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HomeMy WebLinkAboutTyonek Native Corporation - Ormat Letter of Support -AEA 2010Tyonek Native Corporation 1689 C Street, #219 Anchorage, AK 99501-5131 Tel: (907) 272-0707 Fax: (907) 274-7125 9 September 2010 To: Alaska Energy Authority Renewable Energy Fund, Round III Re: ORMAT Application for Mt. Spurr Geothermal Exploration Grant This letter is to support the ORMAT application for the Alaska Renewable Energy Grant Fund, round IV for development of a 50 MW geothermal plant on Mt. Spurr. We believe this project is an excellent increment of true renewable energy, and vital to the Railbelt electric grid. Tyonek Native Corporation (TNC) supports this project for the following reasons: 1) Alaska must build up to 1,000 MWs of new generation in the next twenty years in the Railbelt to replace aging power stations 2) The State of Alaska, as well as local governments and Railbelt utilities, have indicated that they will strive to get 50% of their power from renewable resources. It is likely that the federal government will require Renewable Portfolio standards in the near future. 3) The Village of Tyonek and future development of TNC's surrounding lands is dependent on a reliable, economic source of electric power from the Railbelt grid. This project meets all those needs, as well as being a large economic development that creates both local job opportunities and opportunities for local services in the development and construction phase as well as the long-term life of the project in the operation and maintenance phase. ORMAT has a Cooperative Agreement with TNC that covers these opportunities, and so far ORMAT has exceeded our expectations in fulfilling its obligations under our Agreement. We appreciate AEA's decision to award Ormat some $2 million in the previous round. We understand ORMAT is encouraged by initial results of that work, and we therefore urge that the AEA grant ORMAT the additional funds requested in this round in order to move this project forward by continuing to share some of the high exploration costs inherent in this project. Very truly yours, John D. McClellan, P.E. Tyonek Enterprise Development, Inc.