Suitability of Woody Biomass Heating in Remote Alaskan Environments Cory Luker Biomass Energy Research Technician Summer 2014 | Fairbanks, Alaska My name is Cory Luker. This summer I had the unique opportunity to work as a research intern for the Alaska Center for Energy and Power also know as ACEP. In addition to ACEP, my internship was cosponsored by the Tanana Chiefs Conference, a tribal consortium of federally recognized tribes across the interior of Alaska. This summer my research focused on woody biomass energy systems and their suitability for a community within the Tanana Chiefs Conference. I would like to take a few minutes to discuss the background, motivation, and findings of my summer’s work.

Energy Challenges in Remote Alaskan Villages Sparsely populated, isolated communities = some of the highest energy costs in the nation Extreme arctic climate = some of the highest heating demands in nation High cost of imported fuel oil is impeding economic development Need for an alternative cost-effective heating solution Woody biomass, a saving grace? TCC communities that have either installed or have considered installing a biomass heating systems The majority of the communities within the Tanana Chiefs Conference or TCC are sparsely populated and highly isolated due to lack of road access. As a result these communities have some of the highest energy costs in the nation. TCC communities also have some of the highest heating demands in nation, a result of the extreme subarctic and arctic climates of the region. Lastly, because heating oil is imported, any money spent on the fuel is withdrawn from the communities local economy, stifling economic development As the cost of fuel oil continues to rise, the necessity to find cost-effective solutions to reduce the cost of heating homes and community buildings is becoming a primary concern. Biomass is one type of energy that is abundant and locally available and is quickly gaining traction in the region. Over the past decade 33 of the 42 TCC tribal communities have either already installed a biomass system considered feasibility of installing one.

Motivation for Research Renewable Energy Fund (REF) – Millions of dollars of government funding going towards biomass systems since 2007 focuses on resource assessments, feasibility, design, and construction NO focus on long term business and logistical studies The long term sustainability of biomass heating systems are unproven in rural Alaska Why are some projects exceeding expectations and other faltering? Currently there is a great deal of interest in installing biomass systems in rural Alaska. Since 2007, the State of Alaska’s Renewable Energy Fund Grant Program has provided millions of dollars in funding for a variety of biomass projects. The grant money is directed at issues concerning the initial investment and installation of the systems. Once the systems are installed, the responsibility of their operation is in the hands of the community As a result litlle effort is being focused on the ability for communities to developing proper business and logistical models to ensure that the installed projects operate in an economically sustainable and efficient manner. At this point, the long term sustainability of biomass energy systems is unproven. Already, some of the earliest biomass system installations are faltering while others are exceeding expectations. My research seeks to bring to light the reasons why some biomass systems fail and others succeed.  

Scope of Work Case study for the TCC community of Tanana, Alaska’s biomass heating systems Quality, source, and sustainability of wood resource Feedstock logistics Biomass heating systems integration Operation, maintenance, and repair Project economics and business model Miscellaneous tasks: Writing monthly newsletter articles Biomass Report Consolidation Develop interview questions and metrics for wood heating systems The primary goal of my internship is to break ground understanding the driving factors that affect the long-term sustainability of biomass heating projects in remote Alaskan villages. This summer I collected information from reports and personal interviews to create an in-depth case study for the city of Tanana’s biomass heating installations. I focus on the quality, source, and sustainability of the biomass feedstock, the project’s logistics, the installed heating systems, and the project’s economics. In doing so, I have created an unprecedented report outlining common mistakes as well as common successful project management decisions, methods, and tools, and the best practices from Tanana

Biomass in the City of Tanana Longest continually operating biomass heating systems in TCC Currently has 5 individual biomass initiatives and 13 woody biomass boilers Using cordwood boilers to generate heat for: School, water treatment facility, teacher public housing, fire station, and the city’s water lines Cordwood boiler installation in the City of Tanana’s school The city of Tanana’s partial conversion to woody biomass began in 2007 and has some of the longest running biomass heating systems in the region. Due to an influx of grant funding, the city currently has 5 individual biomass heating systems and a total of 13 woody biomass boilers. All 5 biomass initiatives in Tanana utilize commercial scale cordwood boiler units. The boilers provide heat for the Tanana’s school, water treatment facility, teacher public housing, fire station, and the city’s water lines

Tanana: Economic Assessment Table 1: Economic analysis of Tanana's biomass heating systems assuming 20% moisture content Location Avoided Fuel Oil Costs @$5.75/gal (dollars/year) Wood Fuel Cost @$300/cord (dollars/year) Labor Cost @ $16 dollars/hour (dollars/year) Maitenance and Repair Cost (dollars/year) Net Annual Savings (dollars/year) 20% MC @10 hrs/cord @18 hrs/cord Washateria $42,693.75 $(24,000.00) $(12,800.00) $(23,040.00) $(1,200.00) $4,693.75 $(5,546.25) Fire Station $5,336.72 $(3,000.00) $(1,600.00) $(2,880.00) $(150.00) $586.72 $(693.28) City Shop $6,404.06 $(3,600.00) $(1,920.00) $(3,456.00) $(180.00) $704.06 $(831.94) School $53,367.19 $(30,000.00) $(16,000.00) $(28,800.00) $(1,500.00) $5,867.19 $(6,932.81) Public Housing $1,601.02 $(900.00) $- $(45.00) $656.02 Total $109,402.73 $(61,500.00) $(32,320.00) $(58,176.00) $(3,075.00) $12,507.73 $(13,348.27) Table 2: Economic analysis of Tanana's biomass heating systems assuming 35% moisture content Location Avoided Fuel Oil Costs @$5.75/gal (dollars/year) Wood Fuel Cost @$300/cord (dollars/year) Labor Cost @ $16 dollars/hour (dollars/year) Maitenance and Repair Cost (dollars/year) Net Annual Savings (dollars/year) 35% MC @10 hrs/cord @18 hrs/cord Washateria $34,679.69 $(24,000.00) $(12,800.00) $(23,040.00) $(1,200.00) $(3,320.31) $(13,560.31) Fire Station $4,334.96 $(3,000.00) $(1,600.00) $(2,880.00) $(150.00) $(415.04) $(1,695.04) City Shop $5,201.95 $(3,600.00) $(1,920.00) $(3,456.00) $(180.00) $(498.05) $(2,034.05) School $43,349.61 $(30,000.00) $(16,000.00) $(28,800.00) $(1,500.00) $(4,150.39) $(16,950.39) Public Housing $1,300.49 $(900.00) $- $(45.00) $355.49 Total $88,866.70 $(61,500.00) $(32,320.00) $(58,176.00) $(3,075.00) $(8,028.30) $(33,884.30) Shown is an abridged economic analysis for the annual savings associated with the biomass systems in Tanana at present conditions. As is explained in detail in my report, the variability in annual savings is primarily driven the moisture content of the wood fuel and the operating costs. Table 1 analyzes Tanana’s wood stocking supply at an optimal 20% moisture content. At present’s conditions, the use of wood saves roughly $48,000 annually in fuel costs. In comparison, table 2 analyzes Tanana’s wood stocking supply at 35% moisture content where there is roughly $27,000 in fuel savings, a decrease of about $20,000. The operational costs associated with splitting, stacking, and burning the wood reduce the economic viability of cordwood boilers considerable. As is shown in table 1, assuming 18 hours/cord, a rate calculated based on information received in interviews with biomass boiler operators, the biomass systems in Tanana are effectively losing $13,348 dollars compared to fuel oil systems at optimal wood fuel conditions.

Tanana: Primary Conclusions There is a current lack of organization and coordination between wood harvesters, city officials, and boiler operators Burning wet wood is drastically reducing the efficiency of the cities biomass heating systems Operational costs are significant with the installed cordwood boilers Biomass systems promote a sustainable village economy through job growth and new local wood fuel markets even if they themselves are not economically viable My report emphasizes how the costs associated with harvesting; transporting, splitting, storing, and burning cordwood can be mitigated through coordination between wood harvesters, city officials, and boiler operators. In addition, I touch on ways to ensure that wood is burnt at optimal moisture contents for optimal system efficiency. From my research and interviews, it became apparent that the Operational costs of cordwood biomass systems are significant. Within the bounds of my report I was not able to specifically pinpoint operational costs due to the complexity and varying nature of each of Tanana biomass heating systems. My research presents a strong argument for others to look closely at operating costs before installing cordwood biomass systems of their own. Lastly, and perhaps most importantantly, I discuss biomass systems positive benefit on village economies. Biomass installations create a lucrative market for wood harvesting as well as additional jobs for operation personnel. When the City of Tanana purchases firewood for its boilers, the money for harvesting, transporting, splitting, stocking, and burning the wood is going to residents of Tanana, not outside fuel oil companies Due to the self contained nature of biomass heating systems in Tanana, converting to biomass can be viewed as an effort by the city of Tanana to improve the economic sustainability of the community.

A Special Thanks To My mentors Amanda Byrd & David Pelunis-Messier and the wonderful staff and interns at ACEP I would like to give a special thanks to ACEP and the Tanana Chiefs Conference for cosponsoring my internship this summer. In particular I would like to thank my amazing mentors Dave and Amanda for believing in me and coaching me through both work related and non-work related issues in my life. And Lastly, I would like to thank the ACEP staff and other interns for helping to make this summer a memorable experience. It has been a dream of mine to come to Alaska, and my time in Fairbanks this summer will be an experience I never forget. I hope to be back in the future!