Loading...
HomeMy WebLinkAboutAEA REF Round VII - City of False PassRenewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Application Page 1 of 30 7/2/2013 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) City of False Pass Type of Entity: Government Fiscal Year End June 30 Tax ID # 92-0135411 Tax Status: For-profit Non-profit X Government ( check one) Date of last financial statement audit: City of False Pass does CFS at the end of every fiscal year. Last audit was for 2005, and was finished November 21, 2006. Mailing Address P.O. Box 50 False Pass, Alaska 99583-0050 c/o: Chris Emrich, City Clerk Physical Address 180 Unimak Dr. False Pass, Alaska Telephone 907-548-2319 Fax 907-548-2214 Email cityoffalsepass@ak.net 1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER Name Genetta McLean Title Grants & Licensing Manager Mailing Address Ocean Renewable Power Company 120 Exchange Street, Suite 508 Portland, Maine 04101 Telephone 207-221-0961 Fax 207-772-7708 Email gmclean@orpc.co 1.2 APPLICANT MINIMUM REQUIREMENTS 1.2.1 As an Applicant, we are: (put an X in the appropriate box) 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 X A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 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 Yes or No in the box ) Yes 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). Yes 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/veep/Grant-Template.pdf. (Any exceptions should be clearly noted and submitted with the application.) Yes 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. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 2 of 30 7/1/2013 SECTION 2 – PROJECT SUMMARY 2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below. Hydrokinetic Feasibility Study: False Pass, Alaska 2.2 Project Location – 2.2.1 Location of Project – Latitude and longitude, street address, or community name. The Project’s physical location at False Pass, Alaska: 54.853940° North Latitude and -163.408830° West Longitude. (Sec. 34, T061S, R094W, Seward Meridian.) 2.2.2 Community benefiting – Name(s) of the community or communities that will be the beneficiaries of the project. The community that will benefit from this Project: City of False Pass 2.3 PROJECT TYPE 2.3.1 Renewable Resource Type Wind Biomass or Biofuels (excluding heat-only) Hydro, Including Run of River X Hydrokinetic Geothermal, Excluding Heat Pumps Transmission of Renewable Energy Solar Photovoltaic Storage of Renewable Other (Describe) Small Natural Gas 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Pre-Construction Construction Reconnaissance Final Design and Permitting X Feasibility and Conceptual Design Construction and Commissioning 2.4 PROJECT DESCRIPTION The City of False Pass requests Alaska Energy Authority (AEA) funding through the Renewable Energy Grant Program (RFA 2014-006) to complete Phase II Feasibility Analysis and Conceptual Design Requirements (Project) for a proposed tidal energy project at False Pass in the Isanotski Straight. The City of False Pass, like most communities of the Aleutian Islands, depends on diesel fuel to meet their electricity and heating needs. While diesel fuel is currently the most practical option for such communities, it also creates economic, energy security and environmental problems—it has a disproportionately high carbon dioxide (CO2) output compared to other power generation systems—at both local and global levels. The City of False Pass, fortunately, is situated near a significant hydrokinetic (tidal) resource at the Isanotski Straight that offers a potential to significantly reduce, or eliminate, the use of diesel fuel. The viability of this resource was confirmed through a reconnaissance study funded by the U.S. Department of Energy (DOE) Tribal Energy Program that included measurement of the current velocities in the vicinity of False Pass through a full lunar cycle. This Project proposes to build Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 3 of 30 7/1/2013 on the completed reconnaissance study to accelerate efforts to develop this tidal energy resource. The following goals will be achieved in this Project: (1) measure current velocities and collect turbulence data at 3-5 sites selected for potential deployment of tidal turbines based on University of Alaska (UAA) circulation modeling, (2) analyze the data from the field effort including extending UAA modeling efforts to select the optimal site(s) for tidal turbine placement, (3) collect existing environmental data and develop draft environmental study plans in consultation with regulatory agencies, (4) initiate stakeholder outreach efforts, (5) collect additional geophysical data required to inform engineering of the project, and (6) complete a conceptual design and economic analysis for a tidal energy project at False Pass. The Project Team is comprised of the City of False Pass; Aleutian Pribilof Islands Association, Inc. (APIA); Aleutian Pribilof Islands Community Development Association (APICDA); University of Alaska Anchorage (UAA); Benthic GeoScience, Inc.; National Renewable Energy Laboratory (NREL) and ORPC Alaska, LLC (ORPC). 2.5 PROJECT BENEFIT In Alaska 78,000 people depend on diesel-fired generation to meet 90% of their electrical demand, consuming over 450,000 MWh annually while burning 27 million gallons of diesel fuel (AEA, Statistical Report of the Power Cost Equalization Program, 2012). This means fuel costs for electricity generation in rural Alaska averages $0.30/kWh. Electricity costs for False Pass, however, are even higher than average at $0.42/kWh for residential and community customers, $0.36 $/kWh for commercial customers (Wright, B & Worthington, M. DOE False Pass Presentation, 2012). Converting even a small portion of this diesel-reliant population to hydrokinetic energy, a completely clean and renewable energy source, would have a significant impact for the people of Alaska. The direct beneficiary of these reduced energy costs will be the City of False Pass, which includes 21 residential, 11 commercial, 1 federal/state facility and 9 community facilities customers. Here the Project will create high-quality jobs, including fabrication/assembly, deployment/installation, and operations/maintenance. There are also environmental benefits from a tidal energy project, which will displace the use of fossil fuels and result in avoided emissions. By displacing fossil fuels the risk of fuel spills in Alaska’s waterways during transport and storage will also be mitigated. See Section 5 Project Benefit for data on reduction of CO2 emissions. Finally, this specific feasibility Project will provide crucial data on a hydrokinetic device designed to generate electricity at an Alaskan site. The approach for accomplishing this Project is a model for the other Alaska communities with a tidal energy resource, and we have and will continue to strive to development a tidal energy study and deployment model that can be used throughout the State. 2.6 PROJECT BUDGET OVERVIEW The Project will amount to $566,466 with the anticipated sources of funding as follows: (1) $428,646, AEA award and (2) $137,820, in-kind matching funds from APICDA and NREL. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 4 of 30 7/1/2013 (Summary of funds requested) 2.7.1 Grant Funds Requested in this application $428,646 2.7.2 Cash match to be provided $ 2.7.3 In-kind match to be provided $137,820 2.7.4 Other grant funds to be provided $ 2.7.5 Other grant applications not yet approved $ 2.7.6 Total Grant Costs (sum of 2.7.1 through 2.7.4) $566,466 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. $5,000,000 2.7.8 Additional Performance Monitoring Equipment not covered by the project but required for the Grant Only applicable to construction phase projects. $ 2.7.9 Estimated Direct Financial Benefit (Savings) $4,615,664 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. $ 8,200,000 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 5 of 30 7/1/2013 SECTION 3 – PROJECT MANAGEMENT PLAN 3.1 Project Manager The City of False Pass has selected ORPC to provide Project Management for this Project: Monty Worthington Director of Project Development – Alaska ORPC Alaska 725 Christensen Dr., Suite 6 Anchorage, AK 99501 Tel: (907) 339-7939 Email: mworthington@orpc.co 3.2 Project Schedule and Milestones Milestones Tasks Start Date End Date 1. Project scoping and contractor solicitation completed ADCP expedition planning and procurement completed 7/1/14 8/1/14 2. Detailed resource assessment completed ADCP survey of 3-5 sites completed 8/7/14 11/1/14 3. Identification of land and regulatory issues Initial meetings with project stakeholders and regulatory agencies, desktop environmental literature surveys completed and presented to regulatory agencies 10/1/14 2/1/15 4. Permitting and environmental analysis completed Draft study plans developed and submitted to regulatory agencies 1/1/15 3/1/15 5. Detailed analysis of current cost of energy and future market completed Analysis of current energy costs, anticipated load growth and future energy costs completed 1/1/15 3/1/15 6. Assessment of alternatives Alternative energy generation options analyzed 1/1/15 3/1/15 7. Conceptual design and costs estimate completed Latest cost data incorporated into financial model 11/1/14 1/15/15 8. Detailed economic and financial analyses completed Updated pro forma model developed incorporating ADCP data from survey and UAA modeling effort 1/15/15 3/1/15 9. Additional required field data collected Sub bottom survey completed and data incorporated into conceptual design 5/1/15 6/1/15 10. Conceptual business and operations plan completed Project partners collaborate on business plan for tidal energy project hold stakeholder meeting 3/1/15 7/1/15 11. Final report and recommendations completed Final report submitted to AEA 5/1/15 7/1/15 Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 6 of 30 7/1/2013 3.3 Project Resources Project Team (Resumes of key personnel are attached as Section 11 A.) The City of False Pass, located within the boundaries of the Aleutians East Borough, will serve as Business Contact for this Project, under the direction of Chris Emrich, City Clerk. The City is eligible to receive funding through AEA’s grant program, and the False Pass City Council has signed a resolution (14-03) supporting the submittal of this application on August 20, 2013 (see attached letter). City of False Pass APIA is a federally recognized tribal organization of the Aleut people in Alaska. It is a nonprofit corporation founded to advance the overall economic, health, social and cultural development of the people within the Aleutian and Pribilof Regions in the State of Alaska. Aleutian Pribilof Islands Association, Inc. (APIA) Bruce Wright, Senior Scientist, is a regional leader in energy conservation and alternative energy projects, including onsite weatherization applications. He has managed large state and federally funded projects. Karen Pletnikoff, Community Environment and Safety Manager, has provided environmental technical assistance and project management in rural Alaska for 12 years. She has worked on large federally funded efforts from construction, environmental sampling and site remediation. APICDA is a 501(c)(3) nonprofit organization incorporated in the State of Alaska to develop the commercial and sport fishing industry for the long-term social and economic viability of communities in the Bering Sea and Aleutian Islands. It is one of several Aleut Region organizations working to reduce dependence on fossil fuels by exploring alternate energy resources. APICDA will provide $77,820 in cost match for vessels, captains, and room and board for field work (Letter of Verification: Section 11 G). Aleutian Pribilof Islands Community Development Association (APICDA) Angel Drobnica is the Renewable Energy and Fisheries Liaison for APICDA and has been working on energy planning and projects in diesel dependent communities throughout Alaska for the past three years. She will be helping to coordinate vessel and ground support for this project. UAA under the leadership of Prof. Tom Ravens, Ph.D., Dr. Ravens has 20 years of research experience in the areas of coastal hydrodynamics and sediment transport, flume testing, and renewable energy assessment. In the past 10 years, he has supervised $2 million of research projects funded by NOAA, AEA, DOE (through the Electronic Power Research Institute), and others. Dr. Ravens has played a leading role in two hydrokinetic assessment projects for the State of the Alaska and for the contiguous United States. University of Alaska Anchorage (UAA) UAA will continue the development of a 3D, high-resolution model of circulation and turbulence in False Pass using Delft3D software. We will calibrate and validate the model using velocity, water level, and turbulence data collected using two ADCP’s that were deployed in the summer of 2012. Once the model is performing satisfactorily, we will use the model to produce plots Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 7 of 30 7/1/2013 showing the spatial distribution of power density and turbulence. Using these plots, and after consulting with team members, we will propose the locations of 5 ADCPs (and two ADVs) scheduled to be deployed in the summer of 2014. After the 2014 field season, the model will then be validated using the ADCP and ADV data. Adjustments to the model will be made as necessary and following consultation with the team. The model will be used for any additional computations required by the team during the course of the project. Benthic GeoScience provides professional geophysical and hydrographic surveying services throughout the world. Strong geophysical and oceanographic staff complements their technical surveying services for renewable energy project planning. Benthic GeoScience, Inc. David Oliver, Director of Operations, is a geophysicist with more than 25 years in the geotechnical industry and 14 years working directly with the marine geophysical industry. He established Benthic GeoScience, Inc. after serving the renewable energy community for many years. David has lead the Site Characterization and Resources Assessment work on many marine and riverine hydrokinetic projects in Alaska, including Ruby, Eagle, Nenana, Igiugig, and ORPC’s tidal energy sites. David is a member of the following organizations: Renewable Energy Alaska Project (member of the Policy and Rural Community Energy Committees) for five years, Alaska Hydrokinetic Energy Research Center Advisory Board, AEA Hydrokinetic Working Group, and shadow committee for ANSI TC-114’s Tidal Resource Assessment Project Team representing U.S. interests as international standards for Renewable Energy Resource Assessment are being established by the International Electrotechnical Commission. David strives to stay abreast of the dynamic oceanographic, geophysical, and hydrographic industry advancements to continuously match the appropriate technologies to the marine renewable industry. In particular, Benthic has worked to downscale the size, weight, and cost requirements of operations in remote Alaska without sacrificing quality. Levi Kilcher, Ph.D. Physical Oceanography, is responsible for characterizing and quantifying the inflow environment of tidal power devices at NREL. Levi has led several successful ocean turbulence and mean-velocity measurement campaigns, and has taken part in several hydrokinetic device monitoring efforts. He is an expert in ocean turbulence data analysis and is a collaborator in developing the moored turbulence measurement system that will be deployed for this project. Levi will lead the turbulence measurements portion of this project. National Renewable Energy Laboratory (NREL) NREL will provide a cost match of $60,000 for ADV survey work (Letter of Verification: Section 11 G). ORPC brings tidal energy technology and project development expertise to the Project. ORPC is a global leader in hydrokinetic technology and project development. With corporate headquarters in Portland, Maine, ORPC develops hydrokinetic power systems and eco- conscious projects that harness the power of oceans and rivers to create clean, predictable renewable energy. ORPC works in partnership with coastal and river communities to create and sustain local jobs while promoting energy independence and protecting the environment. ORPC Alaska (ORPC) In 2012 ORPC made history by starting operation of the Cobscook Bay Tidal Energy Project, the first commercial, grid-connected hydrokinetic tidal energy project in North America. Located at the mouth of the Bay of Fundy near Eastport and Lubec, Maine, this is the only ocean energy Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 8 of 30 7/1/2013 project, other than one using a dam, which delivers power to a utility grid anywhere in the Americas. The TidGen™ Power System is connected to the Bangor Hydro Electric utility grid at an on-shore station in North Lubec. The Project received a Federal Energy Regulatory Commission pilot project license and the first Maine Department of Environmental Protection General Permit issued for a tidal energy project. In addition, ORPC received approval for the first power purchase agreement for tidal energy from the Maine Public Utilities Commission. ORPC has been developing and licensing projects at world-class tidal energy sites in North America’s most robust tidal energy resources: the Bay of Fundy, and Cook Inlet, Alaska. These project sites have the potential to generate more than 300 megawatts of electricity—enough to power roughly a quarter of a million homes. The development of ORPC’s power systems and projects is also creating substantial job growth and other economic opportunities, while helping to reduce the nation’s reliance on foreign oil. Monty Worthington, ORPC’s Director of Project Development – Alaska, will serve as Project Manager of this Project. He has over ten years of experience designing, implementing, and maintaining renewable energy systems in Alaska, western U.S., and Asia. He assumes oversight of the Project, including managing resource assessment. Doug Johnson, ORPC Director of Projects – Alaska, will also assist with this project. Mr. Johnson has over thirty years of project development experience in Alaska, having worked as an investor, a business owner, an entrepreneur, a professional manager and a business consultant. He has developed projects ranging from the launch of Alaska’s first biotech company to the planning and execution of a $2 billion hospital in Abu Dhabi. He is responsible for developing present and future business opportunities for the ORPC in Alaska. Nathan Johnson, ORPC Director of Environmental Affairs, leads ORPC’s site licensing and permitting efforts, developing innovative approaches to federal and state marine hydrokinetic permitting and environmental monitoring. Mr. Johnson has a diverse background that includes marine renewables, solar energy site development, marine and coastal geology, hydrogeology, and construction management. Projects have ranged from marine and coastal projects in New England to determining fluvial geomorphology impacts at solar power projects in the southwestern United States. 3.4 Project Communications ORPC, as Project Manager, will report to the City of False Pass (Chris Emrich) – the grantee, and the Project Team (City of False Pass, APIA, APICDA, UAA, Benthic GeoScience, NREL and ORPC) on the Project’s timeline and performance, and after the City’s review and approval ORPC will submit reports to AEA. ORPC will submit regular quarterly progress reports to AEA after the City of False Pass’s review and approval. The Project Team will schedule meetings as necessary or as requested to update AEA on the Project. All members of the Project Team have an established working relationship with each other as well as with AEA and will continue best efforts to maintain communications. ORPC’s project management practices are geared towards carefully monitoring scope, schedule and budget to ensure the Project is tracking as planned. Any significant changes to any aspect of the Project will be reported promptly to AEA. To ensure that the Project Team is thoroughly informed on the Project’s progress, ORPC will Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 9 of 30 7/1/2013 establish monthly meetings to provide updates with the project manager, contractors, and key ORPC personnel, which is the standard procedure for other state and federally projects. 3.5 Project Risk The Project Team has approached the investigation of tidal energy at False Pass since its beginning with a focus on minimizing project risk. The reconnaissance phase of the project sought to establish the viability of the resource early on in order to rule out the financial risk associated with an unknown resource. Having established the viability of the resource, the Project is being planned in a way that continues to minimize risks through a phased approach to Project development. Each phase of the overall tidal project has risks associated with the successful execution of the scope of work. The primary project risks of this Phase II Feasibility Analysis and Conceptual Design Project are associated with field work. While the deployment and retrieval of scientific equipment in highly energetic tidal environments are challenging, ORPC has significant experience deploying and retrieving equipment in these environments and has successfully completed two month-long deployments in the False Pass area, increasing confidence that this work can be successfully executed. These and any other potential risks will be mitigated by the Project Team, which collectively has extensive experience working on technology projects and is committed to proactively managing risk. The Project Team has identified environmental concerns and the permitting process as risks that need to be completely understood in the Phase 2 feasibility study. While obtaining permits are not perceived to pose a risk to the completion of Phase 2, there are potential environmental concerns that could impact that ability to execute the overall project successfully and economically. The Project Team has already identified the permits and licenses required for this Project and will complete their study of required permits and licenses for follow-on phases (Section 4.3.3 Permits). Although the Federal Energy Regulatory Commission (FERC) has an extensive application and review process for tidal energy projects, ORPC has gained unparalleled experience in the FERC pilot licensing process through its development of pilot projects in Maine and Alaska. ORPC also works with FERC and other federal and state agencies through its Adaptive Management process to identify environmental concerns early on and ensure that the licensing process is reasonable in scope while remaining protective of the environment. An additional project risk is the remote nature of operations in False Pass. While this is again well understood for the level of field operations entailed in the Feasibility phase of the Project, it will be necessary to design the Project so that it can be installed and maintained with equipment and capacity appropriate to False Pass. The Project Team will continue to develop an understanding of this capacity through the execution of the Feasibility Phase. SECTION 4 – PROJECT DESCRIPTION AND TASKS 4.1 Proposed Energy Resource Significant work has already been completed to assess the viability of the tidal energy resource at False Pass. In fall 2012 ORPC performed a reconnaissance tidal current survey to obtain a preliminary assessment of the potential for a tidal energy project as an energy alternative for the City of False Pass under a contract with APIA in 2012 (Section 11, H: ORPC, Reconnaissance Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 10 of 30 7/1/2013 Current Survey Report, Prepared for the Aleutian Pribilof Island Association, April 1, 2013), (Figure 1). Figure 1. Contour plot of average energy density, flood tide (left). Contour plot of average energy density, ebb tide (right). Source: UAA, Final Report: Hydrokinetic Resource Assessment in False Pass, Alaska, September 4, 2013. Based on information provided by a preliminary circulation modeling effort completed at UAA, ORPC successfully collected Acoustic Doppler Current Profiler (ADCP) current velocity data from two sites in Isanotski Strait in the vicinity of False Pass over the course of a lunar cycle (one month) during the period from September to November 2012. Based on the results of the survey there is at least one site in the False Pass area that has great potential as a tidal energy resource having an impressive capacity factor in the range of 40-50% of rated capacity (Figure 3). A second site has a lower resource but has relative easy interconnect access. Further investigation of project development considerations and constructability of a tidal energy project in the vicinity of False Pass will be completed in this Project to assess the economics of installing a tidal energy project near one of these sites. Of key importance in this assessment will be incorporating data from a bathymetric survey covering the area of potential device locations and submarine power cable routes, and analysis of technical and cost considerations for a power cable line to connect the project to False Pass. The Project Team has collected this bathymetric data under programmatic hydrokinetic funding from AEA provided to the Southwest Alaska Municipal Conference who contracted Benthic GeoScience to complete this survey with assistance and cost sharing from APICDA who provided a vessel and captains to support the field effort (Figure 2). Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 11 of 30 7/1/2013 Figure 2. Bathymetric image from data collected at False Pass in August 2013. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 12 of 30 7/1/2013 Figure 3. Tidal rose image from ADCP data collected at site S2 10 meters above the seafloor, showing high current velocities and symmetric direction on ebb and flood tides. The next steps in the feasibility effort of this Project will be to enhance the fidelity of the circulation model developed by UAA by incorporating the bathymetric data into their model domain to allow finer scale resolution. This modeling has also been supported by programmatic hydrokinetic funding provided by AEA and should be completed over the winter of 2013-2014. Based on this modeling data the Project Team will select sites that appear suitable for tidal turbine placement based on both UAA modeling efforts and the bathymetric data in the vicinity of the highest current velocities and any locations that are suggested by the model to have viable current velocities for energy extraction and reasonable transmission distances to the False Pass grid. Three to five of these sites will then be selected for deployment of ADCPs to measure current velocities over a full lunar cycle and for deployment of Acoustic Doppler Velocimeters (ADVs) to measure turbulence. The ADV measurements will be performed by NREL and provided as a cost share to this request for Project funding. These measurements will help to quantify the amount of extractable energy available from the resource. The data collected from this field effort will then be utilized to further enhance UAA circulation model, both through verification of the models accuracy by hindcasting the model to the deployment time period and comparing its output to actual field measurements. The model will also be enhanced to output information on turbulence that will also be validated with the data from field measurements. By incorporating the ADCP data, ADV data, UAA modeling work, and bathymetric data the project team will be enabled to select viable sites for tidal turbine placement. Having chosen these sites, we will assess the environmental concerns associated with deployment in these areas, conduct outreach with stakeholders to incorporate stakeholder input in the selection of candidate sites, and perform an economic analysis of deployment at the viable locations to identify the optimal site(s) for tidal turbine placement. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 13 of 30 7/1/2013 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 City of False Pass owns and operates a diesel generation plant for approximately 25 residential customers, 13 commercial customers, 11 community structures, 3 federal/state structures and the harbor. Bering Pacific Seafood, a subsidiary owned by APICDA, owns and operates a separate diesel generation plant for its processing operations. APICDA purchases electricity from the city for its bunk house and for its construction related activities during the non- processing months. Following is information regarding the two power houses: City of False Pass Unit 1: 75 kW John Deere with 10,000 hrs (not used since 2005) Unit 2: 125 kW John Deere with over 44,000 hrs (rebuilt twice) Unit 3: 175 kW John Deere with over 18,000 hrs (will require rebuild soon) Bering Pacific Seafood Unit 1: 365 kW Caterpillar (C-15) with 2412 hrs (new in 2013) Unit 2: 350 kW Caterpillar (3406 B) with 9,388 hrs (reconditioned once) Unit 3: 350 kW Caterpillar (3406 D1) with unknown hrs (reconditioned once) Unit 4: 185 kW Perkins with unknown hrs (not in operation) The City of False Pass strives to operate its generators to adequately carry the City’s loads while balancing efficiency and maintenance costs. In 2012 the City’s generation efficiency was 11.24 kWh per gallon of fuel. In 2012, the City’s line loss averaged 14.7% but has decreased to 6.2% this summer, likely due to valve replacements on its primary generator. 4.2.2 Existing Energy Resources Used The City of False Pass relies completely on fossil fuels for all of its energy needs. In 2012 the City of False Pass burned 47,241 gallons of fuel to meet the city’s electricity loads. The community uses another approximately 18,000 gallons of fuel for heating. Bering Pacific Seafood has the largest energy load in the community, almost equaling the total combined community load. Due to recent expansions, the plant’s 2013 processing operations nearly tripled from 2012 and APICDA anticipates continued growth over the next five years with a goal of year round processing. So far in 2013, Bering Pacific Seafood’s has burned 37,966 gallons of fuel to meet the plant’s processing needs. The plant has experienced significant fluctuations in the price per gallon of fuel over the past five years from a low of $2.78 to a high of $4.70. These price fluctuations have considerable impact on the plant’s production costs and makes it very difficult to plan and budget for yearly operations. The development of a tidal project will help stabilize volatile energy costs, aiding in the sustainability of the community and the local seafood plant’s operations. Both of the diesel plants will continue to be maintained for load balancing and energy security purposes after the development of the tidal project. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 14 of 30 7/1/2013 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The City of False Pass operates the community’s power utility and serves a mixture of residential and commercial customers: 21 residential; 11 commercial, including a seafood processing plant; 1 federal/state facility; and 9 community facilities. The Community’s average monthly electric demand is 30,739 kWh, and residents pay between 28 and 53 cents per kWh for electricity. (The national average is 9.92 cents per kWh (U.S. Energy Information Administration, May 2013). Currently nearly all electricity and heat generated at False Pass comes from imported diesel fuel. In 2012 the city of False Pass utilized 56,315 gallons of diesel fuel for electrical generation, while the Bering Pacific Seafood plant utilized 37,966 gallons. Using the current price of $3.53 and the average annual amount of fuel, electricity cost $198,791 in 2012 for the City of False Pass and $134,019 for the Bering Pacific Seafood Plant. Electricity generation with diesel fuel, therefore, is expensive for the community and local businesses and also has environmental impacts and risks associated with the transport, storage, and burning of this fuel. At the currents measured at site S2 in False Pass, ORPC ‘s TidGen® device with a rated capacity of 200 kW and an availability of 95% would generate 60,833 kWh monthly (730,000 kWh/yr). This Project will determine what configuration of power system and number of devices will be needed to supply a reasonable amount of power to the community; additional TidGen® devices could be deployed to meet future energy demands. As Table 1 shows, a 200 kW TidGen® Power System would produce enough power to displace all of the electrical load of the False Pass utility, producing 126% of this annual load. However, since the tidally produced energy is cyclical there are times when no power will be produced and other times when the power produced from the TidGen™ device exceeds the needs of the community. The amount of energy that could be utilized by the utility is less than the total produced. Analysis shows that ultimately slightly more than half of the energy produced by the TidGen™ Power System can be utilized to existing utility loads, providing for 64% of the False Pass utility’s load while the remainder of the tidally produced power can be sold to Bering Pacific Seafood to offset self generation at the Bering Pacific Seafood plant. Currently the plant uses and additional 136,000 kWh a month when in operation, but is forecast to have a load growth to 170,000 kWh a month and year round operations. Using a clean, renewable energy source would also have the added benefit of giving a value-added green label to the local business such as the Bering Pacific Seafood plant, which could have a multiplier effect on the demand for the locally-produced seafood. In addition, the dollar amount that the City of False would save annually will only increase as fossil fuel prices rise. Table 1. ORPC 200 kW TidGen® Power System Monthly generation of in-stream device 60,833 kWh False Pass utility average monthly electric demand 48,256 kWh Monthly generation utilizable by City of False Pass 30,833 kWh Percentage of False Pass Utility electric demand produced by TidGen® device 126% Percentage of False Pass Utility demand actually offset by TidGen® device 64% Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 15 of 30 7/1/2013 4.3 Proposed System 4.3.1 System Design The Project Team has not selected a technology for installation at False Pass as the project is still in the Feasibility Phase. However, in order to forecast the Project’s energy production and financial analysis ORPC’s TidGen® Power System is being used as a model technology and is also under consideration for deployment at False Pass. This allows the Project Team to assess the viability of the Project with an existing technology for which economic and power output data is available. ORPC power systems are designed around a proprietary turbine generator unit (TGU) containing advanced design cross flow (ADCF) turbines which drive the TGU’s underwater permanent magnet generator. The ADCF turbines are built with marine composite materials, and resist corrosion in both fresh and salt water. The TGU is gearless, requires no lubricants, and has no emissions. The TGU has a modular design adaptable to varying characteristics at different tidal installation sites. Multiple TGUs can be incorporated into complete power systems to convert the kinetic energy of water moving at tidal and riverine sites into grid-compatible electric power by means of various power electronics stages. The ORPC TidGen® device is a four-turbine TGU that is mounted on a bottom support frame securing it to the sea floor (Figure 4). It is designed to operate in water depths of 60 to 150 ft and generate up to 150 kilowatts (kW) at peak water flow conditions. For purposes of this Project the improved version of the TidGen® that will have a rated capacity of 200 kW in a 5.4 knot current is being used for analysis. A complete TidGen® Power System can include up to several dozen TidGen® devices, depending upon market conditions, community needs, site characteristics and other considerations, deployed nearby or adjacent to one another, with individual TidGen® devices connected together by means of an underwater power consolidation module. Electricity is carried to shore through a single underwater power and data cable that terminates beyond the high-water mark at an on-shore station. The on-shore station is interconnected directly to the local utility power grid. The first grid-connected TidGen® Power System was installed with a single TidGen® device in Cobscook Bay in September 2012 (Figure 5). Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 16 of 30 7/1/2013 Figure 4. TidGen® device showing TGU and bottom support frame. Source: Popular Science 2013. Figure 5. TidGen® device installation in Cobscook Bay, Maine The proposed False Pass tidal energy project will begin with the installation of a single 200 kW TidGen™ Power System. This is the optimal installed capacity to suit the existing loads and electrical configuration of the City. Currently the load for the False Pass utility averages around 66 kW. Based on analysis, the power produced by the TidGen® Power System will offset 64% of this average load; the remaining generated power will be sold to the Bering Pacific Seafood plant to Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 17 of 30 7/1/2013 offset their self generation. Without an energy storage component it will be challenging to economically increase the penetration of the tidal energy system into the False Pass utility as the largest impact on the ability to displace diesel fuel use is due to times when no tidal energy is available and diesel generation is required. Bering Pacific Seafood is likely to have the largest impact on future load growth as recent upgrades to the plant and increased operations increased the peak monthly energy use by 30% over last year to 136,000 kWh/month, an average load of 188 kW. Bering Pacific Seafood anticipates that the load will increase by another 30% over the next five years and expand from seasonal operations to year round operations with a monthly load of 177,000 kWh, an average load of 245 kW. During times of peak generation, power from the TidGen® Power System will exceed load requirements for the False Pass Utility and allow additional power to be passed onto the Bering Pacific Seafood plant demonstrating the effectiveness of high penetration of tidally generated electricity into the Bering Pacific Seafood plant’s electrical usage. The system could eventually be built out to include additional TidGen® devices that would supply full power to the City and Bearing Pacific Seafood plant during times of tidal generation. As time progresses it may also be economical to consider adding energy storage capacity to allow the False Pass Utility to meet its loads without the use of diesel fuel during times when tidally produced power is not available. Based on a full lunar cycle of ADCP data collected in 2012 at False Pass, ORPC analyzed the anticipated capacity factor of a 200 kW TidGen® device at site N2, about ½ mile from the False Pass grid and at site S2, about two miles from the False Pass grid. Table 2 shows the relative capacity factor at these sites. At site S2, the most likely candidate for tidal turbine placement at this time, an impressive capacity factor of 43.9% can be achieved, and with the added benefit of predictable delivery of this power, its value to the local energy portfolio is high. Table 2 also shows the anticipated annual generation in kWh at each of the sites. Table 2. Annual generation and anticipated capacity factor at two sites near False Pass based on ADCP data collected in 2012 Site N2 10.5 m above seafloor S2 10.7 m above seafloor Annual recoverable energy, 200 kW TidGen™ device 95% availability 359,510 kWh 21.6% capacity factor 730,128 kWh 43.9% capacity factor ORPC’s power system has been successfully demonstrated at Cobscook Bay, Maine, a clear water tidal site similar to False Pass. The resource at False Pass, however, is more robust and remote than Cobscook Bay. In order to overcome this potential barrier it will be necessary to reengineer the TidGen® foundation and deployment, retrieval, and maintenance plans and equipment to accommodate the higher energies. This will not require novel solutions but will require that the Project Team to build on the body of knowledge and engineering practice ORPC has utilized successfully to date. In order to successfully install and maintain a device at this remote site it is important that the Project Team utilize the experience of local marine companies, such as APICDA, as well as ORPC’s expertise in tidal generation, to design the project to be suited functionally to this location, and to allow deployment, retrieval, and maintenance operations to be performed economically. ORPC has already made strides in this area as demonstrated in the last retrieval of the TidGen® device in Cobscook Bay which utilized a purpose-built retrieval vessel that cut costs by two-thirds. Such innovation will be utilized to ensure success in remote operations at False Pass. The power transmission system must also be considered for successful operation. If the ADCP Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 18 of 30 7/1/2013 survey performed in this Project confirms that the best location for tidal turbine placement will be in the vicinity of site S2, a power transmission at least two miles long will be required to transmit the power to shore. This cable must be designed and appropriately installed to ensure it will endure continued operations in the tidal environment and deliver reliable power to shore. ORPC has designed the TidGen® Power Systems with transmission distances similar to this and will condition the power from the TidGen® device underwater to allow it to be efficiently and reliably transmitted to the interconnect point. Once the power reaches shore and the False Pass Grid it will be power conditioned at ORPC’s on-shore station to grid compatible three phase AC power with appropriate voltage for the location of interconnect. ORPC has been working with Marsh Creek to refine the power electronics for ORPC’s RivGen™ Power System to interconnect with isolated diesel grids to maximize the ability to offset diesel consumption. This technology will be leveraged and transferred to the TidGen® Power System’s power electronics to ensure it will be capable of a reliable and efficient interconnect to the False Pass diesel electric grid. Initially, the project will be run in parallel with the diesel generation system offsetting the power required from the diesel. If it appears that the TidGen® Power System could meet all of the electrical loads of the False Pass Utility, the Project Team will consider retrofitting the power electronics to allow the TidGen® Power System to run in grid forming mode, which will allow diesel generators in False Pass to be shut off completely during these times, thereby maximizing the use of tidal energy and minimizing the diesel required for energy generation. Because independent generation capacity is maintained both by the City of False Pass and Bering Pacific Seafood it will be necessary to perform an integration study to optimize operations of both of these generation facilities when tidal energy is available to ensure that it will reduce diesel fuel usage at the maximum benefit. Power from the TidGen® Power System will be delivered to the False Pass grid where it will be dispatched, first to serve residential and community loads and then to provide power to the Bering Pacific Seafood plant, an existing customer of the utility. The Bering Pacific Seafood facility also has self generation capability, and the power from this project that is in excess of the current load demand of the utility will be utilized to offset the self generation needs of the Bering Pacific Seafood facility, further reducing diesel consumption in the community (See section 5.5.1). 4.3.2 Land Ownership The shipping, mobilization and deployment of the tidal turbine will take place exclusively on the water using vessels and platforms. Land ownership concerns will be limited to transmission line access. During the 2013 bathymetric survey there were two preliminary sites identified for the submersible line to come ashore: (1) at the southern end of the airport and (2) at a dock owned by the Aleutians East Borough (AEB). The tideland access near the airport at False Pass (Unit # R22-06) is considered a municipal tideland. This area is retained in state ownership and managed by the Alaska Department of Transportation and Public Facilities (ADOT/PF). If the transmission line route is designed within the boundaries of the airport’s jurisdiction, applications and approvals would be needed from the Airport Leasing, Utilities and Right of Way sections within ADOT/PF. The City of False Pass will be required to apply for a utility permit through ADOT/PF for access to the electrical grid. A permit is required for land use through Airport Leasing, and a charge is applied by the square footage. Once a permit for land use is in place, a building permit is applied for through the Right of Way section. An FAA 7460-1 airspace obstruction approval may also be required. The normal timeframe for issuance of these permits is 60 days. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 19 of 30 7/1/2013 The second option would use the AEB dock, the end of which is approximately ¼ mile from the nearest interconnection with the City of False Pass owned transmission line. Use of the dock for supporting transmission line access would require a permit and review process through AEB’s planning commission. The City of False Pass has a management agreement with AEB for the dock and would modify this agreement to include the operation and maintenance of a new transmission line. 4.3.3 Permits APPLICABLE PERMITS ANTICIPATED PERMITTING TIMELINE PHASE II - Required for Phase II Project ADNR Submerged Land Use Permit Apply January 2014. ORPC: Secured September 2012 & ongoing FERC Preliminary Permit Phase II Feasibility work will not require a preliminary permit but may be prudent for site control This Project will identify federal and state licensing and permitting requirements for a tidal turbine installation at the site. The only permits or licenses that would be required to complete this investigation will be submerged land use permits from the Alaska Department of Natural Resources (ADNR) for the deployment of bottom mounted scientific equipment, particularly the ADCP. ORPC has an existing submerged land use permit from ADNR for this work. At the federal level, tidal energy projects are under the jurisdiction of FERC. To facilitate getting devices in the water, FERC has implemented an expedited hydrokinetic permitting system through its pilot license program as an alternative to the traditional full long-term hydropower licensing process. This pilot project process is intended to give projects that are small scale and short term an expedited licensing process, provided they are intensively monitored for environmental effects and able to be shut down on short notice if unacceptable environmental impacts that cannot be mitigated are encountered. We will determine, through this project, whether to license the project through the pilot or the traditional hydropower process. The Project Team will continue relationships with appropriate agency personnel as the permitting pathway for the larger tidal energy project is defined through this Project. 4.3.4 Environmental A goal of this Project is to identify any environmental and permitting issues that would need to be addressed before installing a turbine. The appropriate environmental studies and analyses must be completed to provide a basis for operating that minimizes the chance of potential impacts on the marine environment. ORPC and APIA take this task very seriously. While current reports of ORPC’s technology deployment and operation in Maine suggest that the turbines have no negative effects on fish, marine mammals, or other marine species, studies occur at each unique site to verify use by fish and other wildlife, and to assess any potential site-specific effects that would need to be monitored for or mitigated. We will consult with agencies, including National Marine Fisheries Service (NMFS), U.S. Fish and Wildlife Services (USFWS) and ADF&G to scope proper studies and identify areas of environmental concern and complete a comprehensive literature review in support of this effort. Additional assessments are anticipated in conjunction Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 20 of 30 7/1/2013 with the Marine Mammal Protection Act, Magnuson Stevens Act (Essential Fish Habitat) and USFWS National Wildlife Refuge Management Plan. As part of Milestone 3 government consultations and stakeholder meetings with be completed within 8 months from the beginning of the project. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) 4.4.1 Project Development Cost The total anticipated cost for this proposed tidal energy project is $5,000,000. This includes $566,466 for the Feasibility Phase of the project proposed here: $428,646 in AEA funding and $137,820 in matching funds. These matching funds will be supplied by NREL ($60,000 for the ADV survey work) and APICDA ($77,820 for vessels, captains, and room and board for field work). The projected capital cost of the tidal energy project is $3,750,000 installed, while the project development cost is expected to cost $1,250,000 including the $ 561,466 proposed for the Feasibility Phase work. 4.4.2 Project Operating and Maintenance Costs There will be no Operating and Maintenance Costs for this Phase II Feasibility Analysis and Conceptual Design Requirements Project. For operation of a 200 kW tidal energy project it is estimated that Operating and Maintenance costs inclusive of environmental monitoring, inspections, maintenance, and repair will be $160,000 per year. 4.4.3 Power Purchase/Sale The City of False Pass operates the community’s power utility, which serves the community of False Pass. The residents and businesses in False Pass will be the customers. Commercial customers pay $0.36 / kWh, while community facilities and residential customers pay $0.42/kWh. For the economic analysis in this application a blended rate of $0.39/kWh escalated at 2% annually was assumed. At this rate the return on investment would be 2%. These rates will be used until the proposed system has been in operation for several months and a clear picture of energy savings has been developed. At that time a new rate may be implemented, but the savings will likely go towards a replacement and repairs account. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 21 of 30 7/1/2013 4.4.4 Project Cost Worksheet Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Capacity Factor 43.9% availability 95% Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt 1 i. Number of generators/boilers/other grid, leave this section blank) 3 Generators owned and operated by City of False Pass ii. Rated capacity of generators/boilers/other (1) John Deere 6068TF 75 kW generator set (1) John Deere 6081TF 125 kW generator set (1) John Deere 6081AF 175 kW generator set iii. Generator/boilers/other type iv. Age of generators/boilers/other 5 years old v. Efficiency of generators/boilers/other 13.28 kWh/gallon b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $22,123 ii. Annual O&M cost for non-labor $17,034 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] 706,037 kWh City ii. Fuel usage Diesel [gal] 56,315 City, 37,966 by BPS plant Other iii. Peak Load 190 kW City, 456 kW BPS plant iv. Average Load 66 kW City, 180 kW BPS plant v. Minimum Load 56 kW City vi. Efficiency 13.28 kWh/gallon vii. Future trends Load expected to grow with added production capacity at BPS to 245 kW average load d) Annual heating fuel usage (fill in as applicable) 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 VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 22 of 30 7/1/2013 i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 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] b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 730,000 ii. Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] $3,750,000 ii. Coal [tons or MMBtu] $1,250,000 iii. Wood or pellets [cords, green tons, dry tons] $160,000 iv. Other NA Project Cost a) Total capital cost of new system $5,000,000 b) Development cost $1,250,000 c) Annual O&M cost of new system $160,000 d) Annual fuel cost NA Project Benefits a) Amount of fuel displaced for i. Electricity 54,970 gallons ii. Heat iii. Transportation b) Current price of displaced fuel $ 3.49/ Gallon, $191,845 displaced annually c) Other economic benefits $1,300,000 of project capital costs will be spent on installation in Alaska and $140,000 of annual O&M Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 23 of 30 7/1/2013 costs will be spent on work in Alaska. The added direct and indirect economic benefit to the Alaskan economy through this is estimated a two times the locally invested funding and will be approximately $2,600,000 during installation and $280,000 annually during operation for a total of $8,200,000 over the 20 year lifetime of the project.ation in Alaska and $140,000 of annual O&M costs will be spent on work in Alaska. The added direct and indirect economic benefit to the Alaskan economy through this will be approximately $2,600,000 during installation and $280,000 annually during operation. d) Alaska public benefits This Project will add value to local business in False Pass by enabling green labeling of seafood products and tourism services. Power Purchase/Sales Price a) Price for power purchase/sale $0.39/kWh Project Analysis a) Basic Economic Analysis Project benefit/cost ratio .923 Payback (years) 20 years (assumes 30% ITC is in place at time of installation) 4.4.5 Impact on Rates The current electric rate for PCE customers is $.42 kWh with a PCE rate of $.2777, making an effective rate of $.1430 for the first 500 kWh of usage for residential customers and all of the Community Facility usage. The non-PCE customer rate for commercial, federal and state customers is $.36 kWh. These rates are so low only because the City of False Pass subsidizes the fuel costs to their electric utility with CDQ monies. Less fuel usage will not change the rates, but will allow the City of False Pass to use that money now used to subsidize fuel costs towards maintenance on the added equipment and a Replacement and Repairs account. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 24 of 30 7/1/2013 SECTION 5– PROJECT BENEFIT Communities that are partially powered by renewable energy technologies reap economic, social, and environmental benefits. A good example close to False Pass is King Cove, which has a hydro project and the lowest charges for electricity in the Aleutians. Obvious benefits resulting from a False Pass tidal project are sustainable, high-quality job creation, enhanced quality of life, and energy independence for the community. Community members will have a renewed sense of pride knowing that their community is partially powered with renewable energy. A tidal energy project at False Pass would offer emission-free power that will both decrease the use of fuel oil and provide a flat-priced alternative as fossil fuel prices continue to rise. A single ORPC TidGen® device will be rated to produce 200 kW in a 5.4-knot current, in the robust currents measured at False Pass this device would produce enough power to save 67,033 gallons of fuel over the course of a year. This would amount to offsetting the production of 1,500,000 pounds of CO2 annually. By offsetting this diesel fuel usage alone, significant environmental risk associated with the threat of fuels spills in the transportation, storage, and use of the diesel fuel will also be mitigated. Furthermore, as an Alaskan community dependent on fishing as a resource, the reduction in CO2 will mitigate both climate change and ocean acidification, which both threaten to negatively affect the marine environment, jeopardizing fish stocks and compromising the commercial and subsistence livelihood of the community. This project allows the community of False Pass to proactively address these risks to the environment and promote economic development. In addition to associated benefits of economic development and job creation in the community, other economic developments and benefits could result from the tidal project. It could be expanded, for example, to provide power to the local Bering Pacific Seafood plant. Using a clean, innovative source of energy would give a value-added green label to the local business, which could have a multiplier effect on the demand for the locally-produced seafood. 5.1.1 Public Benefit for Projects with Private Sector Sales While the City of False Pass will be the primary recipient of the power from a tidal energy project, there will be times when the output of the project exceeds the load of the city of False Pass. At these times it is anticipated that excess energy will be sold to and utilized by the expanded Bering Pacific Seafood plant at a slightly reduced rate to encourage maximum utilization of the tidally produced energy to offset self-generation and diesel use at the facility. Based on ADCP data collected at False Pass it is anticipated that 50% of the time a TidGen® Power system will produce more than the average load at False Pass of 66 kW . During these Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 25 of 30 7/1/2013 times approximately 360,000 kWh of energy annually will not be utilizable by the city and will be sold to the processing plant Renewable energy resource availability (kWh per month) 60,833 Estimated sales (kWh) 30,000 Revenue for displacing diesel generation for use at privet sector businesses ($) $10,800 Estimated sales (kWh) 30,833 Revenue for displacing diesel generation for use by the Alaskan public ($) $12,024 SECTION 6– SUSTAINABILITY There are two business structures under consideration for the ownership and power sales associated with the installed tidal energy project . In either scenario that tidal energy project would be locally owned and operated, either by the City of False Pass, or by Bering Pacific Seafood. The owner and operator of the project will be responsible for installation, operation and maintenance of the project and would sell the power produced at a rate that is competitive with diesel generation and provides adequate cash flow to perform operations, maintenance, and monitoring and to service any debt incurred in the installation of the project. As this is a marine renewable energy project operational issues will be largely handled through on-water operations requiring the owner to have marine construction experience or to contract to a company with this capacity. ORPC has established a model for the Cobscook Bay Tidal Energy Project in Maine where a subcontractor is responsible for all on water installation and maintenance operations and this may be a good example to follow for the project. Operational issues will include routine yearly maintenance of the TidGen® Power System, routine maintenance of environmental and project monitoring equipment, and unexpected maintenance of the TidGen® Power System. The operational costs associated with this project will include yearly maintenance costs inclusive of major maintenance events scheduled for every five years, environmental and project monitoring, and project management costs. The City of False Pass and Bering Pacific Seafood will continue to operate and maintain their diesel electric generation facilities, as these will be required to provide power during periods of slack tide and to make up the power differential when the tidally produced power does not meet the demand of the community or facility. The City of False Pass will report the savings and benefits from the Project, and these will be reflected in the cost of delivered power to the customers of the utility. SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS The City of False Pass demonstrates readiness and compliance with other grants by serving as grantee of the following ongoing projects: • AEA, False Pass Wind Energy Project, $69,075. Project period: July 1, 2011 – June 30, 2014. • State of Alaska, Community Development Block Grant, Generator Replacement, $142,500. Project period: August 1, 2013 – September 30, 2014. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 26 of 30 7/1/2013 The City of False Pass has the financial management capabilities to meet the requirements of these grants and project management capabilities by working collaboratively with their respective Project Teams to bring them to completion. Preliminary work on this Project was completed by a $206,956 project awarded to APIA by DOE to conduct a study of False Pass to determine whether a tidal energy project could provide renewable energy. The project scope included circulation modeling of False Pass, initial site visit to perform reconnaissance bathymetry, electrical infrastructure and load analysis, and initiation of permitting consultation. The Project was completed May 2013; final report pending. If this Project is awarded, the Project Team intends to begin in summer 2014, the first available field season. SECTION 8 – LOCAL SUPPORT AND OPPOSITION The City of False Pass has received enthusiastic local support for a tidal energy project. Alaskan organizations and communities see tidal energy’s potential to help diversify the sources of our electricity as well as ameliorate the cost of diesel fuel. The Project Team, which has a strong record of community engagement and public support, will continue their ongoing work with scientists, fishers, and regulatory agencies to ensure that adequate means are in place to understand the marine environment. Throughout the Project period the Project Team will consult with stakeholders, regulatory agencies, and the public through regular project update mailings and meetings, addressing any concerns in a collaborative, proactive manner. Letters of Support from the following local communities are included as in Section 11 B: • A-Team: Aleutian Pribilof island Community Development Association, Aleutian Housing Authority, Aleutian/Pribilof Islands Association, The Aleut Corporation, Aleutians East Borough • Aleutians East Borough • Isanotski Corporation SECTION 9 – GRANT BUDGET The total budget for this project $566,466 that includes $428,646 in AEA REF grant funding to complete the feasibility phase of the project. The project is providing a $137,820 match to this funding from NREL and APICDA. To date a total of $435,518 has been invested in the project. This included $206,956 award to complete a reconnaissance survey of the project through funding from DOE’s Tribal Energy Program. Project partners provided cost shares for this work amounting to $17,762 from ORPC and $17,500 from APICDA. The project also benefited from $150,000 in programmatic funding from AEA that was provided to the Southwest Alaska Municipal Conference to support a bathymetric survey of the Project area for which APICDA provided a cost share of $43,300. AEA has also offered an additional $25,000 to support UAA circulation modeling utilizing this bathymetric data. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 27 of 30 7/1/2013 All of the funds requested in this Phase II Feasibility proposal will be used by the City of False Pass for contractual services. These contractual services will be performed by ORPC, APIA, Benthic GeoScience and UAA, and will be matched by funding from NREL and APICDA. ORPC will provide project and grant management services amounting to a total of $138,360 and an ADCP survey for $136,686. APIA will perform an environmental literature survey and assist ORPC with drafting study plans for the project for $47,305. Benthic GeoScience will perform a sub bottom survey of the planned deployment area and cable route of the project for $81,000. UAA will validate the circulation modeling performed with AEA programmatic funding with ADCP field data collected during this effort and expanding the model to include turbulence modeling validated with ADV data collected by NREL for $25,295. NREL will perform the ADV survey with their own funds for a cost share of $60,000, and APICDA will provide field work support for a cost share of $77,820. Renewable Energy Fund Round VII Grant Application - Standard Form AEA 2014-006 Grant Application Page 28 of 30 7/1/2013 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 (List milestones based on phase and type of project. See Milestone list below. ) $ $ $ ADCP expedition planning and procurement completed 8/1/14 $5,677 $ $5,677 ADCP survey of 3-5 sites completed and ADV survey of two sites completed 11/1/14 $142,363 $122,256 NREL, APICDA contribution $264,619 Initial meetings with project stakeholders and regulatory agencies, desktop environmental literature surveys completed and presented to regulatory agencies 2/1/15 $51,208 $ $51,208 Draft study plans developed and submitted to regulatory agencies 3/1/15 $53,409 $ $53,409 Analysis of current energy costs, anticipated load growth and future energy costs completed 3/1/15 $5,677 $ $5,677 Alternative energy generation options analyzed 3/1/15 $5,676 $ $5,676 Latest cost data incorporated into financial model 1/15/15 $11,354 $ $11,354 Updated pro forma model developed incorporating ADCP data from survey 3/1/15 $42,972 $ $42,972 Sub bottom survey completed and data incorporated into conceptual design 6/1/15 $93,557 $15,564 $109,121 Project partners collaborate on business plan 7/1/15 $11,077 $ $11,077 Final Report Submitted to AEA 7/1/15 $5,676 $ $5,676 TOTALS $428,646 $137,820 $566,466 Budget Categories: Direct Labor & Benefits $ $ $ Travel & Per Diem $ $ $ Equipment $ $ $ Materials & Supplies $ $ $ Contractual Services $428,646 $137,820 $566,466 Construction Services $ $ $ Other $ $ $ TOTALS $428,646 $137,820 $566,466 2 . Aleutian Pribilof Islands Community September 16, 2013 Development Association We, the member group entities of the A – Team, enthusiastically support the submission of a Renewable Energy Fund Round VII proposal to the Alaska Energy Authority for a Hydrokinetic Study for the City of False Pass. The A – Team originally formed as a group of agencies committed to developing and enacting an energy plan that serves to reduce carbon emissions and energy costs, and provide for reliable sources of energy for the Aleutian / Pribilof Island and Alaska Peninsula region. The City of False Pass’ proposal will build upon reconnaissance work performed over the past two summers and carry the project team one step closer to determining t he viability of hydrokinetic power to reduce fossil fuel dependency and aiding in the community’s goal of energy self-sufficiency. Even more is that the project team’s approach looks beyond this site and creates a model for hydrokinetic study and deployment that will be extremely valuable for the rest of the state. Hydrokinetic work takes perseverance and the A-Team members have been intimately involved in the various stages of information and data collection and will continue to dedicate time and resources to make this project and model successful. The A-Team has come together to resolve energy issues in a way no other Alaska region has and we look forward to teaming with the Alaska Energy Authority to help us in our work. We believe the implementation of this project will help further local effo rts to utilize abundant renewable resources while providing a valuable model for rural hydrokinetic development for coastal communities throughout the State and elsewhere. The A – Team as a group and as individual entities are in the process of finalizing and implementing a regional energy plan that will help residents and communities address critical energy issues including rising costs and dependence on fossil fuels. The False Pass tidal project could play a key role in the sustained energy portfolio for the community, and will be an integral part in shaping future hydrokinetic development throughout the state. We urge the Alaska Energy Authority to approve this proposal and help the City of False Pass and the Aleutians region become more energy self-sufficient. Aleutian Pribilof Island Community Dev elopment Association 302 Gold Street, Suite 202 • Juneau , Alaska 99801 • (907) 586-0161 • Fax: (907) 5 86-0165 717 K Street, Suite I 00 • Anchorage , Alaska 99501 • (907) 929-5273 • Fax: (907) 929 -5275 September 20 , 2013 Mayor Tom Hoblet 180 Unimak Drive False Pass, Alaska 99583 Dear Tom: The Aleutian Pribilof Island Community Development Association is pleased to provide a cost share match towards the City of False Pass ' proposal under Round VII of the Alaska Energy Authority's Renewable Energy Fund. The city 's Hydrokinetic Feasibility Study represents a critical stage in determining the viability of tidal power to reduce the community 's fossil fuel use. APICDA helped to provide vessel and ground support for the first two phases of feasibility work for this project. Next summer we will provide $77,820 worth of support in vessel time, crew, lodging, board, fuel and personnel during five separate deployment and survey efforts. We are very excited to participate in this endeavor and are hopeful that it will provide a path towards a more sustainable energy resource for the city and our fish processing operations. APICDA has been working diligently with the city and other regional entities on energy planning, fuel security issues and exploring renewable alternatives to diesel generated electricity. We look forward to our continued partnerships and helping to shape a vibrant and healthy future for residents and businesses throughout the Aleutian and Pribilof Island regions. Chief Executive Officer, AP I CD A < RECONNAISSANCE TIDAL CURRENT SURVEY REPORT PREPARED FOR THE ALEUTIAN PRIBILOF ISLAND ASSOCIATION April 1, 2013 ORPC Alaska, LLC 725 Christensen Dr., Suite 6 Anchorage, AK 99501 Telephone (207) 772-7707 www.orpc.co Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 2 of 15 Contents Figures............................................................................................................................................. 2 Tables .............................................................................................................................................. 3 Appendices ...................................................................................................................................... 3 Executive Summary ........................................................................................................................ 4 Data Collection Summary ............................................................................................................... 4 Data Analysis and Quality Control ................................................................................................. 7 Recoverable Energy ...................................................................................................................... 14 Conclusion .................................................................................................................................... 15 Figures Figure 1. Location of AWAC and RDI ADCP deployments. ........................................................ 6 Figure 2. Location of ADCP and HOBO deployments in the vicinity of False Pass. .................... 6 Figure 3. Tidal Rose for RDI ADCP deployed at site S2 10.7 meters above the seafloor. .......... 10 Figure 4. Tidal Rose for AWAC deployed at site N2 10.5 meters above the seafloor. ............... 10 Figure 5. Scatter plot showing current direction and magnitude from RDI ADCP data collected at site S2 10.7 meters above the seafloor. ..................................................................................... 11 Figure 6. Scatter plot showing current direction and magnitude from Nortek AWAC data collected at site N2 10.5 meters above the seafloor. ..................................................................... 11 Figure 7. RDI ADCP data from S2 showing velocity magnitude in m/s and current direction in degrees over 27.5 days of concurrent deployment, water surface level is shown at top (note velocity scale is different in Figures 5 and 6). .............................................................................. 12 Figure 8. Nortek AWAC data from N2 showing velocity magnitude in m/s and current direction in degrees over 27.5 days of concurrent deployment (note velocity scale is different in Figure 5 and 6). ........................................................................................................................................... 12 Figure 9. RDI ADCP data from S2 showing residual current velocity over deployment duration. A positive current is indicative of the northerly flood residual current while a negative current velocity is indicative of a southerly ebb residual current. The velocity data in the lower image represents the tidal velocity 10.7 meters above the seafloor. ....................................................... 13 Figure 10. AWAC data from N2 showing residual current velocity over deployment duration. A positive current is indicative of the northerly flood current while a negative current velocity is indicative of a southerly ebb residual current. The velocity data in the lower image represents the tidal velocity 10.5 meters above the seafloor. ............................................................................... 14 Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 3 of 15 Tables Table 1. Data logging parameters of AWAC and RDI ADCP. ....................................................... 7 Table 2. Energy density and current velocity comparison at N2 and S2. ....................................... 9 Table 3. Recoverable energy comparison at N2 and S2 approximately 10.5 meters above seafloor. ........................................................................................................................................ 14 Appendices Appendix A: Tidal Rose for each bin in the water column at sites N2 and S2 Appendix B: Tabular data from all bins in water column with quality data Appendix C: Photos from Deployment and Retrieval Operations Appendix D: Field Report, False Pass ADCP Deployment, September 28-October 3, 2012 Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 4 of 15 Executive Summary ORPC Alaska, LLC, a wholly-owned subsidiary of Ocean Renewable Power Company, LLC (collectively ORPC), performed a reconnaissance tidal current survey (Survey) to obtain a preliminary assessment of the potential for a tidal energy project as an energy alternative for the community of False Pass, Alaska under contract with Aleutian Pribilof Island Association (APIA). ORPC successfully collected Acoustic Doppler Current Profiler (ADCP) current velocity data from two sites in Isanotski Strait in the vicinity of False Pass over the course of a lunar cycle (one month) during the period from September to November 2012. The collected data was normalized through a quality control and data analysis process to allow for a comparison of the available tidal energy resource between the two sites. The Survey analysis shows that site “N2” in the near vicinity of False Pass has a marginal tidal energy resource, while site “S2” in the narrowest portion of the Isanotski Strait is an extremely robust tidal energy resource for tidal energy extraction utilizing currently existing hydrokinetic technologies. Based on the results of the Survey, the tidal energy resource in the vicinity of False Pass has sufficient energy for a viable tidal energy project. The results justify further investigation of the site characteristics, project development considerations, and project economics to determine the ultimate feasibility of a tidal energy project in the False Pass area. Data Collection Summary ORPC collected a lunar cycle (29.5 days) of current velocity data at two sites near False Pass that was used to make a preliminary determination of the potential for a tidal energy project.1 ORPC had agreed to provide data from at least one site, but was able to collect data at two sites as the National Renewable Energy Laboratory (NREL) supplied one additional ADCP for the project period. This enabled two sites to be measured at the same time, allowing a comparison of the energy resource of the two sites during the same time period. The field work and data collection was performed as described below: • September 28, 2012 ORPC deployed a team to False Pass to perform this tidal/ocean current resource reconnaissance under contract to APIA. Team members Monty Worthington, ORPC, David Oliver, Benthic GeoScience, and Levi Kilcher, NREL, mobilized to False Pass and met with Shane Hoblet contracted by the Aleutian Pribilof Island Community Development Association (APICDA) to skipper the Nightrider, a vessel of opportunity for the equipment deployment operations. The goal of this expedition was to deploy two ADCPs to measure current velocities at sites likely to have viable resources over a full lunar cycle (29.5 days), and to deploy two HOBO water level sensors to validate the University of Alaska Anchorage’s (UAA’s) modeling efforts. 1 A full lunar cycle of data allows analysis of the energy available through a full orbit of the moon around the earth. As the effect of the moon’s gravity is the primary constituent in tidal exchanges, this analysis provides an accurate estimate of annual energy potential from a site, provided tidal forces are the primary influence on current velocity at the site. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 5 of 15 • September 29-30, 2013 ORPC investigated ADCP deployment sites, selected on the basis of UAA modeling efforts, local knowledge, and known bathymetry with a SeaKing Tritech Scanning Sonar. Seven sites were assessed for hazards to ADCP deployments in the vicinity of two prospective ADCP locations, and ultimately two sites “N2” in the vicinity of False Pass and “S2” approximately two miles south of the town of False Pass near Whirl Point were selected for deployment (Figure 1). • September 30, 2012 At 19:50 AKDT a 600 kHz Nortek Acoustic Wave and Current (AWAC) profiler provided by NREL was deployed and began collecting data at N2 (lat -163.3870W long 54.8515N). • October 2, 2012 At 19:59 AKDT a 300 kHz RDI ADCP was deployed and began collecting data at S2 (lat -163.3676W long 54.8174N). The HOBO water level sensors were also deployed approximately 7 nm North and South of False Pass (Figure 2). • October 29, 2012 Monty Worthington, ORPC, mobilized back to False Pass for ADCP recovery operations where he met Calvin Kashevarof under contract to APICDA to skipper the Nightrider for these efforts. • October 30, 2012 At 12:44 AKDT the AWAC ADCP was recovered and completed its data collection, logging 29.7 days of data. • November 3, 2012 The HOBO deployed north of False Pass was recovered at 12:30 AKDT. • November 4, 2012 The RDI ADCP deployed at S2 was recovered at 17:45 AKDT. This ADCP had stopped recording data on October 3, 2012 at 3:57 AKDT due to premature battery depletion, logging 28.35 days of data. March 25, 2012 The HOBO deployed south of False Pass was recovered by Shane Hoblet and his crew while commercial fishing. It had washed up on the beach near its deployment site and will be returned to UAA for data analysis. The location of the two sites at which the ADCPs were deployed is shown in Figures 1 and 2. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 6 of 15 Figure 1. Location of AWAC and RDI ADCP deployments. Figure 2. Location of ADCP and HOBO deployments in the vicinity of False Pass. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 7 of 15 Data Analysis and Quality Control ADCP Configuration Both the RDI AWAC and Nortek ADCP were configured in the field and calibrated for each of the sites, including calibration of the magnetic compass on each device, setting of the deployment depth, and configuring the data acquisition parameters. Each device passed the configuration checks performed under the guidance of NREL and Benthic Geoscience personnel. Differences in the two devices necessitated programming each device to sample and store data at different intervals while optimizing for the maximum rate of data collection, storage and battery life. This programming allowed the data to be utilized to the maximum extent for analysis of the strength of the resource, direction of the currents, and potential analysis of turbulence (Table 1). Each device also had a slightly different “blanking distance.” This is the distance between the device and the first bin of data. This resulted in a 0.2 meter difference in the height above the seafloor of nearest data bins between the two devices. Table 1. Data logging parameters of AWAC and RDI ADCP. Data Quality Control The data from the AWAC and RDI ADCPs was downloaded from the devices, and data quality and accuracy was verified independently by NREL and ORPC. Data analysis was focused approximately 10.7 meters above the bottom for the RDI ADCP and 10.5 meters above the bottom for the AWAC ADCP—the anticipated height of ORPC’s TidGen™ device and a likely hub height for medium sized tidal turbines. Data was also analyzed throughout the water column for comparison purposes (see Appendix A and B). The strongest near surface current velocities and highest energy densities were also identified. As the RDI had a pressure sensor, it also collected data on the water level and identified the surface of the water. The AWAC did not have a pressure sensor, so water surface and “false” data bins from above the water surface were identified by unrealistic trends in the data. At site N2, the deployment depth was 26 meters (85 feet) and at least 22 bins of quality data were collected above. The data, however, appeared Device and Site Data Collection Start (AKDT) Data Collection End (AKDT) Data Collection Duration Blanking Distance (meters) Bin Size (meters) Sample Rate Data Storage RDI ADCP at site S2 10/2/12 at 19:59 10/31/12 at 3:57 28.35 days 3.2 1 Ping every 1.8 sec Average of 5 pings stored every 9 sec Nortek AWAC at site N2 9/30/12 at 19:50 10/30/12 at 12:44 29.7 days 1 1 Ping every 1 sec Average of 60 pings stored once a minute Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 8 of 15 unreliable due either to surface reflection or possibly interference from the submerged buoy used in the deployment. At site S2 the deployment depth was 35 meters (114 feet), and 32 bins of quality data were collected. One challenge encountered in performing a comparative analysis of the sites was due to the fact that the RDI ADCP, deployed at site S2, had stopped logging data before the end of the synodic full lunar cycle (28.35 days of data instead of 29.53 days). This was likely due to premature battery depletion. The ADCP had been programmed to use 90% of its battery over a 29.5 day deployment which should have left reserve capacity; but this was not the case. Because of this, it was necessary to determine how to normalize the data for comparison purposes between the two sites because a full lunar cycle of data was not collected at S2. ORPC analyzed the difference between the data collected by first comparing the data from a full lunar cycle which was collected at N2 to the data from site N2 during the 27.5 days during which concurrent data was collected at site S2. Mean velocities at the selected depth (10.5 meters above the seafloor) were 1.24 m/s for the flood tide for both durations, while for the ebb tide, the mean velocity was slightly higher for the full lunar cycle at 1.25 m/s (as opposed to 1.24 m/s for the 27.5 day cycle, a difference of less than 1%). The average energy density also differed slightly between 1.57 kW/m^2 for the full lunar cycle as compared to 1.54 kW/m^2 for the period of concurrent data collection. This represents a 1.9% difference in energy density; a larger difference than the current velocity as it varies as a cube of current velocity. This difference is within the acceptable range for extrapolating annual energy output as natural variations between concurrent lunar cycles may exhibit similar differences. It was therefore deemed a correct approach to focus on the 27.5 day time period of concurrent data collection for comparison of energy at the two sites and for extrapolation of annual energy production. The data presented in this report was analyzed over the 27.5 day time period of concurrent deployment. Current velocity, energy density and flow symmetry comparison Table 2 shows the comparative current velocities and energy density at sites N2 and S2 using the 27.5 days of direct overlap in deployment of the two devices. At 10.5 meters above the seafloor, the N2 site had a maximum velocity of 2.51 m/s and average velocity of 1.24 m/s and an average energy density of 1.54 kW/m^2. By comparison, at 10.7 meters above the seafloor the S2 site had a maximum current of 3.68 m/s an average velocity of 1.62 m/s and an average energy density of 3.68 kW/m^2—over twice the available energy of site N2. At both sites, the strongest currents occurred during the ebb (southerly) flows. Peak current velocities and energy densities occurred near the surface of each site, but, here again, energy density at site S2 was more than double that of N2. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 9 of 15 Table 2. Energy density and current velocity comparison at N2 and S2. The flow direction and its symmetry between flood and ebb events at tidal sites can be highly variable, and this can have adverse effects on energy capture using tidal turbines. It is important to analyze this aspect of tidal currents as asymmetric currents can have adverse effects on total recoverable energy. In addition to analysis of the mean direction and standard deviation of the currents direction in Table 2, ORPC generated a “Tidal Rose” for each site at the tidal turbines hub height to graphically depict current direction, symmetry, and magnitude. These Tidal Roses reveal that the flow is highly symmetric (near to180 degrees opposed) at sites S2 and N2 and that viable current velocities for energy production occur a large amount of the time. However, current velocities and overall energy at N2 are significantly lower as noted above. Figures 3 and 4 show the Tidal Rose for the selected depth for energy analysis of each site. A Tidal Rose for each bin of data is included in Appendix A. A similar analysis, highlighting the current direction and magnitude with scatter plots, is displayed in Figures 5 and 6. Site (depth above seafloor) N2 (10.5 m) S2 (10.7m) N2 (20.5 m) S2 (32.7m) Flood Mean Direction (deg) -33.8 -19.7 -34.7 -23.8 Std. Deviation from Mean axis (deg) 3.90 13.30 3.89 9.91 Mean Speed (m/s) 1.24 1.47 1.41 1.67 Max Sustained Speed (m/s) 2.30 2.96 2.64 2.92 Mean Power Density (kW/m^2) 1.49 2.56 2.21 3.72 Ebb Mean Direction (deg) 154 167 162 162 Std. Deviation from Mean axis (deg) 2.94 3.03 4.33 1.96 Mean Speed (m/s) -1.24 -1.76 -1.41 -2.14 Max Sustained Speed (m/s) -2.51 -3.68 -2.85 -4.46 Mean Power Density (kW/m^2) 1.60 4.82 2.34 8.76 Combined Mean Speed (m/s) 1.24 1.62 1.41 1.91 Max Sustained Speed (m/s) 2.51 3.68 2.85 4.46 Mean Power Density (kW/m^2) 1.54 3.68 2.27 6.21 Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 10 of 15 Figure 3. Tidal Rose for RDI ADCP deployed at site S2 10.7 meters above the seafloor. Figure 4. Tidal Rose for AWAC deployed at site N2 10.5 meters above the seafloor. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 11 of 15 Figure 5. Scatter plot showing current direction and magnitude from RDI ADCP data collected at site S2 10.7 meters above the seafloor. Figure 6. Scatter plot showing current direction and magnitude from Nortek AWAC data collected at site N2 10.5 meters above the seafloor. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 12 of 15 Data Analysis over the entire water column The following figures illustrate the data of the site inclusive of the entire water column to provide a perspective on how the resource varies as a function of depth and time. Figures 5 and 6 show the temporal and spatial variation of current velocity magnitude and direction at sites S2 and N2 correspondingly. Figure 7. RDI ADCP data from S2 showing velocity magnitude in m/s and current direction in degrees over 27.5 days of concurrent deployment, water surface level is shown at top (note velocity scale is different in Figures 5 and 6). Figure 8. Nortek AWAC data from N2 showing velocity magnitude in m/s and current direction in degrees over 27.5 days of concurrent deployment (note velocity scale is different in Figure 5 and 6). Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 13 of 15 Figures 7 and 8 show the spatial and temporal variation of the “residual” current velocity correspondingly at sites S2 and N2. This residual current is the net flow of water over the deployment period with the tidally influenced flows extracted. These residual currents are only at a single column in the cross section of the channel and can be explained by circulation patterns where ebb currents are enhanced in one portion of a channel and flood currents are enhanced in another area while the net current is essential zero. Fresh water input at one end of an estuary can also lead to residual currents being stronger in one direction than another. These currents are not generally of large consequence for tidal energy extraction, but the information is included here to provide differentiation of tidal versus ocean currents at False Pass as the influence of each was not well understood at the onset of this study. During initial desktop investigation into the False Pass project site, it was suspected that the northwesterly flowing Alaska ocean current might have an influence in creating a stronger northerly flood current while diminishing the southerly ebb current. As these residual current velocity charts suggest, larger tidal variations resulted in a stronger residual southerly ebb current at both sites and overall energy was higher on the ebb tide over the course of the month. Smaller tidal variations corresponded to a stronger residual northerly flood current though overall flood energy was lower at both sites. Figure 9. RDI ADCP data from S2 showing residual current velocity over deployment duration. A positive current is indicative of the northerly flood residual current while a negative current velocity is indicative of a southerly ebb residual current. The velocity data in the lower image represents the tidal velocity 10.7 meters above the seafloor. Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 14 of 15 Figure 10. AWAC data from N2 showing residual current velocity over deployment duration. A positive current is indicative of the northerly flood current while a negative current velocity is indicative of a southerly ebb residual current. The velocity data in the lower image represents the tidal velocity 10.5 meters above the seafloor. Recoverable Energy For a tidal energy device such as ORPC’s TidGen™ turbine generator unit (TGU), deployed with a hub height 10.5 meters above the bottom, a swept area of 59 m^2 and an efficiency of 32.3%, the annual energy delivery from site N2 would be 284,490 kWh, resulting in a capacity factor of 21.6%. By comparison the same device deployed 10.5 meters above the bottom at S2 would have an annual generation of 577,655 kWh and a 43.9% capacity factor. For higher efficiency (36%) turbines with the same swept area, such as future versions of ORPC power systems, the annual energy delivered would increase to 318,972 kWh and 24% capacity factor at N2 and 624,941 kWh and 47.5 % capacity factor at S2. By comparison to other sites which ORPC has studied in Alaska and Maine, site S2 represents a robust and very attractive tidal energy resource, while site N2 is a marginal resource for energy production using a device analogous to ORPC’s TidGen™ TGU. Table 3. Recoverable energy comparison at N2 and S2 approximately 10.5 meters above seafloor. Site N2 10.5 m above seafloor S2 10.7 m above seafloor Annual recoverable energy (59 sq m turbine with 32.2% efficiency) 284,490 kWh 577,655 kWh Annual recoverable energy (59 sq m turbine with 36 % efficiency) 317,107 kWh 625,258 kWh Ocean Renewable Power Company Reconnaissance Tidal Current Survey Report April 1, 2013 Confidential Page 15 of 15 Conclusion Based on the results of the reconnaissance tidal current survey performed in the False Pass area, it is clear that, from strictly a resource perspective, site S2 has great potential and site N2 is marginal at best. However, many other factors come into play when evaluating the feasibility of a site for a tidal energy project. These factors include bathymetric and geotechnical considerations, access to the site, proximity to the interconnection point with the local grid, etc. The evaluation of the feasibility of a tidal energy project at a marginal resource site such as N2 is highly dependent on the costs associated with the development and construction of the project and the value of the power that is delivered. While the energy density found at site N2 is much lower than that encountered at S2, the short transmission distance from site N2 to the interconnect locations in False Pass (approximately ½ mile) and the relative easy access to the site could reduce associated construction costs significantly and make a project in its vicinity economically viable. It is also entirely possible that better tidal current velocities exist in the near vicinity of site N2 that could increase the site’s energy density to a point where development of a project is more attractive. ORPC believes it would be worthwhile to enhance circulation modeling efforts in the vicinity of N2 to determine if local variations in the velocity profile would lead to identification of one or more specific sites with higher energy density. This could tip the scales in favor of a tidal energy project in the vicinity of site N2, and if so, make it desirable to follow up with an ADCP survey at the location(s) of interest. The robust tidal energy resource at site S2 will provide exceptional output from a tidal energy project with impressive capacity factors in the range of 40-50% of rated capacity. Site S2 is, however, more remote than site N2, and construction costs will likely be higher, especially for the associated power transmission line which would be at least 2 miles long. Further investigation of project development considerations and constructability of a tidal energy project at site S2 are warranted to assess the economics of installing a tidal energy project at this site. Of key importance in this assessment will be a bathymetric survey covering the area of potential device locations and submarine power cable routes, and analysis of technical and cost considerations for a power cable line to connect the project to False Pass.