Study finds wood-powered boiler marginally beneficial for Charlo Schools
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CHARLO – Charlo Schools would likely have to find some substantial grant monies to make installing a biomass boiler worth upfront costs because of relatively low fossil fuel prices and loan costs, an architect told the school board April 22.
Nathan Ratz of CTA Engineering recently completed a feasibility study of whether or not a wood-powered burning system might be more cost-effective for the Charlo School District. The school is looking to replace its current boiler system, which is more than 60 years old.
The study found that it would cost the school between $570,000 and $1.1 million to install one of the wood-burning heating systems, with Ratz projecting $275,000 to $550,000 in grant monies available to help cover those costs. Over the projected 30-year lifespan of the boiler the school district would expect to save between $760,000 and $2.1 million depending on whether wood chips or wood pellets were chosen, but there are variables that could have a significant impact on those numbers, including fuel costs. The study took current fuel oil costs into consideration with normal projected inflation, but those prices are largely the result of a sharp price downturn. If prices skyrocket, wood fuels might become more cost-effective.
“You can see where wood can be very economically beneficial,” Ratz said. “The last two years you’ve paid $3.20 per gallon on average for fuel oil. That equates to around $23 per decatherm. If you were to have wood chips at $50 per ton that’s about $4.53 per decatherm. You can see that’s the economic driver, those savings.”
But financing the project would likely require the school to take out a loan with a projected 12-year repayment time.
“When you look at the fuel savings, it is challenging to leverage that much cost if you have to use the saving to pay for it,” Ratz said.
Ratz said the school might look for grants to help cut down on the upfront costs to help pay for the project and make it more feasible.
Julie Kies of the Montana Department of Natural Resources told the board she would be more than happy to arrange a tour of other schools or hospitals in Montana that have adopted wood-fired heating systems. The state agency paid for the feasibility study. In the past decade, more than nine schools in Montana have opted for wood-powered burning systems that bring two-fold benefits to the community. The first benefit is initial cost savings.
“Those projects are a great success,” Kies said. “Those facilities are saving between 25 and 75 percent on their heating bills. I’m sure as you know, schools need every penny they can get to go into education. It’s your main mission to save on your operating expenses to do that.”
The wood-powered burners can also be a benefit to state forest health. In a 2011 report, the DNRC reported that the fuels used to run the facility were obtained by managing 70 acres of hazardous fuels to reduce risk of wildfire.
Kies said there are many grant opportunities available and that she would help the school look into funding options should they pursue a biomass project. The board didn’t make any commitments, but did note that the projected lifespan of the new boiler systems were around half of the six decades the school has been served by the current boiler, referred to as “the old girl” or “old beast” by administrators.
“We are never going to be able to get rid of that thing, are we?” board member Danny Krantz joked.
