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Alternative Fuels Project: Elk Regional Health Center

Alternative Fuels Project: Elk Regional Health Center. ADVANCED RECYCLING EQUIPMENT, INC. History In 2005 the ERHS Board of Directors recognized the need to reduce the cost of energy for the Elk Regional Health Center.

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Alternative Fuels Project: Elk Regional Health Center

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  1. Alternative Fuels Project:Elk Regional Health Center ADVANCED RECYCLING EQUIPMENT, INC.

  2. 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.

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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.

  8. 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.

  9. 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

  10. System Layout

  11. 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 A&E Fees 85,000 Environmental Engineering Fee 8,500 Advanced Recycling Equipment Package 814,855 TOTAL PROJECT COSTS: $ 2,306,304

  12. 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

  13. 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

  14. 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.

  15. Project Cash Flow Impact(Return on Investment)

  16. 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

  17. Questions & Answers

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