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HomeMy WebLinkAboutTDX Power NSG AEA Grant Application 9-22-14Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 1 of 35 7/2/14 Application Forms and Instructions This instruction page and the following grant application constitutes the Grant Application Form for Round VIII of the Renewable Energy Fund. A separate application form is available for projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard form for all other projects, including projects that will produce heat and electricity. An electronic version of the Request for Applications (RFA) and both application forms is available online at: http://www.akenergyauthority.org/REFund8.html. • If you need technical assistance filling out this application, please contact Shawn Calfa, the Alaska Energy Authority Grants Administrator at (907) 771-3031 or at scalfa@aidea.org. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • If you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for each phase of the project. • 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 ACC 107.605(1). • If some work has already been completed on your project and you 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. • If you have additional information or reports you 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. • In the sections below, please enter responses in the spaces provided, often under the section heading. You may add additional rows or space to the form to provide sufficient space for the information, or attach additional sheets if needed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. • In accordance with 333 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is 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. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 2 of 35 7/2/14 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) TDX Power, North Slope Generating Type of Entity: Fiscal Year End: Electric Utility September 30th Tax ID #27-0004843 Tax Status: x For-profit ☐ Non-profit ☐ Government (check one) Date of last financial statement audit: Mailing Address: Physical Address: 615 E. 82nd Ave., Suite 200 Same Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8478 907-278-2332 jlyons@tdxpower.com 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name: John Lyons Title: General Manager Mailing Address: 615 E. 82nd Ave., Suite 200 Anchorage, AK 99518 Telephone: Fax: Email: 907-762-8478 907-278-2332 jlyons@tdxpower.com 1.1.1 APPLICANT ALTERNATE POINTS OF CONTACT Name Telephone: Fax: Email: Kord Christianson 907-360-2939 907-278-2332 kord@tdxpower.com Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 3 of 35 7/2/14 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) x An electric utility holding a certificate of public convenience and necessity under AS 42.05, or ☐ An independent power producer in accordance with 3 AAC 107.695 (a) (1), or ☐ A local government, or ☐ A governmental entity (which includes tribal councils and housing authorities) 1.2 APPLICANT MINIMUM REQUIREMENTS (continued) Please check as appropriate. x 1.2.2 Attached to this application is formal approval and endorsement for the project by the applicant’s board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate by checking the box) x 1.2.3 As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement (Section 3 of the RFA). (Indicate by checking the box) x 1.2.4 If awarded the grant, we can comply with all terms and conditions of the award as identified in the Standard Grant Agreement template at http://www.akenergyauthority.org/REFund8.html. (Any exceptions should be clearly noted and submitted with the application.) (Indicate by checking the box) x 1.2.5 We intend to own and operate any project 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 will be the primary beneficiaries. (Indicate yes by checking the box) Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 4 of 35 7/2/14 SECTION 2 – PROJECT SUMMARY This section is intended to be no more than a 2-3 page overview of your project. 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Deadhorse Waste Heat to Energy Plant 2.2 Project Location – Include the physical location of your project and name(s) of the community or communities that will benefit from your project in the subsections below. 2.2.1 Location of Project – Latitude and longitude, street address, or community name. 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 at 907-771-3031. 70°11'59.60"N Latitude 148°28'0.23"W Longitude 100 Powerplant Way, Deadhorse, AK 99734 Prudhoe Bay, Alaska 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. Prudhoe Bay (Sagavanirktok) in the North Slope Borough 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type ☐ Wind ☐ Biomass or Biofuels (excluding heat-only) ☐ Hydro, Including Run of River ☐ Hydrokinetic ☐ Geothermal, Excluding Heat Pumps ☐ Transmission of Renewable Energy ☐ Solar Photovoltaic ☐ Storage of Renewable X Other (Waste Heat to Energy) ☐ Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction X Reconnaissance X Final Design and Permitting X Feasibility and Conceptual Design X Construction Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 5 of 35 7/2/14 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of the proposed project. TDX proposes to install (3) 800 kWe Organic Rankine Cycle (ORC) power generation units to generate electric power from waste heat in the flue gas of two Solar Turbine Taurus 70 gas turbines. Furthermore TDX intends to utilize low grade waste heat downstream of the ORC to pre-heat turbine inlet air to significantly improve the emissions profile at low temperatures. This new facility will require an extended 40x64’ structure to the West of the new gas turbine plant building. Approximately 10.5 MWth waste heat would be drawn from the gas turbine stacks and used to produce 2.1 MWe (net) electricity year round through the ORC system. Downstream the flue gas is exhausted through a separate stack. Systems are built on a pile foundation with an air gap. The extended facility will remain on the footprint of the existing gravel pad. Glycol fluid coolers are placed on the roof of the extension from lower level switchgear and shop rooms. Heat is intercepted downstream of the ORC and upstream of the fluid coolers and used in a coil to preheat inlet combustion air from each side of the main turbine room. (3) 800 kWe ORC (2) Existing Gas Turbine Inlet Air Dampers (2) Existing Gas Turbine Exhaust Stacks (1) Glycol Fluid Cooler (1) ORC Exhaust Stack Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 6 of 35 7/2/14 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, local jobs created, etc.) With this project TDX will reduce the variable fuel and maintenance costs associated with electric power production. Waste heat to power increases the available electric production capacity using a heat source that has no commodity cost to TDX and is not subject to any volatility. The project will demonstrate very high efficiency ORC power generation with superheat and recuperation and the productive use of waste heat to improve emissions. The approach can be replicated in many Alaskan locations that employ simple cycle gas turbines and/or reciprocating engines. With the additional electrical capacity provided, the project will reduce run-hours on peaking gas turbines to prolong life and reduce maintenance costs. It will reduce local NOx and SOx emissions from power production by warming turbine inlet air at low outside air conditions to keep emission control (OxyCat) systems optimized. In addition overall plant emissions will be reduced by 27% or 12,087 metric tons per year reduction of GHG’s. The value of this annual GHG reduction is $488,917 based up AEA’s Evaluation Tool Model mid-range benchmark price (2013) of $40.45/MT GHG. Variable cost savings are passed through to commercial and industrial customers who provide jobs, housing, and other facilities to support oil-field workers who travel in and out of the area from locations all over the State of Alaska. The block of electricity produced from ORC will cost less than the remaining block of electricity from gas turbines. The net effect is an overall reduction in cost of electricity of an estimated 5.4% If demand for LNG from the North Slope increases in the future this project would generate electricity from waste heat to flatten volatility and hedge the risks for electricity ratepayers. Competitive and reliable electricity has an economic benefit for ratepayers in Prudhoe Bay that provide jobs to Alaskan’s from other communities and natural resources revenue to the State. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. The budget outlined in this grant application is the complete budget associated with the development and turnkey installation of the proposed ORC system in an extension to the existing gas turbine plant at the site that begins operation in 2017. A heat and power purchase agreement (HPPA) will define the purchase price for heat and power and is subject to approval by the Regulatory Commission of Alaska (RCA). This HPPA will provide for outside capital investment in exchange for a contract for the sale of electricity. Total capital cost for the building extension, ORC system, balance of plant, and controls is presently estimated at $14,497,695. Funding for the project will come from Alaska Critical Energy (ACE), TDX Power (TDX), and AEA grant in the amount of $4,000,000. ACE capital contribution to the project will be made in the framework of a HPPA and the remainder will be provided by TDX. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 7 of 35 7/2/14 We understand that grant funding in each additional phase is contingent upon successfully completing an earlier phase. A summary of the anticipated project costs and source of funds in outlined below. Grantee funds apply to TDX. Other funds apply to the counterparty to a HPPA with TDX. Grant Funds Grantee Funds/Other Total Funds Phase 1: Reconnaissance $125,000 $75,000 $200,000 Phase 2: Feasibility and Concept Design $187,500 $112,500 $300,000 Phase 3: Detail Design and Permitting $544,635 $319,865 $864,500 Phase 4: Construction $3,142,865 $9,989,392 $13,131,989 Total $4,000,000 $10,497,696 $14,497,695 2.7 COST AND BENEFIT SUMMARY Include a summary of grant request and your project’s total costs and benefits below. Costs for the Current Phase Covered by this Grant (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $ 4,000,000 2.7.2 Cash match to be provided $ 10,497,695 2.7.3 In-kind match to be provided $ 0 2.7.4 Other grant funds to be provided $ 0 2.7.5 Total Costs for Requested Phase of Project (sum of 2.7.1 through 2.7.4) $ 14,497,695 Other items for consideration 2.7.6 Other grant applications not yet approved $ 0 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 8 of 35 7/2/14 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.7 Total Project Cost Summary from Cost Worksheet, Section 4.4.4, including estimates through construction. $13,717,479 present value at 3% cost of capital over the duration of the construction of the project $ 14,497,695 total cost 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects $ 0 No additional performance monitoring equipment was included. Regular operations require utility grade performance monitoring equipment and instrumentation 2.7.9 Estimated Direct Financial Benefit (Savings) The economic model used by AEA is available at www.akenergyauthority.org/REFund8.html. This economic model may be used by applicants but is not required. Other economic models developed by the applicant may be used, however the final benefit/cost ratio used will be derived from the AEA model to ensure a level playing field for all applicants. $17,556,738 present value at 3% cost of capital $904,172 in first year of operation based on 227,751 MMBtu of natural gas fuel savings for gas turbine electricity production at a cost of $3.97/MMBtu. These savings are assumed to escalate at 3% per year for 20 years. 2.7.10 Other Public Benefit If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in Section 5 below. $ 9,493,534 present value at 3% cost of capital $488,917 in first year of operation based on 12,087 metric tons of carbon dioxide reduction per year. SECTION 3 – PROJECT MANAGEMENT PLAN Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 9 of 35 7/2/14 Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include contact information, a resume and references for the manager(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. 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. John Lyons, TDX General Manager, will act as Project Manager. His resume is attached. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 10 of 35 7/2/14 3.2 Project Schedule and Milestones Please fill out the schedule below. Be sure to identify key tasks and decision points in in your project along with estimated start and end dates for each of the milestones and tasks. Please clearly identify the beginning and ending of all phases of your proposed project. Please fill out form provided below. You may add additional rows as needed. Milestones Start Date Calendar Days End Date Reconnaissance 01-Jul-15 Phase 1 Total 31-Oct-15 Project scoping and contractor solicitation 01-Jul-15 30 31-Jul-15 Resource identification and analysis 15-Jul-15 15 30-Jul-15 Land use, permitting, and environmental analysis 01-Aug-15 45 15-Sep-15 Preliminary design and cost analysis 15-Aug-15 20 04-Sep-15 Cost of energy and market analysis 01-Sep-15 30 01-Oct-15 Simple economic analysis 01-Oct-15 15 16-Oct-15 Final report and recommendations 16-Oct-15 15 31-Oct-15 Feasibility Analysis and Concept Design 31-Oct-15 Phase 2 Total 26-Apr-16 Project scoping and contractor solicitation 31-Oct-15 30 30-Nov-15 Detailed resource assessment 31-Oct-15 30 30-Nov-15 Identification of land regulatory issues 15-Dec-15 30 14-Jan-16 Permitting and environmental analysis 15-Dec-15 90 14-Mar-16 Detailed analysis of current cost of energy and future market 15-Jan-16 20 04-Feb-16 Assessment of alternatives 15-Jan-16 20 04-Feb-16 Conceptual design and costs estimates 15-Feb-16 30 16-Mar-16 Detailed economic and financial analyses 15-Mar-16 20 04-Apr-16 Conceptual business & operations plan 15-Mar-16 30 14-Apr-16 Final report and recommendations 14-Apr-16 10 24-Apr-16 Final Design & Permitting 24-Apr-16 Phase 3 Total 20-Nov-16 Project scoping and contractor solicitation 24-Apr-16 45 08-Jun-16 Permit applications 23-Jul-16 120 20-Nov-16 Final environmental assessment and mitigation plans 23-Jul-16 120 20-Nov-16 Resolution of land use, right of way issues 24-Apr-16 90 23-Jul-16 Permitting, right-of-ways, site control 24-Apr-16 90 23-Jul-16 Final system design 24-Apr-16 90 23-Jul-16 Final cost estimate 23-Jul-16 30 22-Aug-16 Updated economic and financial analyses 22-Aug-16 30 21-Sep-16 Power or heat sale agreements in place 20-Nov-16 30 20-Dec-16 Final business and operational plan 23-Jul-16 120 20-Nov-16 Project Requirements – Construction 20-Nov-16 Phase 4 Total 05-Nov-17 Design & feasibility requirements 20-Nov-16 20 10-Dec-16 Bid documents 20-Nov-16 30 20-Dec-16 Vendor selection and award 20-Dec-16 15 04-Jan-17 Construction – unique to each project 04-Jan-17 245 06-Sep-17 Integration and testing 06-Sep-17 45 21-Oct-17 Final acceptance, commissioning and start-up 21-Oct-17 15 05-Nov-17 Operations 05-Nov-17 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 11 of 35 7/2/14 3.3 Project Resources Describe the personnel, contractors, personnel or firms, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. Include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. Alaska Critical Energy, LLC (ACE) – will be the counterparty with TDX in a planned heat and power purchase agreement (HPPA) and will be a provider of support, major equipment, and off-site system construction where applicable though all phases of the project. ACE is a joint venture of University Mechanical, a large Seattle area mechanical contractor, and Supercritical Technologies who together are developing waste heat to energy projects in Alaska. TDX and ACE anticipate using much of the same team that successfully supported development and construction of the gas turbine plant for the experience they have with this specific site and its power generation systems. With our counterparty to the HPPA We have begun to communicate with each of these potential contractors and suppliers about the project but firm commitments would be premature until there is more detail about the project developed during Phase 1 and Phase 2. Peak Oilfield Service Co. – Technical support and construction associated with civil, pile, and structural necessary to prepare the building extension for use as an ORC power generation plant. Conam Construction Company – Technical support and construction associated with the balance of plant systems necessary to put the equipment into operation. SLR International Corporation – Environmental and air permitting for TDX North Slope Generating Station. Marsh Creek LLC – Owners engineering consulting support during project development, construction, and commissioning University Mechanical Contractors – Fabrication of the ORC system integrating the Barber Nichols core turbo-machinery. Design and construction support. Supercritical Technologies – ORC system design, integration, and commissioning support 3.4 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Please provide an alternative contact person and their contact information. John Lyons is listed as project manager in Section 1.1 of this grant. John will be the primary contract with the Alaska Energy Authority (AEA) and he will coordinate with the ORC electricity provider and contractors as necessary. Regular status updates on the project will be made in writing on a quarterly basis and at the completion of each phase. Kord Christianson is listed as alternate contact in Section 1.1.1 of this grant. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 12 of 35 7/2/14 With TDX support, Alaska Critical Energy LLC (ACE) will help plan and deliver presentations as necessary on each phase of the grant as the project develops led by Eric Moe (206-890-3266, emoe@umci.com) and Chal Davidson (518-225-3275, cdavidson@supercriticaltech.com) who represent each joint venture partner in ACE. 3.5 Project Risk Discuss potential problems and how you would address them. Technology Risk: Organic rankine cycle (ORC) power generation is not broadly used in Alaska. However ORC is a mature technology. Our HPPA counterparty and their technical advisors, including Barber Nichols, have experience with the technology and its application. (http://www.barber-nichols.com/industries/energy). Construction Risk: Extreme weather and temperatures on the North Slope of Alaska pose a challenge to successful project implementation and operation. The risk is mitigated by TDX’s extensive experience in the establishment and management of remote power projects in Alaska. Performance Risk: The key performance risk is that the ORC system underperforms and produces less power than anticipated. The HPPA will guide the performance requirements and set the financial incentives necessary to ensure successful energy production, minimum output, and uptime. Systems will be in place to maintain minimum temperatures and additional procedures in place to manage cold temperature shut down and startup. Systems will be maintained by 24/7/365 operating staff and remotely monitored by the manufacturer. Regulatory Risk: The ORC system in this application will extract waste heat from the gas turbine stacks for heat recovery and exhaust the flue gas from a separate stack. Air permit will be required that addresses lower temperature output but expect the regulatory authorities to look favorably upon the project as a means to produce additional power from waste heat. Regulatory approval is required for the HPPA. Revenue Risk: Loss of customers could lead to a loss of electrical demand necessary to produce the waste heat necessary for the full production capacity of the ORC system. The ORC will be built with three 800 kWe units should the load decline which will enable greater rangeability. 3.6 Project Accountant(s) Tell us who will be performing the accounting of this Project for the Grantee and include contact information, a resume and references for the project accountant(s). In the electronic submittal, please submit resumes as separate PDFs if the applicant would like those excluded from the web posting of this application. If the applicant does not have a project accountant indicate how you intend to solicit project management support. Laura Bain, Controller - See attached resume Kristin, Canaday, Accountant – See attached resume 3.7 Financial Accounting System Discuss the accounting system that will be used to account for project costs and whom will be the primary user of the accounting system. The Accounting System: Viewpoint software which specializes in project cost accounting. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 13 of 35 7/2/14 Primary Users: Laura Bain & Kristin Canaday 3.8 Financial Management Controls Discuss the controls that will be utilized to ensure that only costs that are reasonable, ordinary and necessary will be allocated to this project. Also discuss the controls in place that will ensure that no expenses for overhead, or any other unallowable costs will be requested for reimbursement from the Renewable Energy Fund Grant Program. TDX Power Finance performs GAAP accounting. All staff is very experienced in financial controls. TDX Power has had a number of other successful grants. Because of experience with government contracts TDX Power accounting staff has knowledge of FARS. This includes having an understanding of what are allowable and unallowable costs. Staff will become very familiar with and committed to the grant terms in order to adhere to the proper controls. SECTION 4 – PROJECT DESCRIPTION AND TASKS The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. For pre-construction applications, describe the resource to the extent known. For design and permitting or construction projects, please provide feasibility documents, design documents, and permitting documents (if applicable) as attachments to this application. Each existing Taurus 70 combustion gas turbine at ISO conditions produces 7,965 kWe at a heat rate of 10,505 btu/kWh. Exhaust temperature is 945°F at an exhaust flow of 213,350 lb/hr. The OxyCat system works in a temperature range of 600-1200°F. Inefficiency produces heat that is rejected to atmosphere at a rate of 23,426 kWth assuming the power production at conditions noted above. Of that heat we assume that approximately 60% (14,056 kWth) can be readily harvested and used to produce power in a bottoming cycle with ORC technology. The three ORC units proposed require 10,500 kWth to produce 2,100 kWe net electricity so there is about 33% excess heat in one of the two gas turbines operating at 100% to produce the heat required for ORC power generation. Or in other words, as long as one turbine is operating at 75% capacity (5,974 kWe) we will be able to produce full capacity from the ORC system. In the TDX network, baseload electrical demand is as low as 5.0 MWe but is expected to grow 2.0 MWe with the aggregation of new customers. Once in operation we would expect to satisfy summer baseload conditions with one turbine operating at 4.9 MWe with the ORC generating 2.1 MWe for a total of 7.0 MWe. Off peak each turbine has even higher heat rate but the waste heat production still allows for power generation. This allows us to reduce run-time on the peaking gas turbine and to satisfy minimum load conditions and perform maintenance. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 14 of 35 7/2/14 Steam turbine generators (STG) are an alternative to ORC for power production in the bottoming cycle of a gas turbine plant. ORC systems operate more efficiently that STG at lower pressure using a refrigerant as the working fluid. This avoids high operating and maintenance costs associated with higher pressures and water chemistry. Supercritical CO2 (SCO2) power generation systems are in development in the industry for power generation and may replace larger ORC systems and prime movers in the future that are greater than 3 MWe but more likely 5 MWe. Significant technical challenges remain in the industry that will make it difficult to control SCO2 systems well in smaller applications such as this so confidence lies in ORC at the scale proposed. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The existing gas turbine plant (which will be put into operation in 2014) features two Solar Taurus 70 gas turbines with the characteristics noted below. Natural gas is the fuel source. To meet NOx requirements set by the EPA and the air permit the inlet air temperature cannot drop below -20°F. Recovered waste heat will be utilized to temper cold incoming combustion air below -20°F to above -10°F so that the OxyCat emission control system operates efficiently and the turbine operates with the lowest possible heat rate. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any impact the project may have on existing energy infrastructure and resources. The existing facility is fueled by natural gas obtained from Norgasco at a current price of about $3.97 per MMBtu. Since the project uses waste heat as the energy source it will reduce the natural gas demand. The addition of 2.1 MWe from the ORC project will enable additional customer growth without an investment in another prime mover. Furthermore it will enable a single turbine to run longer before a peaking turbine is required to satisfy electrical load conditions. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 15 of 35 7/2/14 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Total Power Generation (kWe)Hours at or Above a Given Load -Summer, 2014 TDX Power Generation -North Slope Power generation required at ISO conditions to produce enough waste heat to fully load ORC power generation to 2.1 MWe during summer baseload conditions. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 16 of 35 7/2/14 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 17 of 35 7/2/14 TDX North Slope Generation generated 66,769,397 kWh in electricity for 79 customers during the fiscal year ended 9/30/2013, an increase of 8.9% over the prior period. The three years ended 9/30/2013 averaged 10.2% increase in electricity demand. To meet growing demand TDX is in the process of installing two additional Solar Taurus 70 gas turbines, rated at 7,965 kWe each. The installation of an ORC based waste heat recovery system will increase the station’s output capacity and reduce emissions.. In addition the ORC project will flatten the impact of any fuel price volatility for customers in the rate base and help minimize regulatory risk that could impede normal operations. Lastly the ORC project will help prolong longer operation into the season with operation of a single turbine which helps reduce maintenance cost and operating flexibility. 4.3 Proposed System Describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The renewable energy technology proposed is Organic Rankine Cycle (ORC) power generation using waste heat as the primary source. The optimum installed capacity in this application is 2,400 kWe gross, 2,100 kWe net. This is a system with three units designed to produce heat year round from baseload gas turbine power production for the local community. The system is sized to create full power with as little as one gas turbine operating at 75%. The system is expected to produce a minimum of 18,042 MWh electricity per year with a capacity factor of 98%. A picture of one ORC unit is provided below. The ORC cycle was first documented by Scottish engineer William Rankine in the 1850’s and has been deployed worldwide. The ORC's principle is based on a turbo-generator working to transform thermal energy into electric energy. An ORC power system uses the same concepts as a steam engine to make electrical power, but the working fluid is typically a hydrocarbon (“organic fluid”) rather than steam. In the simplified diagram below, flue gas from the adjacent TDX gas turbine Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 18 of 35 7/2/14 plant is the heat source. Low grade heat is rejected to atmosphere at higher ambient air temperatures and to the gas turbine inlet air at lower temperatures to improve the emissions profile. In the process of our intended HPPA partner, superheat and recuperation are added to increase output and electrical efficiency. Anticipated barriers are not likely to be technical but extra care is required in evaluating the construction and operation in the extreme environment on the North Slope. TDX is confident that the footprint is available on the site to support a building extension for the ORC plant. In addition, the magnitude of waste heat available year-round is sufficient to support system operation as intended. Initial economic estimates suggest an attractive project meeting requirements of both parties to an HPPA while providing economic benefit to ratepayers. Regulatory approval will be required for the operation as well as for the HPPA. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 19 of 35 7/2/14 The diagram below reflects the site of the ORC power generation system adjacent to the existing (new) gas turbine power plant. The building extension remains on the existing gravel pad. Power will flow to TDX’s electrical grid and low grade heat to turbine inlet air when appropriate to improve combustion and the emissions profile. The ORC system will be fully integrated with existing power production and monitored both on site and remotely. Delivery of major equipment to the site will be by barge from Seattle to Prudhoe or Anchorage then by truck to Deadhorse. Funds for the project will come from TDX, its HPPA counterparty (ACE) and the AEA through a Round 8 grant. 4.3.2 Land Ownership 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. There are no land ownership issues. TDX has a 25+ year utility property lease and is sure that the system can be fully installed with an extension to the existing building that remains on the gravel pad. Access to the site is well understood from the recent efforts to complete the gas turbine plant. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 20 of 35 7/2/14 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discuss potential barriers 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or endangered species • Habitat issues • Wetlands and other protected areas • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers The proposed project is an extension to an existing facility, and therefore should pose minimal risk in altering any of the above environmental constraints. Flue gas temperatures from the ORC system will remain in the range of 200-300°F to avoid the risk of condensation in the Arctic environment that would otherwise create significant issues.. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants records or analysis, industry standards, consultant or manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 21 of 35 7/2/14 The proposed project will cost an estimated $14,497,695 with the cost of the first three phases through design and permitting $1,464,500. The total figure will be solidified through the first three phases of the project and negotiations with contractors. TDX will enter into a heat and power purchase agreement (HPPA) with Alaska Critical Energy LLC (ACE) who will make capital investments in the ORC system of approximately $9,649,350 and operate it through an O&M contract with TDX for the duration of the project. TDX will invest in site preparation needed to house, connect, integrate, and monitor the equipment. For the total project TDX requests $4,000,000 in grant funding and will provide the necessary additional cash to complete the project over and above that delivered through the HPPA. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve.) Annual operating and maintenance costs will be addressed in an O&M contract between ACE and TDX. We expect the thermal energy used to improve emissions and the cost of electrical capacity in the HPPA to be offset the maintenance revenue that we earn under the HPPA under contract. Heat will be recovered in the ORC plant and provided to the gas turbine building to displace gas consumption. 4.4.3 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 • Proposed rate of return from grant-funded project TDX provides power to 79 customers (as of 9/30/13) on the North Slope. Electricity generated by the project would be purchased by TDX from ACE at a price agreed in a HPPA during the final design and permitting phase of the project as indicated in the schedule herein. Initial analysis suggests a likely power purchase rate of between $0.1050 and $0.1250/kWh when operation starts in 2017. With the addition of TDX fixed costs and capital recovery this block of power will be sold at a rate less than the current price that the ratepayers pay providing an overall discount in the cost of power of approximately 4.8-5.4%. As a regulated electric utility the proposed rate of return would not exceed that allowed by the Regulatory Commission of Alaska, approximately 10.9% return on equity. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 22 of 35 7/2/14 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Please fill out the form provided below. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Baseload operation of a single gas turbine at 75% or higher has enough waste heat to generate 2.1 MWe power from flue gas using ORC. Operational data and load growth, and parasitic load within the gas turbine plant produces enough power and waste heat to fully load the ORC system. The resource is available year round as the powerplant operates in continuous service to customers unless there is an unscheduled interruption. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 grid, leave this section blank) i. Number of generators/boilers/other Two ii. Rated capacity of generators/boilers/other 7,965 kWe at ISO conditions iii. Generator/boilers/other type Taurus 70 combustion gas turbine iv. Age of generators/boilers/other 2014 v. Efficiency of generators/boilers/other 9,955 btu/kWh electric at ISO conditions b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $1,900,403 (FY 2013) ii. Annual O&M cost for non-labor $ 6,555,416 (FY 2013) c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] 66,769,397 (FY 2013) ii. Fuel usage Diesel [gal] Other 3,539,898 therms natural gas iii. Peak Load 12.6 MWe (get more info from TDX) iv. Average Load 7.9 MWe (YTD 2014) v. Minimum Load 5.0 MWe (based on July, 2014) vi. Efficiency 34.3% (consistent with heat rate above) vii. Future trends Increase in demand due to aggregation of self-generation loads, additional man-camp construction underway, and increased oil field support and O&M services as the oil fields age. 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 23 of 35 7/2/14 d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 0 ii. Electricity [kWh] 0 iii. Propane [gal or MMBtu] 0 iv. Coal [tons or MMBtu] 0 v. Wood [cords, green tons, dry tons] 0 vi. Other 1,722 MMBtu natural gas for turbine inlet air and 17,632 MMBtu for natural gas for heating the gas turbine building Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity (Wind, Hydro, Biomass, other) [kW or MMBtu/hr] 2,100 kW electricity, 4.1 MMBtu/h (1,202 kW thermal) Gas Turbine Flue Gas Waste Heat to Energy b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 18,012,750 kWh ii. Heat [MMBtu] 1,732 MMBtu for turbine inlet air heated to -10°F and 17,632 MMBtu for gas turbine building heating vs. gas c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] 0 ii. Coal [tons or MMBtu] 0 iii. Wood or pellets [cords, green tons, dry tons] 0 iv. Other 292,676 MMBtu waste heat, 21.0% electrical efficiency Project Cost a) Total capital cost of new system $14,497,695 (assumed to include development cost) b) Development cost $1,364,500 (assumed to be phases 1-3) c) Annual O&M cost of new system $197,338 d) Annual fuel cost $0 (waste heat) Project Benefits a) Amount of fuel displaced for i. Electricity 2,083,350 therms natural gas per year ii. Heat 1,934,000 therms natural gas per year iii. Transportation 0 b) Current price of displaced fuel $0.397/therm natural gas assumed in 2017 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 24 of 35 7/2/14 c) Other economic benefits $448,917/year GHG reduction at $.4045/kWh d) Alaska public benefits Emission reductions, industry competitiveness, model for other turbine or internal combustion applications throughout Alaska Power Purchase/Sales Price a) Price for power purchase/sale Power prices in a HPPA between TDX and ACE will be determined in the Final Design and Permitting Phase of the project. At this stage, purchase price is estimated to be between $0.1050 and $0.1250/kWh, and the sale price approximately 4.8 to 5.4% less than what the utility rate base is paying for power now. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio 1.97 based on PV savings / PV capital cost Payback (years) 10.41 years without grant funding, 7.54 years with grant funding 4.4.5 Impact on Rates Briefly explain what if any effect your project will have on electrical rates in the proposed benefit area. If the is for a PCE eligible utility please discuss what the expected impact would be for both pre and post PCE. The project would serve to reduce project fuel consumption, and therefore the cost of generation. Wherein the cost of power to Deadhorse (including COPA) has averaged $0.2082/kWh during fiscal-year-to-date 2014, the implementation of a waste heat recovery project at the site would reduce relative fuel consumption and thus reduce the need for customers to pay COPA charges, which sometimes account for 40% or more of the cost of electricity. Furthermore, the project would create certainty in the future cost of the block of power produced with this asset and flatten the risk of volatility in fuel prices to the ratepayer who bears that risk. Net impact on electricity rates is expected to be in the 4.8-5.4% range and will be determined during the negotiations of the HPPA in the final design and permitting phase of the project. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 25 of 35 7/2/14 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Potential annual fuel displacement is 227,751 MMBtu which equates to 1,632,624 gallons diesel equivalent. Based on a natural gas price of $3.97 per MMBtu escalated by 3% over the life of the project we estimate $17,556,738 in natural gas fuel savings over the minimum 20 year life of the project which represents a decrease in rates of approximately 5.4%. Subject to further analysis and regulatory approval, annual revenue for the block of power sold into the electrical network would be $2,462,764 per year with a $0.1365/kWh assumption escalating at 3% per year. Tax credits are not assessed for the production of renewable power from waste heat. TDX will receive and additional revenue stream from the operation and maintenance of the ORC system but it is expected to be fully offset by an electrical capacity and heat charge. Alaskans will benefit from the project from reduced local emissions as well as 12,087 metric tons carbon emission reductions per year at a value of $488,917. Lower rates and emission create competitiveness in the oil and gas industry on the North Slope. Demonstration of a remarkable project may be replicated in other parts of the state and highlight the resource opportunity and economic value of waste heat for energy generation. 5.1 Public Benefit for Projects with Private Sector Sales Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines, etc.), please provide a brief description of the direct and indirect public benefits derived from the project as well as the private sector benefits and complete the table below. See section 1.6 in the Request for Applications for more information. Renewable energy resource availability (kWh per month) 1,533,000 kWh/month at a capacity factor over 95%, available anytime the primary turbines are running, unlike many other intermittent renewables like wind and solar Estimated sales (kWh) 360,255,000 kWh (over 20 years) Revenue for displacing diesel generation for use at private sector businesses ($) $66,175,404 (natural gas over 20 years with 3% annual escalation) Estimated sales (kWh) Revenue for displacing diesel generation for use by the Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 26 of 35 7/2/14 Alaskan public ($) Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 27 of 35 7/2/14 SECTION 6– SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered. • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on-going support for any back-up or existing systems that may be require to continue operation • Commitment to reporting the savings and benefits The proposed business structure is a 20-year heat and power purchase agreement (HPPA) between TDX Power (TDX) and Alaska Critical Energy LLC (ACE). The HPPA will have financial metric incentives (capacity, reliability, and net output performance) to insure ORC system performance. ACE will finance its portion of the project with equity and a loan against future cash flows defined by the HPPA. Operations and maintenance will be managed under contract between ACE and TDX, designed to offset electric capacity and other energy charges. Major overhaul and repair of ORC systems will be the responsibility of ACE. For TDX, the proposed project will be an addition to the existing operation that has a demonstrated reliability of 98%. TDX purchase this utility in 2003, doubled generation capacity in 2007, and will double generation capacity again by December 2014 to continue reliable utility operations. The ORC project will improve cash flows and the company’s ability to continue the meet the growing demand for energy on the North Slope. Operational issues that could arise include system failures and weather presenting challenges in servicing equipment with off-site personnel should there be an unscheduled interruption. In addition over the life of the project there could be a reduction in electrical demand on the grid due to reductions of oil field support services centered in Deadhorse that reduces the amount of available waste heat for power generation. TDX and ACE are committed to reporting the savings and benefits to AEA annually. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 28 of 35 7/2/14 Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. TDX North Slope has successfully operated the North Slope generating facility since 2003. The facility is growing and currently in the process of completing a project to install 15 MWe new production capacity. We are prepared to proceed quickly if the grant is approved. There has been an initial technical and economic analysis performed and a preliminary assessment of the physical layout of major equipment at the site. There has been extensive communication between TDX, ACE (the HPPA counterparty), and various contractors that would be required to support development of the project. SECTION 8 – LOCAL SUPPORT AND OPPOSITION Discuss local support and opposition, known or anticipated, for the project. Include letters of support or other documentation of local support from the community that would benefit from this project. The Documentation of support must be dated within one year of the RFA date of July 2, 2014 We do not know of any local support or opposition to the intended project. We anticipate that the effort will be viewed favorably by both regulatory authorities and ratepayers. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 29 of 35 7/2/14 SECTION 9 – GRANT BUDGET Tell us how much you are seeking in grant funds. Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. 9.1 Funding sources and Financial Commitment Provide a narrative summary regarding funding source and your financial commitment to the project TDX is seeking $4,000,000 total in grant funds. We understand that grant funding in each additional phase is contingent upon successfully completing an earlier phase. A summary of the anticipated project costs and source of funds in outlined below. Grantee funds apply to TDX. HPPA funds apply to the counterparty to TDX in a heat and power purchase agreement which is intended to be Alaska Critical Energy LLC (ACE). Grant Funds Grantee Funds/HPPA Total Funds Phase 1: Reconnaissance $125,000 $75,000 $200,000 Phase 2: Feasibility and Concept Design $187,500 $112,500 $300,000 Phase 3: Detail Design and Permitting $544,635 $319,865 $864,500 Phase 4: Construction $3,142,865 $9,989,392 $13,131,989 Total $4,000,000 $10,497,696 $14,497,695 TDX North Slope Generating has demonstrated its ability to expand and finance required power generation and distribution upgrades and expansion since acquiring the utility in 2003 To the extent that additional cash is needed to build out, or to operate the proposed project on a short- term basis, TDX has proven itself a creditworthy borrower with access to debt capital. 9.2 Cost Estimate for Metering Equipment Please provide a short narrative, and cost estimate, identifying the metering equipment, and its related use to comply with the operations reporting requirement identified in Section 3.15 of the Request for Applications. Instrumentation and metering equipment for an electric utility plant is part of the normal course of business in running a regulated electric utility and will be included in the project and integrated with the existing control and metering systems. TDX will comply with the operations reporting requirement. Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 30 of 35 7/2/14 Applications MUST include a separate worksheet for each project phase that was identified in section 2.3.2 of this application, (I. Reconnaissance, II. Feasibility and Conceptual Design, III. Final Design and Permitting, and IV. Construction and Commissioning). Please use the tables provided below to detail your proposed project’s budget. Be sure to use one table for each phase of your project. If you have any question regarding how to prepare these tables or if you need assistance preparing the application please feel free to contact AEA at 907-771-3031 or by emailing the Grants Administrator, Shawn Calfa, at scalfa@aidea.org. Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Part 1 - Reconnaissance Project scoping and contractor solicitation 31-Jul-15 $31,250 $18,750 Cash $50,000 Resource identification 30-Jul-15 $31,250 $18,750 Cash $50,000 Land use, permitting, and environmental 15-Sep-15 $12,500 $7,500 Cash $20,000 Preliminary design and cost analysis 04-Sep-15 $18,750 $11,250 Cash $30,000 Cost of energy and market analysis 01-Oct-15 $12,500 $7,500 Cash $20,000 Simple economic analysis 16-Oct-15 $12,500 $7,500 Cash $20,000 Final report and recommendations 31-Oct-15 $6,250 $3,750 Cash $10,000 TOTALS $125,000 $75,000 Cash $200,000 Budget Categories: Direct Labor & Benefits $75,000 $75,000 Cash $150,000 Travel & Per Diem $20,000 $0 Cash $20,000 Equipment $0 $0 Cash $0 Materials & Supplies $10,000 $0 Cash $10,000 Contractual Services $10,000 $0 Cash $10,000 Construction Services $0 $0 Cash $0 Other $10,000 $0 Cash $10,000 TOTALS $125,000 $75,000 Cash $200,000 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 31 of 35 7/2/14 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Part II - Feasibility Analysis Project scoping and contractor solicitation 30-Nov-15 $18,750 $11,250 Cash $30,000 Detailed resource assessment 30-Nov-15 $9,375 $5,625 Cash $15,000 Identification of land regulatory issues 14-Jan-16 $18,750 $11,250 Cash $30,000 Permitting and environmental analysis 14-Mar-16 $46,875 $28,125 Cash $75,000 Detailed analysis of current cost of energy and future market 04-Feb-16 $18,750 $11,250 Cash $30,000 Assessment of alternatives 04-Feb-16 $9,375 $5,625 Cash $15,000 Conceptual design and costs estimates 16-Mar-16 $18,750 $11,250 Cash $30,000 Detailed economic and financial analyses 04-Apr-16 $18,750 $11,250 Cash $30,000 Conceptual business & operations plan 14-Apr-16 $18,750 $11,250 Cash $30,000 Final report and recommendations 24-Apr-16 $9,375 $5,625 Cash $15,000 TOTALS $187,500 $112,500 Cash $300,000 Budget Categories: Direct Labor & Benefits $112,500 $112,500 Cash $225,000 Travel & Per Diem $15,000 $0 Cash $15,000 Equipment $0 $0 Cash $0 Materials & Supplies $15,000 $0 Cash $15,000 Contractual Services $30,000 $0 Cash $30,000 Construction Services $0 $0 Cash $0 Other $15,000 $0 Cash $15,000 TOTALS $187,500 $112,500 Cash $300,000 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 32 of 35 7/2/14 Milestone or Task Anticipated Completion Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Phase III - Final Design & Permitting Project scoping and contractor solicitation 08-Jun-16 $27,232 $15,993 Cash $43,225 Permit applications 20-Nov-16 $81,695 $47,980 Cash $129,675 Final environmental assessment and mitigation plans 20-Nov-16 $81,695 $47,980 Cash $129,675 Resolution of land use, right of way issues 23-Jul-16 $13,616 $7,997 Cash $21,613 Permitting, right-of-ways, site control 23-Jul-16 $13,616 $7,997 Cash $21,613 Final system design 23-Jul-16 $245,086 $143,939 Cash $389,025 Final cost estimate 22-Aug-16 $27,232 $15,993 Cash $43,225 Updated economic and financial analyses 21-Sep-16 $13,616 $7,997 Cash $21,613 Power or heat sale agreements in place 20-Dec-16 $13,616 $7,997 Cash $21,613 Final business and operational plan 20-Nov-16 $27,232 $15,993 Cash $43,225 TOTALS $544,635 $319,865 Cash $864,500 Budget Categories: Direct Labor & Benefits $172,900 $172,900 Cash $345,800 Travel & Per Diem $21,613 $0 Cash $21,613 Equipment $0 $0 Cash $0 Materials & Supplies $21,613 $0 Cash $21,613 Contractual Services $285,285 $146,965 Cash $432,250 Construction Services $0 $0 Cash $0 Other $43,225 $0 Cash $43,225 TOTALS $544,635 $319,865 Cash $864,500 Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 33 of 35 7/2/14 Milestone or Task Anticipate d Completio n Date RE- Fund Grant Funds Grantee Matching Funds Source of Matching Funds: Cash/In- kind/Federal Grants/Other State Grants/Other TOTALS Phase IV – Construction Design & feasibility requirements 10-Dec-16 $62,857 $219,807 Cash/HPPA $282,664 Bid documents 20-Dec-16 $62,857 $219,807 Cash/HPPA $282,664 Vendor selection and award 04-Jan-17 $62,857 $219,807 Cash/HPPA $282,664 Construction – unique to each project 06-Sep-17 $2,844,293 $8,946,249 Cash/HPPA $11,790,541 Integration and testing 21-Oct-17 $31,429 $109,903 Cash/HPPA $141,332 Final acceptance, commissioning and start-up 05-Nov-17 $31,429 $109,903 Cash/HPPA $141,332 Operations 00-Jan-00 $47,143 $164,855 Cash/HPPA $211,998 TOTALS $3,142,865 $9,990,330 Cash/HPPA $13,133,195 Budget Categories: Direct Labor & Benefits $628,573 $1,698,066 Cash/HPPA $2,326,639 Travel & Per Diem $31,697 $110,842 Cash/HPPA $142,538 Equipment $1,602,593 $5,104,131 Cash/HPPA $6,706,724 Materials & Supplies $314,286 $1,099,033 Cash/HPPA $1,413,319 Contractual Services $157,143 $549,516 Cash/HPPA $706,660 Construction Services $408,572 $1,428,743 Cash/HPPA $1,837,315 Other $0 $0 Cash/HPPA $0 TOTALS $3,142,865 $9,990,331 Cash/HPPA $13,133,195 Note: Cash/HPPA means that the capital expenses are incurred by both TDX and the counterparty to the Heat and Power Purchase Agreement (HPPA) which is Alaska Critical Energy LLC (ACE). Renewable Energy Fund Round VIII Grant Application - Standard Form AEA 15003 Page 34 of 35 7/2/14 SECTION 10 – AUTHORIZED SIGNERS FORM Community/Grantee Name: TDX Power, North Slope Generating Regular Election is held: Date: Authorized Grant Signer(s): Printed Name Title Term Signature See TDX Power Board of Directors Resolution Dated Nov 2013 attached I authorize the above person(s) to sign Grant Documents: (Highest ranking organization/community/municipal official) Printed Name Title Term Signature Grantee Contact Information: Mailing Address: 615 E 82nd Ave, Suite 200 Anchorage AK 99518 Phone Number: 907-762-8478 Fax Number: E-mail Address: kord@tdxpower.com Federal Tax ID #:27-0004843 Please submit an updated form whenever there is a change to the above information.