Biomass furnaces for heating poultry houses november 2008
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Biomass Furnaces for Heating Poultry Houses November 2008. By Jim Wimberly Bio Energy Systems LLC Fayetteville, AR. Presentation Objective. … To provide a better understanding of how to evaluate a biomass-fired furnace system prior to purchase What are the key factors to evaluate?.

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Biomass furnaces for heating poultry houses november 2008 l.jpg

Biomass Furnaces for Heating Poultry HousesNovember 2008

By Jim Wimberly

BioEnergy Systems LLC

Fayetteville, AR


Presentation objective l.jpg
Presentation Objective

… To provide a better understanding of how to evaluate a biomass-fired furnace system prior to purchase

  • What are the key factors to evaluate?


Presentation overview l.jpg
Presentation Overview

  • Understanding the problem…expensive propane consumption

  • Displacing propane with biomass

  • Technical considerations

  • Economics considerations

  • Other considerations


Displacing propane l.jpg
Displacing Propane

  • The amount of energy required for space heating varies…

    • Within a flock


Displacing propane5 l.jpg
Displacing Propane

  • The amount of energy required for space heating varies…

    • Within a flock

    • From flock to flock


Displacing propane6 l.jpg
Displacing Propane

  • The amount of energy required for space heating varies…

    • Within a flock

    • From flock to flock

    • From year to year

average = 6,000 (?)

range

high

low

0

1

2

3

4

5

6

7

Gallons / year (thousands)


Displacing propane7 l.jpg
Displacing Propane

  • Propane is convenient.

    • But it’s the #1 expense for growers -- and it’s getting more expensive…

~$2.20

in April 2008

residential

@ Savoy

wholesale


Anticipating future propane prices l.jpg
Anticipating future propane prices?

$4.93

Average

annual escalation since ’98 = 14.4%

$4

$3.29

Future escalation if @ 14.4%

$3

$2

$ / gallon

$1

0

1999

2002

2005

2008

2011

2014


Displacing propane9 l.jpg

average = 6,000

range

high

low

0

1

2

3

4

5

6

7

Gallons / year (thousands)

Displacing Propane

  • What’s a realistic target displacement level of propane?

@ $2.20/gal, value of propane displaced  $11,200 / year

@ 85% of total consumption, propane displaced  5,100 gal/yr

85%

Total furnace system heat energy output required for a 40’x400’ house = ~250,000 Btu / hour


Displacing propane conclusions l.jpg
Displacing Propane…conclusions

  • target displacement rate = 85% of propane consumed

  • target displaced quantity = 5,100 gallons/year

  • value of displaced propane = $11,200/year

  • required output size of furnace = 250,000 Btu/hour

  • note: these figures are for the assumed “typical” broiler house in northwest Arkansas


What are the key selection criteria for a furnace l.jpg
What are the Key Selection Criteria for a Furnace?

  • Technically viable

    • Is it proven?

    • Will it stand up to conditions in a poultry house?

  • Economically feasible

    • Do the numbers work?

    • Is it a good investment?

  • Environmentally acceptable

    • Are there any significant issues that must be addressed?

  • The “hassle factor”

    • Does it require lots of TLC to keep it going?

    • How much maintenance will be needed?


What s included in a biomass furnace system l.jpg
What’s included in a biomass furnace system?

fuel storage, handling and in-feed

combustor,

including heat exchanger & ash management

hot air distribution

Flue

Poultry

House

Heat

Exchanger

Auger

to Hot Air

Distribution

System

Hopper

Combustion

Chamber

Instrumentation & controls


Farm options single house system l.jpg
Farm Options: Single-house system

Furnace outside the

poultry house

Furnace inside the

poultry house

Heat distribution system

Furnace

Fuel supply



What are the primary fuel options l.jpg
What are the Primary Fuel Options?

  • Cordwood

  • Corn

  • Raw litter

  • Pelletized litter

  • Raw sawdust

  • Wood (& other) pellets

  • Baled biomass

  • *Coal*

Pellet furnace;

Prim, AR; 1995.


Economics key factors to consider l.jpg
Economics: Key Factors to Consider

An economic analysis should be performed for each individual farm considering an investment in a bioenergy system

  • Price of propane

    • And the assumed annual escalation rate

  • Amount of propane displaced

  • Price of biomass fuel

  • System service life

  • System efficiency

Pellet furnace;

Savoy, AR; ~1998.


Fuel economics example calculations of fuel costs l.jpg
Fuel Economics: example calculations of fuel costs

@ 85% displ.

= 8,400 x 93%

= 5,100 x 91,000 / 1,000,000

= 464,000,000 / 7,800 / 2,000

= 30 / 0.65

= 46 x $140

= $6,400 / 464


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Economics: Sensitivities

  • Let’s look at key sensitivities for a wood pellet-fired system

  • First, let’s review the “base case” assumptions:

    • Current propane consumption = 6,000 gal / yr

    • Current propane cost = $2.20 / gal

    • Target propane displacement = 85%

    • Energy content of wood pellets = 7,800 Btu / lb

    • Overall system efficiency = 65%

    • Cost of wood pellets, delivered = $160 / ton

    • Capital cost, all-inclusive = $20,000

    • Financing costs (20% dn, 7.5% APR, 5 yrs) = $3,000

    • Service life = 10 years

    • Maintenance & utilities = $400 / year (with 8% AIF)

    • Inflation rate of propane = 7.0% per year

    • Inflation rate of pellets = 2.5% per year

    • Fuel support payment = $0


Sensitivity pellets required vs system efficiency l.jpg

$22

$17

$000 / year (@$160/ton)

$11

$6

$0

Sensitivity: Pellets Required vs. System Efficiency

$24,200

Conclusion:

Overall system efficiency fundamentally affects the economics of the furnace systems

152

160

120

$12,100

76

80

$8,100

Tons / year

51

$6,100

38

$4,900

40

30

0

0%

20%

40%

60%

80%

100%

Overall system efficiency

For wood pellet fuel @ base-case assumptions


Sensitivity pellets required vs system efficiency20 l.jpg

$22

$17

$000 / year (@$160/ton)

$11

$6

$0

Sensitivity: Pellets Required vs. System Efficiency

$24,200

Conclusion:

Overall system efficiency fundamentally affects the economics of the furnace systems

152

160

120

$12,100

76

80

$8,100

Tons / year

51

$6,100

38

$4,900

40

  • Key factors affecting system efficiency:

  • Furnace design

  • Proper operation

  • Effective furnace maintenance

  • Effective maintenance of heat exchanger(s)

30

0

0%

20%

40%

60%

80%

100%

Overall system efficiency

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs system efficiency l.jpg
Sensitivity: Economics vs. System Efficiency

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

0%

20%

40%

60%

80%

100%

Overall system efficiency

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs system service life l.jpg
Sensitivity: Economics vs. System Service Life

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

4

7

10

13

16

Service Life, years

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs capital cost l.jpg
Sensitivity: Economics vs. Capital Cost

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

$10

$15

$20

$25

$30

capital cost (x000)

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs biomass fuel cost l.jpg
Sensitivity: Economics vs. Biomass Fuel Cost

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

$120

$140

$160

$180

$200

Cost of Wood Pellets, per ton delivered

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs propane consumption l.jpg
Sensitivity: Economics vs. Propane Consumption

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

4,000

5,000

6,000

7,000

8,000

Average Current Propane Consumption, gallons / year

For wood pellet fuel @ base-case assumptions


Sensitivity economics vs propane cost l.jpg
Sensitivity: Economics vs. Propane Cost

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

$1.40

$1.80

$2.20

$2.60

$3.00

Cost of Propane, per gallon

For wood pellet fuel @ base-case assumptions


Sensitivity inflation rate for propane l.jpg
Sensitivity: Inflation Rate for Propane

14.4%

@ 6,000 gal / yr

& 65% sys eff.

& $160 / ton

$100,000

$50,000

Net

benefit

(cost)

0

-$50,000

-$100,000

3%

5%

7%

9%

11%

13%

Annual inflation rate of propane costs

For wood pellet fuel @ base-case assumptions


Sensitivity inflation rate for propane28 l.jpg
Sensitivity: Inflation Rate for Propane

@ 6,000 gal / yr

& 65% sys eff.

& $160 / ton

$100,000

$50,000

Net

benefit

(cost)

0

@ 4,000 gal / yr

& 50% sys eff.

& $200 / ton

-$50,000

-$100,000

3%

5%

7%

9%

11%

13%

Annual inflation rate of propane costs


Economic analyses conclusions l.jpg
Economic Analyses … Conclusions

  • Key factors affect the economics of the system

    • Price of propane

      • And the assumed annual escalation rate

    • Amount of propane displaced

    • Price of biomass fuel

    • System service life

    • System efficiency

  • Some systems appear attractive, based on certain assumptions

  • Each situation requires making various assumptions and projections regarding future fuel prices

  • An economic analysis should be performed for each individual farm considering an investment in a bioenergy system


Environmental considerations l.jpg
Environmental Considerations

  • Air emissions: these farm-scale systems are not currently regulated.

  • Ash:

    • The ash needs to be effectively managed, regardless of fuel type.

    • In particular, litter-derived ash would need to be managed.

      • Essentially all of the P & K in the litter ends up in the ash

  • Benefits of dry heat

    • Reduced moisture levels in the house  lower ammonia levels

      • Better environment for the birds (& the operators)

        • Reduced mortality?

        • Improved feed conversion?

        • Shorter grow-out period?

      • Less Nitrogen in the air  more Nitrogen in the litter

        • higher quality litter (= higher $$$ litter)

6.8 pounds of H2O per gallon of propane burned


Slide31 l.jpg

Jim Wimberly

BioEnergy Systems LLC

Fayetteville, AR

479.527.0478

www.biomass2.com

Pellet furnace demo;

Durham, AR; 1995.


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