HomeMy WebLinkAboutAlaska Cogeneration System, Inc. Response to Proposal Clean Coal Plant 1996ALASKA COGENERATION SYSTEMS, INC.
RESPONSE TO PROPOSAL
ALASKA ENERGY NEEDS
INTRODUCTION
Alaska has many rural communities which are currently using diesel fuel-fired generators to
produce electricity. The delivered diesel fuel is very expensive and poses substantial environmental
risks. The cost of diesel fuel delivered to these communities ranges between $5 and $10/MM Btu.
The State of Alaska, through DCRA, has implemented a policy to replace diesel fired generation in
rural communities with coal fired generation. The University of Alaska, Fairbanks, estimates coal
from the Evans Jones mine which is located in the Matanuska Valley, could be delivered to the larger
coastal communities at approximately $2.50/MM Btu. The coal could be used to fire 3-18MW
cogeneration plants, providing a realistic and cost effective solution to meet long term electrical
requirements of communities, dispose of municipal waste in an environmentally acceptable manner,
while supplying large amounts of waste heat which could be distributed throughout the communities
via a community district heating system. In the larger communities, waste heat captured from the
cogeneration plant could displace 2-3 million gallons of fuel oil presently used for spacing heating
purposes, resulting in overall plant efficiencies in excess of 60 percent. Furthermore, for the first time
in many years, major Alaskan utilities must begin the process of adding and replacing a combined
total of approximately 300 MW’s of generation capacity. Much of this new and replacement capacity
could be provided by coal fired cogeneration plants which would qualify as Qualifying Facilities
(QF’s) under the Public Utilities Regulatory Policies Act (PURPA).
Recognizing the need and opportunity to develop and construct coal fired cogeneration plants
in Alaska, a group of three exceptionally qualified professionals with varied backgrounds in energy
and environmental fields including: power plant design, electrical utility transmission and distribution
design, environmental management and permitting, power plant operations and maintenance, thermal
energy (waste heat) recovery system design and law, form Alaska Cogeneration Systems, Inc.
(ACSJ) to pursue development of Alaska cogeneration opportunities. The background of the
principals in ACSI are as follows:
Name/Qualifications Title
Frank J. Bettine, P.E., Esq. President
Professional Electrical Engineer and General Manager
Attorney at Law with extensive Alaska
utility experience.
750 West Second Ave., Suite 205 Telephone (907) 274-4546, Anchorage, AK 99501 Fax/Tel. (907) 279 -1491
1.0
William D. Steigers, Jr. Ph.D. Vice President
Professional Environmental Manager Environmental Manager
with extensive Alaska permitting and clean
coal technology experience.
Michael W. Oswald Vice President
Mechanical Engineer with extensive Engineering Manager
experience in developing, constructing and
operating thermal power plants.
OVERVIEW
In response to Alaska Power & Telephone’s (AP&T) Request for Proposal, Alaska
Cogeneration Systems, Inc. (ACSI) is prepared to offer a carefully designed and fully integrated coal
fired cogeneration power plant that will not only provide lower cost electric power, but it will also
provide lower cost thermal energy to the community. The basic provisions of ACSI's offer is as
follows:
1.1
1.2
1.3
1.4
ACSI will construct a small clean coal fired cogeneration power plant with an installed
capacity of 3.5 MW. Assuming a 2.5% per year load growth, the 3.5 megawatts of capacity
should be adequate to meet the baseload, intermediate, and peaking needs through the year
2025 without supplemental diesel capacity. A conceptual design layout for a cogeneration
plant housing a single coal fired boiler and a single 3.5 MW turbine can be found in Appendix
C).
ACSI will construct the cogeneration plant on a site identified by AP&T. ACSI will provide
information and the support necessary to obtain air quality and environmental permits.
ACSI is proposing to design, supply, construct, commission and permit the cogeneration
plant. Optionally, ACSI would be ready to operate and maintain the plant. ACSI intends to
contract with a major contractor experienced in constructing similar projects in Alaska, such
as Haskell Construction, Co. to assist in project construction. Haskell Construction, Co. is
the contractor that was responsible for erecting an 11 MW coal plant at the OTH-B site near
Gulkana. The ACSI design-build team would be composed of all the necessary expertise to
successfully design, construct commission and permit the cogeneration plant. ACSI
contemplates the project would be built under an EPC (Engineering, Procurement, Construct)
contract arrangement.
Studies conducted by ACSI have indicated that small coal fired cogeneration plants when
coupled with district heating systems, can efficiently generate electric power in the range of
10-14 cents per kwh, depending on the price and quality of the coal and financing alternatives.
2.2
2.3
DISTINCT BENEFITS BEING OFFERED
IN ACSI'S PROPOSED COGENERATION
PLANT FOR AP&T
1. Lower cost power with practical and cost effective generation.
2: Lower cost space heating for businesses, housing and others.
3 Reduction in air emission pollutants exhausted into air shed.
4. Provides and option for the area’s solid waste and industrial waste disposal.
5. Reduced environmental liability from fuel oil handling and storage.
6. Short term economic benefit from project construction activities.
7. Long term benefit from project investments, operations and local employment.
8. Stimulation of Tok’s businesses and industry through the availability of stabilized
power costs and lower heating costs.
DESCRIPTION OF PROPOSED COGENERATION PROJECT
ACSI is proposing to construct its offered cogeneration plant on a site identified by AP&T.
ACSI presumes this plant would be constructed on non-permafrost, non-frost susceptible
soils. If it is necessary to construct the plant on permafrost soils, passive and active
refrigeration measures may need to be implemented to prevent deterioration of the underlying
permafrost. For example, a small absorption refrigeration unit, power from waste heat could
be installed to provide foundation refrigeration.
ACSI's proposed project will be designed and constructed utilizing a clean coal combustion
technology with stringent environmental emission controls that will meet or exceed the latest
clean air act requirements. The air emissions from the cogeneration plant will be less than that
currently emitted from the AP&T’s existing diesel plants. The cogeneration plant will further
reduce emissions in the airshed by displacing fuel oil presently used for spacing and process
heating.
ACSI's proposed plant will consist of one
For additional cost, a secondary oil fired boiler can be installed to
provide a reliable source of steam during those times the primary coal boiler is out-of-service
for maintenance or forced outages.
2.4
2.5
2.6
2.7
2.8
3.0
Se
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4.0
4.1
In addition to consuming the coal with the properties identified in the request for proposal,
the fluidized bed boiler would also be capable of consuming Tok's combustible solid wastes
and waste oils. These combustible solid wastes and waste oils would provide a clean
supplemental fuel input stream to the boiler and would reduce coal input requirements and
hence energy cost to the consumers.
As an important feature of our proposal, ACSI is offering to design and construct a district
heating system for Tok as part of the construction effort. The district heating system would
integrate closely with cogeneration plant operations and the heating needs of the community.
Once in operation, the more waste heat that is consumed to displace heating oil, the more
money saved by businesses and residents, and the lower the bus bar cost of power.
ACSI would enlist the professional engineering services of Mr. Neil Hawthorne to work
closely with the Tok community, ACSI's engineers and Summit Paving to establish a realistic
preliminary design with a phased construction plan. Both Mr. Hawthorne and Summit Paving
have extensive knowledge and experience in constructing utility systems through out Alaska.
ACSI intends to provide its own construction management as well as its own quality
assurance and quality control needs as may be necessary to insure that the project is
constructed in accordance with the engineer's design and will perform as expected.
ACSI would also work closely with the AP&T personnel throughout the construction process
so that these personnel would gain invaluable insight on the design of the plant. Plant
operators would also undergo extensive operations and maintenance training during the
plant's startup and testing period whereby they would be ready and qualified to fill operator
positions when the plant goes on line.
The expected operational life of cogeneration is thirty (30) years or more.
ON LINE DATE
ACSI's estimates the plant could be on line within eighteen (18) months of contract award and
notice to proceed.
If selected as the successful proposer, ACSI is prepared to immediately begin design and
permitting work on the project.
RESOURCE RELIABILITY
ACSI's cogeneration plant will consist of one (1) fluidized bed coal fired boiler capable of
providing a reliable source of steam to drive one (1) 3.5 MW steam turbine generator with
a net output of 3.4 MWs. Reliability is estimated at 92% for a single coal fired boiler system.
With both a primary coal boiler and backup oil boiler the plant can deliver 3.4 MWs output
at an estimated 99.5% reliability.
4.2 Assuming a 2.5% per year load growth, the 3.4 megawatts of capacity should be adequate
to meet the area’s baseload, intermediate, and peaking needs through the year 2025 without
supplemental diesel capacity.
5.0 LEGAL AND ENVIRONMENTAL
5.1. ACSI's proposed cogeneration power plant will easily comply with all applicable Federal,
State, and Local laws and regulations.
5.2. ACSI's proposed plant will be permitted through the State's Department of Environmental
Conservation in strict compliance with Federal clean air regulations. ACSI's plant will emit
far less emission pollutants to air shed that what is currently being emitted from the utility’s
diesel generators.
5.3 Permits and Regulatory Status
Alaska Cogeneration Systems, Inc. has actively investigated permit requirements for coal fired
cogeneration plants throughout Alaska. These investigations have included discussions with the
Alaska Department of Environmental Conservation (ADEC) Air Quality Division, ADEC Solid Waste
Division, and Alaska Department of Natural Resources (ADNR) Division of Lands. As a result of
ACSI's investigations, we have developed a list of potential permits which could be required to
construct and operate the facility. These potential permits are presented in Table 1.
A description of each potential permit follows.
National Pollutant Discharge Elimination System (NPDES) General Stormwater Permits are required
of a facility during construction and operation to control and mitigate transport of pollutants off-site
through discharges of storm water and site drainage.
An NPDES General Stormwater Permit for construction activities is automatically issued by EPA
following receipt of a simple notification of intent to discharge. A Storm Water Pollution Prevention
Plan is required by the construction NPDES General Stormwater Permit to be prepared and in place
prior to start of construction activities.
A Spill Prevention Control and Countermeasure (SPCC) Plan would need to be developed if new
construction entails more than 1,320 gallons of aboveground storage and/or more than 40,000 gallons
of below ground storage of petroleum products. .
Depending upon approach and departure flight paths of aircraft from nearby runways, and the height
of the stack for the cogeneration project, a Notice of Proposed Construction may need to be filed
with the Federal Aviation Administration (FAA) for a determination of no hazard to air traffic.
LIST OF POTENTIAL ENVIRONMENTAL
PERMITS AND APPROVALS NEEDED TO
CONSTRUCT AND OPERATE THE CORDOVA
TABLE 1.
Permit/Approval
FEDERAL
National Pollutant Discharge Elimination
System General Stormwater Permit
Storm Water Pollution Prevention Plan
Spill Prevention Control & Countermeasure
Plan
Federal Aviation Administration (FAA)
Notice of Proposed Construction
Division of Governmental Coordination
(DGC)
Coastal Zone Management questionnaire
Alaska Department of Environmental
Conservation (ADEC)
General Wastewater Disposal Permit
Permit to Operate
Solid Waste Disposal Permit
COGENERATION PROJECT
U.S. Environmental Protection Agency (EPA)
Discharge of site storm water runoff
during construction and operation
Required by NPDES General Stormwater
Permit prior to construction
Oil Spill plan for prevention and control
during operation
Determination of no hazard to air traffic for
stack and buildings
For projects located within the Coastal Zone
Management Area
Discharge of excavation wastewater during
construction
State air permit for construction and operation
of power plant
Disposal of ash po
Depending upon the groundwater levels and quantities anticipated to be encountered during
construction, a General Wastewater Disposal Permit may be required from ADEC for discharges of
wastewater from excavations for building foundations footings, and other subsurface excavations.
ACSI has conducted several discussions with representatives of ADEC's Air Quality Division
regarding the particulars of air quality permitting of coal fired cogeneration facilities in Alaska. The
Clean Air Act, as amended and as administered by ADEC, requires review and approval of the
"construction" (including "reconstruction") or "modification" of all sources of air pollution to ensure
that air quality in attainment areas is not deteriorated beyond allowable limits for any pollutants
regulated by the Act. The proposed facility will be a fossil-fuel fired steam generation plant but
should not exceed 50 MMBtu/hour heat input, and, therefore, should not come under formal review
by the Air Quality Program administered by ADEC.
The size of the cogeneration facility (3.5 MW) places it within Subpart Dc - Standards of
Performance for Small Industrial - Commercial - Institutional Steam Generating Units (40 CFR).
A facility within this classification must have a maximum design heat input capacity of 29 MW (100
MMBtu/hour) or less, but greater than or equal to 2.9 MW (10 MMBtu/hour). The proposed coal-
and oil-fired boilers have a maximum combined design heat input capacity of which places the facility
within the Subpart De classification.
Because the facility would have a heat input capacity less than or equal to 22 MW (75 MMBtu/hr),
the sulfur dioxide (SO, ) emission limits in 40 CFR 60.42c for minimum removal levels of SO, would
not apply. Applicable emission limits in 40 CFR 60.43c for particulate matter would apply, however,
and will be met with a baghouse. There are no nitrogen oxide (NO, ) emission limits for steam
generating facilities within Subpart Dc.
The proposed facility will also not be subject to PSD review and New Source Performance Standards
specified in 40 CFR Subpart Da since it will be rated less than 250 MMBtu/hour.
Prevention of Significant Deterioration (PSD) Class II increment modeling and National Ambient Air
Quality Standards (NAAQS) modeling will be used to establish that the proposed facility does not
violate PSD increments or NAAQS for regulated air pollutants. Meteorological data from the local
area will be used to support the application for the air quality permit. An analysis of impacts to air
quality related values (AQRVs), including an analysis for visibility impacts, will also be performed
as part of the application process to ADEC.
ACSI's preliminary discussion with permitting agencies, combined with our extensive experience in
permitting coal-fired power projects in the State of Alaska, allow us to conclude that the proposed
Cogeneration Project can be successfully permitted within a reasonable time frame, and that there are
no permitting difficulties which would impede or prevent the successful permitting of this project.
6.0 INSURANCE AND BONDING REQUIREMENTS
6.1 ACSI, if selected as the successful offerer under this RFP, will provide certain insurance
issued by underwriters acceptable to the AP&T, in a form acceptable to the AP&T, and
having limits of liability acceptable to the AP&T.
6.2 Such insurance shall include but not be limited to workers' compensation, employers' liability,
general liability, automotive liability, and, if appropriate, builder's risk, watercraft and
aviation, and professional liability insurance. The contractor assisting ACSI in erecting the
project, will post the necessary performance bonds.
7.0 QUALIFICATIONS AND EXPERIENCE
Representative coal fired cogeneration projects in Alaska:
ACSI is preparing to construct an 18 megawatt coal fired cogeneration plant in Valdez,
Alaska. ACSI’s Valdez proposed cogeneration plant has been recognized by the Federal Energy
Regulatory Commission (FERC) as a Qualifying Facility (QF) as defined in the Public Utilities
Regulatory Polices Act. (PURPA). ACSI is presently awaiting a ruling from the Alaska Public
Utilities Commission (APUC) to clear the way for the start of construction. An important feature of
this plant is the construction of a district waste heating system for Valdez, which when fully
operational would displace approximately 2.5 million gallons of fuel oil now being used for space
heating purposes. ACSI will own and operate the plant and sell electric power and energy directly
to Copper Valley Electric Association (CVEA). Energy from this plant would be sold to CVEA for
approximately 10 cents per kwh. See Appendix A for a more detail concerning ACSI’s Valdez
project.
ACSI submitted a proposal to Cordova Electric Cooperative to construct a 6.5 megawatt coal
plant to meet the future electric power and energy and space heating needs of the community. ACSI
coal fired cogeneration plant competed head to head against two proposed hydroelectric alternatives.
Although Cordova Electric ultimately chose to develop one of the hydroelectric alternatives, ACSI
proposal demonstrated that small coal fired plants could generate power in the range of 12 cents per
kwh. See Appendix A for a more detail concerning ACSI’s Cordova Proposal.
A copy of ACSI’s business license and copies of ACSI’s Officers and Board of Directors
business cards can be found in Appendix B.
Resumes of ACSI’s Officers and Board of Directors
Frank J. Bettine, P.E., ESQ.
EDUCATION
J.D. (1991), College of Law, University of Idaho
M.S. (1978), Electrical Engineering, University of Oklahoma
B.S. (1970) Electrical Engineering, Oklahoma State University
REGISTRATION
Professional Engineer - Alaska and Idaho
Attorney at Law - Alaska
SUMMARY OF QUALIFICATIONS
Mr. Bettine is an Attorney and professional engineer with over eighteen years of design and
management experience in the Alaska electric utility industry. He has worked as both a private
consultant and as a utility employee. As President and General Manager of Alaska Cogeneration
Systems, Inc., Mr. Bettine in addition to his management responsibilities, provides business and
proposal development, technical design, contract document preparation/review, and contract
negotiations. Mr. Bettine is a trained mediator and arbitrator and provides Alternative Dispute
Resolution Services, as a partner in the firm of Bettine & Associates, to private parties, federal and
state agencies.
As a previous part-time employee at the engineering consulting firm of Dryden and LaRue, Inc., Mr.
Bettine served as project manager and design engineer for a substantial portion of a 14 million dollar
Static Var Compensation project, which consisted of two static var compensation stations,
constructed for the Alaska Energy Authority. He also provided design engineering and served as
project manager for the design phase of Golden Valley Electric Associations, 30 mile long Fort Knox,
138 kV transmission line.
As Manager of Engineering with Copper Valley Electric Association he supervised the engineering
and power production departments and was responsible for the planning and design of system
improvements and replacements for hydroelectric, diesel, oil fired turbine generation, and high voltage
transmission facilities. He was employed at Chugach Electric Association for several years as a
substation and transmission design engineer.
During the period he was employed by International Engineering Company, formerly R.W.
Retherford Associates, his responsibilities included design of high voltage transmission and substation
facilities, small diesel plants in rural Alaska and system studies. His original load flow studies
demonstrated the feasibility of constructing the Anchorage/Fairbanks Intertie. He was also responsible
for the design and construction of an experimental 40 kV Single Wire Ground Return Transmission
System installed in western Alaska between Bethel and the village of Napakiak which remains in
satisfactory operation today. This project received an Engineering Excellence Award from the
Consulting Engineer's Association of California in 1982.
In addition to an extensive engineering work history, Mr. Bettine also has extensive work and edu-
cational experience in interpreting State and Federal Statutes in Administrative, Energy,
Environmental and Contract Law.
William D. Steigers, Jr., P.hD
EDUCATION
Ph.D. Wildlife and Range Resources, 1981, Brigham Young University, Utah State University
M.S. Wildlife and Range Resources, 1978, Brigham Young University
B.S. Wildlife and Range Resources, 1976, University of Idaho, Lewis Clark State College
LICENSES AND REGISTRATIONS
Certified Wildlife Biologist - The Wildlife Society (1984)
SUMMARY OF QUALIFICATIONS
Since 1982, Dr. Steigers has been a Project Manager for environmental services and responsible for
both managing technical field studies and preparing impact assessments and mitigation plans for
wildlife, fisheries, botanical resources, wetlands, air quality, visibility, cultural resources,
socioeconomic, recreational resources, land use, and visual resources throughout the United States,
including Alaska and Hawaii. Project supervisory responsibilities also include management of
personnel in various engineering disciplines. He has managed large development-related
environmental projects and environmental subcontractors. Dr. Steigers has prepared numerous
environmental documents leading to federal Environmental Impact Statements (EIS) and federal and
state permit applications for large and small development projects.
Dr. Steigers has developed expertise in the successful permitting of fossil-fueled generating facilities.
His notable achievement in Alaska is the provision of environmental project management services and
the successful permitting of the coal-fired Healy Clean Coal Project with the Alaska Industrial
Development and Export Authority. Similar services have been provided for gas- and diesel-fired
combustion turbines and combined-cycle steam units. On these projects, his responsibilities included
the management, development, and implementation of the environmental program to permit
construction of the facilities; coordination of resource agency meetings; identification and
implementation of environmental field studies to support development of federal and state EIS's and
permits; development of project negotiating positions, mitigation options, and implementation of
negotiations with agencies; and monitoring and compliance with federal and state permits.
10
Dr. Steigers' also has FERC licensing experience in Alaska, including managing and providing
technical support to the environmental programs for licensing of the Bradley Lake Hydroelectric
Project and the Susitna Hydroelectric Project.
Dr. Steigers has over 18 years of technical experience. Most of that experience has been related to
permitting and environmental impact assessments for fossil-fueled generating facilities, including air
quality and visibility analysis, and hydroelectric development projects in Alaska. Dr. Steigers is Vice
President and Environmental Manager of Alaska Cogeneration Systems, Inc. (ACSI) of Anchorage,
Alaska. In this capacity, he is responsible for formulating conceptual approaches and implementing
the environmental programs for new energy development projects undertaken by the ACSI. Dr.
Steigers is also President of Steigers Corporation, and environmental and engineering consulting firm
specializing in environmental project management and energy development. As President, he
acquires, manages, and participates in all phases of the environmental and related engineering work
of the firm.
Michael W. Oswald
EDUCATION
B.S. (1973), Mechanical Engineering, Montana State University
M.B.A. Courser (1976), Eastern Washington State University
SUMMARY OF QUALIFICATIONS
Mr. Oswald has over 20 years of experience in the Design, Manufacturing, Production, Construction,
and the Operation and Maintenance of Fluidized bed Boiler systems and related steam and power
plant equipment. Mr. Oswald was involved in the development of many of the features that have
become standard for the industry in the design of fluidized bed combustion systems utilized for the
combustion of various solid fuels.
Mr. Oswald is the President of Precision Energy Service, Inc. which provides Operational and
Maintenance services as well as consulting to energy plant owners and developers. These services
are provide to major corporations such as DuPont, as well as independent project developers.
Precision Energy Services is proficient in the design, construction and operation and maintenance of
solid fuel fired energy systems and boilers. In providing O&M services the company has first hand
experience as to the performance of equipment and systems in actual operating conditions.
Prior to his employment with Precision Energy Services he was vice-president of a major fluidized
bed design and manufacturing firm, JWP Energy Products (EPI), where he served in various technical
and management positions. Over the course of his employment with EPI the company and its licenses
placed into service over 65 commercial fluidized bed combustion and boiler systems. Many of the
fluidized bed combustion and boiler systems were provided as part of a complete turn-key plant which
11
include the various necessary sub-systems such as fuel processing and storage, power generation, and
emission controls..
Mr. Oswald is also a Vice-President and Engineering Manager for Alaska Cogeneration Systems, Inc.
(ACSD of Anchorage, Alaska. In this capacity he is responsible for developing the conceptual and
preliminary mechanical design of cogeneration facilities undertaken by ACSI and will be responsible
for overseeing the detailed design performed by selected engineering firms. He has served on other
Board of Directors including Northern Circle Construction.
He has attended numerous seminars on management, technical subjects and operation and
maintenance of power plants. Mr. Oswald has written numerous publications on the subject of solid
fuel combustion, fuel handling and the application of fluidized bed systems to industrial and utility
plants.
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SECTION 2.1 - VALDEZ COGENERATION PROJECT
2.1.1 - INTRODUCTION
ACSI is prepared to construct a thoughtfully conceived alternative power generation resource
option that represents a fully integrated energy resource strategy, capable of meeting power
requirements of CVEA and the heating and solid waste disposal needs of Valdez and its primary
industries for the next thirty years. ACSI's integrated resource strategy will not only provide lower
cost electric power, but it will also provide lower cost thermal energy to the community and will
provide a means to alleviate Valdez's burgeoning solid waste disposal problem. To accomplish this
goal ACSI is prepared to construct a small clean coal fired cogeneration power plant with an installed
capacity of 18 megawatts, which is adequate capacity to meet CVEA's baseload, intermediate load,
load growth, and peaking needs for the next 30 years. ACSI's cogeneration plant has been recognized
by the Federal Energy Commission as a Qualifying Facility (QF) as defined in the Public Utilities
Regulatory Polices Act (PURPA).
ACSI's proposed cogeneration plant is being offered with it's entire thirty (30) year life cycle
fuel input requirements being fully committed to the project. The life cycle fuel requirements for the
cogeneration project will come from either the Evan Jones and/or Castle Mountain coal mines in the
Matanuska Valley where processed coal will be loaded into fully enclosed metal shipping containers
and transported via truck, railroad, and barge to Valdez. Once delivered to the plant, the coal will
be burned in a clean coal combustion boiler to produce the thermal heat energy requirements to
generate Valdez's power and heat energy needs. After the coal has been delivered to the power plant
the empty containers will be available to transport the plant's boiler ash as well as Valdez's solid
wastes back to an Alaska Department of Environmental Conservation (ADEC) approved regional
solid waste disposal site.
Valdez's combustible solid wastes, which makes up approximately 50% of the municipal waste
volume, would provide a clean supplemental fuel input stream to the boiler that would reduce coal
input requirements and hence energy cost to Valdez's consumers. The balance of Valdez's non-
hazardous solid wastes, which would include the non-combustible materials, junk cars, scrap metal,
glass, and the like, could easily be transported, along with our boiler ash, back to regional solid waste
disposal site in the Matanuska Valley for disposal and/or to Anchorage recycling companies.
As an important feature of our proposal, ACSI is offering to design and construct a municipal
district heating system for Valdez that would integrate closely with ACSI's cogeneration plant
operations and the heating needs of the community. ACSI has enlisted the professional engineering
services of FVB District Heating, Inc. to work closely with ACSI's and Summit Paving to establish
a realistic preliminary design with a phased construction plan. FVB District Heating, Inc. is a
recognized world leader in the development, design, construction, and operation of district heating
systems and utilities for northern climates. Summit Paving has extensive knowledge and experience
in constructing utility systems through out Alaska.
operation of district heating systems and utilities for northern climates. Summit Paving has extensive
knowledge and experience in constructing utility systems through out Alaska.
ACSI has computed the cost Estimated Cost of Power Graph of electrical energy for the Valdez Medium-High Load, Med. Fuel
Coal Project based on the economic Zero Interest State Loan
assumptions and parameters con- ,
tained in the Copper Valley Intertie Feasibility Stud ibyR.W
Beck. The results of the calculations
are graphically illustrated in Graphs
1 and 2. The graphs compare the
cost of power for the Valdez Coal
Project with Allison Lake and the
Intertie for a zero interest State loan,
and at an interest rate of six percent,
for the Med-High Load, Med-Fuel _| {3 Valdez Coal Project Ej Allison Lake Cintertie
scenario contained in the feasibility
study. The costs of power for
Allison Lake and the Intertie were obtained from the Intertie Feasibility study. The graphs clearly
show the Valdez Coal Plant to be the "least-cost" option for supplying the future power needs of
CVEA. A comparison of Graphs 1 and 2, also reveals the Valdez Coal Plant can provide lower cost
power at a six percent financing rate than the Intertie can provide with a zero interest State loan.
ACSI has also approached the City of Valdez, several Valdez area fish processors, the U.S.
Coast Guard, the Department of Transportation and others to confirm the need and willingness of
large energy consumers to purchase the
| ject! h a hot Estimated Cost of Power copes | Semone asin Puexey Cougs a Medium-High Load, Med. Fuel water and/or steam district heating system
Six Percent Interest Loan on a long term contractual basis. In fact,
the potential Valdez area district heating
load is more than adequate to ensure that
es the Project will operate at an optimum
5 overall plant efficiency rate approaching
10.0 60-65% net thermal efficiency, which is
é approximately twice the typical efficiency
5.0 of other electrical generating plants in the
State.
0.0
3 Valdez Coal Project Ej Allison Lake Clntertie ]
ACSI has identified several distinct economic advantages that our Valdez Coal Project offers
over the other identified resource options, as follows:
Economic Advantages Associated with the
Valdez Clean Coal Project
1. Power generation capacity located at CVEA's major load center, thereby reducing
losses and increasing reliability.
2. Reliance on an abundant clean Alaska energy resource, not subject to oil and/or gas
price escalations, with excellent port facilities capable of economically
receiving/handling coal in several bulk commodity forms.
Bs Apparent “least-cost" option for CVEA consumers.
4. A clean and low cost Alaska energy resource, COAL, committed to supplying the life
cycle needs of the project.
5: Provides highest degree of reliability to CVEA consumers with close integration with
existing Solomon Gulch Hydroelectric Project and CVEA's Valdez Diesel Plant.
6. Provides twelve (12) long term plant operator jobs in Valdez.
ae Offers significant energy savings as well as reduced environmental risk for large waste heat
consumers. Waste heat sales are estimated to save Valdez waste heat consumers more than
5 million dollars over a 20 year period.
8. Lower cost steam heat for the canneries with options for absorption refrigeration to further
reduce their energy costs.
9. Provides a means to alleviate Valdez's burgeoning solid waste disposal problem.
10. Reduced environmental liability from fuel oil handling and storage.
11. Short term economic benefit from project construction activities.
12. Provides twelve (12) long term mining jobs in Matanuska Valley
2.1.2 - PROJECT DESCRIPTION
As presently contemplated, the Project consists of a coal-fired co-generation power plant with
close operational integration with the local Utilities’ existing hydro electric and diesel power
generation capacity. The Project will be located on private property adjacent to the Utilities' existing
Diesel Generation Plant in Valdez, Alaska. The Project will be developed as a Qualifying Facility (QF)
under federal regulation and as a primary power source for the Copper Valley Electric Association.
ACSI hopes to obtain the right to construct and operate the Project through a Qualifying Facility
(QF) status and negotiation process with the Utility and the Alaska Public Utility Commission.
Primary components of the Project are a
. Both the boilers and the turbine-
generators have been purchased used and will be scheduled for extensive overhauling and
reconditioning. The primary coal-fired boiler is a Babcock and Wilcox Company utility unit recently
salvaged from the SEI/OTH-B Project and presently stored in Anchorage. The boiler was previously
owned by the Chugach Electric Association, Inc and was decommissioned in 1986 after 26 years of
operation using coal and natural gas as fuel. The boiler has been dismantled, and will be refurbished,
transported and reassembled at the Project site. A state of the art fluidized bed combustion system
as well as new convection tubes will be installed to insure that the boiler restoration will meet or
exceed new boiler standards. The primary boiler is rated at 100,000 pounds of steam per hour at 850
pounds per square inch ("psi") and 900 degrees fahrenheit °F). A second 100,000 Ib/hr oil fired boiler
will be installed to supplement the coal fired boiler as well as provide standby capacity when the
primary coal fired boiler is out of service.
The air pollution control system that will be installed will be recognized as best available
contract technology (BACT) and will include the fluidized bed combustion system as well as a
limestone injection system. The Project would also to be equipped with a pulse-jet baghouse for
collection of sulfur dioxide ("SOx") captured by the limestone injection process and for collection of
particulate emissions which are in the form of fly ash, sorbent salts and uncombusted material.
The steam turbine-generators to be included in the Project were manufactured by General
Electric and the Elliot Company and are rated 6 and 18 megawatts respectively. These turbine
generators will be refurbished and will be made like new prior to installation at the Project site. These
multi-stage turbines also have several extraction points capable of supplying our district and
feedwater heating needs each with rated throttle steam conditions being the same as for the boiler outlet condition, 850 psi and 900°F. The turbine-generator packages including the condensers, lube
oil systems and overhead maintenance crane that are presently installed at the SE/OTH-B Project
near Glennallen and/or stored in Anchorage. The available steam supply provided by operating both
boilers at full capacity will drive the turbine-generators to produce approximately 22 megawatts net
output. The minimum power production level from one boiler and the smaller turbine generator is
in the range of 1 - 1.5 megawatts below which the overall efficiency of the steam generation system
may become to low to operate the system economically.
Coal is to be delivered to the Project site via shipping containers which will be unloaded into
a hopper with a vibrating feeder. The feeder will distribute the coal onto a conveyor which will direct
the coal to either the storage silo or the coal storage bin. The storage silo will store, in total,
approximately 4,000 tons of coal estimated to be approximately 30 days of fuel supply under average
operating conditions.
An ash handling system of a pneumatic dry type will be included. This system will include a
mechanical exhauster, bottom ash hopper and all necessary pipes, fittings, valves and appurtenances.
An ash storage silo will be included that will store 90 tons of ash which will be sufficient to handle
approximately 7-10 days of ash production at the Project site. Annual ash production will be
approximately 10 percent of the total coal consumed. Ash will be handled and stored dry and
subsequently removed and transported to the locally permitted land fill or back to the coal mine for
disposal, in the same containers that delivered the coal.
Water supply for the Project is currently anticipated to be provided from existing City wells
located near the Project site in Valdez, Alaska. The Valdez city water system is capable of supplying
300 gallons per minute (gpm) or more of high quality water which in total is more than three times
the estimated maximum plant water requirement of 100 gpm. Water would be treated and
demineralized prior to use in the steam generators. The exhaust steam from the turbine would be
condensed in a large surface condenser. Water supply to the condenser would be cooled by a three-
cell cooling tower. The cooling tower would be designed with consideration for the cold
temperatures of the Project location. The relatively large Valdez district heating load will significantly
reduce the plant's make up water requirements by reducing cooling tower plume/ evaporation.
Process and sanitary wastewater, estimated to be generated at a rate of approximately 10,000
gallons per day will be pretreated, cooled and discharged directly into the Valdez Waste Water
System. The Project also expects to utilize Valdez's existing waste water utility easement corridor
to supply approximately 300,000 mmbtu/year in district heating to the local schools, hospitals,
municipal buildings, state and federal facilities and commercial businesses.
The Project's 24 megawatts worth of installed generator capacity will be steam limited to
about 11 megawatts from the primary boiler and would rely on the standby oil fired boiler to be
capable of driving another 11 megawatts worth of peaking capacity or for use when the primary coal-
fired steam boiler was unavailable because of maintenance or forced outage.
The Project will be configured with the coal and/or oil fired boilers driving two (2) steam
turbine-generators, an integrated power distribution/control system with the Utilities' existing hydro
electric and diesel generation capacity. As presently envisioned, power will be transmitted at 12,470
volts about a '/, mile to a single delivery point. The power transmission system would incorporate
one (1) overhead feeder to the Utilities' existing Diesel Generator Plant substation. The Project's
integrated power distribution and control system with the Utilities' diesel plant might also include a
second lower voltage distribution feeder to service the Project's standby power needs (4.16KV or 480V).
Initially the electric load requirement that the Utility is expected to need from our coal fired
plant is nominally 10 megawatts of firm capacity during the Utilities Winter demand period of
October through May (8 months) and will remain available to the Utility year round. Average load
requirements for our plant are expected to be in the range of 5 to 10 megawatts over an average eight
month period. However, the peak power requirements for the Utility are expected to fluctuate
between 10 and 13 megawatts. As the utility load increased the operating period of the plant will
increase from 8 months to 12 months. It is also anticipated that the coal plant will be base loaded
during the months of September - May, with the hydro providing peaking during June - August, the
hydro would be base loaded with the coal plant supplying peaking demand. The nature of the
Utilities' load should allow the Project to integrate and load share in a complimentary manner with
the Utilities' existing hydro electric and diesel generation capacity. ACSI will provide an extensive
technical analysis of the Project's overall design to insure the operational reliability of the system and
its beneficial integration with the Utilities' overall power generation scheme. This analysis, will be
performed according to standards established by the Institute of Electrical and Electronics Engineers,
will evaluate the likelihood of total system failure based on the probability of failure of individual
system components. An additional analysis that will be conducted is a computerized dynamic
simulation to verify the capability of the Project to meet the Utilities' power requirements for various
anticipated operating levels. Both the reliability and the dynamic simulation analysis will be
conducted for the proposed Project by an independent engineering consultant.
The Project will be owned and operated by Alaska Cogeneration Systems Inc. (ACSI).
Wieland & Lindgren (the "Design Engineer") will provide engineering services relating to final design
of the Project.
The Design Engineer has provided technical assistance to ACSI during the preliminary design
phase of the Project and as a result is aware of the Project and its intended purpose.
Construction, construction management, testing and startup of the Project will be performed
by Haskell Corporation (the "Contractor"). Quality assurance, control and associated compliance
documentation will be provided in house by ACSI. Specialty subcontractors will be retained directly
by the Project to perform various Project related functions such as subgrade foundation design,
permit application and boiler and turbine-generator refurbishment. A qualified soils engineer will be
retained by the Project to provide geotechnical evaluation of the Project site and to design the Project
subgrade foundation as well as to assist the Design Engineer with the design and routing of the
District Heating System.
2.1.3 - PERMITS, LICENSES AND APPROVALS
Various permits and authorizations have been identified by ACSI and the Project's
environmental consultants as necessary for the construction and operation of the Project. Principal
among these are the Air Quality Permit which will be issued by the Alaska Department of
Environmental Conservation. ACSI intends to utilize, amendment and relocate the plant's existing air
quality permit that was issued to Slana Energy, Inc., for the Over the Horizon Backscatter Project,
for use in this Project.
Various other permits will be needed prior to Project operation. These permits will include
wastewater discharge and possibly water use permits. ACSI will have the responsibility of obtaining
any applicable building permits related to construction of the Project.
2.1.4 - PROJECT OPERATION
The Project will be operated directly by Alaska Cogeneration Systems Inc. (ACSI). ACSI
will be responsible for operating, maintaining and repairing the Project, hiring and training personnel,
purchasing replacement equipment, supplies and fuel, and keeping account of all business transaction
associated with the Project. ACSI's duties will also include responsibility for adherence to all
applicable laws, regulations and contractual obligations.
Presently, Alaska Cogeneration Systems Inc. (ACSI) anticipates the employment of twelve
(12) full-time employees in total to manage, operate and maintain the Project. The operations staff
will live in the local community.
A control room operator and a plant operator will be on duty at all times while one mechanic
and/or electrician will work a full week to perform maintenance and repairs as necessary. In addition
to its own staff ACSI will establish contracts with various maintenance service suppliers to provide
periodic maintenance of the boilers and steam turbine-generators.
Coal fuel will be supplied to the Project form the Evan Jones Coal Mine located near Sutton,
Alaska. Coal consumption is estimated to be about 30,000 tons per year. Coal will be transported
primarily by rail and barge to the Project during a eight (8) month period each year, (September
through May), in shipping containers capable of transporting 25 tons each. At the Project, a
conveyor system will transport coal from the delivery trucks to the storage silo which will feed
directly to the boilers day bin. The storage silo will be designed to hold 4,000 tons of coal in total,
equivalent to approximately 30 days of coal supply.
Ash will be removed by the plant operator, stored temporarily on-site and transported back
to the mine for disposal in the returning shipping containers. Ash removal from the boiler is expected
to require about two hours of work time for the plant operators in each 24 hour period. The Project
will produce about 2,400 tons of ash per year.
Delivery of electric power to the Utility will be accomplished through an overhead
transmission system. The Utility will be asked to maintain the transmission system. Disturbances to
the transmission system are considered remote because of the Project's close proximity to the existing
Valdez Diesel Plant and associated substation.
The coal-fired steam generation system will serve as the primary source of electrical
generation by the Project. ACSI anticipates a shut-down of each boiler and each steam turbine during
the summer months during a thirty(30) day period each year for inspection, repairs and preventative
maintenance. Extended shut-downs lasting thirty to sixty(30-60) days for each turbine generator
maintenance would be scheduled approximately every five years during the summer months.
2.1.5 - The Contemplated CVEA Contract
The Project will produce electric power to be sold to the Utility pursuant to a negotiated
contract between Alaska Cogeneration Systems Inc. (ACSI) and Copper Valley Electric Association
(CVEA). The contemplated CVEA Contract will specify among other things, the responsibilities of
ACSI and the Utility, the period of power delivery, the amount to be paid for power, the general
magnitude and characteristics of the Utility load requirement to be placed on the Project, and the
liquidated damages to be paid by the Project for interruptions in power deliveries to the Utility.
During the Operation Period the Project would be required to make at least 10 megawatts of
electric generation capacity available to the Utility at all times during the Utilities' Winter demand
period. The Project's anticipated load is estimated to average between 5 to 10 megawatts during the
Winter demand period. However, should it become evident that the Project's total load demand might
exceed 10 megawatts ACSI would then immediately fire the second oil fired boiler to raise its net
spinning generation capacity to at least a 22 megawatts.
The contemplated Utility Contract would require the Project to provide electrical service to
a single delivery point at 12,470 volts. The Utility will be responsible for metering power deliveries
and will also be responsible for controlling line voltage and frequency level. Alaska Cogeneration
Systems Inc. (ACSI) will be responsible for compliance with applicable environmental and other
regulations during construction and operation.
Payment for power purchased by the Utility might be made based on two components. A
"Capacity Charge", intended to recover the costs of developing the Project and providing firm
generation capacity to the Utility, that would remain constant throughout the Operations Period and
the "Energy Charge", intended to recover the costs of fuel as well as operations and maintenance, that
would be adjusted based on changes in the consumer price index.
2.1.6 - CONCLUSION
Our Project utilizing private financing could easily provide the long term energy needs of
Copper Valley Electric at a cost which is well below their current firm avoided cost. However, if our
Project is funded or partially funded by the State, anywhere in the same price range as contemplated
with the CVEA/MEA intertie, than our associated power production costs would fall well below that
which is even possible from the proposed intertie. If the State would be willing to loan ACSI 35
million dollars at zero interest to construct and operate our Valdez Clean Coal Project we could then
provide the long term power needs of the Utility for less than 8.0 cents per kilowatt hour.
SECTION 3.1 - CORDOVA COGENERATION PROJECT
3.1.1 - INTRODUCTION
ACSI is offering to construct a small clean coal fired cogeneration power plant with an
installed capacity of 6.5 megawatts at either one of the two sites that ACSI has identified as suitable
for such a plant. The 6.5 megawatts of capacity is adequate to meet CEC's baseload, intermediate
load, load growth, and peaking needs through the year 2015 without supplemental hydroelectric or
diesel generation and when integrated with existing units at CEC's ORCA power plant, the
cogeneration power plant will be capable of meeting the needs of CEC through the year 2025.
The preferred site identified by ACSI as suitable for its cogeneration plant is the area
immediately adjacent to CEC's existing ORCA diesel plant. When constructing at this site ACSI will
offer to assume the ORCA plant property lease from the Cordova and/or CEC and if acceptable to
CEC, ACSI would integrate the CEC's existing ORCA diesel power plant with the cogeneration plant
to provide standby capacity. ACSI is fully prepared to construct its cogeneration plant at the ORCA
site location if it is the successful proposer and the ORCA site is selected as the preferred site.
ACSI has, however, identified a secondary site which is also suitable for constructing its
cogeneration plant if the ORCA plant site is unavailable. This site is located in an area on the North
Fill Dock near North Pacific Processor's Cannery. Environmental risk associated with constructing
a coal fired fossil fuel facility on the North Fill Dock would be de-minimis since there are virtually no
environmental liabilities connected with handling, transportation and storing coal in fully enclosed
metal shipping containers. As part of its construction project, ACSI would be willing to relocate the
two diesel generators from CEC's ORCA plant to our proposed North Fill Dock cogeneration facility
where they would be integrated with the cogeneration plant to provide standby capacity.
ACSI's proposed cogeneration plant is being offered with it's entire thirty (30) year life
cycle fuel input requirements being fully committed to the project. The life cycle fuel requirements
for the cogeneration project will come from either the Evan Jones and/or Castle Mountain coal mines
in the Matanuska Valley where processed coal will be loaded into fully enclosed metal shipping
containers and transported via truck, railroad, and barge to Cordova. Once delivered to the plant,
the coal will be burned in a clean coal combustion boiler to produce the thermal heat energy
requirements to generate Cordova's power and heat energy needs. After the coal has been
delivered to the power plant the empty containers will be available to transport the plant's boiler ash
as well as Cordova's solid wastes back to an Alaska Department of Environmental Conservation
(ADEC) approved regional solid waste disposal site. The ash and solid waste will be used to reclaim
large open strip pits left unreclaimed from past mining operations.
ACSI is offering Cordova a thoughtfully conceived alternative power generation resource
option that represents a fully integrated energy resource strategy, capable of meeting the heating,
power and solid waste disposal needs of the community and its primary industries for the next thirty
years. Figure 1 graphically illustrates the savings associated with the cogeneration plant when compared to continuing diesel generation by CEC under Base Line and Most Probable Conditions
(MPC).' Busbar Energy costs from the cogeneration plant are shown in Figure 2 for the financing
rates of 0%, and 6.5% along with
energy cost of CEC's diesel plant CUMULATIVE PRESENT VALUE ANNUAL
for Base Line and MPC. Tables 1 COST OF POWER IN 1994 DOLLARS
compares and summarizes the pee CMELCAD CRON TE
Present Value in 1994 dollars of
ACSI's Cogeneration Plant, at an
interest rate of 6.5%, with contin-
ued CEC diesel generation for
MPC and the Base Case load
growth scenario. ACSI believes
MPC represents the most realistic
economic scenario for CEC, while
an interest rate of 6.5% represents
a realistic financing rate for the
cogeneration plant. The 6.5% fi-
nancing rate would be achieved
through a blend of state Power Figure 1
Project Loan Funds and private
financing. Figure 1 and Table 1
clearly demonstrate the savings to the community of Cordova associated with a fully integrated
energy resource strategy is astounding. As shown in Table | and Figure 1, savings in electrical
power costs to Cordova consumers in 1994 dollars, over the 30 year operational life of the
cogeneration plant, is calculated at $25,000,000 which represents a saving of 40 percent over the cost
of continued CEC diesel generation. ACSI estimates that Cordova consumers would also save and
additional $5,000,000 (1994 dollars) in heating and solid waste disposal costs during this 30 year
period as a direct result of ACSI's energy resource strategy. Busbar costs illustrated in Figure 2
clearly show that the cogeneration plant will provide lower cost electric power to CEC and Cordova
consumers. An examination of Figure 2 will reveal that if ACSI could obtain zero percent or minimal
rate financing to construct its cogeneration plant, such as available through the Power Project Loan
Fund administered by the Department of Community and Regional Affairs (DCRA), busbar cost
could approach eight cents per kWh.
1 Most Probable Conditions or Case (MPC) assumes diesel fuel will escalate at a rate of 1.5% above inflation
and a five million dollar capital investment by CEC in 1997 for upgrading the ORCA plant to provide 5 megawatts of
firm capacity and to bring the plant into compliance with air quality standards.
2
ACSI is willing to assist Cordova in siting a municipal waste processing facility near the
cogeneration plant at which combustible solid wastes could be shredded and transported over to the
cogeneration plant to be blended with the coal input stream. Cordova's combustible solid wastes,
which makes up approximately 50% of the municipal waste volume, would provide a clean
supplemental fuel input stream to the boiler that would reduce coal input requirements and hence
energy cost to Cordova's consumers. The balance of Cordova's non-hazardous solid wastes, which
would include the non-combustible materials, junk cars, scrap metal, glass, and the like, could easily
be transported, along with our boiler ash, back to regional solid waste disposal site in the Matanuska
Valley for disposal and/or to Anchorage recycling companies.
CUMULATED PRESENT VALUE IN 1994 DOLLARS ($1000)
BASE CASE LOAD GROWTH
TABLE 1
1995-2025 (30 Years) pd Acs Cogen.Ptant | CEC Diesel (MPC)
O & M Costs $3,397 $24,889 $21,492
$17,883 $28,356 $10,473
Capacity Costs $12,382 $5,847 ($6,535)
Total Life Cycle Cost of $33,661 $59,092 $25,431
Power
As an important feature of
our proposal, ACSI is offering to BUSBAR COST COMPARISON design and construct a municipal BASE CASE LOAD GROWTH district heating system for
Cordova that would integrate
‘closely with ACSI's cogeneration
plant operations and the heating
needs of the community. ACSI
has enlisted the professional engi-
neering services of FVB District
Heating, Inc. and Mr. Neil
Hawthome to work closely with
the Cordova, ACSI's engineers
and Summit Paving to establish a
~+ CEC Diesel, Most Probable Case realistic preliminary design with a fa ce tied eeaone phased construction plan. FVB
District Heating, Inc. is a recog-
Figure 2
nized world leader in the development, design, construction, and operation of district heating systems
and utilities for northern climates. Summit Paving with their extensive knowledge and experience in
constructing utility systems through out Alaska, including Cordova, has agreed to join ACSI as a co-
developer of the municipal district heating system.
Although ACSI is prepared to finance, design and construct a municipal district heating
system for Cordova, we at ACSI believe that a district heating system could better serve the
community as a Cordova or cooperative financed, owned and operated municipal utility service rather
than a privately owned enterprise. The Cordova or cooperative could purchase waste heat from
ACSI's cogeneration plant at wholesale rates for distribution and sale at retail rates to various
consumers throughout the community. Once in operation as more waste heat is used to displace
heating oil, Cordova businesses and residents will realize greater savings while lowering the busbar
cost of power to CEC as well. Municipal district heating systems utilizing waste heat from power
production are high priority objectives of Alaska's energy policy with strong State grant and/or
financing incentives being offered to encourage rural and coastal communities to take advantage of
the huge cost savings and environmental benefits that are possible.
ACSI's proposed cogeneration project with its carefully integrated energy resource strategy
will provide several distinct economic as well as environmental benefits to Cordova. These include
the following:
DISTINCT BENEFITS BEING OFFERED
IN ACSI'S PROPOSED COGENERATION
PROJECT FOR CORDOVA
1. Lower cost power with practical and cost effective utilization of existing power
generation assets.
7 A clean and low cost Alaska energy resource, COAL, committed to supplying the life
cycle needs of the project.
3 Lower cost steam heat for the canneries with options for absorption refrigeration to
further reduce their energy costs.
4. Lower cost space heating for municipal buildings, State and Federal buildings,
commercial businesses, apartment housing and others.
5: Significant reduction in air emission pollutants exhausted to Cordova's air shed.
6. Alleviates Cordova's burgeoning solid waste disposal problem.
ds Reduced environmental liability from fuel oil handling and storage.
8. Short term economic benefit from project construction activities.
9. Long term benefit from project investments, operations and local employment.
10. Stimulation of Cordova's fish processing industry through the availability of lower
cost power, steam and heat.
ACSTs proposed cogeneration project with its carefully integrated energy resource strategy
would also like to offer the Cooperative, the City, and the canneries practical power and energy sales
agreements that are simple to understand, yet, will provide the necessary take or pay contract terms
required to secure project financing.
3.1.2 - PROJECT DESCRIPTION
ACSI is prepared to construct 6.5 MW cogeneration project on a one acre tract of ground
adjacent to the Cooperative's ORCA plant site or on a one acre tract of ground within Cordova's
North Fill Industrial Park.
ACSI's proposed project will be designed and constructed utilizing a clean coal combustion
technology with stringent environmental emission controls that will meet or exceed the latest clean
air act requirements. The air emissions from ACSI's proposed cogeneration plant will be less than
25% of that currently emitted from the Cooperative's existing diesel plants. ACSI's plant will further
reduce emissions in the airshed by displacing another two million gallons of fuel oil annually which
is presently used for spacing and process heating.
ACSI's proposed plant will consist of one(1) 80,000 lb/hr clean coal fired boiler as well as
one(1) 80,000 Ib/hr standby oil fired boiler to provide a reliable source of steam to drive two(2) 3.75
MwW steam turbine generators capable of providing a net 6.5 MW output to the Cooperative while
offering a high degree of reliability.
If the cogeneration plant is constructed adjacent to the ORCA plant site, ACSI would
integrate the Cooperative's existing ORCA diesel power plant with the cogeneration plant. The
ORCA plant diesels generator units would provide ACSI with standby capacity and would enable
ACSI to provide CEC and the community a totally integrated power generation resource with a total
output capacity of 11.4 MWs.
If the cogeneration plant is constructed on the North Fill Dock, ACSI would relocate the two
diesel engine generator sets, switchgear and the 2.5 MVA, 4.16kV/12.47kV transformer presently
located at CEC's ORCA plant to ACSI's cogeneration plant on the North Fill Dock. Relocating the
ORCA power plant equipment would provide ACSI with standby capacity and would enable ACSI
to provide CEC and the community a totally integrated power generation resource with a total output
capacity of 11.4 MWs.
ACST's proposed project will receive and consume approximately 20,000 tons of containerized
coal per year from our Evan Jones Coal Mine near Sutton and will generate approximately 2,000 tons
of coal ash per year. With each container carrying 25 tons of coal, ACSI anticipates shipping
approximately 25 containers of coal every two weeks to meet the plants energy input requirements.
After the coal has been received and unloaded at the plant, the plants coal ash will be loaded in
approximately fifteen percent of the empty containers for transport to ACSI's and/or the Mat-Su
Borough's regional solid waste disposal site for disposal. Containers will then be recycled through this process.
The cogeneration plant would also be capable of consuming Cordova's combustible solid
wastes, which makes up approximately 50% of the 3,500 tons of municipal solid wastes volume
generated annually. These combustible solid wastes would provide a clean supplemental fuel input
stream to the boiler and would reduce coal input requirements and hence energy cost to Cordova's
consumers. ACSI is willing to assist the City of Cordova in siting a municipal waste processing
facility near the cogeneration plant whereby combustible solid wastes could be shredded and
pneumatically transported over to the cogeneration plant and blended with the coal input stream. The
balance of Cordova's non-hazardous solid wastes, which would include the non-combustible
materials, junk cars, scrap metal, glass, and the like, could easily be transported in surplus containers,
along with containers filled with boiler ash, back to regional land fill space in the Matanuska Valley
for disposal and/or to Anchorage recycling companies.
As an important feature of our proposal, ACSI is offering to design and construct a municipal
district heating system for Cordova that would integrate closely with ACSI's cogeneration plant
operations and the heating needs of the community. However, we at ACSI believe that a district
heating system could better serve the community as a City or cooperative financed, owned and
operated municipal utility service rather than a privately owned enterprise. The City or cooperative
would purchase waste heat from ACSI's cogeneration plant at wholesale rates for distribution and
sale at retail rates to various consumers throughout the community. Once in operation, the more
waste heat that is consumed to displace heating oil, the more money saved by Cordova businesses
and residents, and the lower the bus bar cost of power becomes for the Cordova Electric
Cooperative. ACSI is proposing that the district waste heat system be constructed in two phase, with
both phase to be completed with a three year time period. ACSI estimates that upwards of two
million gallons of fuel oil used for spacing heating and processing could be displaced with a district
heating system. ACSI believes it is possible to install a district heating system with minimal
disturbance to roadways if installation of the heating system could be started in the summer of 1995.
ALASKA DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
P.O. BOX 110806, JUNEAU, AK 99811-0806
ALASKA BUSINESS LICENSE
This is to certify that the licensee named below holds an Alaska Business License covering the period January
1 through December 31 of the license year(s), or fraction thereof.
LICENSE YEAR(S)
LiC. KPT ALS 12/51/97
This license shall not be taken as permission to
do business in the state without having complied
AOSV ILSOR with the other requirements of the laws of the : State of Alaska or of the United States.
COMMISSIONER OF COMMERCE AND
This license must be posted in a conspicuous place at the location. ECONOMIC DEVELOPEMENT
It is not transferable or assignable.
08-079 (Rev. 9/91)
éE #61217 BUSINESS CARD C-LINE Alaska Cogeneration Systems, Inc.
750 West Second Ave., Suite 205
Anchorage, AK 99501 (907) 274-4546 Fax (907) 279-1491
Frank J. Bettine, P.E.
Attorney at Law Energy Systems
President & General Manager for Alaska
Alaska Cogeneration Systems, Inc.
750 West Second Ave., Suite 205
Anchorage, AK 99501
(907) 274-4546
Fax (907) 279-1491
E. Genivee Bettine, J.D.
Manager - Administration Energy Systems
and Finance for Alaska
Alaska Cogeneration Systems, Inc.
750 West Second Ave., Suite 205 Anchorage, AK 99501 (907) 274-4546 Fax (907) 279-1491
William D. Steigers, Jr., Ph.D. Energy Systems
Vice President, Environmental Manager for Alaska
Alaska Cogeneration Systems, Inc.
750 West Second Ave., Suite 205 Anchorage, AK 99501 (907) 274-4546 Fax (907) 279-1491
Michael W. Oswald Energy Systems
Vice President, Engineering Manager for Alaska
FRANK J. BETTINE, P.-E.
Attorney at Law
LAW OFFICES OF BETTINE
750 West Second Ave, Suite 205
Anchorage, AK 99501
TEL. (907) 274-4546
FAX/TEL. (907) 279-1491
email - bettine@micronet.net
E. GENIVEE BETTINE, J.D.
LAW OFFICES OF BETTINE
750 West Second Ave, Suite 205
Anchorage, AK 99501
TEL. (907) 274-4546
FAX/TEI. (907) 279-1491
email - bettine@micronet.net
STEIGERS CORPORATION
Environmental Project Management
WILLIAM D. STEIGERS, JR., PH.D.
President
7005 SOUTH DAHLIA STREET, LITTLETON, COLORADO 80122-2327
MAILING ADDRESS: P.O. BOX 2059, LITTLETON, COLORADO 80161-2055
TELEPHONE: (303) 488-9920 FAX: (303) 488-9899
Michael Oswald
President
Precision Energy Services Inc. P. 0. Box 1004 Ph & Fax #: Hayden Lake, ID 83835 fan sara (208) 772-4457
1
30'-0"
i ine COOLING TOWER, LOCATION T.B.D.
TURBINE.
GENERATOR
TURBINE GENERATOR LEVEL WATER TREATMENT IN LOWER LEVEL
ALASKA COGENERATION SYSTEMS, INC.
PROPOSED POWER PLANT
SITE PLAN ALASKA POWER & TELEPHONE COMPANY TOK, ALASKA
pe eae emer em
LATEST REVISION DATE
75'-0
PROPOSED POWER PLANT ELEVATION VIEW ALASKA POWER & TELEPHONE COMPANY TOK, ALASKA