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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 r r=X6Gutive Dirtulut 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