed to house the boiler units;this would save a considerable amount of money on the construction costs. Large Loop Scenarios Large Loop 1 (with Store)|Large Loop 2 (no Store)|Because of the Cords of Wood Annually 70 60 |size of the Boiler life 25 25 |North wing of Capital cost $523,800.00 $494,268.75 |the old school, Annual O&M $500.00 $500.00]thereis Annual Fuel Savings $35,700.00 $30,207.69 ey lenge aTotalO&M $12,500.00 $12,500.00 heating load, Total Fuel Savings $892,500.00 $755,192.31 |similar to that Lifetime Total Savings $356,200.00 $248,423.56 |of the water Simple Payback (years)14.88 16.64 |treatment plant. BIC ratio 1.66 1.49 |As mentionedearlier,as more :heating oil is displaced,the project becomes more attractive.The inclusion of@ refurbished school building makes these projects very attractive. Biomass Resource se In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.The Noatak subunit stretches 40 miles upriver of Noatak,20 miles downriver,and is 13 miles wide on average.In this report it was found that the Noatak subunit contains 4,915,124 ft of timber.With the harvest range being limited to a 5-mile radius surrounding the Village of Noatak,this equates to 14,655 cords of woo access;ble to the.-d-within-harvest-ranse-ofthe community. The Noatak subunit is comprised primarily of white spruce with some balsa poplar/cottonwood and trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 8,958 cords of harvestable spruce and 1,424 cords of cottonwood within roughly a S-mile radius of the community. 8 fiomof>.Resource Cord Weight |Energy Harvestableiste:bat'|Composition |(Ibs/cord)|(MMBtu/cord)|Cords Spruce Harvest 65%3100 18.1 8,958.61 Cottonwood Harvest 8%2400 15 1,424.19 Other Harvest 27%2700 16.5 4,272.57 Weighted Average 2936 17.42 Total 14,655.36 akenergyauthorityrotgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 ¥907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALASKA@aamp@ENERGYAUTHORITY =ar-average tree maturation rate of over 100 years,thewoodusedbythecompanyMielecannotcxcoed1%of the total available resource in order tomaintainsustainability§This equates to 146 cords per year.As mentioned earlier,if the majority of community buildings were to use biomass resources for heating,approximately 120 cords of wood would be required annually.The fact that these numbers are so closeiss concerning as over harvest couldnegativelyaffecttheriverineenvironmentandthushaveroa7 dire consequences for the local subsistence lifestyle.-:mienCords of Biomass Heating Scenarios Wood Annually Tribal Office 9.23 Clinic 16.92 WTP 33.85 Small Loop 1 (Store)37.69 Small Loop 2 (No Store)26.92 Large Loop 1 (Old School,no Store)|70.00 Large Loop 2 (Old School,Store)59.23 z &Legend For each of the scenarios outlined earlier,different amounts of wood would be needed.Those amounts are @ Communities TS noatak Subunit WP NANA Region Allotment Parcels outlined in the table(for each given scenario.The wood a|aff Nostak Subunit Atiotment Parcels required for each scenario evaluated is less than what ™ ¢ 5 a would be needed for the all community buildings to be c *sPret -=heated with biomass and therefore within the allowable Po vs .Coamountforsustainableannualharvest.However,AEA aan Pannen Ea a wore woo strongly recommends a more detailed forestry evaluation of the surrounding wood resources before developing a harvest plan and further pursuing a biomass heating system. AEA Recommendations Based on the information presented AEA recommends a more detailed forestry analysis be conducted to confirm the biomass abundance and availability in the area.Once an in depth forestry analysis has been conducted for the region directly surrounding Noatak,a timber harvest plan should be draftedin parallelwithafeasibilityreportOutofallthescenarios presentedin this report,only options similar to those with a positive B/C ratio should be considered at this time. fo confirm the design anoCoonamicSOutlinetnthes(epoct fakenergyauthorityrorg$ 813 West Northern Lights Boulevard Anchorage,Alaska 99503 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available data. 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities. 3.The oil price is taken to be the commercial rate of $7.00/gallon.Using the community retail rate of $10.00/gallon would make the economics more favorable. (E/ANASKA\.f=ENERGY AUTHORITY 4.Cords of wood required to heat a given building was based on the energy content of the weighted average of available timber in the region.A typical cord used would be 65%spruce,8%poplar and contain 17.42 MMBtu/cord.wNnNryiyunit. -Capital Costs Boiler costs assume a Garn WHS 3200 The Single Building estimate can be used for any scenario involving heating individual buildings Loops 1 and 2 consider different lengths of arctic pipe required and draw heat from a single boiler The price of Cord wood is $400/cord and is based on the price in Kobuk. 4.Loops 3 and 4 assume that Part of the North wing of the old school will be repurposed to act as housing for the boiler units,thus reducing the Boiler Housing cost. 5.Loops 3 and 4 assume two Garn 3200 boiler units will provide heat Capital Costs Single Building |Loop 1 Loop 2 Loop 3-2 Garns |Loop 4-2 Garns Boiler Housing $35,000 $35,000 $35,000 |$15,000 $15,000 Boiler Cost $46,500 $46,500 $46,500 |$93,000 $93,000 Artic Pipe ($175/ft)N/A $47,250 $70,000 |$105,000 $83,125 Piping/Hardware $45,000 $45,000 $45,000 |$45,000 $45,000 Thermal Storage $5,000 $5,000 $5,000 $5,000 $5,000 Controls/Electrical $10,000 $10,000 $10,000 |$10,000 $10,000 Heat Exchanger $5,000 $5,000 $5,000 $5,000 $5,000 Freight $50,000 $55,000 $55,000 |$110,000 $110,000 Subtotal $196,500 $248,750 |$271,500 |$388,000 $366,125 Engineering (15%)$29,475 $37,312 $40,725 |$58,200 $54,919 Contingency (20%)$39,300 $49,750 $54,300 |$77,600 $73,225 Total $265,275 $335,813 |$366,525 |$523,800 $494,269 C -Biomass Assumptions 1.Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. 2.Approximately 35%of the subunit is within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 65%white spruce1. 2.8%balsa poplar/cottonwood 3.27%other/deadwood 4.Cord calculations used 87 ft?to account for void space in wood stacking,this differs from the conventional 128 ft?figure used in a 4X4X8ft cord. 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=GD ENERGY AUTHORITY D -Site Photos Ae Noatak downtown region. e 4-Old School Building.The South Wing is scheduled for demolition,the North Wing(s)require retrofits to become suitable for use. e 6 -Noatak Friends Church e 7 -Noatak Friends Church -Youth Center 9 -Noatak Native Store 12 -Tribal Office 10 -Powerhouse 14 -Water Treatment Plant 15 -Water Tank Maniilaq Clinic.Relatively distant from other public buildings. Tribal Office Building EVCVLIG PEEL ORS ALAC Lnantes 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 =A KERA\Game ENERGY AUTHORITY Noatak Biomass Heating Prefeasibility Assessment Dan Smith Project Technician,Alaska Energy Authority dsmith@aidea.org 907-771-3983 -fakenergyauthorityrorg] 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only}888.300.8534 F 907.771.3044 August 9,2016 /=ALASKAGuamENERGYAUTHORITY Table of Contents Executive Summary .........cccsscsssssseeees seseceeenes saseeeessaseesessssesosneeerenaseaeeessseeeeoes sosseevoessceeseesensceseenecs seseeeeee seeeeee Community Disposition ..........ccccccsssescssssssseseesreneeseesseessseeeenseeenees seceseesseessesseeesesseeeeesees sesessesseseoseeossoeseoeoeees 2 Background .............setesdeesssesseassseesssesessssesesesessssensssssassonssssoanssssenssesssssessasacesnscenesesssacssseseseasascersesssessesoesoes 2 Existing Systems ..........cscsssssscsesscssseesssesseesseeenens seeeeeessseeses seseseseeessesseeees sessseesseeessesensenssessnesoasooesseseseees seven Community-wide Fuel Savings .........:csssssesecesseesees seceessseeaesseessvercsseesssecsessenscecaesensseerersessstesssonsenseetetsneeeeee 2 SCENALIOS .....scsceseeseeeees sicessessessessseseessseeeoeesens sesseoesenes seseesseneeeens ssssssessasescosseseesessessesoeesonsosesonses sesosseaceecessoneness 3 1 -Individual Buildings ..........cssssessssseseseseeeeees sesesecaetsesecacssenecetsesaeeseaeess eseceseeecescseseesseesaeseesseeses seed 2 -Small Heating Loop .......cec eee cseesseseseesseneenenees beceesssessesesesesccesssesenseceeteess rE 3 -Large Heating Loop 2.............sacesseessessesseeecsssscessesesseceeseseoeeosenensnes ssveseesesesecessoeseeseneosaes ssseessececesseeereees 5 Biomass ReSOUICE .......sscssecerceeesseeeseeesreeses ssseseesecssossvensssencensscssescesosssnesssssesensesscsessscseuevseseessesassesossosenontes re) AEA Recommendations............csccssseseseees sesesseseessosscesseessssnsesseusssassesensonsossesesssesssesscssoseesusoeseassesessoessssoseseooes 6 Appendix..........sesesseseessseesenosnsones Sesesessseeseeeeeeeneesenseens setestesseeeeseee seesenseessesseceesesesaseeeseens seveevenesesneseanees sscsssveseeeeDT A--Fuel Assumptions............saseseseesesessevessssessseosseesoessenscsesenes sotveeecasevscessevenceseceseoees sesonsassesensesees seeeessees 7 B -Capital Costs.......scscesseeees saseesaeceeesseasesesesesessesesssoeees sacesossceeesoesoesnssocaessrassusoneconeens sesveseeseveccessseseenes C -Biomass Assumption..............seseeseessassssescensessssssascsseccssessecassssseseeaceseessssesesvecosasseseesssonsnsess sessessesasescecee 7 D -Site Photos.........seteeetsnsceseeoesscessesassrsseees Saseesseseeessesssesseaeesessscesoasessassasessveceaseessesessasesseeseseeseeerececaeoerse 8 E -Statement of Interest .........0.csessseseessesseees seecaesesasessesssoeassevssenssesevsrsevessseesssessecersecssonsessasees seeeessesseeneesD) F -Maniilaq Forestry Inventory sense seusessesssssssssvesecesssstasssessssusussssseseusssssssnsesssssssnsseesesssssseusessesssssues sonneseeeeeD ate taaasma : ae sunaennedcmeemanadtinerpeemenmamiaiindetinenenteenea akéenéfgyadthorityrTotgi 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALASKAfflG@ummmTpENERGYAUTHORITY Specit cally &| Executive Summary P Gard Wed Bo:er,The Tribal council of Noatak has expressed interest in using biomas¥as an alternative heating source. Five possible scenarios were evaluated dyring this investigation which would result in ennualfretsavings ranging from $4,000 to $35,000 in heating'costs annually.However,due to sparse biomass/timber abundance in the region,it is strongly cautioned that a r6pust forestry management plan be developed prior to further pursuit of biomass heating.-pen tean Ca rAl costs Community Disposition +Some alternat?3 Zcenari os mere attache Background On June 15",2016 Devany Plentovich and Dan Smith from AEA traveled with both Clara Jones from the Northwest Arctic Borough (NWAB)and Jackie Schaeffer from WH Pacific to Noatak,Alaska.The purpose of this visit was to engage the community regarding the potential for implementing biomass heating in various public buildings as a cost saving measure.The Tribal Council is interested in using a small cordwood boiler to heat the Tribal Office building,and had submitted a statement of interest to the Alaska Wood Energy Development Task Group (AK WEDTG). Existing Systems (Toyo)The current heating system enplose in nearly every building in the community is either an oil firedboileroraspaceheatingstove?In buildings with a boiler,a hydronic system is typically employed todistributetheheatthroughoutthebuilding,us:peek hot watel by nes feacne.er gohketThecommunityprimarilyheatsitsWaterTreatmentPlant(WTP)with a heat recovery systemfapulls584MMBtuofwasteheatfromtheCumminsQSX15G9generatorsinthenearbypowerhous¥.This system was originally constructed in the mid-1990s and repaired in 2012 by ANTHC;it is currentlydisplacing4,300 gallons of heating fuel.The WTP also has an oil boiler to supplement the heat recovery system which used approximately 4,400 gallons of heating fuel annually before the heat recovery system was installed.Based on commercial heating oil prices of ¥$7.00/gal,the heat recovery system saves the community roughly $30,100 annually. Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In estimates were a based on given usage values and values fromnearbycommunities.This then translates into *sTequired to heat a given building;from there a new cost and subsequent savings are found.fable only takes into account the fuel costs and does not reflect any capital costs or O&M costs typically associated with biomass systems. pac lade 07 [.Weed pote ;cork of wood =Xge!oi 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALASKA@ammpENERGYAUTHORITY |Size Gonual Oi}Mt Cords of Wood Annual Building (ft2)|Used (gal)equivalent (|Annually Savings Tribal Office 2500 }1200.00 16Q80 /|9.23 $5,169.23 Noatak Friends Church*4000 }1400.00 187.40 /|10.77 $6,030.77 Noatak Friends Church-Youth 1140 |900.00 120.6 6.92 $3,876.92 Center* Noatak Native Store*'|4864 |1400.00 187.60/\|10.77 $6,030.77 Maniilaq clinic*"5000 |2200.00 294.30 \|16.92 $9,476.92 Old school (north wing)**9300 |4200.00 56280 \|32.31 $18,092.31 Water Treatment Plant 3400 |4400.00 589.60 -\|33.85 $18,953.85 Annual Total 15700.00 2103.80 '|120.77 $67,630.77 Lifetime Totals (25 yrs)392500 52595 3019.23 $1,690,769.23 *estimated value **currently vacant;values depict renewed occupancy,updated energy efficiency measures,and infrastructure retrofits .,psyorThetotalannualsavingsfiguredepictsanidealscenarioinwhich-nearly every"community building is heated with biomass and the old school (which is currently vacant)would be repaired and repurposed.If this were the case,the community could potentially save over $1.5Min fuel costs over the life of theboilers.The lifetime savings figure assumes each buildinginCablerwould be heated exclusively withcordwoodbiomassinsteadofoil.After the capital costs and O&M associated with the installation of 3 boilers throughout the community are factored1r the lifetime sava would still be above $600,000.SL,IF iyi.id nid tnt Fhe Congtenctron ant Or SeScenarioswoalkstiresnllin$600,0004 ig fm.ee ofToadequatelyassessallpossibleoutcomes,several scenarios were considered and assessed.These scenarios were based on information collected duringa site visit on June 15,2016. -frormthis-informatierras well as data from previous,similar projects. For these evaluations,the Benefit/Cost ratio acts as a simplified decision making tool.A B/C ratio greater than 1.0 means that the project will save more money than it costs to implement.This number is generally driven primarily by the amount of heating oil displaced the higher the number,the higher the ratio,andthemorebeneficialitwillbe.' 1 -Individual Buildings . The Tribal Council originally submitted a statement of interest that only expressed interest in heating the Tribal Office building with a cord wood boiler.As shown in the table,heating only the Tribal Office Dullding would not be 2 sound Haanpia/dectsiom Because of this,two other buildings were explored forheatingwithabiomassboiler.hos 4 Vevy hwbe reko (Ve kigated The Clinic was the next choice,because it has a medium heating load.Installing a biomass boilerin the clinic would be more beneficial than installing one to heat only the tribal office.However,the economicsstillde-not peneitout-yield Re tet to tht?S$vonb Marg:aslly henet-c24 | maa 8mfakénergyauthorityzorg} 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALASKA@ummeENERGYAUTHORITY Different Scenarios Tribal Office Clinic WTP The third option Cord of Wood Annually 10 17 34 |investigated t-Weas Boiler life 25 25 95 |the water Capital cost*265,275.00 $265,275.00 |$265,275.00 treatment plant Annual O&M 300.00[$500.00]$500.00](NTP). Annual Fuel Savings 4,707.69 |_$8,630.77]$17,26154|yop is 9 ote i 117,692.31 $215,769.23 $431,538.46 |recovered heat (160,082.69)$(62,005.77)$153,763.46 |from the nearby Total Fuel Savings $ $ $ Total O&M $12,500.00 $12,500.00 $12,500.00 exclusively with $ $Lifetime Total Savings Simple Payback (years)63.05 32.63 15.83 powernousBICrati0.42 0.78 1.55 ecause of this,=the WTP doesnotuseanyheatingoilatpresent.Recemtiy-the community hasbeen evaluating the possibility ofrelocatingthepowerhouse;there is a possibility that this relocation would sau the existing heat recovery systenMineftective.If this relocation were to happen,using biomass as an alternative to oil and/or recovered heat would be a good choice.Over the life of the boiler $150,000 would be saved and result in a B/C ratio of 1.55.As appealing as this option is,it hinges on two key things happening.1)the powerhouse must be relocated and 2)the powerhouse must be relocated in such a way as to make continued heat recovery operations unfeasible for the WTP.The recovered heat could then be used for other buildings in its new vicinity. 2 -Small Heating Loop The first heating loop scenario would depend on a single Garn WHS 3200 boiler unit;it would run between the Tribal Office and a cluster of buildings 300ft away.The buildings contained in this cluster are the Noatak Friends Church,the nearby Youth Center,and the Noatak Native Store. Small Loop Scenarios Small Loop 1 (with Store)|Small Loop 2 (No Store)|In Loop 1,the Cords of Wood Annually 38 37 |Office,Church, Boiler life G 35 Youth Center, Capital cost™$335,812.50 $366,525.00 and the StoreAnnualO&M¥$500.00 $500.00 |included in theAnnualFuelSavings$19,223.08 $13,730.77 |calculations.By Total O&M $12,500.00 $12,500.00 |including these Total Fuel Savings $480,576.92 $343,269.23 |additional Lifetime Total Savings $132,264.42 $(35,755.77)|buildings,the collArby,/ Simple Payback (years)17.94 27.70 beings aB/C ratio 1.38 0.91)would pay for the capital cost over the life of the project.Heating Loop 1 would save well over $100,000 over the life of the boiler;it has a favorable B/C ratio of 1.4.However,if the Store is not included in the heating loop,the savings would rat.To recoup these losses,the boiler would need to be active past the expected life for at least another 3 years with regular maintenance (3 meant *A ke o a 2 - nei e eens47 years,whieh ia ,Meolaecke erlyofbse?Koo eaprtn ((ona Pop aA O-IC,Costs ae ..nine MONOMER Kerieroyacthorityrorst 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 f=220 is FineSIA3-Large Heating Loop 2Alargeheatingloopwouldbe very similar to a emenerelooppreviouslyoutlined.The primarydifferencewouldbethatthisheatingloopwoul buildingis unused and would requitgyAG Ve include'the North wing of the old school.Pamathisetrofits-and-meaintenancein order to be repurposed.Denny thes,<.hk veraaJeo,LeoaghLargeLoopScenariosLargeLoop1(with Store)|Large Loop 2 (no Store)|Because of the.iLe j MigCordsofWoodAnnually7060|size of the " Boiler life 25 25 |North wing of i”all beCapitalcos”$523,800.00 $494,268.75 |the old school,cles,ipheehAnnualO&M"$500.00 $500.00 |thereis 9 hous :potential for aAnnualFuelSavings$35,700.00 $30,207.69 very large te £yTotalO&M $12,500.00 $12,500.00 heating load,Un eulerTotalFuelSavings$892,500.00 _$755,192.31 |similar to that " C5 Lifetime Total Savings $356,200.00 $248,423.56 |of the water Simple Payback (years)14.88 16.64 |treatment plant. BIC ratio 1.66 1.49 |4s mentionedearlier,as more heating oil is displaced,the project becomes more attractive.The inclusion of a refurbished school building makes these projects very attractive.Both-ofthe large heating loops-presented_ Biomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.The Noatak subunit stretches 40 miles upriver of Noatak,20 miles downriver,and is 13 miles wide on average.In this report it was found that the Noatak subunit contains 4,915,124 ft?of timber.With the harvest range being limited to a 5-mile radius surrounding the Village of Noatak,this equates to 14,655 cords of wood within harvest range of the community. The Noatak subunit is comprised primarily of white spruce ¢-65%)with some balsa poplar/cottonwood ¢ 8%yand trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 8,958 cords of harvestable spruce and 1,424 cords of cottonwood within roughly a 5-mile radius of the community. Resource Cord Weight |Energy Harvestable Composition |(Ibs/cord)(MMBtu/cord)|Cords Spruce Harvest 0.6529 3100 18.1 8,958.61 Cottonwood Harvest |(8%0.09 2400 15 1,424.19 Other Harvest C27%2700 16.5 4,272.57 Weighted Average 2936 17.42 Total 14,655.36 --__,akenetyyauthorityrorg' 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 With 14,655 cords of wood in the harvest area and an average tree maturation rate o /= Ov ALASKA ENERGY AUTHORITY Moot years,the wood used by the community annually cannot exceed 1%of the total available resource in order to maintain sustainability.This equates to 146 cords per year.As mentioned earlier,if the majority of community buildings were to use biomass resources for heating,approximately 120 cords of wood would be required annually.The fact that these numbers are so close is concerning as over harvest could negatively affect the riverine environment and thus have dire consequences for the local subsistence lifestyle.man--aroot ay <a + Cords of Biomass Heating Scenarios Wood Annually Tribal Office 9.23 Clinic 16.92 WTP 33.85 Small Loop 1 (Store)37.69 Small Loop 2 (No Store)26.92 Large Loop 1 (Old School,no Store)|70.00 Large Loop 2 (Old School,Store)59.23 f .ff Legend ©Communities >noerak SubunitForeachofthescenariosoutlinedearlier,different amounts of wood would be needed.Those amounts are ."ae NANA Region Allotment ParcelsoutlinedineaeThewoodrequiredforeach-*hoetak Subunit Alounant percate | scenario evaluated is less than what would be needed for =oo wetheallcommunitybuildingstobeheatedwithbiomas"ae rrHowever,AEA strongly recommends a more detailed Po cc.'s weforestryevaluationofthesurroundingwoodresourcesSeeebwPe _ before further pursuing a biomass heating system.4 meh there fore within the ,bAEARecommendationsamon?Por SastajnahAllbupehMeeBasedontheinformationpresentedAEArecommendsamoredetailedfofestryanalysisbeconductedtoAnnanconfirmthebiomassabundanceandavailabilityinthearea.Once an in depth forestry anlysis has been hay est conducted for the region dire@ly surrounding Noatak,a timber harvest plan should be drafted in parallel with a feasibility report for a scenario similar to one outlined in this report.Out of all the scenarios presented in this report,only eee a positive B/C ratio should be considered at this time.sem lan Bo those --- fakenergVauthorityforgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALASKAGumpENERGYAUTHORITY Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available datas 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities,te3.The oil price is taken Bethe commercial rate of $7.00/gallon.Using the community retail rate of $10.00/gallon would make the economics more favorable. 4.Cords of wood required to heat a given building was based on the energy content of the weighted average of available timber in the region.A typical cord used would be 65%spruce,8%poplar and contain 17.42 MMBtu/cord.vePNrwyunit. 4.Loops 3 and 4 assume that Part of the North housing for the boiler units,thus reducing th -Capital Costs 5.Loops 3 and 4 assume 22 poiler units will provide heatGarn3. The price of Cord wood is,based on the price in Kobuk vhhiohte-<$356/eord=fos/eord OndryofCordAng... Boiler costs assume a Garn WHS 3200 ; The Single Building estimate can be used for any scenario involving heating individual buildings Loops 1 and 2 consider different lengths of arctic pipe required and draw heat from a single boiler ipg of the old school will be repurposed to act as ousing construction cost. Capital Costs Single Building |Loop 1 Loop 2 Loop 3-2 Garns |Loop 4 -2 Garns y Housing eonstracher [$35,000 $35,000 $35,000 |$15,000 $15,000 Boiler Cost $46,500 $46,500 $46,500 |$93,000 $93,000 Artic Pipe ($175/ft)|N/A $47,250 $70,000 |$105,000 $83,125 Piping/Hardware $45,000 $45,000 $45,000 |$45,000 $45,000 Thermal Storage $5,000 -$5,000 $5,000 $5,000 $5,000 Controls/Electrical $10,000 _$10,000 $10,000 |$10,000 $10,000 Heat Exchanger $5,000 $5,000 $5,000 $5,000 $5,000 Freight $50,000 $55,000 $55,000 |$110,000 $110,000 Subtotal $196,500 $248,750 |$271,500 |$388,000 $366,125 Engineering (15%)$29,475 $37,312 $40,725 |$58,200 $54,919 Contingency (20%)$39,300 $49,750 $54,300 |$77,600 $73,225 Total $265,275 $335,813 |$366,525 |$523,800.$494,269 C -Biomass Assumptions 1.Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. 2.Approximately 35%of the subunit is within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 1.65%white spruce 2.8%balsa poplar/cottonwood 3.27%other/deadwood 4.Cord calculations used 87 ft?to account for void space in wood stacking,this differs from the conventional 128 ft?figure used in a 4X4X8ft cord. -akenergyauthorityrorgt 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1907.771.3000 Toll Free (Alaska Only}888.300.8534 F 907.771.3044 August 9,2016 /=ALASKA@umme@®ENERGY AUTHORITY D -Site Photos Ree ba ay boty KO RE NCB OERN SF |Noatak downtown region. ,e 4-Old School Building.The South Wing ;is scheduled for demolition,the North Wing(s)require retrofits to become suitable for use. ¢6-Noatak Friends Church e 7 -Noatak Friends Church -Youth Center e 9 -Noatak Native Store e 12 -Tribal Office e 10 -Powerhouse e 14 -Water Treatment Plant ©15 -Water TankSPOorTley :J ores {x3 |Maniilaq Clinic.Relatively distant from other cee i "=.|public buildings. H 5 Tribal Office Building C --".akenérgyauthorityrorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 August 9,2016 /=ALAS KA@amm®ENERGY AUTHORITY Water Treatment Plant Representative forested area in region.Note that the growth is denser near the river. so2Peele)+4 = -taeieziBeeeoFanOlSeccrreeeee Aerial view of Noatak.Airstrip to the left. Downtown area along river.The new school is the building furthest from the river. E -Statement of Interest See Attached F -Maniilaq Forestry Inventory See Attached |_-_east ee esi hefgyauthoritytorg} 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 joo{t:%" 2 n°| ar Ve - yekowot 9.-%Alle *>Loyi""a AIDEA and Al 3063]AlanFetters #441-8034 Project Manager 3018{Althea Clapp Senior Contracting Officer 3013]Amy Adler Finance Controller 3990]Andy Morton Contracting Officer 3957]Betsy McGregor 503-312-2217 |Environmental Manager 3037]Bill Phelan Loan Officer Il 3090|Bob Havemeister #748-7195 Rural Electric Utility Worker (WH) 3023{Brandi White Accounting Technician II 3021]Brenda Applegate Finance Controller 3065]Bryan Carey #382-0949 Engineering Manager 3039]Cady Lister Lead Economist 3010]Carmen Noble Finance Assistant 3030]Chris Anderson Commercial Finance Director 3989]Chris Gobah Energy Development Planner 3091]Curtis Hanson #242-2158 Rural Electric Utility Worker (WH) 3045]Daniel Hertrich Program and Project Manager-Hydro 3983]Daniel Smith #744-1454 Project Technician 3016|Danita Martin Loan Servicing Supervisor 3062]David Lockard #444-5326 Lead Engineer 3068]Devany Plentovich #602-6574]Project Mgr -Biomas 3067}Doug Ott Civil Engineer-SU-WA 3034}Elsie Wertz Human Resources Technician 3961}Emily Ford #360-2131 Energy Policy and Outreach Mgr 3029}Eric Johnson Accounting Analyst 3987|Gene Therriault #907.347.3300 |AIDEA!EP Team Lead 3918}Janelle Sta.Cruz AEA Administrative Assistant 3985}Jed Drolet Energy Information Analyst 3046]Jeff Williams Program Manager -PCE (General Notary) 3070]Jennifer Bride Financial Systems Analyst 3011]Jennifer Haldane #331-7764 |Human Resources Director 3071]Jenny Brown AIDEA Assistant Controller 3026]Jessica Stolp Project and Facilities Coordinator 3914|Jessie Huff Energy Development Specialist 3064}Jim Vail #854-3180 Project Manager 3913]Jocelyn Garner AEA Assistant Controller anns ladin banal Arrauntant Il oe50[ee June 15",2016 Devany Plentovich and Dan Smith from AEA traveled with'Clara Jones from the ion July 21,2016 /=ALASKAGumENERGYAUTHORITY Biomass Heating Feasibility in Noatak,AK Prepared by:Dan Smith Nn ut)Ve Au muitMt Background beth orthwest Arctic Borough (NWAB)and Jackie Schaeffer from WH Pacific to Noatak,Alaska.The purpose of this visit was to engage the community regarding the potential for implementing biomassfoneatinginvariouspublicbuildingsasasacostsavingmeasure.The Tribal Councilis interestedin using aeeaeOSE b.Cenassdef4 ion J or ak ace heatirfy'stove.In buildings with a boiler,a hydronic system is typically employed tod 16vo small cordwood boile {fice building,and had submitted aftate entotii a to theAlaskaWoodEnergyDevelopmentTaskGroup(AK WEDTG).-dadWw Current Heating System The current heating system employedin nearly every buildingin the community is either an oil fired istributethe heat throughout the building. The community primarily heats its Water Treatment Plant (WTP)with a heat recovery system that pulls 584 MMbtu of waste heat from the Cummins QSX15 G9 generators in the nearby powerhouse.This system was originally constructed in the mid-1990s and repaired in 2012 by ANTHC;it is currently - displacing 4,300 gallons of heating fuel.The WTP also has an oil boiler to supplement the heat recovery system which used approximately 4,400 gallons of heating fuel annually before the heat recovery system was installed.Based on commercial heating oil prices of $7.00/gal,the heat recovery system saves the community roughly $30,100 annually. Planned Construction Noatak has,in recent years,begun determining the feasibility of relocating the powerhouse and associated tank farm further away from the river;this is primarily due to environmental concerns.The community is also exploring the possibility of severing ties with AVEC (Tribal Resolution 10/29/2015).The relocation of the powerhouse could potentially render the existing heat recovery system in the WTP unfeasible.A substantial heating load would then need to be filled;the hydronic system alreadyin place could,withminoradjustmentsbeheatedwithabiomassboiler., Depending on the location of the proposed new powerhouse,the heat recovery system could be redirected to other buildings in the area.Based on the existing heat recovery system the available heat from a new power house would be able to displace at least 4,000 gallons of heating fuel.This would save the community $28,000 annually. Community-wide Biomass Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In Table 1,estimates were created based on given usage values and values from nearby communities.This then translates into MMbtu's required to heat a given building;from there a new cost and subsequent savings are found.Table 1 only takes into account the fuel costs and does not reflect any capital or O&M costs typically associated with biomass systems. Makenérgyauthorityiorg? 813 West Northern Lights Boulevard Anchorage,Alaska 99503 7 907.771.3000 Toll Free (Alaska Only)888.300.8534 €907.771.3044 July 21,2016 Gum ENERGY AUTHORITY Table 1:Fuel Savings Building Size |Annual Oil |MMbtu cords of wood Annual (ft2)|Used (gal)equivalent |required Savings Tribal Office 2500 |1200.00 160.80 9.23 $5,169.23 Noatak Friends Church*4000 |1400.00 187.60 10.77 $6,030.77 Noatak Friends Church -Youth Center*1140 |900.00 120.60 6.92 $3,876.92 Noatak Native Store*4864 |1400.00 187.60 10.77 $6,030.77 Maniilaq clinic*$000 |2200.00 294.80 16.92 $9,476.92 Old school (north wing)**9300 |4200.00 562.80 32.31 $18,092.31 Water Treatment Plant 3400 |4400.00 589.60 33.85 $18,953.85 Annual Total 15700.00 2103.80 120.77 $67,630.77 Lifetime Totals (25 yrs)392500 52595 3019.23 $1,690,769.23 *estimated value **currently vacant;values depict renewed occupancy,updated energy efficiency measures,and infrastructure retrofits The total annual savings figure depicts an ideal scenario in which nearly every community building is heated with biomass and the old school (which is currently vacant)would be repaired and repurposed.If this were the case,the community could potentially save over $1.5M in fuel costs over the life of the boilers.The lifetime savings figure assumes each building in Table 1 would be heated exclusively with cordwood biomass instead of oil.After the capital costs and O&M associated with the installation of 3 "4boilersthroughoutthecommunityarefactoredin,the lifetime savings would still be above $1M -AckudeeaetayCENUW,Individual Biomass Systems m (MO Switching nearly every community building to a biomass heating system is unrealistic at this time due to a multitude of logistical factors.For this purpose,closer examination of the Tribal Office and the Clinic has been conducted.Phete of ualol';aeTable2:Payback Analysis for the Tribal Office and Clinic Xv Tribal Office Clinic Taken separately,the clinic would save dy Boiler life 25 25 |more than $120,000 over the life of the »Weani ;boiler and would have a paybackA'a ane oe :ere :SD period of 8.5 years.The Tribal OfficexyRYAnnualOcsaowouldnotfareaswell,saving $16,000\p [Total O&M $50,000.00}$50,000.00 |over the life of the boiler,and would Annual Fuel Savings $5,169.23 S 9,476.92 have a payback period of 20 years. Total Fuel Savings S$129,230.77 |$236,923.08 However,if the O&M costs were split Lifetime Total Savings |$16,455.77 |$124,148.08 |between the two building owners (have Simple Payback (years)19.81 8.40 the same maintenance person stokebothboilers,or implement some type of shared labor agreement),this would make the implementation of a biomass system even more attractive for each building.The Tribal Office and Clinic would then see payback periods of 15.5 and 7.5 respectively.Even more beneficial would be to simply add the task of boiler stoking as an existing job requirement (maintenance person,clerk,etc...)or working out a type of barter system with a community member. cc akenetgyauthoritysorgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 |July21,2016 /=ALASKAQueENERGYAUTHORITY Biomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an f inventory of forestry resources within the Northwest Arctic Bourough;specifically,in the Noatak and Kobuk subunits. The Noatak subunit stretches 40 miles upriver of Noatak, 20 miles downriver,and is 13 miles wide on average.In this report it was found that the Noatak subunit contains 4,915,124 ft*of timber.With 40%of the subunit being within an approximate 10-mile radius of the Village of Noatak,this equates to 23,043 cords of wood within harvest range of the community.ifThe Noatak subunit is comprised primarily of white spruce | ( 65%)with some balsa poplar/cottonwood ( 8%)and trace amounts of other species interspersed.Assuming a TD neatak Subunit GP NANA Region Atioement Parcels uniform species distribution of spruce and cottonwood as =L_af Nosers suownte AnotmentParcie 65%and 8%respectively,this equates to 18,900 cords of Cc.0.4 04%. harvestable spruce and 2,246 cords of cottonwood within Teh sf te roughly a 10-mile radius of the community.:ved gt une -2 =ae ere "roe With 23,043 cords of wood in the harvest area and an average tree maturation rate of 100 years,the wood used by the community annually cannot exceed 1%of the total available resource in order to maintain sustainability.This equates to 230 cords per year.This is almost double what the community would consume if the majority of the community buildings were to use biomass heating systems as discussed earlier.(/y wot luttedCandWc Figure 1:Region of Noatak Subunit accessible to Noatak Citizens Table 3:Biomass Around Noatak Wood within Wood Unit Weight |Cords Energy Content Harvest Radius |Available (ft3)|(ibs/ft3)Available |(Mmbtu/cord) Total Amount 1,966,049.60 23,043.10 Spruce 1,277,932.24 31.00 |15,120.57 18.10 Cottonwood 157,283.97 24.00 |1,797.53 15.00 Other 530,833.39 27.00 |6,125.00 16.50 Assumptions Used in Calculations 'Fuel Assumptions\s e Annual fuel use by building is calculated by creating a ratio based on other nearby communities.For example;if the clinic in Ambler uses X;fuel and has a size of Yi,and the clinic in Noatak is size Yo,then the Noagtak clinic must use X2 Fuel.Pw °fFYXoThismethod assumes similar use patterns depending on the building function. o This method is only used when actual usage data is unavailable. MEdkenergyauthorityfotg} 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 July 21,2016 /=ALASKA@ummeENERGYAUTHORITY e The oil price is taken as the commercial rate of $7.00/gallon.Using the community retail rate of $10.00/gallon would make the economics more favorable. e Cords of wood required to heat a given building was based on the crerey content of the weightedaverageofavailabletimberintheregion.A typi i cord-use,e 65%spruce,8%poplar and contain 17.42 MMbtu/cord.feThepriceofCordwoodisbasedonthepricein Kobuk whichis $350/cord. Construction/Implementation Assumptions e Annual O&M was taken to be $2000 per,oiler system.This covers routine maintenance and #stoking costs.--/)Mars ae.BOeTable4showscostsusedincreatingacapitalcostestimate.hidueLaki,}cet ruthTable4:Capital Cost Estimation £f iBoilerCapitalCostsGaLabor/installation $8,000.00 Ww Gg.CODBoiler$13,000.00 rove Site XO Building/storage $13,000.00 Thermal storage $1,000.00 Thermal Efficiency Measures |$1,000.00 Piping/hardware $3,000.00 Controls $500.00 Freight $7,000.00 Subtotal $46,500.00 Engineering (15%)$6,975.00 Contingency (20%)$9,300.00 Total $62,775.00 Biomass Availability Assumptions e Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. Approximately 40%of the subunit is within approximately 10-miles of Noatak o This yielded harvestable amounts used for calculations. o 50%was used because of the density of studies areas present in the forestry report,the majority of land parcels the Noatak subunit are located near the village of Noatak. The distribution of tree species is: ©65%white spruce o 8%balsa poplar/cottonwood o 27%other/deadwood Cord calculations used 87 ft}to account for void space in wood stacking,this differs from the conventional 128 ft?figure used in a 4X4X8ft cord. Summary of Findings Approximated calculations have shown that a biomass heating system in the Tribal Office is marginally feasible.As more biomass heating is added to the community,and possibly integrated into a single large fakenefgyauthorityrorgt 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 July 21,2016 /=ALASKAGameENERGYAUTHORITY system,the economy of scale makes this approach more appealing.Forestry estimates have shown that the area surrounding Noatak can sustainably support timber harvest operations of up to 230 cords per year. Attached is a larger map of the Noatak Subunit and tables showing more conservative estimates. TTT 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 Joly 21,2016 jeFER\Game ENERGY AUTHORITY 680'0°NPd '=m PF ¢LaNofatak 67°300°NJ Legend @ Communities Cc)Noatak Subunit Pe NANA Region Allotment Parcels cA Noatak Subunit Allotment Parcels 0 10..20 a }' .ot eae Miles a :" i )a 2° 163 'OO"'W 162 00°W akehergyauthorityrorgyneem 813 West Northem Lights Boulevard Anchorage,Alaska 99503 7 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 .|July 21,2016 I=SAASKAGumENERGYAUTHORITY Conservative values Community Lifetime calculations Boiler life 25 Capital cost*S 188,325.00 District Heating Loop $10,000.00 Annual O&M*S 7,500.00 Total O&M S 187,500.00 Annual Fuel Savings S 61,592.31 Total Fuel Savings $1,539,807.69 Lifetime Total Savings $1,153,982.69 Simple Payback (years)4.27 B/C ratio 3.99 units *estimates are based on the purchase,installation,and operation of 3 boiler Conservative values Tribal Office Clinic Boiler tife 25 25 Capital cost*S 62,775.00 S 62,775.00 Annual O&M*$2,500.00 $2,500.00 Total O&M $62,500.00 S$62,500.00 Annual Fuel Savings S 4,707.69 S 8,630.77 Total Fuel Savings S 117,692.31 S$215,769.23 Lifetime Total Savings S (7,582.69)S 90,494.23 Simple Payback (years)28.43 10.24 B/C ratio 0.94 1.72 These calculations used more conservation values as follows: e Annual O&M =$2500 ®Wood =$400/cord fakenergyauthorityrorg? 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 \)ew Strac hareNOee I Executive S mymrary 2 based:existing systems/bacKarovrel <a Generel Fael Savings Y.Scenarios=Tahal office alone -Ch rc a anehebaloff.te Loop adel Map On \wTPaedloopw/ol school aeBromass Pesourtesadend,stress tlhatocloserevalaatconbeCondacteh bv Recom menda f ons 7.Agpen dixStatinapp Maton from Commun tyAssumption$brea kK down 'Fue *ConSdevetion e Biomass Daniel L Smith From:Patrick F Sullivan <pfsullivan@uaa.alaska.edu> Sent:Thursday,August 04,2016 10:52 AM To:Daniel L Smith Subject:Re:NWAB timber growth Hi Dan, In 100 yrs,I think you could conservatively expect a surviving seedling near Noatak to become a tree of approximately 10 cm ( 4")in diameter at breast height.I'm not aware of any studies of shrub productivity near Noatak,but a lot of work has been done in the northern foothills of the Brooks Range at Toolik Lake.Based on those numbers,I think you could probably expect another 100 g/m2 (890 Ibs/acre) of annual aboveground production in shrub tundra. I have a hard time envisioning how you would harvest shrub biomass without tearing up the landscape, though.My gut feeling is that the forest and tundra near Noatak are not productive enough to support biomass burning for energy.The risk is high as well.People in Noatak depend heavily upon caribou, moose and fish.Harvesting biomass from the area around Noatak (most of which is on the other side of the river)could adversely affect the availability of those important subsistence resources.I think you would be better off looking at solar and wind resources to reduce their dependence on fuel.The solar resources are excellent in Noatak during the summer months (I run a lot of equipment on solar),while the wind resources should be adequate year-round.You could even consider micro-hyrdo. Those are my two cents... Paddy From:Daniel L Smith <DSmith@aidea.org> Sent:Tuesday,August 2,2016 5:33 PM To:Patrick F Sullivan Subject:RE:NWAB timber growth Paddy, This confirms some numbers |have been working with up until now.In terms of harvest and growth rate |have been assuming a 100 year return period for harvest and therefore a maximum allowable harvest of 1%of available timber annually.Does a 100 year growth period sound sustainable to you?|am also pondering if it would be possible to use shrub biomass.Do you have any information about what shrub growth looks like in the region? Thanks, Dan From:Patrick F Sullivan [mailto:pfsullivan@uaa.alaska.edu] Sent:Monday,August 01,2016 5:06 PM To:Daniel L Smith <DSmith@aidea.org> Subject:Re:NWAB timber growth Hi Dan, t. I could combine our tree ring data from just east of Noatak with allometric equations for white spruce to give you really detailed estimates of tree biomass production that could be broken down into foliage and stem wood.It looks like the Google Earth imagery is good enough near Noatak to count trees ina fixed area and come up with a conservative estimate of stand density.I could combine those two sources of information (tree productivity)and stand density (trees/area)to give you tree biomass production per unit ground area.I assume that's what you're looking for? The bottom line is that tree productivity (and regeneration rates)in this area are really low,as Noatak is not far from the northern limit of the boreal forest.Just to give you a sense,previous studies near Noatak have found that it takes about 15 years for a sapling to reach breast height.A study on the Kugururok,Meee eee of Noatak (and closer to the forest limit),estimated tree biomassproductionaSoeatteg/m2 (890 Ibs/acre).I assume that a sustainable harvest would needtobelessthanroduction? Let me know what you think. Paddy From:Daniel L Smith <DSmith@aidea.org> Sent:Monday,August 1,2016 9:25 AM To:Patrick F Sullivan Subject:FW:NWAB timber growth Hi Paddy, 1 have been informed by memebers of the Parks Service that you are an excellent knowledge resource about the spruce growth in the Northwest Arctic Borough.|am conducting a biomass heating feasibility study for Noatak and was hoping you could tell me about growth rates in the area.|am also wondering what a sustainable harvest rate would look like. Thanks, Dan From:Hasselbach,Linda [mailto:linda_hasselbach@nps.gov] Sent:Monday,August 01,2016 7:23 AM To:Daniel L Smith <DSmith@aidea.org> Ce:Atkinson,Hannah <hannah_atkinson@nps.gov> Subject:Re:NWAB timber growth Hello Dan.Yes,the research you are referring to is being conducted by Paddy Sullivan at UAA.He's been studying spruce and the drivers of spruce growth in that area for years.He would be an excellent contact for your purposes: Dr.Patrick Sullivan University of Alaska Anchorage pfsullivan@uaa.alaska.edu 907-440-2865 Best of luck. Linda > On Thu,Jul 28,2016 at 4:21 PM,Daniel L Smith <DSmith@aidea.org>wrote: Hannah, |hope you enjoyed your time in the field;|always do! In terms of forest inventory,|have a report that Maniilaq commissioned from TCC.The report touches on growth rates and definitely covers the quantity of biomass present.If you'd like |could share this with you. However,more information is always fantastic to have. Linda, What |would like to know more of is how fast the trees grow around Noatak;specifically how long would it take to for an area of forest to be replenished after harvest.!am also curious about what other types of biomass (shrubs)grow in abundance in the area. Thank you, Dan Smith 907-771-3983 DSmith@aidea.org =TERA\GaP ENERGY AUTHORITY From:Atkinson,Hannah [mailto:hannah_atkinson@nps.gov] Sent:Thursday,July 28,2016 1:25 PM To:Daniel L Smith <DSmith@aidea.org>;Linda Hasselbach <linda_hasselbach@nps.gov> Subject:Re:NWAB timber growth Hi Dan, I apologize for my tardy response,I've been out in the field most of this month.I don't think we have a forestry inventory,but we do have some information on tree growth from a UAF ecologist who has worked in Noatak National Preserve for a number of years.I have cc'd Linda Hasselbach,so she can put you in contact with Paddy Sullivan. Linda coordinates with all research projects,large groups of visitors,and land-use projects.Glad that we were at the same tribal council meeting so that the National Park Service can be included early in the conversations for this sustainability project for Noatak. On Wed,Jul 6,2016 at 1:46 PM,Daniel L.Smith <DSmith@aidea.org>wrote: Hi Hannah, We had met in mid-June;I was presenting to the Tribal council about biomass in Noatak with Devany Plentovich on 6/15.I recall we briefly discussed the Park Service conducting a forestry inventory with a segment on tree growth rates.Unfortunately the specifics have gotten away from me.Would you be able to refresh my memory?And when do you think the report will be finished? Thanks, Dan Smith 907-771-3983 DSmith@aidea.org /=GED ENERGY AUTHORITY Hannah Atkinson,Cultural Resource Specialist National Park Service |Western Arctic National Parklands P.O.Box 1029/171 3rd Ave.|Kotzebue,AK 99752-1029 907-442-8342 |hannah _atkinson@nps.gov Linda Hasselbach Research Coordinator Western Arctic National Parklands 509-341-9198 linda_hasselbach@nps.gov Community Profile:Noatak (Noatak Valley) Incorporation Unincorporated in Norhtwest Arctic Borough Location Noatak is located on the west bank of the Noatak River,55 miles north of Kotzebue and 70 miles north of the Arctic Circle.This is the only settlement on the 396 mile-long Noatak River,just west of the 66-million acre Noatak National Preserve. Longitude -162.9653 Latitude 67.5711 ANCSA Region NANA Regional Corporation Borough/CA Northwest Arctic Borough School District Northwest Arctic Borough School District AEA Region Northwest Arctic Alaska Native Name (definition) Noatagamut,"Inland River People" Taxes Type (rate) N/A Per-Capita Revenue N/A Historical Setting /Cultural Resources The village is Inupiat Eskimo.It was established as a fishing and hunting camp in the 19th century.The rich resources of this region enabled the camp to develop into a permanent settlement.The 1880 census listed the site as Noatagamut,which means "inland river people."A post office was established in 1940. Economy Subsistence activities are the central focus of the culture,and families travel to fish camps during the summer.68%residents employed:71% private sector,28%local government,and 1%state government. Climate Avg.Temp.Climate Zone Heating Deg.Days -21/60 Arctic 15,229 Natural Hazard Plan All-Hazards Mitigation Plan (borough-wide)2009 Community Plans Year NWAB Comprehensive Plan (borough-wide)1993 Local Contacts Email Phone Fax NANA Regional Corporation,Incorpor communications@nana.com 907-485-2173 907-485-2137 Native Village of Noatak tribeadmin@nautaaq.org 907-485-2173 907-485-2137 Northwest Arctic Borough info@nwabor.org 907-442-2500 907-442-2930 Demographics 2000 2010 2013 Population 428 514 Percent of Residents Employed 68.00% Median Age 23 23 Denali Commission Distressed Community No Avg.Household Size 5 5 Percent Alaska Native/American Indian (2010)94.75% Median Household Income N/A $58,250 Low and Moderate Income (LMI)Percent (201x)N/A Electric Utility Generation Sources Interties PCE? Alaska Village Electric Cooperative (AVEC)Diesel No Yes Landfill Class It Permitted?No Location Gravel road north of runway Water/Wastewater System Homes Served 77 System Volume Water Circ/heated system 50,001 -100,000 Sewer Gravity Water/Wastewater Energy Audit?No Notes 1/2 homes not served by water/wastewater system Access Road No Air Access Noatak Airport,gravel,good condition Runway 1 3,992 ft.x 60 ft.Runway 2 N/A Runway 3 N/A Runway 4 N/A Dock/Port No Barge Access?No Ferry Service?No Power House Utility AVEC Energy Profile:Noatak Power Production Diesel (kWh/yr)1,869,341 Avg.Load (kW)219 Generators Make/Model Rated Capacity =Condition/Hrs Wind (kWh/yr)O Peak Load (kW)443 Unit 1 Kato/4P3-1475 314 kw Hydro (kWh/yr)0 Efficiency (kWh/ga 14.57 Unit 2 Newage/HCI534F1 499 kw Total (kWh/yr)1,869,341 Diesel Used (gals/y 128,286 Unit 3 Newage/HCI534Cl 397 kw =250 Unit 4 s Unit 5 2 2.00 Line Loss 4.50%s aa Heat Recovery?No &1.50 Upgrades?& Outage History/Known Issues vy 1.00 ti 0.50 Operators No.of Operators Training/Certifications 0.00 2008 2009 2010 2011 2012 2013 2014 --Diesel --Hydro ome WindMaintenancePlanning(RPSU) Electric Sales No.of Customers kWh/year kWh/Customer Electric Rates ($/kWh)Cost per kWh Sold ($/kWh) Residential 117 837601 7158.982906 Rate with PCE 0.22}Fuel Cost 0.55 Community 3 223474 24830.44444 Residential Rate 0.88!Non-fuel Cost 0.23 Commercial 26 679652 26140.46154 Commercial Rat 0.87)Total Cost 0.78 Utility Use N/A N/A Fuel Prices ($)_Utility/Wholesale Retail Senior Electric Sales by Customer Type Diesel (1 gal)9.99 6.76 (kWh/year)Other Fuel?(1 gal) 48%39%Gasoline (1 gal)9.99 13%Propane (100#) Wood (1 cord) TI 0%Pellets Residential Community Commercial Utility Use Discounts? Alternative Energy Potential Projects/Notes Status Hydroelectric Low Wind Diesel Low Class 4,Met Tower,feasibility study complete Biomass Medium Pre-feasibility study recommended;AWEDG would provide study at no cost Solar High Solar PVs planned for Noatak,high potential for solar farm Geothermal Low Oil and Gas Low Coal Low Emerging Tech Unknown Heat Recovery =High Energy Efficiency High Homes &schools provided w/extra TED meters 2014/2015;2014 TED training Bulk Fuel Purchasing Deliveries/Year Gallons/Delivery Vendor(s) Tank Owner Fuel Type(s)Capacity Age/Condition By Barge 28 125,770 AVEC AVEC Diesel 99,800 By Air IRA Diesel 91,800 Cooperative Purchasing Agreements School Diesel 89,500 Notes ww Energy Profile:Noatak Housing Units Occupied Vacant %Owner-Occup.-_Regional Housing Authority Weatherization Service Provider 114 0 69%NIHA NIHA Housing Need Overcrowded 1-star Energy Use Average Home Average Avg.EU Energy Rating Square Feet (kBTU/sf) Data Quality Age of Housing Stock Energy Efficient Housing Stock 100% Earlier 1940s 1950s 1960s 1970s 1980s 1990s 2000-11 Retrofitted BEES Certified Untouched Lighting Upgraded?Owner Notes Non-residential Building Inventory Building Name or Location Year Built Square Feet Audited?Retrofits Done?In ARIS? AIRPORT ELECTRICAL 2000 96 No Elem.&High School 1980 11461 No EQUIPMENT STG BLDG 1993 2000 No Esther Barger Memorial Health Center 2004 5000 No IRA Building 1983 2592 No Jail House 1987 No Maintenance/generator shop 1240 No 'Middle School 3120 No Noatak Friends Church 1980 4000 No Noatak Native Store 1968 4864 No Noatak Post Office 1970 1512 No Storage bldg.336 No Water Treatment Plant No Statement of Interest In Developing Wood-Fired Heating Projects information from this form will be used in ranking your project for a pre-feasibility assessment that will be conducted by a contractor hired on behalf of the Alaska Wood Energy Task Group. Not all applications can be funded Electronic copies of this form can be downloaded from the Alaska Energy Authority website at http://www.akenergyauthority.org/biomasswoodenergygrants.html Applicant:|Native Village of Noatak []Local Government []School []State Agency []Not-For-Profit Organization []Federal Agency [X ]Federally Recognized Tribe:__Native Village of NoatakEligibility:|[]ANCSA Corporation: {JOther: []Commercial Enterprise (identify industry sector): Contact Name:Herbert Walton PO Box 89 Mailing Address: City:|Noatak State:|AK Zip Code:|99761 Telephone:|907-485-2173 Fax:907-485-2137 Email:|tribeadmin@nautaaq.org Please refer to Frequently asked Questions for more information on completing this Statement of Interest. Please respond to the following evaluation criteria:(Attach additional pages as necessary) 1.Please include a short paragraph on what your objectives are with this project. Our objectives with this pre-feasibility assessment is to truly assess if our biomass resource can sustain one or more projects in our community.In 2011,with funding from the Alaska Energy Authority (AEA),the Northwest Arctic Borough contracted Tetra Tech to complete a Feasibility and Design report for the Upper Kobuk,our neighboring northern communities. This study proved not only that it was feasible,but these projects are currently under construction and show great potential for energy-cost savings for those communities.Our local topography is very similar to our sister communities and we are hopeful that we too can help lower the cost of energy in our village. Questions 2-3 are specific to individual buildings.Applications can include more than one building.PLEASE SUBMIT A COPY OF THIS PAGE FOR EACH BUILDING Facility Identification/Name:___Tribal Office Building 2.Facility information Approximate size (square footage)of building 2500 Type of construction (wood,cement,etc.)Wood Age of building Unknown What is building used for?Tribal offices and meetings Has building had a recent energy audit?Yes What is the age of the current heating system?Unknown What type of current heating system is in place? (Radiant,forced air,baseboard etc.) 1.Weil McClain Boiler -baseboard 2.Toyo Stove forced air blower 3.Current fuel situation Type of fuel used (#1 fuel oil,#2 fuel oil,propane,etc.)|#1 Fuel oil Annual fuel consumption (gallons)1200 Cost of fuel per gallon 10.99 Cost of electricity per kWh 0.88/Kwh 0.21 after PCE Please attach other facility information that would be useful,such as Maps,Photographs,As- built Survey,etc. Questions 4 --10 are general questions -answer only once per application -not required for every building. 4.Presence of high-hazard forest fuels Describe any forest fires or insect outbreaks in the past 5 years: Discuss any activities to utilize dead/dying material: Drift wood collection. Discuss any activities or programs that would mitigate the effects of future fires or infestations: None currently active. 5.Resource Issues Where would you plan on getting wood from? Drift wood and local!cut wood from local woodcutter. Discuss the ownership of nearby forest lands and any agreements there may be to harvest trees (live or dead)from those lands. NANA Regional Corporation owns the surrounding land and an agreement would be signed to access NANA lands for extraction of wood. Discuss the extent and sustainability of local forest resources and wood supply: We think that there is enough local wood to sustain a few biomass projects and would like to find out to what extent we can utilize this resource. Discuss wildlife habitat or other forest health issues you may have: No concerns Is there a LAND MANAGEMENT PLAN in place for the area of wood source? No Do you have access to other wood (i.e.drift wood,wood pellets,bio bricks etc.)? Yes,driftwood and pallets 6.Availability of local wood processing residues (e.g.,slabs,chips,bark,sawdust,shavings,etc.)- e =List any known wood processors near your community.Include owners'names and contact information.None ®What do those processors currently do with their residues? N/A 7.Wood Fuel Availability ©What type of woody biomass are you interested in for your system (pellets,chips, cordwood,etc.) Cordwood e Provide anticipated cost for the woody biomass planned on being used. Unknown. 8.Discuss community support/advocacy,or which agency will be the project champion for this project e Please tell us about your community advocate (or advocacy group) Our community stakeholders engaged in the Regional Energy Plan efforts meet regularly, but the Native Village of Noatak,Northwest Arctic Borough and NANA Regional Corporation will be the advocates on this project.See attached letter of support. e Does your community have any other wood energy systems?If yes,please identify the system. No e Have you had any meetings to discuss wood energy? It has been discussed in the Regional Energy Plan 9.Please provide a narrative or description on how you see this project being operated and maintained in your community. Wood would be purchased from local wood cutters for this single project. 10.Discuss what,if any,public benefit will result from this project. Public benefits would include,a new "local”renewable energy resource that could sustain the Tribal building and possibly households that would like to convert to Biomass. 11.Please include any other information that should be considered for this project. Return Statement of Interest to: Karen Petersen University of Alaska Cooperative Extension Service P.O.Box 19190 Thorne Bay,AK 99919 (907)821-2681 khpetersen@alaska.edu It is preferred that Statements of Interest are submitted electronically (via e-mail)but paper copies will be accepted via mail (no fax). OBOKRIVER(NAZURUKCHANNEL)SasaSatieee;2meso=ggehooh bys. (Sucosevor In intirest to + Puteo Oarperation} =]NOORVIK TOWNSITE,U.S.SURVEY 5069. DEED TPE ADA Tract-e Le Ne NOORYE TOWNSITEeaseAgreements to the pI Recorded 2{20, Ke) fh Ok 44,Pon.450-478,pY908 BESBSISSESIL8Ssoe 49°89°N18)"02"20"W (NAD 83) Township 17 North,Range 1)West,Katee!River Meridian,AK US.G.S.Quadrangle "SELAWIK (D-4)&(0-5)".Alaska 15.Noorvik Schoot (K-12)* 6017 hone aarate3 of NeeetPublicSafetyBuildingWaterTreatmentPlantrar,City 'Boye &Cirts Club : * Vater Tank _cit ageMorrisTrading Post Elders StorageSallyHarveyMemorial Clinic Shed Pump House Municipal Storage Shed Community MapNOORVIK Approximate Elevation:40° XOTZEBUE RECORDING DISTRICT LEGEND Residential Building .Water Line Commercial Building +Sewer Line Public Building Sewer Force Kein Electric@BreorSoortinates+Electric &Telephone ANCSA 14{e}"Fuel Line Spring Flooding Area age of ©Swimming Area of Water Recovered Heel Line 24_&25 |25 |Truvive Deed been Lon:CWRER BOR]PACES)UATE °100 200 1=3 S_[OM Claim Geed [NorthwestInuplatHovalng Kuthorlly |38 |e76-aa0 |2/78/1000.ba - 16,21,&221 3 |Trittee Deed Northwest _Inuplat Housing Authority |7a 829 TAR 'SCALE:1"=100"a 19 &20 S|Trustee Deed |NorthwestinupictHousing Avihority |5 31S 2/4/1977)FM vate ot dune 12,2013 SCALE IN FEET City of Noorvie fs 1 'AA fe Magnetic Declination computed by USCS Ceomag SHEETokProgramusingIGRPI1COFmodelauofAugust1.2013 of 4 NOORVIKCOMMUNITYWAPSHEET2(Zof4)1°=100"(2013PHOTOGRAPHY) Community Profile:Noorvik (Lower Kobuk) Incorporation 2nd Class City,1964 Location Noorvik is located on the right bank of the Nazuruk Channel of the Kobuk River,33 miles northwest of Selawik and 45 miles east of Kotzebue.The village is downriver from the 1.7-million acre Kobuk Valley National Park. Longitude -161.0328 Latitude 66.8383 ANCSA Region NANA Regional Corporation Borough/CA Northwest Arctic Borough School District Northwest Arctic Borough School District AEA Region”Northwest Arctic Alaska Native Name (definition) Noorvik,"a place that is moved to" Taxes Type (rate) N/A Per-Capita Revenue $70 Historical Setting /Cultural Resources The village was established by Kowagmuit Inupiat Eskimo fishermen and hunters from Deering in the early 1900s.The village was also settled by people from Oksik,a few miles upriver.A post office was established in 1937. Economy The primary local employers are the school district,the City,the Maniilaq health clinic,and two stores.Seasonal employment found at the Red Dog Mine,BLM fire fighting,or work in Kotzebue supplements incomes.60% residents employed:47%private sector,51%local government,and 2% state government. Climate Avg.Temp.Climate Zone -10/65 Transitional! Heating Deg.Days 15,812 Natural Hazard Plan All-Hazards Mitigation Plan (borough-wide)2009 Community Plans Year NWAB Comprehensive Plan (borough-wide)1993 Local Contacts Email Phone Fax NANA Regional Corporation,Incorpor communications@nana.com 907-485-2173 907-485-2137 Northwest Arctic Borough info@nwabor.org 907-442-2500 907-442-2930 Noorvik Native Community tribemanager@nuurvik.org 907-636-2144 907-636-2284 Demographics 2000 2010 2013 Population "634 668 Percent of Residents Employed 60.00% Median Age 22 22 Denali Commission Distressed Community No Avg.Household Size 5 5 Percent Alaska Native/American Indian (2010)88.32% Median Household Income N/A $54,375 Low and Moderate Income (LMI)Percent (201x)55% Electric Utility Generation Sources Interties PCE? Alaska Village Electric Cooperative (AVEC)Diesel No Yes Landfill Class It Permitted?Yes Location 2.6 mile east Water/Wastewater System Homes Served System Volume Water Pressure,Circ 50,001 -100,000 Sewer Vacuum Water/Wastewater Energy Audit?No Notes Access Road No Air Access Robert Curtis Memorial Airport,gravel,fair condition Runway 1 4,000 ft.x 100 ft.Runway 2 N/A Runway 3 N/A Runway 4 N/A Dock/Port Yes Barge Access?Avg.Temp.Ferry Service?No Power House Utility AVEC Energy Profile:Noorvik Power Production Diesel (kWh/yr)1,911,548 Avg.Load (kW)224 Generators Make/Model RatedCapacity Condition/Hrs Wind (kWh/yr)N/A Peak Load (kW)474 Unit 1 Newage/HCl504C1 363 Hydro (kWh/yr)N/A Efficiency (kWh/ga 12.78 Unit 2 Newage/HCI504F1 499 Total (kWh/yr)1,911,548 Diesel Used (gals/y 149,548 Unit 3 farathon/750ROZD 710 =2.50 Unit 4 ES Unit 5 =2.00 ===a ea Line Loss 2.70%5 --- Heat Recovery?*Was project implemented?£1.50 Upgrades?3 Outage History/Known Issues 2 1.00 Pe a tj =60.50 Operators No.of Operators Training/Certifications 0.00 2008 2009 2010 2011 2012 2013 2014 --Diesel we Hydro -_-WindMaintenancePlanning(RPSU) Electric Sales No.of Customers kWh/year kWh/Customer Electric Rates ($/kWh)Cost per kWh Sold ($/kWh} Residential #DIV/O!Rate with PCE 0.20)Fuel Cost 0.35 Community #DIV/0!Residential Rate 0.65)Non-fuel Cost 0.23 Commercial #DIV/0!Commercial Rat 0.65!Total Cost 0.58 Utility Use N/A Fuet Prices ($)_Utility/Wholesale Retail Senior Electric Sales by Customer Type Diesel (1 gal)7.60 3.69 (kWh/year)Other Fuel?(1 gal} 0%Gasoline (1 gal)8.03 0%0%Propane (100#)307.00 Wood (1 cord) 0%Pellets Residential Community Commercial Utility Use Discounts? Alternative Energy Potential Projects/Notes Status Hydroelectric Low Wind Diesel Low/Medium Class 3,feasibility study,construction 2014 Biomass Medium Resources investigated in Noorvik Solar Medium to High Solar PVs planned for Noorvik Geothermal Low Oil and Gas Low Coal Medium Further study on resource potential needed Emerging Tech =Unknown Heat Recovery High Design for system was scheduled for 2014 fall construction Energy Efficiency High Homes &schools provided w/extra TED meters 2014/2015;2014 TED training Bulk Fuel Purchasing Deliveries/Year |Gallons/Delivery Vendar(s) Tank Owner Fuel Type(s)Capacity Age/Condition By Barge 1 96,946 AVEC AVEC Diesel 202,944 By Air Cooperative Purchasing Agreements Notes Energy Profile:Noorvik Housing Units Occupied Vacant %Owner-Occup.Regional Housing Authority Weatherization Service Provider 153 18 52%NIHA NIHA Housing Need Overcrowded 1-star Energy Use Average Home Average Avg.EUI Energy Rating Square Feet (kBTU/sf) Data Quality Age of Housing Stock Energy Efficient Housing Stock 100% 0%0% Earlier 1940s 1950s 1960s 1970s 1980s 1990s 2000-11 Retrofitted BEES Certified Untouched Lighting Upgraded?Owner Notes Non-residential Building Inventory Building Name or Location Year Built Square Feet Audited?Retrofits Done?In ARIS? City Office 3200 EECBG Yes No AIRPORT ELECTRICAL 2001 96 No Boiler/generator/fire pump module 1488 No Lift station bldg.1728 No Maintenance shop 720 No Morris Trading Post 1970 No New garage 1977 5600 No Noorvik City Building 1973 4800 No Noorvik Friends Church No Noorvik Native Store No Noorvik Native Village Office 1404 No Noorvik Post Office 1970 No Old garage 1970 875 No Sally Harvey Memorial Health Clinic 2004 7500 No School 2002 61300 No Snow machine building 1970 625 No SREB 2001 2000 No Water storage bldg.2520 No Water Treatment Plant 1973 12000 No October 11,2016 2 Executive Summary The Native Village of Noorvik has expressed interest in using a biomass heating systems to displace existing oil based heating and stimulate the local economy.Specifically,the community would like to heat the Tribal Office (IRA Building)with a cord-wood boiler module. Evaluation of seven different possibilities would result in annual fuel savings ranging from $1,000 to over $100,000.The most plausible of these scenarios would save the community roughly $30,000 in heating costs annually.However,due to high upfront capital costs and limited biomass fuel availability,not all of the scenarios evaluated have long term viability. Community Disposition Background On June 14"2016 Dan Smith and Devany Plentovich of Alaska Energy Authority (AEA)traveled to Noorvik accompanied by Jackie Schaeffer of WH Pacific.The purpose of this visit was to engage the community about biomass heating systems and ascertain the feasibility of such a system.The Tribal Council had submitted a statement of interest to the Alaska Wood Energy Development Task Group (AKWEDTG)seeking more information about the possibility of using biomass to heat the IRA Tribal Office Building. Existing Systems The current heating system employed in nearly every building in the community is either an oil fired _ boiler or a space heating stove (Toyo stove).In buildings with a boiler,a hydronic (baseboard)system is typically employed to distribute the heat throughout the building. The community is currently constructing a heat recovery system that will pull waste heat from the AVEC powerhouse to heat the Water Treatment Plant (WTP).This system is estimated to displace 87%of the current heating oil used by the WTP;this figure is expected to climb to 100%once certain energy efficiency measures have been enacted.Based on current oil prices,this heat recovery loop will save the community an estimated $70,000 every year. Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In Table 1,estimates were created based on given usage values and values from nearby communities.The estimates,combined with the fact that 1 cord of wood is equivalent to 130 gallons of heating oil',translate into cords of wood required to heat a given building each year;from there a new cost and subsequent savings are found. Table |only takes into account the fuel costs and does not consider any capital costs or O&M costs typically associated with biomass systems.This table is primarily to illustrate the benefits various buildings would receive from using cord wood for heat,rather that oil,over a 25-year period. '1 cord of wood assumes a 20%moisture content and a volume of 100 ft?,this equates to 130 gallons of#1 heatingoil.A typical cord is 4X4X8 ft,but due to the nature of log stacking there is inevitable void space,thus the volume used in calculations is reduced from 128ft?to 100ft?. _nkenergyauthority.org' 813 West Norther Lights Boul:d A ge.Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 11,2016 Table 1:Community Wide Fuel Savings Building Size |Oil Used (gal)|Cords of Wood Annual Savings (ft?)Annually Annually Tribal Office (IRA)1404 950 731]¢2,301.92 City Office/Community Hall*4315 3625 27.88 |¢8,782.68 Youth Center*1200 900 6.92]¢2,180.77 City Garage*3500 1750 13.46]¢4,240.38 City Shop*900 450 3.46]¢1,090.38 Public Safety Building*1600 1517 11.67]¢3,675.81 OTZ Telephone Building*850 638 4.90]¢1,544.71 Old Hotel (after refurbishment)**|2300 3000 23.08 |¢7,269.23 School*61300 70000 538.46]¢169,615.38 Morris Trading Post*2600 3276 25.20]¢7,938.00 Teaching Housing (4 buildings)*|18230 12936 99.51]¢31,344.92 Clinic*3200 5000 38.46]¢12,115.38 Native Store +Warehouse*7300 8614 66.26]¢20,872.38 *Estimated values **Assumes building will be retrofitted and repurposed Scenarios To adequately assess all possibilities,several scenarios were considered and assessed.These scenarios were based on information collected during a site visit on June 14,2016.Estimates were created from this information as well as data from previous,similar projects.These estimates assume a cost of heating oil to be $5.50/gallon and the cost of wood to be $400/cord. For these evaluations,the Benefit/Cost (B/C)ratio acts as a simplified decision making tool.B/C ratios greater than 1.0 means that the project will save more money than it costs to implement.This number is generally driven primarily by the amount of heating oil displaced;the higher the number,the higher the ratio,and the more beneficial it will be. 1 -Individual Buildings Several buildings were considered for biomass heating;the fuel savings are outlined in Table 1.Select buildings were evaluated more in depth which resulted in Table 2.These buildings form the basis for other possible scenarios. The Tribal Council and City of Noorvik originally submitted a statement of interest for heating the Tribal Office (IRA building)with biomass.However,as Shown in Table 2,heating only this building with a biomass boiler would not result in lower heating costs.Heating the City Office/Hall results in a better B/C ratio of 1.00,however the high capital cost barely justifies the savings that would result.Based purely on the economic analysis,the community would lose a marginal amount of money.However,when all theperipheryitemsareconsidered(local job creation,energy independence,etc...)this option seems very appealing. The teacher housing was also evaluated,and while the building is not owned by the city or Tribe,it would still result in a very impressive B/C ratio of 3.55.This is due to the fact that the building(s)use jakenergyauthority.org: 813 West Northern Lights Boulevard Anchorage.Alaska 99503 1 907.771.3000 Toll Free (Alaska Oniy)888.300 8534 F 907.771 3044 woeeee eer {Commented [DP1]:More appealing? October 11,2016 enough oil that replacing the oil with cord wood would save enough money to justify the high capital cost.This option could be a good starting point for local biomass technology as it would keep roughly $560,000 in the community over the life of the boiler.This money could be redirected towards other efforts throughout the community. Table 2:Heating Individual Buildings with Biomass Boilers bosii|.-- Individual Buildings Tribal Office (IRA)City Office/Hall Teacher Housing Boiler life 25 25 25 Capital cost $208,000.00 $208,000.00 $208,000.00, nnual O&M $500.00 |$500.00 $500,00, Annual Fuel Savings $2,301.92 |$8,782.68 $31,344bal Total O&M $12,500.00 $12,500.00 $12,500.00 Total Fuel Savings $57,548.08 |$219,567.12 $783,623.08 Lifetime Total Savings |§(162,951.92)$(932.88)$563,123.08 Simple Payback (years)115.43 25.11 6.74 B/C ratio 0.26 1.00 3.55 Cords of Wood Annually 731 27.88 (2%0 2 -District Heating Loop This heating loop was conceived based on the idea of combining the heating requirements of several buildings in the area around the City Office/Hall area.This district heating loop would serve the following buildings:The old Hotel,The OTZ Telephone Building,The City Office/Hall,The Public Safety Building,The City Shop and The City Garage,The Boys & Girls Club,and The Morris Trading Post. Table 3:District Heating Loop Figure 1:District Heating Loop ;spRpvEr ie)alescoe-TTTee ' v4 Boiler life 25 Capital cost $482,625bd Annual O&M $500.00 Annual Fuel Savings $36,721.97 r 813 West North Lights Boul d horage.Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 < __.----7|Commented [DP2}:Noatak report used $285,000+which is a more realistic number.-' Commented [DP3]:Assumes stoking the boiler is included in existing jobs?? o '1 Commented [DP 4]:Can you please add the gallonsdisplaceddso.Its nice to have all of the assumptions in this summary ¢hart. Commented [DP5]:Capital cost for a project this size would be in the neighborhood of $500,000 -multipleboilers.wv |Commented [DP6}:Seems ow ..See later comments October 11,2016 5 Pa Total O&M $12,500.00 a aa Total Fuel Savings $91 8,049.33}oe es |Commented [DP7]:Can you add gallons displaced also.}Lifetime Total Savings $422,924.33 Simple Payback (years)13.32 B/C ratio 1.85 Cords of Wood Annually |116.58 The heating loop shown in figure 1 illustrates a tentative design that would incorporate buildings:14,16, 17,19,21,22,24,25.The new boiler housing (not to scale)would likely be situated behind the City Office/Hall. This heating loop would cost roughly $480K and result in a lifetime total savings of roughly $420K.This gives the heating loop a B/C ratio of 1.85.However,this heating loop would require nearly 117 cords of wood every year to operate,which is approximately 100%of the regional sustainable harvest.Typical biomass projects use less than 5%of the regional sustainable harvest.This will be further detailed in thisreport;and because of this fact,this heating loop configuration is cautioned against._----"{Commented [DP8}:Not recommended.- Sensitivity Analysis Sensitivity analyses were conducted to show how changing the cost of heating oil and cordwood affects the B/C ratio of each project.When the B/C ratio is above 1.0 the project becomes economically viable, these are shown in green.The values highlighted in Orange are B/C ratios of less than 1.0 and are therefore not economically justifiable. As Shown in these tables,using a biomass boiler in the teacher housing or district heating loop would be highly beneficial.Heating only the City Office/Hall would be beneficial under certain circumstances. Unfortunately,even a best case scenario would not allow the Tribal Office (IRA)building to be benefited by replacing the existing oil boiler with a biomass boiler. Sensitivity Analysis:City Office/Hall B/C Ratios $150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord$3.50/gal 0.96 O8t 0.65 0.49 033 |0.17_ $4.00/gal 1.17 1.01 0.85 0.70 0.54 0.38 $4.50/gal F 1.38 1.22 1.06 0.90 0.74 0.58 $5.00/gal 1.58 1.42 1.26 1.11 0.95 0.79 $5.50/gal L792 L63 L47 L3L 115 100 takenergyauthority.org' 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Tolt Free (Alaska Only)888.300.8534 F 907.771.3044 October 11,2016 6 $6.00/gal 1.99 1.83 1.68 1.52 1.36 1.20 $6.50/gal 2.20 2.04 1.88 1.72 1.56 1.41 $7.00/gal 2.40 2.24 2.09 1.93 1.77 1.61 $7.50/gal 261 2.45 2:29 213 198 wh 82eed Sensitivity Analysis:Teacher Housin B/C Ratios $150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 3.44 288 231 1.75 118 | 062_ $4,00/gal 417 3.61 3.05 2.48 1.92 1,35 $4.50/gal 4.91 4.34 3.78 3.22 2.65 2.09 $5.00/gal 5.64 5.08 451 3.95 3.38 2.82 $5.50/gal 6.37 §.81 §.25 4.68 4.12 3.55 $6.00/gal 7 6.54 5.98 5.42 4.85 4.29 $6.50/gal 7.84 7.28 6.71 6.15 5.58 5.02 $7.00/gal 8.57 8.01 745 6.88 6.32 5.75 $7.50/gal 9.31 8.74 8.13 L62.7405 6.49 Sensitivity Analysis:Tribal Office (IRA Building) B/C Ratios $150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 0.25 0.21 0.17 0.13 0.09 0.05 $4.00/gal 0.31 0.27 0.22 0.18 0.14 0.10 $4.50/gal 0.36 0.32 0.28 0.24 0.19 0.15 $5.00/gal 0.41 0.37 0.33 0.29 0.25 0.21 $5.50/gal 0.47 0.43 0.39 0.34 0.30 0.26 $6.00/gal 0.52 0.48 0.44 0.40 0.36 0.31 $6.50/gal 0.58 0.53 0.49 0.45 0.4L 0.37 $7.00/gal 0.63 0.59 0.55 0.51 0.46 0.42 $7.50/gal 0.68 0.64 0.60 0.56 0.52,0.48 Sensitivity Analysis:District Heating Loop B/C Ratios $150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 1.80 1.50 1.21 0.91 0.62 0.32 $4.00/gal 2.18 1.88 1.59 1.29 1.00 0.71 $4.50/gal 2.56 2.27 1.97 1.68 1.38 1.09 $5.00/gal 2.94 2.65 2.35 2.06 1.77 1.47 $5.50/gal 333 3.03 2/4 244.215 135 akenergyauthority.org' 813 West Northern Lights Boul d Anch Alaska 99503 17 907.771.3000 Toll Free (AlaskaOnly)888.300.8534 F 907.771.3044 October 11,2016 7 $6.00/gal 3.71 3.41 3.12 2.83 2.53 2.24 $6.50/gal 4.09 3.80 3.50 3.21 2.91 2.62 $7.00/gal 4.47 4.18 3.88 3.59 3.30 3.00 $7.50/gal 4.86 4.56 4.21 3.97 3.68 3:38 Biomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.Based on information in this report it was found that the region surrounding Noorvik contains 1,376,514 ft of timber.This equates to a total of 11,724 cords of wood readily available to the community. The wood resource surrounding Noorvik is comprised primarily of white spruce with some balsa poplar/cottonwood and trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 7,167 cords of harvestable spruce and 3,418 cords of cottonwood within roughly a 5-mile radius of the community.The energy content of each species of wood assumes an air dry moisture content of roughly 20%. Table 4:Bi Resource Infor Resource Cord Weight Energy Harvestable Composition (Ibs/cord)(MMBtu/cord)Cords Spruce Harvest 65%3,100 18.1 7,167 Cottonwood Harvest 8%2,400 15.0 1,139 Other Harvest 27%2,700 16.5 3,418 Weighted Average 2,936 17.4 Total 11,724 With an average tree maturation rate of over 100 years,the wood used by the community every year cannot exceed 1%of the total available resource in order to maintain sustainability.With 11,724 cords of wood in the harvest area this equates to 117 cords per year.As mentioned earlier,a district heating loop could use 117 cords of wood annually;100%of the allowable sustainable harvest.This is very concerning as over harvest could negatively affect the riverine environment and thys-haye-djre f harvests let for residential use.Leo Lion harvest forpurposesotherthan heating.neESTTfeghrmented [DP9};Also -there would be no allowable |AEA strongly recommends a more detailed forestry evaluation of the surrounding wood resources before developing a harvest plan and further pursuing a biomass heating system. AEA Recommendations As stated in the Biomass Resource section of this report,the biomass availability in the harvest area of .ao .Noorvik is marginal at best.A large biomass project should only be pursued with careful planning|_---{Commented [DP10]:4 don't think we can recommend the and a mind towards sustainable forestry.That being said,there are several smaller biomass options larger project. available to the community.Tiere are several very efficient cord wood stoves that would be ideal to heat same yakenergyauthoritysorg” 813 West Norther Lights Boulevard Anchorage,Alaska 99503 7 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771 3044 October 11,2016 8 To reiterate,the limiting factor for any biomass project in Noorvik is the availability of cord wood.Any sizeable project should be carefully planned around the limitations of the forestry resources. wood Stove Segment//>Community”originally as kel for Boikes,Se Kn?foo bfQR»Wook Seg woe K be ffer for5palletbuWirB- JD Mason ry WS Con yentrona| a "Con ahaly ss for :>tprcattonre?JPdyyRA ba?fombaLS(g /-weaerie.COrLEPA.goW/bear WiSc_ |akenergyauthority.org: 813 West Northern Lights Boulevard Anchy Alaska 99503 17 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 Commented [DP11]:What do you think about adding a complete section on wood stoves,since there was such concern on the last report's recommendations?Take a look at the Thome Bay report that Helen and the intern completed.I think they did a good job on looking a pellet stoves as an option.This might be a good basis for wood October 11,2016 Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available data. 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities with similar heating requirements. 3.Calculations were conducted assuming a heating oil price of $5.50/gallon. 4.Cords of wood required to heat a given building was based on the energy content of the weighted average of available timber in the region.A typical cord used would be 65%spruce,8%poplar and contain 17.42 MMBtu/cord. The price of Cord wood is $400/cord and is based on the price in Kobuk as of summer 2016wn 6.Energy content of wood assumes a general moisture content of 20%which would have been achieved by air drying the wood for up to 12 months. B -Capital Costs 1.Construction costs are based on estimates from previous studies and completed projects 2.Construction assumes a spate boiler building will be constructed. 3.All Boiler costs assume a GARN 2000 unit will provide sufficient heat for the target locations. Boiler Capital Costs Single Boiler District Heating Loop Housing construction $50,000.00 $50,000.00 Boiler Cost $20,000.00 $50,000.00 Artic Pipe ($175/ft)$-$131,250.00 Piping/Hardware $45,000.00 $45,00000 oS Extra Thermal Storage $5,000.00 $5,000.00. Controls/Electrical $10,000.00 $10,000.00 Heat Exchanger $5,000.00 |[$5.00000Freight$-25-800-00 F-1-$-€75,000.00FSubtotal$160,000.00 |$371,250.00 Engineering (15%)$24,000.00 $55,687.50 Contingency (15%)$24,000.00 $55,687.50 Total $208,000.00 $482,625.00 C-Biomass Assumptions t.Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. 2.Approximately 35%of the subunit is within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 1.65%white spruce 2.8%balsa poplar/cottonwood 3.27%other/deadwood 4.Cord calculations used 87 ft?to account for void space in wood stacking,this differs from the conventional 128 ft?figure used in a 4X4X8ft cord. cC 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 this in the last report. -|Commented [DP 12}:This is going to be higher than asinglebuildingbecauseyouhavetoconnecteachheatexchangertotheexistingbuildingheatingsystem.I missed this in the last report also.|Commented [DP13]:$5000 per building.I think I missed akenergyauthority.org' October 12,2016 2 Executive Summary The Native Village of Noorvik has expressed interest in using a biomass heating systems to displace existing oil based heating and stimulate the local economy.Specifically,the community would like to heat the Tribal Office (IRA Building)with a cordwood boiler module. 2 uf potentialEvaluationseve)Rifferent possibilities woul ae inal fuel savings ranging from $1,000 to over$100,000.The most plausible of these scenarios would save the community roughly $30,000 in heating costs annually.However,due to high upfront capital costs and limited biomass fuel availability,not all of the scenarios evaluated have long term viability."aod, Community Disposition Background On June 14"2016 Dan Smith and Devany Plentovich of Alaska Energy Authority (AEA)traveled to Noorvik accompanied by Jackie Schaeffer of WH Pacific.The purpose of this visit was to engage thecommunitysoalgomasheatingsystemsandascertainthefeasibilityofsuchasystem.The TribalCouncilhadsubmfttedastatementofinteresttotheAlaskaWoodEnergyDevelopmentTaskGroup (AKWEDTG)seeking more information about the possibility of using bronrags to heat the IRA TribalOfficeBuilding.a Cordwood boiler Existing Systems The current heating system employed in nearly every building in the community is either an oil fired boiler or a space heating stove (Toyo stove).In buildings with a boiler,a hydronic (baseboard)system is typically employed to distribute the heat throughout the building.pernltS ines€The community is currently constructing a heat recovery system that will pull waste heat froVene AVEC powerhouse to heat the Water Treatment Plant (WTP).This system is estimated to displace 87%of the current heating oil used by the WTP;this figure is expected to climb to 100%once certain energy efficiency measures have been enacted.Based on current oil prices,this heat recovery loop will save the community an estimated $70,000 every year. akenérgyadthorityzrey 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 3 Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system,the current heating system must first be assessed.In Table 1,estimates were created based on given usage values and values from nearby communities.The estimates,combined with the fact that 1 cord of wood is equivalent to 130gallonsofheatingoil',translate into cords of wood required to heat a given building each year From there anew cost and subsequent savings are found.this asSunreS roughCfualefficiesinh way sitsTable1onlytakesinioaccountthefuelcostsanddoesnotconsideranycapitalcostsorO&M coststypicallyassociatedwithbiomasssystems.This tableis primarily to illustrate the benefits various buildings would receive from using cord wood for heat,rather that oil,over a 25-year period. Table 1:Community Wide Fuel Savings Building Size |Oil Used (gal)|Cords of Wood Annual Savings (ft?)Annually Annually Tribal Office (IRA)1404 950 7.311 $2,301.92 City Office/Community Hall*4315 3625 27.88 |¢8,782.68 Youth Center*1200 900 6.92}¢2,180.77 City Garage*3500 1750 13.46 |¢4,240.38 City Shop*900 450 3.46 |$1,090.38 Public Safety Building*1600 1517 11.67]¢3,675.81 OTZ Telephone Building*850 638 4.901 ¢1,544.71 Old Hotel (after refurbishment)**|2300 3000 23.08 |$7,269.23 School*61300 |""70000 |-538.46 |¢169,615.38 Morris Trading Post*2600 3276 25.20 |$7,938.00 Teaching Housing (4 buildings)*|18230 12936 }°""¢*°*99.51]¢31,344.92 Clinic*3200 5000 38.46 |¢12,115.38 Native Store +Warehouse*7300 8614 66.26 |¢20,872.38 *Estimated values **Assumes building will be retrofitted and repurposed 1 1 cord of wood assumes a 20%moisture content and a volume of 100 ft',this equates to 130 gallons of #1 heating oil.A typical cord is 4X4X8 ft,but due to the nature of log stacking there is inevitable void space,thus the volume used in calculations is reduced from 128ft}to 100ft*. akenergyauthorityrorg' 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 4 ScenariosToadequately assess all posses (ever senaros were considered and assessed.These scenarioswerebasedoninformationcollecteddufifigasitevisitonJune14,2016.Estimates were created from this information as well as data from previous,similar projects.These estimates assume a cost of heating oil to be $5.50/gallon and the cost of wood to be $400/cord. :Thé Operations and Maintenance (O&M)cost for these scenarios arg based on fhe assur tion thatregularlystokingtheboilerwillbeaddedtothedailydutiesofsteffmembers-omduty.st i for anyreplacementpartsand/or any cleaning/maintenance that must be done on an annual basis. Forthese-evaluations;fhe Benefit/Cost (B/C)ratio acts as a simplified decision making tool.B/C ratios greater than 1.0 means that the project will save more money than it costs to implement.This number is generally driven primarily by the amount of heating oil displaced;the higher the number,the higher the ratio,and the more beneficial it will be. Sensitivity analyses were also conducted to show how changing the cost of heating oil and cordwood affects the B/C ratio of each project.When the B/C ratio is above 1.0 the project becomes economically viable,these are shown in green.The values highlighted in Orange are B/C ratios of less than 1.0 and are therefore not economically justifiable. 1 -Individual Buildings .Several buildings were considered for biomass heating;the fuel savings are outlined in Table 1 -KEY. buildings were evaluated more in depth phich roqulted in Table 2.These buildings form the basis forotherpossiblescenarios.tae results are & The Tribal Council and City of ooryik ofiginally submitted a statement of interest for heating the TribalOffice(IRA building)with-biemass.However,as Shown in Table 2,heating only this building with a biomass boiler would not result in lower heating costs.Heating the City Office/Hall results in a better B/C ratio of 1.00,however the high capital cost barely justifies the savings that would result.Based purely on the economic analysis,the community would lose a marginal amount of money.However,when all the periphery items are considered (local job creation,energy independence,etc...)this option seems-more appealing.becomes The teacher housing was also evaluated,and while the building is not owned by the Eity or Tribe,it would still result in a very impressive B/C ratio of 2.89.This is due to the fact that the building(s)use enough oil that replacing the oil with coné-wood would save enough money to justify the high capital cost.This option could be a good starting point for local biomass technology as it would keep over $500,000 in the community over the life of the boiler.This money couldppe redirected towards othereffortsthroughoutthecommunity. fakenergyauthorit¥rorga 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 Table 2:Heating Individual Buildings with Biomass Boilers Individual Buildings Tribal Office (TRA)City Office/Hall |Teacher Housing Boiler life 25 25 25 Capital cost $208,000.00 $208,000.00 $258,700.00 Annual O&M $500.00 $500.00 $500.00 Cords of Wood Annually $7.31 $27.88 $99.51 Oil Used Annually $950.00 $3,624.60 $12,936.00 Annual Fuel Savings $2,301.92 $8,782.68 $31,344.92 Total O&M $12,500.00 $12,500.00 $12,500.00 Total Fuel Savings $57,548.08 $219,567.12 $783,623.08 Lifetime Total Savings -$162,951.92 -$932.88 $512,423.08 Simple Payback (years)115.43J 2514 8.39 B/C ratio 0.26 LAL/7-00 2.89 The sensitivity analyses below show that both the City Office/Hall and the Teacher Housing would see fantastic benefits from biomass boilers over a wide range of fuel prices.The analyses also show that under every fuel circumstance evaluated,a biomass boiler for the IRA building would not be a fiscally sound decision. _ Sensitivity Analysis:City Hall B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 0.96 0.81 0.65 _0.49 0.33 0.17 $4.00/gal 1.17 1.01 0.85 0.70 0.54 0.38 $4.50/gal 1.38 1.22 1.06 0.90 0.74 0.58 $5.00/gal 1.58 1.42 1.26 1.11 0.95 0.79 _....] $5.50/gal 1.79 1.63 1.47 1.31 115 4971.00 S $6.00/gal 1.99 1.83 1.68 1.52 136 |1.20 $6.50/gal 2.20 2.04 1.88 1.72 1.56 1.41 $7.00/gal 2.40 2.24 2.09 1.93 1.77 1.61 $7.50/gal 2.61 2.45 2.29 2.13 1.98 1.82 Sensitivity Analysis:Teacher Housing B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 2.80 2.34 1.88 1.42 0.96 0.50 $4.00/gal 3.39 2.94 2.48 2.02 1.56 1.10 $4.50/gal 3.99 3.53 3.07 2.61 2.16 1.70 $5.00/gal 4.59 4.13 3.67 3.21 2.75 2.29 $5.50/gal 5.18 4.72 4.27 3.81 3.35 2.89 $6.00/gal 5.78 5.32 4.86 4.40 3.94 3.49 $6.50/gal 6.38 5.92 5.46 5.00 4.54 4.08 $7.00/gal 6.97 6.51 6.05 5.60 5.14 4.68 $7.50/gal 7.57 7.11 6.65 6.19 5.73 5.27 akenergyauthorityiorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 6 Sensitivity Analysis:IRA Building B/CRatios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord$3.50/gal_|0.25 0.21 0.17 |0.13 0.09 0.05 $4.00/gal 0.31 0.27 0.22 0.18 0.14 0.10 $4.50/gal 0.36 0.32 0.28 0.24 0.19 0.15 $5.00/gal 0.41 0.37 0.33 0.29 0.25 0.21 $5.50/gal 0.47 0.43 0.39 0.34 0.30 0.26 $6.00/gal 0.52 0.48 0.44 0.40 0.36 0.31 $6.50/gal 0.58 0.53 0.49 0.45 0.41 0.37 $7.00/gal 0.63 0.59 0.55 0.51 0.46 0.42 $7.50/gat_|0.68 0.64 0.60 056 |0.82 0.48 2 -District Heating Loop This heating loop was conceived based on the idea of combining the heating requirements of several buildings in the area around the City Poa et Office/Hall area.This district heating loop would Fe ae oe serve the following buildings:The old Hotel,The Es ™peOTZTelephoneBuilding,The City Office/Hall,'AThePublicSafetyBuilding,The City Shop and The City Garage,The Boys &Girls Club,and The Morris Trading Post.QJ Cooperative,tre.2604-OOR DBD | Table 3:District Heating Loop Boiler life 25 Capital cost $557,700.00 Annual O&M $500.00 Cords of Wood Annually 8116.58 Oil Used Annually QW 5,155.10 Annual Fuel Savings $36,721.97 Total O&M $12,500.00 Total Fuel Savings $918,049.33 if tA SOUTH,A RVI FS MST Lifetime Total Savings $347,849.33 Pe"in MERTEN.Wt be oR Simple Payback (years)15.40 Figure 1:Potential District Heating Loop Configuration B/C ratio 1.61 The heating loop shown in figure 1 illustrates a tentative design that would incorporate buildings:14,16, 17,19,21,22,24,25.The new boiler housing (not to scale)would likely be situated behind the City Office/Hall. eneFgysuthoritytorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 7 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 7 Sensitivity Analysis:District Heating Loop B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 1.56 1.30 1.05 __0.79 0.54 0.28 $4.00/gal 1.89 1.64 1.38 1.12 0.87 0.61 $4.50/gal 2.22 1.97 1.71 1.46 1.20 0.95 $5.00/gal 2.56 2.30 2.04 1.79 1.53 1.28 $5.50/gal 2.89 2.63 2.38 2.12 1.87 1.61 $6.00/gal 3.22 2.96 2.71 2.45 2.20 1.94 $6.50/gal 3.55 3.30 3.04 2.79 2.53 2.27 $7.00/gal 3.88 3.63 3.37 3.12 2.86 2.61 $7.50/gal 4.22 3.96 3.71 3.45 3.19 2.94 Under present conditions,this heating loop would cost roughly $560K and result in a lifetime total savings of roughly $350K.This gives the heating loop a B/C ratio of 1.61.As shown in the sensitivityanalysisabove,there Ys,several scenarios that would cause this project to be a financially sound investment.are However,this heating loop would require nearly 117 cords of wood every year to operate,which is approximately 100%of the regional sustainable harvest.Typical,biomass projects use less than 5%of the regional sustainable harvest.This will be further detailed in this report;and because of this fact,this heating loop configuration is not recommended.ook3-Wood Stoves yooDuetothenatureoflargdtbiomass boiler and the limited biomass resource in the Noorvik area,heating smaller buildings with wood stoves may be a better solution for replacing oil boilers.Wood stoves can come in many configurations that can be easily tailored to fit a particular building's needs. Masonry wood stoves function more efficiently by providing a steady source of heat over a longer periodoftimethantheconventional.There is currently a light weight Masonry wood stove in development bytheCollegeofEngineeringatUAAwithruralAlaskanvillagesinmind.The "pitadise”website run by the US EPA has a wealth of information and guidelines on this topic:https://www.epa.gov/burmwise.This would be an excellent resource to aid in selection of appropriate heating units for key buildings in the communityInTable4heating the IRA building would require Yonventional wood stoves while the City Office/HallwouldlikelyrequirewWesfventionalwoodstoves.By using these wood stoves,the IRA building would be able to save over $2,000 every year on heating costs;after the initial capital cost and O&M expenses are considered this equates to being almost $5,000 less expensive than,operating an oil boiler over the life oftheheatingunits.Using wood stoves in the City Office/Hall BY oNte0 displace oe 500 gallons ofheatingoileveryyearandsavethecommunity$8,700 annually.Over the life of the heating units this would add up to over $100,000. kenergyadthorityrorgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 Table 4:Wood Stove Feasibility Wood Stoves Tribal Office (IRA building)|City Office/Hall Boiler life 20 20 Capital cost $31,200.00 $62,400.00 Annual O&M $500.00 $500.00 Cords of Wood Annually 7.31 27.88 Oil Used Annually 950.00 3624.60 Annual Fuel Savings $2,301.92 $8,782.68 Total O&M $10,000.00 $10,000.00 Total Fuel Savings $46,038.46 $175,653.69 Lifetime Total Savings $4,838.46 $103,253.69 Simple Payback (years)17.31 7.53 B/C ratio 1.12 2.43 stove The'sensitivity analyses for these buildings show that there is a wide range of operating scenarios that would save the community money.- Sensitivity Analysis:Wood Stove,City Hall B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord {|$400/cord $3.50/gal 2.35 1.96 1.58 1.19 0.81 0.42 $4.00/gal 2.85 2.46 °s 2.08 1.69 1.31 0.92 $4.50/gal 3.35 2.97 2.58 2.20 1.81 1.42 $5.00/gal 3.85 3.47 3.08 2.70 2.31 1.93 $5.50/gal 4.35 3.97 "+3.58 3.20 -2.81 2.43 $6.00/gal 4.85 4.47 4.08 3.70 3.31 2.93 $6.50/gal 5.35 4.97 4.58 4.20 3.81 3.43 7 $7.00/gal 5.85 5.47 5.08 4.70 4.31 3.93 "4 [> $7.50/gal 6.35 5.97 5.58 5.20 4.81 4.43 i *'"Sensitivity Analysis:Wood Stove,IRA Building B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord {$400/cord $3.50/gal 1.08 0.90 0.73 0.55 0.37 0.20 $4.00/gal 1.31 1.14 0.96 0.78 0.60 0.43 $4.50/gal 1.54 1.37 1.19 '1.01 0.83 0.66 $5.00/gal 1.77 1.60 1.42 1.24 1.06 °-0.89 $5.50/gal 2.00 1.83 1.65 1.47 1.29 1.12 $6.00/gal 2.23 2.06 1.88 1.70 1.53 1.35 $6.50/gal 2.47 2.29 2.11 1.93 1.76 1.58 $7.00/gal 2.70 2.52 2.34 2.16 1.99 1.81 /$7.50/gal 2.93 2.75 2.57 2.39 2.22 2.04 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 12,2016 9° iomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.Based on information in this report it was found that the region surrounding Noorvik contains 1,376,514 ft?of timber.This equates to a total of 11,724 cords of wood readily available to the community. The wood resource surrounding Noorvik is comprised primarily of white spruce with some balsa poplar/cottonwood and trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 7,167 cords of harvestable spruce and 3,418 cords of cottonwood within roughly a 5-mile radius of the community.The energy content of each species of wood assumes an air dry moisture content of roughly 20%. Table 5:Biomass Resource Information Resource Cord Weight ,Energy Harvestable Composition (Ibs/cord)(MMBtu/cord)Cords Spruce Harvest »65%3,100 18.1 7,167 Cottonwood Harvest 8%2,400 15.0 1,139 Other Harvest 27%2,700 16.5 3,418 Weighted Average 2,936 17.4 Total 11,724 With an average tree maturation rate of over 100 years,the wood used by the community every year cannot exceed 1%of the total available resource in order to maintain sustainability.With 11,724 cords of wood in the harvest area this equates to 117 cords per year.As mentioned earlier,a district heating loop could use 117 cords of wood annually;100%of the allowable sustainable harvest.This is very concerning as over harvest could negatively affect the riverine environment and thus have dire consequences for the local subsistence lifestyle.In addition to the environmental impacts of over harvest, large scale biomass would also hindey personal harvest that residents rely on for heating individualhomes.and possi V preven t, AEA strongly recommends a more detailed forestry evaluation of the surrounding wood resources before developing a harvest plan onder pursuing any wor 'y biomass heating systems.or re AEA Recommendations As stated in the Biomass Resource section of this report,the biomass availability in the harvest area of Noorvik is marginal at best.Based on the local biomass availability A large biomass project is not recommended.That being said,there are several smaller biomass options available to the community. There are several very efficient cord wood stoves that would be ideal to heat smaller buildings (such as the IRA building).More information about choosing an appropriate wood stove can be found at the US EPA website,"burnwise”(https://www.epa.gov/burnwise/choosing-right-wood-stove).Using a wood stove would require less wood than a biomass boiler unit,but would still need a steady supply of cord wood. To reiterate,the limiting factor for any biomass project in Noorvik is the availability of woody biomass. Any sizeable project should be carefully planned around the limitations of the forestry resources. BkenerSyauthorityierg' 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Ataska Only)888.300.8534 F 907.771.3044 October 12,2016 10 Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available data. 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities with similar heating requirements. 3.Calculations were conducted assuming a heating oil price of $5.50/gallon. 4.Cords of wood required to heat a given building was based on the energy content of the weighted average of available timber in the region.A typical cord used would be 65%spruce,8%poplar and contain 17.42 MMBtu/cord. 5¢Thie price.of Cord wood is $400/cord and is based on the price in Kobuk as of summer 2016.Energy content of wood assumes a general moisture content of 20%which would have been achieved by air drying the wood for-sp-te 12 months. B -Capital Costs 1.Construction costs are based|op estimates from previous studies and completed projects2.Construction assumes attire boiler building will be constructed. BoilerCapital Costs Single Boiler District Heating Loop HoySing construction $50,000.00 $50,000.00 Boiler Cost $20,000.00 $50,000.00 Artic Pipe ($175/ft)$-$131,250.00 Piping/Hardware $45,000.00 $45,000.00 Extra Thermal Storage $5,000.00 $5,000.00 \Controls/Electrical $10,000.00 $10,000.00 Heat Exchanger $5,000.00 $5,000.00 'Kreight $25,000.00 $75,000.00 Subtotal $160,000.00 $371,250.00 Engineering (15%)$24,000.00 $55,687.50 Contingency (15%)$24,000.00 -_1-$-55;68750Total$208,000.00 $482,625.00 C -Biomass Assumptions 1.Based on data from 2012 forestry measurements by TCCin various parcelsin the Noatak subunit. 2.Approximately 35%of the subunitis within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 1.65%white spruce 2.8%balsa poplar/cottonwood 3.27%other/deadwaod conventional 128 ft?figure used in a 4X4X8ft cord. erg yauthorityrorgs 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 y) Executive Summary The Native Village of Noorvik has expressed interest in using a biomass heating systems to displace existing oil based heating and stimulate the local economy.Specifically,the community would like to heat the Tribal Office (IRA Building)with a cordwood boiler module. to over $100,000.The most plausible of these scenarios would save the community roughly/$OO ineatingcostsgnnual}y.However,due to high upfront capital costs and limited woody biomass availability,not all of the scenarios evaluated have long term viability. Evaluation of several different possibilities resulted in potential annual fuel savings ranging sin 1,000el Community Disposition Background On June 14"2016 Dan Smith and Devany Plentovich of Alaska Energy Authority (AEA)traveled to Noorvik accompanied by Jackie Schaeffer of WH Pacific.The purpose of this visit was to engage the community about biomass heating systems and ascertain the feasibility of such a system.The Tribal Council had submitted a statement of interest to the Alaska Wood Energy Development Task Group (AKWEDTG)seeking,more information about the possibility of using a cordwood biomass boiler to heat Existing Systems The current heating system employed in nearly every building in the community is either an oil fired boiler or a space heating stove (Toyo stove).In buildings with a boiler,a hydronic (baseboard)system is typically employed to distribute the heat throughout the building. The community is currently constructing a heat recovery system that will pull waste heat from the generators in the AVEC powerhouse to heat the Water Treatment Plant (WTP).This system is estimated to displace 87%of the current heating oil used by the WTP;this figure is expected to climb to 100%once certain energy efficiency measures have been enacted.Based on current oil prices,this heat recovery loop will save the community an estimated $70,000 every year. akenefgyauthotityfrorgi 813 West Northem Lights Boulevard Anchorage,Alaska 99503 7 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 3 Community-wide Fuel Savings In order to calculate any benefit gained from implementing a biomass system the current heating system must first be assessed.In Table 1,estimates were created based on given usage values and values from nearby communities.The estimates,combined with the fact that 1 cord of wood is equivalent to 130 gallons of heating oil',translate into cords of wood required to heat a given building each year.From there a new cost and subsequent savings are found. e pa Table 1 only takes into account the fuel costs and does not consider any capital costs or O&M costs typically associated sia systems.This table is primarily to illustrate the benefits variousbuildingswouldreceiveTornusingcordwoodforheat,rather that oil,evera2 é erie Table 1:Community Wide Fuel Savings Building Size |Oil Used (gal)|Cords of Wood Annual Savings (ft?)Annually Annually Tribal Office (IRA)1404 950 7.311 ¢2,301.92 City Office/Community Hall*4315 3625 27.88 |¢8,782.68 Youth Center*1200 900 6.92}¢2,180.77 City Garage*3500 1750 13.46 ¢¢4,240.38 City Shop*900 450 3.46 |¢1,090.38 Public Safety Building*1600 1517 11.67 |¢3,675.81 OTZ Telephone Building*850 638 4.90}¢1,544.71 Old Hotel (after refurbishment)**|2300 3000 23.08 |¢7,269.23 School*61300 70000 538.46 |$169,615.38 Morris Trading Post*2600 3276 25.20 |¢7,938.00 Teaching Housing (4 buildings)*|18230 12936 99.51]¢31,344.92Clinic*3200 5000 38.46 |$12,115.38 Native Store +Warehouse*7300 8614 66.26 |¢20,872.38 *Estimated values **Assumes building will be retrofitted and repurposed '1 cord of wood assumes a 20%moisture content and a volume of 100 ft',this equates to 130 gallons of #1 heating oil.A typical cord is 4X4X8 ft,but due to the nature of log stacking there is inevitable void space,thus the volume used in calculations is reduced from 128ft}to 100ft?. fakeneroyauthorityrorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 4 Scenarios To adequately evaluate-al passiclitig,,Several scenarios were considered and assessed.These scenarios were based on informatiorrtolfe uring a site visit on June 14,2016.Estimates were created from thisinformationaswellasdatafromprevious,similar projects.These estimates essacost of heating oil Aeatio "to be $5.50/gallon and the cost of wood to be $400/cord.2 Stasef-vit aTheOperationsandMaintenance(O&M)cost for these scenarios are based on the assumption that nal,5137 regularly stoking the boiler will be added to the daily duties of people regularly using the building.The O&M cost is for any replacement parts and/or any cleaning/maintenance that must be done on an annual basis.The Benefit/Cost (B/C)alscacrgnsrdmpinc Hoge Shing tool.B/C ratios greater than 1.0 meansthattheprojectwillsavethemastALGOWStdimplement.This number is generally drivenprimarilybytheamountofheatingoildisplaced;the higher the number,the higher the ratio,and the more beneficial it will be.: Sensitivity analyses were also conducted to show how changing the cost of heating oil and cordwood affects the B/C ratio of each project.When the B/C ratio is above 1.0 the project becomes economically viable,these are shown in green.The values highlighted in Orange are B/C ratios of less fhan 1.0 and are ... therefore not economically justifiable.'\\pswo we1-Individual Buildings Gay Several buildings were considered for biomass heating;the fuel savings”are outlined in Table 1.Key buildings were evaluated more in depth;the results are shown in Table 2.These buildings form the basis for other possible scenarios. The Tribal Council and City of Noorvik originally submitted a statement of interest for heating the TribalOffice(IRA building)with a cordwood biomass boiler.However,as Shown in Table 2,heating only this building with a biomass boiler yarnlot result jp.jower heating costs.Heating the City Office/Hallresultsina|better B/C ratio of 1.0 the high capital cost barely justifies the savings that wouldresult,'Based purely on the economic analysis,the community would lose a marginal amount of money.However,when all the periphery items are considered (local job creation,energy independence,etc...) this option becomes more appealing. The teacher housing was also evaluated,and while the building is not owned by the City or Tribe,it would still result in a very impressive B/C ratio of 2.89.This is due to the fact that the building(s)use enough oil that replacing the oil with cordwood would save enough money to justify the high capital cost. This option could be a good starting point for local biomass technology as it would keep over $500,000 in the community over the life of the boiler.This money could be redirected towards other effortsthroughoutthecommunity.£4 15 important to note +Lf for this 4 ee toFunctan,if would reTai re acarly 100 CORDS of Wo)PER YEA R :kéi cyt SRA My TONE,I,[_"_energyauthstityrorg? 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 Table 2:Heating Individual Buildings with Biomass Boilers Individual Buildings Tribal Office (IRA)City Office/Hall |Teacher Housing Boiler life 25 25 25 Capital cost $208,000.00 $208,000.00 $258,700.00 Annual O&M $500.00 $500.00 $500.00 Cords of Wood Annually $7.31 $27.88 $99.51 Oil Used Annually $950.00 $3,624.60 $12,936.00 Annual Fuel Savings $2,301.92 $8,782.68 $31,344.92 Total O&M $12,500.00 $12,500.00 $12,500.00 Total Fuel Savings $57,548.08 :$219,567.12}$783,623.08 Lifetime Total Savings -$162,951.92 "5 74$932:88 |$512,423.08 Simple Payback (years)115.43 25.11 8.39 B/C ratio 0.26 1.00 2.89 The sensitivity analyses below show that both the City Office/Hall and the Teacher Housing would see fantastie benefits fronypjomass boilers over a wide range of fuel prices.The analyses also show thatcumstundereveryfu sound decision. ce evaluated,a biomass boiler for the IRA building would not be a fiscally Sensitivity Analysis:City Hall B/C Ratios |$150/Cord $200/cord $250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 0.96 _0.81 0.65 0.49 0.33 0.17 $4.00/gal 1.17 1.01 0.85 0.70 0.54 0.38 $4.50/gal 1.38 1,22 1.06 0.90 0.74 0.58 $5.00/gal 1.58 1.42 1.26 1.11 0.95 0.79 $5.50/gal 1.79 1.63 1.47 131 1.15 1.00 $6.00/gal 1.99 1.83 1.68 152 "|1.36 1.20. $6.50/gal 2.20 2.04 1.88 1.72 1.56 1.41 $7.00/gal 2.40 2.24 2.09 1.93 1.77 1.61 $7.50/gal 2.61 2.45 2.29 2.13 1.98 1.82 Sensitivity Analysis:Teacher Housing B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 2.80 2.34 1.88 1.42 0.96 0.50 $4.00/gal 3.39.2.94 2.48 2.02 -1.56 1.10 $4.50/gal "3.99 3.53 3.07 2.61.2.16 1.70 $5.00/gal__4.59"4.13 3.67 3.21 2.75 2.29 $5.50/gal 5.18 4.72 4.27 "3.81 3.35 2.89 $6.00/gal 5.78 5.32 4.86 4.40 3.94 3.49 $6.50/gal 6.38 5.92 5.46 5.00 4.54 4.08 $7.00/gal 6.97 6.51 6.05 5.60 5.14 4.68 $7.50/gal L357 LU 6.65 6.19 523 5.27 akenergyauthorityrorg 813 West Northern Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 7 Sensitivity Analysis:District Heating Loop B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 1.56 1.30 1.05 0.79 0.54 0.28 $4.00/gal 1.89 1.64 1.38 1.12 0.87 0.61 $4.50/gal 2.22 1.97 1.71 1.46 1.20 0.95 $5.00/gal 2.56 2.30 2.04 1.79 1.53 1.28 $5.50/gal 2.89 2.63 2.38 2.12 1.87 1.61 $6.00/gal 3.22 2.96 2.71 2.45 2.20 1.94 $6.50/gal 3.55 3.30 3.04 2.79 2.53 2.27 $7.00/gal 3.88 3.63 3.37 3.12 2.86 2.61 $7.50/gal 4.22 3.96 371 3.45 3.19 2.94 Under present conditions,this heating loop would cost roughly $560K and result in a lifetime totalLeaviigstotroughly$350K.This gives the heating loop a B/C ratio of 1.61.As shown in the sensitivityanalysisabove,there are several scenarios that would cause this project to be a financially sound investment. However,this heating loop would require nearly 117 cords of wood every year to operate,which is approximately 100%of the regional sustainable harvest.Typical woody biomass projects use less than 5%of theregionat sustainabledarvest.This will be further detailed in this report;and because of thisfact,this heating loop configtif ion is not recommended. 3 -Wood Stoves Due to the nature of large woody biomass boilers and the limited woody biomass resource in the Noorvik area,heating smaller buildings with wood stoves may be a better solution for replacing oil boilers.Wood stoves can come in many configurations that can be easily tailored to fit a particular building's needs. Masonry wood stoves function more efficiently by providing a steady source of heat over a longer period of time than the conventional.There is currently a light weight masonry wood stove in development by the College of Engineering at UAA with rural Alaskan villages in mind.The burnwise website run by the US EPA has a wealth of information and guidelines on this topic:https://(www.epa.gov/burnwise.This would be an excellent resource to aid in selection of appropriate heating units for key buildings in the community In Table 4 heating the IRA building would require two conventional wood stoves while the City Office/Hall would likely require four conventional wood stoves.By using these wood stoves,the IRA building would be able to save over $2,000 every year on heating costs;after the initial capital cost and O&M expenses are considered this equates to being almost $5,000 less expensive than operating an oil boiler over the life of the heating units.Using wood stoves in the City Office/Hall would displace over 3,500 gallons of heating oil every year and save the community $8,700 annually.Over the life of the heating units this would add up to over $100,000. fakenergyauthoritytorgy 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 6 Sensitivity Analysis:IRA Building B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 0.25 0.21 0.17 0.13 _0.09 0.05 $4.00/gal 0.31 0.27 0.22 0.18 0.14 0.10 $4.50/gal 0.36 0.32 0.28 0.24 0.19 0.15 $5.00/gal 0.41 0.37 0.33 0.29 0.25 0.21 $5.50/gal 0.47 0.43 0.39 0.34 0.30 0.26 $6.00/gal 0.52 0.48 0.44 0.40 0.36 0.31 $6.50/gal 0.58 0.53 0.49 0.45 0.41 0.37 $7.00/gal 0.63 0.59 0.55 0.51 0.46 0.42 $7.50/gal 0.68 0.64 0.60 0.56 |0.52 0.48 2 -District Heating Loop This heating loop was conceived based on the idea of combining the heating requirements of several buildings in the area around the City Office/Hall area.This district heating loop would serve the following buildings:The old Hotel,The 5 OTZ Telephone Building,The City Office/Hall, The Public Safety Building,The City Shop and The City Garage,The Boys &Girls Club,and eT\5ofvatedE40O12aeTheMorrisTradingPost. Table 3:District Heating Loop Boiler life 25 Capital cost $557,700.00 Annual O&M $500.00 Cords of Wood Annually 116.58 Oil Used Annually 15,155.10 Annual Fuel Savings $36,721.97 Total O&M $12,500.00 Total Fuel Savings $918,049.33 Lifetime Total Savings $347,849.33 Simple Payback (years)15.40 B/C ratio 1.61 Leoperative,irc.2004-05 Sb=D-£4/25 /2004™. UT,190)aatark,iw.ceeFigure1:Potential Districtine Loop Configurationi\cn The heating loop shown in figure 1 illustrates a tentative design that would incorporate buildings:14,16, 17,19,21,22,24,25.The new boiler housing (not to scale)would likely be situated behind the City Office/Hall. 813 West Norther Lights Boulevard Anchorage,Alaska 99503 T 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 fakeneroyauthorityrorgl October 13,2016 Table 4:Wood Stove Feasibility Wood Stoves Tribal Office (IRA building)City Office/Hall Boiler life 20 20 Capital cost $31,200.00 $62,400.00 Annual O&M $500.00 $500.00 Cords of Wood Annually 731 27.88 Oil Used Annually 950.00 3624.60 Annual Fuel Savings $2,301.92 $8,782.68 Total O&M $10,000.00 $10,000.00 Total Fuel Savings $46,038.46 $175,653.69 Lifetime Total Savings $4,838.46 $103,253.69 Simple Payback (years)17.31 7.53 B/C ratio 1,12 2.43 The wood stove sensitivity analyses for these buildings show that there is a wide range of operating scenarios that would save the community money. Sensitivity Analysis:Wood Stove,City Hall B/C Ratios |$150/Cord |$200/cord |$250/cord |$300/cord |$350/cord |$400/cord $3.50/gal 2.35 1.96 1.58 1.19 0.81 0.42 $4.00/gal 2.85 2.46 2.08 1.69 1.31 0.92 $4.50/gal 3.35 2.97 2.58 2.20 1.81 1.42 $5.00/gal 3.85 3.47 3.08 2.70 2.31 1.93 $5.50/gal 4.35 3.97 3.58 3.20 2.81 2.43 $6.00/gal 4.85 4.47 4.08 3.70 3.31 2.93 $6.50/gal 5.35 4.97 4.58 4.20 3.81 3.43 $7.00/gal 5.85 5.47 5.08 4.70 4.31 3.93 $7.50/gal 6.35.5.97 3.58 5.20 4.31 4.43 Sensitivity Analysis:Wood Stove,IRA Building B/C Ratios |$150/Cord_|$200/cord |$250/cord |$300/cord {|$350/cord |$400/cord$3.50/gal 1.08 0.90 -0.73 0.55 0.37 0.20 | $4.00/gal 1.31 1.14 0.96 0.78 0.60 0.43 $4.50/gal 1.54 1.37 1.19 1.01 0.83 0.66 $5.00/gal 1.77 1.60 1.42 1.24 1.06 0.89 $5.50/gal 2.00 1.83 1.65 1.47 1.29 1.12 $6.00/gal 2.23 2.06 1.88 1.70 1.53 1.35 $6.50/gal 2.47 2.29 2.11 1.93 1.76 1.58 $7.00/gal 2.70 2.52 2.34 2.16 1.99 1.81 $7.50/gal 2.93 2.15 2.5]2.39 2.22 2.04 lake ae ety0p>onary womnergyaut 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 hotityrorgt October 13,2016 Biomass Resource In January 2013,Tanana Chiefs Conference (TCC)was contracted by Maniilaq Association to conduct an inventory of forestry resources within the Northwest Arctic Borough;specifically,in the Noatak and Kobuk subunits.Based on information in this report it was found that the region surrounding Noorvik contains 1,376,514 ft of timber.This equates to a total of 11,724 cords of wood readily available to the community. The wood resource surrounding Noorvik is comprised primarily of white spruce with some balsa poplar/cottonwood and trace amounts of other species interspersed.Assuming a uniform species distribution of spruce and cottonwood as 65%and 8%respectively,this equates to 7,167 cords of harvestable spruce and 3,418 cords of cottonwood within roughly a 5-mile radius of the community.The energy content of each species of wood assumes an air dry moisture content of roughly 20%. Table 5:Biomass Resource Information Resource Cord Weight Energy Harvestable Composition (Ibs/cord)(MMBtu/cord)Cords Spruce Harvest 65%3,100 18.1 7,167 Cottonwood Harvest 8%2,400 15.0 1,139 Other Harvest 27%2,700 16.5 3,418 Weighted Average 2,936 17.4 Total 11,724 With an average tree maturation rate of over 100 years,the wood used by the community every year cannot exceed 1%of the total available resource in order to maintain sustainability.With 11,724 cords of wood in the harvest area this equates to 117 cords per year.As mentioned earlier,a district heating loop could use 117 cords of wood annually;100%of the allowable sustainable harvest.This is very concerning as over harvest could negatively affect the riverine environment and thus have dire consequences for the local subsistence lifestyle.In addition to the environmental impacts of over harvest, large scale biomass would also hinder,and possibly prevent,personal harvest that residents rely on for heating individual homes. AEA strongly recommends a more detailed forestry evaluation of the surrounding wood resources before developing a harvest plan and/or further pursuing any woody biomass heating systems. AEA Recommendations As stated in the Biomass Resource section of this report,the biomass availability in the harvest area of Noorvik is marginal at best.Based on the local woody biomass availability A large biomass project is not recommended.That being said,there are several smaller biomass options available to the community.There are several very efficient cord wood stoves that would be ideal to heat smaller buildings (such as the IRA building).More information about choosing an appropriate wood stove can be found at the US EPA website,burnwise (https://www.epa.gov/burnwise/choosing-right-wood-stove). Using a wood stove would require less wood than a biomass boiler unit,but would still need a steady supply of cordwood. To reiterate,the limiting factor for any biomass project in Noorvik is the availability of woody biomass. Any sizeable project should be carefully planned around the limitations of the forestry resources. yauthorityrorgi 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 October 13,2016 10 Appendix A -Fuel Assumptions 1.Annual heating fuel use by building is based on available data. 2.When data was unavailable,estimates were created based on building size and equivalent buildings in nearby communities with similar heating requirements. 3.Calculations were conducted assuming a heating oil price of $5.50/gallon and the price of Cord wood is $400/cord which is based on the price in Kobuk as of summer 2016 4.Cords of wood required to heat a given building was based on the energy content of the weighted average of available timber in the region.A typical cord used would be 65%spruce,8%poplar and contain 17.42 MMBtu/cord. 5.Energy content of wood assumes a general moisture content of 20%which would have been achieved 'by air drying the wood for 12 months. B -Capital Costs 1.Construction costs are based on estimates from previous studies and completed projects 2.Construction assumes a seperate boiler building will be constructed. 3.The District Heating Loop costs assumes two GARN 2000 unit will provide sufficient heat for the ocations. Capital Costs 1 Garn 2000 |1 Garn 3200 |District Heating Loop 1 Woo ve Housing construction/installation |$50,000.00 $50,000.00 $50,000.00 $2,000.00 \ Boiler Cost $20,000.00 |$46,500.00 $50,000.00 $5,000.00 Artic Pipe ($175/ft)_--$131,250.00 . Heat Exchanger/Piping--_|850,009.00 |\$50,000.00-,-_$114,000.00 - Extra Thermal Storage $5,000.00 |{$5,000.00 |/$5,000.00 - Controls/Electrical +_[|$10,960.00 |/$10,000.00 |/$10,000.00 - Freight \_$28%000.00 4 $87,800.00 ||$68,750.00 $5,000.00 Subtotal $160,000.00 |$199,000.00 |\$429,000.00 $12,000.00 Engineering (15%)$24,000.00 |$29,850.00 $64,350.00 $1,800.00 Contingency (15%)$24,000.00 |$29,850.00 $64,350.00 $1,800.00 / Total $208,000.00 |$258,700.00 $557,700.00 $15,600.00,/ C -Biomass Assumptions 1.Based on data from 2012 forestry measurements by TCC in various parcels in the Noatak subunit. 2.Approximately 35%of the subunit is within approximately 5-miles of Noatak.This yielded harvestable amounts used in calculations. 3.The distribution of tree species is: 1.65%white spruce 2.8%balsa poplar/cottonwood 3.27%other/deadwood 4.Cord calculations used 100 ft?to account for void space in wood stacking,this differs from the conventional 128 ft?figure used in a 4X4X8ft cord. MakenergyalthoritVrgl 813 West Northern Lights Boulevard Anchorage,Alaska 99503 1 907.771.3000 Toll Free (Alaska Only)888.300.8534 F 907.771.3044 Excaey Pa eee TREIGENRban GRIT ERE TEE Ta Nr gp Befle Be oeeee saneCptteaeeeeaeaeac FMAN NEERSLEOF HESTTtehpeneeegret Feasibility Assessment for Biomass Heating Systems Kiana,AK Contents 1.EXECUTIVE SUIMIMATLY ........-..ccccesscccrssecccccscsscceseccccsssscrsccescncccecenecccensceneacesecssorersscnsecnsessecssoneer IL.IMtrOCUCTION ........cccccccessesncsnssssscscaccesssesecooseeesecssessscesssenscsonceserscccasesscccasersscccesssccssccccessssens 2 Il.Preliminary Site Investigation ...............scscccvscssssecssscseesscesesvocsscosensensessecsesesseneessssseseecsees D PREVIOUS STUDIES .......cccccscscscsecsenseccesensessessnsessnananenaansaeeceseeneneaereedsedsseesseeesssdeeSesdaesseeeeneecneeessssesceeessesecsssessecesaeuscusesaseaee 3 COMMUNITY MEETING ...cscsssccessesssesssnscccseesnsnscceeseesssuesessessseceeesesseeaaeeseessonscesoecesceaesenessecnessuenecceneuseasaseceeecseconeneeeaocssaqogass 3 BUILDING DESCRIPTION .....ssssssecccosssscesensnsecssaseresstuecsensceseuscessseneessnaaensageeenseceneecensaoeseescedeasscssenereneeesesdeeeesceeeessnseesenaetessas EXISTING HEATING SYSTEM ....scsssesececccessnsstcccsesscreescescossseessessasnseceeseeseseeceeseesessecessonseeceeessscacsesesseeeaeecasusseuedecasnencceeeseneseseens BUILDING ENVELOPE..........cccsssssssscossonsscrscccecccesccceceeceesceeeeseessseensneesneerenaaenecaeceeneceeneeseeneeereresdeeseeneneeseesseeeeseerentscestenensqpenas AVAILABLE SPACE ........cccsscsccesssnsccccerescessccenaassaceaseeeeseessessseensatesesdseGsessesedaaseaesceeseseseseeeeeeeeaeeeneeseseeeeesessseessessasesooesssesaseeegs STREET ACCESS AND FUEL STORAGE........cssccecccceecceerssesscnssseccsseeeen BUILDING OR SITE CONSTRAINTS ....cccseesessscsscceseeeeceeesssssesesecesseeees PROPOSED DISTRICT HEATING SYSTEM .....ssssseescoeeeees ENERGY AGREEMENT .....sccsscscsrcsesessssssuscssoessenneesess BIOMASS SYSTEM INTEGRATION.......sesscssssessonteeceeeee BIOMASS SYSTEM TECHNOLOGY........cccsccssccceseccceseesesssnsscceceraccerscussssccesssesesesceeessesssneccsessosesenssccssesesseeceessesssnccscaneaoeeaaneaaaeaes IV.Energy Consumption and Costs.............ccccsccesccorcesssecrenssscssvescccesesssssssseccessssececsesscesseensens LO ENERGY COSTS ......csccssseosssosssccccusacusscesscecensnecccseesseessensssseseseeeseesssseeaneeeaeesssesesesussscosesersansseescccsusssunesnaasnansceecossoesecceeesoe WOOD ENERGY ......cccsccssscssceccesssceecceeeeeeeeesteeseseessssnsceeeeaeseeeesasesssssseeseeeeessaaanasaeaaeesceeeeeeceeeseeeeeeceatesesecensonsesssssonsrscerssoeees CORDWOOD....cececccecssscnssssessressececececeesancesecasscanseceseneeseessesseaaeaesessesesseaescseasseconsesecessossccecessesesescendoesecssessesesesssosanoeseesoees WOOD PELLETS ...cccscccosssssssrecessesssereceeecessnnnsccesensasssesssececeessseaeeessesessecanessessnasesssscuccesssessecasedececeeseossnsesssesessessonansonaaaeoess HEATING OIL...ccccssscccecscccsccccccceccecceceecceeeeceeeesessesessnnaneeaaaeeeaeneeseeessssdGeeseessseaesnesseueescaesaesaaasaeasseeseesseeessesesessssenccsnneese ELECTRICITY ......ccsssscccssccsscssccceccceccescoseeeeceeeeenseseseseepsnaaaeeaaaeeesdassesssssasssOaseeesssdstaGessassseeseeeesseseensseesceeseeesscesseseessessauacaraees EXISTING HEATING OIL CONSUMPTION BIOMASS SYSTEM CONSUMPTION .....ccsscccsssecesscccssssccessucecesccessneeesessnaesesceceeseeceseesgucescessaeeetesceneenssecessceesescoeesceceessnaseseneneses V.Preliminary Cost Estimating..............cccccssssssccscsssscssscsscesscssccsssscssssssscssencssssccssessessssscssoses LS VIE.Economic Analysis ...........:.-sssscccserscccsccccssssssecsscssscvsnvcsncccsccccsssssccccssvcsccssecescccscsssossesecsesees LO O8cM COSTS ..cscssscsesscccssscecestecceseeseessnteecsstcecsssscessnscenscessseessucusensoeaesssogecsonsenacesececesenseeeeaeesssaesuodensgoeeeesececseaseeeaaeaeenaess 16 DEFINITIONS.....ccsssssscesssccscecceceeseenececsessnsneececensneseressuecseeassedseaeeseasensosseesceaeeseesaaeseaseesecaeeensesssccesescsussesessessosasoeesssseensonss 16 RESULTS .ccccccccssccssssecscssececsceseustcsecsssccssntecsensenseesuseseceseasccucaecesnsuessaesescessueecsaesesceceneceseeteccestscacosensccsersoneesensnessnsensssges 18 SENSITIVITY ANALYSIS ......sscsssesssesssncssscnccsencesceeceeeseeeneneenereneeeseesssesecaeesseesseessseeeeeeeeneeseeseensseenscesssssessssesssooesanseaseesessseeenea 19 Vil.Heat Recovery Modifications at Water Treatment Plant............cccccccccsccsscssscnnnscsersosceeses LO ENERGY CONSUMPTION ......cccccccceccceeceecsencesssesseesneeneeesceeeeeeseneeeeetseseesneeaeeeeadseesesssesseseeseeaaeeeaeueasaeaeeeaeesdeessssesssecseecaonea HEAT RECOVERY UPGRADES.........006 PRELIMINARY COST ESTIMATE ECONOMIC ANALYSIS ......csssssesscossrcoeevesssseeees VIII.Forest Resource and Fuel Availability Assessments ..........sseccsssercsessecncsoscrsccsvercsscessssesses 24 FOREST RESOURCE ASSESSMENTS......ssssssssssssccecccccceccesessesessnenseaecanevssaeeesensssensnecsdcusseeesseseeessseseseseassssscauessasesseesersesccssnesees 24 AIR QUALITY PERMITTING......ccsssssssorsccccececcessesersesscsnsesaaaaeeeeceeseeecenseeesenenneeencanenseeseesseseseseaneseeeesaaeeeaaeeaeseasessesesonsenaeaagenaes 24 IX.General Biomass Technology Information ...........scssssssecccecssssssssssescccccccssssssseccnacesnessensoess 25 HEATING WITH WOOD FUEL.........cccccccsscescessccescsssesssesscnnneseceeseeesensssazscsacaseeeeseeseencssaessnaenpensagesansesscessensesesesesenensusgsosensoeses 25 TYPES OF WOOD FUEL .........ccccsecsssecssscsevsseseeceeeseeeeeneeeneesesessesseerscsseasueaesssesseneeeeeesseesecesagcnccacssessasenceceeeaecgecsossseneaeeeeeoans 25 HIGH EFFICIENCY WOOD PELLET BOILERS ..........cccccsssssssereccseeeecesesecsensessnnenesecacesencesseescsseeueecesesaeeeseesonsessesessssausdonsneaeceseess 26 Coffman Engineers,Inc.i Feasibility Assessment for Biomass Heating Systems Kiana,AK HIGH EFFICIENCY CORDWOOD BOILERS .........ccccccsssseccecercccensssscssesessceecenseseeecesenaaaaeseceeeeeuenseeceeceseuseesssceeedeeaseasesssapacccsssesevee 26 LOW EFFICIENCY CORDWOOD BOILERS..........csscccsssssecsceecccceeasccseeesccccseassessecesenaasseseeecessnsauessceceeeeucasessestssescsseseesssaccassesssecen 26 HIGH EFFICIENCY WOOD STOVES .......cccccccssscecccnnnennnccccanaccnasanseceesceesceeeecesceeseeaseeecceaseececeacecarsuacscessseneceseesecseeeteesecaseessoeeues 27 BULK FUEL BOILERS .......cccccsscssscccseccecesssssnecaeceecaeeeeceeeeceeeeecessseeesepessaesseusseeessesssensaaassssessesesstressesssesssesseeeseesansessesessucssess 27 GRANTS ...escccscscssescseecccsenscccsessteceecssenseecssesceceesesesaeseeseseeseuaesececenssaeeeaacesessnanaessessacenenecesessauusensencesecedacacarecessenecaeeesesesese 27 Appendices Appendix A -Site Photos Appendix B -Economic Analysis Spreadsheet Appendix C --AWEDTG Field Data Sheet Coffman Engineers,Inc.ii Feasibility Assessment for Biomass Heating Systems Kiana,AK Abbreviations ACF Accumulated Cash Flow ASHRAE American Society of Heating,Refrigeration,and Air-Conditioning Engineers AEA Alaska Energy Authority AFUE Annual Fuel Utilization Efficiency B/C Benefit /Cost Ratio BTU British Thermal Unit BTUH BTU per hour CCF One Hundred Cubic Feet CE}Coffman Engineers,Inc. CFM Cubic Feet per Minute Eff Efficiency F Fahrenheit ft Feet GPM .Gallons Per Minute HP Horsepower HVAC Heating,Ventilating,and Air-Conditioning in Inch(es) kWh Kilowatt-Hour Ib(s)Pound(s) MBH Thousand BTUs per Hour O&M Operations and Maintenance MMBTU One Million BTUs PC Project Cost R R-Value SF :Square Feet,Supply Fan TEMP Temperature Vv Volts Ww Watts WTP Water Treatment Plant Coffman Engineers,Inc.iii Feasibility Assessment for Biomass Heating Systems Kiana,AK List of Figures Figure 1 -Kiana,Alaska -Google Map .........escssssssesssssssseessssssccssssssenssasssscsnessssesseeteconassnsosenoseseseesoeessseeease 2 Figure 2 -City Warm Storage Building ............:ccscscsssscssssensssscesscessssesssassessssssssssassnesssssonsonessneeseesesesseeessaeseaes 2 Figure 3 -Option 1 -Proposed Site LayOut .........csccssccsscessrscssscssecsseesssesesseessescsseseseescseesnsesesssseossenesneeres 6 Figure 4 -Option 2 -Proposed Site LayOut ..........scssscssssccssscsseessreccsneessseesessesessessssesseessneseceeesssssnssssreneoeses 7 Figure 5 -Garn WHS-3200 Wood Boiler........c ec ccecsscsssssesssesseesssecssceeescseessssssusesuusessneessesecessusussesonesonecsesonsess 9 Figure 6 -Water Treatment Plant .........ccccsssssssesssecssessscssssesessseusessseessessecesecessensesseasssensesensesosesonaeausosssons 20 List of Tables Table 1 -Executive SUMMALY ..........scecccsscescnsrscessensecossoneeessaseetssescsseaenscssoeeesoneeesosaeseseanseseaasesssssasesesgaaeeses 1 Table 2 -List of Previous Biomass Related Studies ..............:sccssssccssonceecsssscescnesessenstrseseessegaessessaneeenseeseesas 3 Table 3 -District Heat Options .............cssssscccessesssssretecetscesnssasesenseseseseessooessnsnssoeesteneusderpossaseseesssceesenensesessenes 5 Table 4 -Energy Comparison .......scccssssssseceeecescscssseceeccssessseanecesesseeseessesesseseeeeessesesseesecoseseeessseesesnensseseeceens 10 Table 5 -Existing Fuel Oil COMSUMPpTION..........cee ceseseeceessseerceseenereseessarssecesoesssessscesorsceeeseseeeeasenseteaseeeasonee 11 Table 6 -Existing Oil Consumption of Each Option Without Biomass...esccessreesseeseceeeseeesseeseseeess 11 Table 7 -Proposed Biomass System Fuel CONSUMPTION .........csc eeesceeseeesesesseeecneccouererseesseseaeeeesceeseseesaaeeees 12 Table 8 -Estimate of Probable Cost -Biomass Option 1.0.0...ccsssesssssccccesssssceccecesssesceecsesssssaceescseseeses 14 Table 9 -Estimate of Probable Cost -Biomass Option 2............csssssscssesscessseecescseersssereeseneserscaseessatesesseees 15 Table 10 -Inflation rates .........cccscccssssnrecssscscescnscssssenseeessceceesssesaccesanseueeeseneaceacenessonsstonsscessospeceesonsasesenaeeess 16 Table 11 -Economic Definitions..............:ccescccsssccsncceseceesecccececsseccececeraeeseceesaeesscsenseeeneesseesesuaerseseseuseensesents 17 Table 12 -Economic Analysis ReSults................:cccssessccceocssnsessesesesessnesesessesseeenesesseessceseosesnoeesneeessaeeeeseeeaus 18 Table 13 -Sensitivity Analysis -Biomass Option 1 «0.0.0...cesseescercseceseeceosevsccesscereneseossseoeessseseseserseeeens 19 Table 14 -Sensitivity Analysis -Biomass Option 2 00.0.0...es ecessssseeseesceceseseeseececeesensoeessaseesesseeeseseseesoneasens 19 Table 15 -WTP Oil Consumption .............c.ccccsscessecessecesceesseeesceesnesseeessaceessseesacessaeessesesacesseeseseeesseeeeneesenees 20 Table 16 -WTP Energy Consumption with Upgrades ..............::ssscsssecsersersecesssessncevsncesaersrecesseeecsseeseeeteaees 21 Table 17 -Economic Analysis Results -WTP Upgrades ..............sccssssssccessscsscessscessesesscecsseesecensoneesseeseaeees 23 Table 18 -Sensitivity Analysis -WTP Heat Recovery Upgrades ..........::sscsscsssssccssssssssetssseccerseesoesneeseetees 23 Coffman Engineers,Inc.iv Feasibility Assessment for Biomass Heating Systems Kiana,AK I].Executive Summary A preliminary feasibility assessment was completed to determine the technical and economic viability of biomass heating systems for community buildings in Kiana,Alaska.The study evaluated a Garn style cordwood boiler system that would supply supplemental heat to the community buildings.The high price of heating oil is the main economic driver for the use of lower cost biomass heating. Two biomass system options were evaluated.Biomass Option 1 will connect six community buildings (City Warm Storage Building,City Office,Community Center,Fire Hall,Youth Center and Clinic)with a district heat loop.A Garn cordwood boiler will be located in a new detached module located behind the City Warm Storage Building.Due to the large project cost associated with connecting the buildings and the relatively low heating oil savings,it was determined that Option 1 is not justified on a purely economic basis at this time. Biomass Option 2 will connect three buildings (City Warm Storage Building,Clinic and School)with a district heat loop.To reduce costs,the Garn cordwood boiler is located inside the City Warm Storage Building.It was determined that Option 2 is economically justified at this time,due to the fact that the benefit to cost ratio of the project is greater than 1.0.An additional benefit is that the money used to purchase cordwood will stay in the local community,which can create loca!job opportunities. Upgrading the Kiana Water Treatment Plant's heat recovery system was also evaluated in this study.It was found that upgrading the heat recovery system is economically justified at this time.Upgrading the heat recovery system has a larger benefit to cost ratio than the biomass options.The summary of the results of the economic evaluation are shown in the table below. Table 1 -Executive Summary ..Water Item Biomass Biomass TreatmentOption1Option2PlantUpgrades Project Capital Cost ($872,000)($552,000)($391,000) Present Value of Project Benefits (20-year life)$1,012,598 $3,844,001 $1,225,437 Present Value of Operating Costs (20-year life)($446,880)($3,073,300)($402,301) Benefit /Cost Ratio of Project (20-year life)0.65 1.40 2.11 Net Present Value (20-year life)($306,283)$218,701 $432,136 Year Cash Flow is Net Positive First Year First Year First Year Payback Period (Year Accumulated Cash Flow >Project Capital Cost)>20 years 16 years 11 years if Kiana wishes to further pursue the biomass project,the next step is to complete a schematic level engineering design and detailed cost estimate of the projects.An updated economic analysis can be completed and Kiana can then decideif it is in its best interest to pursue funding to continue with final design and construction. Coffman Engineers,Inc.1 Feasibility Assessment for Biomass Heating Systems Kiana,AK ll.Introduction A preliminary feasibility assessment was completed to determine the technical and economic viability of a biomass heating system for selected community buildings of Kiana,Alaska.The biomass system is proposed to be located at the City Warm Storage Building and would heat community buildings with a district heating loop.The Kiana Water Treatment Plant was also evaluated for improvements to the existing heat recovery system. pee eats .ror pat,3 aoe,Py ain cae Figure 2 -City Warm Storage Building Coffman Engineers,Inc.2 Feasibility Assessment for Biomass Heating Systems Kiana,AK Ill,Preliminary Site Investigation Previous Studies There have been multiple biomass and heat recovery related studies completed for Kiana and the nearby region.These studies have looked at heat recovery improvements to the Water Treatment Plant,region wide biomass resource inventory,and region wide biomass feasibility.These past studies were used in developing this report and are listed below: Table 2 -List of Previous Biomass Related Studies Date Report Title ,Author .Alaska Energy and Engineering2010KianaHeatRecoveryStudy(Prepared for ANTHC) NANA Region Native Allotment Forest Tanana Chiefs Conference,Forestry Program2013aInventory(Prepared for Maniilaq) Biomass Project Feasibility and Design 2014 Report -Northwest Arctic Borough -Upper Tetra Tech Kobuk Region In general,the studies found that cordwood is a potentially viable energy resource in Kiana and that improvements to the Water Treatment Plant's heat recovery system are economically attractive. Community Meeting During the site visit,Coffman and a representative from the Alaska Energy Authority held a community meeting regarding the biomass and energy efficiency opportunities in the community.Twenty community members attended the meeting.Overall the community was very interested in biomass opportunities and very interested in developing local jobs for harvesting cordwood and operating biomass systems. Coffman Engineers,Inc.3 Feasibility Assessment for Biomass Heating Systems Kiana,AK Building Description The City Warm Storage Building is a 2,400 square foot metal framed shop that was originally built in 1980. In 2010 there was a major renovation that installed radiant floor heating,a new boiler and sheet rock to the walls and ceiling.The building is used about 40 hours per week by one to two people.Currently, there are no scheduled or planned renovations for the building. Existing Heating System The radiant floor of the City Warm Storage Building is heated by an Oil Miser boiler (OM-180,124 MBH Output,direct vent)a primary/secondary glycol loop.The boiler is located at the ground level at the back of the building.A Modine Unit Heater (POR100B,100 MBH Output)is mounted to the ceiling and provides supplemental heat to the air in the building.Both the boiler and unit heater were installed during the 2010 renovation.Each unit has its own wall mounted thermostat. The combustion efficiency of the existing fuel oil boiler is approximately 87%and the unit heater is 80%. For this study,the Annual Fuel Utilization Efficiency of the oil fired equipment was estimated at 75%to account for typical oil boiler inefficiencies,including short cycling. There is routine maintenance of the boiler by the City of Kiana maintenance.The boiler and unit heater appear to be in good shape and operating properly.No maintenance issues were reported to Coffman during the site visit. One 500 gal heating oil tank serves the building and is located on the south side of the building.There is no additional spill containment present around the tank.Fuel oil in the tanks is only used for building heating and is not used by other buildings. There is no domestic water heating or air handling systems at the CWS. Building Envelope The City Warm Storage Building is a typical 40ft by 60ft metal frame warehouse building.{tt is estimated to have R-13 wall and R-20 roof,made of foil faced fiberglass insulation.No design drawings of the building were available.Two large overhead doors face the street.No windows are present in the building. Available Space There is available space inside of the City Warm Storage Building for a biomass system.However,the City of Kiana would prefer a new detached building to house a biomass boiler system.There is adequate space located onsite behind the City Warm Storage Building for a new wood boiler building and a wood storage structure.The existing gravel pad will need to be expanded at the site in preparation for the new buildings. Street Access and Fuel Storage The City Warm Storage Building is located on a wide gravel road and can be easily accessed.Space for wood storage exists behind the building,which can be easily accessed by the existing gravel pad. Coffman Engineers,Inc.4 Feasibility Assessment for Biomass Heating Systems Kiana,AK Building or Site constraints There are no major building or site constraints that were found during the site visit.There are residential buildings on three sides of the City Warm Storage Building,which would make it difficult to expand the wood boiler system larger than the current lot size. Proposed District Heating System The City Warm Storage Building alone does not consume enough heating oil to make a viable biomass project.In order to offset a larger amount of heating oil,a district heating system is proposed.Two district loop options were investigated and are shown in the following table and figure.Both district loops will utilize buried,insulated piping to transfer heat from a biomass boiler system to the buildings connected to it. Table 3 -District Heat Options Map sla Option 1 Option 2 . #Building Name Connection Connection Integration 23 City Warm Storage Yes Yes Radiant Slab ReturnBuilding 7 Clinic Yes Yes Boiler Return and New Unit Heater 28 Fire Hall Yes No New Unit Heater 29 Community Center Yes No New Unit Heater 30 City Office Yes No New Unit Heater 35 Youth Center Yes No New Unit Heater 21 Tribal Office No No Potential Future Connection 24 School No Yes Boiler Return and New Unit Heater Coffman Engineers,Inc.5 Feasib ility Assessment for Biomass Heating Systems Kiana,AK /Option 1 will connect the crm Storage building,City Office,Community Center,Fire Hall,YouthCenterandClinictoadistrictheatloop.The biomass boiler will be located in a new module located behind the City Warm Storage Building. wari 1h pe SSCSTEThugPaopeeBtyF-t rit\eion e:_,aiae-tiAa4r|itesaD'JadtJRiana Troditional Cousicil =»|Saad fae en He Ee Sse"Hi 30 fet j /{ Aya.3 oe of.aa In ..mie :+ \o if pM oe cert AT OmeP/V (he 1;th ee Proposed ..:CWSeei:i "L f+Quit 'foim'Dgedto Ci1saa.Heating Loop z +t f "le may thwes Arete Borg tan]3,ue nd]PRE nt Oe ese E f >eS a et et §fh...7/1242000 ¥5.'am fe KB ty ala 8 NS fsteeseYeeteniaK -pA 'wm eee IRR IN _th :out dt 'oMSPeeAPaepeedtoYio7Bf>eniiog Resection ie sa'ff uP Sy ES aca eg eta |aa 5 e260oNYh =a\4>payee RRT f &a 7 5/8/200 :Od |!=19)S eee OR 1 PX auitheaim Deed t (\¢.uAI[x No City ef Kieno Way \.t .Z ./AD VA \; tH IRS woe ..¢LJ aeyaPahose Biomass BoilerMOSSepia'py ;BuildingBataeenayeGignae:4=|shy "4 <164 ba "A 5 a"J 'mieus buryOl Re |shoneIRNAAGAAL.AERHAe Figure 3 -Option 1 -Proposed Site Layout In the 2014 Tetra Tech study of nearby communities of Ambler,Kobuk and Shungnak,it was determined that using biomass to offset each community's school heating oil consumption would have an adverse effect on wood availability for the rest of the community.This is because of the significant heating oil consumption of the schools,compared to the rest of the community.Also,funding for the school does not come from local resources,so the impact on the community would not be as great if heating oil offset goto the school.Due to these reasons the school was not included in the Option 1 district heating system. Coffman Engineers,Inc.6 Feasibility Assessment for Biomass Heating Systems Kiana,AK Option 2 connects the City Warm Storage Building,Clinic and School,which are the largest heating oil consumers,to a district heat loop.To reduce costs,the biomass boiler will be located inside of the City Warm Storage Building. The Option 2 district loop was investigated because the economic analysis of Option 1 show that it is not economically justified,at this time.In order to reduce installed costs,the number of buildings connected to the district loop was reduced in Option 2.The schoo!was connected to the loop in order to increase heating oil offset by the biomass boiler.The goal is not to offset the majority of the school's heating oil, but rather provide supplemental heat to the school. alin =En anid awe ;eat STA ETT NY VDF x3mnSIEjNnad: oF GF ae en _e aadiee-*cane 4DecatOeCoupeAPO TR i +$ieBiomassBoilerqs3)|=ot 1insideCityWarmae{5 \onStorageBuildingA\thA:\ =2a =op as en AE NEeeOR .i ¥"Kn?,=.all:10 |.[>==.{Sef Quit foi Dged to ;:sy thwest Arctic Borgigh >|fi ayY.Bk.56,Rags.8644,666 r 4 9 IN noe '\;ey fF f ;re onyranufJeastesDeedtof15Kuf Proposed #16 5".6fa Cae s}aN4BREjk.'baa)i gaa |TRor>Heating Loop ,8/18/1982tec A \wane eee tT ppm dEUS Faris og nth ae NaeON'an aee NO 44259 aetna.1Y.)Ka:ws Le eminwenns nme A sm:; Figure 4 -Option 2 -Proposed Site Layout The Tribal Office building was not included in either district heating loop for this analysis,but could be connected in the future. Coffman Engineers,Inc.7 Feasibility Assessment for Biomass Heating Systems Kiana,AK Energy Agreement For either biomass option,the Garn unit will deliver heat to multiple entities:City of Kiana,Maniilaq (Clinic),and/or Northwest Arctic Borough School District (School).An agreement between these entities will be needed in order allow the project to move forward. For this economic analysis it is assumed that the entities would partner to fund,build and operate the biomass plant.BTU monitoring would be used to measure the amount of heat that each entity has used and each entity would be charged the BTU equivalent cord wood rate.This arrangement allows for the most cost savings for each entity. Another option is for the City to fund,build and operate the biomass plant independently and sell heat to Maniilaq and/or the School District.The City would sell the heat to make a profit in order to pay for the cost of building and operating the plant.BTU monitoring will be used.In this arrangement the City will need to set a BTU price that makes the project attractive to the other entities,while still being able to make enough profit to pay for project expenses. Biomass System Integration Heat from the biomass system would be integrated into each building in several ways,as shown in Table 3.Each building will utilize their own heat exchanger and pumps to deliver heat from the district heat loop to either new unit heaters or tie into the existing boiler system. In Option 1,new hydronic unit heaters will be installed in the City Office,Community Building,Fire Hall, and Youth Center.The new unit heaters will reduce installation costs and reduce control system complexity,compared with integrating into the existing boiler systems.Also,the new unit heaters can be designed to utilize lower temperature supply water.The Clinic will have both a new hydronic unit heater for the lobby area and a connection to the boiler return line.The biomass heat would tie into the City Warm Storage Building's radiant slab floor. In Option 2,the connections for the Clinic and City Warm Storage Building will be the same as Option 1. The School will have both a new hydronic unit heater in the gym and a connection to the boiler return line. It is assumed that an aggressive outdoor air supply water reset is added to the existing boiler systems of the Clinic and School.This will allow the existing hydronic systems to operate at lower supply water temperatures,which allows more heat to be extracted from the biomass boiler and reduces the amount of times the biomass boiler needs to be fired. Coffman Engineers,Inc.8 Feasibility Assessment for Biomass Heating Systems Kiana,AK Biomass System Technology Since cordwood is the local wood resource available in Kiana,the best biomass technology to implement is a Garn boiler type system.For this study,a single Garn WHS-3200 wood boiler was used as the basis of design.This unit has a 3,200-gallon water tank and is 7'4”wide x 7'8”high x 12'long. Figure 5 -Garn WHS-3200 Wood Boiler In Option 1,the Garn boiler would be housed in a new 8'wide x 20'long insulated module located behind the City Warm Storage Building.The module would contain circulation pumps,heat exchanger and controls.The module and interior components could be pre-constructed offsite and shipped to Kiana for installation. In Option 2,the Garn boiler would be located inside the City Warm Storage Building in order to reduce the costs of building a new module.The circulation pumps,heat exchanger and controls would also be located in the building. The Garn boiler would deliver heat to a heat exchanger,which would transfer heat to a buried piping loop system with 50%propylene glycol.This loop would deliver heat through a direct buried,insulated pipe to a new heat exchanger at each building. The biomass system should be designed to allow for additional garn boilers to be added in the future,if Kiana wishes to expand the project to offset further quantities of heating oil. Coffman Engineers,Inc.9 Feasibility Assessment for Biomass Heating Systems Kiana,AK IV.Energy Consumption and Costs Energy Costs The table below shows the energy comparison of different fuel types.The system efficiency is used to calculate the delivered MMBTU's of energy to the building.The delivered cost of energy to the building, in S/MMBTU,is the most accurate way to compare costs of different energy types.As shown below, cordwood is cheaper than fuel oil ona $/MMBTU basis. Table 4 -Energy Comparison rel Tye unite |ture |enticy |snt |SumatyCordWoodcord15,900,000 75%$250 $20.96 Heating Oil #1 gal 134,000 75%$5.50 $54.73 Electricity kWh 3,413 99%$0.60 $177.57 Wood Energy The gross energy content of a cord of wood varies depending on tree species and moisture content.Wet or greenwood has higher moisture contents and require additional heat to evaporate moisture before the wood can burn.Thus,wood with higher moisture contents will have lower energy contents.Seasoned or dry wood will typically have 20%moisture content.According to the previous resource assessments in the Kiana area,the wood species is primarily White and Black spruce.The 2014 Tetra Tech Biomass Study estimates that the average heating value of Black spruce is 15.9 MMBTU/cord,which was used for the calculations in Coffman's analysis.To determine the delivered $/MMBTU of the biomass system,a 75% efficiency for batch burning systems was assumed.This is based on Garn manufacturer documentation and typical operational issues which do not allow firing 100%of the time. Cordwood Cord wood can be purchased by local wood cutters for approximately $300 to $350/cord.However,a new road is planned to be constructed next year to access a new gravel pit for the expansion of the Kiana airport.This new road will give access to a large area of forested land that could be used for harvest.The City of Kiana estimates that with this new road,cord wood will be easier to harvest and the price will drop to $250/cord.For this analysis it is assumed that the price for cord wood will be $250/cord.A sensitivity analysis is completed to show how changing cord wood prices will affect the projects benefit to cost ratio. Wood Pellets There is no local wood pellet manufacturer or distributer in Kiana,which means that wood pellets would have to be barged into the community.Wood pellets are typically sold in 40 pound bags and shipped by the pallet (where SO bags are loaded on a pallet).Each pallet is one ton of pellets.Wood pellets are currently sold in Anchorage for $295/ton.The additional cost for shipping one ton of wood pellets by barge to Kiana would be significantly more expensive,making pellets cost-prohibitive compared to heating oil.Due to this factor,wood pellets were not considered as an economical fuel for this study. Coffman Engineers,Inc.10 Feasibility Assessment for Biomass Heating Systems Kiana,AK Heating Oil The high price of fuel oil is the main economic driver for the use of lower cost biomass heating.Fuel oil is shipped into Kiana by barge and currently costs approximately $5.50/gal.For this study,the energy content of fuel oil is based on 134,000 BTU/gal,according to the UAF Cooperative Extension. Electricity Electricity is provided by the local power utility,Alaska Village Electric Cooperative (AVEC).The City of Kiana receives a non-PCE rate of $0.60/kWh,which was used in this economic analysis. Existing Heating Oil Consumption Heating oil records for five city buildings were gathered for 2015 and are shown in the following table. The Clinic is operated by Maniilaq and heating oil records were not available,so annual heating oil consumption was estimated at 0.70 gallons per square foot.The heating oil consumption of the school was verbally reported by onsite maintenance during the site visit. Table 5 -Existing Fuel Oil Consumption a AnnualBuildingFuelTypeConsumption Net MMBTU/yr |Avg.Annual Cost City Office Building Heating Oil #1 950 gal 95.5 $5,225 Community Building |Heating Oil #1 850 gal 85.4 $4,675 Fire Hall Heating Oil #1 600 gal 60.3 $3,300 Youth Activity Center |Heating Oil #1 650 gal 65.3 $3,575 Warm Storage Heating Oil #1 1,300 gal 130.7 $7,150 Clinic Heating Oil #1 3,500 gal 351.8 $19,250 School Heating Oil #1 25,000 gal 2512.5 $137,500 The existing heating oil consumption for each district heating option is shown below. Table 6 -Existing Oil Consumption of Each Option Without Biomass .aon Annual Net Avg.AnnualOptionBuildingsServedConsumptionMMBTU/yr Cost City Warm Storage Building,Community Option 1 Building,Fire Hall,Youth 7,850 gal 788.9 $43,175 Center,Clinic,City Warm Storage Building .Clinic,City Warm StorageOption2Building,School 29,800 gal 2994.9 $163,900 Coffman Engineers,Inc.11 Feasibility Assessment for Biomass Heating Systems Kiana,AK Biomass System Consumption For Option 1,it is estimated that the proposed biomass system will offset 85%of the heating energy for the connected community buildings.The remaining 15%of the heating energy will be provided by the existing oil boilers,Toyo stoves or unit heaters inside each building. For Option 2,it is estimated that the proposed biomass system will offset 30%of the heating oil.The remaining 70%of the heat will be provided by the existing oil boilers in the Clinic,School and City Warm Storage Building. The percentage of heating oil offsets is based on an analysis of the buildings'annual heating oil consumption,compared to temperature BIN data and the heat output of the Garn boiler.{t is assumed that the Garn WHS-3200 is loaded every 12 hours,which will produce 150,000 BTU/hr with return water temperature of 125F per manufacturer documentation.More frequent loading is possible,which will increase BTU output and allow additional heating oil offset during colder times of the year.Overall,it is estimated that the Garn system will save approximately $22,160 and $30,094 in annual energy costs for Option 1 and Option 2,respectively. Table 7 -Proposed Biomass System Fuel Consumption Biomass Fuel Type %Heating Net Annual Energy non anneOptionYPSourceMMBTU/yr |Consumption Cost By ;bYCostSavings Cord Wood 85%670.6 56 cords $14,058 AdditionalElectricity N/A N/A 800 kWh $480 Cord Wood 30%898.5 75 cords $18,836 j 0,Option 2 ree 70%2096.4 20,860 gal $114,730 $133,806 $30,094 Electricity N/A N/A 400 kWh $240 Coffman Engineers,Inc.12 Feasibility Assessment for Biomass Heating Systems Kiana,AK V.Preliminary Cost Estimating An estimate of probable costs was completed for installing the Garn boiler system and district heating system for each option.The cost estimate is based upon equipment quotes and from previous cost estimates created for similar projects.A 15%remote factor was used to account for increased shipping and installation costs in Kiana.Project and Construction Management was estimated at 5%.Engineering design and permitting was estimated at 15%and a 25%contingency was used. Coffman Engineers,Inc.13 Feasibility Assessment for Biomass Heating Systems Kiana,AK Table 8 -Estimate of Probable Cost -Biomass Option 1 Category Description Cost Site Work Site Grading for Module S 4,000 Foundation (Timbers and Anchors)S 5,000 Buried Utilities S 5,000 Subtotal S 14,000 Electrical Utilities Service Entrance $4,000 Conduit and Wiring $4,000 Subtotal $8,000 Wood Boiler Building Insulated Module 8 ft x 20 ft $15,000 Garn Boiler WHS 3200 $45,000 Heat Exchanger $5,000 Installation,Piping &Materials $70,000 Fire Allowance $10,000 Controls Allowance $20,000 Electrical Allowance $10,000 Shipping $30,000 Subtotal $205,000 Heat Loop Distribution Excavation (Using Local Labor)S 30,000 Insulated Arctic Pipe (With Supply and Return Lines)S 90,000 Sand Bedding $15,000 Heat Exchangers for Each Building S 24,000 Circ Pumps for Each Building (2 each)S 24,000 Building Piping $30,000 Unit Heaters S 32,000 Clinic Boiler Connection $10,000 Shipping $20,000 Subtotal S 275,000 Subtotal Material and Installation Cost S 502,000 Remote Factor 15%S 75,300 Subtotal $577,300 Project and Construction Management 5%S 28,865 Subtotal S 606,165 Design Fees and Permitting 15%S 90,925 Subtotal $697,090 Contingency 25%$174,272 Total Project Cost $871,362 Budgetary Cost $872,000 Coffman Engineers,Inc.14 Feasibility Assessment for Biomass Heating Systems Kiana,AK Table 9 -Estimate of Probable Cost -Biomass Option 2 Category Description Cost Wood Boiler Install Garn Boiler WHS 3200 $45,000 Heat Exchanger S 5,000 Installation,Piping &Materials $50,000 Fire Allowance Sy 10,000 Controls Allowance $10,000 Electrical Allowance $10,000 Shipping $25,000 Subtotal S$155,000 Heat Loop Distribution Excavation (Using Local Labor)$14,000 Insulated Arctic Pipe (With Supply and Return Lines)$42,000 Sand Bedding S 7,000 Heat Exchangers for Each Building $12,000 Circ Pumps for Each Building (2 each)$12,000 Building Piping $15,000 Unit Heaters S 16,000 Clinic Boiler Connection $10,000 School Boiler Connection S 10,000 Shipping $25,000 Subtotal $163,000 Subtotal Material and Installation Cost $318,000 Remote Factor 15%S 47,700 Subtotal S 365,700 Project and Construction Management 5%S 18,285 Subtotal )383,985 Design Fees and Permitting 15%$57,598 Subtotal $441,583 Contingency 25%S 110,396 Total Project Cost $551,978 Budgetary Cost $552,000 Coffman Engineers,Inc.15 Feasibility Assessment for Biomass Heating Systems Kiana,AK VI.Economic Analysis The following assumptions were used to complete the economic analysis for this study. Table 10 -Inflation rates Discount Rate for Net Present Value Analysis 3% Wood Fuel Escalation Rate 3% Fossil Fuel Escalation Rate 5% Electricity Escalation Rate 3% O&M Escalation Rate 2% The real discount rate,or minimum attractive rate of return,is 3.0%and is the current rate used for all Life Cycle Cost Analysis by the Alaska Department of Education and Early Development.This is a typical rate used for completing economic analysis for public entities in Alaska.The escalation rates used for the wood,heating oil,electricity and O&M rates are based on rates used in the Alaska Energy Authority funded 2013 and 2014 biomass pre-feasibility studies.These are typical rates used for this level of evaluation and were used so that results are consistent and comparable to the previous studies. A net present value analysis was completed using real dollars (constant dollars)and the real discount rate, as required per the Alaska Department of Education and Early Development Life Cycle Cost Analysis Handbook. O&M Costs Non-fuel related operations and maintenance costs (O&M)were estimated at $700 per year.The estimate is based on annual maintenance time for the Garn boiler.For only the first two years of service, the maintenance cost is doubled to account for maintenance staff getting used to operating the new system.Labor costs for daily stoking of the boiler are not included,as this is typically completed by a maintenance person who is already hired by the organization that utilizes the boiler and stoking the boiler would become part of their daily duties. Definitions There are many different economic terms used in this study.A listing of all of the terms with their definition is provided below for reference. Coffman Engineers,Inc.16 Feasibility Assessment for Biomass Heating Systems Kiana,AK Table 11 -Economic Definitions Economic Term Description Project Capital Cost This is the opinion of probable cost for designing and constructing the project. Present Value of Project Benefits (20-year life) The present value of all of the heating oil that would have been consumed by the existing heating oil-fired heating system,over a 20-year period. Present Value of Operating Costs (20-year life) The present value of all of the proposed biomass systems operating costs over a 20-year period.This includes wood fuel,additional electricity,and O&M costs for the proposed biomass system and the heating oil required by the existing equipment to supply the remaining amount of heat to the building. Benefit /Cost Ratio of Project (20-year life) This is the benefit to cost ratio over the 20-year period.A project that has a benefit to cost ratio greater than 1.0 is economically justified.It is defined as follows: PV (Project Benefits)-PV(Operating Costs)B it /Cost Ratio =enefit /Cost Ratio Project Capital Cost Where: PV =The present value over the 20-year period Reference Sullivan,Wicks and Koelling,"Engineering Economy”,14"ed., 2009,pg.440,Modified B-C Ratio. Net Present Value (20-year life) This is the net present value of the project over a 20-year period.If the project has a net present value greater than zero,the project is economically justified.This quantity accounts for the project capital cost,project benefits and operating costs. Payback Period (Year >Project Capital Cost) Accumulated Cash Flow The Payback Period is the number of years it takes for the accumulated cash flow of the project to be greater than or equal to the project capital cost. This quantity includes escalating energy prices and O&M rates.This quantity is calculated as follows: J Installed Cost <Ry k=0 Where: J =Year that the accumulated cash flow is greater than or equal to the Project Capital Cost. Ry =Project Cash flow for the kth year. Coffman Engineers,Inc.17 Feasibility Assessment for Biomass Heating Systems Kiana,AK Results An economic analysis was completed for each option in order to determine the payback,benefit to cost ratio,and net present value of the proposed Garn boiler system,as shown in the table below.Any project with a benefit to cost ratio above 1.0 is considered economically justified. Option 1 has a benefit to cost ratio of 0.65 over the 20-year study period,which does not make the project justified on a purely economic basis.The main reasons for this low benefit to cost ratio is the high installation costs associated with connecting numerous community buildings and the relatively low amount of heating oil offset. Option 2 has a benefit to cost ratio of 1.40 over the 20-year study period,which makes the project economically justified.Installing the Garn boiler inside the City Warm Storage Building and only connecting the three high heating oil consumers reduces the installation cost of the project while also maximizing heating oil offset. The Alaska Energy Authority is now using a 25-year life span for the Garn Boiler for the Renewable Energy Fund applications.This means that the Garn will have five years of additional benefits after the 20-year study period. A cordwood storage building was not included in either option.Please refer to Appendix B for the economic analysis spreadsheet for greater detail. Table 12 -Economic Analysis Results Item Biomass Option 1 Biomass Option 2 Project Capital Cost ($872,000)($552,000) Present Value of Project Benefits (20-year life)$1,012,598 $3,844,001 Present Value of Operating Costs (20-year tife)($446,880)($3,073,300) Benefit /Cost Ratio of Project (20-year life)0.65 1.40 Net Present Value (20-year life)($306,283)$218,701 Year Cash Flow is Net Positive First Year First Year Payback Period (Year Accumulated Cash Flow >Project Capital Cost)720 years 16 years Coffman Engineers,Inc.18 Feasibility Assessment for Biomass Heating Systems Kiana,AK Sensitivity Analysis A sensitivity analysis was completed to show how changing heating oil costs and wood costs affect the benefit to cost (B/C)ratios of each project.As heating oil costs increase and wood costs decrease,the projects becomes more economically viable.The B/C ratios greater than 1.0 are economically justified and are highlighted in green.B/C ratios less than 1.0 are not economically justified and are highlighted in red.The sensitivity analysis shows that Option 2 is economically justified over a much wider range in cordwood prices and heating oil prices than Option 1. Table 13 -Sensitivity Analysis -Biomass Option 1 B/C Ratios Cordwood Cost $150/cord $200/cord $250/cord $300/cord $350/cord $3.50/gal 0.41 0.35 0.29 0.23 0.17 $4.00/gal 0.50 0.44 0.38 0.32 0.25 $4.50/gal 0.59 0.53 0.47 0.41 0.34 ;$5.00/gal 0.68 0.62 0.56 0.50 0.43 HeatingOilCost 55.50/gal 0.77 0.71 0.65 0.59 0.52 $6.00/gal 0.86 0.80 0.74 0.68 0.61 $6.50/gal 0.95 0.89 0.83 0.77 0.70 57.00/gal 1.04 0.98 0.92 0.86 0.79 $7.50/gal 1.13 1.07 1.01 0.95 0.88 Table 14 -Sensitivity Analysis --Biomass Option 2 B/C Ratios Cordwood Cost $150/cord $200/cord $250/cord $300/cord $350/cord $3.50/gal 0.90 0.77 0.64 0.50 0.37 54.00/gal 1.09 0.96 0.83 0.69 0.56 $4.50/gal 1.28 1.15 1.02 0.88 0.75 .$5.00/gal 1.47 1.34 1.21 1.07 0.94 HeatingOilCost 55.50/gal 1.66 1.53 1.40 1.26 1.13 56.00/gal 1.85 1.72 1.59 1.45 1.32 $6.50/gal 2.04 1.91 1.78 1.64 1.51 $7.00/gal 2.23 2.10 1.97 1.83 1.70 $7.50/gal 2.42 2.29 2.16 2.02 1.89 Coffman Engineers,Inc.19 Feasibility Assessment for Biomass Heating Systems Kiana,AK Vil.Heat Recovery Modifications at Water Treatment Plant During the site visit at Kiana,Coffman investigated the existing heat recovery system at the Water Treatment Plant (WTP)and evaluated ways to improve the system.The existing heat recovery system transfers heat from the nearby AVEC generator module through a buried,insulated arctic pipe.Heat is transferred through several heat exchangers to tank water and well line loop water.The heat recovery system is currently not connected to the WTP's boiler loop for building heat.The Alaska Native Tribal Health Consortium's (AHTHC)Alaska Rural Utility Collaborative (ARUC)is in charge of operating and maintaining the WTP.ANTHC was collaborated with to determine improvements and costs associated with upgrading the heat recovery system. Figure 6 -Water Treatment Plant Energy Consumption Based on energy data from the Alaska Native Tribal Health Consortium (AHTHC)for fiscal years 2014 through 2016,the WTP consumes approximately 9,500 gallons of heating oil annually. Table 15 -WTP Oil Consumption one Annual Avg.AnnualBuildingNameFuelTypeConsumptionNetMMBTU/yr Cost Water Treatment Plant Heating Oil #1 9,500 gal 954.8 $52,250 Coffman Engineers,Inc.20 Feasibility Assessment for Biomass Heating Systems Kiana,AK Heat Recovery Upgrades Based on coordination with ANTHC and the site visit,the following upgrades to the heat recovery system are recommended: 1.Re-pipe and replace heat exchangers to allow for the utilization of heat by the entire heating system and not just the raw water heat exchanger and water storage tank.This will involve installing a new heat exchanger on the return side of the boiler loop.Heat exchanger size to be verified. 2.Replace above ground heat recovery piping with similar size piping with 3”of insulation to increase available energy and recharge the system with glycol.Sizing of piping to be verified.wInsulate exposed piping inside water plant to reduce heat loss and condensation buildup. 4.Modify the AVEC heat recovery module to increase available energy.This will involve adding marine jackets to the diesel generators and upgrading the thermostatic valve.Coordination with AVEC on appropriate upgrades will need to be completed. Based on an analysis of AVEC's generator fuel consumption from 2013 to 2016,it is estimated that the modifications to the heat recovery system will allow a 90%offset of the WTP's heating oil.According to AVEC,the cost for heat recovery BTU's is approximately 30%ofthe cost of heating oil.It is unclear if AVEC is currently charging ARUC on heat recovery energy at this time.The savings associated with upgrading the heat recovery system is shown below. Table 16 -WTP Energy Consumption with Upgrades Fuel Tyoe %Heating Net Annual Energy note annualyenSourceMMBTU/yr Consumption Cost By nereyCostSavings 8,550 gal0,Heat Recovery 90%859.3 Equivalent $14,108 $19,333 |$32,918 Heating Oil 10%95.5 950 gal $5,225 Coffman Engineers,Inc.21 Feasibility Assessment for Biomass Heating Systems Kiana,AK Preliminary Cost Estimate An estimate of probable costs was completed for the WTP heat recovery upgrades.A 15%remote factor was used to account for increased shipping and installation costs in Kiana.Project and Construction Management was estimated at 5%.Engineering design and permitting was estimated at 15%and a 25% contingency was used. Category Description Cost WTP Work Add New Heat Exchanger to Return Side of Boilers S 50,000 Replace Above Ground Heat Recover Piping with insulated Arctic Pipe S 75,000 Insulate Piping Inside Plant S 50,000 Modify Heat Recovery Module and Install Marine Jackets $50,000 Subtotal Material and Installation Cost $225,000 Remote Factor 15%$33,750 Subtotal $258,750 Project and Construction Management 5%$12,938 Subtotal $271,688 Design Fees and Permitting 15%$40,753 Subtotal $312,441 Contingency 25%$78,110 Total Project Cost $390,551 Budgetary Cost $391,000 Coffman Engineers,Inc.22 Feasibility Assessment for Biomass Heating Systems Kiana,AK Economic Analysis An economic analysis of the WTP upgrades was completed using the same escalation factors used in the biomass study.The benefit to cost ratio of the project is 2.11,which makes the project economically justified.Compared with the proposed biomass project,the WTP heat recovery upgrade project has a higher return on investment. Table 17 -Economic Analysis Results -WTP Upgrades Project Capital Cost ($391,000) Present Value of Project Benefits (20-year life)$1,225,437 Present Value of Operating Costs (20-year life)($402,301) Benefit /Cost Ratio of Project (20-year life)2.11 Net Present Value (20-year life)$432,136 Year Cash Flow is Net Positive First Year Payback Period 11 years(Year Accumulated Cash Flow >Project Capital Cost) A sensitivity analysis was completed to show how changing heating oil costs and total project costs affect the benefit to cost (B/C)ratios of the heat recovery project.The B/C ratios greater than 1.0 are economically justified and are highlighted in green.B/C ratios less than 1.0 are not economically justified and are highlighted in red.The sensitivity analysis shows that the heat recovery project is economically justified over a wide range of project costs and heating oil costs. Table 18 -Sensitivity Analysis -WTP Heat Recovery Upgrades B/C Ratios Project Cost ($200,000)($300,000)($391,000)($500,000)($600,000) 53.50/gal 2.23 1.49 1.14 0.89 0.74 $4.00/gal 2.61 1.74 1.33 1.04 0.87 $4.50/gal 2.99 1.99 1.53 1.19 1.00 .$5.00/gal 3.36 2.24 1.72 1.34 1.12 HeatingOilCost 55.50/gal 3.74 2.49 1.91 1.50 1.25 $6.00/gal 4.12 2.74 2.11 1.65 1.37 56.50/gal 4.49 2.99 2.30 1.80 1.50 $7.00/gal 4.87 3.25 2.49 1.95 1.62 57.50/gal 5.25 3.50 2.68 2.10 1.75 Coffman Engineers,Inc.23 Feasibility Assessment for Biomass Heating Systems :Kiana,AK Vill.Forest Resource and Fuel Availability Assessments Forest Resource Assessments Several Forest Resource Assessments have been completed in the Kiana area.Refer to Table 2 for a list of the resource assessments. It is recommended that a local biomass resource study be completed for both Kiana and the nearby community of Noorvik,similarto the Tetra Tech report.A 25-mile radius around each community should be studied to determine actual biomass resources available and what a sustainable harvest of wood will be. Air Quality Permitting Currently,air quality permitting is regulated according to the Alaska Department of Environmental Conservation Section 18 AAC 50 Air Quality Control regulations.Per these regulations,a minor air quality permit is required if a new wood boiler or wood stove produces one of the following conditions per Section 18 AAC 50.502 (C)(1):40 tons per year (TPY)of carbon dioxide (CO2),15 TPY of particulate matter greater than 10 microns (PM-10),40 TPY of sulfur dioxide,0.6 TPY of lead,100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area,or 10 TPY of direct PM-2.5 emissions. These regulations assume that the device will operate 24 hours per day,365 days per year and that no fuel burning equipment is used.If a new wood boiler or wood stove is installed in addition to a fuel burning heating device,the increase in air pollutants cannot exceed the following per AAC 50.502 (C)(3): 10 TPY of PM-10,10 TPY of sulfur dioxide,10 TPY of nitrogen oxides,100 TPY of carbon monoxide within 10 kilometers of a carbon monoxide nonattainment area,or 10 TPY of direct PM-2.5 emissions.Per the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075),a person may not operate a wood-fired heating device in a manner that causes black smoke or visible emissions that exceed 50 percent opacity for more than 15 minutes in any hour in an area where an air quality advisory is in effect. From Coffman's discussions with Patrick Dunn at the Alaska Department of Environmental Conservation, these regulations are focused on permitting industrial applications of wood burning equipment.In his opinion,it would be unlikely that an individual wood boiler would require an air quality permit unless several boilers were to be installed and operated at the same site.If several boilers were installed and operated together,the emissions produced could be greater than 40 tons of CO2 per year.This would require permitting per AAC 50.502 (C)(1)or (C)(3).Permitting would not be required on the residential wood fired stoves unless they violated the Wood-fired Heating Device Visible Emission Standards (Section 18 AAC 50.075).Recent Garn boiler systems installed in Alaska have not required air quality permits. Coffman Engineers,inc.24 Feasibility Assessment for Biomass Heating Systems Kiana,AK IX.General Biomass Technology Information Heating with Wood Fuel Wood fuels are among the most cost-effective and reliable sources of heating fuel for communities adjacent to forestland when the wood fuels are processed,handled,and combusted appropriately. Compared to other heating energy fuels,such as oil and propane,wood fuels typically have lower energy density and higher associated transportation and handling costs.Due to this low bulk density,wood fuels have a shorter viable haul distance when compared to fossil fuels.This short haul distance also creates an advantage for local communities to utilize locally-sourced wood fuels,while simultaneously retaining local energy dollars. Most communities in rural!Alaska are particularly vulnerable to high energy prices due to the large number of heating degree days and expensive shipping costs.For many communities,wood-fueled heating can lower fuel costs.For example,cordwood sourced at $250 per cord is just 25%of the cost per MMBTU as #1 fuel oi!sourced at $7 per gallon.In addition to the financial savings,the local communities also benefit from the multiplier effect of circulating energy dollars within the community longer,more stable energy prices,job creation,and more active forest management. The local cordwood market is influenced by land ownership,existing forest management and ecological conditions,local demand and supply,and the State of Alaska Energy Assistance program. Types of Wood Fuel Wood fuels are specified by energy density,moisture content,ash content,and granulometry.Each of these characteristics affects the wood fuel's handling characteristics,storage requirements,and combustion process.Higher quality fuels have lower moisture,ash,dirt,and rock contents,consistent granulometry,and higher energy density.Different types of fuel quality can be used in wood heating projects as long as the infrastructure specifications match the fuel content characteristics.Typically,lower quality fuel will be the lowest cost fuel,but it will require more expensive storage,handling,and combustion infrastructure,as well as additional maintenance. Projects in rural Alaska must be designed around the availability of wood fuels.Some fuels can be harvested and manufactured on site,such as cordwood,woodchips,and briquettes.Wood pellets can also be used,but typically require a larger scale pellet manufacturer to make them.The economic feasibility of manufacturing on site is determined by a financial assessment of the project.Typically,larger projects offer more flexibility in terms of owning and operating the wood harvesting and manufacturing equipment,such as a wood chipper,splitter,or equipment to haul wood out of forest,than smaller projects. Coffman Engineers,Inc.25 Feasibility Assessment for Biomass Heating Systems Kiana,AK High Efficiency Wood Pellet Boilers High efficiency pellet boilers are designed to burn wood pellets cleanly and efficiently.These boilers utilize pellet storage bins or silos that hold a large percentage of the building's annual pellet supply.Augers or vacuums transfer pellets from the silos to a pellet hopper adjacent to the pellet boiler,where pellets can be fed into the boiler for burning.Pellets are automatically loaded into the pellet boiler and do not require manual loading such as in a Garn cordwood boiler.The pellet boilers typically have a 3 to 1 turn down ratio,which allows the firing rate to modulate from 100%down to 33%fire.This allows the boiler to properly match building heat demand,increasing boiler efficiency.The efficiencies of these boilers can range from 85%to 92%efficiency depending on firing rate. High Efficiency Cordwood Boilers High Efficiency Low Emission (HELE)cordwood boilers are designed to burn cordwood fuel cleanly and efficiently.The boilers use cordwood that is typically seasoned to 25%moisture content (MC)or less and meet the dimensions required for loading and firing.The amount of cordwood burned by the boiler will depend on the heat load profile of the building and the utilization of the fuel oil system as back up.Two HELE cordwood boiler suppliers include Garn (www.garn.com)and TarmUSA (www.woodboilers.com). Both of these suppliers have units operating in Alaska.TarmUSA has a number of residential units operating in Alaska and has models that range between 100,000 to 300,000 BTU/hr.Garn boilers, manufactured by Dectra Corporation,are used in Tanana,Kasilof,Dot Lake,Thorne Bay,Coffman Cove and other locations to heat homes,washaterias,schools,and community buildings. The Garn boiler has a unique construction,which is basically a wood boiler housed in a large water tank. Garn boilers come in several sizes and are appropriate for facilities using 100,000 to 1,000,000 BTUs per hour.The jacket of water surrounding the fire box absorbs heat and is piped into buildings via a heat exchanger,and then transferred to an existing building heating system,in-floor radiant tubing,unit heaters,or baseboard heaters.[n installations where the Garn boiler is in a detached building,there are additional heat exchangers,pumps and a glycol circulation loop that are necessary to transfer heat to the building while allowing for freeze protection.Radiant floor heating is the most efficient heating method when using wood boilers such as Garns,because they can operate using lower supply water temperatures compared to baseboards. Garn boilers are approximately 87%efficient and store a large quantity of water.For example,the Garn WHS-2000 holds approximately 1,825 gallons of heated water.Garns also produce virtually no smoke when at full burn,because of a primary and secondary gasification (2,000 °F)burning process.Garns are manually stocked with cordwood and can be loaded multiple times a day during periods of high heating demand.Garns are simple to operate with only three moving parts:a handle,door and blower.Garns produce very little ash and require minimal maintenance.Removing ash and inspecting fans are typical maintenance requirements.Fans are used to produce a draft that increases combustion temperatures and boiler efficiency.In cold climates,Garns can be equipped with exterior insulated storage tanks for extra hot water circulating capacity.Most facilities using cordwood boilers keep existing oil-fired systems operational to provide heating backup during biomass boiler downtimes and to provide additional heat for peak heating demand periods. Low Efficiency Cordwood Boilers Outdoor boilers are categorized as low-efficiency,high emission (LEHE)systems.These boiler systems are not recommended as they produce significant emission issues and do not combust wood fuels efficiently Coffman Engineers,Inc.26 Feasibility Assessment for Biomass Heating Systems Kiana,AK or completely,resulting in significant energy waste and pollution.These systems require significantly more wood to be purchased,handled and combusted to heat a facility as compared to a HELE system. Additionally,several states have placed a moratorium on installing LEHE boilers because of air quality issues (Washington).These LEHE systems can have combustion efficiencies as low as 25%percent and produce more than nine times the emission rate of standard industrial boilers.In comparison,HELEs can operate around 87%efficiency. High Efficiency Wood Stoves Newer high efficiency wood stoves are available on the market that produce minimal smoke,minimal ash and require less firewood.New EPA-certified wood stoves produce significantly less smoke than older uncertified wood stoves.High efficiency wood stoves are easy to operate with minimal maintenance compared to other biomass systems.The Blaze King Classic high efficiency wood stove (www.blazeking.com)is a recommended model,due to its built-in thermostats that monitor the heat output of the stove.This stove automatically adjusts the air required for combustion.This unique technology,combined with the efficiencies of a catalytic combustor with a built-in thermostat,provides the longest burn times of any wood stove.The Blaze King stove allows for optimal combustion and less frequent loading and firing times. Bulk Fuel Boilers Bulk fuel boilers usually burn wood chips,sawdust,bark or pellets and are designed around the wood resources that are available from the local forests or local industry.Several large facilities in Tok,Craig, and Delta Junction (Delta Greely High School)are using bulk fuel biomass systems.Tok uses a commercial grinder to process woodchips.The chips are then dumped into a bin and are carried by a conveyor belt to the boiler.The wood fuel comes from timber scraps,local sawmills and forest thinning projects.The Delta Greely High School has a woodchip bulk fuel boiler that heats the 77,000 square foot facility.The Delta Greely system,designed by Coffman engineers,includes a completely separate boiler building which includes a chip storage bunker and space for storage of tractor trailers full of chips (so handling of frozen chips could be avoided).Woodchips are stored in the concrete bunker and augers move the material on a conveyor belt to the boilers. Grants There are state,federal,and local grant opportunities for biomass work for feasibility studies,design and construction.If a project is pursued,a thorough search of websites and discussions with the AEA Biomass group is recommended to make sure no possible funding opportunities are missed.Below are some funding opportunities and existing past grants that have been awarded. Currently,there is a funding opportunity for tribal communities that develop clean and renewable energy resources through the U.S.Department of Energy.The Energy Department's Tribal Energy Program,in cooperation with the Office of !ndian Energy,will help Native American communities,tribal energy resource development organizations,and tribal consortia to install community or facility scale clean energy projects. http://apps1.eere.energy.gov/tribalenergy/ The U.S.Department of Agriculture Rural Development has over fifty financial assistance programs for a variety of rural applications.This includes energy efficiency and renewable energy programs. Coffman Engineers,Inc.27 Feasibility Assessment for Biomass Heating Systems Kiana,AK http://www.rd.usda.gov/programs-services The Department of Energy (DOE),Alaska Native programs,focus on energy efficiency and add ocean energy into the mix.In addition,the communities are eligible for up to $250,000 in energy-efficiency aid. The Native village of Kongiganak will get help strengthening its wind-energy infrastructure,increasing energy efficiency and developing "smart grid technology”.Koyukuk will get help upgrading its energy infrastructure,improving energy efficiency and exploring biomass options.The village of Minto will explore all the above options as well as look for solar-energy ideas.Shishmaref,an Alaska Native village faced climate-change-induced relocation,will receive help with increasing energy sustainability and building capacity as it relocates. http://energy.gov/articles/alaska-native-communities-receive-technical-assistance-local-clean-energy- development The city of Nulato was awarded a $40,420 grant for engineering services for a wood energy project by the United States Department of Agriculture (USDA)and the United States Forest Service.Links regarding the award of the Woody Biomass Utilization Project recipients are shown below: http://www.fs.fed.us/news/2012/releases/07/renewablewoods.shtml http://www.usda.gov/wps/portal/usda/usdahome?contentid=2009/08/0403.xml Delta Junction was awarded a grant for engineering from the Alaska Energy Authority from the Renewable Energy Fund for $831,203.This fund provides assistance to utilities,independent power producers,local governments,and tribal governments for feasibility studies,reconnaissance studies,energy resource monitoring,and work related to the design and construction of eligible facilities. http://www.akenergyauthority.org/re-fund-6/4 Program Update/FinalREFStatusAppendix2013.pdf http://www.akenergyauthority.org/PDF%20files/PFS-BiomassProgramFactSheet.pdf http://www.akenergyauthority.org/RenewableEnergyFund/RFA Project Locations 200ct08.pdf The Alaska Wood Energy Development Task Group (AWEDTG)consists of a coalition of federal and state agencies and not-for-profit organizations that have signed a Memorandum of Understanding (MOU)to explore opportunities to increase the utilization of wood for energy and biofuels production in Alaska.A pre-feasibility study for Aleknagik was conducted in 2012 for the AWEDTG.The preliminary costs for the biomass system(s)are $346,257 for the city hall and health center system and $439,096 for the city hall, health center,and future washateria system. http://www.akenergyauthority.org/biomasswoodenergygrants.htm] http://www.akenergyauthority.org/BiomassWoodEnergy/Aleknagik%20Final%20Report.pdf The Emerging Energy Technology Fund grand program provides funds to eligible applicants for demonstrations projects of technologies that have a reasonable expectation to be commercially viable within five years and that are designed to:test emerging energy technologies or methods of conserving energy,improve an existing energy technology,or deploy an existing technology that has not previously been demonstrated in Alaska. http://www.akenergyauthority.org/EETFundGrantProgram.htm! Coffman Engineers,Inc.28 Feasibility Assessment for Biomass Heating Systems Kiana,AK Appendix A Site Photos Coffman Engineers,Inc.29 Feasibility Assessment for Biomass Heating Systems Kiana,AK we OB eee *Mice a a ahtc eR 1.City Office Building Poserarmine3.Community Building ieee ieracnBios beeen_ .o 7 . ---r Coes ees ..:"jGh-!Be3idenoeheeribibo reeeed5S.Fire Hall Coffman Engineers,Inc.30 Feasibility Assessment for Biomass Heating Systems Kiana,AK ft He ;bieseeeJfi ©RTOrtantAnRANSegalayeMt7.Clinic 11.School 12.School--Typical Classroom Coffman Engineers,Inc.31 Feasibility Assessment for Biomass Heating Systems Kiana,AK Pally .Pag . gyn we odeeaOS .4 a. 13.School -Boiler Plant 17.Tribal Office 18.Tribal Office -Interior Coffman Engineers,Inc.32 Feasibility Assessment for Biomass Heating Systems Kiana,AK 20.Above Ground Well Loop Piping connecting to Water Treatment Plant 22.Heat Recovery Lines Connecting to Water Treatment Plant21.Water Treatment Plant Boilers Coffman Engineers,Inc.33 Feasibility Assessment for Biomass Heating Systems Kiana,AK Appendix B Economic Analysis Spreadsheet Coffman Engineers,Inc. Kane,Alecia hero royect Capaal CowcesendVakeeofProject Benetts (70 pee We)reser Valse of Operating Costs (20 year fe}Renefit /Cort Ratio of 120 year beyNetPreventaloe(20 year Me) ear Accumulated Cash How 1s Net Positive. jaar Aecummlated Cash Flow >Project Capal Com TaD yates]J [eter oesOrscountRatefor Net Prevent Vakee Anatyshjo0dFelEscalationRateFowlFuelEscalationRate,Electret Excaiatcon Rate.M EscalationRate Yeo Yeu Yoo Yer Teor Your eer Toor Yeu Yea Year Your Yor yew,Yew Year Year Yow ese Yesr 'Heating Source |Annual Energy]EnereyConeriptionritConProportionritaUnits 1 2 2 '5 Oo z 5 »10 1 32.re %3s.46,y Ey 9,»fexisting Heating Sywem Operating Coots 35 7,$43,373 $29,900 gs2a79 $55,308 70,928 free EUEE eiars $on.7se 94,206 ery 103,906 108.104 System T'ord Wood [Delivered to te)Be Ex mr EERE Bane Gres tier SEES MCSE (SAILS [SLELa Be FCS Bae SEE HEED GaossFuel$550 15%aR ee a Te ET =et (er poey my ES Sree EapesdrconallectoeoeagorEEoeBeToneFSa(SRperpenaodMandenanceCorte700}(ST a]aT or Gea](3a Gey Gan Cine]ord Costs for fwst 2 years,$760)'ST So 3 30 30 3 36 $0fe22.353i B25.105)SERIE](EIS 524 9301 5828 26,761 AEE 4735)39,7 Tt 536.971 --}}-____-4[anowal Operating Cont Sevings $20,816 $72,108 329.275 [$31,098 33,022 $35,054 $37,198 $35,461 PONT [$52,787] a eS ES RS SS |Few $2006 $43,006 ASO 11 |5161,209 |521423 245,285 286,483 325,943}S367 732}$412,160)$459,186 |$509,015 |$961,807 [tet Present Value ($851,790)(530.[SROG STOR ($785,550 ($761,787)($711,984)(5685.916)($659,050)531,372)($602,864)[$573,513 (5543,300)($512,210)(5480,22'($487,332)(541 3,508)[$378,737]383,002)($306,783) 'Sane Garebene:Outten 2.Kiona,Alaska z ak CostravenvohueofPropect Banefin {70 year We)resent ¥obue of Operating Cons(70 year WeBenetjContRatanofPropet(20 yew be} Ex Eiectrcay Escalation Rate[CRIA Escaletion Mate |Yaar You New Your Your Yoor ew Your Yew Your Yeu Yoor Your Yeu Your Year Your You ferryDoverigtionurecot]praporvan ues oes i 2 3 4 3 'z s 2 10.43 2 2 14 15 x 7 a »x existing Costs. Consumption =a Spitem Costs ord Wood {Deliveredtote}230 ws 78 Olcords.Ista"TEN AR?12217 'i 1873 ey {62476 ons Fuel 33 boa'20.86 gal 7 EY Se TERR Additional Electricity,3 Cu :Sor Kz Soke Set at DperationandMawvtenance Costs 1700)1S 4 (9 s8 15?ib the 15868 155.ES'Morntenancs Conta for Net 2 yeors 15700}30 30 30 30 30 0 Total Operating Costs ($435.120)134 408 161,588)41$369,245)$77,213)TRS,596)(5194,385|1 __($213.257)5243.25?) [Annual Operuting Cont Savings $28,780,$35,427,$37,535 335,967 SAT ADS $45,028 $7,770,[__ssa7iaAEEE-Flow.$28,780.$39,21 $92,756 $128,153 $165,B18 $205,7a5.$248,214 $293,242 $341,O13 $391,677 $448,396. 'Present Valve $524,056)176 OIE [ZETA (5200.729)eseras7 _(sa92.7s9y _(sz972194 _(oreoeoty _saza.sord (5188075 tana,Aosta of 2 ContresentValueofProject Benes [10 yea"Wa)B75 457 Present Value of Operating Costs (20 year Me),BeneMt {Cort Retic of Project |20 your ibe)Net Present Vahue (20 year kfe)ar ACCUThatedCashFew 8 RE PEATE 'Capitat Cost)13 years) ] ry lDscownt Rate tor Met Present Yalue food Fuel Excotation Rate ESFessFuelEscalationRatectrfoame Year Year Yeor Your Year,Year,Year,Your Your Your Yow Yeor Yeer Yeu Yoor Your Year Voor Your Year Masting Source |Annual Energy |EnergyDescription.Unk Cont Proportion:ete Unies:z 3 4 3 &Zz s 3 10 i 2 23 "3.7 pea Py FU » exseting Meeting.p-____}sd }_____j }___|aorESS2$3.30 fans oa.$43,310 [fences |sroane [grasa |797 {a7|19 |g0o.ses |pra.ns [poesia [pronase preeere 1 gi,nis Foe |"fiasres|Fiszess | S16 |(18 108]Gist Tie 6)EE)TS1s 87h]Tole 3541]eae 11?Ya]tsi?871 T318a07]Bis 9 Fo 1570 1141]Gro Tote ara Er 6 525 31h]jenn (STREET) leaking Ot $5.50)10K (55.275)135 4a RCT {6 043)(Gass Toa nea](esa CE)Gee GAS ay eet]SEED [ELE {e080 [sits [all are (arESc (SEO) Ackdetroral Electrecty 2.sie sae pre gel i)ED aca |Ee Een Ser]bard Ee spat FEST eT uM be Sora Sere $0.6 sol Fd $0 Fal $0.xo go 0 6 $0 Maintenance Costs for first 2 years 30 J so ca #.$0 $0.$0 EE]50]so EJ EJ so $0.Ea ED Ey ($19,633)($20.326)]}21,043}}($21,752)($22,567)){$33,374 ($25.072}]($25,971)($26,904)(327.8734 [$28.280)]($29,925)($31,010)($32,138)($33.309)($34,525){$35,789}}37,102)($38,467) Savings 12,618 $34,537 $36,560,$38,694 $40,943 $4315 15,815,$48,449 $51,226 5 S3 $57,236 $60,485 CJ 37,515 $74,314 $75,315,$79,530 $83.969 bat 3 SEE $32,618 $87,154 $103,714 $142,408 $183,351 $226,666 272,481 931 9372157 126,330.$483,546 344,031 $607,940.75,454 $746,768 5827,063 901,613 $985,582 $1,074 225 1,167,792 [Net Present Veher (s359333]($326,779(Sz89.371)](5258.942)]($223,624)($187.344)[$150,087]($111,855)($72,509)($32,$51,6 199,831 $103,405,$292,535 a8S 77.j30,390,16 Feasibility Assessment for Biomass Heating Systems Kiana,AK Appendix C AWEDTG Field Data Sheet Coffman Engineers,Inc. ALASKA WOOD ENERGY DEVELOPMENT TASK GROUP (AWEDTG) PRE-FEASIBILITY ASSESSMENT FIELD DATA SHEET APPLICANT:|}Zi ty of k Tang }{Local government D State agency O Federal agency 0 School/School District Eligibility:|0 Federally Recognized Tribe O Regional ANCSA Corp.O Village ANCSA Corp. (check one)|&Not-for-profit organization O Private Entity that can demonstrate a Public Benefit D Other (describe): Contact Name:|6red Reich C mays r\ Mailing Address:|2 82x _1¢0 City:Kiana State:|AK Zip Code:|99744 Office phone:|(907)479-2136 Cell phone:|(---}---- Fax:|(907)475-2174 Email:cibyclevk @ Ci by of ians.ong Facility Identification/Name:Liby Warm Sheraye Facility Contact Person:Nelson Walker (Cty hdmninistvatov) BY 7 fa LSFacilityContactTelephone:|(907)475-Sol 9 Facility Contact Email:admis tentyy 2 chy of Kana.oraww) SCHOOL/FACILITY INFORMATION (complete separate Field Data Sheet for each building) SCHOOL FACILITY (Name:VA (check all that apply) []Junior High [{]High School []Campus []Student Housing {]Pool (]Gymnasium []Pre-School {]Other (describe): +-fJ Elementary []Middle School___ Size of facility (sq.ft.heated):Year built/age: Number of floors:Year(s)renovated: Number of blidgs.:Next renovation #of Students:Has en energy audit been conducted?:|If Yes,when?*---» OTHER FACILITY (Name:C 'by [ern Shvace []Health Clinic []Water Plant []Multi-Purpose Bldg Type:|[]Public Safety Bidg.[]Washeteria []District Energy System []Community Center []Public Housing H Other (list):CHa P Size of Facility (sq.ft.heated)|]2Uoeo SP Year built/age:1i9¢o Number of floors:(Year(s)renovated:|2010 sasWeA reatinat Plar dtd wrk, Number of bldgs.:t bid,Next renovation:rot._te Frequency of Usage:|3 hes WZ!ay #of Occupants |J Z Has an energy audit been conducted?|NO If Yes,when?*Mo. *If an Energy Audit has been conducted,please provide a copy. HEATING SYSTEM INFORMATION "ONFIGURATION (check all that apply)©Heat plant in one location:hon ground level O below ground level H mezzanine Oroof CO atleast 1 exterior wallMoitterentheatingplantsindifferentlocations:How many?Zz What level(s)?CU 'fhe afey on af (ny . C1 Individual room-by-room heating systems (space heaters)a boiler on gn wh lew teeSsatDIsboilerroomaccessibletodeliverytrucks?_O Yes HNo sOat Lol. HEAT DELIVERY (check all that apply)}iHot water:0 baseboard radiant heat floor _()cabinet heaters O air handlers C radiators D other: D Steam: Hf Forcediducted air C1]Electric heat:(1 resistance O boiler O heat pump(s) O Space heaters f 6.00/ge4 ad tS HEAT GENERATION (check all that apply)Heating capacity Annual Fuel (Btuh /kWh)Consumption _|Cost FH ot water boiler:O naturalgas O propane O electric Hat fueloil O #2 fueloil 180,000 BM/,rv)iF D Steam boiler:Oi naturalgas Opropane Delectric O #1 fuel oil 0 #2 fuel oi <1300441 )bf¢5 ralro4paWarmairfurnace:Oi naturalgas O propane LC electric }1 #1 fuel oll Ch#2fueloil (90,e0%gr/hv )Combnec | 0 Electric resistance:Obaseboard UO duct coils | C)Heat pumps:D air source O)ground source UO sea water | "1 Space heaters:Owoodstove 1 Toyo/Monitor D other.| TEMPERATURE CONTROLS (type of system;check all that apply) Thermostats on individual devices/appliances;no central control system 3?Wen:prveyy -ab le . 0 Pneumatic control system Manufacturer:Approx.Age: O Direct digital control system Manufacturer:Approx.Age: Record Name Plate data for boilers (use separate sheet if necessary):©.)MiSe'”OM-]g oO foslev.piret veat- MedINE Poki0oB ,100,000 BIV/h¥.Unt het. Describe locations of different parts of the heating system and what building areas are served:;,J tBelesStevescadiantflormMpower[secondovy loop.wae fester xs FR dmtytcal,Describe age and general condition of existing equipment:Tasted 2010 U7 ey Lown hen . Uart flookt &geod she fe. . .LyWhoperformsbollermaintenance?CG:fy 4 f Ki aan Describe any current maintenance issues:NVart. Where is piping or ducting routed through the building?(tunnels,utilidors,crawlspace,above false ceiling,attic,etc.):Pastde by deny,Accoss thy . Describe on-site fuel storage:Number of tanks,size of tanks,location(s)of tanks,condition,spill containment,etc.: 500 gal ot!funk,Mo Spill Coats hewt, If this fuel is also used for other purposes,please describe: No.-. DOMESTIC HOTWATER -No ater W Senev courectel buildinUSESOFDOMESTICHOTWATERTYPEOFSYSTEM Check all that apply:Check all that apply: D Lavatories 0 Direct-firad,single tank 0)Kitchen OQ Direct fired,multiple tanks CO)Showers 0D Indirect ,using heating boiler with separate storage tank O Laundry 0)Hot water generator with separate storage tank 0 Water treatment D Other: O Other: What fuels are used to generate hot water?(Check all that apply):(]naturalgas OJ propane CO electric O #1 fuel oil O #2 fuel oil Describe location of water heater(s):iv aa. Describe on-site fuel storage:number of tanks,size of tanks,location(s)of tanks,condition,spill containment,etc.: west fr PHY. BUILDING ENVELOPE Wall type (stick frame,masonry,SIP,etc.):Mel rane BI)):Insulation Value:R-[3 €stimctey Roof type:_Vidated cll mol.Insulation Value:R-2 eStude/ Windows:OC single pane (double pane DO other:No pdadews Arctic entry(s):EL none Oat mainentrance only Dat multiple entrances C at all entrances Drawings available:D architectural UO mechanicai Olelectrcal WO Di-9S- dtside Air/Air Exchange;O HRV [I1CO,Sensor A/p ne ELECTRICAL 3 Utility company that serves the building or community:A VEC C P CE Commenity )Type of grid:0 building stand-alone Be!village/community power 1 railbelt gridEnergysource:(hydropower Heteser generator(s)OD Other:Electricity rate per Kwai?0.84 Demand charge:Mo é co Bul A flee vt NOW -PceElectricalenergyphase(s)available:JY single phase CO 3-phase ATE of §0-6 v/sKh. Back-up generator on site:0.Yes [No _If Yes,provide output capacity:v Are there spare circuits in MDP and/or electrical panel?:'res 0 No Record MDP and electrical panel name plate information:Yes WOOD FUEL INFORMATION »Wood pellet cost delivered to facility $__/ton Viable fuel source?Yes (to)Mo facessuv.Too Lemyte,®Wood chip cost delivered to facility $ -_/ton Viable fuel source?Yes (No)*-Cord wood cost delivered to facility $$&*G€4%cord Viable fuel source?Ges)No*Distance to nearest wood pellet and wood chip suppliers?hackers s¢+Faw banks.Can logs or wood fuel be stockpiled on site or at a nearby facility?Dprce at City wei Steveye. Who manages local forests?Village Native Corp,Regional Native Corp,State of Alaska,Forest Service,BLM,USF&WS,Other: New voad fplriaed tp <ecess NO ovavel C2.5 wiles lng t LS for ton 4 milesFrewpew)FE tS gues ia cord park cot wold be less C4 2ov-$20).Covethtly poses Are anA {{3vo q S50 fac,NAVA owns lear. FACILITY SITE CONSIDERATIONS ---Cety Warm Skint there good access to site for delivery vehicles (trucks,chip vans,etc)?Vves Are there any significant site constraints?(Playgrounds,other buildings,wetlands,underground utilities,etc.)? Ctese b&Shed F Cle. _.What are local soil conditions?Permafrost issues? Gvetl +Cla Pevmsfust exdh Ye down: Is the building in proximity to other buildings with biomass potential?If so,Which ones and How close?Tr cot feed waany Gly bigs ¢Clit &schustCanbuildingaccommodateabiomassboilerinside,or would an addition for a new boiler be necessary?Where would addition go?No Space taside Coty Shp »Ctcate untt fn now modele,Reem onset.Where would potential boiler plant or addition utilities (water/sewer/power/etc.)come from?-,hd Ot If,Alend,mss tlecbyahy,watePGmer con beIfnecessary,can piping be run underground from a central plant to the building?Where would piping enter boiler room? figry alrerd,runs Ondiry cn,Tey aleedly het Cxger-KY',loaderfpodeyee. OTHER INFORMATION Provide any other information that will help describe the space heating and domestic hot water systems,such as 4Isheatdistributionsystemloopingorbranching?Pr im 7 /s¢Condey loops hfs d anf flaw.For baseboard hydronic heat,what is the diameter of the copper tubing?Size of fins?Number of fins per lineal foot?Ave «Se bea Any other energy using systems (kitchen equipment,lab equipment,pool etc)?Fuel or energy source?Pvp.Any systems that could be added to the boiler system?Mof pnleded.Are heating fuel records available?fe S. PICTURE /VIDEO CHECKLIST ExteriorMainentryBuildingelevations aSeveralnearboilerroomandwherepotentialaddition/wood storage and/or exterior piping may enter the buildingAccessroadtobuildingandtoboilerroom”Power poles serving buildi Electrical service entryEmergencygenerator Meh, Interior aBoilers,pumps,domestic water heaters,heat exchangers-all mechanical equipment in boiler room and in other parts of the building. Boiler room piping at boiler and around boiler room Piping around domestic water heater va @ MOP and/or electrical panels in or around boiler roomPicturesofavailablecircuitsinMDPorelectricalpanel (open door). Picture of circuit card of electrical panel - Picture of equipment used to heat room in the alee baseboard fin tube,unit heaters,unit ventilators,air handler,fan coil)uwPicturesofanyothermajormechanicalequipment-Pictures of equipment using fuel not part of heating or domestic hot water system (kitchen equip.,lab equip.,pool,etc.)Pictures of building plans (site plan,architectural floor plan,mechanical plan,boiler room pian,electrical power plan)Aon (, Wood $+.How much local wood availability isthere?-®Ste resovyce ASSESS rom Will additional wood demand cause issues?-T>Ntkewn doesnt believe sh well. Dewi Wat well. Where would wood storage and wood drying occur:-»¢"hy Weaew S Woy € Typical Wind Direction at Storage Area:-->» Eus $. Local Wood Species (Birch,Spruce)"[ac k Sopuce Moisture Content of Wood (Wet,dry,MC%);MC )dep twds.Cutts usually ge t dey peed. Domestic Hot Water Avg DHW Usage (ASHRAE Daily Avg for Office Bldg is 1.0 gal/day):A/om ¢, Logistics Orake Cons frrte.Vites +Cwwely Beese hw fell.CFeel hat watevesReve(0+of Kotz.)vilks ¢+way coe peosg ook Spry Ocge tavel S, How are construction materials shipped to Village (barge company): Herve C Lynden Aw CavgoS.Aah Barge.AneIstherelocalgravelorfill?How far away?Ss 'Gan do EM lued.(442k te icine ) Covent sve pet iy OLS wele Amey at Sewev layoun. Shte will ext-A fneny,fonds pee ($0 mM),Smyeur.pot.Try vill bold one-fore wk ff ne gue vr per (2.5 w.'lesaury).Gees o-t bh BM Mm 2017 Gran pit bssGudqeelibygyre(lope bes)fe buemsss ose,FralseisoagoodACCESSponkherLporebrumsss (Meno 8/206 In analyzing the application of4 biomass heating applications (Noorvik,Kiana,Noatak,Port Heiden) along with other currently available information from DCRA,the following conclusions have been reached: 1)Fuel Sources The communities of Noorvik and Kiana are on the lower reaches of the Kobuk river and both have ample timber resources,though a land management plan will need to be developed to ensure the timber is harvested in a sustainable fashion;the same can be said of Noatak,on the Noatak river.Port Heiden however has woody biomass and will need to rely on driftwood and waste biomass converted into biobricks as a key component to any biomass boiler systems. 2)Noorvik Noorvik is proposing to replace the current oil fired boiler in the Tribal Office Building (TOB)with a cord wood fired boiler.There is currently no land management plan in place,such a plan would need to be developed should the grant be issued. Noorvik also has a heat recovery loop in the final stages of design that would bring excess heat from the power house to the water treatment facility via a hydronic insulated piping system.This heat recovery loop would run in close proximity to both the high school and the proposed wood fired boiler in the TOB.Slight modifications would allow the proposed heat loop to be incorporated the TOB into the heat loop.However,this would add to the heat load which would require a supplementary heat system that could be tied into the heat loop. Ideally the addition of a boiler in the TOB that could be tied into the heat recovery loop would produce the most benefit.It would produce extra heat for the TOB that could be shared with the water treatment plant and possibly the following buildings: e High School e Boys &Girls Club e 2 City Shops (1 public,1 private) e Public Safety building e OTZ Telephone building 3)Kiana Kiana wants to explore the possibilities of replacing their current oil fired boilers with a biomass system to heat their water treatment plant.There are wood resources in the area,though a land management plan is required to ensure the trees directly surrounding the community are not totally depleted within the first few seasons of operation. A heat recovery loop that would harness excess heat from the AVEC Powerhouse(s)and tie into the proposed boiler and possibly the following structures: e "Sno-Go”shop e OTZ Telephone Company 3/7/16 Dan Smith -AEA e Large Residential Building (roughly)West of AVEC power e Kiana Traditional Council Offices e "Unnamed”Office -Taylor Road/Kozak Street e Postal Building Ideally the system would closely resemble the proposed system in Noorvik or Kobuk. 4)Noatak The village of Noatak would like to replace the oil fired boiler in its Tribal Office Building (TOB)with a cordwood boiler.If this boiler system is funded,it may be able to be tied into a heat loop system that could encompass the local Post Office,with potential to extend out to several residential buildings,the OTZ telephone Coop.,and a nearby church.A possibility also exists for a separate heat recovery loop between the AVEC Powerhouse(s)and the water treatment plant.This heat recovery loop is in close enough proximity to the TOB that it may be feasible to incorporate the proposed biomass boiler in this heat loop. It should also be noted that the price of heating oil in Noatak is $11/gallon.This fact makes a biomass boiler extremely attractive,even if a heating loop system is not possible.However,if a heating loop system is added the fuel savings would increase dramatically,especially if the water treatment and powerhouse were included.- The ideal heating project for this community would be a biomass boiler in the Tribal Office Building tied into a heat recovery loop running between the AVEC Powerhouse(s)and the water treatment facility. 5)Port Heiden The Community of Port Heiden would like to explore the possibility of using a wood pellet fired boiler to heat Ray's Place Community Center (Ray's).The community plans to create wood pellets by shredding driftwood,waste wood/cardboard (from shipping),and some harvest of willow and alder from nearby. This would require the purchase of shredding/chipping equipment,and a pellet mill.Another possibility would be using "biobricks”,which could conceivably be created from a more conventional trash compactor and do not require biomass to be ground up into fine particles.A conventional wood chipper could shred the proposed fuel sources into material fine enough to be compressed into a "biobrick”. Another important note is that pellet fired boilers require very high quality fuel,which in this case would be cost prohibitive.Cordwood (and biobrick)boilers are able to burn much more varied fuels,which would be more conducive to the current situation in Port Heiden. Port Heiden is currently in the information acquisition stage and is merely looking to explore what alternatives exist to their current oil based heating systems. 3/7/16 Dan Smith -AEA Thorne Bay City-Wide Biomass Pre-Feasibility Study PREPARED FOR:THE CITY OF THORNE BAY AUGUST 11,2014 ALASKA ENERGY AUTHORITY DONE BY:HELEN TRAYLOR UPDATED BY:HAN SAELOR Table of Contents EX@CUTIVE SUMIMATSY...........::ccccccecscsssteceeessseseesessesseeseeseuessseeseeeseessseeeaesssssesesesseseseseseeseouevesscoesensensceasersnsanansees 1 Table 1:AEA assessment of Thorne Bay's City DUIIGINgS ..............:ssccssssccessstccssnccesscercsseccsrsneers 1 Background.........:c.scsccssscsssscssesscssecseesnsssssesosevsssseessssssssesssesseuseuseusuesssaesoessesssaseesseaseussessesessussesasausssoneesesenasenses 2 ASSESSMENE ODJECHIVES.........ccssesesercesessesessceeesssoseccsseseeessvenscoonsensessconsasssnsnsassscnnessoonecessnsaseusoasesecueessssecesseees 2 City Hall/Clinic/Library.............cscssssssssssssssessssesssssscscsesssssscsssssesssscsssssssescessesessssusssseesceuseusesessceessssasssssseseoeeegs 3 Current Heating SyStOM............cesscsctccsseeesseessnseeesssssssscessusseussaesesensscseesseseussssaceesseseescusecsassseseseenseerenses 3 City Hall/Clinic Current Heating SySteim .........csscsscssessseessesccsescssersecssescsescsesssesessssesseessenseseseeres 3 Figure 1:Thorne Bay City Hall and Clinic Building 00...cesesssssscescssecsserseeseesestesesseteoesetenes 3 Figure 2:Thorne Bay City Hall and Clinic oil fired boiler With DHW...........scsscssssesssssesenseeeeees 3 Library Current Heating System ............scssscscessneessssecsonsccnseesscssnsssssosnesseseasonsseesevsneesessesscsesesecesenees 4 Figure 3:Thorne Bay Community Library Building...............vennessnsceecsssnsaneeeeeesssaneeeetsneuseeesssssaees 4 Figure 4:Toyo Stove in Thorne Bay Community Library Building ............cesscessseesserereersesseeees 4 Current Fuel Usage ..........cccccecescescsecssssensesessessessesasssessssecessesseesscessesseescsessesassesensssaseeeseesensssasessenseseueneaees 5 Table 2:Thorne Bay City Hall/Clinic and Library Fuel Usage (gallons)..............:ccsssssssssesesseees 5 Proposed Heating System for the City Hall/Clinic and Library ...........cssscsssessssseessessevscsscssesseseeseseesseees 5 Figure 5:Aerial view of proposed buildings in Thorne Bay...............-:csecceseeeeseessceteseeoneesseseeaes 6 Pellet SYStOMS .........:ceccceerceereecessectseesesesecesosescnsssnsesessscssseessccnssseassecssasenseesesesesseessasesssecousescesneeeneeetees 6 Figure 6:Small size pellet system SChEMAtic.............ssesescesceseecsesessseessessesssessseaseastscesseessceenens 7 Pellet StOVE.........ccssscssssesesecessscesscneeessseecsnsseessooosssescssscosssssssasceseeesonsousccssasonssneesoneasenseesecssssasseeasaseese 7 Figure 7:Pellet stove schematic.Courtesy of lowe@S.COM .............csscssscseecsseeesseseesersecersenenseneen 8 Pellet Fuel SUPDIy...........scccsscssersesccssssssscesssscsseessrssessscesssoonssaaesonssescogesecteccessnsesnssesssenersestesseseaersseeees 8 Capital Cost Estimate ............eeeesccscceecessesesesccessscncacsessssscseessesseesseceseraseessssosesoecosesceeaseesasessensensensaeeneses 9 Table 3:Capital Cost Estimate?:Thorne Bay City Hall/Clinic and Library -Pellet Boiler............9 ECONOMIC AnalySiS..........:ccseccessceersconstsersesoeeesecesseesseecesseeessecessseessussssaeessessssssssssoeecestcescseressesssoensensseoreess 9 Assumptions used in the ECONOMIC AMalySiS..........cssccssscsessssseecscecessssecsrscsesseressesstsesersesseesesenseeaees 9 Table 4:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler..................05+10 Alternatives Considered ............-c:sccecssessesseseseecesesscececesesesanssenedescecseassnsosssseuscessavesassesesesteesessesssaeenseenss 10 RECOMMENAATIONS............cccsesscesesesestsesesneasesaceesonseceessessencecescsaesseesonsneesssseusnesceesensesussseeseesenseeessnereesasees 11 Wastewater Treatment Plant...........cceeseesccescecssetcceeeessesecssessacsecoasensessesceessasesaesseessseeseenceasoneeseeenssereetes 12 Current Heating System for the Wastewater Treatment Plant (WWTP)..........ssssscsscsersescessessesseesers 12 Figure 8:The Wastewater Treatment Plant Building in the City of Thorne Bay,Alaska.........12 Figure 9:Heating/PUMP SYSCOM ..........cccceceseccesceneeseeteseceseencsseeessesseeseesssessenscssseessesseseaseneenees 12 Figure 10:PUMP SYSTEM .........cc cescsssssessseseesssssesessseeessssecesesesceassssessaessessccesersesedeceennessenneceeeses 13 Current Fuel Usage ...........ccccccesesecesesecesceseesenesedsesssssanseusssessssesesseascsescsescsssesecssarcesssssasseceseessuseaeseneeseesegs 13 Table 5:Thorne Bay Wastewater Treatment Plant Fuel Usage (gallons)................eesesereeeeee 13 Proposed Heating System for the Wastewater Treatment Plant............cccsssssssssesesessreseessesesesesesseess 13 Capital Cost Estimate .........eesesscsccesssssesseseesssssscessscsesescssseessosenssssesesesssesssssssnseesessessssesensseneneneseasens 14 Table 6:Capital Cost Estimate*:Thorne Bay Wastewater Treatment Plant -Pellet Boiler ....14 ECONOMIC ANalySis...........-cscceceeccececccesesssssseesesesscsecessesesesceresessrssaesereussessnressrasoneasnensssouttorsseseaseeseeeeouneas 14 Assumptions used in the ECOnomic AnalySis.........cccsccsessessseecncssecssesssserseessecerssssessrsnessesennseres 14 Table 7:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler..............se 15 Alternatives Considered .........ccccssscssersenceesecessecerseetsnesseneconsessceesessnsecesseasessunaesseecssesesuseesssesseneseassuunoes 15 RECOMMENAATIONS .........ccccsccseceesecereceesessenecceneteceececeseesedeentesteeessseeseseasasesseessesssesesassesessesseesessesscsssenesees 15 Water Treatment Plant ............:ccsscccssessseesessseessssscseseecevsneesscssescsstensscceseusaceueusensceeessussseseseeessseceesesseesnonseeenas 16 Current Heating System for the Water Treatment Plant (WTP).........cscssscscsrssesrscsscesstessesstensssseeesens 16 Figure 11:The Water Treatment Plant Building in the City of Thorne Bay,Alaska.................16 Figure 12:Toyo Stove in WTP Building ...........ccssssscscssressresssersecssessssenesssesssrseseessneesesseevsersans 17 Figure 13:The filtration tanks inside the WTP.........scccccsssesssessseeressresseessecssresensneessseseeseeesers 17 Current Fuel USage .........cccccsssscsccssnssceseceecescesoesesseceseesseesseesseessoseeesssessssaesnsassssssneasasssaeasseaseseseaseoesees 17 Table 8:Thorne Bay Water Treatment Plant Fuel Usage (gallons)...cscsccsssesesseseesserees 17 Proposed Heating System for the Water Treatment Plant............scssessssssereeseseesssessssnsesensneteasenseneeses 18 Capital Cost Estimate .....cc ccescscecsrsssesssssssnsessscsscscsssssecessssnsensssetsesessaesassensesseanseneeenseeseessereneucseeranes 18 Table 9:Capital Cost Estimate:Thorne Bay Water Treatment Plant -Pellet Stove................18 ECONOMIC ANalYSiS...........:ccsscesscesceereoececeseserseseeesnesassessusesssaseneesssescensscsearonsnssosuesessesenesoateseresecseseneeeassaes 18 Assumptions used in the Economic AnalySis...........csscscssessssssercsssessssesscssrssceesecsecenssassnsersseavesasenes 18 Table 10:Simple Payback and B/C Ratio Analysis for a Pellet Stove ..........ccsssscsesssssesseeneee 19 RECOMMENAATION ........ccssccssececessseeecececeeteceeeccdeessscnsecesdcessssansesssasonsesceerseneaecssucecuavenessusesusescensaseseesoaurens 19 Fire Hall...........:ccccsescessssrccessrecssscessnscesevsecesescesecseecooneescessescsscassooueusseusaseceeesanaescasssusesasacecusenesesssceesessrerseseeerees 20 Current Heating System for the Fire Hallo...csc teessenssensseessnsesseensseensssssonsessseresseavorsascesecseeeeenses 20 Figure 14:Thorne Bay Community Fire Hall Building...ec cccsecesteeesseecsesseesesrssereenees 20 Figure 15:Toyo Stove in Fire Hall Building .............ccccccesssscsesssssessrecessssssessssseessesseseesseseseeeees 20 Current Fuel Usage ..........ccscscscsescssessceessessnssecessssscsscassessessessscaseasusssceesosesssssesussesessssasseseesseeensententes 20 Figure 16:Furnace in Fire Hall Building .............scsscssssessesessssessesecersessecenssecesceseessnrsesaesensoanes 21 Table 11:Thorne Bay Fire Hall Fuel Usage (gallons)..........ccscsseeeeseeeecesesnseessecsesseeseeeeeeneaee 21 Proposed Heating System for the Fire Hall...ees cescseecsssecsreeeseesseeesceesessesseeesessaeesnessassensesensess 21 Capital Cost Estimate ............:ccsesecceeeeeecesseeecscessceesnsseessenssecssdsusseeescessseeeessseessesoneesesseesecesseesersusesonserets 21 Table 12:Capital Cost Estimate:Thorne Bay Fire Hall -Pellet Stove...eee ceeesseessteeeees 21 ECOMOMIC ANalYSiS...........:scceesceseceeseetsceesscetesccessccessnccoreesesseesseesssesoscescoesesssessseessanseseesenseeeersseseseenaeesensesne 22 Assumptions used in the Economic AnalySis......0........sesscesceeesesseeceesecesseeeseseecaceseesesseesoaeeesansnees 22 Table 13:Simple Payback and B/C Ratio Analysis for a Pellet Stove ............:cccsscsseesesseesseeseees 22 RECOMMENGATION ..........cscecccsststesssscesssesceeseeeessnnecsssscsscessnesestssesnessonncescosseeeeesseesesseesesosseeesesstessasonerseaes 23 Appendix A:Cost Estimates for Alternative Options .........cc sseecessesscenssensenensseascsassersereseessseceresessasseseaee 24 Option #1:City Hall/Clinic -Small pellet boiler using existing Duilding «0.0.0....esssseseeseeterseeeeeeeeeeees 24 Table 14:Capital Cost Estimate®:City Hall/Clinic-Small pellet boiler using existing building deceseusneenscessesesesscsensensecsnsesseonsnsaseaseaeaenenecsesscausossseseenessseenersccsenssnenasescesesseseeesseeesensceetseeseenseseees 24 Table 15:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System...24 Option #2:City Hall/Clinic -Small pellet boiler with new pellet/silo DUiIdINg...........eseeceteecseseeeeees 24 Table 16:Capital Cost Estimate®:City Hall/Clinic -Small pellet boiler with new pellet/silo DUIIGING .........ssccsseccsssseceesscessseeeressessacscssccsceesssessesssssssseeesooeeeseseeecoseesesessssnacesesoasseesenennssepseseesses 24 Table 17:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System.......25 Option #3:Library -Pellet Stove ......es cessssssesseesssssessecessscssecoerscsusesacensessssenseusessasensessesdsstscrersereeees 25 Table 18:Capital Cost Estimate:Library -Pellet Stove .........ees ccsssesssececesseeceesseesesceesssseeess 25 Table 19:Simple Payback and B/C Ratio Analysis for a Pellet Stove ............:cc:sesssessesseseseesnens 25 Option #4:City Hall/Clinic and Library -Small pellet boiler with new pellet/silo building..................26 Table 20:Capital Cost Estimate?:City Hall/Clinic and Library -Small pellet boiler with new Pellet/silo DUIGING ............csceccssssssesceccecssceessseosecesccscessessessecesacescescsseseeseesseseacssesesessesseenesseseeess 26 Table 21:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System........26 Alternative Option for the Wastewater Treatment Plant 00...eee eceecseeceeececeenseseseessereseesseessees 26 Table 22:Capital Cost Estimate:Wastewater Treatment Plant -Pellet stove ............cscssees 26 Table 23:Simple Payback and B/C Ratio Analysis for a Pellet Stove .........ceececsesecsseseetesseees 27 APPeNndix Bu...eesesecseseececeeansessscsseesesesecesceneceasonessnsveneseasscnsesessesesvessasssesessesssvaneseesasessusesassnessaessesesesaeseseas®28 Table 24.Bulk Fuel Boiler System Vendors (partial list)..................-cesesessercseeesecescnneseeesseessseesetees 29 Executive Summary The City of Thorne Bay sought help from the Alaska Wood Energy Development Task Group (AWEDTG) investigating biomass heating options for city owned buildings to lower their cost of heating fuel.The City is interested in pellet stoves and pellet boiler systems due to their ease of use and successful operation in Southeast Alaska.Pellet boiler systems have an 80 percent and higher efficiency rate and would utilize the existing boiler room plus additional space if required.Table 1 summarizes the results of the investigation on the city buildings.This information will assist the City of Thorne Bay to make an informed decision on pursuing biomass as a heating option.Alaska Energy Authority (AEA)recommends they seek an AEA Renewable Energy Fund grant for design and construction of the pellet boiler system and other funding sources for the pellet stoves. Table 1:AEA assessment of Thorne Bay's city buildings Existing sas Existing Fuel Type of Biomass Estimated .Estimated sae .Existing Tons of Estimated .Building Heating Usage System .Annual Savings System Fuel (gallons per year)|(Recommendation)Pellets Capital Cost (20 year life)y 8 pery (per year)year lite City Oil Fired #2 FuelHall/Ctinic Boiler w/Oil 2,542 Pellet Boiler 20 $73,580 $3,934 and Library DHW Wastewater boiler w/#2 FuelTreatment..2,625 Pellet Boiler 21 $69,030 $3,938 Plant sidearm Oil DHW tank Oil Fired Water a tol #2 FuelTreatment..289 Pellet Stove 2.5 $7,188 $366FiredVentOilPlantSpace Heaters .Oil Fired #2 Fuel . Fire Hall Boiler Oil 917 Pellet Stove 8 $7,188 $1,136 Background Given the high cost of diesel and expected continued escalation,the City of Thorne Bay is interested in investigating other heating options for city owned buildings.Mr.Wayne Benner,Thorne Bay City Administrator,was highly receptive to evaluating the potential of heating the city owned buildings with wood heat and other biomass options in particular purchasing pellets in bulk for pellet biomass systems and pellet stoves.The proposed pellet systems would be high efficiency systems,80 percent and above. They would utilize the existing boiler room plus additional space if required.Also,he was open to other types of biomass systems such as pellet stoves. The Ketchikan Federal Building and Ketchikan Library have recently been converted to wood pellet heating.Initial responses from the operation and maintenance personnel on these systems have been positive.The Federal Building and Library have installed an ACT Bioenergy Boiler,and the Discovery Center has installed a Hurst Model.These systems are larger than what would be used in Thorne Bay, but they demonstrate the successful use of pellets in SE Alaska. Helen Traylor and Bob Deering were escorted by Wayne on a tour of the various buildings on Tuesday, March 5,2013.This report summarizes the AEA assessment of the following City owned buildings as a potential candidate for heating with wood. =City Hall &Clinic =Library =Fire Hall ="Water Treatment Plant »Wastewater Treatment Plant Assessment Objectives =Inspect the City owned buildings as a potential candidate for heating with wood =Evaluate the suitability of each facility for siting a wood-fired boiler ="Estimate the capital costs of a suitable wood-fired system ="Estimate the annual operating and maintenance costs of a wood-fired system #Estimate the potential economic benefits City Hall/Clinic/Library Current Heating System City Hall/Clinic Current Heating System The 2,552 square foot Thorne Bay City Hall and Clinic was constructed in 1980,with a normal occupancy of 5 people.The average number of hours of operation for this building is 5.5 hours per day,5 days per week. The current heating system in the City Hall and Clinic consists of oil fired boiler with domestic hot water installed in 1980.A hydronic baseboard heating system provides space heating to the facility.The facility ventilation system consists of (2)small exhaust fans. Figure 1:Thorne Bay City Hall and Clinic Building Library Current Heating System The 845 square foot Thorne Bay Library was constructed in 1985,with a normal occupancy of 1 person. The number of hours of operation for this building averages 5.7 hours per day,5 days per week. The current heating system in the Library consists of a MPI Monitor 2200 Oil Fired DVSH that provides space heating installed in 1985.An electric DHW tank (17 gallons)supplies domestic hot water to the facility.The facility ventilation system consists of several exhaust fans. Figure 3:Thorne Bay Community Library Building Figure 4:Toyo Stove in Thorne Bay Community Library Building OE aeS . man. Current Fuel Usage In 2011,the Thorne Bay City Hall and Clinic fuel oil boiler system used an average of 2,321 gallons of #2 fuel oil at $4.38 per gallon with the following monthly breakdown (based on purchase receipts)for space heating and domestic hot water. In 2011,The City of Thorne Bay paid $4.38 per gallon for #2 fuel oil.The fuel oil boiler system has used an average of 221 gallons of #2 fuel oil with the following monthly breakdown (based on purchase receipts)for space heating. Table 2:Thorne Bay City Hall/Clinic and Library Fuel Usage (gallons)? 2011 2011 2011 City Hall/Clinic City Hall/Clinic Library Total Domestic Hot Water Space Heating Space Heating January 50 240 38 328 February 46 195 29 270 March 50 195 27 272 April 48 155 19 222 May 50 112 11 173 June 48 77 6 131 July 50 62 3 115 August 50 60 3 113 September 48 86 7 141 October 50 137 16 203 November 48 188 27 263 December 50 226 35 311 Total 588 1,733 221 2,542 Total Cost (gallons @$4.38)$2,575 $7,591 $968 Grand Total $11,134 Proposed Heating System for the City Hall/Clinic and Library In most cases,small buildings individually do not spend enough on heating fuel to be able to pay fora project through potential savings.Combining multiple buildings increases the project costs without substantially increasing the annual fuel use.The library is located approximately 50 feet from the City Hall/Clinic building.The aerial view of the proposed buildings can be seen in Figure 5.Since the Library is operated almost entirely by volunteers,it would be beneficial to have a heating system that is low maintenance and easy to operate. A small district heating loop connecting the City Hall/Clinic and Library would be convenient and would not disrupt the day to day operations.There would be little to no operating expense to the Library.A small high efficiency pellet boiler is proposed for the City Hall/Clinic building and PEX piping would be used to integrate the Library to the system.Figure 5 depicts a potential route of the PEX piping.The 1 Thorne Bay City Hall/Clinic and Library energy audit conducted in 2011 was the source of this information. 5 boiler will utilize the existing space and the oil fired boiler would be removed.A pellet silo would be located immediately outside of the boiler room. The Public Safety Building which is approximately 50 feet from the City Hall/Clinic building could potentially be connected with PEX piping for an added cost.The Public Safety Building is not included in the capital cost estimates. Figure 5:Aerial view of proposed buildings in Thorne Bay. :1%,™ &Pied .4 _wT Ore IS:a.suxl ite Pellet Systems Pellet systems are fully automatic in fuel feed and offer low costs for both installation and operation.In a complete pellet boiler system,fuel is stored in a relatively low-cost grain silo and automatically fed, with no operator intervention,to the boiler or boilers with auger systems similar to those used for conveying feed grain on farms.The fuel-handling system uses electric motors and is run by automated controls that provide the right amount of fuel to the combustion chamber based on facility demand.No operator involvement is needed for moving pellets from storage to boiler,and pellets,unlike woodchips, will not jam the auger system.Operation is limited to ash removal and the maintenance of motors and augers,estimated to be about 20-30 minutes per week,and often less.No emission controls are anticipated for these small scale systems. A thermal storage tank is basically a "wide spot in the pipe”.It holds large amounts of water resulting in the storage of large amounts of heat.In essence,the boiler heats the water tank,and the tank heats the buildings.Thermal storage increases the overall efficiency of the biomass system by smoothing out the load.Wood fired boilers cannot change output as quickly as liquid fueled boilers.The thermal storage gives the boiler controls time to react.When loads are very low,the boiler can shut down and the water in the thermal storage meets the building demands.By monitoring the tank temperature,the boiler can anticipate when the load starts to increase or decrease,and can respond accordingly. Figure 6:Small size pellet system schematic. 1.Pellet Hopper f-4.Emissions 2 .Controls and Stack -->-oeos,4?Existing Heat Distribution Network Hot Water Out -> Cold Water Return 2.Boiler 3.Bottom Ash Collection aaaa)a Pellet stoves are designed to burn compacted wood pellets to provide heat.They are more efficient and easier to operate than wood-burning stoves,resulting in a cleaner-burning system.Pellet stoves operate on electricity,but some include battery backup in the event of a power failure.Pellets are loaded into a hopper that can hold as much as 130 pounds of pellets,depending on the stove.The hopper feeds the pellets through an auger into the heating chamber,where they are burned.The stoves are operated on a thermostat so the operation is very similar to that of a fuel boiler.The amount of heat output is controlled by how fast or slow the pellets are fed.A fan pulls in air from the room,blows it through the heating chamber and the warm air is blown back out into the room.Most pellet stoves have automatic starters. - Pellet Stove Wood pellet stoves burn efficiently with almost total combustion of the pellets.Since pellet stoves are automatically fed,they require very little maintenance and operations input.The hopper has to be filled every few days and the ash need to be cleaned out about once a week. Figure 7:Pellet stove schematic.Courtesy of lowes.com More information about pellet stoves can be found at Burnwise.com. Pellet Fuel Supply Tongass Forest Enterprises in Ketchikan is the supplier to the Federal Building and the library.They have recently started manufacturing pellets with sawmill waste.There are pellet plants in Fairbanks and Delta Junction,and numerous pellet plants in Washington,Oregon,California,\daho,Montana,Alberta and British Columbia.Sealaska Corporation is importing pellets from the lower 48 to supply the Sealaska Building in Juneau and the Elder Center in Haines and is investigating the opportunities to supply other pellet users in Southeast. Pinnacle Pellets in Prince Rupert,British Columbia has recently completed the construction of a large scale pellet export port facility and will be able to easily supply many times the current Alaska pellet demand if current supplies do not remain viable.Pinnacle alone is currently exporting 100,000 tons of pellets to Europe out of the Vancouver,BC port. Capital Cost Estimate Table 3:Capital Cost Estimate®:Thorne Bay City Hall/Clinic and Library -Pellet Boiler Description Unit Cost Quantity Budget Demolition of Existing Boiler $1,500 1 $1,500 Labor/Installation $5,600 1 $5,600 Pellet Boiler $12,500 1 $12,500 Silo +Foundation +Assembly $12,000 1 $12,000 Thermal Storage $2,000 1 $2,000 PEX Piping (Materials +Installation)'|$7,000 1 $7,000 Insulation $1,000 1 $1,000 Chimney Stack $2,000 1 $2,000 Unit Heater +Heat Exchanger $1,000 1 $1,000 Valves/Instruments/Piping $3,000 1 $3,000 Freight $6,500 1 $6,500 Electrical/Controls $2,500 1 $2,500 Total $56,600 Contingency 20%$11,320 Engineering 10%$5,660 Grand Total $73,580 $1,200 for trenching. 4 Cost estimates based on Haines study from Pacific Rim Mechanical,LLC received on September 13,2013. >PEX piping cost estimate based on Mentasta project done by Rex Goolsby on June 30,2014.$55/foot plus Economic Analysis There are many types of economic analyses used to evaluate energy projects.This evaluation uses Benefit to Cost Ratio and Simple Payback.The Benefit to Cost Ratio is the process used in the evaluation of the Renewable Energy Fund grant program and calculates the lifetime costs and savings of a project. A benefit to cost ratio of 1.0 means that project savings will pay for capital,maintenance and operating costs within the life of the equipment.Any project with a B/C ratio above 2.0 receives full points for the economic analysis category in the Renewable Energy Grant program.A simple payback analysis evaluates how many years it will take for the savings to offset the capital costs,see Table 4. Assumptions used in the Economic Analysis =Annual fuel usage =Building(s)square footage ="Current fuel oil price =Existing boiler efficiency =Energy content of #2 fuel oil =Percentage of fuel displacement with new system =Efficiency of pellet boiler =Energy content of pellets =Estimated annual pellet tonnage =Pellet fuel price *Annual additional maintenance costs 9 2,542 gallons 3,397 square feet $4.38/gallon 72% 138,000 Btu/gallon 100% 80% 16,000,000 Btu/ton 20 tons $360/ton (delivered) $600 ($500 for oil-fired boilers) Maintenance labor will utilize existing employees =Pellet Boiler Life 20 years Table 4:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler Thorne Bay City Hall/Clinic and Library (3,397 square foot building) Fuel Oil Cost (S per year @ $4.38 per gallon)®$11,134 Pellet Fuel Cost (S$per year @ $360 per ton)°$7,200 Annual Fuel Cost Savings $3,934 Total!Investment Costs $73,580 Simple Payback (yrs)?18.70 Benefit to Cost Ratio 1.37 3 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings >Annual fuel usage for the buildings is 2,542 gallons. ©20 tons of pellets used annually based on fuel consumption. Based upon the current fuel prices for wood pellets and #2 fuel oil,the pellet boiler will save $3,934 annually over the cost of diesel.The simple payback is 18.7 years with a 1.37 B/C ratio.In order to make the project more viable and achieve a B/C ratio of 2.0 the price of pellets would have to reach $200/ton or when the price of fuel oil reaches $6.55/gallon.The project would be considered unfeasible when the price of pellets is $455/ton. Alternatives Considered Many alternatives were considered but are not economically viable at this time.One alternative considered was to have a separate pellet system for each individual building.Another option was to have a small district heating loop connecting the City Hall/Clinic and Library in addition to the construction of a new building to house the pellet boiler and silo if space was unavailable. *Option #1 -City Hall/Clinic:The proposed small pellet boiler installed in the existing building for the City Hall/Clinic will cost $63,180.The system will save approximately $3,326 annually.The simple payback and B/C ratio are 19.00 years and 1.39.Although this project is technically feasible,this option was disregarded.Capital cost breakdown and economic analysis can be seen in Tables 14 and 15 in Appendix A. *Option #2 -City Hall/Clinic with new pellet/silo building:The proposed small pellet boiler with the construction of a new pellet/silo building for the City Hall/Clinic will cost $101,385.The simple payback and B/C ratio are 30.48 years and 0.87.The economic viability for the pellet system including the construction of a new building to house the pellet boiler does not meet the minimum requirement of the 20 year B/C ratio exceeding 1.0.Capital cost breakdown and economic analysis can be seen in Tables 16 and 17 in Appendix A. =Option #3 -Library:The capital cost for the proposed pellet stove installed in the library is $6,958.The pellet stove will save approximately $248 annually.The simple payback and B/C ratio are 28.06 years and 1.11.This option is not recommended due to the lack of easy 10 Operation.Capital cost breakdown and economic analysis can be seen in Tables 18 and 19 in Appendix A. *Option #4:City Hall/Clinic and Library with new pellet/silo building:The capital cost for the proposed City Hall/Clinic and Library including the new building to house the pellet boiler and silo will cost $112,185.The simple payback and B/C ratio are 28.52 years and 0.90.The project does not look viable at this time.Capital cost breakdown and economic analysis can be seen in Tables 20 and 21 in Appendix A. Recommendations The existing fuel oil boilers are near the end of their useful life and will soon need replacement.The City of Thorne Bay should consider pellet systems.The capital cost for a pellet boiler with distributed heating is slightly more costly compared to fuel oil systems;however,the predicted trends for the cost of pellets is more stable compared to petroleum-based fuels.The stability of pellet fuel will increase the amount of savings in future years because fuel oil costs have escalated and are unpredictable.The fuel oil cost and potential local fuel supply would be major factors in the decision-making process. A small district heating loop with a pellet boiler installed within the existing building for the City Hall/Clinic and Library does look viable at this time.The project would save approximately $25,1192 over the 20 year life of the boiler.To further improve the economic viability of this project a design build contract could be a great opportunity to help minimize engineering and overhead which would greatly reduce the capital cost of the project.If the project could be done approximately at a capital cost of $50,000 the B/C ratio would be 2.0.This would grant the project to receive full points for the economic analysis category in the Renewable Energy Grant Fund program.However,previous projects with similar economics have been funded through the Renewable Energy Grant Fund. It is recommend that the City of Thorne Bay seek funding opportunities for this project.One option to consider would be to use this pre-feasibility assessment to apply for final design and construction funds through the Alaska Energy Authority's Renewable Energy Grant Fund program. 2 Obtained from the Benefit/Cost model designed by the University of Alaska Anchorage Institute of Social and Economic Research,for use by the Alaska Energy Authority. 11 Wastewater Treatment Plant Current Heating System for the Wastewater Treatment Plant (WWTP) The 2,000 square foot Thorne Bay Wastewater Treatment Plant was constructed in 1985,with a normal occupancy of 1 person.The number of hours of operation for this building averages 8 hours per day,5 days per week. Figure 8:The Wastewater Treatment Plant Building in the City of Thorne Bay,Alaska. The current heating system in the WWTP consists of an oil fired cast iron boiler and a sidearm domestic hot water tank installed in 1985 that supplies domestic hot water to the facility.A hydronic baseboard heating system provided space heat to the facility.The facility ventilation system consists of 2 small exhaust fans. Figure 9:Heating/pump system 12 Figure 10:Pump system (=!2 Current Fuel Usage The City of Thorne Bay is currently paying $4.38 per gallon for #2 fuel oil.The fuel oil boiler system has used an average of 2,625 gallons of #2 fuel oil with the following monthly breakdown (based on purchase receipts)for space heating and domestic hot water. Table 5:Thorne Bay Wastewater Treatment Plant Fuel Usage (gallons)? 2011 2011 TotalDomesticHotWaterSpaceHeating January 24 284 308 February 22 238 260 March 24 247 271 April 23 208 231 May 24 169 193 June 23 133 156 July 24 119 143 August 24 117 141 September 23 140 163 October 24 187 211 November 23 233 256 December 24 268 292 Total 282 2,343 2,625 Total Cost (gallons @$4.38)$1,235 $10,262 Grand Total $11,498 Proposed Heating System for the Wastewater Treatment Plant The option for a pellet boiler is proposed for heating the Wastewater Treatment Plant.Although it appears that there is significant heat given off by the process pumps the WWTP is still using 2,625 gallons of fuel oil per year.The pellet boiler system will be installed within the existing boiler room and 3 Thorne Bay City Wastewater Treatment Plant energy audit conducted in 2011 was the source of this information. 13 the oil fired boiler would be removed.A small pellet silo would be located immediately outside of the boiler room. For information on pellet systems and pellet fuel supply see pages 7-8. Capital Cost Estimate Table 6:Capital Cost Estimate*:Thorne Bay Wastewater Treatment Plant -Pellet Boiler Description Unit Cost Quantity Budget Demolition of Existing Boiler $1,500 1 $1,500 Labor/Installation $5,600 1 $5,600 Pellet Boiler $12,500 1 $12,500 Silo +Foundation +Assembly $16,500 1 $16,500 Thermal Storage $2,000 1 $2,000 Insulation $1,000 1 $1,000 Chimney Stack $2,000 1 $2,000 Valves/Instruments/Piping $3,000 1 $3,000 Freight $6,500 1 56,500 Electrical/Controls $2,500 1 $2,500 Total $53,100 Contingency 20%$10,620 Engineering 10%$5,310 Grand Total $69,030 4 Cost estimates based on Haines study from Pacific Rim Mechanical,LLC received on September 13,2013. Economic Analysis See information on economic analysis on page 9. Assumptions used in the Economic Analysis =Annual fuel usage = Building(s)square footage 2,625 gallons 2,000 square feet =Current fuel oil price Existing boiler efficiency Energy content of #2 fuel oil Percentage of fuel displacement with new system Efficiency of pellet boiler Energy content of pellets Estimated annual pellet tonnage Pellet fuel price Annual additional maintenance costs Maintenance labor will utilize existing employees Pellet Boiler Life 14 $4.38/gallon 72% 138,000 Btu/gallon 100% 80% 16,000,000 Btu/ton 21 tons $360/ton (delivered) $600 ($500 for oil-fired boilers) 20 years Table 7:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler Thorne Bay Wastewater Treatment Plant (2,000 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)?$11,498 Pellet Fuel Cost ($per year @ $360 per ton)'$7,560 Annual Fuel Cost Savings $3,938 Total Investment Costs $69,030 Simple Payback (yrs)?17.53 Benefit to Cost Ratio 1.48 @Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings >Annual fuel usage for the buildings is 2,625 gallons. ¢21 tons of pellets used annually based on fuel consumption. Based upon the current fuel prices for wood pellets and #2 fuel oil,the pellet heating system will save $3,938 annually over the cost of diesel.The simple payback and B/C ratio for the capital cost of the pellet stove is 17.53 years and 1.48.In order to make the project more viable and achieve a B/C ratio of 2.0,the price of pellets would have to reach $245/ton or when the price of fuel oil reaches $6.15/gallon. The project would be considered unfeasible when the price of pellets is $467/ton. Alternatives Considered If there appears to be enough heat given off by the process pumps and piping to keep the plant operating area at a sufficient temperature,then the other option would be to install a pellet stove only in the office to substitute for the fuel oil being used. The capital cost for the proposed pellet stove installed in the WWTP is $8,913.The pellet stove will save approximately $3,938 annually.The simple payback and B/C ratio are 2.26 years and 11.47.Although this option is very feasible,this is not recommended until testing is performed to confirm that process heat can meet the majority of the heating load.Capital cost breakdown and economic analysis can be seen in Tables 22 and 23 in Appendix A. For information on pellet stoves see page 7. Recommendations The existing fuel oil boilers are near the end of their useful life and will soon need replacement.The City of Thorne Bay should consider pellet systems.The capital cost for a pellet boiler is slightly more costly compared to fuel oil systems;however,the predicted trends for the cost of pellets is more stable compared to petroleum-based fuels.The stability of pellet fuel will increase the amount of savings in future years because fuel oi!costs have escalated and are unpredictable.The fuel oil cost and potential local fuel supply would be major factors in the decision-making process. 15 A small pellet boiler installed within the existing building for the WWTP does look viable at this time. The project would save approximately $30,709*over the 20 year life of the boiler.To further improve the economic viability of this project a design build contract could be a great opportunity to help minimize engineering and overhead which would greatly reduce the capital cost of the project.If the project could be done approximately at a capital cost of $51,000 the B/C ratio would be 2.0.This would grant the project to receive full points for the economic analysis category in the Renewable Energy Grant Fund program.However,previous projects with similar economics have been funded through the Renewable Energy Grant Fund. It is recommend that the City of Thorne Bay seek funding opportunities for this project.One option to consider would be to use this pre-feasibility assessment to apply for final design and construction funds through the Alaska Energy Authority's Renewable Energy Grant Fund program. Water Treatment Plant Current Heating System for the Water Treatment Plant (WTP) The 840 square foot Thorne Bay City Water Treatment Plant was constructed in 1984,with a normal occupancy of 1 person.The number of hours of operations for this building average 8 hours per day,5 days per week. The current heating system in the Water Treatment Plant consist of two oil fired Toyo Stove Laser 73. oe oete ans gtaG.aw ”Ae cn: 7 a 2 oe ae S,44 ret Fe pe eeeee2LaeUBToraweRYgangstaSes 4 Obtained from the Benefit/Cost model designed by the University of Alaska Anchorage Institute of Social and Economic Research,for use by the Alaska Energy Authority. 16 Figure 12:Toyo Stove in WTP Building hea (Led -#or wy 2 EVO BS)eeQhae i WV, Current Fuel Usage In 2011,the City of Thorne Bay paid $4.38 per gallon for #2 fuel oil.The fuel oil boiler system has used an average of 289 gallons of #2 fuel oil with the following monthly breakdown (based on purchase receipts)for space heating. Table 8:Thorne Bay Water Treatment Plant Fuel Usage (gallons)° 2011 Space Heating January 50 February 38 March 36 April 25 May 14 5 Thorne Bay City Water Treatment Plant energy audit conducted in 2011 was the source of this information. 17 June 7 July 5 August 4 September 9 October 20 November 35 December 46 Total 289 Total Cost (gallons @$4.38)$1,266 Proposed Heating System for the Water Treatment Plant An EPA approved pellet stove is proposed for the Thorne Bay Water Treatment Plant For information about pellet stoves,pellet systems,and pellet fuel supply see pages 7-8. Capital Cost Estimate Table 9:Capital Cost Estimate:Thorne Bay Water Treatment Plant -Pellet Stove Description Unit Cost |Quantity Budget Demolition of Existing Toyo Stove/Fuel Tank (if applicable)|$500 1 $500 Labor/Installation $1,500 1 $1,500 Pellet Stove $3,000 1 $3,000 Freight $500 1 $500 Electrical/Controls $750 1 $750 Total $6,250 Contingency 15%$938 Grand Total $7,188 Economic Analysis See information on economic analysis on page 9. Assumptions used in the Economic Analysis =Annual fuel usage 289 gallons ®Building(s)square footage 840 square feet =Current fuel oil price $4.38/gallon =Existing boiler efficiency 72% =Energy content of #2 fuel oil 138,000 Btu/gallon *Percentage of fuel displacement with new system 100% * €fficiency of pellet boiler 80% =Energy content of pellets 16,000,000 Btu/ton #Estimated annual pellet tonnage 2.5 tons =Pellet fuel price ®Annual additional maintenance costs Maintenance labor will utilize existing emp! 18 oyees $360/ton (delivered) $600 ($500 for oil-fired boilers) =Pellet Boiler Life 20 years Table 10:Simple Payback and B/C Ratio Analysis for a Pellet Stove Thorne Bay Water Treatment Plant (840 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)?$1,266 Pellet Fuel Cost (S$per year @ $360 per ton)'$900 Annual Fuel Cost Savings $366 Total Investment Costs $7,188 Simple Payback (yrs)?19.65 Benefit to Cost Ratio 1.56 4 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings »Annual fuel usage for the buildings is 289 gallons. ©2.5 tons of pellets used annually based on fuel consumption. Based upon the current fuel prices for wood pellets and #2 fuel oil,the pellet heating system will save $366 annually over the cost of diesel.The simple payback and B/C ratio of the capital cost for the pellet stove is 19.65 years and 1.56.In order to make the project more viable and achieve a B/C ratio of 2.0, the price of pellets would have to reach $275/ton or when the price of fuel oil reaches $6.52/gallon. The project would be deemed unfeasible when the price of pellets is $470/ton.If the project could be done approximately at a capital cost of $5,600 the B/C ratio would be 2.0. Recommendation The existing fuel oi!boilers are near the end of their useful life and will soon need replacement.The City of Thorne Bay should consider pellet stoves because capital cost for pellet stoves and fuel oil systems are similar.Historically,the cost of pellets have been more stable when compared to petroleum-based fuels.The amount of saving should increase in future years because fuel oil costs have escalated and are unpredictable.The fuel oil cost and potential local fuel supply would be major factors in the decision- making process. The recommendation for a pellet stove in the Water Treatment Plant is feasible at this time.The project would save approximately $3,714°over the 20 year life of the boiler.Although the saving over the life of the boiler is small the effort will help reduce the overall cost of energy for the city.Lastly,the electric resistance unit heater backup was not working during the visit;it should be restored to working order. It is recommend that the City of Thorne Bay seek funding opportunities for this project.One option to consider would be to use this pre-feasibility assessment to apply for final design and construction funds through the Alaska Energy Authority's Renewable Energy Grant Fund program. 6 Obtained from the Benefit/Cost model designed by the University of Alaska Anchorage Institute of Social and Economic Research,for use by the Alaska Energy Authority. 19 Fire Hall Current Heating System for the Fire Hall The 1,925 square foot Thorne Bay Fire Hall was constructed in 1992,with a normal occupancy of 1-2 people.The number of hours of operation for this building average 1.7 hours per day,5 days per week. The current heating system in the Fire Hall consists of an oil fired boiler with domestic hot water installed in 1980.A hydronic baseboard heating system provides space heating and cooling to the facility.The facility ventilation system consists of two small exhaust fans. Figure 14:Thorne Bay Community Fire Hall Building Current Fuel Usage In 2011,the City of Thorne Bay paid $4.38 per gallon for #2 fuel oil.The fuel oil boiler system has used an average of 917 gallons of #2 fuel oil with the following monthly breakdown (based on purchase receipts)for space heating. 20 Figure 16:Furnace in Fire Hall Building Table 11:Thorne Bay Fire Hall Fuel Usage (gallons)' 2011 Space Heating January 160 February 123 March 118 April 85 May 44 June 19 July 10 August 10 September 25 October 65 November 113 December 145 Total 917 Total Cost (gallons @$4.38)$4,016 Proposed Heating System for the Fire Hall An EPA approved pellet stove is proposed for heating the office in the Fire Hall. For information about pellet stoves,pellets systems,and pellet fuel supply see pages 7 and 8. Capital Cost Estimate Table 12:Capital Cost Estimate:Thorne Bay Fire Hall -Pellet Stove Description Unit Cost |Quantity Budget Demolition of Existing Toyo Stove/Fuel Tank (if applicable)|$500 1 $500 Labor/Installation $1,500 1 $1,500 Pellet Stove $3,000 1 $3,000 7 Thorne Bay City Fire Hall energy audit conducted in 2011 was the source of this information. 21 Freight $500 1 $500 Electrical/Controls $750 1 $750 Total $6,250 Contingency 15%$938 Grand Total $7,188 Economic Analysis See information on economic analysis on page 9. Assumptions used in the Economic Analysis ="Annual fuel usage 917 gallons = Building(s)square footage 1,925 square feet =Current fuel oil price $4.38/gallon =Existing boiler efficiency 72% =Energy content of #2 fuel oil 138,000 Btu/gallon =Percentage of fuel displacement with new system 100% =Efficiency of pellet boiler 80% =Energy content of pellets 16,000,000 Btu/ton ="Estimated annual pellet tonnage 8 tons *Pellet fuel price #Annual additional maintenance costs Maintenance labor will utilize existing employees *Pellet Boiler Life $360/ton (delivered) $600 ($500 for oil-fired boilers) 20 years Table 13:Simple Payback and B/C Ratio Analysis for a Pellet Stove Thorne Bay Fire Hall (1,925 square foot building) Fuel Oil Cost (S per year @ $4.38 per gallon)®$4,016 Pellet Fuel Cost (S per year @ $360 per ton)°$2,880 Annual Fuel Cost Savings $1,136 Total Investment Costs $7,188 Simple Payback (yrs)?6.32 Benefit to Cost Ratio 5.34 3 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings »Annual fuel usage for the buildings is 917 gallons. ©8 tons of pellets used annually based on fuel consumption. Based upon the current fuel prices for wood pellets and #2 fuel oil,the pellet heating system will save $1,136 annually over the cost of diesel.The simple payback and B/C ratio of the capital cost for the pellet stove is 6.32 years and 5.34.The project would be deemed unfeasible when the price of pellets is $625/ton. 22 Recommendation The existing fuel oil boilers are near the end of their useful life and will soon need replacement.The City of Thorne Bay should consider pellet stoves because capital cost for pellet stoves and fuel oil systems are similar.Historically,the cost of pellets have been more stable when compared to petroleum-based fuels.The amount of saving should increase in future years because fuel oil costs have escalated and are unpredictable.The fuel oil cost and potential local fuel supply would be major factors in the decision- making process. It is recommend that the City of Thorne Bay install a pellet stove in the Fire Hall.The project is very feasible.The project would save approximately $28,849®over the 20 year life of the boiler. The City of Thorne Bay should seek funding opportunities for this project.One option to consider would be to use this pre-feasibility assessment to apply for final design and construction funds through the Alaska Energy Authority's Renewable Energy Grant Fund program. 8 Obtained from the Benefit/Cost model designed by the University of Alaska Anchorage Institute of Social and Economic Research,for use by the Alaska Energy Authority. 23 Appendix A:Cost Estimates for Alternative Options Option #1:City Hall/Clinic -Small pellet boiler using existing building Table 14:Capital Cost Estimate®:City Hall/Clinic -Small pellet boiler using existing building Description Unit Cost |Quantity Budget Demolition of Existing Boiler $1,500 1 $1,500 Labor/Installation $5,600 1 $5,600 Pellet Boiler $12,500 1 $12,500 Silo +Foundation +Assembly $12,000 1 $12,000 Thermal Storage $2,000 1 $2,000 Insulation $1,000 1 $1,000 Chimney Stack $2,000 1 52,000 Valves/Instruments/Piping $3,000 1 $3,000 Freight $6,500 1 $6,500 Electrical/Controls $2,500 1 $2,500 Total $48,600 Contingency 20%$9,720 Engineering 10%$4,860 Grand Total $63,180 *Cost estimates based on Haines study from Pacific Rim Mechanical,LLC received on September 13,2013. Table 15:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System Thorne Bay City Hall/Clinic (2,552 square foot building) Fuel Oil Cost (S per year @ $4.38 per gallon)?$10,166 Pellet Fuel Cost (S per year @ $360 per ton)'$6,840 Annual Fuel Cost Savings $3,326 Total Investment Costs $63,180 Simple Payback (yrs)?19.00 Benefit to Cost Ratio 1.39 4 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings Annual fuel usage for the buildings is 2,321 gallons. £19 tons of pellets used annually based on fuel consumption. Option #2:City Hall/Clinic-Small pellet boiler with new pellet/silo building Table 16:Capital Cost Estimate?:City Hall/Clinic-Small pellet boiler with new pellet/silo building Description Unit Cost Quantity Budget Demolition of Existing Boiler $1,500 1 $1,500 Labor/Installation $5,600 1 $5,600 Pellet Boiler $12,500 1 $12,500 Silo +Foundation +Assembly $16,500 1 $16,500 Pellet/Silo Building $20,000 1 $20,000 Thermal Storage $2,000 1 $2,000 Insulation $1,000 1 $1,000 24 Chimney Stack 52,000 1 $2,000 Valves/Instruments/Piping $3,000 1 $3,000 Freight $6,500 1 $6,500 Electrical/Controls $4,500 1 $4,500 Total $75,100 Contingency 20%$15,020 Engineering 15%$11,265 Grand Total $101,385 @ Cost estimates based on Haines study from Pacific Rim Mechanical,LLC received on September 13,2013. Table 17:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System Thorne Bay City Hall/Clinic (2,552 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)®$10,166 Pellet Fuel Cost ($per year @ $360 per ton)°$6,840 Annual Fuel Cost Savings $3,326 Total Investment Costs $101,385 Simple Payback (yrs)?30.48 Benefit to Cost Ratio 0.87 4 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings >Annual fuel usage for the buildings is 2,321 gallons. ©19 tons of pellets used annually based on fuel consumption. Option #3:Library -Pellet Stove Table 18:Capital Cost Estimate:Library -Pellet stove Description Unit Cost |Quantity Budget Demolition of Existing Toyo Stove/Fuel Tank (if applicable)|$300 1 $300 Labor/Installation $1,500 1 $1,500 Pellet Stove $3,000 1 $3,000 Freight $500 1 $500 Electrical/Controls $750 1 $750 Total $6,050 Contingency 15%$908 Grand Total $6,958 Table 19:Simple Payback and B/C Ratio Analysis for a Pellet Stove Thorne Bay Library (845 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)'$968 Pellet Fuel Cost ($per year @ $360 per ton)'$720 Annual Fuel Cost Savings $248 Total Investment Costs $6,958 Simple Payback (yrs)?28.06 Benefit to Cost Ratio 1.11 @ Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings >Annual fuel usage for the buildings is 221 gallons. 25 [©2 tons of pellets used annually based on fuel consumption. Option #4:City Hall/Clinic and Library -Small pellet boiler with new pellet/silo building Table 20:Capital Cost Estimate®:City Hall/Clinic and Library-Small pellet boiler with new pellet/silo building Description Unit Cost Quantity Budget Demolition of Existing Boiler $1,500 1 $1,500 Labor/Installation $5,600 1 $5,600 Pellet Boiler $12,500 1 $12,500 Silo +Foundation +Assembly $16,500 1 $16,500 Pellet/Silo Building $20,000 1 $20,000 Thermal Storage $2,000 1 $2,000 PEX piping (Materials +Installation)'|$7,000 1 $7,000 Insulation $1,000 1 $1,000 Chimney Stack $2,000 1 $2,000 Unit Heater +Heat Exchanger $1,000 1 $1,000 Valves/Instruments/Piping $3,000 1 $3,000 Freight $6,500 1 $6,500 Electrical/Controls $4,500 1 $4,500 Total $83,100 Contingency 20%$16,620 Engineering 15%$12,465 Grand Total $112,185 @ Cost estimates based on Haines study from Pacific Rim Mechanical,LLC received on September 13,2013. >PEX piping cost estimate based on Mentasta project done by Rex Goolsby on June 30,2014.$55/foot plus $1,200 for trenching. Table 21:Simple Payback and B/C Ratio Analysis for a Small Scale Pellet Boiler System Thorne Bay City Hall/Clinic and Library (3,397 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)®$11,134 Pellet Fuel Cost ($per year @ $360 per ton)'$7,200 Annual Fuel Cost Savings $3,934 Total Investment Costs $112,185 Simple Payback (yrs)*28.52 Benefit to Cost Ratio 0.90 @ Simple Payback equals Total Investment Costs divided by Annuat Fuel Cost Savings »Annual fuel usage for the buildings is 2,542 gallons. ©20 tons of pellets used annually based on fuel consumption. Alternative Option for the Wastewater Treatment Plant Table 22:Capital Cost Estimate:Wastewater Treatment Plant -Pellet stove Description Unit Cost Quantity Budget Labor/Installation $1,500 1 $1,500 Pellet Stove $5,000 1 55,000 Freight $500 1 $500 26 Electrical/Controls $750 1 $750 Total $7,750 Contingency 15%$1,163 Grand Total $8,913 Table 23:Simple Payback and B/C Ratio Analysis for a Pellet Stove Thorne Bay Wastewater Treatment Plant (2,000 square foot building) Fuel Oil Cost ($per year @ $4.38 per gallon)?$11,498 Pellet Fuel Cost (S per year @ $360 per ton)'$7,560 Annual Fuel Cost Savings $3,938 Total Investment Costs $8,913 Simple Payback (yrs)?2.26 Benefit to Cost Ratio 11.47 4 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings >Annual fuel usage for the buildings is 2,625 gallons. ©21 tons of pellets used annually based on fuel consumption. 27 Appendix B WOOD HEAT BACKGROUND INFORMATION EVALUATION CRITERIA,IMPLEMENTATION,WOOD HEATING SYSTEMS THIS SECTION HAS BEEN PROVIDED BY DAN PARRENT OF THE US FOREST SERVICE. This report agrees with the approach recommended by the Biomass Energy Resource Center (BERC), which suggests that,"[T]he most cost-effective approach to studying the feasibility for a biomass energy project is to approach the study in stages.”Further,BERC advises "not spending too much time,effort, or money on a full feasibility study before discovering whether the potential project makes basic economic sense”and suggests,"[U]ndertaking a pre-feasibility study ...a basic assessment,not yet at the engineering level,to determine the project's apparent cost-effectiveness”.[Biomass Energy Resource Center,Montpelier,Vermont.www.biomasscenter.org] Successful Implementation In general,four aspects of project implementation have been important to wood energy projects in the past:1)a project "champion”,2)clear identification of a sponsoring entity,3)dedication of and commitment by facility personnel,and 4)a reliable and consistent supply of fuel. Bulk fuel systems,though automated,generally require some attention on a daily basis,but pellet systems are generally less troublesome than other types of bulk fuel systems.For this report it is assumed that existing maintenance personnel would be trained to operate the system and would be capable of performing routine maintenance as necessary. The forest industry infrastructure in/around Thorne Bay is being developed and biomass fuels are available in small quantities.For this report,it is assumed that wood pellets would be shipped in from elsewhere in Alaska,the Lower 48 or Canada. Classes of Wood Heating Systems There are,essentially,two classes of wood heating systems:manual cordwood systems and automated "bulk fuel”systems.Cordwood systems are generally appropriate for applications where the maximum heating demand ranges from 100,000 to 1,000,000 Btu per hour,although smaller and larger applications are possible."Bulk fuel”systems are systems that burn wood chips,sawdust,bark/hog fuel, shavings,pellets,etc.They are generally applicable for situations where the heating demand exceeds 1 million Btu per hour,although local conditions,especially fuel availability,can exert strong influences on the feasibility of a bulk fuel system. Usually,an automated bulk fuel boiler is tied-in directly to the existing oil-fired system.They can be designed to replace 100%of the fue!oil used in the oil-fired boiler,although they are often designed to meet about 90 percent of peak demand load.In either case,the existing oil-fired system would usually remain in place and be available for peak demand or backup in the event of downtime in the wood system. WOOD-FUELED HEATING SYSTEMS Bulk Fuel Boiler Systems 238 Industrial bulk fuel systems are generally efficient and meet typical federal and state air quality standards.They have been around for a long time and there is little new technological ground to break when installing one.Efficient bulk fuel boilers typically convert 70 to 80+percent of the energy in the wood fuel to hot water or low pressure steam when the fuel moisture content is 40 percent (MC40)or less.Most boiler vendors provide systems that can burn various bulk fuels (wood chips,sawdust,wood pellets and hog fuel),but each system,generally,has to be designed around the predominant fuel form. A system designed to burn clean sawmill chips will not necessarily operate well on a diet of hogged fuel, for example. Large commercial pellet boilers are a fairly new addition to the alternatives available to institutional facility operators.While most existing bulk fuel designs can be adapted to burn pellets,there are not many systems that have been designed specificallyfor pellets,and there only a few North American pellet boiler manufacturers or distributors.European firms have been building high efficiency pellet boilers for years and that technology is just beginning to find its way into the U.S.market. Pellets are a uniform fuel manufactured to consistent specifications and are nearly universally interchangeable.'Combination'or multi-fuel systems capable of burning pellets and chips are possible, but with some fairly strict limitations. Table 24.Bulk Fuel Boiler System Vendors (partial list) Decton Iron Works,Inc JMR Industrial Contractors Butler,WI (800)246-1478 www.decton.com Columbus,MS (662)240-1247 www.jmric.com Messersmith Manufacturing,Inc. Bark River,MI (906)466-9010 www.burnchips.com Advanced Climate Technologies,LLC Schenectady,NY (518)377-2349 www.actbioenergy.com New Horizon Corp. Sutton,WV (877)202-5070 www.newhorizoncorp.com Note:Listing of any manufacturer,distributor or service provider does not constitute an endorsement. Bulk fuel systems are available in a range of sizes between 300,000 and 60,000,000 Btu/hr.However, the majority of the installations range from about 1 MMBtu/hr to 20 MMBtu/hr.Bulk fuel systems with their automated storage and fuel handling conveyances are generally not cost-effective for small applications.Large energy consumers (i.e.,consuming at least 40,000 gallons of fuel oil per year)have the best potential for installing chip-fired boilers.Pellet-fired systems,with lower initial costs than chip- fired systems,are fairly scalable.They can be used in applications ranging from residential to industrial. However,given the higher cost of pellets versus other bulk fuels,economic returns are more sensitive to the price of the fossil fuel alternative. For pellets,there are several delivery options.Bulk pellets can be delivered in a self-unloading tractor- trailer van,a shipping container attached to a dump body,or a specialized delivery truck equipped with an auger-elevator or pneumatic delivery system.On-site storage and the delivery system must be compatible,and storage capacity should be 1%to 2 times greater than the delivery truck's capacity.For 29 destinations in Alaska,additional consideration should also be given to the barge or train delivery schedule(s).(NOTE:pellets must be protected from rain,snow,sea spray,etc.at all times.Pellets that get wet deteriorate quickly.) There are several bulk fuel boilers installed in industrial applications in Alaska,but in recent years several have been installed in institutional situations.The most recent were installed at the Tok School in Tok,Delta School in Delta Junction,and Sealaska Corp.office building in downtown Juneau;both in 2010.A 3.6 MMBtu/hr pellet-fired system is under construction at the U.S.Coast Guard base in Sitka. This system will replace more than 100,000 gallons of fuel oil per year.Two more have recently been installed in Ketchikan;one at the Forest Service Discovery Center and the other at the Federal Building. A chip-fired system has been heating the schools and pool in Craig,AK since 2008.It is similar in size to boilers installed in several Montana schools. SELECTING THE APPROPRIATE SYSTEM Selecting the appropriate heating system is,primarily,a function of heating demand.It is generally not feasible to install automated bulk fuel systems in/at small facilities,and it is likely to be impractical to install cordwood boilers at very large facilities.Other than demand,system choice can be limited by fuel availability,fuel form,labor,financial resources,and limitations of the site. The selection of a wood-fueled heating system has an impact on fuel economy.Potential savings in fuel costs must be weighed against initial investment costs and ongoing operating,maintenance and repair (OM&R)costs.Wood system costs include the initial capital costs of purchasing and installing the equipment,non-capital costs (engineering,permitting,etc.),the cost of the fuel storage building and boiler building (if required),the financial burden associated with loan interest,the fuel cost,and the other costs associated with operating and maintaining the heating system,especially labor. B/C Ratio -One of the goals of this study is to prepare the recipients to submit an application for a State of Alaska Renewable Energy Fund grant.To that end,this analysis calculates the Benefit/Cost Ratio required for that application. The B/C Ratio calculation utilizes fuel prices escalation assumptions established by the State of Alaska which are based on U.S.Energy Information Agency (EIA)price projections.The EIA price projections have historically underestimated oil price inflation by wide margin.For example,in 2001 oil was $28.21 per barrel.At that time EIA was projecting that the price of crude in 2011 would be $27.28 per bbl.The actual price turned out to be $102.70.This was not atypical of EIA's underestimates.Therefore,for the purposes of the B/C Ratio the mandated EIA inflation estimates are used,but for the rest of the analysis an oil inflation rate of 6.75%is used,which more accurately represents oil inflation over the past 20 years.However,even if the escalation rate of oil is set to zero percent,some of the microchip options still have a lower lifecycle cost than the status quo. Other Considerations -The following issues bear further analysis or investigation during later phases of this project: Air Emissions -The Alaska Energy Authority requires that any boilers which receive RE grant funding most demonstrate independent third party emissions testing for the type of fuel which will be burned in it.Before any boiler selection is made,it's strongly recommended that AEA be consulted with to confirm that the boiler manufacturer has satisfied the testing requirement. 30 Testing information must be requested from the boiler manufacturer as AEA does not track manufacturer-specific information. Pellet boilers are clean-burning devices but they still do produce some particulate emissions which can be unhealthy at higher concentrations.Reducing exposure to these emissions is imperative,and the following strategies can be utilized: a.Implement all of the EEMs identified in the Energy Audit.This will reduce the heat lost from the school,and thus reduce the amount of fuel that needs to be burned to replace it. b.Select and install a low-emitting boiler which has been third-party tested in accordance with AEA's standards. c.Perform an emissions analysis as part of the design.The design firm can contract with an emissions specialist which can evaluate the site and the meteorological data and make recommendations regarding things like boiler exhaust stack height. d.Operate the boiler in accordance with the manufacturer's instructions,performing all scheduled maintenance and using quality fuel. Fuel Security -Currently Viking Lumber is the obvious source of chip fuel for Thorne Bay.But given the decline of the forest products industry in Southeast Alaska,it's conceivable that Viking could shut down at some future time.Even in that eventuality,a pellet/chip boiler viable.Assuming that Tongass Forest Enterprises is still in operation,pellets can be sourced from Ketchikan.Other mills on POW are also capable of producing an acceptable pellet fuel with some investment in equipment.In the worst case scenario,pellets would enjoy a significant price advantage over heating with oil. Project Financing -A project like this typically would be funded one of three ways: a.Government grants b.Bank Loans c.AHFC Loans In addition to the above financing options,there may be others such ESCO -funded projects which are third -party financed but paid for from the savings of the project. 31 Ketchikan Airport Wood Heat Pre-Feasibility Assessment Prepared by:Devany Plentovich Site Visit:June 11,2012 Report Date:September 10,2012 Background Dan Bockhurst and Mike Carney with the Ketchikan Borough invited Alaska Energy Authority to Ketchikan to evaluate the potential of heating the Ketchikan Airport Complex with wood heat.Mike Carney escorted Devany Plentovich on a tour of the facility on Monday,June 11,2012. Assessment Objectives e Inspect the Ketchikan Airport Facility as a potential candidate for heating with wood. e Evaluate the suitability of the facility for siting a wood-fired boiler. ®€stimate the capital costs of a suitable wood-fired system. e Estimate the annual operating and maintenance costs of a wood-fired system e Estimate the potential economic benefits. Current Heating System The current heating system in the main airport complex (32,000 sq.ft.)consists of 2 Cleaver Brooks oil fired boilers installed in 1971.They supply heating and domestic hot water to the facility.According to Mr.Carney,the HVAC system,including the oil-fired boilers,is at the end of its economic life and is scheduled for replacement.Two quotes were received to replace the oil boilers with similar units along with an electric boiler back-up,and the quotes ranged from $700,000 to $800,000. The existing Cleaver Brooks boilers are mode!CB-100-80 with serial numbers L-55120 and L-55119.The manufacturer has been contacted to identify the design specifications of the existing system,but no information has been received yet.The estimates for this assessment will be based on boilers sized for the annual fuel usage.A more extensive engineering analysis should be completed in the design phase to understand the exact loading needs of the complex. Photo #1 shows the existing boiler room and Cleaver Brooks boilers. Current Fuel Usage In the last 2 years,the fuel oil boiler system has used an average of 22,700 gallons of #2 diesel with the following monthly breakdown (based on purchase receipts): at amenity Tn, Photo 1 -existing boiler room with 1971 Cleaver Brooks Boilers. Ketchikan Terminal Fuel Usage (gallons) 2010 -2011 |2011 -2012 July 978.1 914.2 August 1,006.4 1,190.8 September 700.0 905.3 October 1,986.9 2,907.4 November 1,647.1 2,824.0 December 2,225.0 1,593.7 January 3,323.4 3,274.4 February 2,132.2 3,244.3 March 1,857.6 1,261.0 April 2,328.3 2,348.7 May 2,654.3 1,180.4 June 620.8 2,279.0 Total 21,460.1 23,923.2 The Borough is currently paying $2.94 per gallon for #2 diesel. Proposed Heating System Given the high cost of diesel and expected continued escalation,the Ketchikan Borough is interested in investigating other heating options for the airport complex.The Borough has considered electric heating and various other forms of biomass.The local utility,SEAPA,is discouraging the conversion of primary heating needs to electric resistance heating due to the rapid reduction in excess hydro power. Both the Ketchikan Federal Building and the Discovery Building have recently been converted to wood pellet heating.Initial responses from the operation and maintenance personnel on these systems have been positive.The Ketchikan Building has installed an ACT Bioenergy Boiler,and the Discovery Center has installed a Hurst Model.The Discovery Center has encountered a few issues with the infeed system plugging and is working with the manufacturer and pellet supplier to resolve the plugging. As a result of the positive impressions of the operating pellet heating systems and the ease of operations and maintenance,the Ketchikan Borough has asked Alaska Energy Authority to investigate the opportunity of installing similar systems in the airport complex. There appears to be sufficient real estate and structure in the existing boiler room to install a pellet boiler system.The dimensions of the ACT Bioenergy boiler were used for the preliminary analysis. There appears to be ample room for piping tie-ins,air feed,heat exchangers,and pellet conveyors.It is proposed that the pellet silo be located through the southeast wall in the existing parking area.See Photo #2. ;|Laff)a!2 LL Hietooifhe Leeleezmien1!aQ5mUERIPhoto #2 -proposed location for the pellet silo. The capital estimate for the Ketchikan Airport Pellet Boiler was based on the Brown Elementary School, North Pole,Alaska estimate developed by Paul Weisner,CE2 Engineers.Because the annual amounts of fuel displaced in each project are very similar,the assumption was made that the boiler sizes would be similar.This conservative capital estimate is based on the assumption that the pellet boiler will fit into the existing airport boiler room with no structural changes.The pellet boiler and silo are budgetary quotes from ACT Bioenergy for a 450 kW system.The sizing of the boiler is roughly based on annual fuel displacement and must be re-evaluated with actual building loading requirements.Line items that might not be required for construction in Ketchikan are equipment rentals,room and board for construction crews,and some auxiliary equipment that might not need replacement.It is recommended that this preliminary budget be reviewed and updated by the project manager. Ketchikan Airport Capital Estimate Unit CostDescription Quantity Budget Construction Management $20,000 1 $20,000 Labor $75,000 1|$75,000 Pellet Silo and auger $18,000 1;$18,000 Pellet Foundation $5,000 1|$5,000 Pellet Boiler -installed in existing building $119,000 1|$119,000 Demolition of Existing Boilers $5,000 1|$5,000 Back-up electric heater (360 KW)$60,000 1|$60,000 Biomass Circulating Pump Assembly $4,000 1|$4,000 Mixing Valve $4,000 1|$4,000 Building Circulating Pump Assembly $4,000 1]$4,000 Hydronic Thermal Expansion Tank $5,000 1|$5,000 Piping and insulation $6,000 1|$6,000 Valves and instruments $3,500 1/1 $3,500 Pipe hangers $1,000 1|$1,000 Heat Exchanger $7,600 1|$7,600 Misc (hardware,room/board/fuel/rent)$10,000 1}$10,000 Freight $30,000 1 |$30,000 Equipment rental $20,000 1}$20,000 Electrical $15,000 1}$15,000 Total $412,100 Contingency 15%$61,815 Engineering 10%$41,210 Grand Total $515,125 Pellet Fuel Supply Tongass Forest Enterprises in Ketchikan is the supplier to the Federal Building and the Discovery Center. They have recently started manufacturing pellets with sawmill waste.There are pellet plants in Fairbanks and Delta Junction,and numerous pellet plants in Washington,Oregon,California,Idaho, Montana,Alberta and British Columbia.Sealaska Corporation is importing pellets from the lower 48 to supply the Sealaska Building in Juneau and is investigating the opportunities to supply other pellet users in Southeast. Pinnacle Pellets in Prince Rupert,British Columbia are breaking ground this summer for a large scale pellet export port facility and would be able to easily supply many times the current Alaska pellet demand if current supplies do not remain viable.Pinnacle alone is currently exporting 100,000 tons to Europe out of the Vancouver,BC port. Economic Analysis and Recommendations Assumptions used in the Economic Analysis: e Annual Fuel Usage 22,700 gallons ®Current Fuel Oil price $2.94/gallon e Existing Boiler Efficiency 72% e Energy Content of #2 Diesel 138,800 Btu/gallon e Percentage of fuel displacement with new system 100% e =Efficiency of Pellet Boiler 80% e Energy Content of Pellets 8000 Btu/Ib e Pellet Fuel Price $300/ton e Annual additional maintenance costs $1000 ®Maintenance labor will utilize existing employees same as current Simple Payback Period Analysis for a Medium Size Pellet Heating System Ketchikan Airport Facility (22,700 gpy,177 tpy) Fuel oil cost $66,700(S per year @ $2.94 per gallon Pellet fuel $53,100(S$per year @ $300 per ton), Annual Fuel Cost Savings ($)$13,600 Total Investment Costs ($)$250,000 $400,000 $515,000 Simple Payback (yrs)?19.9 31.8 41.0 2 Simple Payback equals Total Investment Costs divided by Annual Fuel Cost Savings Based upon the current fuel prices for wood pellets and #2 diesel,the pellet system will save approximately $13,600 annually over the cost of diesel.Historically,the cost of pellets has been more stable when compared to petroleum-based fuels,so this amount of savings should increase in future years.The simple payback for the capital costs of the pellet system is not stellar based on current fuel oil prices,and the project would not support implementation as a stand-alone replacement.However, the fuel oil boilers are at the end of their useful life and must be replaced.Capital costs for pellets and fuel oil systems are similar,so the fuel savings and potential local fuel supply should be major factors in the decision-making process.The Borough of Ketchikan should consider applying for Feasibility/Conceptual Design,Final Design,and Construction funds through the Renewable Energy Fund grant program -Round 6.Also,evaluating opportunities to reduce the capital costs could greatly improve the economic analysis of the system. The following chart illustrates the sensitive of fuel costs for 3 different scenarios and quantifies the potential savings of the system in high,medium,and low fuel cost scenarios.#2 diesel fuel costs of $4.00 per gallon coupled with the local manufacture of pellets at $250 per ton could result in annual fuel savings of $41,000. Summary of Potential Savings Table 5-3 summarizes the findings thus far:annual fuel oil usage,range of annual fuel oil costs,estimated annual pellet fuel requirement,range of estimated annual pellet fuel costs,and potential gross annual savings for the airport facility.[Note:potential gross annual fuel cost savings do not consider capital costs and non-fuel operation,maintenance and repair (OM&R)costs.] Table 5-3.Estimate of Total Wood Consumption,Comparative Costs and Potential Savings Approximate Potential Gross Annual Fuel Oil Used Annual Fuel Oil Cost Annual Wood Pellet Cost Wood Pellet Fuel Cost Savings gal/year (@$___/gal)(@$___/ton) Requirement?(S) FACILITY 3.00/gal 3.50/gal 4.00/gal Wood pellets,MC7,250/ton |300/ton |350/ton low Medium High Ketchikan Airport 22,700 66,500 76,000 85,500 177 tons 44,308 53,167 62,031 4,469 22,833 41,192 Assumes 72%boiler efficiency,80%pellet boiler efficiency,#2 diesel at 138,000 Btu/gal,and pellets at 8000 Btu/Ib. BACKGROUND INFORMATION -EVALUATION CRITERIA,IMPLEMENTATION,WOOD HEATING SYSTEMS THIS SECTION HAS BEEN PROVIDED BY DAN PARRENT OF THE US FOREST SERVICE. This report agrees with the approach recommended by the Biomass Energy Resource Center (BERC), which suggests that,"[T]he most cost-effective approach to studying the feasibility for a biomass energy project is to approach the study in stages.”Further,BERC advises "not spending too much time,effort, or money on a full feasibility study before discovering whether the potential project makes basic economic sense”and suggests,"[U]ndertaking a pre-feasibility study ...a basic assessment,not yet at the engineering level,to determine the project's apparent cost-effectiveness”.[Biomass Energy Resource Center,Montpelier,Vermont.www.biomasscenter.org] Successful Implementation In general,four aspects of project implementation have been important to wood energy projects in the past:1)a project "champion”,2)clear identification of a sponsoring entity,3)dedication of and commitment by facility personnel,and 4)a reliable and consistent supply of fuel. Bulk fuel systems,though automated,generally require some attention on a daily basis,but pellet systems are generally less troublesome than other types of bulk fuel systems.For this report it is assumed that existing maintenance personnel would be trained to operate the system and would be capable of performing routine maintenance as necessary. The forest industry infrastructure in/around Seward is not well-developed and biomass fuels are not readily available in appreciable quantities.For this report,it is assumed that wood pellets would be shipped in from elsewhere in Alaska,the Lower 48 or Canada. Classes of Wood Heating Systems There are,essentially,two classes of wood heating systems:manual cordwood systems and automated "bulk fuel”systems.Cordwood systems are generally appropriate for applications where the maximum heating demand ranges from 100,000 to 1,000,000 Btu per hour,although smaller and larger applications are possible."Bulk fuel”systems are systems that burn wood chips,sawdust,bark/hog fuel, shavings,pellets,etc.They are generally applicable for situations where the heating demand exceeds 1 million Btu per hour,although local conditions,especially fuel availability,can exert strong influences on the feasibility of a bulk fuel system. Usually,an automated bulk fuel boiler is tied-in directly to the existing oil-fired system.They can be designed to replace 100%of the fuel oil used in the oil-fired boiler,although they are often designed to meet about 90 percent of peak demand load.In either case,the existing oil-fired system would usually remain in place and be available for peak demand or backup in the event of downtime in the wood system. THE NATURE OF WOOD FUELS Wood Fuel Forms and Current Utilization Currently,wood fuels in Ketchikan are generally available in cordwood,chips and pellets.Tongass Forest Enterprises has started manufacturing pellets with sawmill waste.Chips are also available from the same source.There are pellet plants in Fairbanks and Delta Junction,and numerous pellet plants in Washington,Oregon,California,Idaho,Montana,Alberta and British Columbia.Sealaska Corporation is importing pellets from the lower 48. Pinnacle Pellets in Prince Rupert,British Columbia are breaking ground this summer for a large scale pellet export port facility and would be able to easily supply many times the current Alaska pellet demand if current supplies do not remain viable.Pinnacle alone is currently exporting 100,000 tons to Europe out of the Vancouver,BC port.Pinnacle has expressed support for increasing the pellet demand in Alaska and has asked a few questions about opportunities for a Pinnacle mill in Alaska. Heating Value of Wood Wood is a unique fuel whose heating value is variable,depending on moisture content,species of wood and other factors.There are also several recognized heating values:high heating value (HHV),gross heating value (GHV),and delivered heating value (DHV)that may be assigned to wood at various stages in the calculations. For this report,generic wood pellets with a HHV of 8,602 Btu per bone-dry pound (MCO)are used as the benchmark.The GHV at 7%moisture content (MC7)is 8,000 Btu/Ib or 16 million Btu per ton.DHV, which is a function of boiler efficiency (assumed to be 80%),is 12.8 million Btu per ton.The delivered heating value of 1 ton of generic wood pellets (MC7)equals the delivered heating value of 119.4 gallons of #1 fuel oil when both the wood and oil are burned at 80%conversion efficiency. WOOD-FUELED HEATING SYSTEMS Low Efficiency Cordwood Boilers This section omitted. High Efficiency Low Emission Cordwood Boilers This section omitted. Bulk Fuel Boiler Systems Industrial bulk fuel systems are generally efficient and meet typical federal and state air quality standards.They have been around for a long time and there is little new technological ground to break when installing one.Efficient bulk fuel boilers typically convert 70 to 80+percent of the energy in the wood fuel to hot water or low pressure steam when the fuel moisture content is 40 percent (MC40)or less.Most boiler vendors provide systems that can burn various bulk fuels (wood chips,sawdust,wood pellets and hog fuel),but each system,generally,has to be designed around the predominant fuel form.A system designed to burn clean sawmill chips will not necessarily operate well on a diet of hogged fuel,for example. Large commercial pellet boilers are a fairly new addition to the alternatives available to institutional facility operators.While most existing bulk fuel designs can be adapted to burn pellets,there are not many systems that have been designed specificallyfor pellets,and there only a few North American pellet boiler manufacturers or distributors.European firms have been building high efficiency pellet boilers for years and that technology is just beginning to find its way into the U.S.market. Pellets are a uniform fuel manufactured to consistent specifications and are nearly universally interchangeable.'Combination'or multi-fuel systems capable of burning pellets and chips are possible, but with some fairly strict limitations. Table 4-1 presents a partial list of bulk fuel boiler system vendors. Table 4-1.Bulk Fuel Boiler System Vendors Decton Iron Works,Inc New Horizon Corp. Butler,WI Sutton,WV (800)246-1478 (877)202-5070 www.decton.com www.newhorizoncorp.com Messersmith Manufacturing,Inc.JMR Industrial Contractors Bark River,MI Columbus,MS (906)466-9010 (662)240-1247 www.burnchips.com www.jmric.com Chiptec Wood Energy Systems Advanced Climate Technologies,LLC South Burlington,VT Schenectady,NY (800)244-4146 (518)377-2349 www.chiptec.com www.actbioenergy.com Note:Listing of any manufacturer,distributor or service provider does not constitute an endorsement. Bulk fuel systems are available in a range of sizes between 300,000 and 60,000,000 Btu/hr.However,the majority of the installations range from about 1 MMBtu/hr to 20 MMBtu/hr.Bulk fuel systems with their automated storage and fuel handling conveyances are generally not cost-effective for small applications. Large energy consumers (i.e.,consuming at least 40,000 gallons of fuel oil per year)have the best potential for installing chip-fired boilers.Pellet-fired systems,with lower initial costs than chip-fired systems,are fairly scalable.They can be used in applications ranging from residential to industrial. However,given the higher cost of pellets versus other bulk fuels,economic returns are more sensitive to the price of the fossil fuel alternative. For pellets,there are several delivery options.Bulk pellets can be delivered in a self-unloading tractor- trailer van,a shipping container attached to a dump body,or a specialized delivery truck equipped with an auger-elevator or pneumatic delivery system.On-site storage and the delivery system must be compatible,and storage capacity should be 1%to 2 times greater than the delivery truck's capacity.For destinations in Alaska,additional consideration should also be given to the barge or train delivery schedule(s).(NOTE:pellets must be protected from rain,snow,sea spray,etc.at all times.Pellets that get wet deteriorate quickly.) There are several bulk fuel boilers installed in industrial applications in Alaska,but in recent years several have been installed in institutional situations.The most recent were installed at the Tok School in Tok,Delta School in Delta Junction,and Sealaska Corp.office building in downtown Juneau;both in 2010.A 3.6 MMBtu/hr pellet-fired system is under construction at the U.S.Coast Guard base in Sitka. This system will replace more than 100,000 gallons of fuel oil per year.Two more have recently been installed in Ketchikan;one at the Forest Service Discovery Center and the other at the Federal Building. A chip-fired system has been heating the schools and pool in Craig,AK since 2008.It is similar in size to boilers installed in several Montana schools. SELECTING THE APPROPRIATE SYSTEM Selecting the appropriate heating system is,primarily,a function of heating demand.It is generally not feasible to install automated bulk fuel systems in/at small facilities,and it is likely to be impractical to install cordwood boilers at very large facilities.Other than demand,system choice can be limited by fuel availability,fuel form,labor,financial resources,and limitations ofthe site. The selection of a wood-fueled heating system has an impact on fuel economy.Potential savings in fuel costs must be weighed against initial investment costs and ongoing operating,maintenance and repair (OM&R)costs.Wood system costs include the initial capital costs of purchasing and installing the equipment,non-capital costs (engineering,permitting,etc.),the cost of the fuel storage building and boiler building (if required),the financial burden associated with loan interest,the fuel cost,and the other costs associated with operating and maintaining the heating system,especially labor. Comparative Costs of Fuels Table 5-1 compares the cost of #1 fuel oil to generic wood pellets (MC7).In order to make reasonable comparisons,costs are provided on a "per million Btu”(MMBtu)basis. Table 5-1.Comparative Cost of Fuel Oil vs.Wood Pellets HHV GHV Conversion DHV Price per unit Cost per MMBtu FUEL .(Btu)|(Btu)|Fficiency |(Btu)(s)(DHY,($)) Fuel oil,#1,3.50/gal 32.65 134,000 134,000 80%107,200 (per 1 gallon)4.00 37.31 4.50 41.98 250/ton 19.53 Wood pellets 17.2 16.0 12.8 80%300 23.44 (per 1 ton,MC7)million million million 350 27.34 Cost per MMBtu Sensitivity -Pellets Figure 5-1 illustrates the relationship between the price of wood pellets (MC7)and the cost of delivered heat,(the slanted line).For each $10 per ton increase in the price of pellets,the cost per million Btu increases by about $0.78.The chart assumes that the pellet boiler converts 80%of the GHV energy in the wood to useful heat and that fuel oil is converted to heat at 80%efficiency.The dashed lines represent #1 fuel oil at $3.50,$4.00 and $4.50 per gallon ($32.65,$37.31 and $41.98 per million Btu respectively). At high efficiency,heat from pellets (MC7)at $477.60 per ton is equal to the cost of #1 fuel oil at $4.00 per gallon,(i.e.,$37.31 per MMBtu),before considering the investment and OM&R costs.At 80% efficiency and $300/ton,an efficient pellet boiler will deliver heat at about 63%of the cost of #1 fuel oil at $4.00 per gallon ($23.44 versus $37.31 per MMBtu),before considering the cost of the equipment and OM&R.Figure 5-1 shows that,at a given efficiency,savings increase significantly with decreases in the price of pellets and/or with increases in the price of fuel oil. Cost($)perMMBtuCost ($}per MMBTU as a Function of Pellet Price oo_- 200 225 250 275 300 325 350 375 400 425 450 475 500 Fuel Oil at $4.50 pergallon =e eeeeeree-- Fuel Oil at $4.00 per gallon =sreteeeen snes sevceccesese soesessesccses Fuel Oil at $3.50 per gallon ed ee oe Figure 5-1.Effect of Pellet Price on Cost of Delivered Heat