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HomeMy WebLinkAboutCostworksheet5 Atmocean Round V Submittal to AEA 082311 Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 1 7-1-11 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 The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. Below we show wave data (from the National Data Buoy Center – www.ndbc.noaa.gov) for eight locations worldwide that are prospects for Atmocean WEST. As indicated the data buoy #46082 off of Cordova – representative of Yakutat waves – is among the highest median wave height, and is the highest maximum wave height, of any location shown. While more detailed data needs to be obtained for the actual wave patterns in the target site 2 miles off Cannon Beach, this data suggests the wave resource is more than ample. In the following plot, we analyze the day to day variability of waves (data again from the Cordova buoy). Naturally there is significant variability, with seasonally lower waves in the summertime. This suggests several strategies: 1) Deploy the WEST system in the summer when waves are lower and vessel use will be less interrupted by bad weather. 2) Incorporate hydraulic storage (an accumulator) in the system to even out the supply and demand. 3) Maintain diesel backup for periods when waves are low and demand is high. - 3.0 6.0 9.0 12.0 15.0 - 0.50 1.00 1.50 2.00 2.50 Tillamook ORHawaiiCordova AKGuamSouthern CASt CroixGOM TampaRed SeaMaineMaximum Wave Ht (m)Median Wave Ht (m)Median and Maximum Wave Heights Selected Wave Energy Prospects 2010 Median Maximum Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 2 7-1-11 4) For more northern communities like in the Aleutians, more robust wave patterns in the winter naturally align with the greater kWh supply needed when daylight is less, and heating needs are greater. This is less evident in Yakutat due to the high demand of the fish processing plant July-October. 2. Existing Energy Generation and Usage The following is from “Yakutat Conceptual Design, Performance, Cost and Economic Wave Power Feasibility Study” - Report EPRI - WP- 006-Alaska Author Mirko Previsic, Coauthor Roger Bedard, Date December 31, 2009 (http://oceanenergy.epri.com/attachments/wave/reports/006_Alaska_Yakutat_Conceptual_Wave _Power_Feasibility_Study_123109.pdf) The existing Yakutat Power plant generation equipment consists of four diesel generator sets (gensets) with a total generation capacity of 4,000 kW. The generation system is a 4160-volt three-phase system. All generators operate at 1200 RPM. Genset #1 a new CAT 3516B rated at 1322 kW Genset #2 is a CAT 3512B rated at 880 kW Genset #3 is a CAT 3508B rated at 600 kW Genset #4 is a CAT 3516 rated at 1200 kW The new 3516B is the primary genset. The 3512B and 3508B gensets operate on an as-needed basis when the electric load exceeds the 3516B capacity and when the 3516B is down for maintenance. The 3516 is nearing the end of its useful life and is thus used sparingly. The power plant has two separate cooling systems, both with heat recovery capability. The 3516B and 3512B are on one common cooling loop, and the 3508B and the 3516 are on a separate cooling loop. Both cooling loops are 5-inch diameter welded steel piping with flanged butterfly valves, an AMONT valve, plate heat exchanger and a single radiator. - 500 1,000 1,500 2,000 2,500 3,000 1 2 3 4 5 6 7 8 9 10 11 12Vertical Meters Per Hour Month (2010) Cordova NDBC 46082 Wave Height * Period Per Hour Wave Height * Period Per Hour Poly. (Wave Height * Period Per Hour) Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 3 7-1-11 a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other Please see above. ii. Rated capacity of generators/boilers/other Please see above. iii. Generator/boilers/other type Please see above. iv. Age of generators/boilers/other Please see above. v. Efficiency of generators/boilers/other Please see above. b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) (Source: Yakutat Electric.) i. Annual O&M cost for labor 2008: $504,564 ii. Annual O&M cost for non-labor 2008: $153,588 c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) (Source: Yakutat Electric). i. Electricity [kWh] 2010: 6,604,290 ii. Fuel usage Diesel [gal] 2010: 440,368 Other n/a iii. Peak Load 1,450 (Aug and Sep) iv. Average Load 1,165 v. Minimum Load 875 (Feb) vi. Efficiency TBD. One data point is 14.4 kWh/gallon of diesel vii. Future trends Costs higher. Steady to slowly declining demand. d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] n/a ii. Electricity [kWh] n/a iii. Propane [gal or MMBtu] n/a iv. Coal [tons or MMBtu] n/a v. Wood [cords, green tons, dry tons] n/a vi. Other n/a 3. 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] Atmocean WEST max power rating (wave dependent) is approximately 1,600KW – however this max is most often achieved in the winter months when Yakutat demand is lower. b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 6,400,000 ii. Heat [MMBtu] n/a 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 4 7-1-11 c) Proposed annual fuel usage (fill in as applicable) i. Propane [gal or MMBtu] Zero ii. Coal [tons or MMBtu] Zero iii. Wood [cords, green tons, dry tons] Zero iv. Other Zero 4. Project Cost a) Total capital cost of new system $4,962,965 b) Development cost $1,500,000 cash+ in-kind has been invested as of the date of submittal. c) Annual O&M cost of new system $ 200,000 d) Annual fuel cost None – free wave energy! 5. Project Benefits a) Amount of fuel displaced for i. Electricity 440,000 gallons diesel (source: Yakutat Electric). ii. Heat n/a iii. Transportation n/a b) Current price of displaced fuel We estimate $4 per gallon delivered. Total direct financial benefit per year is $1,760,000 as per Grant Application 2.7.5. c) Other economic benefits $ 847,000 as shown in the Grant Application section 2.7.6 d) Alaska public benefits Create jobs in rural area (initial payroll of $450,000). Revitalize local economy, reverse the trend of out- migration. Reduce CO2 emissions by burning less diesel. Improve ocean ecology by upwelling of nutrients which stimulate phytoplankton, the base of the ocean food chain. Favorable PR – being the first to adopt wave energy. 6. Power Purchase/Sales Price a) Price for power purchase/sale Sliding scale. We assume initial price of $0.35/kWh, decreasing each year as explained in the accompanying documents. 7. Project Analysis a) Basic Economic Analysis Renewable Energy Fund Round 5 Project Cost/Benefit Worksheet RFA AEA12-001 Application Cost Worksheet Page 5 7-1-11 Project benefit/cost ratio We estimate a ratio of 3.3 based on ratio of benefits to costs ($16.2 million/$4.9 Million) but could be much higher if diesel prices go up as is likely. Payback (years) 4 years.