Tipperary Institute Biomass Project Procurement
The TEA has successfully completed the feasibility study, design and procurement service to the Tipperary Institute to install a 300kW Wood Chip Biomass boiler. This project is part of the Tipperary Institute commitment provide a lead by example in conversion to a sustainable low carbon operation.
The new 300kW wood chip boiler will provide the base load for all heat on campus thus replacing the existing oil boiler system. The existing oil boilers will be set up to provide peak load on rotation.
The successful tenderer will install the boiler, fuel store and balance of plant. It will communicate with the existing Building Management System on site to provide the base load heat. The successful tenderer will also provide the wood chip from a local supplier to the facility on a heat supply agreement where the college will pay for the kWh delivered.
Existing Oil:
Based on historical oil usage for 2007 – 2010, the average oil consumed in the campus was 63,000l per annum. At today’s oil price of 81 c/l this equates to €51,000 per annum including VAT. This is the equivalent to 7.7c/kWh delivered.
Planned Biomass:
The new biomass boiler shall be approx 85% efficient and will provide 96% of the total heat load. The cost of wood chip based on SEAI’s fuel comparison spread sheet is 3.41c/kWh at 35% moisture. This means that the cost for the equivalent heat to Tipperary Institute will be approximately €20,000 annually.
Financials:
The Tipperary Institute are financing the Capital Investment for the project, The heat will then be provided on a metered heat supply and invoiced by the heat supplier to the college. The cost of installation is in the region of €500 per kW capacity installed and will have an internal rate of return of 5.1 yrs. This leads to a positive cash flow of €31,ooo per annum approximately which the college plan to re invest in retrofitting of existing buildings and converting building currently heated by electricity to a wet system connected to the Biomass network.
Carbon Savings:
The CO2 in saved per annum equates to 203 tonnes per annum and a Carbon Tax Saving of €3,050 up to 2013 and €6,100 from 2014 based on plans to double carbon tax rate in 2013/14.
