Investment

The Tłı̨chǫ Government is investigating the possibility of developing two biomass projects near the community of Behchokǫ, Northwest Territories (NWT). The two projects are a green house with biomass CHP facility and a pellet plant, both utilizing biomass as the heat and electricity source.

Available feedstock for both projects could come from existing forest fire burns, consisting of 130,000,000 standing dead trees in the area.

This study investigates the possible technologies and economics involved in providing both heat and electricity to both of these projects, while utilizing biomass as the energy source.

Investment

Total Capital expenditure (i.e. required investment) for the Biomass CHP Project and Greenhouse.

Direct Costs Remarks 12,000 sq. ft. 30,000 sq. ft.
Greenhouse ($50 per square foot) $ 600,000 $ 1,500,000
Biomass CHP Plant $ 4,860,000 $ 9,720,000
Biomass grinding and processing equipment $ 1,000,000 $ 2,000,000
Biomass handling equipment and loader $ 300,000 $ 600,000
Direct labor and material (including civil, architectural, structural, mechanical and electrical) $ 3,230,000 $ 6,610,000
Emergency diesel engine (1000kVA) 50% of equipment $ 600,000 $ 600,000
Total Direct Costs $ 10,590,000 $21,030,000
Indirect Costs
Owner's cost (legal, financing, project management, etc.) 15% of direct costs $ 1,588,500 $ 3,154,500
Land and site development 5% of direct costs $ 529,500 $ 1,051,500
EPC management 10% of direct costs $ 1,059,000 $ 2,103,000
Project Contingency 15% of direct costs $ 1,588,500 $ 3,154,500
Initial fill, commissioning and startup 5% of direct costs $ 529,500 $ 1,051,500
Total Indirect Costs $ 5,295,000 $ 10,515,000
Total Project Capital Expenditure $ 15,885,000 $ 31,545,000

Biomass CHP Facility

Core technical Operations and Management team is required for the daily operation of the Biomass CHP Facility. Shift operation is considered with 2 operators per shift along with a plant manager, electrical technician and mechanical technician. Total staff required for normal operation is 8 Full-time Employees (FTE).

Staff Requirements for CHP Facility
Plant manager 1
Operator (4 groups x 2 operators per shift) 8
Electrical 1
Mechanical 1
Admin 1
Total FTE 12
Operations and Management Costs for CHP Factility
Biomass Furnace Size (MMBtu/hr) 6 12 18
Gross Electrical Power Requirement (kW) 280 560 840
Thermal + electrical (kWh/yr) 7,972,476 15,944,952 23,917,428
Staff (12 FTE, $30/hr, 2000 hrs/year) $ 720,000 $ 720,000 $ 720,000
Maintenance (15% of CAPEX) $ 457,500 $ 729,000 $ 981,000
General and Administrative Expenses (10% of CAPEX) $ 305,000 $ 486,000 $ 654,000
Biomass grinding/transport/delivery ($50 / tonne) $ 314,570 $ 629,139 $ 943,709
$ 1,797,070 $ 1,844,139 $ 2,578,709

Greenhouse

In addition to the above-mentioned costs for Operations and Management of the Biomass CHP Facility, there will be costs for the Operations and Management of the Greenhouse as listed below to be provided by the greenhouse supplier:

  • Irrigation system
  • Heating system
  • Lighting system
  • HVAC and filtration system
  • Carbon dioxide fertilization system
  • Staffing and labor
  • Energy costs