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Biomass Feasibility Study

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Biomass Feasibility Study BIOMASS FEASIBILITY STUDY for the Southwestern Vermont Medical Center 100 Hospital Drive Bennington Vermont Prepared for: Lavallee Brensinger Architects 155 Dow Street Manchester, NH February 5, 2009 Prepared and Submitted by: In conjunction with Fitzmeyer and Tocci Associates, Inc., Forward Thinking Consultants, and Professor Ralph Draper (UNH) GDS Associates, Inc. • 1181 Elm Street • Suite 205 • Manchester, NH 03101 • www.gdsassociates.com Marietta, GA • Austin, TX • Auburn, AL • Manchester, NH • Madison, WI TABLE OF CONTENTS I. EXECUTIVE SUMMARY .......................................................................................................... 5 II. INTRODUCTION ....................................................................................................................... 3 PROJECT BACKGROUND ............................................................................................................ 3 PREVIOUS STUDIES ................................................................................................................... 3 PROJECT SCOPE ....................................................................................................................... 4 ASSUMPTIONS .......................................................................................................................... 4 III. SYSTEM DEFINITIONS ............................................................................................................ 5 DIRECT BURN SYSTEMS ............................................................................................................ 5 GASIFICATION SYSTEMS ............................................................................................................ 6 PERFORMANCE CONTRACTOR ................................................................................................... 6 TURNKEY CONTRACT ................................................................................................................ 6 WOODCHIPS ............................................................................................................................. 6 WOOD PELLETS ........................................................................................................................ 7 SYSTEM CONSIDERATIONS .............................................................................................................. 9 FUEL DELIVERY / TRANSPORTATION .......................................................................................... 9 Current Traffic Issues .......................................................................................... 10 Fuel Delivery Analysis ......................................................................................... 11 Biomass System Impacts .................................................................................... 12 SITE REQUIREMENTS .............................................................................................................. 12 FUEL STORAGE AND HANDLING ............................................................................................... 12 Storage Systems ................................................................................................. 12 Fuel Handling Systems ........................................................................................ 13 OPERATION AND MAINTENANCE ............................................................................................... 16 Oil Boilers ............................................................................................................ 16 Wood Chip Boilers ............................................................................................... 16 Wood Pellet Boilers ............................................................................................. 17 EMISSION CONTROL ................................................................................................................ 18 Cyclonic Separator .............................................................................................. 18 Bag House Filtration ............................................................................................ 19 EMISSIONS .............................................................................................................................. 19 RELIABILITY ............................................................................................................................ 20 Supply Reliability ................................................................................................. 20 Equipment Reliability ........................................................................................... 21 PERMITTING ............................................................................................................................ 22 REGIONAL RESOURCES ........................................................................................................... 22 INCENTIVES............................................................................................................................. 23 ENGINEERING CALCULATIONS ...................................................................................................... 23 SVMC HEATING LOAD ............................................................................................................ 24 VARIABLE INPUTS .................................................................................................................... 26 Heat Content ....................................................................................................... 26 System Efficiencies ............................................................................................. 27 Biomass Load Capability Assumptions ............................................................... 27 IV. FUEL PRICING ....................................................................................................................... 29 NO. 2 HEATING OIL ................................................................................................................. 29 Future Pricing ...................................................................................................... 29 Supply Reliability (No. 2) ..................................................................................... 32 WOODCHIPS ........................................................................................................................... 34 WOOD PELLETS ...................................................................................................................... 36 V. COST EFFECTIVENESS ANALYSIS ..................................................................................... 39 SYSTEM COST ESTIMATES ...................................................................................................... 39 SIMPLE PAYBACK .................................................................................................................... 39 LIFE CYCLE COST ANALYSIS .................................................................................................... 40 Sample Calculations ............................................................................................ 42 INTERNAL RATE OF RETURN (IRR) ........................................................................................... 43 VI. FINDINGS ............................................................................................................................... 45 RANKING METHODOLOGY ........................................................................................................ 45 RESULTS ................................................................................................................................ 45 VII. ENERGY PERFORMANCE CONTRACTS ............................................................................ 46 VIII. CONCLUSION AND NEXT STEPS ........................................................................................ 47 List of Figures Figure 1: Direct Burn System ................................................................................................................ 5 Figure 2: Bennington, Vermont .............................................................................................................. 9 Figure 3: VT-279 Bennington Bypass ................................................................................................. 10 Figure 4: Woodchip Boiler Schematic Arrangement ........................................................................... 14 Figure 5: Wood Pellet Schematic System Arrangement ..................................................................... 15 Figure 6: Cyclonic Separator ................................................................................................................ 19 Figure 7: No. 6 Fuel Oil Usage (Gallons) for 2007, 2008, and Average Usage .................................. 24 Figure 8: Adjusted Monthly Heating Load ........................................................................................... 26 Figure 9: NYMEX Heating Oil Prices 1999-2008 ................................................................................ 30 Figure 10: NYMEX Heating Oil Prices 1999-2008 (Peak Removed) ................................................... 31 Figure 11: EIA AOE 2009 Future Oil Price Predictions ....................................................................... 32 Figure 122: World Oil Supplies and Productions ................................................................................
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