Residential/Commercial Project Examples and Economics

Transcription

1 Residential/Commercial Project Examples and Economics Tony T.J. Morice Marth Companies March 11, 2015

2 Refueling Wisconsin with Wood Energy Series Brought to you in partnership with these organizations

3 Purpose: To give a tangible, basic thought process with a variety of small systems where wood energy has been plausible for many applications Rural Farm Home Smaller Greenhouse Ski Chalet for Marathon County USFS Ranger Station MN Camp Forest Springs youth camp Commercial Greenhouse Cherry School MN Wolf Ridge Environmental Center.

4 Rural Wisconsin older home and/or fossil fuel appliance update 1920 s era farm home with no wall insulation and only 4 in the ceiling heated by an existing 120,000 BTU LP furnace and hot water heater in need of an update soon. Kris Zimmerman the owner who is a Maintenance Supervisor knew he would do everything himself which saves additional money. He ordered a 100,000 btu Wood master Ultra with the bin and freight for $6,990.

5 Insulated PEX pipe with 5 wraps along with laying electrical lines in with a spare in case of future failure of some sort. Cut the entry into the connection for the supply and return.

6 Work on inside for the water to air heat exchanger that could use existing ductwork.

7 Cold Water In / Hot Water Out Relief Valve WA TER HEA TER FLOW Boiler Fill Valve Sidearm HEAT EXCH. Boiler Drain 3 Valves to make a bypass option

8 700 Pellet Use: Winter Estimated Actual Kris is the exception to the rule regarding detail; he records everything! For the season he used the equivalent of bags (9.22 tons) for his whole house and hot water heater. To heat the old house and the hot water it takes about 2.71 bags/day. So a range of $ /month heating in the winter to give some perspective. A newer home would be significantly less. I would estimate he saved $ this heating season so payback for him would be 4 6 years.

9 Smaller Business options Cordwood works great in a variety of applications. You just need to walk through a rapid assessment process to determine likely feasibility. GINSENG GROWER: Joe Heil grows 90 acres of ginseng on his Marathon County farm near Edgar. Wisconsin grows 95% of the ginseng crop in the U.S ginseng both challenging rewarding cropedgar grower Heat needs Useable heat via type & efficiency Project cost & compare Determine simple payback: Investment/annual savings $$

10 The have access to a variety of sources of inexpensive wood from their lands they work and farm. Thus their costs are significantly less than those that have to acquire wood on the open market yearly.

11 Some of the less efficient systems are most cost effective when wood is available below market costs. The best efficiency units with new EPA regulations will make things more feasible if users have to buy wood at market.

12 Greenhouse-options Freestanding gothic greenhouse 30 x 96 Double poly glazing Used Feb to June veg. & bedding plants Currently has two 200,000 Btu power vented unit heaters (78% Eff.) Propane fuel $2.00 /gallon Set point temperature: 70 F day, 60 F night Location: Madison, WI

13 Option A Residential/shop pellet stove Rated output 70,000 Btu/hr Supplement heating operated mainly at night No Thermostat Installed cost $4350 Stove efficiency = 80% Wood pellet cost $4.20 / 40 lb bag ($210 / ton)

14 Option B Thermostatically controlled pellet furnace Heating capacity range: 10,000 to 160,000 Btu/hr Furnace efficiency = 80% Air ducted directly into the greenhouse above plants Located at one end of greenhouse Installation cost = $6030 Includes 14 bushel fuel bin Bagged pellets assume Avoid cost of bulk storage $4.20 / 40 lb bag

15 Option C EPA Phase 2 outdoor wood boiler Average capacity (8 hour period) 160,000 Btu/hr Two water to air heat exchangers (HE) in center of greenhouse to distribute heat Thermostatically controlled Pump to HE turns on when greenhouse requires heat Installed cost $13,050 (boiler, all piping, heat exchanger) $17,500 Average boiler efficiency = 75% 85% Full Cord of Wood $150/cord (assuming self harvested)

16 Option D Same as Option C except non EPA qualifying boiler Installed cost $11,634 Estimated Efficiency = 40%

17 Month Average Night Heating Requirements by Month Heating requirements Btu/day Approx. average hourly heating - Btu/hr February 1,643, ,985 March 1,119,650 93,304 April 732,940 61,078 May 343,839 28,653 Day time heating, on average, are fully met by solar radiation except for February Average February day time heating 12,800 Btu/hr

18 Variety of Biomass heat provision options Option A 100% of heating down to ~40F Estimated 50% reduction in propane use Options B, C & D 100% of heating down to ~ 10F Average monthly minimum Feb temperature 14.3 F Reality estimated 20% will be supplied by propane Appliance Projected Cost/Contr Efficiency/ $/MBTU Pellet Stove $4000+/supplement 75-80%/$16 Pellet Furnace $6500+/100% 75-80%/$16 EPA Wood $13500+/100% 75-85%/$10 Non-EPA Wood $11,750+/100% 50-70%/$10

19 Summary of Biomass Heating Options Baseline: 1592 gallon $2.00/gal = $3184 / year Heating System System Cost A) Residential pellet stove $ 4350 Biomass Quantity # bags Biomass Energy Cost* Propane (gallons) Propane Cost Total Savings Simple Payback (years) $ $ 1278 $ B) Pellet furnace C) Outdoor wood boiler-epa Certified D) Outdoor wood boiler $ # bags $ $ 636 $ $ cords $ $ 636 $ $ cords $ $ 636 $

20 Nine Mile Forest-Marathon County This 4500 square foot facility houses the ski/snowshoe chalet for the county on over 4900 acres. There are two 20 year old LP forced air furnaces providing 242,000 BTU which consume on average 2000 gallons a year.

21 Plan was to handle the majority of heat load. With 4500 square foot at about 40 btu/ft gives a demand of about 180,000 btu on average winter days. We knew they wanted to do a little bit of the shop area and take care a some of the colder days. Any peak needs over the 200,000 btu maximum of the boiler would be by LP units.

22 Cost Comparison Low Estimate 2181 gal. $1.95 =$4253 / season ton prem. $199.00/t + $ delivery = $2468 / season Savings$1785 / season High Estimate 2181 gal. $2.20 = $4798 / season ton prem. $215.00/t + $ delivery = $2653 / season Savings$2145 / season Payback on County Investment Project Cost Contract installation, force account site prep $36,000 State D.O.E. Grant 20,000 Cost To County $16,000 Low Estimate: $16,000 $1785 = 8.96 Years High Estimate: $16,000 $2145 = 7.46 Years PLUS: Stewardship of Resources, Support of Forest Industry the County forests supply, expenditures are kept local using local resources and manufacturers in Wisconsin.

23 The Wisconsin State Energy Office was able to provide a grant for $20,000 which allowed the project to go forward, providing a great example of woody biomass fuel for the area. The County may not have allowed the project to move forward without this assistance due to the longer payback; but with the assistance it s likely a 5 8 year payback plus peripheral benefits.

24 The boiler was installed in the equipment garage and the supply/return was trenched to the main building. The county technicians were the installers and in the process became proponents and advocates for the system, actually educating state officials.

25 USFS Chippewa National Forest Ranger Station

26 This is a scenario that is more than just economics. Jay Smrekar at the facility, had one year of data since it was a new facility on LP is the best data and the site wasn t 100% complete at $12600 for 5400 gallons. At that estimated rate and projected pellet delivery rate their savings would be 40% on fuel. Payback on this system the way that they were required to set up with built in extinguishing, ASME boiler certification and redundant system integration will extend the payback to 9 15 years depending on the future of LP.

27 Completed May Conceptual discussion started in 2009 with KJWW Engineering so many of these institutional projects can take longer than they should.

28 Forest Springs wood boiler example Christian camp facility while rural had natural gas installed by Xcel in 1994 timeframe. Like many applications theirs is unique due to the supply of wood from their 500 acres of managed forest.

29 What was the numbers situation & layout? New expansion 34,000 square feet Previous experience with Garn at Oak Forest (another facility of theirs) Since they need to clean up trails and down trees, they view the fiber as free since they need to aggregate and cut it anyway.

30 What is the operation of unit? Building is both boiler/fuel storage and 45,000 gallon water hold from sprinkling system. Boiler itself was under $20,000 plus installation components and labor. Each of the cribs of dried wood fuels the boiler for about 1 week, checking a.m. and p.m.

31 Idea of payback: This gives a general feel for what the payback would be assuming there is no loan being taken. This includes pumps, line set, valves and labor directly related to GARN. Also includes irrigantion building, controllers, tubing, gas boiler peaker, indirect water heaters, fittings/gauges and HVAC components regardless of heat source so it s pretty conservative. Wood cost is at $50/cord to cover some of aggregation costs but they view it at zero cost. Even at $6/decatherms natural gas this is pretty attractive. Heating What's your current fuel? Natural Gas What will be your new fuel? Wood What was last year's heating bill? $ 175, New annual heating bill $ 7, Expenses/Incentives GARN Equipment (Call your rep for pricing) $ 29, Installation & Labor $ 25, Other Equipment $ 79, Grants/Incentives/Rebates $ Payment Total (Expenses - Rebates) $ 133, Personal Investment $ 133, Loan Amount $ 15, APR 5.325% Payments Per Year 12 Loan Duration (months) 60 Payment Amount Due Each Period $ Payback Existing Annual Heating Cost $ 175, New Annual Cost (includes loan if applicable) $ 7, Investment Payback (years) 0.8

32 Commercial Greenhouse 33,000 square feet Double Poly film glazing roof and walls Year round production Heating system In floor heating with unit heaters for peaking on cold nights Fuel: $2.00 / gallon Baseline energy use 85,581 gallons LP gas $ 171,162 annual heating cost Cord wood boiler was not considered Increased labor, limited area for fuel storage

33 Option A Meet 100% of heating requirements Two pellet boilers 3.5 MBtu/hr & 1.5 MBtu/hr Minimum of 4.2 MBtu to meet 20ºF design temperature Average efficiency = 78% Use smaller boiler during spring and fall months Large boilers hard to throttle for low demand Estimated 5% of season would use propane heaters Bins for bulk delivery of pellets Installed Cost: $291,000

34 Option B Boilers sized to meet average heating requirement (~80%) Two pellet boilers 2.5 MBtu/hr & 1.0 MBtu/hr Use smaller boiler during spring and fall months Large boilers hard to throttle for low demand Estimated propane use 20% Bins for bulk delivery of pellets Installed Cost: $211,000

35 Summary of Options Option Capital Cost Tons of Wood Pellets Wood Pellet Cost * Propane Cost Energy Savings Simple Payback years A $291, $82,770 $8,558 $79, B $211, $69,776 $34,232 $67, * Bulk Wood pellet cost $178 / ton in 22 ton loads

36 Cherry School in Iron, MN With increases in school student population of 45% in the past few years, future investment was on the horizon and how to best plan for the future. The 87,000 square foot school will be supplemented by a biomass pellet system as per their conversations and planning to offset costs by 30+% in supplementing with pellets which will save close to 60,000 gallons of LP annually.

37 Delivered Actual Delivered Annual Fuel Appliance Efficiency BTU/Unit BTU/Unit Units/ Mil BTU Cost/Unit Consumption Cost $ Wood Pellets 88% 16,000,000 14,080, $ Tons 55,964 7% moisture BTU/Ton BTU/Ton Tons per ton Propane 90% 91,200 82, $ ,000 Gallons $ 105,000 BTU/Gallon BTU/Gallon Gallons per gallon Pellet consumption 100% 350 $ 55,964 Backup consumption 10% 6,000 $ 10,500 $ 66,464 Annual fuel savings $ 38,536

38 This 780,000 BTU WoodMaster Commercial Series 230 will use about 271 tons of pellets annually with the 25 tons of storage designed for, needing about loads a year delivered. Payback of 5 6 years is anticipated.

39 Wolf Ridge Environmental Learning center Finland, MN Previous system they compared to was a 100% cordwood system that utilized cords/year. While they know they may have improved the efficiency of the previous wood system with an update, they chose to move workforce house into other areas of the operation reducing time spent on the wood system by 75% utilizing fully automated PLC s and feed systems.

40 Uses it s tools implemented not only as an energy source, but as a teaching tool. In addition to space heating it provides domestic water heat for 2 dormitories and the dining hall for up to 380 people. Their teaching philosophy is simple: learning happens best when one experiences it. Holistic Approach Contact Curriculum Advocacy via Education ridge.org/education/

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42 Wolf Ridge ELC has two pellet boilers with a total capacity of 3.4 million BTU. WoodMaster Commercial Series pellet boilers will heat the 84,000 sq. ft. of the campus. 175 tons of wood pellets can replace 25,000 gallons of fuel oil or 30,000 gallons of propane.

43 Many examples and studies done, some like this in Wisconsin

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45 Smaller schools and buildings may still be cost effective depending on proximity to biomass source, good pricing (residuals, etc) and possible use of existing boiler room. Sensitivity analysis in pricing is something that is key in larger projects.

46 What else can I learn? Webinar Schedule (All webinars will run from 1:00 PM to 2:15 PM CST) Presentation slides and videos of presentation will be available at wisconsinwoodenergy.org/learning.html Feb 18 The Wisconsin Energy Picture Feb 25 Types of Wood Fuels & Appliances March 4 Pre-Feasibility Assessment Tools & Grant Funding March 11 Residential/Commercial Project Examples & Economics March 18 Overview of Industrial Wood Heating & Power Systems March 25 Case Study of Large Scale Wood Energy Projects April 1 Wood Fuel Supply and Distribution Business April 8 Wood Energy Cluster Development /District Heating

47 Summary Thoughts

48 Questions This presentation was developed and shared by: Tony T.J. Morice V.P. Marketing & Operations Marth Companies Comments and suggestion should be directed to