HomeMy WebLinkAboutNEA WH2P REFG Grant Application 7Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Application Page 1 of 31 7/2/2013
Application Forms and Instructions
This instruction page and the following grant application constitutes the Grant Application Form
for Round VII of the Renewable Energy Fund. A separate application form is available for
projects with a primary purpose of producing heat (see RFA section 1.5). This is the standard
form for all other projects, including projects that will produce heat and electricity. An electronic
version of the Request for Applications (RFA) and both application forms is available online at:
http://www.akenergyauthority.org/REFund7.html.
If you need technical assistance filling out this application, please contact Shawn Calfa,
the Alaska Energy Authority Grant Administrator at (907) 771-3031 or at
scalfa@aidea.org.
If you are applying for grants for more than one project, provide separate application
forms for each project.
Multiple phases for the same project may be submitted as one application.
If you are applying for grant funding for more than one phase of a project, provide
milestones and grant budget for each phase of the project.
In order to ensure that grants provide sufficient benefit to the public, AEA may limit
recommendations for grants to preliminary development phases in accordance with 3
ACC 107.605(1).
If some work has already been completed on your project and you are requesting
funding for an advanced phase, submit information sufficient to demonstrate that the
preceding phases are completed and funding for an advanced phase is warranted.
If you have additional information or reports you would like the Authority to consider in
reviewing your application, either provide an electronic version of the document with
your submission or reference a web link where it can be downloaded or reviewed.
In the sections below, please enter responses in the spaces provided, often under the
section heading. You may add additional rows or space to the form to provide sufficient
space for the information, or attach additional sheets if needed.
REMINDER:
Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials
submitted to the Authority may be subject to disclosure requirements under the act if no
statutory exemptions apply.
All applications received will be posted on the Authority web site after final
recommendations are made to the legislature.
In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or
proprietary company data be kept confidential subject to review and approval by the
Authority. If you want information is to be kept confidential the applicant must:
o Request the information be kept confidential.
o Clearly identify the information that is the trade secret or proprietary in their
application.
o Receive concurrence from the Authority that the information will be kept
confidential. If the Authority determines it is not confidential it will be treated as a
public record in accordance with AS 40.25 or returned to the applicant upon
request.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 2 of 31 7/1/2013
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Naknek Electric Association, Inc.
Type of Entity: 501 (c) (12) Rural Electric Cooperative Fiscal Year End: December 31
Tax ID #: 02-0027674 Tax Status: For-profit X Non-profit Government ( check one)
Date of last financial statement audit: March 25, 2013
Mailing Address
Naknek Electric Association, Inc.
PO Box 118
Naknek, Alaska 99633
Physical Address
Naknek Electric Association, Inc.
# 1 School Road
Naknek, Alaska 99633
Telephone
907 246 4261
Fax
907 246 6242
Email
dvukich@nea.coop
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Donna Vukich
Title
General Manager
Naknek Electric Association, Inc.
Mailing Address
Naknek Electric Association, Inc.
PO Box 118
Naknek, Alaska 99633
Telephone
907 246 4261
Fax
907 246 6242
Email
dvukich@nea.coop
1.2 APPLICANT MINIMUM REQUIREMENTS
Please check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected.
1.2.1 As an Applicant, we are: (put an X in the appropriate box)
X An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
An independent power producer in accordance with 3 AAC 107.695 (a) (1), or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
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.
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Grant Application - Standard Form
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SECTION 2 – PROJECT SUMMARY
This section is intended to be no more than a 2-3 page overview of your project.
2.1 Project Title – (Provide a 4 to 7 word title for your project). Type in space below.
NEA Stack Heat to Power Project
2.2 Project Location –
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project in the subsections below.
2.2.1 Location of Project – Latitude and longitude, street address, or community name.
Latitude and longitude coordinates may be obtained from Google Maps by finding you project’s location on the map
and then right clicking with the mouse and selecting “What is here? The coordinates will be displayed in the Google
search window above the map in a format as follows: 61.195676.-149.898663. If you would like assistance
obtaining this information please contact AEA at 907-771-3031.
Naknek Electric Association’s service area includes the communities of Naknek, South
Naknek, and King Salmon for which it holds a Certificate of Public Necessity and
Convenience. The community of Naknek lies at approximately 58.728330Â˚ North Latitude
and - 157.01389Â˚ West Longitude (Sec. 03, T017S, R047W, Seward Meridian). The
community of South Naknek lies at approximately 58.715560Â˚ North Latitude and -
156.9806Â˚ West Longitude (Sec. 11, T017S, R047W, Seward Meridian). The community of
King Salmon lies at Approximately 58.688330Â˚ North Latitude and - 156.66139Â˚West
Longitude (Sec. 23, T017S, R045W, Seward Meridian).
2.2.2 Community benefiting – Name(s) of the community or communities that will be
the beneficiaries of the project.
NEA’s Stack Heat to Power efficiency project will benefit the cooperative’s consumers in
Naknek, South Naknek, King Salmon, the United States Air Force Base in King Salmon, and
the majority of the seafood processors and support industries operating in Bristol Bay. Meeting
the growing power requirements of large power consumers like the processing industry in
Naknek and the United States Air Force Base in King Salmon without increasing fuel
consumption or emissions will help stabilize costs and improve economy of scale that will
benefit all cooperative consumers.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind Biomass or Biofuels (excluding heat-only)
Hydro, Including Run of River Hydrokinetic
Geothermal, Excluding Heat Pumps Transmission of Renewable Energy
Solar Photovoltaic Storage of Renewable
X Stack Heat to Power Generation Small Natural Gas
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Pre-Construction Construction
Reconnaissance X Final Design and Permitting
X Feasibility and Conceptual Design X Construction and Commissioning
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2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of the proposed project.
The Cooperative faces an urgent need to stabilize and lower the cost of electricity to consumers.
Improving fuel efficiency in its diesel generation facility NEA will install two highly efficient waste
heat to power (WH2P) systems onto existing diesel-fueled reciprocating engines to increase
efficiency and reduce costs. The selected WH2P systems utilize supercritical carbon dioxide
(sCO2) as the working fluid for converting stack heat to electrical power without additional fuel
consumption or emissions. The stack heat to power project is scheduled for completion fifteen
(15) months from the authorization to proceed date, and the proposed budget supports all design,
fabrication, installation, commissioning, training, management, and reporting tasks for a $1.94
million investment.
2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel
costs, lower energy costs, local jobs created, etc.)
NEA board and management have targeted fuel efficiency measures for controlling costs and
stabilizing rates. NEA will install two (2) highly efficient heat-driven power generation engines
utilizing supercritical carbon dioxide (sCO2) as the working fluid for converting stack heat to kWe
without additional fuel consumption or emissions for increased generation efficiency and plant
capacity. The cooperative buys and burns 1.5 million gallons of diesel fuel annually and is
burdened with energy insecurity because of volatility and high prices in the oil market, fuel
transportation costs, and regulatory compliance expenses all of which continue trending
upwards and have resulted in a fuel surcharge that is greater than all other costs in the kWh
rate combined. Responding to increased demand from the fishing industry and the prospects of
fuel surcharge increases with each delivery NEA is making plant efficiency a priority.
NEA is not your average remote, off-the-grid, stand-alone diesel generation and distribution
cooperative in rural Alaska. It serves not only residential and commercial consumers in its
service area but also the seafood processors, support industries, and harvesters that bring the
world’s largest and sustainable wild salmon runs in Bristol Bay to market. The seasonal spike in
electric demand and increased kWh sales attributable to the fishing industry improves economy
of scale, controls costs, and stabilizes rates for all members.
NEA’s stack heat to power project will improve operating and energy efficiency in a diesel plant
where most of the generation assets were installed in the 1990’s or earlier. Reducing the
operating hours on gensets will extend their useful life and avoid equipment replacement costs
which are passed on to consumers through the kWh rate. Additional kWh generated by the
heat engines will meet growing demand with firm reliable electric energy for increased kWh
sales that will contribute to rate stabilization.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 5 of 31 7/1/2013
2.6 PROJECT BUDGET OVERVIEW
Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source
of other contributions to the project.
NEA Stack Heat to Power Budget Narrative and Assumptions
After three full years of Chapter 11 Reorganization NEA will substantially consummate its debt
in August 2013. This means that a significant portion of geothermal project debt will be paid
and subsequent to U.S. Bankruptcy Court review and approval the cooperative will emerge from
bankruptcy. The cooperative has been in a difficult financial position since voluntarily filing
Chapter 11 to protect NEA’s assets. The cooperative’s approved plan of reorganization
includes continued debt payback over the next twenty (20) years. The cooperative is not in the
position to fund the project without financial assistance.
NEA management is submitting this Stack Heat to Power Project (WH2P) proposal to Alaska’s
Renewable Energy Fund Grant Program (REFG) and to the United States Department of
Agriculture (USDA) Rural Utilities Service High Energy Cost Grant Program (HECG) for a total
project cost of $1,940,379 (including NEA’s in-kind cost-share). NEA is unable to finance the
project from its available resources without grant assistance but with sales revenue will be able
to sustain the project financially over the long term without grant assistance.
1) The program schedule and budget assumes an authorization to proceed (ATP) date of 01
October 2014. A later ATP date will shift the 15-month program timeline accordingly.
2) The overall program schedule and budget is structured to have long lead items (e.g., heat
engines and waste heat exchanger) ready for shipment to Naknek, AK during May 2015 to
coincide with local construction seasons.
3) Personnel and fringe is budgeted for 2.5 FTE engineers and one (1) program manager for
4Q 2014 and 1Q 2015 to support final design review milestone in early 2015. Remainder
of personnel and fringe will be support from supply chain director and program manager to
monitor procurements, as needed on a limited part-time basis with as-needed support
from supply chain director during 4Q 2014. Allocation for one (1) engineer and one (1)
program manager for three (3) man-months each to provide program support during
installation, checkout and commissioning; including a customer training meeting at the
customer site for systems operation after commissioning is completed in 4Q2015.
4) Travel is budgeted at two (2) trips to Naknek, AK for three (3) persons each, or six (6)
person trip, and (1) additional (1) person trip to Naknek, AK. Remainder of travel budget
to be used for shorter trips by program manager, engineers, and supply chain director (if
needed) to locations in the lower 48 states for supplier site visits and meetings associated
with waste heat exchanger and balance of plant equipment fabrication. Travel budgeted
at three (3) trips to Naknek, AK for two (2) persons each; or six (6) person -trips for onsite
engineering support and supervision for completion of equipment installation,
commissioning and test operations 4Q2015.
5) Equipment allocated at $100,000 for the initial down payment for procurement of long lead
equipment items for the heat engines and waste heat exchanger. $1,040,000 allocated for
equipment to complete procurement of the heat engines and waste heat exchanger
involving fabrication, assembly, systems integration and factory checkout of a thermal
engine skid, and associated balance of plant skids 3Q2015.
6) Supplies budgeted for miscellaneous materials and tools needed for full systems
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Grant Application - Standard Form
AEA 2014-006 Grant Application Page 6 of 31 7/1/2013
checkout, and Naknek, AK installation site during equipment installation and
commissioning.
7) Contractual budget allocated for 3 FTE engineers and designers at engineering/design
firm to support engineering design for site modifications and equipment installation tasks,
with preliminary installation plan, final installation plan, and final drawings as key
deliverables for the final design review (FDR) meeting scheduled early 2015 and
subsequent release of funds for procurement in early 1Q 2015. Contractual allocated at
$30,000 for site support and oversight during construction.
8) Construction, allocated at $97,000 for Naknek plant staff and local trades contractors to
carry out demolition/removal (as required), site modification, construction and equipment
installation.
9) Other budget allocations of $100,000 to cover shipping costs for the two heat engines and
waste heat exchanger from their respective manufacturing facilities located in the U.S.
Midwest. Equipment will have to be transported by ground then shipped by barge from the
lower 48 states to Naknek, AK.
10) Indirect charges are based on all budget categories and do not exceed 4% of grant
funding.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project’s tota l costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application $ 1,843,379
2.7.2 Cash match to be provided $
2.7.3 In-kind match to be provided by NEA $ 97,000
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) $ 1,940,379
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.
$ 1,940,379
2.7.8 Additional Performance Monitoring Equipment not covered
by the project but required for the Grant Only applicable to
construction phase projects.
$0
2.7.9 Estimated Direct Financial Benefit (Savings) $ 10,720,000
(20-yr avoided fuel costs)
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.
$ 1,260,935 /yr.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 7 of 31 7/1/2013
Estimated Levelized Cost of Electricity for the Proposed WH2P Installation
The Levelized Cost of Electricity (LCOE) is the cost of power generation at the price at which
electricity must be sold in order to cover all fixed and variable generating expenses and to match
the return on company’s equity implicit in the assumed cost of money. It includes the initial
capital, discount rate as well as the costs of continuous operation, fuel and maintenance for the
life of the installation. The LCOE is limited to a single operating condition, typically new and
clean rated performance, and is usually calculated at International Organization for
Standardization (ISO) baseload. It also uses a set of assumptions based on best practices, and
experience from similar projects. The expression for LCOE is:
As a first-pass estimate, Echogen calculated LCOE based on the following assumptions:
Tax rate = 35.0%
Property tax = 1.0%
Plant cost per kW = $2,887
Life of system installation = 20 years
Design point capacity (net) of WH2P plant = 672 kW
Interconnection Capacity Factor (average) = 39%
Generated WH2P electricity = 2,321,050 kWh
Non-fuel Operating & Maintenance costs = $0.0050 /kWh
The resulting LCOE was calculated to be $112.23 /MWh, which when compared to the current
annual cost of electricity at $233 /MWh indicates that the proposed WH2P installation will be very
cost-effective. Additional calculations will need to be made after the installation becomes
operational in order to replace the assumed variables with measured parameters. In addition,
the final metric and figure of merit will be the comparison of the total electricity and heating fuel
costs for residents with and without the cost savings provided by waste heat to power from the
proposed installation.
The effectiveness of the proposed WH2P installation to reduce the cost of electricity by recycling
waste heat into usable electricity will be measured by monitoring the following parameters at the
NEA’s facility during normal daily operations:
New line meters (included in the proposed budget and installed as part of this project for
switchgear upgrade to accept the new heat engines) to measure the waste-heat-to-
power (WH2P) electrical power produced by each heat engine as it is transferred to the
utility’s grid for export.
Existing line meters to measure the primary electrical power produced by each genset as
it is transferred to the utility’s grid for export.
= Average lifetime levelized cost of electricity
= Investment expenditures in the year t
= Operations and maintenance costs in the year t
= Fuel costs in the year t
= Electricity generation in the year t
= Discount rate
= Life of the system installation
Where:
LCOE
It
Mt
Ft
Et
r
n
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AEA 2014-006 Grant Application Page 8 of 31 7/1/2013
Operating hours on each heat engine as an indicator of WH2P electrical power
production.
Operating hours on each genset as an indicator of diesel fuel consumption to produce
primary electrical power.
Total diesel fuel consumption as an aggregate measurement and independent measure
of the fuel consumed by the gensets.
Existing line meters used to measure customer demand for electrical power from the grid.
Residential electric meters to measure aggregate electrical usage at the point of use.
Calculation of the running costs to produce electricity on a $/MWh basis in real time using
the above mentioned metered parameters.
The primary metric will be the calculation and comparison of the costs of electricity
production by way of diesel fuel (primary) and WH2P (recycled), and the calculation of
diesel fuel saved (e.g. avoided cost).
SECTION 3 – PROJECT MANAGEMENT PLAN
Describe who will be responsible for managing the project and provide a plan for successfully
completing the project within the scope, schedule and budget proposed in the application.
3.1 Project Manager
Tell us who will be managing the project for the Grantee and include contact information, a
resume and references for the manager(s). In the electronic submittal, please submit resumes
as separate PDFs if the applicant would like those excluded from the web posting of this
application. If the applicant does not have a project manager indicate how you intend to solicit
project management support. If the applicant expects project management assistance from
AEA or another government entity, state that in this section.
Please note that resumes for leads on NEA’s WH2P project are presented in the narrative
and included SECTION 3.
NEA WH2P Project Management
Echogen Power Systems LLC is located at 365 Water St., Akron, Ohio 44308 U.S.A., (234) 542
4379, (website: www.echogen.com), at a 19,000 ft² facility consisting of corporate offices and a
3,300 ft² engineering laboratory/machine shop. Echogen is the prime systems contractor and
will manage engineering design, and subcontractor services. Key management personnel from
Echogen are described below using narrative resume format.
NEA general manager Donna Vukich will review grant funding invoicing and reimbursement
requests for all project tasks including procurement and contracts and will be the primary point
of contact for all grant purposes. NEA utilizes generally accepted accounting practices which
include annual and single audits as required by RUS and other agencies.
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ECHOGEN Organizational Structure
3.2 Project Schedule and Milestones
Please fill out the schedule below. Be sure to identify key tasks and decision points in your
project along with estimated start and end dates for each of the milestones and tasks. Please
clearly identify the beginning and ending of all phases of your proposed project.
Project Timeline
NEA’s production schedule for implementing the grant award consists of twelve (12) major tasks
divided into three program phases: Design, Fabrication, and Installation, Commissioning &
Operations. Seasonal weather in Naknek, AK will play a key role in program planning and
execution with respect to equipment shipment and delivery to the site. The best weather occurs
during June / July with potentially acceptable weather in May and August. Weather during the
remainder of the year is considered poor with the most severe winter conditions in January.
NEA Stack Heat to Power Project Schedule
Milestones Tasks Start Date End Date
Project Definition and Design Site definition and requirements 10/01/14 11/15/14
Preliminary installation plan 10/15/14 10/31/14
Systems performance modeling 11/01/14 11/30/14
Site modification design 11/01/14 11/30/14
Exhaust interface design 12/01/14 12/31/14
Cooling tower design 12/01/14 12/31/14
Final installation plan 01/01/15 01/31/15
Fabrication and Procurement Heat engine fabrication 12/01/14 06/30/15
Exhaust interface fabrication 03/01/15 06/30/15
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Installation, Commissioning, and
Operations
Site preparation, construction and
installation 04/01/15 06/30/15
Systems commissioning / checkout 07/01/15 08/31/15
NEA Stack Heat to Power on Line Qualification tests and training,
operation, final project reporting and
grant closeout 08/01/15 12/31/15
3.3 Project Resources
Describe the personnel, contractors, accounting or bookkeeping personnel or firms, equipment,
and services you will use to accomplish the project. Include any partnerships or commitments
with other entities you have or anticipate will be needed to complete your project. Describe any
existing contracts and the selection process you may use for major equipment purchases or
contracts. Include brief resumes and references for known, key personnel, contractors, and
suppliers as an attachment to your application.
Professional Resources
Echogen Program Manager Ben Iannarelli will manage the installation of the Echogen EPS
heat engine, and the design, fabrication, construction and installation of the waste heat
exchange, balance of plant systems and associated facility modifications at NEA’s generation
facility. This includes supervising the outside contractors for engineering design, engineering
procurement & construction (EPC), and construction.
Mr. Iannarelli joined Echogen in 2011 as a Senior Program Manager for the design and
development of the Echogen EPS100 7.5 MWe (nominal) heat engine. He works closely with
the Echogen management team to define projects and leads the development of project
charters to achieve corporate short and long term goal. He oversees development and
execution of all program documents including: project plans, schedules, budgets, quality plans,
communications plans, resource plans, and other key documents. Ben manages project
accounting duties, including, tracking and reporting team hours and expenses on a weekly
basis; managing project budgets; analyzing project profitability, revenue margins, bill rates and
utilizations; and providing project costing reports to management.
Prior to joining Echogen, Mr. Iannarelli has been a project coordinator/manager with more than
twenty nine (29) years of diversified project management and engineering experience in the
engineering, design and construction of complex chemical, glass, steel and industrial facilit ies
while working for Middough Engineers and Designers Inc., URS (MK-Ferguson), and the Davy-
McKee Corp. His previous projects include multi-million dollar new and retrofit installations of
power generation equipment for U.S. and Chinese facilities at Dow Corning, and wastewater
treatment and environmental process control systems for Corning, Shell Chemical, and DuPont.
Iannarelli also supervised and directed piping and process engineering teams for many of the
above mentioned projects. As a contract project engineer and lead mechanical engineer for
Corning (Charleston, SC), he directed a multi-discipline engineering and design effort for a
grassroots $90 million high purity fused silica project.
In 1995, Mr. Iannarelli nominated for the DuPont 1995 Engineering Excellence Award
leadership in directing the piping engineering and design of a $40 million polymer facility for
Teijin-DuPont Films, Nashville, TN from concept to completion. Responsibilities included
supervising, budgeting, and scheduling of over forty five (45) piping engineers, designers and
CAD draftsmen and modelers. He holds a B.S., Mechanical Engineering Technology,
Cleveland State University (1998), A.A.S., Civil Engineering, Youngstown State University
(1981), and certification from the Project Management Institute (PMI), in Project Management
Training (2005).
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Echogen’s Alan Chambers leads production engineering activities at Echogen including
product design, systems packaging, design for manufacturability, and sustaining engineering for
Echogen heat engines and associated accessories. This includes the creation and submittal of
O&M manuals, bill of materials, and transitioning products from initial product development
projects to full commercial launch. He also is engineering liaison between Echogen’s
operations group (supply chain) for product manufacturing and programs group for the delivery
of product systems to program managers leading various customer projects.
Mr. Chambers has 35 years of experience in technology and product development for gas
turbine engines with Allison Gas Turbine (now part of Rolls-Royce) where he was responsible
for aircraft and energy gas turbine product development, business improvement, and
fleet/aftermarket management. Prior to joining Echogen in 2011, Chambers held various
management positions at Rolls-Royce North America including: engineering director for 501K
gas turbines, program manager for cost reduction, and chief project engineer for industrial and
military 501K engines. He holds a B.S., Mechanical Engineering from the General Motors
Institute (1982).
Engineering design/build contractor Louis Perry & Associates (LPA) of Wadsworth, OH
(www.louisperry.com) is a fully integrated, multi-disciplined engineering/architectural firm using
a specialized team approach to engineering and architectural projects. LPA has one hundred
forty five (145) professionals in architecture, instrumentation and controls, civil, structural,
electrical, and mechanical and process engineering providing designs for a wide range of
markets including power, industrial, educational and commercial.
At LPA Mr. Perry offers engineering services in boiler support steel, boiler piping support
design, environmental project selective catalytic reduction, wet and dry scrubbers for SO
removal, ammonia storage, delivery systems, and balance of plant projects.
Echogen’s key contact at Louis Perry & Associates is Rick Rissmiller, Vice President. Louis
Perry’s offices, located at 165 Smokerise Drive, Wadsworth, Ohio 44281, (330) 334 1585, are
within a one-hour drive from Echogen’s offices. Louis Perry & Associates was a key contractor
on Echogen’s successful EPS100 7.5MWe heat engine development program.
NEA has a competent and dedicated team of professionals capable of administration,
implementation, and oversight of its WH2P project plan and design with the ability to perform
and resources to maintain system operations without further funding once operational.
Donna Vukich – General Manager of Naknek Electric Association, Inc., located in Naknek, AK
at #1 School Road, PO Box 118, Naknek, AK 99633, (907) 246 4261, email:
dvukich@nea.coop.
27+ years of experience in electric generation and distribution in rural Alaska
15 years as general manager and 6 years as chief financial officer
Extensive interaction with federal and state lawmakers and agencies
Represented rural perspective and cooperative principles at regional, state and federal levels
Successful grant writing and procurements
Air quality permit to operate since 1990 issued through ADEC
Management and services agreement with INN Electric Cooperative, Inc.
Procured and directed an RUS $2.3M distribution project for INN Electric Cooperative, Inc.
Technical assistance agreement with Denali Commission and Manokotak Power Company
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Earned NRECA Safety Achievement as one of the smallest electric coops in the nation
Achieved eight (8) year safety record of no loss-time accidents
Procured and implemented $2.7M RUS High Energy Cost Grant generation upgrade
Completed $3M generation upgrade within budget and on-time
Procured and managed NEA tank farm upgrade and expansion within budget and on-time
Completed upgrade to billing and accounting systems
Achieved load retention and growth during economic downturn in the region
Provided leadership in Bristol Bay fisheries economic development
Geothermal and wind R&D in Bristol Bay Alaska
Darrell Aspelund – NEA Plant Forman
Over thirty (30) years of experience managing plant operation and electric G & D at NEA
Responsible for scheduling, engine overhauls and plant and tank farm maintenance
Lead on tank farm and generation upgrades
Alaska Power Association Award
Peggy Saia – NEA Office Manager
Supervises office staff, accounts payable, accounts receivable
Interfaces with government agencies on utility issues
Performs all government and industry reporting requirements
Principal safety, loss control, and benefits administrator
James Gray, P.E. – Vector Engineering, Inc., 3423 E. 18th Ave., Anchorage, AK 99508 (907)
277 8328, email: jgray@alaska.net
Provides design, engineering and system installation services for NEA
3.4 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Please provide an alternative contact person and their contact information.
Project Reporting Plan
Five (5) quarterly reports will be prepared by project management and submitted to the Alaska
Energy Authority (AEA) REFG grant managers to summarize program status on each of the
twelve major tasks previously described. The report will contain information from prime systems
contractor and supporting subcontractors regarding program cost, schedule and technical
performance as work progresses. The quarterly reports will serve as a narrative to support
program invoices submitted to AEA on a monthly bases for the issuing of program funds. The
following information will be included in the cost section of the report:
Incurred costs for the reporting period
Accumulated costs to date of the report
Anticipated costs for the next reporting period
Estimated costs for program completion
A final project report will be prepared and submitted to AEA REFG grant managers after the
system’s commissioning is completed and the heat engine becomes operational. The final
report will summarize the final status and results of the entire project, including final costs. A
final design review (FDR) will be conducted early in the project during the 2nd quarter to review
the engineering designs for site modifications and construction details for the installation of the
heat engine, waste heat exchanger, and air-cooled cooling tower. The FDR will serve as the
key milestone and decision gate for proceeding with construction and installation. Based on the
FDR meeting, a final installation plan will be prepared to guide construction and installation.
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NEA Lead Contact: NEA Alternate Contact:
Donna Vukich - General Manager Peggy Saia - Office Manager
PO Box 168, Naknek AK 99633 PO Box 168, Naknek AK 99633
(907) 246 4261 Tel (907) 246 4261 Tel
(907) 246 6242 Fax (907) 246 6242 Fax
dvukich@nea.coop psaia@nea.coop
Echogen Lead Contact: Echogen Alternate Contact:
Ben Iannarelli Cully Caveness
365 Water St., Akron OH 44308 365 Water St., Akron OH 44308
(234) 542 4379 Tel (234) 542 4379 Tel
(330) 379 2357 Fax (330) 379 2357 Fax
3.5 Project Risk
Discuss potential problems and how you would address them.
Managing Project Delays and Schedule Slips
The program plan and schedule have been designed to provide logical checkpoints during the
course of work to review the status of impending key milestones for:
Authorization to proceed (ATP).
Placing purchase orders for long lead items (e.g., Echogen heat engine and wast e heat
exchanger).
Start of parallel tasks for performance modeling, and site and site-specific equipment
design.
Final design review meeting (with preliminary installation plan); release of final
installation plan.
Shipment and arrival of long lead items to the project site.
Start and completion of site preparation, construction, and equipment installation.
Completion of installation commissioning, checkout, and qualification testing.
Completion of NEA generation staff training.
Start of systems operation.
Final reporting and program close-out
These logical checkpoints include:
Bi-weekly program status meetings conducted at Echogen with teleconference
attendance by NEA management and supporting subcontractors.
Procurements status and tracking by the Echogen supply chain director.
Program cost tracking by the Echogen director of finance.
Quarterly status reports with assessments on program cost, schedule and technical
performance.
A critical program milestone is the shipment and arrival of the major pieces of equipment and
construction materials at NEA’s generation facility which is scheduled for May 2015 to coincide
with the start of local spring and summer weather. The best weather conditions occur during
June and July, with the possibility of good weather during May and August. The weather during
the remainder of the year is considered non-ideal.
Program delays of 2-3 months that slip equipment shipments to Naknek, AK until after
July/August stand the risk of equipment and materials not being delivered until the following
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spring. The scheduled start of site preparation, construction and equipment installation also
depends on these deliveries. The project schedule takes into consideration ideal and non-ideal
weather to aid in the planning, scheduling and execution of program activities. Contingency
time is built into the program schedule to minimize the risk. A key risk that cannot be controlled
by the program team is the date for authorization to proceed (ATP) which is at the discretion of
AEA REFG managers. The current program schedule assumes an 01 October 2014.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project. For pre-construction applications, describe
the resource to the extent known. For design and permitting or construction projects, please
provide feasibility documents, design documents, and permitting documents (if applicable) as
attachments to this application.
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.
Like most electric utilities in the bush, NEA relies on diesel-fueled reciprocating engines with
generators (e.g., gensets) to produce electrical power (see generation asset details below
below). With a total plant capacity of approximately 11.8 MW from ten (10) stationary gensets,
and one (1) recently installed Caterpillar 1.5 MW mobile generator NEA provides firm and
reliable service to new and existing seasonal large power consumers, and the various support
industries that rely on seamless power. The majority of NEA’s generating assets were installed
during the early 1990’s, some prior to that, and although well maintained the assets are ageing.
While the utility is able to buy diesel Fuel No. 2 at a wholesale price of $3.50 /gallon, cooperative
members pay over $5.24 /gallon (WorldWide Fuel, Naknek, AK, August 2013) for space heating
residences and process heating for the seafood industry. With NEA’s annual fuel cost of
approximately $5.5 million, consumers pay about $0.5503 /kWh for electricity. The utility is
looking for ways to control or reduce fuel costs and in turn, control or reduce the cost of
electricity to its members by improving plant operating and energy efficiency.
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4.2.2 Existing Energy Resources Used
Briefly discuss your understanding of the existing energy resources. Include a brief discussion of
any impact the project may have on existing energy infrastructure and resources.
Existing Cost of Electricity Production at the NEA
NEA buys and burns 1,500,000 gallons of diesel fuel annually, generating about 15 kWh per
gallon of fuel, and is able to store 2,160,000 gallons of diesel in six welded steel tanks contained
in a steel diked yard that is lined with an impermeable geomembrane. Fuel is purchased in bulk
Below: NEA Generation Facility Details and Photo of a Typical Genset Installation
(w/o recently installed mobile Unit #11)
(organized by decreasing capacity factor)
Below: Naknek Electric Power Generation Assets
(organized by decreasing capacity factor)
Note: All gensets selected for waste heat recovery except Unit 8 and the mobile 1.5 MW Caterpillar generator.
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with one or two annual deliveries. Combining NEA fuel requirements with other western Alaska
utilities, the 6.5 to 7 million gallons of diesel used by the group attract considerabl e attention from
fuel suppliers. Fuel is purchased at a competitive price, at about 20 cents per gallon above the
Oil Price Information Service (OPIS) listing for diesel fuel in Seattle. The utility reported that they
spend about $3.50 /gallon diesel. Therefore, the annual cost of electricity produced by the
existing gensets is calculated at $233 /MWh.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
NEA’s board of directors and management are very aware that volatility in the oil market, high
diesel prices, spiraling transportation adders, and air quality regulatory compliance cost increases
add up to some the highest electric rates in the nation. This is not only true in NEA’s service area
but throughout rural and remote Alaska where communities without access to the grid are held
hostage by oil prices and the transportation and delivery of fuel along habitat sensitive by-ways
for electric generation, transportation, and home heating.
96% of net electric generation in Southwest Alaska is provided by internal combustion engines.
1% is provided by wind, and 3% by hydroelectric (ISER). Renewable energy technology is being
applied as residential, commercial consumers including state and federal operations look for
ways to control costs and mitigate the environmental impacts of transporting and burning fossil
fuels. These renewable energy developments are financed by consumers with private and/or
public resources. Currently we see small wind and solar projects coming on-line that will
ultimately reduce kWh sales.
While the utility is able to buy diesel Fuel No. 2 at a wholesale price of $3.50 per gallon, their
customers must pay up to $5.24 per gallon for space heating residences and providing process
heating for the fish canneries. With NEA’s annual fuel cost of approximately $5.5 million, their
customers pay about $0.5503/kWh for electricity which is above AEA’s extremely high energy
cost threshold.
High cost energy increases the cost of living and restricts economic development. Until NEA’s
service area is connected to the grid, or until larger alternative energy projects that serve rural
and remote populations are funded and implemented a reasonable strategy for the cooperative is
become as efficient as possible. NEA’s proposed energy efficiency project will increase kWh per
gallon of diesel, increase the life of the existing diesel plant with fewer hours of operation because
of increased efficiency, and increase capacity to meet new processing demand and industrial
growth that will enhance economy of scale for rate stabilization.
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4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
Due to the smaller size of distributed generation (DG) equipment like the gensets located at
NEA, traditional steam-based heat recovery systems such as those used for conventional
industrial and utility scale applications are impractical due to their poor performance, high
maintenance requirements, water consumption and high cost and are therefore not frequently
used. In order to address the shortcomings of traditional waste heat recovery to electrical
energy systems and to maximize the efficiency of on-site DG/microgrids, Echogen Power
Systems proposes to install a highly efficient heat-driven power generation engine that utilizes
supercritical carbon dioxide (sCO2) as a safe, non-toxic, non-flammable working fluid. Echogen
has been developing alternative technologies that use supercritical CO2 in closed-loop
thermodynamic cycles that scale well into the size class of power-producing equipment
commonly used in distributed generation applications both from a performance and an economic
perspective.
The Echogen applications engineering group prepared a waste heat-to-power analysis with
process data provided by NEA regarding exhaust gas properties for each of their reciprocating
engine/generators. Based on the completed applications analysis, Echogen defined a waste
heat to power (WH2P) system configuration using all of the designated gensets, organized to
maximize the available electrical power recycled from the reciprocating engine exhaust gases.
The configuration shows two banks of gensets connected to a central waste heat exchanger
(WHX). The three gensets with the highest capacity factors (e.g., Units 2, 3 and 6) are
designated as the recycled heat to electricity “baseload” while the remaining units would act as
“peakers” for recycled heat to electricity. Two Echogen EPS heat engines are connected to the
common WHX and would be used individually or together to recycle waste heat into emission-
free electricity depending upon the amount of waste heat produced by the reciprocating
engine/generators currently on-line and generating primary electrical power. Residual waste
heat not converted to electricity or recuperated would be removed by the common air -cooled
condenser allowing the heat engines to operate completely water-free with respect to needing
external cooling water sources.
Echogen’s breakthrough heat engine technology uses a modified Rankine Cycle with
supercritical CO2 (sCO2) as the working fluid in a closed loop for a heat-driven power cycle. The
Echogen heat engine consists of five main components: waste and recuperator heat
exchangers, condenser, system pump, and power turbine. Ancillary components (valves and
sensors) provide system monitoring and control.
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Stack Heat to Power Scope of Supply
Item / Component
Description and Function
Two (2) Echogen EPS,
Nominal 400 kWe
Thermafficient® Heat
Engine Assemblies
Skid-based heat engine system converts thermal energy input into 480 VAC,
3-phase, 60 Hz electrical power for onsite use or export through facility grid
connection.
One (1) waste heat
exchanger (WHX),
custom-sized for the site
Fin-tube type heat exchanger bundle designed for specific application;
provides means to absorb waste heat from flue gas stream and transfer heat
to heat engine's CO2 working fluid.
Includes heat transfer coils, heat exchanger housing, inlet and outlet ducting,
pre-fabricated common, metal exhaust stack, and associated support
structures.
One (1) air-cooled
condenser system and
piping
Forced air, fan-cooled condenser required for condensing expanded CO2 back
to liquid prior to pumping within the heat engine skid.
Includes multi-celled cooling fans, associated CO2 piping, electrical power and
controls interface.
Electrical power
interface
The heat engine will generate 480 VAC, 3-phase, 60 Hz power for onsite
consumption or export to the grid.
Includes electrical conduits & conductors between heat engine skid and
existing motor control center and electrical switchgear at host facility 480 VAC,
3-phase, 60 Hz power bus.
EPC Balance of Plant
Design and Installation
for site-specific
integration
Engineering, procurement, and construction (EPC) firm will be employed to
prepare site-specific integration design and manage installation of total waste
heat recovery system at the customer facility.
Includes supporting foundation and structural modifications, WH2P metering at
the grid interface and remaining balance of plant equipment and total
installation.
Heat energy is introduced through the waste heat exchanger installed into the exhaust stack from
the reciprocating engine/generators. Echogen’s technology can provide integrated power,
heating and/or cooling through a flexible system architecture that can be configured for power,
co-generation or tri-generation. The usable energy can be generated from the engine exhaust
heat without burning fuel or producing resultant emissions which will provide the added benefit of
reducing greenhouse emissions while improving overall energy efficiency.
The overall duration for the proposed project is fifteen (15) months with an assumed project start
date of 01 October 2014. Scope of supply is summarized in the table above.
Echogen’s sCO2 power systems have been demonstrated across a range of system sizes and
configurations since the technology was initially developed in 2007. Demonstration projects have
ranged from smaller projects of 15kW and 200kW installed in 2008 and 2009, respectively, up to
the largest system rated at 8MWe, fabricated in 2012 and now in long -term endurance testing at
a Dresser Rand facility in New York. The technology and systems developed by Echogen have
demonstrated the ability to generate power at various installation sizes, system configurations
and ambient conditions. Conference papers and demonstration project updates are included in
the Appendix.
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NEA Design Point Power Generation Model for one EPS Engine
(based on half of total flow from nine reciprocating diesel engines)
Echogen Cycle Description
Expanded sCO2 cooled at recuperator, condensed to liquid at condenser
Liquid CO2 pumped to supercritical pressure
Internal system heat recycled at recuperator
Genset engine waste heat added at waste heat exchanger
High energy sCO2 expanded at power turbine drives generator
Generator produces electrical power to customer specifications
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Existing and Proposed Stack Heat System Configuration
Echogen Cycle Description
Expanded sCO2 cooled at recuperator and condensed to liquid at condenser
336kW Waste Heat to Power
336kW Waste Heat to Power
Waste Heat to Power Summary
Nameplate Capacity: 800kW
Predicted Peak Gen: 672kW
Predicted Annual: 2,321 MWh
EPS Waste Heat Engine No. 1
EPS Waste Heat Engine No. 2
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4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the project
or how you intend to approach land ownership and access issues.
The stack heat to power project is located in Naknek, AK and with a very small footprint will be
installed adjacent to the existing diesel plant “inside the fence” on NEA property. There will be no
land ownership or access issues as the project will belong to the cooperative, and will be applied
directly to existing electric generation and distribution facility NEA will have complete site control.
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
There will be no permits required and no anticipated barriers to development or site control
issues.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
There will be no environmental or land use issues. The proposed WH2P project will increase
plant efficiency and generation capacity without increasing fuel consumption or environmental
liability. None of the environmental issues listed above exist for the NEA’s WH2P project.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants records or analysis, industry standards,
consultant or manufacturer’s estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
Total anticipated project cost, and cost for this phase
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Requested grant funding
Applicant matching funds – loans, capital contributions, in-kind
Identification of other funding sources
Projected capital cost of proposed renewable energy system
Projected development cost of proposed renewable energy system
NEA’s Waste Heat to Power project budget was prepared by Echogen. NEA’s contribution
in-kind is included in the budget.
Project Definition and Design – $400,088 consisting of $300,088 for mechanical, civil, structural
and electrical engineering design services for site definition and preparation of design
requirements, site development including design modifications for existing exhaust ducting to
accept the waste heat exchanger, final sizing of the waste heat exchanger and air -cooled
condenser, grid connection interface, and performance modeling of the heat engine by Echogen
systems engineering to define system operating points for the changes in high, low and mixed
capacity factors from the genset heat sources combined with the normal variations of weather
and climate data for the Naknek, AK installation; supporting program management and reporting
by Echogen, and $100,000 initial cash outlay for long lead items. Key deliverables will be the
various engineering design studies, as part of the preliminary installation plan document for
review at the final design review meeting scheduled for early 1Q 2015, associated preliminary
construction drawings, and placement of long lead purchase orders for the EPS heat engine,
waste heat exchanger, and balance of plants such as the air-cooled condenser and grid
switchgear.
Fabrication and Procurement – Occurs during 1Q 2015; budgeted at $1,246,689 with $106,689
for finalizing and releasing the construction and site modification drawings and instructions as a
final installation plan after the final design review meeting in early 1Q 2015, and supporting
project and supply chain management and reporting. $1,040,000 is allocated to complete
fabrication and shipment of two EPS heat engines, waste heat exchanger, and balance of plant
items.
Installation, Commissioning & Operations – Completed during 4Q 2015 and is budgeted at
$293,602 for site preparation, construction, checkout/testing of equipment; associated
engineering support, customer training, program management and reporting, program closeout
including final report preparation.
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
(Note: Operational costs are not eligible for grant funds however grantees are required to meet
ongoing reporting requirements for the purpose of reporting impacts of projects on the
communities they serve.)
4.4.3 Power Purchase/Sale
The power purchase/sale information should include the following:
Identification of potential power buyer(s)/customer(s)
Potential power purchase/sales price - at a minimum indicate a price range
Proposed rate of return from grant-funded project
NEA does not have any power purchase agreements and distributes all electricity generated at its
facility in Naknek, Alaska to cooperative members.
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AEA 2014-006 Grant Application Page 23 of 31 7/1/2013
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 39.4%
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 Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other 10 stationary gensets (10.3 MW total) and one
(1) 1.5 MW mobile genset for a total plant
capacity of 11.8 MW
Range from 865 kW -1322 kW
iii. Generator/boilers/other type Recip. Diesel, Caterpillar Mods. 3516 and
3512
iv. Age of generators/boilers/nameplate
capacity and installation date by genset
#1 1.322 MW (1990), #2 1.0 MW (1992), #3
1.0 MW (installed 1993), #4 1.0 MW (installed
1995), #5 1.0 MW (installed 2004), #6 1.1 MW
(installed 2006), #7 1.1 MW, (installed 2006),
#8 .8 MW (installed 1977), #9 .865 MW
(installed 1988), #10 .865 MW (installed 1988),
#11 1.5 MW mobile generator (installed 2013)
v. Efficiency of generators/boilers/other 15.11 kWh/gallon diesel
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $0.05 /kWh (cost of labor + non-labor)
ii. Annual O&M cost for non-labor
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] 22,500,000 kWh
ii. Fuel usage
Diesel [gal] 1,500,000 gallons
Other
iii. Peak Load 9 MWe
iv. Average Load 4.8 MW
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.
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v. Minimum Load 1.29 MW
vi. Efficiency 15.11 kWh/gallon diesel
vii. Future trends Fuel prices rising (approximately 7% from 2012-2013)
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] NEA facility heating demand is nominal and met
with hot water from the existing recaptured heat loop
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]
680 kWe generated from reciprocating engine waste
heat
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 2,335,066 kWh
ii. Heat [MMBtu]
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu] 0
ii. Coal [tons or MMBtu] 0
iii. Wood or pellets [cords, green tons,
dry tons]
0
iv. Other 0
Project Cost
a) Total capital cost of new system $1,940,379
b) Development cost 0
c) Annual O&M cost of new system $11,600
d) Annual fuel cost 0
Project Benefits
a) Amount of fuel displaced for
i. Electricity 153,054 gallons/year (approximately 10% of total usage)
ii. Heat
iii. Transportation
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b) Current price of displaced fuel $3.50 /gallon diesel ($536,000/year)
c) Other economic benefits Potential to decrease electricity costs for local
businesses, which would improve the profitability of
local industry and boost the local economy
d) Alaska public benefits Improved efficiency, reduced emissions per kWh of
electricity generated in Naknek, publicity and
recognition for deploying an advanced efficiency
technology
Power Purchase/Sales Price
a) Price for power purchase/sale Price of electricity to NEA consumers $0.5403 /kWh in
2012, $0.5503 /kWh in 2013, with possibility of
escalation due to rising diesel fuel prices (up $.25/gal
in 2013, or ~7%)
Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 20-yr IRR on $1.94M investment = 64%
(with conservative assumption of no power price inflation)
Payback (years) 1.6 years
4.4.5 Impact on Rates
Briefly explain what if any effect your project will have on electrical rates in the proposed benefit
area. If this is for a PCE eligible utility please discuss what the expected impact would be for
both pre and post PCE.
NEA’s WH2P will improve generation efficiency allowing the utility to get more kWh per gallon of
diesel. NEA is familiar with PCE reporting and understands that the value of the equipment and
services, or any other benefits received under this grant will not be reported as expenses or as
expenses on which rates are based.
SECTION 5– PROJECT BENEFIT
Explain the economic and public benefits of your project. Include direct cost savings,
and how the people of Alaska will benefit from the project.
The benefits information should include the following:
Potential annual fuel displacement (gallons and dollars) over the lifetime of the evaluated
renewable energy project
Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
Potential additional annual incentives (i.e. tax credits)
Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
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Discuss the non-economic public benefits to Alaskans over the lifetime of the project
5.1.1 Public Benefit for Projects with Private Sector Sales
Projects that include sales of power to private sector businesses (sawmills, cruise ships, mines,
etc.), please provide a brief description of the direct and indirect public benefits derived from the
project as well as the private sector benefits and complete the table below. See section 1.6 in
the Request for Applications for more information.
Renewable energy resource availability (kWh per month) Average of 191,318 kWh/month
Estimated sales (kWh) 2,295,821 kWh/yr
Revenue for displacing diesel generation for use at
private sector businesses ($)
~67% of kWh sales are to private
sector businesses including all
classes of service except wholesale
rate to USAF and residential
Estimated sales (kWh) $1,538,200 ( multiply % by total
annual sales)
Revenue for displacing diesel generation for use by the
Alaskan public ($)
$1,240,432
SECTION 6– SUSTAINABILITY
Discuss your plan for operating the completed project so that it will be sustainable.
Include at a minimum:
Proposed business structure(s) and concepts that may be considered.
How you propose to finance the maintenance and operations for the life of the project
Identification of operational issues that could arise.
A description of operational costs including on-going support for any back-up or existing
systems that may be require to continue operation
Commitment to reporting the savings and benefits
NEA is incorporated as a not-for-profit 501 (C) (12) cooperative and employs the cooperative
business model to provide its members with reliable electric energy at the lowest possible cost
consistent with sound business practices. This business model returns excess margins to its
members on a patronage bases. Net margins above expenses belong to consumer members
and may be allocated for distribution or retained as working capital to expand, improve or
maintain operations. Short-term gains are not the focus in a cooperative business model but
rather the creation of long-term value and sustainability for consumer members. NEA is an
efficiently run electric utility and has a proven record with RUS. Since 1960 most capital
improvements were financed with member money. NEA will apply the cooperative business
model and all audit, regulatory and reporting for grants, financing and contractual agreements will
be accomplished according to the participating agency guidelines and NEA management
standards. In the long-term, building efficient electric generation and distribution infrastructure
will bring security and sustainability to the region.
SECTION 7 – READINESS & COMPLIANCE WITH OTHER GRANTS
Discuss what you have done to prepare for this award and how quickly you intend to proceed
with work once your grant is approved.
Tell us what you may have already accomplished on the project to date and identify other grants
that may have been previously awarded for this project and the degree you have been able to
meet the requirements of previous grants.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 27 of 31 7/1/2013
NEA has worked with Echogen establishing the preliminary feasibility of its Waste Heat to Power
(WH2P) project as represented in this proposal to AEA REFG Round VII. NEA has submitted
this proposal to USDA-RUS HECG program as well. An authorization to proceed (ATP) date of
as early as 01 July 2014 or as anticipated 01 October 2014 would mark the beginning of the final
design and installation plan phase and allow the fabrication and procurement phase to be
completed within the fifteen (15) month project period. With the work already completed to date
NEA and Echogen are ready to begin the final design and installation plan activities specified in
the proposal.
SECTION 8 – LOCAL SUPPORT AND OPPOSITION
Discuss local support and opposition, known or anticipated, for the project. Include letters of
support or other documentation of local support from the community that would benefit from this
project. The Documentation of support must be dated within one year of the RFA date of July 2,
2013.
Letters of support (LOS) for NEA’s WH2P project, included in this application under SECTION 11
– ADDITIONAL DOCUMENTATION AND CERTIFICATION, represent NEA consumers. The letters
address either or both REFG and HECG project proposals but in either case the proposals are
identical in scope and budget.
WH2P Project Costs and Allocation
Final Design and Installation Plan – will be carried out during 4Q 2014 at $400,088 consisting
of $300,088 for mechanical, civil, structural and electrical engineering design services for site
definition and preparation of design requirements, site development including design
modifications for existing exhaust ducting to accept the waste heat exchanger, final sizing of the
waste heat exchanger and air-cooled condenser, grid connection interface, and performance
modeling of the heat engine by Echogen systems engineering to define system operating points
for the changes in high, low and mixed capacity factors from the genset heat sources combined
with the normal variations of weather and climate data for the Naknek, AK installation;
supporting program management and reporting by Echogen, and $100,000 initial cash outlay for
long lead items. Key deliverables will be the various engineering design studies as part of the
preliminary installation plan document for review at the final design review meeting scheduled
for early 1Q 2015 associated preliminary construction drawings, and placement of long lead
purchase orders for the EPS heat engine, waste heat exchanger, and balance of plants such as
the air-cooled condenser and grid switchgear.
Fabrication – occurs during 4Q 2014 - 2Q 2015; budgeted at $1,246,689 with $106,689 for
finalizing and releasing the construction and site modification drawings and instructions as a
final installation plan after the final design review meeting in early 1Q 2015, and supporting
project and supply chain management and reporting. $1,040,000 is allocated to complete
fabrication and shipment of two EPS heat engines, waste heat exchanger, and balance of plant
items.
SECTION 9 – GRANT BUDGET
Tell us how much you are seeking in grant funds. Include any investments to date and funding
sources, how much is being requested in grant funds, and additional investments you will make
as an applicant.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 28 of 31 7/1/2013
Installation, Commissioning & Operations – will be completed during 2Q 2015-4Q 2015 and
is budgeted at $293,602 for site preparation, construction, checkout/testing of equipment;
associated engineering support, customer training, program management and reporting,
program closeout including final report preparation.
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. )
$ $ $
Final Design and Installation Plan $ 400,088 $ $ 400,088
Site definition and requirements 100114 $ $
Preliminary installation plan 013015 $ $
Systems performance modeling 123114 $ $ $
Site modification design 123114 $ $ $
Exhaust interface design 123114 $ $ $
Cooling tower design 123114 $ $ $
Final installation plan 022815 $ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ 400,088 $ $ 400,088
Budget Categories:
Direct Labor & Benefits $ 110,000 $ $
Travel & Per Diem $ 15,000 $ $
Equipment $ 100,000 $ $
Materials & Supplies $ 2,000 $ $
Contractual Services $ 150,000 $ $
Construction Services $ 0 $ $
Other $ 23,088 $ $
TOTALS $ 400,088 $ $ 400,088
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. )
$ $ $
Fabrication $1,246,689 $ $1,246,689
Heat engine fabrication 100114 $ $ $
Exhaust interface fabrication 100114 $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 29 of 31 7/1/2013
$ $ $
$ $ $
TOTALS $1,246,689 $ $1,246,689
Budget Categories:
Direct Labor & Benefits $ 32,000 $ $
Travel & Per Diem $ 7,500 $ $
Equipment $1,040,000 $ $
Materials & Supplies $ 2,000 $ $
Contractual Services $ 15,000 $ $
Construction Services $ 0 $ $
Other $ 50,189 $ 100,000 $
TOTALS $1,146,689 $ 100,000 $1,246,689
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. )
$ $ $
Installation, Commissioning, &
Reporting $ 293,602 $ $ 293,602
Construction and installation 063015 $ $ $
Systems commissioning / checkout 073115 $ $ $
Qualification tests and training 103015 $ $ $
Begin operation 110115 $ $ $
Final reporting and grant closeout 123115 $ $ $
$ $ $
$ $ $
$ $ $
$ $ $
$ $ $
TOTALS $ 293,602 $ $ 293,602
Budget Categories:
Direct Labor & Benefits $ 58,000 $ $
Travel & Per Diem $ 15,000 $ $
Equipment $ 80,000 $ $
Materials & Supplies $ 5,000 $ $
Contractual Services $ 30,000 $ $
Construction Services $ 90,000 $ $
Other $ 15,602 $ $
TOTALS $ 293,602 $ $ 293,602
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 30 of 31 7/1/2013
SECTION 10 – AUTHORIZED SIGNERS FORM
Community/Grantee Name: Naknek Electric Association, Inc.
Regular Election is held: Annually
Date: April 27, 2013 (most recent
Annual Membership Meeting and Election)
Authorized Grant Signer(s):
Printed Name Title Term Signature
Donna Vukich NEA - General Manager Annual Contract
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Term Signature
Grantee Contact Information:
Mailing Address: Naknek Electric Association, Inc.
Donna Vukich
PO Box 118
Naknek, Alaska 99633
Phone Number: 907 246 4261
Fax Number: 907 246 6242
E-mail Address: dvukich@nea.coop
Federal Tax ID #: 02-0027674
Please submit an updated form whenever there is a change to the above information.
Renewable Energy Fund Round VII
Grant Application - Standard Form
AEA 2014-006 Grant Application Page 31 of 31 7/1/2013
SECTION 11 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION:
A. Contact information, resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers per application form Section 3.1 and 3.4. Applicants
are asked to provide resumes submitted with applications in separate electronic
documents if the individuals do not want their resumes posted to the project web
site.
B. Letters or resolutions demonstrating local support per application form Section 8.
C. For heat projects only: Most recent invoice demonstrating the cost of heating fuel
for the building(s) impacted by the project.
D. Governing Body Resolution or other formal action taken by the applicant’s
governing body or management per RFA Section 1.4 that:
- Commits the organization to provide the matching resources for project at the
match amounts indicated in the application.
- Authorizes the individual who signs the application has the authority to
commit the organization to the obligations under the grant.
- Provides as point of contact to represent the applicant for purposes of this
application.
- Certifies the applicant is in compliance with applicable federal, state, and local,
laws including existing credit and federal tax obligations.
E. An electronic version of the entire application on CD or other electronic media, per
RFA Section 1.7.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations and
that they can indeed commit the entity to these obligations.
Print Name Donna Vukich
Signature
Title General Manager - Naknek Electric Association, Inc.
Date August 22, 2013