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.
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3.0
6.0
9.0
12.0
15.0
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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
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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.
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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)
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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.
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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
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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.