HomeMy WebLinkAboutGulkana Village Council REF Round V Grant Application Request for ReconsiderationALASKA
ENERGY AUTHORITY
Alaska Industrial Development
and Export Authority
September 21, 2011
Mr. LaMonica Claw
Tribal Administrator
Gulkana Village Council
P.O. Box 254
Gakona, AK 99586
Re: Renewable Energy Fund Round V Grant Application
Request for Reconsideration
Dear Mr. Claw:
Thank you for your letter requesting reconsideration of the Alaska Energy Authority's (AEA)
decision to reject your proposal for the "Gulkana Village Biomass Fuels Project." The basis of
your request for reconsideration is that your application "clearly states: (1) there are intentions
to explore options by Gulkana Village Council for electrical generation in the future and (2) as a
basis to sustain the proposed operation —wood pellet sales to the public for heat generation is
an integral component of Gulkana Village Council's Round V proposal."
I have reviewed your proposal and I concur with the earlier AEA staff decision not to advance
this application for further consideration. The 56-page business plan for the pellet operation
includes three paragraphs discussing a future possibility of fueling a power generation facility.
However, the proposal package does not include design documents, equipment cost estimates,
O&M cost estimates, and revenue projections for biomass generation (i.e. turbine, generators,
switchgear, grid tie-in, transmission, operators, etc.). Further, there is no discussion of power
purchase agreements with the local utility. Therefore, I conclude that the proposal is primarily
for designing and constructing a small-scale pellet facility. The Round V Request for
Applications limits the funding available for this type of project to feasibility and reconnaissance.
AEA is supportive of the development of the pellet facility and commends you for your effort to
convert local biomass resources into a product. Please consider contacting AEA biomass
program manager Devany Plentovich at (907) 771-3068 to discuss other options for financing
your project.
Sincerely,
ALASKA ENERGY AUTHORITY
Sara Fisher -Goad
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cc: Devany Plentovich, Program Manager
813 West Northern Lights Boulevard • Anchorage, Alaska 99503-2495
www.aidea.org • 907/771-3000 0 FAX 907/771-3044 • Toll Free (Alaska Only) 888/300-8534 • www.akenergyauthority.org