DISTRICT HEATING SCHEME FEASIBILITY STUDY FRANKTON FLATS QUEENSTOWN

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DISTRICT HEATING SCHEME FEASIBILITY STUDY FRANKTON FLATS QUEENSTOWN 2010 ALPINE AQUALAND EVENTS CENTRE QUEENSTOWN AIRPORT LAKES DISTRICT HOSPITAL Prepared by building services design engineers

2 District Heating Feasibility Study Revision B DISTRICT HEATING FEASIBILITY STUDY Consultant: AirComm Consultants Ltd 57 Leith Street PO Box 5326 DUNEDIN Telephone: (03) 4719-032 Facsimile: (03) 4719-036 Email: glenn@aircomm.co.nz & mika@aircomm.co.nz Revision Description Date By A Preliminary 01/10/10 Mika Miettinen B Final 03/12/10 Glenn Hill

Revision B District Heating Feasibility Study 3 CONTENTS 1 INTRODUCTION... 4 2 BUILDINGS... 5 2.1 QUEENSTOWN AIRPORT... 5 2.2 LAKES DISTRICT HOSPITAL... 5 2.3 ALPINE AQUALAND... 7 2.4 EVENTS CENTRE... 7 3 PEAK HEAT LOADS AND HEAT ENERGY USAGES... 9 3.1 QUEENSTOWN AIRPORT... 9 3.2 LAKES DISTRICT HOSPITAL... 9 3.3 ALPINE AQUALAND... 9 3.4 EVENTS CENTRE... 11 3.5 TOTAL OVERVIEW... 12 4 DISTRICT HEAT SYSTEM... 13 4.1 GENERAL DESCRIPTION... 13 4.2 PLANT... 13 4.3 PIPEWORK AND TRENCH... 13 4.4 SUBSTATION... 14 4.5 HEAT METER... 15 5 COSTS... 16 5.1 ENERGY SOURCE PRICES... 16 5.2 INVESTMENT COSTS... 16 5.3 ANNUAL COSTS... 17 6 CONCLUSIONS... 20 7 REFERENCES... 22 Appendix 1 Overall site plan of Lakes District Hospital... 23 Appendix 2 Substation specifications for the buildings... 24

4 District Heating Feasibility Study Revision B 1 INTRODUCTION This report has been commissioned by Queenstown Lakes District Council (referred to as QLDC ) to ascertain the viability of using a wood-chip boiler type area heating system to provide hot water heating for Queenstown Airport, Lakes District Hospital, Alpine Aqualand (swimming pool) and the Queenstown Events Centre. The structure of this study will be the following. In Section 2, the buildings included in this study and their existing heating systems are described. In Section 3, the approximate peak heat loads and annual heat energy usages in each building that could be supplied by a wood-chip boiler type heating system are estimated. A typical district heat system is described in Section 4. The total costs of the area heat system in this study are covered in Section 5, and the conclusions are presented in Section 6.

Revision B District Heating Feasibility Study 5 2 BUILDINGS 2.1 Queenstown Airport Queenstown Airport in Frankton serves the resort town of Queenstown and is operated by Queenstown Airport Corporation Ltd. The first stage of the buildings was operational 2006. The total floor area of the buildings to date is 11000 m². The airport area does not have an appropriate space for the wood-chip boiler plant. Queenstown Airport is generally heated by roof-mounted heat pumps and a 400 kw diesel boiler. In this study the new centralised wood boiler district heating system would replace the existing diesel boiler, although the diesel boiler would be retained as a back-up boiler. The existing diesel boiler is used to provide Low Temperature Heating Water (LTHW) to air curtains, fan coil units and heating coils to preheat fresh air in the roof top heat pumps. The bulk of the airport heating and all cooling are provided via the roof top air-to-air heat pumps. The centralised wood-chip plant cannot compete against the existing air-to-air heat pump system with the current electricity rates and thus energy usage via the heat pump system is excluded in this study. 2.2 Lakes District Hospital Lakes District Hospital (LDH) on Douglas Street in Frankton is owned and operated by Southern District Health Board (referred to as SDHB ). The overall site plan is shown in Appendix 1. The building also includes an elderly people s home as indicated on the site plan. The hospital part of the building accommodates 21 beds and the elderly people s home part has 31 single bedrooms. The total floor area of the building is 2936 m². The building is heated by three packaged water-to-water type heat pumps with nominal capacities of 195 kw and two times 185 kw, providing LTHW. It is shown that the hospital never needs more than one heat pump operating at peak. One of the heat pumps was replaced with a new one in April 2009 (195 kw nominal capacity one). The other two are originals and were commissioned in November 1989. Over the years older heat pumps have had rebuilds. [1] The heat pumps use lake water as their primary heat source, producing heating water at 55 C with a 10 C temperature difference between flow and return. Lake water is pumped from a pumping station located near the lake to a 22500 litre storage tank

6 District Heating Feasibility Study Revision B in the Energy Centre (see site plan for further details). Lake water from the storage tank is then pumped to individual heat pumps from where part of the lake water runs to a water feature located outside the elderly people s home section of the building. Heating water from the heat pumps is circulated from a 22500 litre accumulator tank which acts as a heat sink between the heat pumps and the heat distribution system. Heat distribution is via a main header fed directly from the accumulator tank. The heat is distributed from the main header to heat air handlers heating coils, underfloor heating circuits and to pre-heat Domestic Hot Water (DHW). The DHW system temperature is topped up with electric elements located in the DHW cylinders. In this study the new centralised wood boiler district heating system would replace the existing water-towater type heat pumps, although one of the water-to-water type heat pumps would be retained as a back-up. The DHW could also be fully heated via the wood boiler district heating system. LDH has a good area for the substation or a wood-chip boiler and fuel bunker installation in the Energy Centre. The photo of the South elevation of the Energy Centre is shown in Figure 1. The space in the basement in the Energy Centre is L11000mm x W6000mm x H3600mm. At the moment the area is used as a storage space. Figure 1 LDH Energy Centre

Revision B District Heating Feasibility Study 7 2.3 Alpine Aqualand Alpine Aqualand (swimming pool complex) on Joe O'Connell Drive in Frankton in Queenstown is owned by QLDC and operated by Lakes Leisure Limited. The overall site plan is shown in Appendix 2. The building is located beside the Events Centre. Alpine Aqualand was opened in May 2008. Alpine Aqualand is heated by air-to-water heat pumps and a 500 kw LPG boiler. It is proposed that the new centralised wood-chip boiler district heating system would replace the existing LPG boiler. The existing LPG boiler is used to heat two fan coil units (maximum total load 24 kw), the spa pool (maximum total load 100 kw), the domestic hot water (maximum load 100 kw) and it also provides boosted pool heating (maximum load 450 kw). The bulk of the pool heating is provided via the heat pump system. The centralised wood-chip plant can t compete against the existing heat pump system with current electricity rates and thus energy usage via the heat pump system is excluded in this study. There is not a very suitable space on the site for a wood-chip boiler and fuel bunker installation. 2.4 Events Centre The Events Centre on Joe O'Connell Drive in Frankton in Queenstown is owned by QLDC and operated by Lakes Leisure Limited. The overall site plan is shown in Appendix 2. The building is located beside Alpine Aqualand. The Events Centre accommodates the following spaces: Main Auditorium, 1621 m², heated by eight electrical fan convectors and 31 ceiling radiant panel heaters Mezzanine Function Room, 200 m², heated by three gas heaters and six electrical ceiling radiant panel heaters Mezzanine Meeting Room, 57 m², four electrical ceiling radiant panel heaters Ground Floor Function Room, 170 m², eight electrical ceiling radiant panel heaters Bar and kitchen areas

8 District Heating Feasibility Study Revision B The wood energy district heating scheme could be used to provide LTHW heating to some or all of these spaces via new LTHW radiators, fan heaters, etc. There is suitable space on the site for a wood-chip boiler and fuel bunker installation.

Revision B District Heating Feasibility Study 9 3 PEAK HEAT LOADS AND HEAT ENERGY USAGES 3.1 Queenstown Airport Enercon Ltd prepared an energy audit report for Queenstown Airport. In the study, Enercon Ltd estimated that the annual energy usage produced by the diesel boiler is 343 MWh. The peak heat load is estimated to be same as the output of the diesel boiler, that is, 400 kw. It is estimated that in the near future the airport will expand approximately 30%. It is assumed that the LTHW energy usage will increase by the same amount. Thus the total annual LTHW energy usage for the airport would be 446 MWh and the peak heat load is assumed to be the same at 400 kw. 3.2 Lakes District Hospital Spotless Services Ltd prepared a Wood Energy Feasibility Study for LDH. In the study, Spotless Services Ltd estimated that the peak heat load is 130 kw and the annual heating energy usage is 591 MWh, excluding electrically heated DHW and panel heaters. With electrically heated DHW, the total annual heating energy usage is 605 MWh. [1] 3.3 Alpine Aqualand The average electricity loads for Alpine Aqualand over four hourly periods are shown in Figure 2. The total annual electricity usage for this period is 1546 MWh. It is estimated that the heating energy proportion of the total annual usage is 80%, and therefore the annual heating energy usage produced by the heat pump systems is approximately 3700 MWh when the annual average coefficient of performance (COP) of the heat pumps is estimated to be 3.0. The peak heat load is estimated to be 450 kw when the COP of the heat pumps at the peak heat load time is assumed to be 2.0.

10 District Heating Feasibility Study Revision B 350 Alpine Aqualand - Electricity Load 01/08/2009-31/07/2010 [kwh/h] 300 250 200 150 100 50 0 1/08/2009 4:00 10/08/2009 16:00 20/08/2009 4:00 29/08/2009 16:00 8/09/2009 4:00 17/09/2009 16:00 27/09/2009 4:00 6/10/2009 16:00 16/10/2009 4:00 25/10/2009 16:00 4/11/2009 4:00 13/11/2009 16:00 23/11/2009 4:00 2/12/2009 16:00 12/12/2009 4:00 21/12/2009 16:00 31/12/2009 4:00 9/01/2010 16:00 19/01/2010 4:00 28/01/2010 16:00 7/02/2010 4:00 16/02/2010 16:00 26/02/2010 4:00 7/03/2010 16:00 17/03/2010 4:00 26/03/2010 16:00 5/04/2010 4:00 14/04/2010 16:00 24/04/2010 4:00 3/05/2010 16:00 13/05/2010 4:00 22/05/2010 16:00 1/06/2010 4:00 10/06/2010 16:00 20/06/2010 4:00 29/06/2010 16:00 9/07/2010 4:00 18/07/2010 16:00 28/07/2010 4:00 Figure 2 Average electricity loads for Alpine Aqualand The specifications for the LPG and the LPG boiler efficiency are shown in Table 1. The LPG boiler energy production and usage for Alpine Aqualand are shown in Table 2. The peak heat load at 500 kw is estimated to be same as the LPG boiler output. The LPG boiler acts as a back-up for the heat pump system. Table 1 LPG specification and LPG boiler efficiency Description Unit Value Net calorific value of LPG [MJ/kg] 46.1 Density of LPG, typical [kg/l] 0.537 LPG boiler efficiency [%] 90

Revision B District Heating Feasibility Study 11 Table 2 Monthly LPG usage and annual heating energy usage Month and LPG usage Period LPG usage LPG usage year [kg] [days] [MJ] [kwh] Jul-09 7102 31 327,402 90,945 Aug-09 4136 31 190,670 52,964 Sep-09 3667 30 169,049 46,958 Oct-09 4434 31 204,407 56,780 Nov-09 3235 30 149,134 41,426 Dec-09 2164 31 99,760 27,711 Jan-10 2015 31 92,892 25,803 Feb-10 1563 28 72,054 20,015 Mar-10 1903 31 87,728 24,369 Apr-10 3582 30 165,130 45,870 May-10 4340 31 200,074 55,576 Jun-10 6841 30 315,370 87,603 44,982 365 2,073,670 576,020 Annual heating energy usage [MWh] 518 3.4 Events Centre The average electricity loads over four hourly periods for the Events Centre are shown in Figure 3. The total annual electricity usage for this period is 379 MWh. It is estimated that the heating energy proportion of the total annual usage is 80%, with the annual heating energy usage being approximately 300 MWh. The peak heat load is assumed to be 150 kw. The future plans for the Events Centre indicates that the building area would be four times larger with the new extensions. These extensions are not included to this study.

12 District Heating Feasibility Study Revision B 400 Events Centre - Electricity Load 01/08/09-31/07/10 [kwh/h] 350 300 250 200 150 100 50 0 1/08/2009 4:00 9/08/2009 23:59 18/08/2009 20:00 27/08/2009 16:00 5/09/2009 12:00 14/09/2009 8:00 23/09/2009 4:00 1/10/2009 23:59 10/10/2009 20:00 19/10/2009 16:00 28/10/2009 12:00 6/11/2009 8:00 15/11/2009 4:00 23/11/2009 23:59 2/12/2009 20:00 11/12/2009 16:00 20/12/2009 12:00 29/12/2009 8:00 7/01/2010 4:00 15/01/2010 23:59 24/01/2010 20:00 2/02/2010 16:00 11/02/2010 12:00 20/02/2010 8:00 1/03/2010 4:00 9/03/2010 23:59 18/03/2010 20:00 27/03/2010 16:00 5/04/2010 12:00 14/04/2010 8:00 23/04/2010 4:00 1/05/2010 23:59 10/05/2010 20:00 19/05/2010 16:00 28/05/2010 12:00 6/06/2010 8:00 15/06/2010 4:00 23/06/2010 23:59 2/07/2010 20:00 11/07/2010 16:00 20/07/2010 12:00 29/07/2010 8:00 Figure 3 Average electricity loads for Events Centre 3.5 Total Overview The annual energy usages and peak heat loads for the properties in this study are shown in Table 3. The best location for the centralised wood-chip boiler plant is somewhere on the Events Centre land. This is because Alpine Aqualand and the Events Centre are the biggest heat users and there are some areas in which to locate the plant without it being too close to the airport run ways. Table 3 Annual energy usages and peak heat loads for the properties in this study. Property Energy source Heating system Energy usage [MWh/yr] Peak heat load [kw] Queenstown Airport Diesel LTHW boiler 446 400 Lakes District Hospital Electricity Water-to-water heat pumps 605 130 Alpine Aqualand LPG LTHW boiler 518 500 Events Centre Electricity Radiant panel heaters 300 150 Total 1,869 1,180 Total peak load with overlapping diversity (0.85) 1,000