HomeMy WebLinkAboutCORRECTED - Pages 11 - 13 - Application - 01092023Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2 Budget
3.2.1 Funding Sources
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in funding.
As the proposed costs are part of bids by established companies, who are both leaders in their
field with long and stellar reputations, the expectation is that the work will be completed on time
and under budget. If, however, it is determined the subs will not be able to complete their work
under budget, proactive adaptive management will allow TEC will foresee this and begin cutting
portions of tasks in their bids to keep the project under budget. The cuts will come from less
desirable areas of site discovery and off loading of tasks from the subs to TEC.
3.2.3 Total Project Costs
Indicate the anticipated total cost by phase of the project (including all funding sources). Use actual
costs for completed phases. Indicate if the costs were actual or estimated.
Grant funds requested in this application $1,400,000
Cash match to be provideda $0
In-kind match to be provideda
In-kind Project Management/Project Development services.
$280,000
Energy efficiency match providedb N/A
Total costs for project phase(s) covered in application (sum of
above)
$1,680,000
Describe your financial commitment to the project and the source(s) of match. Indicate whether
these matching funds are secured or pending future approvals. Describe the impact, if any, that
the timing of additional funds would have on the ability to proceed with the grant.
No matching funds will be provided for this phase of the project. However, Tidal Energy Corp is
an experienced project development and management firm and will contribute these functions in-
kind to the efforts. Tidal Energy Corp values the functions of project management (5% of total
project cost) and project development (15%) together at 20% of total project costs: .20 X
$1,400,000 = $280,000.
a Attach documentation for proof (see Section 1.18 of the Request for Applications)
b See Section 8.2 of this application and Section 1.18 of the RFA for requirements for Energy Efficiency
Match.
Reconnaissance Estimated $. 3,000,000
Feasibility and Conceptual Design Estimated $ 15,000,000
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Renewable Energy Fund Round 15
Grant Application – Standard Form
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in this application,
describe the anticipated sources of funding and the likelihood of receipt of those funds.
•State and/or federal grants
•Loans, bonds, or other financing options
•Additional incentives (i.e. tax credits)
•Additional revenue streams (i.e. green tag sales or other renewable energy subsidies or
programs that might be available)
As the entirety of current efforts are in the Reconnaissance Phase, future funding will be necessary
for the Feasibility and Conceptual Design, Final Design and Permitting, and Construction phases.
Anticipated sources of funding include:
Federal Funding Opportunity Announcements from the Department of Energy’s Waterpower
Technology Office (DOE WTPO) and Office of Clean Energy Demonstrations (DOE OCED).
Private capital.
DOE Loan Program.
In 2021, the Bipartisan Infrastructure Act recognized marine energy development as eligible for the
Production Tax Credit and Investment Tax Credit. This has finally given marine energy the same
tax credits that the solar and wind industries have enjoyed since 2008, and which have been THE
major factor in the meteoric rise of those industries. Developers can select the PTC or the ITC, and
‘stack’ either with the green hydrogen subsidy.
Final Design and Permitting
***Permitting for the entire project will be covered by
this cost. Engineering for the or 1st 50MW installed is
($75,000,000 + $450,000,000) X .04) = $21,000,000
Another $20,000,000 is estimated for design and
engineering of infrastructure associated with
connecting the turbine field to the electrolyzer plant
and the local grid(s). Further engineering to refine the
turbines and installation solutions will be required for
future phases.***
Estimated
$ 41,000,000
Construction Estimated $ 2,635,680,000
Total Project Costs (sum of above)Estimated $ 2,694,680,000
Metering/Tracking Equipment [not included in
project cost] Ongoing environmental and biological
monitoring is expected to be required for the duration
of the project. Est. $1,000,000/yr X 30 years+
Estimated $ 30,000,000
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Renewable Energy Fund Round 15
Grant Application – Standard Form
Production Tax Credits (PTC) of $0.025/kWh, or $25.00/MWh + 10% Domestic Content bonus =
$27.50/MWh
Low end estimated electricity production at 547,500 MWh/yr* X $27.5/MWh = $15,056,200/yr
High end estimated electricity production at 3,723,000 MWh/yr* X $27.5/MWh = $102,382,500/yr
OR
Investment Tax Credits (ITC) of 30% of total project costs:
Total project cost of $2,694,680,000 ^ X .30= $808,404,000
+10% ITC bonus for Domestic Content = $269,468,000
ITC Potential Total @ 40% = $ 1,077,872,000
PLUS Federal guidance states that the PTC or ITC and the $3/kg H2 subsidy can be
‘stacked’.
$3/kg green hydrogen subsidy from USG.
Low end: 547,000 MWh/yr*/~50kWh per 1kg of H2 = 10,940,000kg H2/yr X $3 = $32,820,000/yr
High end: 3,723,000 MWh/yr*/~50kWh per 1kg of H2 = 74,460,000kg H2/yr X $3 = $223,380,000/yr
Energy sales via direct connection to AK Railbelt Grid and hydrogen production as feedstock for
ammonia production.
*= Figures are from ‘Estimate of Tidal Power’ in Attachments
^= Figure is from ‘Section 3.2.3, Phase Four Construction Estimate’
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