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Biomass Gasification CHP Pilot Project Lessons Learned FNSB and ACEP Ben Loeffler, Energy Management Engineer October 31, 2018 1

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Page 1: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Biomass Gasification CHP Pilot Project – Lessons Learned

FNSB and ACEP

Ben Loeffler, Energy Management Engineer

October 31, 2018

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OUTLINE

1. FNSB-ACEP Partnership2. Biomass CHP Pilot Project Motivations3. Intro to Biomass Gasification CHP4. Pilot Project Outcome5. Lessons Learned

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FNSB-ACEP Partnership

ObjectiveProvide coordination of programs and projects

involving the development, implementation, and evaluation of

energy efficiency, energy delivery, and alternative and renewable energy systems in FNSB.

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Page 4: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Energy Management Engineer“Work with Borough stakeholders and ACEP researchers to evaluate emerging and existing energy efficient technologies relevant to the

Borough.”

ACEPMission: “Develop and

disseminate practical, cost-effective, and innovative energy

solutions for Alaska and beyond”

Vision: “Alaska leading the way in innovative production,

distribution, and management of energy”

Fairbanks Comprehensive

Economic Development Strategy (CEDS)

COMMUNITY PRIORITY #1:

“Lower and stabilize FNSB energy costs by expanding the energy portfolio with a focus on local

resources.”

4

Biomass Pilot Project Motivations

Page 5: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

5

Biomass Pilot Project Motivations

Page 6: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

6 http://alaskarenewableenergy.org/index.php/programs/renewable-energy-atlas/

Biomass Pilot Project Motivations

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Biomass Pilot Project MotivationsS

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Page 8: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

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Biomass Pilot Project Motivations

Win

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Page 9: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

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Biomass Pilot Project MotivationsB

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Page 10: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Fairbanks Galena

Electricity Cost $/kWh $0.20 $0.67

Fuel Cost $/Gallon $2.20 $5.76

Value of 280,000 kWh $ $56,000 $164,000

Value of 2,380 MMBTU $ $45,000 $102,000

Cost of 370 tons Wood Chips $ -$32,000 -$37,000

Cost of Maintenance $ -$30,000 -$40,000

Annual Savings $ $39,000 $187,000

Annual Local Impact $ $64,000 $77,000

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Biomass Pilot Project Motivations

Page 11: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Biomass CHP Pilot Project Goals

Evaluate and Disseminate:

Fuel Suitability

Performance

Reliability

Maintenance Costs

Emissions

Islanded-grid Compatibility

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Page 12: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

FNSB Testing Objectives

Fuel Consumption

Ash Production

Integration with Building

System Reliability

Track every fault event and system downtime

O&M Costs

Track all consumables and parts

Track all labor hours

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ACEP Testing Objectives

Instrumentation of Heat and Power

Grid-Connected Monitoring

Islanded Mode Performance Testing

Disconnect from Grid

Operate in Parallel with Diesel Genset and Load Bank

Data Processing and Analysis

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Page 14: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

14

Intro to Biomass Gasification CHP

Page 15: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

• 25% Carbon Monoxide• 17% Hydrogen• 8% Carbon Dioxide• 2.5% Methane• 47.5% Nitrogen

15

Intro to Biomass Gasification CHP

Page 16: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Intro to Biomass Gasification CHP

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Page 17: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Pilot Project Progress and Plan

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Identify potential pilot project sites

Select an appropriate system

Secure external funding to support pilot installation

Design and build installation

Purchase and install equipment

Operate system and collect data

Analyze performance data, disseminate results

Page 18: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Proposed Site – Big Dipper Ice Rink

• Demand Charges

• Year round heat load

• Chip Access

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Page 19: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Proposed Technology – Volter 40

– Operates on wood chips (spruce and aspen)

– 40kW Electric

– 340,000 BTU/hr Thermal

– Small-scale, packaged unit suited for both railbelt and rural installations

– Load-following, but not grid-forming

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Page 20: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

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Proposed Site – Big Dipper Ice Rink

0

20

40

60

80

100

120

140

160

180

200

10/26/2016 10/28/2016 10/30/2016 11/1/2016 11/3/2016 11/5/2016

Ele

ctri

city

[k

W]

Grid

Volter

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21

Proposed Site – Big Dipper Ice Rink

0

100

200

300

400

500

600

700

800

900

1,000

July

Au

gu

st

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

emb

er

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

En

erg

y U

sag

e [

MM

BT

U]

Estimated Heat Usage with Volter

Volter Heat Utility Heat

0

100

200

300

400

500

600

700

800

900

1,000

July

Au

gu

st

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

emb

er

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

En

erg

y U

sag

e [

MM

BT

U]

Estimated Electricity Usage with Volter

Volter Power Utility Power

Page 22: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

PM2.5 Emissions

22

64

8.763

0.010

10

20

30

40

50

60

70

Hydronic Heater EPA CertifiedWood Stove

Pellet Stove WoodGasification CHP

PM

2.5

em

issi

on

s [l

b/t

on

]

Page 23: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

PM2.5 Emissions

23

0.03

0.0022

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

Tier IV Diesel Wood Gasification CHP

PM

2.5

em

issi

on

s [g

/kW

h]

Page 24: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

PM2.5 Emissions

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2.69 2.59

0.844

0

0.5

1

1.5

2

2.5

3

Oil Boiler Wood GasificationCHP

Natural Gas Boiler

PM

2.5

em

issi

on

s [g

/BT

U]

Page 25: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Pilot Project Progress and Plan

25

Funding Sources:

$290,000 in EETF Grant + $290,000 required FNSB Match = $580,000

$218,000 USFS Wood Innovations Grant award

$120,000 FNSB Energy Reductions Projects Fund

Page 26: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Pilot Project – What Happened

26

Things that we did right: Identified site and technology and testing plan. Funding awarded and appropriated. EPA, DEC, UL, GVEA Electrical Interconnection, Customs,

compliance plans. Assembly approval of non-competitive procurement to meet grant

scope of work.

Project discontinued by FNSB: Original Scope of Work exceeded budget, FNSB procurement

standards limited ability to negotiate. Equipment provider not comfortable with standard contract

language.

Page 27: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Pilot Project – Lessons Learned

27

Evaluate internal structure for suitability for research type project. Look for cost drivers.

If partnering, carefully consider which entity can best serve as lead.

Stress consensus on legal terms and conditions as early as possible in project.

Page 28: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Why a Pilot Project should still be pursued

Alaska energy costs are high

Biomass is plentiful and sustainable

New technology to produce commercial scale electricity from wood

Reduced costs to building operators

Commercial economic activity

Reduce impact of biomass energy on air quality

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Page 29: Biomass Gasification CHP Pilot Project Lessons Learned...Pilot Project –Lessons Learned 27 Evaluate internal structure for suitability for research type project. Look for cost drivers

Questions?

29

Ben Loeffler

FNSB Energy Management Engineer

[email protected]