HomeMy WebLinkAboutAPP_S28327-INE21-035-AEA-YZhang-PROP-for submission-FinalU~f
U NIVERSI T Y OF
ALASKA
F A IRB ANKS
Tapiana Wray
Principal Grant & Contract Management Officer
(907) 474-1989 ph one
(907) 474-5506 fax
uaf-o cca-preaward@alaska.edu
tewray@alas ka.edu
www.uaf.edu/ogca/
Office of Grants and Contracts Administration
P .O. Box 757880, Fairbanks, Alaska 99775-7880
28 September 2020
Alaska Energy Authority
Renewable Energy Fund Grant Application
8 1 3 West Northern Lights Blvd
Anchorage, AK 99503
This letter confirms th at th e University of Alaska Fairbanks has identified cost share funding in
the amount of $95,893 as part of proposed project "Engineering Alaska's Geothermal Energy,"
submitted to the Alaska Energy Authority Ren ewable Energy Fund Round 13.
As an Authorized Organizational Representative for the University of Alaska Fairbanks, I verify
that sh ould this project be funded, these matching funds will be available to the project.
Th ese funds are necessary to the project, applied to allowable costs, and th ey h ave not been used
as cost share on any other project.
Sincerely,
Tapiana Wray
D igitally signed by
Tapiana Wray
Date: 2020.09.28
13:59:13 -08'00'
Prin cipal Grant & Contract Management Officer
UA is an AA/EO employer and educational institution and prohibits illegal discrimination against any individual:
www a laska edu/tj1 1efXcomp Hancy/n ond jsqjmjpat jgn .
Renewable Energy Fund Round 13
Grant Application-Standard Form
Application Forms and Instructions
ALASKA
ENERGY
AUTHORITY
This instruction page and the following grant application constitutes the Grant Application Form for
Round 13 of the Renewable Energy Fund (REF). A separate application form is available for
projects with a primary purpose of producing heat (see Request for Applications (RFA ) Section
1.5 ). This is the standard form for all other projects, including projects that will produce hea t and
electricity. An electronic version of the RFA and both application forms is available online at:
www.akenerg yaut hor ity.org/what -we -do/grants-loans/renewable-energy -fund -ref-grants/2020 -ref-
application .
What follows are some basic information and instructions for this application :
• The Alaska Energy Authority (AEA) expects this application to be used as part of a two-year
solicitation cycle with an opt-out provision in the second year of the cycle.
• If you are applying for grants for more than one project , provide separate application forms for
each project.
• Multiple phases (e.g. final design , construction ) for the same project may be submitted as one
application.
• If y ou are appl ying for grant funding for more than one phase of a project, provide milestones
and grant budget for each phase of the project (see Sections 3.1 and 3.2 .2 ).
• In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3 Alaska
Administrative Code (ACC ) 1 07.605 (1 ).
• If some work has already been completed on your project and y ou are requesting funding for
an advanced phase , submit information sufficient to demonstrate that the preceding phases are
completed and funding for an advanced phase is warranted. Supporting docume ntation may
include , but is not limited to , reports , conceptua l or fina l designs , models, photos, maps, proof
of site contro l, utility agreements, business and operation plans, po wer sa le agreements,
re levant data sets, and other materia ls. Please provide a list of supporting documents in
Section 11 of this application and attach the documents to your app lication .
• If y ou have additional information or reports y ou would like the Authority to consider in
reviewing your application , either provide an electronic version of the document with your
submission or reference a web link where it can be downloaded or reviewed. Please provide a
list of additional information ; including any web links , in Section 12 of this application and attach
the documents to your application. For guidance on application best practices please refer to
the resource-specific Best Practices Checklists; links to the checklists can be found in the
appendices list at the end of the accompanying REF Round 13 RF A.
• In the Sections below , please enter responses in the spaces provided. You may add additional
rows or space to the form to provide sufficient space for the information, or attach additional
sheets if needed.
• If you need assistance with your application, please contact AEA 's Grants Manager Karin St.
Clair by email at grants@akenergyauthoritv.org or by phone at (907 ) 771-3081.
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Grant Application-Standard Form
REMINDER:
ALASKA
ENERGY
AUTHORITY
• AEA is subject to the Public Records Act AS 40.25 , and materials submitted to AEA may be
subject to disclosure requirements under the act if no statutory exemptions appl y.
• All applications received will be posted on the Authority web site after final recommendations
are made to the legislature . Please submit resumes as separate PDFs if the applicant would
like those excluded from the web posting of this application.
• In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary
company data be kept confidential subject to review and approval by AEA. If you want
information to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their application.
o Receive concurrence from the Authority that the information will be kept confidential. If
the Authority determines it is not confidential , it will be treated as a public record in
accordance with AS 40.25 or returned to the applicant upon request.
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Grant Application-Standard Form
SECTION 1 -APPLICANT INFORMATION
ALASKA
ENERGY
AUTHORITY
Please specify the legal grantee that will own, op erate, and maintain the project upon completion .
Nam e (Name of utility, IPP, local government, or other government entity)
I Universi ty of Alaska Fai rbanks , Alaska Divis ion of Geolog ical & Geophysical Surveys
Tax 10 # 92-6000147
Date o f last f i na nc i a l s tatement a udit: 2019
Mailing Address: Physical Address:
University of Alaska Fai rba nks Unive rsity of A laska Fairbanks
PO Box 757880 2 145 North Tan ana Loop , 008 W RRB
Fai rbanks , AK 99775-7880 Fai rbanks, AK 99775-7880
Telephone : Fax: Email:
907-474-7301 (907) 474 -5506 uaf-ogca @al aska .ed u
1.1 Applic ant Point of Contact I Grants Manager
Name: Title:
Tapi an a Wray Prin ci pal Grant & Contract Ma nage ment Offi cer
Mailing Address:
PO Box 757880 Fairba nks, AK 99775-7880
Telephone: Fa x : Email:
907-474-7301 uaf-ogca @al aska .ed u
1.1.1 Applic ant Signatory Authority Contact Information
Name: Title:
Tapia na Wra y, Princi pal Grants an d Co ntracts Man ag em en t Offi cer
Mailing Address: U niversity of Al aska Fai rban ks, 2 145 North Ta nana Loop , 008 W RRB , PO Box
757880 , Fairbanks, AK 99775-7880
Telephone: Fa x : Email:
(907 ) 4 74-1989 uaf-ogca-preawa rd @a laska.edu
1.1.2 Applicant Alternate Po ints of Contact
Name Telepho ne: Fax: Email:
Yin Z hang (PM) 907-4 7 4-7877 yzhang35@alaska .edu
1.2 Applicant Minimum Requirements
Please check as appropriate . If applicants do not meet the minimum requirements, the application
will be rejected.
11.2.1 Applicant Type
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ALASKA
ENERGY
AUTHORITY
D An electric utility holding a certificate of public convenience and necess ity u nder AS 42.05
CPCN# , or
D An independent pow er producer in accordance w ith 3 AAC 107.695 (a) (1)
CPCN# , or
D A local government, or
181 A governmental entity (w h ich includes tr ib al councils and housi ng authorities)
Add". I .. 1t1ona m1mmum requirements
181 1.2.2 Attached to this application is for ma l approval and endorsement fo r the project by the
applica nt's board of directors, executive management, or other governing authority. If the
applica nt is a collaborative grouping, a for mal approval f rom each participant's governing
authority is necessary. (Indicate yes by checking the box)
181 1.2.3 As an applicant, w e have administrative and financial management systems and follow
procu re ment standards that comply w ith the standards set forth in the grant agreement
(Section 3 of the RFA). (Indicate yes by checking the box)
181 1.2.4 If awarded the grant, we can comply with all terms and conditions of the aw ard as
identified in the Standard Grant Agreement template at www.akenergyauthoritv.org/what-w e-
do/grants-loans/renewable-energy-fund-ref-grants/2020-ref-al2121 ication (Any exceptions
should be clearly noted and submitted w ith the application .) (Indicate yes by checking the
box)
181 1.2.5 We intend to ow n and operate any proj ect that may be constructed with grant funds for
the benefit of the general public. If no, please describe the nature of the project and who w ill
be the primary beneficiaries. (Indicate yes by checking the box)
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I SECTION 2 -PROJECT SUMMARY
2.1 Project Title
ALASKA
ENERGY
AUTHORITY
Provide a 4 to 7 word title for your project. Type in the space below.
Engi nee ring A laska's Geothermal Energy-HSBV, Akutan
2.2 Project L o catio n
2.2.1 Loc ation of Projec t-Latitude and longitude (preferred), street address, o r
c ommunity n ame.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project's
location on the map and then right clicking with the mouse and selecting "What is here? The
coordinates will be displayed in the Google search window above the map in a format as follows:
61 . 195676.-149.898663. If you would like assistance obtaining this information, please contact
AEA 's Grants Manager Kar in St. Clai r by e mail at grants@akenergyauthority.org or by phone at
(907) 771 -308 1.
I Latitude I 65.24 1898 I Longitude I 164.884409
Th e proj ect is located at Hot S prings Bay Valley (HS BV), wh ich is close to th e C ity of A kutan .
2.2.2 Community benefiting-Name(s) of the c ommunity or c ommunities that will be the
beneficiaries of the project.
Th is p roject w ill benefit/im pact the Ci ty of A kutan , th e nearby towns along with th e Aleutia n island
ch ain , and th e Bering Sea seafood processi ng facil ity as w ell. A n extens ion of th is p roject will
benefit th e communities acr oss th e state .
2.3 Project Type
Please check as appropriate .
I 2.3.1 Renewable Resourc e Type
D Win d D Biomass or Biof uels (exclu di n g heat-o nly)
D Hyd r o, Inclu din g Run of River D Hy drokin etic
181 Geoth ermal, Excludi ng Heat Pumps D T ra ns mi ssion of Renewabl e En ergy
D Solar Photovoltai c D Sto rage of Ren ewable
D Oth er (Describe) D Small Natural G as
2.3.2 Proposed Grant Funded Phase(s) for this Request (Che c k all that apply)
Pre-Construc tion Construction
181 Reconnaissance D Fin al Desig n an d Perm itting
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Feasibility and Conceptual Design D
2.4 Project Description
Construction
Provide a brief, one-paragraph description of the proposed project.
ALASKA
ENERGY
AUTHORITY
Although previous studies have been conducted to evaluate and characterize geothermal
resources in the State of Alaska, there still exist extensive disagreements on the commercial
potential of Alaska geothermal energy. The objective of this collaborative study is to establish a
systematic engineering solution /workflow to develop Alaska geothermal resources. This project
integrates laboratory experiments, field characterizations, and numerical modeling for advancing
the physical understanding of Alaska geothermal resources and guiding future geothermal
research and development in the state. Hot Springs Bay Valley (located adjacent to the City of
Akutan ), a geothermal area with high temperature gradients will be used as a case study to
execute and validate the workflow proposed in this project. Eventually , the engineering workflow
developed and validated in this project will be applied to the other geothermal sites across the
state, thus making contributions to the rene wable energy inventory of Alaska.
2.5 Scope of Work
Provide a short narrative for the scope of work detailing the tasks to be performed under this
funding request. This should include work paid for by grant funds and matching funds or performed
as in-kind match.
Geothermal energy is of interest primarily in terms of renewable and clean power obtained via heat
from the interior of the Earth . Although Alaska has impressive geothermal potential from both
volcano-related and granite-related systems , the current capacity of geothermal infrastructure in
Alaska is very limited. Previous exploration efforts have identified four distinct geothermally active
regions : the Central Alaskan Hot Spring Belt , the Aleutian Volcanic Arc , the Wrangell Mountains ,
and the Southeastern Panhandle. However , the promising geothermal sites having high heat flo w,
sufficient flow rate , and low seismic hazard risk are still subject to continued research and
development. In addition, the previous geothermal studies have mainly focused on reconnaissance
research . The major research efforts have addressed geological characterization , geochemical
analyses , geophysical survey, and exploratory drilling in an attempt to build conceptual geological
models for a geothermal site . However , none of the previous work has performed a systematic
study that incorporates multidisciplinary knowledge of geology , geomechanics, geophysics , and
engineering rock mechanics toward an executable engineering plan for geothermal energy
development across a variety of sites.
A number of potential geothermal sites have been explored across the state since the 1980s.
However , commercial power generation through geothermal resources has so far been limited in
Alaska. Most explored geothermal sites have insufficient temperatures and /or flo w rates to be
capable of supporting a power plant (i.e ., Mount Spurr, Pilgrim , Manley ). To date , Chena
Geothermal Power Plant with 400 kW capacity is the only operating geothermal plant in Alaska .
Hot Springs Bay Valley (HSBV ) could be another promising geothermal site with commercial
potential, which is evidenced by the hot water over 170 degrees Celsius at shallow depth . In
addition , the City of Akutan and the nearby seafood processing facility create high energy demand ,
but so far they mainly use fossil fuel energy , which must be imported at high costs , for power
generation . Therefore , commercially viable geothermal energy extraction from the HSBV site has
significant economic prospects.
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ALASKA
ENERGY
AUTHORITY
In order to successfully engineer a geothermal reservoir, w e need first to characterize the heat flow
distribution and the seismic risk of the reservoir, and then design an engineering plan (including
w ell configuration , injection plan , reservoir stimulation plan, etc.) according to ph y sical reservoir
properties and heat recovery simulations. In this cooperative project between the University of
Alaska Fairbanks and the Alaska Division of Geological & Geophysical Surveys, Hot Springs Bay
Valley (HSBV) geothermal site w ill be used as a case study to validate the systematic engineering
w orkflow w e propose for developing Alaska geothermal resources. First, state-of-the-art laboratory
experiments w ill be conducted on the reservoir rock samples and outcrops collected from the
HSBV site to characterize the thermal-hydro-mechanical properties of the HSBV geothermal
reservoir, as w e ll as the accompanied seismic responses . Second , high-resolution heat flow maps
constrained by laboratory therma l conductivity experiments and field temperatu re measurements
w ill be constructed th rough advanced geostatistics methods to determine the heat in place that can
be extracted f rom the HSBV site. Fu rt hermore , the seismic risk of the HSBV site w ill be evaluated
by combining laboratory frictiona l expe riments, the rate-state friction (RSF) la w, and fau lt slip
potential (FSP) analyses. Fina ll y, la rge-scale reservoi r simulation , calibrated by laboratory
experiments and fie ld measu rements/surveys, w ill be applied to simu late the heat
recovery/p roduction f rom the HBSV site on a time scale of 5-30 years. Follow ing this systematic
analysis, an optimum engineering design for HSBV site w ill be recommended.
2.6 Previo us REF A pplicati o n s for t h e Proj ect
See Section 1.15 of the RFA for the maximum (;!er (;!reject cumulative g rant aw ard amount
Round Title of app lication Application Did you Amount of REF
Submitted #,if know n receive a grant aw arded
grant? Y/N ($)
NON E
I SECTION 3 -Projec t M anageme nt, Deve l opm e nt, a nd Operati o n
3.1 Sc h edule a nd Mileston es
Please fi ll out the schedule below (or attach a simi lar sheet) for the w ork cove red by this funding
request. Be sure to identify key tasks and decision points, including go/no go decisions, in your
project along w ith estimated start and end dates for each of the mi lestones and tasks. Pl ease
clea rly identify the beginning and ending of all phases (1. Reconnaissance, II. Feasibility and
Conceptual Design , Il l. Final Design and Permitting , and IV. Construction ) of your proposed
project. See the RFA, Sections 2 .3-2.6 for the recommended milestones for each phase. Add
additiona l row s as needed .
Several critica l components of characterizing and deve loping a geothe rmal system are heat flow ,
seismic tendency, and p roduction sustainability. As show n in Figu re 1, this proposal offe rs a
systematic engineering w orkflow for deve loping Alaska geothermal resources involving laboratory
geomechanics experiments (task 1 ), heat flow mapping (task 2), seismic tendency ana lysis (task 3 ),
and large-scale reservoir simulation (task 4 ). The laboratory experiments in Task 1 w ill provide the
critical input data for the Tasks 2 to 4 .
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Task1
LaborataryGeomed>anlCS Exportmerts
UniDilll .... " ... FluiiFiolr -· Mt-.,__. --...............
• .!. 1
The~ Hy<tdc Mechonlcol
PropellJH P'"!'t,._ Prope<ties
CondudJioy . ptmiOablly, S.tsmoc:I.AE
Offu..,.y poroSdy. et<. R•ponoe
Task 2
11oat Fl<MI Mappmg
HaatFIQOr.lapS
Th-Gtmlent DiwtbuiJDn
Foul Sl ..
~·
SeiSrnle Tendency Mal'S
rra.-cugh9fam
Figure 1 Project w orkflow and subtasks.
The project work plan and methodology are outlined below :
Task 1: L aboratory Geomechan ics Experi ments
ALASKA
ENERGY
AUTHORITY
Task4
Reservor Sbndnon
THM
FioldD.. Nunorical -
Hoat Ra""""Y
TemptrolovoiUCJon ol Thwmal Glad•nL
En!lfl•nngDes'iJl
In engineering a geothermal system , the first step is to determine the relevant geomechanical
properties of the geothermal reservo ir . State-of-the-art laboratory experiments w ill be performed
using the reservoir rock samples and outcrops collected from the HSBV site. The novel and non-
destruct ive Lase r Flash Method (LFM ) w ill be appli ed to measu re the thermal conductivity and to
provide precise therma l conductivity profi les. Laboratory fluid flow experiments w ill be used to
determine the permeabi lity and porosity of the HSBV core samples . In addition , laboratory
uniaxial/triaxial comp ressive experiments w it h concurrent acoustic emission (A E) mon itoring w ill be
applied to characterize the mechan ica l properties and the associated se ismic responses.
Task 2: Heat Flow Mapping
The next step of th is project is to dete rmine the amount of heat (or heat in place ) that can be extracted
from the HSBV site . Hence, a heat flow map w ill be constructed using advanced geostatistics
methods, in order to eva luate the favorability of the HSBV site for geothermal energy production. To
provide a high-resolution heat flow map, the laboratory therma l conductivity measu rements and the
screened temperature-depth data from HSBV exp loratory w ells w ill be used to constrain the
geostatistics models .
T ask 3: Se is mic Ri sk An a lys i s
One controve rsia l issue associated w ith geothe rmal energy development is i nduced seismicity
caused by fluid injection and production. Seismic tendency/risk analys is is one of key components
in this project; it directly determines the success of engineering a geotherma l system . The
mechan ica l and f rictiona l properties dete rmi ned in t he laboratory (Task 1) w ill be used as input data
fo r the rate-state friction model to eva luate the se ismic risk of the HSBV site. In add ition , a fau lt slip
potential (FS P) app roach based on Coulomb faulti ng theory wi ll be applied to quantitatively screen
the seismic tendency of the natura l fau lts/fractures across the HSBV site. The aim of th is task is to
estab lish an effective traffic li ght system fo r seismicity management.
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Grant Application -Standard Form
Task 4 : Large-S ca le Reservoir S imul ati on
ALASKA
ENERGY
AUTHORITY
To develop a geothermal resource in a sustainable manner, reservoir simulation needs to be carried
out before the implementation of the project to ensure the appropriate development strategies are in
place. The geomechanical properties of the core samples (thermal conducti vity, permeability,
porosity , etc.), in-situ measurements (thermal gradient), and geophysical surveys w ill be used to
calibrate and validate the numerical models having full thermo-hydro-mechanical coupling. The
calibrated model w ill be further employed to characterize the temporal and spatial evolutions of
reservoir permeability and thermal gradients in response to fluid injection and production. The heat
production on a decade scale from the nume rica l modeling can be used to ana lyze economic
feasibility and optimize development strategies . Moreove r, the optimum engineering designs
including drilling/well configuration , reservoir stimu lation , and injection-production scenario w ill be
recommended according to the reservoir simulation resu lts.
The project schedu le and mi lestones for the work plan outlined above are summarized in Table 1.
Milestones are designated on the project timetab le be low as red diamonds. The first annual report
w ill be released in June 2022, and the final report w ill be comp leted in June 2023. In addition,
scientific articles wi ll be submitted to re levant scientific journals/conferences.
Tabl e 1: Proj ect sched ule and milestone
Tasks and Milestones Yea r 1 Yea r 2
Task 1 Laboratory geomechanics eXPeriments July-Sept Oct-Dec Jan-Mar Apr-Jun Julv-Sept Oct-Dec Jan-Mar Apr-Jun
Milestone 11 Inven tory Report of Co re Samples and Field Data • Milestone 21 Thermo-Hydro-Mechanical Properties of HSBV Core Samples • • Task2 Heat Flow Mapping
Milestone 31 High-resolution Heat Flow Maps of HSBV • Ta sk3 Seismic Risk Analysis
Milestone 41 Seismic risk maps/profiles of HSBV • Milestone 51 Fault Slip Potentia l Resu lts of HSBV • Task 4 Reservo ir simulation
Milestone 61 The temporal evolution of heat recovery • Yea r 2021 2022 202 3
The task deliverables appear be low in Table 2.
Tabl e 2 : B r ief s ummary of t ask d elivera bles
Tasks De liverables
Tas k 1 The Thermo-Hydro-Mec han ica l (THM ) properties ofthe HSBV core samples
Ta s k2 The heat flow maps and thermal gr iad ient dist rbuti on of the HSBV site
Ta s k3 The se ism ic tedency maps of the HSBV site
Ta s k4 The heat recovery of the HSBV site in decade scale
1 3 .2 Budget
1 3 .2.1 Fund ing So u rces
Indicate the funding sources for the phase(s) of the project applied for in this funding request.
Grant funds requested i n t his applicati on $8 51 ,26 3
Cash match to be p rovided3 $95 ,893
I n-k i nd match to be provi ded 3 $0
Energ y efficiency match p r ov idedb $0
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ALASKA
ENERGY
AUTHORITY
Total costs f or project phase(s} covered in application (sum of I $947,156
above)
Describe your financia l commitment to the project and the source (s ) of match. Indicate w heth er
these matching funds are secured or pending fu ture approvals. Describe the impact, if any, that
the t iming of additional funds would have on the ability to proceed w ith the grant.
As cost share on this project, UAF has secured fundi ng to support the effort (1389 h rs, or $7 4 ,643,
including labor, benefits , and related facilities and administrative costs ) of Zhi Ye , co-l. Additional
cost share is provided by collaborator Advanced Hydrocarbon Stratigraphy in the form of $21 ,250
in analysis of the orga nic and inorganic volatiles entrained in Akutan rock samples. See attached
letters of commitment.
a A ttach docum en tation for p roof (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.
3.2.2 Cost Overruns
Describe the plan to cover potential cost increases or shortfalls in f unding.
Since th is project focuses on Phase 1 : Reconna issance and Phase 2 : Feasi b ility a nd Conceptual
Desig n , the proj ect team shou ld be a b le to control t he expe nses in budget ra nge.
3.2.3 Total Project Costs
Indicate the anticipated tota l cost by phase of the project (including all funding sources ). Use actua l
costs for completed phases . Ind icate if the costs w ere actual or estimated .
Reconnaissance [Actual/Estimated] $470,259
Feasibility and Conceptual Desiqn {Actual/Estimated] $
Final Design and Permitting [Actual/Estimated] $
Construction [Actual/Estimated] $
Total Project Costs (sum of above) Estimated $947,156
Metering/Tracking Equipment [not included in Estimated $
pro ject cost!
3.2.4 Funding Subsequent Phases
If subsequent phases are required beyond the phases being applied for in th is application,
describe the anticipated sources of f und ing and the likelihood of receipt of those funds .
• State and /or f ederal 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 )
If the results from this p roject (Phase 1 & 2) are encouraging, we w ould like to apply fede ral grants,
such as from DOE, to continue the p roject for Phase 3 & 4.
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3.2.3 Budg et Forms
ALASKA
ENERGY
AUTHORITY
Applicatio ns MUS T include a sepa rate workshee t for each project phase t hat was identified in
Section 2.3.2 of this app li cation -I. Re co nn aissa nce , II. Feasibility and Conce ptua l Des ign, Il l.
Final Design and Perm itting , and IV. Co nstructi on. Please use th e tab les provided below to detail
yo ur proposed project's total budg et. Be sure to use one ta ble fo r each phase of yo ur pro ject and
de lete any un necessary tab le s. The mileston es and tasks sho ul d match those listed in 3.1 above .
If you have any question regarding how to prepare these tables or it you need assistance preparing
the application please feel tree to contact A EA 's Grants Manager Karin St. Clair by email at
grants@akenergvauthoritv.org or by phone at (907) 771 -3081 .
Phase 1 -Reconnaissanc e
Source of
Matc hing
Antic ipated Grantee Funds:
RE· Fund Cash/In-Milestone or Task Completion Grant Funds Matc hing kind/Federal TOTALS
Date Funds Grants/Other
State
Grants/Other
(List milestones base d on
phase and type of proje ct. See
Se ctions 2 .3 thru 2.6 of the
RFA)
Milestone 1: Inventory Report
of Core Samples and Field 09/30/2021
Data $190 ,073 $14 ,386 $204,459
Milestone 2: Thermo-Hydro-
Mech an ica l Properties of 09/30/2022 HSBV Core Samp les
$240 235 $25 565 $265 800
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $430 308 $39 951 $470 259
Budget Categories:
D irect Labor & Benefits $249 40 9 $18 701 $268 110
Travel & Per Diem $17,670 $0 $17,670
Equipment $73,284 $ $73,284
Materials & Suppl ies $8500 $ $8500
Con tract ual Servi ces $50,666 $21 ,250 $71 ,916
Construction Services $ $ $0
Other $30,779 $0 $30,779
TOTALS $430 ,308 $39,951 $470,259
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Phase 2 -Feasibil ity and C o n cep t u a l D esign
So urce of
Mat ch i ng
Anti ci p ated Gra ntee Funds:
RE· Fund Cas h/In -Milest one o r Task Co mpleti o n Grant Funds Match i ng kind/Federal Dat e Funds Grants/Ot her
State
Grants/Ot h er
(List m ilestones based on
phase and type of pr oject. $ $ See Secti ons 2.3 thru 2.6 of
the RFA)
Milestone 3: H igh-resol ution 12/30/2022 $85,238 $0 Cash Heat Flow Ma ps of HSBV
Milestone 4: Seismic ris k 12/30/2022 $106,070 $22,356 cash maps/profi les of HSBV
Milestone 5: Faul t Slip 03/30/2023 $92,700 $11 ,231 cash Potential of HSBV
Milestone 6: Th e tempo ral 06/30/2023 $136,947 $22,355 cash evolution of heat recovery
$ $
$ $
$ $
$ $
$ $
$ $
$ $
TOTALS $420 955 $55 941
Budget Categ o ries:
D irect Labor & Benefits $357 ,364 $55,941
Travel & Per Diem $0 $0
Equipment $0 $0
Materials & Su ppl ies $0 $0
Con tract ual Servi ces $19 812 $0
Construction Services $ $
Other $61 580 $
TOTALS $438,756 $55,941
AEA 2 10 10 Pag e 12 of3 4
ALASKA
ENERGY
AUTHORITY
TOTALS
$
$85,238
$128,426
$103,931
$159,302
$
$
$
$
$
$
$
$476897
$413,305
$0
$0
$0
$19 812
$0
$61 580
$494,697
7/2 0/2020
Renewable Energy Fund Round 13
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3.2.4 Cost Justification
ALASKA
ENERGY
AUTHORITY
Indicate the source(s ) of the cost estimates used for the project budget, including costs for future
phases not included in this application.
The budget estimate for Phases 1 & 2 are based on existing costs, equipment quotes, and current
pricing.
I 3.3 Project Communications
3.3.1 Project Progress Reporting
Describe how you plan to monitor the progress of the project and keep AEA informed of the status.
Who w ill be responsible for tracking the progress? W hat tools and methods w ill be used to track
progress?
UAF Project Manager (PM ) Yin Zhang w ill monitor all tasks and lead all communications w ith
DGGS and w ith AEA. Co-Investigator (Co-l) Zhi Ye w ill lead tasks 1 to 4 , and w ill provide results to
the PM. UAF researcher Arya w ill co-lead Task 1, and provide results to the PM and the Co-l.
DGGS researchers Ronald Daanen and Nina Harun w ill co-lead Task 2 and the field trip, and
provide results/findings to the PM and the Co-l. One post-doctoral research associate and two
graduate student research assistants w ill contribute to all tasks. They w ill be mentored by the PM
and the Co-l.
Quarterl y reports w ill be prepared and submitted to the Alaska Energy Authority (AEA). An interim
report w ill be completed in July 2022, and a final report w ill be completed in June, 2023. In
addition , a database w ill be built to store all the project results including laboratory experiments,
heat flow maps, numerical simulation, etc.
Monthly teleconferences w ill be held w ith the project team and AEA representatives to discuss the
project findings and monitor the project progress.
I 3.3.2 Financial Reporting
Describe the controls that w ill be utilized to ensure that only costs that are reasonable , ordinary
and necessary w ill be allocated to this project. Also discuss the controls in place that w ill ensure
that no expenses for overhead, or any other unallow able costs w ill be requested for reimbursement
from the REF Grant Program .
UA has established controls to ensure only costs that are reasonable , ordinary and necessary w ill
be allocated to this project. No expenses for overhead, or any other unallow able costs w ill be
requested for reimbursement from the REF Grant Program per the UAF Disclosure statement
found at: https:l/www.alaska.edu/cost-analysis/university-disclosure-sta/
I SECTION 4-QUALIFICATIONS AND EXPERIENCE
I 4.1 Project Team
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ALASKA
ENERGY
AUTHORITY
Include resumes for known key personnel and contractors, including all functions below , as an
attachment to your application. In the electronic submittal , please submit resumes as separate
PDFs if the applicant w ould like those excluded from the web posting of this application.
4.1.1 Project Manager
Indicate w ho w ill be managing the project for t he Grantee and include contact information. If the
applicant does not have a project manager indicate how you intend to solicit project management
support. If the applicant expects project management assistance from AEA or another government
entity, state that in this section.
Yin Zhang , an associate professor at the Institute of Northern Engineering at the University of
Alaska Fairbanks, w ill have oversight of the project. The contact Information of project manager is :
Yin Zhang, Ph .D.
Associate Professor of Petroleum Engineering
413 Duckering Building, PO BOX 755880
University of Alaska Fairbanks
Fairbanks, AK 99775-5880
(907 )474-7877 (Phone )
(907 ) 474-5912 (Fax )
yzhang35@alaska .edu (Ema il )
4.1.2 Project Accountant
Indicate w ho w ill be performing the accounting of this project for the grantee. If the applicant does
not have a project accountant indicate how you intend to solicit financial accounting support.
Crystal Mailloux, CEM Institute of Northern Engineering Research Grant Manager at the University
of Alaska Fairbanks, w ill perform grant management and project accounting.
4.1.3 Expertise and Resources
Describe the project team including the applicant, partners, and contractors.
For each member of the project team , indicate:
• the milestones/tasks in 3 .1 they w ill be responsib le for;
• the know ledge , skills, and experience that w ill be used to successfull y deliver the tasks;
• how time and other resource conflicts w ill be managed to successfully complete the task.
If contractors have not been selected to complete the work, provide review ers w ith sufficient detail
to understand the applicant's capacity to successfull y select contractors and manage complex
contracts.
The key team members of this project include:
Dr. Yin Zhang, Associate Professor, University of Alaska Fairbanks (UAF).
Dr. Zhi Ye , Centennial Postdoctora l Fellow , University of Alaska Fairbanks (UAF).
Dr. Ronald Daanen, Geologist, Alaska Division of Geological and Geophysical Surveys (DGGS ).
Ms. Nina Harun, Geologist, Alaska Division of Geological and Geophysical Surveys (DGGS).
Dr. Sampurna Arya, Assistant Professor, University of Alaska Fairbanks (UAF).
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ENERGY
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The project Principal Investigator (Dr. Y i n Zhang -UAF) w ill coordinate and manage the entire
project, and take responsibility for the laboratory experiments pertaining to the hydraulic properties
of core samples as w ell (Task 1 ). The Co-principal Investigator (Dr. Zhi Ye-UAF) w ill be involved
in the technical part of all the four tasks and supervise the tasks of seismic risk analysis (including
the laboratory experiments of acoustic emission measurements ) and numerical simulation (Tasks 3
and 4 ). The DGGS researchers (Dr. Ronald Daanen and Ms. Ni na Harun) w ill collect relevant
core samples and field measurement data, lead the field trip, and supervise the tasks of heat flow
mapping and groundw ater mode ling as w ell (Tasks 1 and 2 ). The UAF researcher Dr. Sampurna
Arya w ill co-supervise the laboratory experiments of mechanical properties measurement (Task 1 ).
4.2 Local Workforce
Describe how the project w ill use local labor or train a local labor w orkforce.
The local labor w ill be primarily used w henever possible to assist this program . The project w ill use
local mechanic technicians in support of laboratory facilities maintenance. Moreover, the project
w ill train at least two UAF graduate students and a number of undergraduate students in the area
of geothermal energy development. The ultimate goal of this project is to determine the most
promising geothermal sites w ith commercial potential. More jobs for local labor are expected to be
created in the future implementation phase.
I SECTION 5-TECHNICAL FEASIBILITY
I 5.1 Resource Availability
5.1.1 Assessment of Proposed Energy Resource
Describe the potential extenVamount of the energy resource that is available , including average
resource availability on an annual basis. For pre-construction applications, describe the resource to
the extent know n . For design and permitting or construction projects, please provide feasibility
documents, design documents, and permitting documents (if applicable) as attachments to this
application (See Section 11 ). Likelihood of the resource being available over the life of the project.
See the "Resource Assessment" section of the appropriate Best Practice Checklist for additional
guidance.
The currently installed capacity of Alaska geothermal use is around 0 .7 MW, w hich is less than
0.1 % of the total geothermal capacity (3,390 MW) installed in the United States. Besides the
Chena Geothermal Plant of 0.4 MW capacity , most explored geothermal sites in Alaska have no
sufficient temperature and /or fluid flow rates capable of supporting commercial geothermal
development.
Hot Springs Bay Valley (HSBV) on Akutan Island is considered as one of the most promising sites
w ith commercial potential , due to the explored drilling encountered high reservoir temperatures of
170 -190 degrees Celsius at shallow depth . The pow er generation capacity of the HSBV site w as
estimated as 12.7 MW over a 30-year period (Moty ka and Nye, 1988).
How ever, the previous research also implied that the flow rates at HSBV geothermal site might be
not sufficient to support the electric pow er generation . In this project, a systematic w orkflow w ill be
developed in an attempt to engineer the development of HSBV geothermal resources.
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5.1.2 Alternatives to Proposed Energy Resource
ALASKA
ENERGY
AUTHORITY
Describe the pros and cons of your proposed energy resource v s. other alternatives that may be
available for the market to be served by your project.
Compared to fossil energy (oil , gas , and coal) that dominates current energy inventory, geothermal
energy is an eco-friendly energy resource with high efficiency and lo w greenhouse gas emission .
In addition , geothermal energy is a renewable energy resource that is suitable for the smallest
house to the largest commercial spaces. However, due to the barriers of current technology , the
large-scale commercial use of geothermal energy is still subjected to continued research and
development.
5.1.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues. See the "Environmental and Permitting Risks " section of the appropriate
Best Practice Checklist for additional guidance .
• List of applicable permits
• Anticipated permitting timeline
• Identify and describe potential barriers including potential permit timing issues , public
opposition that may result in difficulty obtaining permits, and other permitting barriers
This project doesn 't involve any permit issues. The core samples , field measurements
(temperature , etc.), geology information , and the other relevant data will be collected from the
Alaska Department of Natural Resources and the public publication resources .
5.2 Project Site
Describe the availability of the site and its suitability for the proposed energy system. Identify
potential land ownership issues, including whether site owners have agreed to the project or how
you intend to approach land ownership and access issues . See the "Site control " section of the
appropriate Best Practice Checklist for additional guidance.
The Hot Springs Bay Valley located at Akutan Island will be used as a case study for this project to
validate the proposed methodology. The validated engineering solution /workflow will be further
applied for geothermal energy extraction across the state .
This project focuses on engineering analyses and simulations , so it doesn 't involve any land
ownership issues.
5.3 Project Technical & Environmental Risk
5.3.1 Technical Risk
Describe potential technical risks and how you would address them.
• Which tasks are expected to be most challenging?
• How will the project team reduce the risk of these tasks?
• What internal controls will be put in place to limit and deal with technical risks?
See the "Common Planning Risks " section of the appropriate Best Practice Checklist for additional
guidance.
AEA 2 1010 Pag e 18 of34 7/20/2020
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Renewable Energy Fund Round 13
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There is one possible technica l risk regarding this project:
ALASKA
ENERGY
AUTHORITY
Insufficient HSBV core samples for the laboratory experiments. In order to obtain the
fundamental and criti cal thermo-hydro-mechan ical properties of the HSBV geothermal reservoi r,
laboratory experiments are required . How ever, the core samples from the HSBV reservoirs might
be not sufficient, or the samples might be not permitted for destructive experi ments (e.g .,
uniaxial/triaxial compressive experiments that w ill fai l the rock samples).
The backup solution for the technical risk is to use the typical outcrops at HSBV site for laboratory
experiments. Hence, a field trip of the HSBV site is proposed . DGGS researchers w i ll lead the field
trip and collect appropriate outcrops from the HSBV site.
5.3.2 Environmental Risk
Explain w hether the follow ing environmental and land use issues apply , and if so w hich project
team members w ill be involved and how the issues w i ll be addressed . See the "Environmental and
Permitting Risks" section of the appropriate Best Practice Checkl ist for add itional guidance.
• Threatened or endangered species
• Habitat issues
• Wetlands and other protected areas
• Archaeological and h istorical resources
• Land development constraints
• Telecommunications interference
• Aviation considerations
• V isual , aesthetics impacts
• Identify and describe other potential barriers
Th is project focuses on engineering analysis and design ; thus, it w ill not have any environmental
risks.
5.4 Technical Feasibility of Proposed Energy System
In th is section you w ill describe and give detai ls of the existing and proposed systems. The
information for existing system w ill be used as the baseli ne the proposal is compared to and also
used to make sure that proposed system can be integrated.
On ly complete sections appl icable to your proposal. If your proposal on ly generates electricity , you
can remove the sections for thermal (heat) generation .
5.4.1 Basic Operation of Existing Energy System
Describe the basic operat ion of the existi ng energy system including : description of control system ;
spinn i ng reserve needs and variabi li ty in generation (any high loads brought on quickly); and
current voltage, frequency, and outage issues across system . See the "Understand i ng the Existing
System" section of the appropriate Best Practice Checkl ist for additional guidance .
Not applicable . Th is research focuses on engineering analysis and si mu lation , and w ill not
construct any energy system at the current phase .
AEA 2 10 10 Pag e 19 of34 7/20/2020
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ALASKA
ENERGY
AUTHORITY
There is no existing geothermal system at Hot Spring Bay Valley . All commun ities on Akutan Island
use a diesel pow er plant and a hydro plant for primary power generation .
5.4.2 Existing E ner gy Generation Infrastructure and Production
In the follow ing ta bles, only fi ll in areas below applicable to your project. You can remove extra
tables. If you have the data be low in other formats , you can attach them to the application (see
Section 11 ).
5.4.2.1 Existing Pow er Generation Units
Include for each unit include : resource/f uel, make/model, design capacity (kW), minimum
operational load (kW), RPM , e lectronic/mechanical f uel injection , make/model o f genset
controllers, hours on genset
Unit 1 :
Unit 2 :
Unit 3 :
Unit 4 :
Unit 5 :
Unit 6 :
Is there ope rat ional heat recovery? (Y/N) If yes estimated
an nua l d isplaced heat ing fue l (gallons)
5.4.2.2 Ex i sting Di stribut io n System
Describe the basic elements of the distribution system. Include the capacity of the step-up
transformer at the pow erhouse , the distribution voltage (s) across the community , any transmission
voltages , and other elements that w ill be affected by the proposed project.
The City of Akutan has a power distribution system that is used to configure and distribute the electric
power generated by a diesel power plant and a hydro plant. Th is pow er distribution system shou ld
be able to distribute the pow er generated from a potentia l geothermal plant as w ell.
5.4.2.3 Ex isting Thermal Generation Units (if applicable to your proj ect)
Generatio Resourc Design Make Model Average Year Hours
n unit e / capacity annual lnstalle
Fuel type (MMBtu/h e fficienc d
r ) y
5.4.2.4 O &M a nd re placem ent cost s for
existing units
Power Generatio n Therma l Generatio n
i. A nnual O&M cost for labor
ii. A nnual O&M cost for non-labo r
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iii. Replacement sched ule and cost for
existing units
ALASKA
ENERGY
AUTHORITY
5.4.2.5 Annua l Electrici ty Production and Fuel Consumpt ion (Ex isting System )
Use most recent year. Replace the section (Type 1 ), (Type 2), and (Type 3) with generation
sources
Month Generati Generati Generati Fuel Fue l Pea Minimu
on on (Ty pe on (Ty pe Consum pti Consumpti k m Load
(Ty pe 1) 2 ) 3 ) on on Loa
(kWh ) (kW h ) (kWh ) (D iesel-[Other] d
Gallons )
January
Fe b ruary
March
Apri l
May
June
July
August
Septembe
r
October
Novem ber
Decem ber
Total
5.4.2.6 Annua l Heating Fuel Consumption (Ex isting Sy stem )
Use most recent year. Include only if your project affects the recovered heat off the diesel
genset or will include electric heat loads. Only include heat loads affected by the project.
Month Diesel Electricity Propane Coa l W ood Other
(Gallons ) (Gallons ) (Tons ) (Cords,
green tons,
dry tons)
January
Fe b ruary
March
Apri l
May
June
July
August
Septembe
r
October
Novem ber
Decem ber
AEA 21010 Page 21 of34 7/20/2020
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I Total
5.4 .3 Future T rends
ALASKA
ENERGY
AUTHORITY
Describe the anticipated energy demand in the community , or w hatever w ill be affected by the
project, over the life of the project. Explain how the forecast was developed and provide year by
year forecasts. As appropriate, include expected changes to energy demand, peak load, seasonal
variations, etc. that will affect the project.
The most s ignificant way of mitigating climate change is to decrease the use of fossil fue ls and
increase the share of renewable energy i n the globa l energy inventory. It is w ith reasonab le
expectation that the percentage of geothermal energy in A laska energy maps w ill keep increasing.
Moreover, this project wi ll benefit the City of Akutan and the nearby seafood faci lities by advancing
the deve lopment of renew ab le geotherma l energy.
5.4.4 Pro p osed System Desi g n
Provide the followi ng i nformation for the proposed renewable ene rgy system:
• A description of renew able energy technology specific to project location
• The total proposed capacity and a description of how the capacity w as determined
• Integration p lan, including upgrades needed to existing system(s ) to integrate renew able
energy system: Include a description of the controls, storage, secondary loads, distribution
upgrades that w ill be included in the project
• Civil infrastructure that w ill be completed as part of the project-buildings, roads, etc.
• Include w hat backup and /or supplemental system w ill be i n place
See the "Proposed System Design " section of the appropriate Best Practice Check list for add itional
gu idance .
Considering the temperatu re at the HSBV site is over -150 oc . a bi nary pow er plant is expected to
be built at HSBV site in the future . How ever, this project focuses on engineering ana lysis and design ,
in an attempt to lay the re li able foundation for the future construction phase.
5.4.4.1 Proposed Pow er Generation Units
Unit# Resourc Design Make Model Expecte Expecte Expected
e / capacity d d li fe A v ailability
Fuel type (kW) capacity (years)
factor
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5.4.4 .2 Pro p o sed Thermal Generation Units (if applicable)
G eneration Resourc Design Make Model
unit e/ c a pacity
Fuel t y pe (MMBtu /h
r)
5.4.5 Bas i c Operati on of Pro p osed En ergy System
Expected
A v erage
annua l
efficiency
ALASKA
ENERGY
AUTHORITY
Ex pected
life
• To the best extent possible , describe how the prop osed energ y system w ill operate: W hen w ill
the sy stem operate , how w ill the system integrate w ith the existing system , how w ill the
control sy stems be used , etc.
• W hen and how w ill the backup system (s) be expected to be used
See the "Prop osed System Design " section of the appropriate Best Practice Checklist for additi onal
guidance.
I Not applicable .
15.4 .3.1 Expected Capacity Factor I %
5.4.5.2 Annual Electricity Production and Fuel Consumption (Proposed Sy stem)
Month Generatio Generatio Generatio Fue l Fuel Secondar Storag
n n n Consumptio Consumptio y load e
(Propose (T ype 2 ) (T ype 3 ) n n (kW h ) (kW h )
d Sy stem ) (kW h ) (kW h ) (Diesel-[Other]
(kW h ) Gallons)
January
Fe b ruary
March
April
Mav
June
July
August
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Septembe
r
October
Novem ber
Decem b er
Total
5.4.5.3 Annual Heat i ng Fu el Consumpt i o n (Pro po s ed System)
Month D iesel Electri c ity Propa ne Coal
(Ga ll ons ) (G a ll ons) (To ns)
January
February
Marc h
A p r il
May
June
July
A ugus t
Septe m be
r
Octo ber
Novem ber
Decem ber
Total
W ood
(Cords,
g re e n to n s ,
d ry tons)
5.4.6 Proposed System Ope rating and Maintenance (O&M) Costs
ALASKA
ENERGY
AUTHORITY
Other
O&M costs can be estim ate d in two ways fo r the st andard app li ca ti o n. Most proposed ren ew ab le
en ergy projects w ill fall under Option 1 because th e new reso urce w ill not allow for di esel
generation to be turn ed off. Some proj ects may allow fo r diesel generation to be turne d off fo r
periods of time ; these projects shoul d choose Opti on 2 fo r estim ating O&M .
Option 1: Diesel qeneration ON
For projects that do not result in shutting_ down $
diesel generation there is assumed to be no
impact on the base case O&M. Please indicate
the estimated annual O&M cost associated with
the propos ed renewable project.
Option 2: Diesel generati o n OFF
For projects that will result in shutting_ down
diesel gen eration please estimate:
1. Annual non-fuel savings of shutting off 1. $
diesel generation
2. Estimated hours that diesel generation 2. Hours diesel OFF/year:
will be off per year.
3 . $
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5.4.7
Annual O&M costs associated with the
ro osed renewab le ro ·ect.
Fuel Costs
ALASKA
ENERGY
AUTHORITY
Estimate annual cost for all app licable fuel (s) needed to ru n the p ropos ed system (Year 1 of
operation)
Diesel E lectricity
(Gallons)
Un it cost
($)
A nnual
Un its
Total
A nnual
c o st ($)
5.5 Performanc e and O&M Reporting
For construction projects only
5.5.1 Metering Equipment
Propane Coal Wood Other
(Gallon s) (T ons)
Please provide a short narrat ive, an d cost estimate, id entifyi ng the meterin g equi pmen t that w ill be
used to co mply w ith th e operations reportin g requ i rement identifi ed in Secti on 3 .1 5 of the Request
for App li ca tion s.
I Not applicabl e.
5.5.2 O&M reporting
Please provide a short narrat ive about th e method s th at w ill be used to gath er and store re li able
ope ratio ns and mai nten an c e data , in cl udi ng costs, t o co mply w ith th e operations re portin g
requirement identified i n Secti on 3 .15 of the Request for Applications
I Not applicabl e.
I SECTION 6-ECONOMIC FEASIBILITY AND BENEFITS
6.1 Economic Feasibility
6.1.1 Economic Benefit
Annu al Lifetime
A ntici pated D iesel Fuel D ispl ac ed fo r
Powe r Generation (gall ons )
A ntici pated Fu el Disp la c ed fo r Hea t
(gallons)
Total Fu el disp laced (Qall on s)
A ntici pated D iesel Fuel D ispl ac ed fo r
Powe r Gene ration ($)
A ntici pated Fu el Disp la c ed fo r Hea t ($)
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Anticipated Powe r Generation O&M Cost
SavinQs
Anticipated The rma l Generation O&M Cost
SavinQs
Total Other costs savings (taxes,
insurance , etc.)
Total Fue l, O&M , and Other Cost Savings
6.1.2 Economic Benefit
ALASKA
ENERGY
AUTHORITY
Explain the economic benefits of your project. Include direct cost savings and other economic
benefits , and how the people of Alaska will benefit fro m the project. Note that additional revenue
sources (such as tax credits or green tags) to pay for operations and /or fi nancing, will not be
included as economic benefits of the project.
Where appropriate , descri be the anticipated energy cost in the community , or whatever will be
affected by the project, over the life of the project. Expla in how the fo recast was developed and
provid e year-by-year fo recasts
The economic model used by AEA is available at www.akenergyauthoritv.org/What-We-Do/Grants-
Loans/Renewab le-Energy-Fund-REF-Grants/2020-REF-App li cation . This economic model may be
used by applicants but is not required. The final benefit/cost ratio used will be derived from the
AEA model to ensure a level playing field for all applicants. If used, please submit the model with
the application.
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ALASKA
ENERGY
AUTHORITY
The City of Akutan and the nearby seafood facilities create high energy demand , but so far they
mainly use the imported fossil fuels w ith high costs for power generation. This project aims to
advance the development of geothermal energy at Hot Springs Bay Valley to provide rene wable and
clean energy for the communities across Akutan Islands. Compared to the imported fossil energy ,
geothermal energy is very practical and feasible from an economic standpoint. As indicated by the
Geothermal Energy Association , about half of geothermal plants operate on public lands generating
revenue for state , municipal and federal governments, despite the many environmental benefits
associated w ith geothermal plants. Moreove r, geotherma l resources tend to be located in rural areas
and require local workforce support, a geothermal p lant w ould be able to employ a vast dive rsity of
loca l workers from conception to imp lantation.
Drilling a single geothermal well can cost as much as millions of do ll ars. A systematic engineering
plan can potentia ll y save millions of dollars by better targeting the promising geothe rmal reservoirs,
mitigating seismic risks, and avoiding "dry hole" drillings. In addition, the w orkflow/method validated
in this p roject can be adopted and applied to future projects, thus saving precious labor-hours and
the costs of exploring the poorly ta rgeted geothermal reservoirs.
6.1.3 Eco no mi c Ris ks
Discuss potential issues that could make the project uneconomic to operate and how the p roject
team w ill address the issues. Factors may include:
• Low prices for diesel and /or heating oil
• Othe r p rojects developed in community
• Reductions in expected energy demand: Is there a risk of an insufficient market for ene rgy
produced over the life of the project.
• Defe rred and /or inadequate faci lity maintenance
• Othe r facto rs
The project mainly involves laboratory expe riments, theoretical analysis, and nume rica l simu lation,
and thus having no economic risks. Moreove r, the objective of this p roject is to develop a suitab le
strategy/workflow capab le of mitigating economic risks and ensuring the success of engineering
HSBV and the other geothermal systems in Alaska.
6.1.4 Public B en efit for Proj ects with Di rect Private Sector Sa l es
For projects that include direct sa les of power to private sector businesses (saw mills, cruise ships,
mines, etc.), p lease provide a brief description of the direct and indirect pub lic benefits de rived from
the project as well as the private sector benefits and comp lete the table below . See Section 1.6 in
the Request for App lications for more information.
Not applicable for this project since it only focused on Phases 1 & 2.
Renewable energy resource availability (kWh pe r month )
Estimated direct sales to private sector businesses (kWh )
Revenue for disp lacing diese l generation for use at private sector businesses ($)
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6.2 Other Public Benefit
ALASKA
ENERGY
AUTHORITY
Describe the non-economic public benefits to Alaskans over the lifetime of the project. For the
purpose of evaluating this criterion, public benefits are those benefits that would be considered
unique to a given project and not generic to any renewable resource. For example, decreased
greenhouse gas emission, stable pricing of fuel source, won 't be considered under this category.
Some examples of other public benefits include:
• The project will result in developing infrastructure (roads, trails, pipes, power lines, etc.) that can
be used for other purposes
• The project will result in a direct long-term increase in jobs (operating, supplying fuel, etc.)
• The project will solve other problems for the community (waste disposal, food security, etc.)
• The project will generate useful information that could be used by the public in other parts of the
state
• The project will promote or sustain long-term commercial economic development for the
community
Climate change caused by greenhouse gas emission has been one of the bigg est challenges on
Earth today . Geothermal ene rgy is a clean energy resou rce that can significantly reduce the
carbon emission and environmental po ll ution. Moreove r, geothermal energy is a renewab le
resource with high efficiency; it is suitable fo r the smallest house to the la rgest commercial spaces .
To advance geothermal technologies ensuring geotherma l ene rgy is commercially viable by 2030,
fede ral funding continues to support the research and development of geothermal energy . It is with
reasonab le expectation that mo re jobs will be created i n the geotherma l ene rgy area in the next
decades. The refore, t his project will significantly benefit the public fro m both the environmental and
economic standpoints.
Th is project aims to address the critical barriers that restrict the developmen t of geothermal energy
at Hot Springs Bay Valley. Following this project, the optimum design of HSBV site will be
recommended, and a binary geothermal plant is expected to be constructed at HSBV site of
Akutan Is la nd . The methods developed and validated in this project will be applied to engineer the
other geothe rmal sites across Alaska.
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SECTION 7-SUSTAINABILITY
ALASKA
ENERGY
AUTHORITY
Describe your plan for operating the completed project so that it will be sustainable throughout its
economic life.
At a minimum for construction projects , a business and operations plan should be attached and the
applicant should describe how it will be implemented . See Section 11.
7.1.1 Operation and Maintenance
Demonstrate the capacity to provide for the long-term operation and maintenance of the proposed
project for its expected life
• Prov ide examples of success with similar or related long-term operations
• Describe the key personnel that will be availab le for operating and maintaining the
infrastructure .
• Describe the training plan for existing and future employees to become proficient at operating
and maintaining the proposed system .
• Describe the systems that will be used to track necessary supp li es
• Describe the system will be used to ensure that scheduled ma intenance is performed
Not applicable .
7.1.2 Financial Sustainability
• Descri be the process used (o r propose to use) to account for operational and capita l costs .
• Descri be how ra tes are determined (or will be determ ined ). What process is requ ired to set
rates?
• Describe how you ensure that revenue is collected .
• If you will not be selling energy, expla in how you will ensure that the completed project will be
financially sustainable for its usefu l life.
Not applicable . Th is project is a research project focusing on engineering analys is and simulations,
and doesn 't involve the construction and operation phase.
7.1.2.1 Revenue Sources
Briefly expla i n what if any effect your project will have on electrical rates in the proposed benefit
area over the life of the project. If there is expected to be multip le rates for electricity , such as a
separate rate for intermittent heat, explain what the rates will be and how they will be determined
Collect sufficient revenue to cover operational and cap ital costs
• What is the expected cost-based rate (as cons istent with RFA requirements )
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• If you expect to have multiple rate classes , such as excess electricity for heat , explain what
those rates are expected to be and how those rates account for the costs of delivering the
energy (see AEA 's white paper on excess electricity for heat ) ..
• Annual customer revenue sufficient to cover costs
• 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)
Not applicable .
7.1.2.2 Power Purchase/Sale
The power purchase/sale information should include the following:
• Identification of potential power buyer (s)/customer(s)
• Potential power purchase/sales price-at a minimum indicate a price range (consistent with the
Section 3.16 of the RFA )
Identify the potential power buyer(s)/customer(s ) and anticipated power purchase /sales price
range. Indicate the proposed rate of return from the grant-funded project. Include letters of support
or power purchase agreement from identified customers.
Not applicable .
I SECTION 8-PROJECT READINESS
8.1 Project Preparation
Describe what you have done to prepare for this award and how quickly you intend to proceed with
work once your grant is approved.
Specifically address your progress towards or readiness to begin , at a minimum , the following:
• The phase (s) that must be completed prior to beginning the phase(s ) proposed in this application
• The phase (s) proposed in this application
• Obtaining all necessary permits
• Securing land access and use for the project
• Procuring all necessary equipment and materials
Refer to the RF A and /or the pre-requisite checklists for the required activities and deliverables for
each project phase. Please describe below and attach any required documentation .
Since the project only involves Phases 1 & 2, once the grant is approved , the project team can
start the project immediately.
As a preparation for this project, the UAF researchers have checked the labs to make sure UAF
has all the necessary equipment/facilities that are in working order to conduct all the proposed
tasks.
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AUTHORITY
The DGGS has checked their access to the database to provide necessary data to UAF for this
project, and the DGGS has successfully located the Akutan cores drilled in 2017.
8.2 Demand-or Supply-Side Efficiency Upgrades
If you have invested in energy efficiency projects that w ill have a positive impact on the proposed
project, and have chosen to not include them in the economic analysis, applicants should provide
as much documentation as possible including :
1. Explain how it w ill improve the success of the RE project
2. Energy efficiency pre and post audit reports, or other appropriate analysis,
3. Invoices for work completed ,
4. Photos of the w ork performed, and/or
5. Any other available verification such as scopes of w ork, technical draw ings, and payroll for
w ork completed internally.
Not applicable .
SECTION 9-LOCAL SUPPORT AND OPPOSITION
Describe local support and opposition , known or anticipated , for the project. Include letters.
resolutions. or other documentation of local support from the community that w ould benefit from
this project. Provide letters of support, memorandum of understandings, cooperative agreements
between the applicant, the utility, local government and project partners. The documentation of
support must be dated within one year of the RFA date of July 20 , 2020. Please note that letters of
support from legislators w ill not count tow ard this criterion .
This project has obtained significant support and endorsement from both the University of Alaska
Fairbanks (UAF) and the Alaska Division of Geological & Geophysical Surveys (DGGS). The
endorsement letters from UAF and DGGS have been attached in this application .
Since this project only involves Phases 1 & 2 and doesn 't involve an implementation Phases of 3 &
4, the support from the communities of Akutan have not been requested. It is expected to connect
and cooperate w ith the local communities during the proposed HSBV field trip.
SECTION 10-COMPLIANCE WITH OTHER AWARDS
Identity other grants that may have been previously awarded to the Applicant by AEA for this or
any other project. Describe the degree you have been able to meet the requirements of previous
grants including project deadlines, reporting , and information requests.
In 2009, University of Alaska Fairbanks w as aw arded a research project from AEA to study the
production decline of Chena Hot Springs geothermal reservoir. In the project, UAF researchers
have applied advanced reservoir models to explore the underlying mechanisms governing the
depletions of geothermal fluid temperature and pressure in Chena Hot Springs. The results have
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ALASKA
ENERGY
AUTHORITY
been used to optimize development strategy for sustaining geothermal energy production at Chena
Hot Spring , so far which is the only operating geothermal plant in Alaska.
SECTION 11-LIST OF SUPPORTING DOCUMENTATION FOR PRIOR PHASES
In the space below , please provide a list of additional documents attached to support completion of
prior hases.
Not applicable .
SECTION 12-LIST OF ADDITIONAL DOCUMENTATION SUBMITTED FOR CONSIDERATION
In the space below , please provi de a lis t of add itional information submitted for conside ration.
The additional documentations include:
1. Proj ect endorsement letter f ro m the Univers ity of Alaska Fair banks .
2. Proj ect endorsement letter f ro m the Alaska Division of Geological & Geophysical Surveys.
3. Resumes of Project PM (Dr . Yin Zhang), Co-l (Dr. Zhi Ye), and key res earche rs (Ms. Nina
Har un , Dr . Rona ld Daanen, and Dr. Sampurna Arya).
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I SECTION 13 -AUTHORIZED SIGNERS FORM
Community/Grantee Name:
University of Alaska Fairbanks
Regular Election is held:
N/A
I Authorized Grant Signer(s):
Printed Name Title
Tapiana W ra y Principal Grant & Contract
Management Officer
I Date: N/A
Term
N/A
I authorize the above person(s) to sign Grant Documents:
ALASKA
ENERGY
AUTHORITY
Signature
@ Digitally slgnoel by Taplana
Wtay
Date: 2020.09.28 15:41:47
-08'00'
Must be authorized b the hi hest rankin or anization/communit /munici
Printed Name Title Term Signature
Tapiana W ra y Principal Grant & Contract N/A
Mana ement Officer
I Grantee Contact Information :
Mailing Address: 2145 North Tanana Lo op , 008 WRRB, PO Box 757880
Phone Number:
907-474-7301
Fax Number:
907-474-5506
Email Address: u a f-ogca @ala ska .edu
Federal Tax ID #: 92-6000147
Please submit an updated form whenever there is a change to the above information.
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SECTION 14-ADDITIONAL DOCUMENTATION AND CERTIFICATION
ALASKA
ENERGY
AUTHORITY
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information and resumes of Applicant's Project Manager, Project Accountant(s),
key staff, partners, consultants, and suppliers per application form Section 3.1 , 3.4 and
3.6.
Applicants are asked to provide resumes submitted with applications in separate electronic
documents if the indi viduals do not want their resumes posted to the project web site .
B. Letters or resolutions demonstrating local support per application form Section 9.
C. For projects involving heat: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant's governing
body or management per RFA Section 1.4 that:
• Commits the organization to provide the matching resources for project at the match
amounts indicated in the application.
• Authorizes the individual who signs the application has the authority to commit the
organization to the obligations under the grant.
• Provides as point of contact to represent the applicant for purposes of this
application.
• Certifies the applicant is in compliance with applicable federal, state, and local, laws
including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic media, per RFA
Section 1. 7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Tapiana W ray
@ Digitally signed by Tapiana
Signature Wray
Date : 2020.09 .28 15:42:37
-08"00"
Title Principal Grant & Contract Management Officer
Date 09/28/2020
AEA 21010 Page 34 of34 7/20/2020
UAF BUDGET JUSTIFICATION
1
Costs discussed below are for UAF proposal, “Engineering Alaska’s Geothermal Energy- Hot
Springs Bay Valley, Akutan.” Costs are estimated based on a start date of 01 July 2021 and an
end date of 30 June 2023, 2 years).
This project is a collaboration between three partners: The University of Alaska Fairbanks, the
Alaska Division of Geological and Geophysical Surveys, and the private company Advanced
Hydrocarbon Stratigraphy. Costs below also describe the partners’ contributions to this project,
including funds to be directed toward Alaska DGGS, via a state agency to state agency funding
method (see services below) and cost share offered by AHS (see “cost share” below).
Requested Funds:
Section A: Senior Personnel Salaries:
Salaries are budgeted according to the table below.
Senior Personnel
Y1
hrs Y1 costs
Y2
hrs Y2 costs
Y1 Fringe
benefits
Y2 Fringe
benefits Total Costs
Yin Zhang 348 $28,065 487 $40,256 $8,532 $12,238 $89,091
Zhi Ye 695 $23,415 694 $23,381 $6,464 $6,454 $59,714
Sampurna Arya 174 $11,744 174 $12,039 $3,570 $3,660 $31,013
Totals $63,224 $75,676 $18,566 $22,352 $179,818
Section B: Other Personnel:
Support is requested according to the table below to support a postdoctoral researcher, who
will apply advanced numerical models to simulate heat recovery from the HSBV geothermal
reservoir (Task 4).. We have also budgeted two graduate students per year (MS level, academic
year and summer), primarily to perform the laboratory experiments (Task 1) and analyze the
seismic risks (Task 3), respectively, although they will contribute to all tasks.
Team member
Y1
hrs Y1 costs
Y2
hrs Y2 costs
Y1 Fringe
benefits
Y2 Fringe
benefits Total Costs
Postdoc (TBD) 1590 $66,960 1590 $66,960 $18,480 $18,480 $170,880
2 MS Grad Students (sum) 1280 $29,424 1280 $29,516 $2,855 $2,863 $64,658
2 MS Grad Students (acad yr) 1280 $29,424 1280 $29,516 $58,940
Grad health insurance (2) $5,373 $5,749 $11,122
Totals $125,808 $125,992 $26,708 $27,092 $305,600
A leave reserve of 20.6% is included for faculty salaries (Zhang, Arya), 12.3% for postdocs ≤
3 Years (Ye, TBD), and 0.1% for graduate students. Salaries are listed at the current rate and
include a 2.5% inflation increase for faculty. For positions that are TBD the salary used is the
lowest starting wage of the anticipated position.
Staff benefits are applied according to UAF’s Provisional FY21 fringe benefit rates. Rates
are 30.4% for faculty salaries, 28.6% for postdocs ≤ 3 Years, and 9.5% for students (summers
only). $2,687 (Y1) is also included for graduate student health care, with a 7.0% inflation
increase in Year 2. A copy of the rate agreement is available at http://www.alaska.edu/cost-
analysis/negotiation-agreements/.
UAF BUDGET JUSTIFICATION
2
Equipment:
Funds are requested to purchase a Laser Flash Apparatus ($73,284, quote attached) to
measure the thermal conductivity of the reservoir rocks and outcrops collected from the HSBV
site (Task 1). The thermal conductivity is an important input data to constrain heat flow mapping
in Task 2.
Travel:
Domestic: Funds are requested to support travel by 4 project personnel (Zhang, Ye, Harun,
Daanen) to travel to the field site at Akutan, Alaska, where they will collect the outcrops for
laboratory experiments (Task 1) and characterize the natural fault/fracture systems for seismic
risk analysis (Task 3).
The largest amount is in RT airfare, at $2,250 per person. (Akutan is located in the Aleutian
chain. Travel required: RT Fairbanks, AK/Akutan, AK. FAI-ANC(AK Airlines), ANC-Cold Bay
(AK Airlines), CB-Dutch Harbor (Grant Aviation), DH-Atun Island (Grant Aviation), AI-
Akutan, AK (helicopter, Maritime Helicopters (https://maritimehelicopters.com/akutan-
booking/). Lodging is estimated at $161/night/person and Meals & Incidentals @
$113/day/person. An additional $75/person is budgeted for ground transport (to/from airports).
Total cost for field travel for 4 people: $14,136.
Foreign: None.
All airfare cost data is based on Internet research from googlemaps.com. All Per Diem is in
accordance with GSA/JTR Regulations.
Materials & Supplies:
Funds ($6800) are requested for field supplies according to the table below.
Supplies for fieldwork Year 1
Displacement sensors (6 @ $300) $1,800
Acoustic Emission sensors (20 @ $100) $2,000
connector (10 @$50) $500
Heat Shrink tubing ($500/set) $500
Lab miscellaneous (for maintenance) $2,000
Totals $6,800
Contractual Services and Other Direct Costs:
Other services: $32,000 is estimated to ship geological core material collected at Akutan, AK
from its present location to the DGGS labs in Fairbanks, Alaska. Costs are estimated based on
advice from DGGS.
Tuition: International, non-resident tuition costs ($907 per credit for 9 credits per semester)
are included for the two graduate students. Y1 costs are estimated based on current College of
Engineering & Mines rates of $1182/credit hour, 18 credits per academic year per student. Year
2 costs include a 10% inflation increase per year.
The Alaska Division of Geological and Geophysical Surveys will participate in this project,
with Nina Harun acting as project lead and Ronnie Daanen contributing. While the DGGS team
will contribute to all tasks, in particular they will help collect relevant core samples and field
measurement data, lead the field trip, and supervise the tasks of heat flow mapping and
groundwater modeling as well. Rather than a subaward, UAF asks that the sponsor fund DGGS
UAF BUDGET JUSTIFICATION
3
directly through a state inter-agency process, to simplify project management and reduce costs
for project funding. DDGS costs are:
Year 1 =$15,236.30 Year 2=$15,236.30 Total = $30,472.60
For a breakdown of DDGS costs, see the attached itemized budget, SOW, and budget
explanation.
Indirect Costs:
Facilities and Administrative (F&A) Costs are charged based on the existing MOA between the
State of Alaska and the University of Alaska, which limits F&A for research activity to 25% of
Modified Total Direct Costs (MTDC). MTDC excludes equipment, capital expenditures, charges
for patient care, rental costs, tuition remission, scholarships and fellowships, participant support
costs and the portion of each subaward in excess of $25,000. A copy of the rate agreement is
available at: http://www.alaska.edu/cost-analysis/negotiation-agreements/.
Cost Share Funding: Per the RFP: “Matching funds are a scoring criterion and while not
required to be recommended for funding, points will be awarded to an applicant based on the
percentage of total grant costs. Matching funds can be cash or in-kind and may come from any
source not specifically prohibited. Applicants should identify the amount and source of matching
funds or other resources (collectively referred to as “match”) the applicant will contribute to the
project based on the total proposed grant project budget.”
To meet this requirement, UAF has identified salary plus related benefits and F&A costs for co-I
Zhi Ye (Year 1=$37,349; Year 2=$37,294; total=$74,643); see requested funds above for details
of the funding. Our collaborating partners, Advanced Hydrocarbon Stratigraphy, will contribute
$21,250 in analysis of the organic and inorganic volatiles entrained in Akutan rock samples.
See the attached letters of commitment from UAF and AHS.
Total cost share offered: $95,893.
Department of Natural Resources
DIVISION OF GEOLOGICAL & GEOPHYSICAL SURVEYS
þ 3354 College Road
Fairbanks, Alaska 99709-3707
Main: 907.451.5010
Fax: 907.451.5050
¨ Geologic Materials Center
3651 Penland Parkway
Anchorage, Alaska 99508
Main: 907.696.0079
Fax: 907.696.0078
September 25, 2020
To: ALASKA ENERGY AUTHORITY
The Alaska Division of Geological & Geophysical Surveys (DGGS) would like to submit this letter
of collaboration and support for the proposal:
Submitted by Dr. Yin Zhang, Engineering Alaska’s Geothermal Energy - Hot Springs Bay
Valley, Akutan
The proposed project aligns with the mission of the DGGS. This study helps establish a systematic
engineering workflow to develop Alaska’s geothermal resources. The project will contribute
specifically to developing geothermal resources on Akutan. The DGGS will benefit directly
through collection of valuable geothermal data that will be integrated into the DGGS geothermal
database. Laboratory experiments, field characterizations, and numerical modeling will enhance
our understanding of Alaskan geothermal resources.
Sincerely,
Kenneth Papp
Acting Director
Division of Geological & Geophysical Surveys
907.451.5001
kenneth.papp@alaska.gov
www.dggs.alaska.gov
Statement of Work DGGS
The DGGS will help facilitate delivery, and archiving of cores to the Alaska Geological Material Center
(DGGS) in Anchorage Alaska. The DGGS will include data from this project in the DGGS Geothermal
Database.
DGGS will help with the fieldwork to collect rock samples, using a mini corer to depth of 1 meter in
bedrock for the UAF team to analyze. DGGS will also use a Very Low Frequency Electromagnetic sensor
to measure the below ground electrical conductivity. This data will help define the conceptual model for
groundwater flow, that DGGS’s Dr Daanen will construct for this project.
DGGS will store and share data for public use following publication of final project reports.
DGGS Budget for:
UAF Proposal to AEA, Engineering Alaska’s Geothermal Energy
Salaries hours Year 1 Year 2
Nina T. Harun 112.5 $2,191.50 $2,191.50
Ronald Daanen 150 $3,500.00 $3,500.00
student intern 150 $2,500.00 $2,500.00
Salary totals $8,191.50 $8,191.50
Benefits
Nina T. Harun $1,362.75 $1,362.75
Ronald Daanen $1,800.00 $1,800.00
Student Intern $1,554.59 $1,554.59
Benefits are fixed
Benefits total $4,717.34 $4,717.34
Other costs
intern support $0.00 $0.00
Total Direct Costs $12,908.84 $12,908.84
Indirect Costs (18.03% of personnel costs)$2,327.46 $2,327.46
Total Project Costs $15,236.30 $15,236.30 $30,472.60
0.62183436
Advanced Hydrocarbon Stratigraphy
2931 West 21st Street
Tulsa, OK 74107
From: Christopher Smith (PhD), Senior Chemist with Advanced Hydrocarbon Stratigraphy (AHS)
To: Yin Zhang (PhD), Associate Professor of Petroleum Engineering with University of Alaska Fairbanks
09.25.2020
Hello Dr. Zhang,
Thank you for your time this morning to discuss our technology of analyzing the organic and
inorganic volatiles entrained in rock samples. As discussed, in addition to the geochemistry the analysis
also produces indices of permeability and mechanical strength that have shown excellent correlations to
known features in the subsurface and other traditional measurement techniques. While the technology
is typically applied to oil and gas work, and more recently to carbon capture and sequestration
operations, AHS is presently exploring how our technology can be best applied to geothermal energy
applications. As we discussed this morning, part of what we are seeking is to analyze core and/or cuttings
samples from established geothermal energy projects/investigations. Based on our discussions, it is our
understanding that a core exists for one of the study areas in Alaska that you plan to work on in the near
future. Assuming that the core in interest is 50 ft in length, AHS is happy to offer to analyze the core at 1
ft intervals for a total of 50 samples at our cost.
Presently, the technology and associated assistance in interpreting the data is commercially
offered by our business partners under the trade name Volatiles Analysis Service (VAS) and used by
multiple oil and gas operators in Alaska. A breakdown of the standard costs such an analysis for 50
samples would cost an oil and/or gas operator in Alaska is shown on the next page. Again, AHS is happy
to undertake this analysis at our costs.
We look forward to the opportunity to work together Dr. Zhang with you and your colleagues
moving forward to help build this burgeoning field in Alaska.
Kind regards,
Christopher Smith (PhD)
Senior Chemist
Advanced Hydrocarbon Stratigraphy
+1.918.520.3077
christopher@advancedhydrocarbon.com
Service Description Material Code Product Code Pre-Requisite Task Charge [US$]
Unit Charge Requested
volume
Quote
[US$] Well/
Sample
Project Setup and Log Delivery(1) 10542310 VAS.099 5,000 Per well 1 $ 5,000.00
Online Data Archive & Recovery(2) 10555172 VAS.095 2,500 Per well 1 $ 2,500.00
Sample Container (Kit) 10553166 VAS.098 7 Per sample 50 $ 350.00
Sample Containers (Kits) Utilized for Analysis 5 Per sample 50 $ (250.00)
VAS Sample Preparation at Laboratory(3,4) 10542361 VAS.100 45.5 Per sample 50 $ 2,275.00
VAS Sample Preparation at Wellsite(3,4) 10542362 VAS.110 108 Per sample 0 -
VAS Volatiles Analysis(3,4,5) 10542363 VAS.200
VAS.099 and
VAS.095;
VAS.100 or
VAS.110 182 Per sample 50 $ 9,100.00
VAS Rock Property Analysis(5) 10542364 VAS.300 VAS.200 45.5 Per sample 50 $ 2,275.00
API Analysis
Preparation of polished thick sections 10556953 VAS.700 113 Per Section 0 -
UV microscope survey of sample for
oil Inclusions to find workable samples. 10556953 VAS.800 113 Per Section 0 -
API determination on individual oil Fluid Inclusions 10556955 VAS.900 150 Per Inclusion 0 -
$ 21,250.00
Standard pricing that would be offered for Volatiles Analysis Service on 50 samples from an oil and/or gas operator in Alaska.