May 2011 Biomass Power & Thermal

Page 43

PROJECT DEVELOPMENT¦ The new biomass district heating plant will occupy the same space that the current plant does: smack dab in the middle of the downtown historic district and across the street from the state capital complex. The current steam distribution system heating the 17 capital complex buildings will remain operational, but a new hot water distribution loop will connect the new plant with the city’s buildings, including fire and police stations, on the opposite end of the relatively small downtown district. “If you’re building today, hot water is the way to go,” Garabedian says. “However, that state steam system is in place and it’s in good condition, so it’s not economically justifiable at this point to replace it.”

2007—City of Montpelier holds energy town meeting. District energy is identified as a high priority. Committee reconvenes.

January 2010—U.S. DOE ARRA grant awarded to the city of Montpelier to build a renewable district energy system.

2009—City hires Veolia Energy to conduct feasibility study. Early in the process, it recommends a partnership with the state of Vermont to make the plant economically viable.

Subsequently, the hot water distribution system will branch out and enable a number of commercial and residential structures in between the two government complexes to hook up to the new loop as well. Eventually, the system will produce up to 41 MMBtu of heat and Garabedian says the expectation is it will heat 1.8 million square feet of the community. It is also possible that the facility could produce a small amount of power, but that aspect of the design is still an open-ended question, Fraser says. Ownership structure plans for the project dictate that the state will own and operate the new plant as it has the old one, and the

June 2010—Capital bill passed with language directing the state of Vermont Commissioner of Buildings and General Services to sign a letter of intent with the city of Montpelier and fully explore the economics of the plant renovation.

March 2010—Veolia feasibility study complete. Conclusion: A district energy system for the state of Vermont and the city of Montpelier could be economically viable without private building owners. Flaws: The report oversizes the demand for the state of Vermont.

October 2010—Bids received for design build from Pizzagalli, DEW, and MacMillin.

November 2010—Carr & Copp economic study complete. Conclusions: $2 million net present value of accelerated replacement of heating plant.

November 2010—Vote to establish Clean Energy Assessment District and change city charter for district energy project passes by close to an 80 percent margin in Montpelier.

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