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HomeMy WebLinkAboutTurnagain Arm Tidal Bridge Electric General Plan 2009“Turnagain Arm Tidal Bridge Electric Generation Plan” A Renewable Clean Energy Project For Railbelt Area, About 70% of Alaska’s Electricity Needs Prepared By Little Susitna Construction Company, Inc. In Association With Blue Energy Canada, Inc. 821 N Street, Suite 207 Anchorage, AK 99501 February 6, 2009 INIWOQ DAXJ JAIYD PY UapIsald Dominic S.F. Lee, P.E. q 921 aan. President & CEO ABSTRACT A tidal opportunity in Alaska is at hand to turn into reality. With the new ocean current generation system, the Davis Turbine Power System, Dominic S.F. Lee, P.E. of Little Susitna Construction of Anchorage and Martin Burger of Blue Energy Canada, Inc. of Vancouver, B.C. Canada have teamed up to bring a $2.8 billion project to Anchorage to harness the cheap energy of the world’s fourth highest tide location at Turnagain Arm. Not only does Dominic bring the ; y 9, idea to construct this project, he also brings the financing, engineering team and project management expertise to this project. The result of this project will be the production o(cap td megawatts of peak power with a base daily average of 1,200 megawatts tidal bridge facility . \ oh W which can supply 70% of Alaska’s electricity need, plus a surplus for future industries. The project will produce electricity in the 6 to 8 cents per kilowatt hour range. This is in contrast to the current rates oft33 na Go or iat hour in the railbelt which would cut an average household’s electricity bill by 50 to 75 percent. The Turnagain Arm Tidal Bridge Power Project not only produces emission and fuel free energy, but will have a small ecological footprint, allowing marine life, nutrients, and sediments to travel through the bridge. Another benefit of this project is its allowance of a 15 mile causeway, a two-lane highway across the Turnagain Arm from Anchorage to North Kenai’s Possession Point. This causeway will let those traveling from Anchorage to Kenai enjoy a 30 minute drive rather than a 3 hour drive around the Turnagain Arm and through the Chugach Mountains. It would also save them an average of about 25 gallons of gasoline for each round trip. The use of tidal energy eliminates the seismic risks associated with large hydroelectric dams, a constant danger in Alaska, as well as the CO, emissions associated with natural gas. Best of all, the tide will always be available into the future without further expense of future exploration and drilling, or failure through depleted water sources associated with hydroelectric projects. Tidal power produces far more power than windmill or solar construction without the periods of down time for weather conditions, and the construction cost per kilowatt hour is the cheapest of all types of renewable energy projects. During construction, this project will provide 4,500 jobs for 5 years and 100 jobs after Turnagain Arm Tidal Bridge Electric Generation PlanO Page | Copyright by Dominic S.F. Lee Tidal o tput arly avail a yt 60 % of fi A dus £4 sle-k \ dow construction for operations and maintenance. After all, this is the best renewable, sustainable, clean energy available in Alaska. The Turnagain Arm Tidal Bridge project would effectively establish Alaska as the tidal power technology seat for the Pacific Rim markets. Alaska will be the leader and academic center for renewable energy in the USA. This project will streamline the process of developing similar future projects. This will create an additional 5,000 jobs in Alaska for fabrication and support of these kinds of projects in the Pacific Rim. The Pacific Rim will be a large market that includes, but is not limited to, the Philippines, China, Japan, New Zealand and Korea. It is a very large market that will require a great deal of support on may levels. The time schedule for the total project is estimated to be six years. If this project was started now, in February 2009, by 2015 Alaska’s renewable energy will come on line. What a fantastic opportunity for Alaska. = erro ae or Turnagain Arm Tidal Bridge Electric Generation Plan© Page 2 Copyright by Dominic S.F. Lee EXECUTIVE SUMMARY Introduction Mankind has dreamed for centuries of harnessing the abundant energy of the tides. A number of plants have been built around the world with the oldest (since 1954) being a 240 megawatt tidal power plant in LaRance, France. This French project has commercially proven that tidal projects are a large viable source of renewable, sustainable, clean, and economically cheap energy amongst all the other electricity production plants, such as oil-fired, coal-fired, nuclear, wind, solar, and biomass fuel, even the conventional hydroelectric dam project. Tidal power is Alaska’s largest source of energy and long after the oil and gas fields have been depleted the tides will still be providing clean low cost energy. The State has hundreds of billions in tidal reserves and early tidal resource development action would leverage economic 4 a developments by multiples for the Pacific Rim. (ak? Turnagain Arm has the fourth highest tide in the world,25 feey/(7.6m) between low tide w . and high tide and it is a perfect location to install a tidal bridge to generate electricity according 7 to the world experts in tidal power. The project will be less susceptible to earthquake in the ‘ water than a massive concrete dam at the Susitna River where as recently as 1964 the area experienced one of North America’s strongest earthquakes. It is predicted that the probability of a high magnitude earthquake happening again in this area is significant. Turnagain Arm Tidal Power Concept Turnagain Arm sees the largest tidal range in the United States, with a mean of/30 fee (9.2 m), and the fourth highest in the world, behind Bay of Fundy (11.7m), Ungava Bay (9.75m), and Bristol Channel (9.6m). The ocean’s natural 12-hour 25-minute tidal cycle is close to Turnagain Arm’s natural resonance frequency, which then reinforces the tide similar to water sloshing in a bathtub. Tidal fluctuations in the main body of Cook Inlet, while not as extreme as the shallow and narrow Turnagain Arm, regularly reach 25 feet (7.6m ) and exhibit currents in excess of 5 knots (9.3 km/h) at full tidal flow. This is a significant tidal resource that is situated just south of Anchorage, which is situated as the hub of the Railbelt region. The Railbelt region electrical grid is defined as the areas of six regulated public utilities Turnagain Arm Tidal Bridge Electric Generation Plan© Page 3 Copyright by Dominic S.F. Lee that extend from Fairbanks to Anchorage and the Kenai Peninsula. Sixty-five percent of the Alaskan population lives within the Railbelt Region. The southern portion of the Railbelt region: the Mat-Su Valley, Anchorage, and Kenai Peninsula, are highly dependent on natural gas as the source of electricity and heat, and the majority of the generation is combustion turbine generation. The Cook Inlet gas basin still yields large quantities of natural gas for power generation and space heating, but known reserves are now falling and dropping field operating pressures are causing concern that the region may not be able to depend on lower Cook Inlet for adequate gas supplies in the future. There are several proposals to construct pipelines that could bring Alaskan North slope natural gas into the Railbelt, which could even be integrated into a tidal bridge spanning Anchorage to Fire Island to the northwest corner of the Kenai. Nearly all of the thermal generating capacity from coal fired and natural gas fired power plants in the Railbelt is more than 20 years old, and much of it is more than 30 years old. Due to the shallow, sandy bathymetric conditions a 3 mile 25 foot tall piling supported, two lane causeway will be constructed between the point to the south of the Anchorage International Airport and Fire Island. A 4 mile road along Fire Island will connect to a 8 mile tidal bridge to the northwest of the Kenai Peninsula. This route will shorten the drive to the west coast of the Kenai Peninsula significantly, though the actual benefits of this need to be further studied. For a 2200 MW project, the average daily output will be 1200 MW. In order to properly estimate the output of the tidal bridge, hydrographic resource assessments will need to be carried out. The Turnagain Tidal Bridge Power Project is very environmentally friendly. The structure, the gear boxes, the generators, and the electrical switch gear are all located above water level while the Davis Turbine rotor is located 12 feet below the low tide line. The tidal bridge will have a blockage ratio of approximately 50%, though this will ultimately be determined with the appropriate hydrographic studies. The rotor diameter will be approximately 10.5 meters and turning at 25 rpms. Marine life access for Beluga migration will be designed into the project. Since the turbines are installed 12 feel below low tide line, the winter ice in the Turnagain Arm will float above this level and will not damage the turbines. eae Turnagain Arm Tidal Bridge Electric Generation Plan© Page 4 Copyright by Dominic S.F. Lee TIDAL FENCE OCEAN CUT-AWAY OCEAN FLOOR Turnagain Arm Tidal Bridge Electric Generation Plan© Page 5 Copyright by Dominic S.F. Lee Page 6 Turnagain Arm Tidal Bridge Electric Generation Plan© Copyright by Dominic S.F. Lee The Work Plan 1. Step 1 will be to construct a two-lane highway from Raspberry Road into Kincaid Park, go west to Fire Island, then cross Turnagain Arm with a causeway to North Kenai Possession Point and connect to Kenai’s road system to Kenai/Soldotna. The route would be 15 miles long with 11 miles over the water and would have an approximate $300 million construction cost. 2. Step 2 would entail the construction of a three mile long tidal bridge with the patented Davis Turbine Power system to produce electricity from 0 MW at slack tide to 2200 megawatts at peak power with a base daily average of 1,200 megawatts of net electricity. 3. Step 3 would entail connecting this electricity to Chugach Electric Association’s (CEA) electrical grid at the Raspberry Road substation. From this substation all the electricity needed could be delivered to Southcentral Alaska, the Railbelt and Fairbanks areas. 4. The current Railbelt area electricity generation peak capacity and charge per kilowatt hour is as follows: a CEA 480 megawatts 16¢/Kwh b ML&P 183 megawatts 13¢/Kwh d. Homer 90 megawatts 24¢/Kwh d GVEA 223 megawatts 15¢/Kwh e. Ft. Wainwright, Eielson AFB 20 megawatts N/A Total: 996 megawatts 5. The availability of cheap excess electricity can be used to attract industries to Alaska such as mining, aluminum smelting, zinc smelting, and petrochemical. 6. Connecting Anchorage to North Kenai by a two lane causeway to compare to existing road system will: a. Save time - 30 minutes instead of 3 hours. b. Save fuel - 25 gallons per round trip (average of 15 mpg). c. Cut CO, emissions by 80%. d. Generate income through tolls per car and truck that use the causeway. 7. Utilizing this clean energy will enable the owners to sell their emission credits eA en Turnagain Arm Tidal Bridge Electric Generation Plan© Page 7 Copyright by Dominic S.F. Lee worth millions of dollars for not dumping millions of tons of CO, into the atmosphere. 8. This project will be financed through public offerings of stocks and bonds and private investment firms from Asia. 9. After 20 years in operation, the debt service will be paid off, all the future electricity generated will be free. v Oh The Financial Plan The State of Alaska Department of Transportation should help pay for the 2 lane causeway (est. $300 million), part of the construction cost can be recovered through use tolls and with Federal Highway matching funds and State money. Public financing for 80% of the $2.5 billion cost of the tidal bridge project, can be accomplished by issuing U.S. Department of Energy guaranteed bonds for $2 billion. A private Asian investment firm has expressed a serious interest in investing 20%, or $500 million, into this project in the form of stocks. This firm would then be a 20% owner of the Turnagain Arm Tidal Bridge Hydroelectric Corporation. The other 80% ownership will be held by the general public or any investment company, or perhaps even the State of Alaska. The Organization Little Susitna Construction Company, Inc. (Prime Consultant) is an Architectural, Mechanical, Electrical and Civil/Structural engineering and construction firm operating in Alaska since 1980. Little Susitna is also licensed by the State of Alaska as a general contractor, electrical (inside and outside) contractor, and mechanical contractor. It is an electrical union shop with a signatory agreement with I.B.E.W. Local 1547 for 27 years. Dominic S.F. Lee, P.E., educated both in China and the United States, Dominic Lee came to the United States in 1962 and to Alaska in 1977. An American citizen, he is the founder and CEO of this company. He has earned B.S. and M.S. degrees in Electrical Engineering (Power Systems major), a M.S. in Mechanical and Aerospace Engineering, all from the University of Missouri at Columbia, Missouri. He also did graduate study in arctic, civil, environmental and wave engineering at the University of Alaska, Anchorage. He has worked in a Turnagain Arm Tidal Bridge Electric Generation PlanO Page 8 Copyright by Dominic S.F. Lee the engineering design of electrical, mechanical, and structural renovation of the 70-year-old Bonneville Hydroelectric Dam near Portland, Oregon in 1990 for the Portland District U.S. Army Corps of Engineers. He was the engineer on record and received a citation from the U.S. Army Corps of Engineers for a job well done. Mr. Lee is currently licensed as a professional Mechanical and Electrical Engineer in Alaska and ten other states, WA, OR, HI, CA, MO, TX, LA, MS, AL and GA. In 2005 Mr. Lee was invited to China by the Three Gorges Dam Project engineers as an expert consultant to solve some of the unexpected problems they encountered during the construction phase of the world’s largest hydroelectric construction project ($500 billion construction cost). Mr. Lee is also an experienced project manager. He managed the construction inspection contract for 10 years with the U.S. Coast Guard for their nation-wide capital improvement construction projects totaling $1.5 billion in construction cost. He and his engineers received over 25 citations and commendations by the U.S. Coast Guard’s captains and admirals for projects well done. Mr. Lee is well qualified to manage this project. Blue Energy Canada, Inc.. Blue Energy is a private consulting firm in ocean engineering and construction. Blue Energy is based in Vancouver, British Columbia, Canada. The firm holds the patent for the Davis Turbine Power System, which is proposed to be used in this project in Alaska. The application of the Davis Turbine is to harness the movement of the tides in the world’s oceans, which contains vast reserves of untapped, sustainable energy. With this Canadian proprietary Davis Turbine Power system, this massive new energy resource can be harnessed. The Davis Turbine is a low cost, simple mechanical device. It employs a hydrodynamic lift principle, actually causing the vertical turbine foils to move faster than the speed of the water. The system has multiple vertical axis hydro turbines with straight foils mounted in a duct structure to form a tidal fence. There are large marine structures of reinforced concrete and steel, and can be installed across an estuary with tides exceeding 1 meter or more and a tide velocity exceeding 2 meters per second or more. A typical installation across a 1 Km (.62 mile) crossing can produce more electricity than a large nuclear power plant. Or, in terms of Turnagain Arm Tidal Bridge Electric Generation PlanO Page 9 Copyright by Dominic S.F. Lee oil, about 100,000 barrels per day at a construction cost of less than $1,400 per kilowatt. The tidal bridge power system can be built without the attendant pollution, maintenance, corrosion and radioactive fuel disposal problems, and produce electricity as cheap as 4¢ per kilowatt hour. The tidal power plant mechanical equipment is designed to last for 50 years, the marine caissons for 100 years, and fuel for the system is free since it is generated from the ocean current. While power output is cyclical due to the ebb and flow of tides, sufficient flexibility exists in the ‘ ot ‘Goantry’seurent integrated grid to manage by either pumped storage, or by utilizing existing a natural gas plans for peak demand loads. Blue Energy Canada, Inc. is the world’s leader in tidal bridge hydroelectric power generation. Their proprietary Davis Turbine was proposed for use in the Philippines for a $2.9 billion, 2,200 megawatt tidal current project at Dalupiri Passage. Dalupiri Passage is a four kilometer stretch of water between Dalupiri Island and Samar Island of the Philippines. Blue Energy Canada also recently signed a Joint Venture Memorandum of Understanding (MOU) with India’s Reliance Group out of Mumbai, India. This 100 billion dollar company has asked Blue Energy to provide them and expedited technology pathway to design and build the 22,000 megawatt tidal bridge hydroelectric project in Gujarat in the Bay Kambhat, India. Mr. Barry V. Davis MRAeS, C.Eng, ASTC, and co-founder of Blue Energy Canada, Inc., is the inventor of the Davis Turbine. Mr. Davis has an outstanding record as an aeronautical and hydrodynamics engineer, having played key roles in the development of two Canadian landmark technological achievements, the Avro Arrow and the Bras D’Or. He is the inventory of the Davis Turbine that will be used in the tidal bridge. These products were developed with the help of the Canadian government. Mr. Davis worked with DeHavilland Aircraft Company in Australia and England on the development of military and commercial aircraft, and subsequently with Avro Aircraft Limited in Toronto on development of the Avro Arrow supersonic fighter-bomber, which was recognized as the world’s best when it was completed in 1958. Subsequently, Mr. Davis joined DeHavilland aircraft of Canada as Chief Hydrodynamic Designer for the Bras D’Or high-speed hydrofoil sub-chaser, working on all aspects of the design, particularly the foils, hull and propellers. This state-of-the art craft, again a world leader, Turnagain Arm Tidal Bridge Electric Generation Plan© Page 10 Copyright by Dominic S.F. Lee was successfully built and tested but, like the Arrow, cancelled due to changing strategic and budgetary priorities. After working for a number of years as an independent marine and hydrodynamic consultant, Barry founded Nova Energy Limited to develop and field test Ducted Vertical Axis Hydro Turbines which was supported by the National Research Council of Canada. During the 1980s, successful trials were conducted with several different prototypes in the St. Lawrence River near Cornwall, Ontario; the East Sheet Harbour River, a tidal site in Nova Scotia; and the Gulf Stream off Miami, Florida. These trials, together with a number of independent assessments by different authorities, confirmed the viability of the Davis Turbine. After three-years back in the aircraft industry with Canadair working on the Challenger Business Jet and the Regional Jet, Barry (soon to be joined by Martin Burger) founded Nova Energy Ltd., the predecessor of Blue Energy, to continue development and marketing of the Davis Turbine. Although Mr. Davis passed away in 2004, his legacy of the Davis Turbine is just beginning to revolutionize our world in the capable hands of Martin Burger through Blue Energy. Mr. Martin J. Burger - Founder & Director. From 1990 - 2000 collaborated with Barry Davis to develop and promote the Davis Hydro Turbine, evolving the turbine design from a stand-alone unit to the ocean class tidal bridge. A passionate futurist and conference speaker on sustainability and energy technology solutions, Martin has acted in an advisory capacity in matters of energy sustainability with his vision for a low cost clean energy future. He presented a tidal power technology briefing to President Ramos and his Caucus of the Philippines, was a Keynote Speaker at COFE I & II (Conference of Future Energy), and OPEC I & II. He was selected by Hazel Henderson as a keynote speaker at OPEC I visioning a future after oil, and was asked to sponsor the follow-up OPEC II conference in Vancouver, British Columbia, the home of Blue energy Canada, expanding on OPEC | and briefing delegates on high density sustainable energy opportunities. Interested in beneficial yet stranded technology solutions, Martin has evaluated over 400 innovations in the past 20 years and brings an out-of-the- box perspective, unwavering commitment, engineering / heavy construction expertise, and visionary leadership to Blue Energy. Prior to his role with Blue Energy Martin played key roles in the success of two a ————— Turnagain Arm Tidal Bridge Electric Generation PlanO Page 11 Copyright by Dominic S.F. Lee technology driven companies and in the development of several world-scale construction projects in the petrochemical energy and mining sectors. Mr. Burger is a civil engineering graduate with distinction from Northern Alberta Institute of Technology. From Cree ancestry, he has a high affinity for Mother Earth, and is sensitive to her environmental pain. Mr. Burger believes that it’s important to participate in the future through children. He is a mentor on sustainable energy for the Wonder Tree School. Jon Ellison - CEO. Mr. Ellison received a bachelor degree from the University of Chicago in 1995. He became an investor in the company in 2003, and since then has been involved in the development of the company serving as a general manager through 2007. In an emerging space where experience is almost non-existent, Jon worked closely with the founding CEO on international business developments for two years and has a visceral feel for the technology and resource developments. Jon’s infectious enthusiasm and his performance in directing the company’s advanced rotor design development program at UBC, lead to his promotion as Blue Energy’s new CEO in January 2008. Dr. Sergey Barmichev - Formerly from the Russian Rocket Program, Dr. Barmichev has twenty-three years of experience as a structural mechanics engineer, dynamical modeler, a computer applications support specialist, a project manager of interdisciplinary teams, and an applied mathematics consultant. He received his masters in 1974 at St. Petersburg, Russia developing numerical methods to linearize the form and development of optimal strategies for the equations of motion of navigation of missile platforms. He received his doctorate in 1989 in St. Petersburg with his thesis devoted to Finite Element Analysis methods. Dr. Barmichev was Russia’s key rocket scientist on the Boeing Moscow Sea Launch Rocket Program when he moved to the United States in 1997. He is currently employed by Boeing working as an aerospace engineer on the world’s first all composite airliner, the Boeing Dreamliner. Dr. Barmichev offers a wealth of knowledge concerning materials and finite element analysis, prototype development, and mathematics. Geoff Smith - Geoff Smith has over 40 years of experience in a wide range of energy sector consulting projects and programs. He is President of NexEnergy Inc., a California-based energy consulting firm and small business. Prior to this he was conducting and managing Turnagain Arm Tidal Bridge Electric Generation Plan© Page 12 Copyright by Dominic S.F. Lee consulting work in a variety of areas. He gained a wealth of experience as a senior manager at Bechtel Corporation, directing the technical advisory efforts for a $200 million international energy and environmental program sponsored by USAID in Washington DC, and a $60 million Egyptian Industrial energy efficiency and environmental project for USAID/Cairo. Geoff is greatly experienced in energy planning; power systems planning; including solar, ocean and other renewable technologies; energy technology assessment; energy systems design; conservation and efficiency; greenhouse gas reduction and capture, energy audits; and economic and financial analysis and market studies. Geoff received his B.S. in Mechanical Engineering at McGill University as well as his M.S. in Electrical Engineering at McGill University. He received his M.B.A., Finance at Golden Gate University. He is a Registered Mechanical Engineering in California and a member of the Institute of Electrical and Electronic Engineers (IEEE) and the American Society of Mechanical Engineers (ASME). a Turnagain Arm Tidal Bridge Electric Generation PlanO Page 13 Copyright by Dominic S.F. Lee COST ESTIMATE BY PHASE For the purpose of planning for project costs, the project will be broken down into five (5) phases. Phase 1 - The Preliminary Studies Phase ($10,000,000 funded by Alaska’s Renewable Energy $100 Million Grant Program or special Legislative appropriation. Time Frame: Approx. 1 Year). Phase 1 is required to confirm the Turnagain Arm waterway’s geophysic and ocean current hydrology are suitable and that this would be the best location for this project. 1. Feasibility Study - 30,334 Manhours @ $150/Hr. = $4,550,000 a) Assess the ocean resources parametrics from available marine and tide charts. b) Preliminary siting investigation. c) Assessing hydrographic resources. d) Cross depths. e) Geophysics, bottom conditions. f) Geotechnical Investigation. g) Environmental Impact Assessment h) Examine the existing electric grid proximity and connectivity issues. i) Substation and switch yard. 2. Hydrographic Computer Modeling - 3,334 Manhours @ $150/Hr. = $1,250,000 a) Computer model the tidal regime with data from existing tide gauges. b) Insert a tidal fence and run model for preliminary analysis. c) Calibrate the fence with tidal phasing and run model for 50 years. d) Fine tune the computer model with field data. 3. Perform Field Hydrology Survey & Environmental Study - 4,000 Manhours @ $150/Hr. = $600,000 a) Install tide gauges. b) Measure currents and perform bathymetry study. c) Perform wetland assessment. d) Using field-measured data, calibrate and confirm the hydrographic computer Turnagain Arm Tidal Bridge Electric Generation Plan© Page 14 Copyright by Dominic S.F. Lee modeling. e) Calibrate the fence with tidal phasing and run the model forward for 100 years. 4. Preliminary Tidal Fence Design and Preliminary Engineers Analysis - 5,334 Manhours @ $150/Hr. = $800,000 a) Thin Shell Concrete Caisson Design. b) Foundation Design. c) Size Electrical Generators and drive Line components. d) Rotor Design. e) Ancillary Equipment Design. 5. 3-D Numeric Hydrodynamic Computer Modeling of Tidal Fence with Performance Analysis - 4,667 Manhours @ $150/Hr. = $700,000 6. Small Scale Flume Tank Model to Verify Tidal Fence Design - 5,000 Manhours @ $150/Hr. = $750,000 7. Constructability Study - 5,334 Manhours @ $150/Hr. = $800,000 a) Seabed composition. b) Navigational Clearance. c) Import large rock to fill the foundation to support the turbines. d) Bathymetry and hydrographic survey. e) Piling installation. f) Turbine module installation. g) Causeway constructability. h) Connection to existing power grid. 8. Cost Estimation - 2,334 Manhours @ $150/Hr. = $350,000 a) System engineering design. b) Environmental Impact Statements c) Federal regulations. d) State regulations. e) Right-of-Way. f) Land purchase. Turnagain Arm Tidal Bridge Electric Generation Plan© Page 15 Copyright by Dominic S.F. Lee 10. g) Financing. h) Construction cost. i) Project management cost. j) Operation and Maintenance Costs. Risk Management and Risk Ranking the Project - 666.67 Manhours @ $150/Hr. = $100,000 a) Insurance. b) Earthquake effects. Public relations to obtain commitment from utilities in Railbelt and commitment from State of Alaska and Federal Governments - 666.67 Manhours @ $150/hr. = $100,000 Phase 2 - Design & Development Phase ($100 Million Funded By Public Offering. Time Frame: 1 Year) 1. ana wW PF YN Engineering design of tidal bridge causeway, substations and connection to existing electrical grid. Site Survey. Ocean Current Tide Survey. Ice, and Winter Operation Study. Environmental Impact Statement. Obtain Right-of-Way Permits. 3-D numeric hydrodynamic computer modeling of the tidal bridge performance. Phase 3 - Construction Document Phase ($100 Million Funded By Public Offering. Time Frame: 1 Year) 1. Final Engineering Design. 2 Final Construction Cost Estimate. 3. Sign Final Commitment Documents Buy/Sell Electricity With Utility Companies In The Railbelt. 4. Sign Funding Source Final Agreement. Turnagain Arm Tidal Bridge Electric Generation PlanO Page 16 Copyright by Dominic S.F. Lee 5. Complete Land Acquisition. Phase 4 - Construction Phase ($2.6 Billion. Time Frame: 4 Years) i Advertise for bids for turnkey construction for: a) Causeway. b) Tidal Bridge Hydroelectric Plant. c) Sub-station and Grid Connection. d) Operation. 2. Start Up, Commissioning Equipment. Phase 5 - Operation & Maintenance Phase (Funded by Operation Income) wwwwwwewwewew~ ~ - - - 1. Management. 2. Operation and Maintenance. oe Turnagain Arm Tidal Bridge Electric Generation Plan© Page 17 Copyright by Dominic S.F. Lee wee } Total FINANCING PLAN Causeway (Design and Construction) $300 Million Preliminary Study (Phase 1) $10 Million Engineering Design (Design Development and Construction Document) $200 Million Construction of Tidal Bridge and Substation, Intertie W/Existing Grid $2.20 Billion Miscellaneous Finance Costs, Public Relations, Headquarters, Staffing, Construction Management, Permits Legal, Professional Fees $100 Million $2.810 Billion Public Finance $2.5 Billion 20% ($0.5 Billion) by Investment Firm in Asia. 80% ($2.0 Billion) by Public Offing of U.S. DOE-guaranteed bonds. Finance Breakdown 1. Total Phase 1 $10 Million Preliminary Study by grant from State of Alaska under renewable energy program or special legislative appropriation. $300 Million Causeway between Kenai and Anchorage by the State of Alaska Department of Transportation (costs can be recovered by levying tolls on cars and trucks). The State can also issue bonds for this causeway project, and use matching funds from the Federal Highway Department. $2.2 Billion Tidal Bridge Hydroelectric Plant, substation, tie-in to electrical grid system. $100 Million Miscellaneous: Financing costs, accounting, legal, public relations, construction management, permits. $200 Million Engineering, Design, Environmental Impact Statement. $2.810 Billion Turnagain Arm Tidal Bridge Electric Generation PlanO Page 18 Copyright by Dominic S.F. Lee CONCLUSION The new Turnagain Arm Tidal Bridge Corporation will operate as a publically owned company. Turnagain Arm Tidal Bridge $2.5 billion debt serviced by selling electricity to all railbelt electrical utility companies, new industries, and selling emission credits. The State of Alaska is responsible for the causeway’s $300 million debt, which can be serviced by collecting users fees, emission credits, and Federal Highway matching funds. The state will get 70% of its electricity from this renewable energy project by 2015. This is 10 years ahead of the Governor’s plan to have 50% of Alaska’s energy generated by alternative sources by 2025. After 20 years, the debt service will be paid off and all the electricity generated after 2035 will be free, renewable, clean energy. There is NO FUEL required. The merits of the Turnagain Tidal Bridge Project are self evident. What is less evident is that timely action on this sustainable power initiative can provide a whole new forward looking economic sector in that the Pacific rim is anxiously waiting for the scale up of this technology. The principals at Blue Energy Canada Inc. are very amenable to the Alaskan lifestyle and are open to locating their Pacific Operations here in Alaska. Turnagain Arm Tidal Bridge Electric Generation Plan© Page 19 Copyright by Dominic S.F. Lee