ASSIGNMENT BIOMASS HEATING PROJECT

01 TWO SCHOOLS / HEREFORDSHIRE, UNITED KINGDOM

DESCRIPTION OF ASSIGNMENT
A primary school is being built close to an existing secondary school. The county council wants to
evaluate the feasibility of combining the schools’ heating systems and installing a wood-fired boiler
for the two. The biomass boiler in the new primary school would be linked with the oil-fired boiler in
the existing high school by a hot water loop. You have been hired by the county council to determine
whether this is financially viable.

SITE INFORMATION
The schools are located in the United Kingdom, about 20 km south of Birmingham. The nearest
weather data is from London.
The primary school, intended for 210 students, will have a floor area of 2,800 m2. It will be 200 m
from a secondary school of 6,200 m2 floor area. The secondary school has 650 students. It was built
in 1960 and is presently heated by a 750 kW oil-fired boiler with a medium-temperature hot water
distribution system.
Only a limited amount of wood is available but the community is considering planting a short
rotation energy forest.

FINANCIAL INFORMATION
Typical financial figures for the analysis are provided by the council: inflation at 2%, debt ratio of
80%, debt interest rate of 8%, discount rate of 9% and a debt term of 10 years. The heating system is
assumed to last 25 years. The average price of electricity is $0.12/kWh and oil is delivered for
$0.60/L. The cost of energy is expected to escalate at the same rate as inflation. The price of wood is
estimated at $25/tonne.
Prepare a RETScreen study, documenting any assumptions that you are required to make, and report
on the significant conclusions from this analysis.