HomeMy WebLinkAboutKotzebue Waste Heat Correspondence 1987
Kotzebue Electric Association, Inc.
THIRTY MILES NORTH OF THE ARCTIC CIRCLE
P.0. BOX 44
Kotzebue, Alaska 99752 Phone (907) 442-3492
RECEIVE}
MAY 2.98 1987
ALASKA POWER
Alaska Power Authority AUTHORITY
P. O. Box 190869
Anchorage, Alaska, 99519
May 22, 1987
Attention : Robert E. LeResche
Executive Director
Subject : Technical Assistance, Community Waste Heat
Recovery
Dear Mr. LeResche:
Kotzebue Electric Cooperative hereby requests technical
assistance for the engineering tasks associated with the
rehabilitation and potential expansion of our existing
waste heat recovery system to provide heat to the local
schools and other users.
The system was constructed during 1984 with the intent of
providing waste heat for the city’s circulating water
system. Since then we have experienced a number of
operational problems, which have to some extent diminished
the benefits originally anticipated from the system.
We have been made aware of the Alaska Power Authority’s
capabilities in this field, and we would appreciate
assistance as outlined above.
If any additional information is required of if you would
like to discuss this request with me, please do not
hesitate to contact me at 442 3491. |
cD
CORRESPO!DS
» ACTION:
Very truly your
Sook hie
Frank Sheldon
General Manager}.
DATE REC'D:
cc: Mr. Steve Whi
Arctic School District.
Kotzebue Electric Association, Inc.
THIRTY MILES NORTH OF THE ARCTIC CIRCLE
P.0. BOX 44
Kotzebue, Alaska 99752 Phone (907) 442-3492
William Hensley, State Senator
P.O. Box V
Juneau, Alaska 99811
January 22, 1988
Dear Willie:
Kotzebue Electric Association, as part of it’s long term
planning process, has decided that we need to look at the
potential of coal as a long term resource. In order to
make the decision to use coal, we will need to determine
the price level at which coal becomes competitive with
fuel oil, what type of technology is available for small
scale coal generation, the economic potential of the two
known coal sites, and the environmental impact of using
coal. We are asking your assistance to see if the State
of Alaska can provide funding to see if coal will work for
electric generation in Kotzebue. The State has
participated in several studies that have looked at coal
as a local resource, but has not put in place a project
that would allow a coal field in our area to be put in
production. In reviewing the studies that have been
conducted it is apparent that coal.could be economic today
if there were one or two major users. IKEA has been
xploring the use of coal, and feel that we are in the
position of being one of the users if the economics of
scale are there.
Some of the long term benefits that would be available are
as follows:
1. Stabilized energy costs for the long term.
2. Local economic development and jobs for
area residents.
a. on-site mine development
b. plant construction
c. transportation
3. Utilization of area resources.
4. Reduced energy costs to the state as more
users come on line, (Red Dog, Nome
utilities, Adak Naval Station),through
economics of scale.
Source of waste heat, to heat public
buildings.
Use of coal to heat village homes. on Qa
You will find enclosed the outline for the information
that we feel is needed to make the decision to use coal,
and KEA Board Resolution #637. We hope that you may be
able to help us secure funding through the Alaska Power
Authority, DCRA, or other sources that could help with
this project. We would like to thank you for any ~
assistance you are able to provide.
Sincerely, |
adc ,
Kotzebue Electric. Association,
Board of Directors
Brad Reeve, President
COALFDG
Kotzebue Electric Association, Ine.
THIRTY MILES NORTH OF THE ARCTIC CIRCLE
P.O. BOX 44
Kotzebue, Alaska 99752 Phone (907) 442-3492
August 12, 1987
BOARD RESOLUTION # 637
WHEREAS: Coal fired generation equipment is becoming
economically feasible and coal is becoming available
and Kotzebue Electric Association’s aging plant
requires replacement by 1998 to 2000 and
THEREFORE BE IT RESOLVED: Management is requested to pursue a
feasibility study for a 1998 coal
fired unit.
KOTZEBUE ELECTRIC ASSOCIATION, INC.
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Apes we : Ce +e
BRAD REEVE, PRESIDENT
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ROBERT CALVILLO, SECRETARY/TREASURER
COAL CONVERSION STRATEGY FOR
KOTZEBUE ELECTRIC ASSOCIATION - AN EVALUATION
TASK 1 - LOAD CHARACTERISTICS & CAPACITY REQUIREMENTS
In cooperation with Kotzebue Electric Association, (hEA)
management determine the current capacity ‘to meet demand
for both peak and off-peak period and seasons. Project the future demand for electric generation based on historical demographic patterns and probabilistic
treatment of Kotzebue’s industrial potential in mining and oil.
In addition to projecting electricity for illumination, include an evaluation of potential demand for thermal uses
such as district heating for institutional facilities.
TASK 2 - FUEL
Review possible regional coal sources including Deadfall Syncline (Pt. Lay) and Chicago Creek and compare the costs of mining, transporting and storing the fuel. Coal resources will in all cases be compared to continued use of fuel oil.
TASK 3 - SITE EVALUATION
Identify possible Locations ror plant expansion and/or replacement and the impact ct those choices on related factors such as fuel transportation and transmission line costs, cooling water availability, district heating options and geotechnic or environmental considerations.
TASK 4 - PLANT AND EQUIPMENT SYSTEMS
Perform a preliminary evaluation of appropriate coal
.utilization technologies and utilization modes (i.e., power generation, cogeneration or stand-alone district
heating, ete). These results will be presented to NEA representatives and project personnel. The best candidate technologies and utilization modes will be advanced for more in-depth evaluation, including a conceptual system
design which meets the energy needs of the community.
TASK 5 - ESTIMATE COST OF CONVERSION
Estimate budgetary total installed cost (exclusive of
finance costs) for the selected energy system(s).
Compute unit generating and heating costs for life of
project; and given a consumer selling price, determine
COAL CONVERSION STRATEGY
Page 2 of 2 J “+ return on equity, debt coverage, ete. Since the production level of the coal at the mine greatly affects the economy of coal, the cost of energy to Kotzebue will be determined at various coal production levels based on anticipated demand for coal by other regional users.
TASK 6 - FINANCES
Determine possible sources of funding for the capital investment and analyze the economics in terms of the benefit/cost ratios and net present values at various
discount rates and the rate of return to the community.
TASK + - EVALUATE ENVIRONMENTAL EFFECTS
identify and define environmental effects of the project. Assess the need, feasibility and cost of offsetting any adverse effects. This step will include input from all regulatory bodies and concerned groups. Ensure compliance with all applicable laws. Incorporate local concerns into the project, so as te ensure support for the project.
TASK 8 - SOCIOECONOMIC IMPACT
Develop a detailed description of all project effects on the economy of the region, the community of Kotzebue, and the individuals living in the community. Consider both the immediate and the long term.
Assess the receptivity of the community to all phases of the project, and consider the influence this may have on project success.
Assess the economic development potential in the utilization of local resources as fuel sources. Calculate the number, type and longevity of jobs to be generated and the capacity of the Local labor foree to fill the positions.
dantiary
MEMORANDUM
fram Citv of Kotzebue. (See attachments
action meeded from us?
estimate seem far aut of proportion for the value
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RECOMMENDATION:
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a
CITY OF KOTZEBUL
P.O. BOX 46
KOTZEBUE, ALASKA 99752
907-442-3401 _-"REGEIVED
"IOV 1 4 1983
ae TOD LLTAORITY November 7, 1983
Mr. Ray Benish
Executive Director
Alaska Power Authority
334 W. Sth Avenue
Anchorage, Alaska 99501
Subject: City of Kotzebue Heat Exchange System
Grant Request
Dear Mr. Benish:
The City of ‘Kotzebue has in past years provided freeze protection
for its water distribution system through use of waste heat the
Kotzebue Electric Association (KEA) Power Plant. KEA received
Rural Electric Association (REA) funding for the installation of
a new generator, but no provisions were made or funding secured
to’ provide for waste heat recovery on the new generator.
The City of Kotzebue, in an effort to protect their water dis-
tribution system by use of a waste heat recovery system, re~
quested the design of a system to be bid as an additive bid item
to the generator installation contract.
In June of this year KEA received bids for installation of the
L
new generator and the heat exchange system to provide the city's
water system with continued freeze protection. The bid for the
generator was accepted and installation is underway with com-
pletion scheduled for December 1983. The low bid amount of
$378,000 for the heat exchange system was more than double the
amount of the Engineer's estimate and funds were not available
from the City to install the system. Consequently, the heat
exchanger system bid was rejected and the design put on the
shelf.
In addition to the heat exchange system, it will be necessary to
install a conveyance system between the City water treatment
plant and KEA as well as minor modifications to the water treat-
ment plant interior plumbing at an estimated cost of $462,000.
The attached sheet provides more detailed information regarding
estimated construction costs.
“GATEWAY TO NORTHWEST ALASKA”
+ Mr. Ray Benish
Alaska Power Authority
November 7, 1983
Page 2 a we As per phone conversation between Jerry Dunn of QUADRA Engineer-
ing, Inc., and Mr. Jerry Larsen of your office, the City of
Kotzebue requests consideration from the Alaska Power Authority
for appropriation of funds to assist the City with installation
of the necessary heat exchangers and conveyance systems. Plans
for the heat exchange system are complete and ready for con-
struction at this time and plans for the conveyance line will be
complete for bid within two weeks of availability of funding.
The City of Kotzebue requests your review of this request for a
grant in the amount of $840,000 to assist the City in providing
continued freeze protection for the water distribution system.
Should you require additional information regarding this request,
please contact Mr. Jerry Dunn at QUADRA Engineering, Inc., at
276-3770.
Please be informed that a request for funding will also be made
to our local state legislators and any assistance you may give us
in procuring the funding would be greatly appreciated, as this
project is critical in maintaining the integrity of our water
distribution system.
Sincerely,
John Ward
Director of Public Works
Attachment
ESTIMATED COST
CITY OF KOTZEBUE
HEAT EXCHANGE SYSTEM
Heat Exchange System
Bids received 6/30/83:
Wick Construction $572,000
Alaska International Construction $378,000
Engineer's Estimate (IECO) $186,000
Estimate of funds required $378,000
Conveyance Systeni
Materials $ 60,550
Freight (Seattle to Kotzebue) 5,550
Installation 277,500
$343,600
+25% Eng. & Contingency 85,900
$429,500
Estimate of funds required $430,000
Water Treatment Plant Connection
Installation $ 1,500
+25% Eng. & Contingency 375
$ 1,875
Estimate of funds required $ 2,000
Summation:
Heat Exchange System $378,000
Conveyance System 430,000
Water Treatment Piant Connection 2,000
$810,000
Add: Mobilization & Demobilization 30,000
$840,000
Grant Amount Request $840,000