Alternative Fuels Project: Elk Regional Health Center

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Alternative Fuels ProjectElk Regional Health
Center
ADVANCED RECYCLING EQUIPMENT, INC.
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• History
• In 2005 the ERHS Board of Directors recognized
  the need to reduce the cost of energy for the Elk
  Regional Health Center.
• The Director of Maintenance was charged with
  researching viable alternative energy sources.
• The Fund Developer was charged with finding
  funding sources in relation to implementing a new
  energy system.
• The following slides document a presentation to
  the Board of Directors, which convinced them to
  approve the Biomass Project.

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What are Alternative Fuels?

• Renewable fuel sources other than fossil fuels
  (e.g. oil, coal and gas)
• Examples Ethanol, Chemically-Stored Electricity
  (Batteries and Fuel Cells), Hydrogen, Vegetable
  Oil, Peanut Oil, Biomass

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What is Biomass?

• Carbon-based organic matter that is available on
  a renewable basis.
• Often refers to living and recently living
  biological material that can be used as a fuel
  source.
• Common Forms Agricultural Crops and Waste, Wood
  and Wood Waste, and Forest and Mill Residue

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Why Biomass?

• Renewable Form of Energy
• Zero Net Effects on the Environment
• Local Availability
• Fossil Fuel Costs at an All Time High
• Price Stability
• Enhances Local Economies

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Fuel Supply

• Emporium Hardwoods
• Penn Pallet Pallet and Pallet Material Waste
• Allegheny National Forest Forest Residual Waste
• Many Other Local Possibilities Sawmill Waste,
  Waste from Land Clearing/Tree Service, Wood Waste
  from Manufacturing Facility

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Cost of Gas Versus Biomass
1 Based on actual gas bills provided by Elk
Regional Health Center.2 Based on average of
2004 through 2006 plus 26 contracted increase
per therm.3 Actual gas bill not yet available
Based on average of Dec. 2004 and Dec. 2005.4
Based on cost of 2.31/GJ 600 per Truckload
(Approx. 20 Ton) 13GJ/Ton of Wood Biomass rated
at 6500 BTU/lb, multiplied by 20 Ton per Load
equals 260 GJ per Truckload.
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Project Description

• Implementation of Alternative Fuels Program
  through installation of Biomass Combustion System
  to heat and cool campus facilities, as well as
  aid in sterilization processes.

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ProposedBiomass Combustion System

• CHALLENGER CCUE612-S Steam Model with 15MMBTU
  Output
• Extended Combustion Zone, Auto De-Ash and PCC
  Controls
• 450 HP Steam Boiler
• Dual Truck Unloading System with Transfer
  Conveyors
• Various Type of Fuel, Ranging from Whole Tree
  Chips to Sawdust, with 30-50 Moisture Content

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System Layout
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Project Cost Breakdown

• The following costs are not to exceed quote. The
  new structure will be a steel building.
• Hallstrom General Conditions 89,079
• Site Work/Demo 120,808
• Concrete 128,578
• Masonry 214,446
• Metals 82,141
• Carpentry 2,083
• Moisture Protection 59,029
• Doors Windows 23,283
• Finishes 5,610
• Mechanical 172,846
• Electrical 145,946
• Maintenance Shop Replacement 269,600
• TOTAL CONSTRUCTION COSTS 1,313,449
• Construction Contingency 75,000
• Permits 9,500
• AE Fees 85,000

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Funding Process

• Applied for the Pennsylvania Energy Development
  Authority grant funds July 2006
• Funds approved October 2006
• Applied for USDA Forest Service Woody Biomass
  grant funds November 2006
• Funds approved April 2007
• Applied for USDA Community Facilities loan
• Loan closed April 2007

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Funding Breakdown

• Pennsylvania Energy Development Authority Grant
  500,000
• USDA Forest Service Woody Biomass Grant 250,000
• USDA Rural Development Equipment Loan 300,000
• (4 1/8 for 15 years)
• USDA Rural Development Construction Loan
  1,256,304
• (4 1/8 for 40 years)
• TOTAL FUNDING PACKAGE 2,306,304

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Project Timetable

• Notify A.R.E. to order Boiler February 2007
• Demolition of Present Maintenance Shop June 2007
• Relocate Maintenance to Temporary Location June
  2007
• Construction of Biomass Building and June 2007
• Maintenance Shop
• Installation of Biomass Combustion
  System November 2007
• Equipment Testing January 2008
• Begin Operations of New System January 2008
• The boiler manufacturer needs 8 months at this
  time to construct the boiler.

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Project Cash Flow Impact(Return on Investment)
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Project Benefits

• Reduced Fuel Costs
• Eliminate Dependency on Fossil Fuels
• State Grant Funds Already Awarded Possibility of
  Federal Funding
• Revenue Source after 6 Years
• Dramatically Reduced Greenhouse Gas Emissions
• Marketing/PR Opportunities
• Enhance Local Economy
• A.R.E. is Local Manufacturer/Service Provider

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Questions Answers