Fuel Oil News
Burning wood chips instead of fuel oil to heat its high school’near Armagh, Pa., reports Trib Total Media.
The project would be one among other energy-saving proposals that are set to save United School District more than enough money to pay for those proposed $4.4 million in improvements, according to a report by potential contractor Schneider Electric.
Schneider representative David Kramer projects that the district would realize total savings of about $5.4 million over 15 years, once the equipment upgrades recommended by his company are in place.
‘You’re looking at a $2 million positive cash flow by the time 20 years rolls around,” Kramer said as he presented his company’s recommendations at a school board workshop meeting Tuesday.
Kramer’s company is looking to back up those projections with cash ‘ offering to cut United a check to cover any annual shortfall in expected savings under a proposed performance contract the firm is seeking with the district.
In a scenario presented by Kramer, the district’s savings would equal the payments needed to finance the $4.4 million project cost over 15 years, after which the savings would have a positive impact on the district’s cash flow.
According to Kramer, much of the savings would be realized through the lower cost of wood chips as a fuel source compared to the fuel oil United currently uses to run its boiler system. Those savings, he said, based on projections of current fuel costs, would be close to $300,000 in the first year alone.
Read on at the Trib Live.