Local wood chips to heat the hotel in a tourist area
Topic of the practice
Good Practice Information
Hotel Lagorai is a great accommodation plant for summer and winter tourism, located into Fiemme Valley, Autonomous Province of Trento, Italy. It has about 50 rooms, sauna, swimming pool and meeting room and from 2004 it's heated with a boiler fuelled by wood chips, produced from local forestry company or sawmills that work with wood from local forests. The wood chip boiler has replaced the previously installed, supplied with diesel fuel. The boiler has a 400 kW thermal size and it was purchased with an initial investment of €300,000 (€200,000 € boiler and €100,000 for adaptation of rooms and storage). Wood chip is purchased at a price of 30-32 €/MWh, comapred to diesel that has a cost of 75-80 €/MWh. Annual consumption of wood chips is about 700-800 bulk cubic meter (170-200 tons) with a average water content of 40%. The annual management cost (supply of fuel and maintenance) has been reduced by about €40,000. Considering the initial investment and annual management of plant, it has paid of in 8-9 years, with a interest rate of 5%. NPV of investment at 20th year is calculated in €250,000.
Evidence of success
Profitable investment in economic terms. Low cost of fuel supply with local wood chips
Price of heat energy is lower compared to diesel fuel. By using wood chips hotel owners have a savings cost and a new factor of marketing.
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