HomeMy WebLinkAboutSavoonga AEA Grant ApplicationCity of Savoonga
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Image from Alaska Division of Community & Regional Affairs, AK Community Database Information Summaries
Application for Renewable Energy Fund Grant
Alaska Energy Authority
Round v
August 2011
Contents
. Application
. Authorized Signers & Resolution
. Budget
. Letters of Support
. Resumes
. Supplemental Documents
-Feasibility Study
/am_ ---)Renewable Energy Fund Round 5
4111E-ALASKA
)ENERGYAUTHORITY Grant Application
SECTION 1 — APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
City of Savoonga
Type of Entity: A Local Government Fiscal Year End Dec 31
Tax ID # 92-0047577 Tax Status: For -profit or _non-profit ( check one)
Mailing Address
Physical Address
P O Box 40
City Building
Savoonga, AK 99769
Savoonga, Alaska 99769
Telephone
Fax
Email
907-984-6614
907-984-6301
1.1 APPLICANT POINT OF CONTACT / GRANTS MANAGER
Name
Title
Carl Remley
Energy Projects Manager
Mailing Address
ANTHC — DEHE
1901 Bragaw Street, Suite 200
Anchorage, AK 99508
Telephone
Fax
Email
907-729-3543
907-729-4047
cremley@anthc.org
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)
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 its project by
its 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.
Yes
1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached
grant form. (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.
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SECTION 2 — PROJECT SUMMARY
This is intended to be no more than a 1-2 page overview of your project.
2.1 Project Title — (Provide a 4 to 5 word title for your project)
Savoonga Heat Recovery — Power Plant to Water Plant
2.2 Project Location —
Include the physical location of your project and names) of the community or communities that will
benefit from your project.
The physical locations of this project are the Alaska Village Electric Cooperative, Inc.
(AVEC) electric power plant and the City of Savoonga water treatment plant in Savoonga,
Alaska.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.3.1 Renewable Resource Type
X
Wind
Biomass or Biofuels
Hydro, including run of river
X
Transmission of Renewable Energy
Geothermal, including Heat Pumps
Small Natural Gas
X
Heat Recovery from existing sources
Hydrokinetic
Solar
X
Storage of Renewable
Other (Describe)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance
Design and Permitting
Feasibility
X
Construction and Commissioning
Conceptual Design
2.4 PROJECT DESCRIPTION.
Currently, AVEC is not utilizing either the jacket heat from its diesel engines or the heat
generated by the electric boiler installed to dispose excess wind energy. This project would
recover heat from both sources at the AVEC plant and send that heat to the water treatment
plant to heat the building, the circulated water loops, and the water storage tank. The AVEC
power plant and the Savoonga water treatment plant are located next to each other in
Savoonga.
A feasibility study has been done for this project and the design will be completed in the near
future with other funds. Funds are being requested for construction only.
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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, etc.)
Water and wastewater systems in the arctic and subarctic villages are the single largest
energy consumer, often using up to 30% of all energy, i.e., electricity and fuel oil, used in a
village. A significant portion of this in Savoonga is for heating water in both the water
storage tank and the circulation loops that deliver the water to the end users, such as
commercial establishments and homes. Utilizing the excess wind energy and the recovered
jacket heat from the engines in the power plant would displace all fuel oil use in the water
plant.
The water treatment plant is operated by the Alaska Rural Utility Collaborative (ARUC).
According to their records, the water treatment plant used 7,641 gallons of fuel in 2010. As
stated in the feasibility study, all of this fuel could be replaced by the power plant recovered
heat. At the current cost of $5.35 per gallon, that would equal savings of $40,879 per year,
and fuel costs are anticipated to increase.
AVEC has agreed to provide the recovered heat for a cost of one third of its cost for fuel.
This results in a cost to the water treatment plant of approximately $1.14 per equivalent
gallon, or $8,711. The net savings to the water plant would equal a minimum of $32,168
($40,879 - $8,711).
The benefits to the community of this project are a reduction in the amount of fuel required
by the community, a much more efficient use of both the excess renewable wind energy and
the recovered engine heat, and a direct benefit to each community member due to the lower
cost to produce, store, and distribute water.
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.
As mentioned earlier, the feasibility phase of this project is complete and the design phase is
underway now with another funding source. The estimated cost of the construction phase of
this project is $317,305. The construction cost includes a cost match of $15,865 provided by
the Alaska Native Tribal Health Consortium (ANTHC), and the remaining funds are
requested of AEA. The nature of the construction cost match would be a contribution of
project management time by ANTHC.
2.7 COST AND BENEFIT SUMARY
Include a summary of grant request and your project's total costs and benefits below.
Grant Costs
(Summary of funds requested)
2.7.1 Grant Funds Requested in this application.
$ 301,440
2.7.2 Other Funds to be provided (Project match)
$ 15,865
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$ 317,305
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Project Costs & Benefits
(Summary of total project costs including work to date and future cost estimates to get to a fully
operational project)
2.7.4 Total Project Cost (Summary from Cost Worksheet
$ 317,305
including estimates through construction)
2.7.5 Estimated Direct Financial Benefit (Savings)
$ 32,168
2.7.6 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 your application
(Section 5.)
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). 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.
The project manager for this project would be Carl Remley. Mr. Remley is Energy Projects
Manager for ANTHC and has been an ANTHC employee since 2002. Mr. Remley is
responsible for both energy conservation and renewable energy projects. At present, this
includes performing energy audits in public buildings in 40 rural Alaska villages, installing
energy conservation displays in all homes in 12 villages, evaluating heat recovery
opportunities in 10 villages, implementing heat recovery in several villages, and acting as the
energy coordinator for the Indian Health Service in the state of Alaska.
Prior to that, Mr. Remley owned and operated an energy conservation consulting company
for twenty two years and was a design engineer in the aerospace industry for ten years. Mr.
Remley has a Bachelor's Degree in Mechanical Engineering and a Master's Degree in
Business Administration. He is also both a Certified Energy Auditor and a Certified Energy
Manager.
Mr. Remley can be contacted at 907-729-3543 or cremleyganthc.org. Mr. Remley's resume
is attached, along with skill summaries for key project personnel.
3.2 Project Schedule
Include a schedule for the proposed work that will be funded by this grant. (You may include a
chart or table attachment with a summary of dates below.)
Project construction will start as soon as funding is available, which is projected to be early
September 2012. Based on times for very similar projects recently completed, it is
anticipated that the construction will be complete, including commissioning, by the end of
September 2013. A detailed schedule is attached to this application.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them. The
Milestones must also be included on your budget worksheet to demonstrate how you propose to
manage the project cash flow. (See Section 2 of the RFA or the Budget Form.)
A detailed feasibility study has been completed and is attached to this application. The
analysis has clearly shown that the project is both feasible and cost effective. Design for this
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project is underway now and will be complete within the next few months. Funding for the
design is being provided by others. These two major milestones either are complete or will be
soon.
Two energy sources will be available for recovery: the water jacket heat from the engines
and excess wind energy. Both of these sources are available as heat now in the AVEC power
plant. Having the renewable energy available to use is another major milestone available
now.
Once funding is available, there will be four major milestones: procurement of materials,
shipping of materials, installation, and commissioning. Procurement will start as soon as
funding is available. It is anticipated that will be in September 2012. On -site mobilization
will start in spring 2013. Construction will start in June 2013 and be completed in August.
Final commissioning, startup, and acceptance will be completed in August 2013. Project
reporting will take place throughout the project.
ANTHC has implemented heat recovery in several locations and is the process of
implementing it in several more now. Based on its knowledge of the water treatment plant
and power plant, no problems are anticipated. The two properties are adjacent to each other,
so there are no right-of-way issues.
3.4 Project Resources
Describe the personnel, contractors, 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.
As discussed above, the project manager will be Carl Remley of ANTHC. He will be
supported during the design phase by Will Fraser, ANTHC Lead Mechanical Engineer, and
Dave Reed, ANTHC Lead Electrical Engineer. As with all heat recovery projects at AVEC
facilities, the design and construction efforts will be closely coordinated with Mark Teitzel,
Vice President/Engineering Manager of AVEC, and Mark Bryan, Operations Manager of
AVEC. To the extent possible, local labor from Savoonga will be used during construction.
This will be relatively easy to implement since Savoonga is an ARUC village. Resumes of all
key personnel are attached to this application.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Written project progress reports will be provided to the AEA project manager each quarter.
Semi-annual face-to-face meetings will be conducted with ANTHC, AVEC, and AEA to
discuss the status of all projects funded through the AEA Renewable Energy Grants program.
Individual project meetings will be held as required or requested by AEA. The City of
Savoonga will participate via teleconference.
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3.6 Project Risk
Discuss potential problems and how you would address them.
In general, there are no technological or financial risks involved with the plan to utilize
recovered heat from the AVEC power plant to provide heat for the Savoonga water treatment
plant, water storage tank, and circulation loop. Both the excess wind energy and the engine
water jacket heat are available now in the power plant. Installing the necessary heat
exchangers, piping, pumps, and controls necessary for implementation has been done many
times before and proven effective for many years.
Both the ARUC employees that operate the water treatment plant and the AVEC employees
that operate the power plant are fully capable of operating and maintaining this heat recovery
system.
SECTION 4 — PROJECT DESCRIPTION AND TASKS
• Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA.
• The level of information will vary according to phase(s) of the project you propose to
undertake with grant funds.
• If you are applying for grant funding for more than one phase of a project provide a
plan and grant budget form for completion of each phase.
• 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.
Two energy sources are available in the AVEC power plant for recovery and transfer to the
nearby water treatment plant: heat from excess wind energy and heat from the water jackets of
the power plant engines. The heat available from the power plant significantly exceeds that
required by the water treatment plant, as indicated by the attached feasibility analysis.
The only realistic alternative to utilizing the recovered heat is to continue to burn over 7,600
gallons of fuel oil to provide the heat required by the water treatment plant. The cost of fuel is
almost five times the cost of the recovered heat.
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 electricity generated by the AVEC power plant is produced by three diesel generators and
several wind turbines. The engines are a Detroit Diesel S60K4, a Cummins QSX15G9 and a
Cummins QSK23G1. The wind turbines are Northern Power Systems model 100B.
The kilowatt (KW) ratings of the diesel generators are 363, 499, and 824 respectively. All of
the wind turbines are 100 KW. All equipment is in fair condition.
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At present, the excess energy generated by the wind turbines is converted to heat with an
electric boiler and then exhausted to the air along with the jacket heat. A small amount of this
heat is used to heat AVEC facilities at the power plant.
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.
Oil must be barged to Savoonga during the summer months when that area of the Bering Sea
is ice free. Oil is the source of the overwhelming majority of all energy consumed in
Savoonga. Wind on St. Lawrence Island is also available all year on most days of the year.
This makes Savoonga an ideal location for this project, which uses the excess wind in
addition to the jacket heat from the diesel engines.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
As mentioned above, all oil must be barged in during the summer months. The impact of this
project will be to reduce the overall use of oil in the City of Savoonga by approximately 7,641
gallons per year. This reduction will not change the price of oil in Savoonga. It will, however,
reduce the community's consumption of oil as described, replacing that consumption with a
combination of jacket heat from the diesel engines and excess wind energy from the AVEC
power plant.
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
Two renewable energy technologies will be used for this project. They are jacket heat
recovery from the diesel engines in the AVEC power plant and excess wind energy from
existing wind turbines. The cooling system in the AVEC Savoonga power plant is presently
used to dump both of these sources of heat to the atmosphere. With the proposed system, this
heat will be recovered and sent to the Savoonga water treatment plant for space heating, water
storage tank heating, and circulation loop heating.
As can be seen in the attached feasibility study, the recovered heat available from the power
plant is in excess of that used by the water treatment plant. Therefore, the optimum installed
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capacity is already available.
The anticipated capacity factor is over 100%. No electrical energy generation will take place
as part of this project. This project will utilize both waste heat from the generators and excess
wind energy from the existing wind turbines to reduce the amount of oil imported to the
village.
The only barrier to this project is the availability of funding. There are no technical barriers
and no permitting barriers. The two properties are adjacent to each other. The design for this
project is being funded through another source.
The integration concept is a classic heat recovery project. The cooling loop exists in the
AVEC plant and the recovered heat will be delivered to the water treatment plant through a
series of heat exchangers and new piping between the buildings.
4.3.2 Land Ownership
Identify potential land ownership issues, including whether site owners have agreed to the
project or how you intend to approach land ownership and access issues.
There are no land ownership issues. The owners of both parcels of land have submitted letters
of support for this project and they are attached to this application.
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
No permits have been required for recent heat recovery projects; however, the State Fire
Marshall will be given an opportunity to review the design before implementation.
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
ANTHC and AVEC will consider all potential environmental concerns associated with this
project. ANTHC has extensive experience using the comprehensive Indian Health Service
(IHS) environmental review procedures for conducting environmental analysis of all health
and sanitation facilities projects in all stages of development, as outlined in the IHS
Environmental Review Manual issued in January 2007.
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ANTHC will study, analyze, and evaluate environmental impacts and benefits. Environmental
agency and Tribal consultations and the analysis of potential environmental impacts and
benefits will be compiled and documented in the environmental reviews and permit
applications as the project progresses into design and towards construction. All federal and
state approvals and applicable permits must be obtained prior to the initiation of construction
activities.
4.4 Proposed New System Costs and Projected Revenues
(Total Estimated Costs and Projected Revenues)
The level of cost information provided will vary according to the phase of funding requested and
any previous work the applicant may have done on the project. Applicants must reference the
source of their cost data. For example: Applicants Records or Analysis, Industry Standards,
Consultant or Manufacturer's estimates.
4.4.1 Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
• Total anticipated project cost, and cost for this phase
• Requested grant funding
• Applicant matching funds — loans, capital contributions, in -kind
• Identification of other funding sources
• Projected capital cost of proposed renewable energy system
• Projected development cost of proposed renewable energy system
The total anticipated project cost is $317,305. A detailed construction cost estimate is
attached. The feasibility study is complete and a copy is attached. The design is in process
now and is being completed with other funds.
The requested grant funding is $301,440. The remaining $15,865 is being donated by
ANTHC in the form of project management time.
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.)
As with all heat recovery systems, the operating cost will be minimal. The controls are
automated both at the power plant and at the water treatment plant. The most expensive
components in the heat recovery system are the heat exchangers, and they normally have a
20-year life. Minor maintenance costs will occur periodically, but they will be limited to
valves, pumps, and possibly some replacement glycol. Approximately $500 per year should
be set aside for maintenance.
ANTHC and AVEC will work together to make sure all AEA reporting requirements are met.
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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
A standard Heat Sales Agreement has been executed with AVEC, the supplier of the
recovered heat. The agreement states that the end user (water treatment plant) will pay the
equivalent of one third of the cost AVEC pays for fuel. This amount is much lower than the
retail price of fuel in the village. A standard BTU meter will be used to measure the amount of
recovered heat used at the water treatment plant.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
The project cost worksheet has been completed and is attached to this application.
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 (gal and $) over the lifetime of the evaluated
renewable energy project
• Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price,
RCA tariff, or cost based rate)
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (i.e. green tag sales or other renewable
energy subsidies or programs that might be available)
• Discuss the non -economic public benefits to Alaskans over the lifetime of the project
The potential fuel displacement is the entire amount of fuel oil used at the water treatment
plant, which was 7,641 gallons last year. The cost of the fuel is $5.35 per gallon. The annual
cost of fuel for the water treatment plant is then $40,879. Over the twenty year life of the heat
recovery system, the savings will be $817,580 in today's dollars.
AVEC will receive the equivalent of approximately $1.14 per gallon, or $8,711 per year, in
revenue for the recovered heat. This translates into $174,220 in today's dollars over the
lifetime of the project.
The net savings to the water treatment plant will therefore equal $32,168 ($40,879 - $8,711)
per year. Over the twenty year life of the project, the net savings in today's dollars will be
$643,360.
There are no other known incentives or revenue streams that would result from this project.
The benefits to the community of this project are a reduction in the amount of fuel required by
the community, a much more efficient use of both the excess renewable wind energy and the
recovered engine heat, and a direct benefit to each community member due to the lower cost
to produce, store, and deliver water.
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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
This project increases the sustainability of AVEC by providing a revenue stream of $174,220
over the lifetime of the project for both the recovered water jacket heat from the engines and
the excess wind energy. The heat energy from both of these sources is presently being
exhausted to the atmosphere.
This project also increases the sustainability of the water treatment plant by reducing its
operating cost by $643,360 over the 20-year life of the project.
The minimal maintenance and operating cost of AVEC can be funded out of its revenue
stream. The minimal maintenance cost of the water treatment plant can be funded out of its
savings over the 20-year life of the project.
ARUC operates the water treatment plant. This organization provides the technical expertise
and financial management necessary to sustain a water treatment plant over the long run.
AVEC operates power plants in 54 villages throughout the state and has proven its
sustainability over the years.
As discussed, the operating costs for this project will be minimal since the system is largely
automated. ARUC and ANTHC will provide any technical expertise required at the water
treatment plant. The existing boilers will be maintained in the water treatment plant as a
backup to the heat recovery system. AVEC has a complete engineering and management staff
to provide any support needed in the power plant.
Both AVEC and ANTHC are committed to meeting all reporting requirements over the entire
length of the reporting period.
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.
A detailed heat recovery feasibility study has been completed and is attached to this
application. The design of the heat recovery system is proceeding with another funding source
in anticipation of this construction funding award and will be completed prior to the
availability of construction funding.
The intent is to proceed with construction on this project as soon as construction funding is
available. The procurement phase will be started in September 2012 and the construction
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completed during Summer 2013. To the extent possible, local labor will be used during
construction. A detailed schedule is attached.
SECTION 8— LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of support from the community that would benefit from this project.
The City of Savoonga, which owns the water treatment plant, is submitting this application.
AVEC and ARUC have both provided letters of support for this project and ANTHC has
provided a match for the project as well as a letter of support. There is no known opposition to
this project.
SECTION 9 — GRANT BUDGET
Tell us how much you want 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.
Include an estimate of budget costs by milestones using the form — GrantBudget5.doc
The feasibility study was funded with separate grant funds managed by ANTHC. The design
is being completed by ANTHC with separate grant funds. This application is for construction
funds. A total of $301,305 in grant AEA funds being is being requested and a match of
$15,865 is being provided by ANTHC.
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SECTION 14 — 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 separate resumes submitted with applications, if the individuals do
not want their resumes posted.
�. Cost Worksheet per application form Section 4,44,
C. Grant Budget Forth per application form Section 9.
D, Letters demonstrating local support per application form Section 8.
E. An electronic version of the entire application on CD per RFA Section 11.
F. Authorized Signers Fortis.
G. 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 thatching resources for project at the
match ammints indicated in the application,
Authorizes the individual who signs the application has theauthority 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.
H. CERTIFICATION
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PAGE 02
Great Documents Authorized Signers
Please clearly print or type all sections of this form,
Community/Grantee Name: C ', 4 �
Regular Election is hel T Date:
I C. 6e r f't� �3 � ace { 1
Authorized Grant $i net s
Printed Name Title Term Signature
E n aoe'E wook 6C
r Yt p nil "T06 i C(O u
I authorize the above person(s) to sign Grant Documents:
(Highest ranking organization/community/municipal official)
Printed Name Title Terra Signature
_�i
roll
Grantee Contact Information:
PAailin Address: _ _ l o,,� t { C1
Phone Number: �c9'7}
Fax Number: 0.7 ` 8' �,
E-mail Address: ct4 o`F Co,"
Fiscal Year End:
-Entity Type (For -profit or non-profit status);
Federal Tax ID #: - Q
Please submit an updated form whenever there is a change to the abQva Inforrna_tiort
Please return the original completed form to:
Alaska Energy Authority
813 W. Northern Lights Blvd.
Anchorage, AK 99503
Attn: Butch White, Grants Administrator
=�' 16j��AA,
c= A L L
ENERGY AUTHOMY
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06/23/2011 00:32 9079646301 PAGE 04
City Resolution for Alaska Energy Authority Funding
Renewable Energy
Cite of Savoonga
RESOLUTION # 0 11 ~ 0018
A Resolution requesting Funding from the Alaska Energy Authority, Alaska Renewable Energy Fund and
commitment by the City of Savoonga
WHEREAS: The City Council of Savoonga, hereinafter called the City, is a governing body in the City of
Savoonga, Alaska, and
WHEREAS., The Alaska energy Authority, hereinafter called AEA, may provide assistance necessary to
help address the energy needs of our community.
WHEREAS: The City desires, to seek and utilize renewable sources of =ergy in order to lower costs for
residents while making out community snore econofnically viable and sustainable into the future in order tc,
guarantee our way of life for current and future generations,
WHEREAS. Tho City authorizes the Alaska Nativc Tribal health Consortium to work with The City of
Savoonga to develop, implement and manage the project for which we are Seeking fimding from AEA,
NOW THEREFORE BE IT RESOLVED; that the City hereby requests a grant through the Renewable
Energy Fund to construction of a heat recovery system from the A VEC power plant to the water treatment
plant.
BE IT FURTHER RESOLVED; that the City grants authority to lbe individual signing this resolution to
commit The City of Savoonga to obligations under the grant,
BE IT FURTHER RESOLVED; The City of Savoonga is in coamplianco with applicable federal, state and
local laws including existing credit and federal tax obligation
BE IT FURTHER RESOLVED; that A;NTHC is hereby authorized through a Cooperative Project
Agreement to negotiate, execute, and administer any and all docuineAts, contracts, expenditures and
agreements aS required for the City of'Savoonga and managing funds on behalfofthis entity; including any
subsegiient amendments to said agreements.
BE IT FURTHER RESOLVED; that the City hereby authorizes ANTHC or its representatives to enter
upon or cross community land for the purposes of assisting the City in catrying out this project..
1, the uxzdGrsigned, hereby certify that the City is composed of 7 members
of whoconstituting a QUORUM were present and that the foregoing resolution
was PASSED AND APPROVED by the City this 23-4 day of A ,j5} , 2011.
Vote; Yeas Nays
Signed r,
President
ATTEST: City Member
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%" ALASM Renewable Energy Fund Round 5
ENERGY AUTHORITY Project Cost/Benefit Worksheet
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source — Savoonga Heat Recovery
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 7,100 Gallons Equivalent Diesel Oil of Surplus
AVEC Plant Heat
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a)
Basic configuration (if system is part of the Railbelt' grid, leave this section blank)
i. Number of generators/boilers/other AVEC Cummins QSX15 G9 genset
ii. Rated capacity of generators/boilers/other 2,368,313 Kwh Annually
iii. Generator/boilers/other type Fuel Oil Boilers in WTP
iv. Age of generators/boilers/other 5 plus years
v. Efficiency of generators/boilers/other 75%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $ 100
ii. Annual O&M cost for non -labor $ 200
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] 7,100 Gallons of Number 1 fuel oil equivalent of surplus heat.
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] 7,100 Gallons Number 1 Fuel Oil (Water Plant)
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
i 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.
RFA AEA12-001 Application Cost Worksheet Pagel 7-1-11
/oZE) ALASKA Renewable Energy Fund Round 5
61--iENERGY AUTHORITY project Cost/Benefit Worksheet
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity Surplus wind recovery
(Wind, Hydro, Biomass, other)
[kW or MMBtu/hr]
b) Proposed annual electricity or heat production (fill in as applicable)
i. Electricity [kWh]
ii. Heat [MMBtu] 7,100 gallons or .9372 MMBtu
c) Proposed annual fuel usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
a) Total capital cost of new system $ 317,305 (Design and Construction)
b) Development cost
c) Annual O&M cost of new system $ 300
d) Annual fuel cost
5. Project Benefits
a)
Amount of fuel displaced for
i. Electricity
ii. Heat 7,100 Gallons of Number 1 Fuel Oil Equivalent of surplus heat
iii. Transportation
b) Current price of displaced fuel
c) Other economic benefits
d) Alaska public benefits
6. Power Purchase/Sales Price
$ 5.19 / Gallon (ANTHC Survey, summer, 2011)
$11,054 of potential revenue for AVEC.
$ 36,849 of Fuel Usage reduction for the public Utility
a) Price for power purchase/sale $ .05 per KWH for interruptable power
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 2.25 (AEA Round V Economic Analysis)
Payback (years) 8.61 years based on fuel savings.
RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11
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wiles
WS
Alaska Native Tribal Health Consortium
Division of Environmental Health and Engineering
1901 Bragaw Street • Suite 200 • Anchorage, AK 99508-3440 • Phone: (907) 729-3600 • Fax: (907) 729-4090 • www.anthc.org
August 23, 2011
The Honorable Myron Kingeekuk
Mayor, City of Savoonga
PO Box 80
Savoonga, AK 99769
Dear Mr. Kingeekuk:
Re: Savoonga -Letter of Commitment for matching funds to a proposal for Alaska Energy
Authority, Renewable Energy Funds Round V.
It is with pleasure that the Alaska Native Tribal Health Consortium (ANTHC), Division of
Environmental Health and Engineering (DEHE) is partnering with AVEC in your proposed
project to the Renewable Energy Fund of the Alaska Energy Authority. Your project, Heat
Recovery for Savoonga for Water System, is one of exceptional importance to the future energy
needs of Savoonga and one that ANTHC DEHE fully supports.
In support of your project, ANTHC DEHE will commit $15,865 as an in -kind match in the form
of personnel labor. These matching funds will be tracked and reported to AVEC, as required for
purposes of quarterly reporting to the Alaska Energy Authority, in the event that they award you
the project.
We wish you every success on your proposal and look forward to working with you on this
important project.
Sincerely,
Steven M. Weaver, P.E.
Senior Director
AVEC'��
August 23, 2011
Myron Kingeekuk
City of Savoonga
P.O. Box 40
Savoonga, AK 99769
Regarding: Letter of Support for the Heat Recovery Project in Savoonga
Honorable Mayor Kingeekuk;
Alaska Village Electric Cooperative, Inc. (AVEC) understands the City of Savoonga and the
Alaska Native Tribal Health Consortium (ANTHC) are working to prepare a grant application to
help fund a heat recovery project. We understand this project will help to improve the quality of
life for our residents and commercial customers.
We support the investigation of this project and will work with the City of Savoonga to help
move this endeavor forward. AVEC will also work with ANTHC to ensure any future
construction project would be able to connect and operate in conjunction to the existing power
generation system in Savoonga.
AVEC supports this development and is pleased to provide this letter in support of this grant
application.
Sincerely,
1
% fir
Meera Kohler
President and CEO
4831 EAGLE STREET * ANCHORAGE. ALASKA * PHONE (907) 561-1818 FAX (907) 562-4086
Resumes
SAVOO N GA, ALAS KA
HEAT RECOVERY STUDY
PREPARED FOR:
ALASKA NATIVE TRIBAL HEALTH CONSORTIUM
Project ANTHC-09-P52187
PREPARED BY:
Alaska Energy and Engineering, Inc.
Mailing Address - P.O. Box 111405
Anchorage, AK 99511-1405
(907) 349-0100, 349-8001 FAX
December 6, 2010
ANTHC-Savoonga Heat Recovery Analysis December 6, 2010
Alaska Energy and Engineering
EXECUTIVE SUMMARY
The Water Plant in Savoonga was evaluated for heat recovery potential. Total estimated
annual heating fuel is approximately 9,000-gallons. Estimated fuel savings realized by
implementing a heat recovery system is 8,800-gallons. The estimated cost for the heat
recovery project is $299,163. The simple payback based on a fuel cost of $5.00/gallon
is 6.8 years.
Alaska Energy and Engineering, Inc. was retained by the Alaska Native Tribal Health
Consortium (ANTHC) to review the feasibility of providing available recovered heat from
the existing AVEC power plant to the existing water plant and adjacent community
buildings in Savoonga, and provide a budgetary project cost estimate based on Force
Account Construction, including Design Engineering and Construction Administration.
There is an existing heat recovery system in Savoonga that used to provide recovered
heat to the old Savoonga School. The heat recovery system has been abandoned and
out of service for several years. AVEC constructed a new power plant that went online
in July 2008. The new plant is equipped with a hydronic heating system designed to
provide up to 690 MBh. For purposes of this report, it has been assumed that the
existing hydronic system at the power plant will be modified including adding a heat
exchanger and installing new circulating pumps.
Additional assumptions have been made in the development of this report including but
not limited to the proposed arctic piping route, building heating loads, and flow rates and
pressure drops of the existing power plant cooling system and heat exchanger. It is
anticipated that refinements in arctic pipe size and routing, pump and heat exchanger
sizing, and other design elements will be required as the project progresses to final
design.
Available as -built information was obtained from the Alaska Village Electric Cooperative
(AVEC) regarding the existing generation equipment and power plant heat loads. End -
user annual fuel use was obtained from a variety of sources, including ANTHC and
engineering estimates. No site visits were made to confirm accuracy of
information obtained.
2.0 OVERVIEW
The purpose of this study is to provide an estimate of the heat that can be recovered
from the jacket water of the AVEC power plant diesel engines and used to offset heating
oil consumption at the nearby public buildings. Useable recovered heat is quantified in
gallons of heating fuel saved using a gross heating value of 134,000 BTU per gallon of
#1 arctic diesel fuel and an overall boiler efficiency of 75% for a net heating value of
100,000 BTU per gallon.
The Water Plant is located within a 200-foot radius of the AVEC power plant. This
analysis evaluates the potential to provide recovered heat to the Water Plant (WTP).
The estimated average annual heating fuel consumption for the Water Treatment Plant
is 9,000-gallons.
K1�1• ��a� I i!PIj�.� �,�77:[�Z� T �° � ' � �� , �711
A heat recovery utilization spreadsheet has been developed to estimate the recoverable
heat based on monthly total electric power production, engine heat rates, building
ANTHC-Savoonga Heat Recovery Analysis December 6, 2010
Alaska Enerav and Enaineerina
heating demand, heating degree days, passive losses for power plant heat and piping,
and arctic piping losses. The spreadsheet utilizes assumed time -of -day variations for
electric power production and heat demand. Power Cost Equalization data for fiscal
year 2009 was used in the spreadsheet. The estimated heat rejection rate for the lead
power plant genset, a Cummins QSX15 G9, is used to estimate available recovered
heat. Heating degree-days for Savoonga were utilized for this site. All arctic piping is
assumed to be routed above grade. All exterior power plant hydronic piping is assumed
to be 3" pipe with 1" of fiberglass insulation and installed above grade. Information
provided by AVEC was used to estimate the heating load for the power plant, which is
comprised of three generation modules, one control module, one housing module, and
three storage modules.
The spreadsheet uses monthly heating degree-days to distribute annual fuel
consumption by month. The monthly heat load is then allocated by hour of day using an
estimated daily temperature variation (diurnal cycle). The end -user hourly heat load is
compared to the hourly available heat from the power plant, less power plant heating
loads and parasitic piping losses, and the net delivered heat to the end -user is
determined.
Following is a summary of annual fuel use and estimated heat utilization in equivalent
gallons of fuel for each building:
Facility Estimated Annual Estimated Heat *
Fuel Use (Gallons) Delivered (Gallons)
Water .Plant 9000 8800
Total 9000 8800
4.0 HEAT RECOVERY SYSTEM DESCRIPTION AND OPERATION:
The heat recovery system captures jacket water heat generated by the AVEC power
plant that is currently rejected to the atmosphere by the radiators. The recovered heat
will be transferred via arctic piping to the Water Plant. The objective is to reduce the
consumption of expensive heating fuel by utilizing available recovered heat. Although
heat recovery is an excellent method of reducing heating fuel costs, recovered
heat is a supplementary heat source and it is imperative that the end -user facility
heating systems are operational at all times.
Hot engine coolant is piped through a plate heat exchanger located at the power plant.
Heat is transferred from the engine coolant to the recovered heat loop without mixing
the fluids. The recovered heat fluid is pumped through arctic pipe to the end -user
facilities, and is typically tied into the end -user heating system using either a plate heat
exchanger or cabinet unit heater.
AVEC PLANT TIE-IN:
No modifications to the AVEC power plant cooling system are included, except those
required to tie a new heat exchanger into the plant hydronic system, provide circulating
pumps, and install instrumentation.
ANTHC-Savoonga Heat Recovery Analysis December 6, 2010
Alaska Energy and Engineering
All piping will be insulated with a minimum of 1" insulation and have an aluminum jacket
where exposed to the weather. All valves will be either bronze ball valves, or lug style
butterfly valves with seals compatible with 50/50 glycol/water mixtures at 200F. Air
vents, thermometers, pressure gauges, drain valves and pressure relief valves will also
be provided.
ARCTIC PIPING (Recovered Heat Loop):
Due to permafrost soils in Savoonga, the proposed arctic piping is a pre -insulated
above grade piping system. The piping will be routed from the AVEC plant adjacent to
existing fuel lines and water and sewer piping to the Water Plant.
The arctic piping system is a pre -insulated, bonded steel piping system. The pipes
consist of SCH40 carrier pipe and HDPE outer jacket bonded to polyurethane foam
insulation. The carrier piping joints will be welded. The system comes complete with all
fittings, tools and accessories required for assembly. The recovered heat fluid will be a
50/50 Propylene Glycol/Water solution to provide freeze protection to the piping.
END -USER BUILDING TIE-INS:
End -user building tie-ins typically consist of either brazed plate heat exchangers or
cabinet unit heaters. Plate heat exchangers located in the end -user mechanical rooms
will be tied into the boiler return piping to pre -heat the boiler water prior to entering the
boiler. Where Toyo-style heaters are used, cabinet unit heaters will be located in the
occupied space. The maximum anticipated delivered recovered heat supply
temperature is about 180F. When there is insufficient recovered heat to meet the
building heating load, the building heating system (boiler or heater) will fire and add
heat.
Typical piping will be type L copper tube with solder joints. Isolation valves will be
solder end bronze ball valves or flanged butterfly valves. All piping will be insulated with
a minimum of 1" insulation with an all -service jacket. Flexibility will be provided where
required for thermal expansion and differential movement. Air vents, thermometers,
pressure gauges, drain valves and pressure relief valves will also be provided.
RIGHTS -OF -WAY ISSUES:
There does not appear to be any conflicts with rights -of -ways for the arctic piping
between the power plant and the Water Plant, as the piping will be routed along the
existing water and sewer piping corridor, and on City and AVEC property.
A Heat Sales / Right -of -Entry Agreement will be required between AVEC and the Alaska
Rural Utilities Collaborative (ARUC) to define the parties' responsibilities, the cost of
recovered heat, and to authorize the renovation of the power plant heat recovery
equipment.
3
ANTHC-Savoonga Heat Recovery Analysis December 6, 2010
Alaska Energy and Engineering
The following initial equipment selections are sized and selected based on preliminary
data and will require minor modifications to reflect final design.
5.1 Heat Exchangers
Based on initial selected flow rates, brazed plate heat exchangers appear to be
adequate for all locations. Initial heat exchanger selections are as follows.
HX-1: (Power Plant). 400 MBH capacity (see note)
Primary: 80 GPM 190F EWT (50% ethylene glycol), 2.0 PSI max WPD
Secondary: 37 GPM 180F LWT (50% propylene glycol) 0.5 PSI max WPD
H2-2: (Water Treatment Plant). 175 MBH capacity.
Primary: 26 GPM 180F EWT (50% propylene glycol), 1.0 PSI max WPD
Secondary: 35 GPM 175F LWT (50% propylene glycol) 1.5 PSI max WPD
ArcticNote: the power plant heat exchanger is sized for future system expansloi-.
5.2 Piping
The length of heat recovery loop piping between the power plant and Water Plant is
approximately 800'-feet, round trip. The arctic piping utilizes 2" SCH40 steel
preinsulated arctic piping to minimize pressure drop and reduce pumping energy. The
piping will be routed above grade alongside existing fuel, and water and sewer piping,
and in a culvert where it crosses beneath the road.
5.3 Circulating Pumps
P-HR1: Heat recovery loop to end -user buildings
Flow = 26 GPM, Head = 24'
Initial Selection: Grundfos UPS 40-80/2F, 26 GPM at 24' TDH, 3/4 HP
5.4 Expansion Tank
Total heat recovery loop volume is approximately 180-gallons. Pressure relief at the
power plant heat exchanger will be 50 PSIG and the maximum normal operating
pressure will be 90% of maximum (45 PSIG).
ET-1: System requirements: 32.0 gallon tank and 19.7 gallon acceptance
Select: Extrol AX-80V, 44.4 gallon tank and 22.6 gallon acceptance
• � ��II�>��L�P��1�17°:� x�Z�7Tthll �� I �7_� � [�7-'
Estimated construction costs were determined based on prior recent heat recovery
project experience, and include materials, equipment, freight, labor, design, construction
management, and startup and testing. All work at the power plant and water plant, and
design and construction management/administration for the project is included (refer to
attached cost estimate).
The estimated project cost for is $299,163. Estimated fuel savings are about 8,800-
gallons. Using an average fuel price of $5.00/gallon results in estimated savings of
$44,000 for a simple payback of 6.8-years.
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PROJECT: ANTHC RECOVERED HEAT STUDY MWN BY. SJS s(`4L. NO SCALE
DESIGNED BY. SJS DATE: 12/6/10 ALASI{A ENERGY &ENGINEERING, INC.
TM-F-: SAVOONGA RECOVERED HEAT RLE NAME SHEET OF P.O. BOX 111405 ANCHORAGE, ALASKA 99511-1405
SCHEMATIC, DETAIL AND LOCATION MAP SAVOONGA.DW S H 1 2 PHONE (907) 349-0100
PROJECT. ANTHC RECOVERED HEAT STUDY
Tnm SAVOONGA RECOVERED HEAT
SVTE PLAN
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DRAWN BY: SJ5 scup: 1 °=50'
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DESIGrlmar:SJS oATE: 12/6/10 Iu4SI�A ENERGY8e ENGINEERING, INC.
FILE NAME SHEET OF P.O. BOX 111405 ANCHORAGE, ALASKA 99511-1405
SAVOONGA.DW S H 2 2 PHONE (907) 349-0100
Company name: -
Created by:Phone:
t"1111-4
jjU��P401 SFax:
-
Date: -
Description
Value
H
UPS 40-80/2 F. 60 Hz
Product name:
UPS 40-80/2 F
(R}
Q = 26.4 US gpm
Product No.:
96403055
1 H = 24.7 ft
EAN:
5700390691127
20
Pumped liquid = Heating water
Liquid temperature = 190 'F
Technical:
16
Density = 60.33 lb/ft'
Speed Number:
Actual calculated flow:
3
26.4 US gpm
12
Resulting head of the pump:
24.7 R
Head max:
26.2 ft
8
Approvals on nameplate:
CE
4�
i
Materials:
0
Eff pump & mlr = 36.6 %
0
10 20 30 40 50 60 70 80 Q(US gpm)
Pump housing: Cast iron
EN-JL1040
P1
ASTM 35 B - 40 B
(W)
Impeller:
Stainless steel
DIN W.-Nr. 1.4301
300
AISI304
200 _
Installation:
01 P1 325 W
Range of ambient temperature:
32 .. 104 °F
S stem ressure:
Y P
Maximum operating pressure:
Min inlet pressure:
Flange standard
145 si
P
145 psi
5.15 psi
JIS1
e s l u
Pipe connection:
40 A
Pressure stage:
10 K
s
Port -to -port length:
11 13116 in
Liquid:
Pumped liquid:
Heating water
Liquid temperature range:
14.. 248'F
Liquid temp:
190 `F
Density:
60.33 Ib/ft'
Electrical data:
Number of poles:
2
Power input in speed 1:
260 W
Power input in speed 2:
310 W
Max. power input:
450 W
Mainfrequency:
60 Hz
_...................................... ----......_.............. ................ _........................ -
Rated voltage:
3 x 200-230 V
Current in speed 1:
0.88 A
Current in speed 2:
1 A
Current in speed 3:
1.55 A
o 0 0 0 0 0
Cos phi in speed 1.
0,85
Cos phi in speed 2:
0,89
Cos phi:
0,84
Enclosure class (IEC 34-5):
44
T1 T2 �_ L3 L2 L1
Insulation class (I EC 85):
F
Motor protection:
CONTACT
K
Thermal protec:
external
STOI�
Controls:
Relay:
without relay
Pos term box:
1.30H
STAR'_ K-
Others:
]
Net weight:
44.3 lb
Gross weight:
45.4 lb
J L3 L2 L1
Shipping volume:
1.17 R'
Panted from Grundfos CAPS
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