Loading...
HomeMy WebLinkAboutValdez Fisheries Devel Assoc Waste Energy Powered Absor Refrigeration Unit App/: ALASKA Renewable Energy Fund Round IV M- ENERGYAUTHaRI'Y Grant Application Application Forms and Instructions The following forms and instructions are provided to assist you in preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at: http://www.akenergyauthority.org/RE Fund-IV.html Grant Application f GrantApp4.doc Application form in MS Word that includes an outline Form of information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as re aired. Application Cost Costworksheet4.doc I Summary of Cost information that should be Worksheet addressed by applicants in preparing their application. Grant Budget Form GrantBudget4.doc A detailed grant budget that includes a breakdown of costs by milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form GrantBudgetlnstructions4.pdf Instructions for completing the above grant budget Instructions I form. • If you are applying for grants for more than one project, provide separate application forms for each project. ■ Multiple phases for the same project may be submitted as one application. • if you are applying for grant funding for more than one phase of a project, provide milestones and grant budget for completion of each phase. • If some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. • If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. REMINDER: • Alaska Energy Authority is subject to the Public Records Act AS 40.25, and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. ■ All applications received will be posted on the Authority web site after final recommendations are made to the legislature, ■ In accordance with 3 AAC 107.630 (b) Applicants may request trade secrets or proprietary company data be kept confidential subject to review and approval by the Authority. If you want information is to be kept confidential the applicant must: Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. a Receive concurrence from the Authority that the information will be kept confidential. If the Authority determines it is not confidential it will be treated as a public record in accordance with AS 40-25 or returned to the applicant upon request. AEA 11-do5 Application Page 1 7121 /201 D ALASKA Renewable Energy Fund Grant Application Round IV SECTION 1 - APPLICANT INFORMATION Name i Name of utility. 1PP, or govemrrwrit entity subtnittingr proposal) Valdez Fisheries Development Association Inc. Type of 15": Private Non -Profit Corporation Mailing Address I Physical Address Box 125 Valdez, Ak 99686 1 1815 Mineral Creels Loop Rd Telephone Fax Email 907-835.4874 907-835-4831 vfdalauraj4Fvaldezfisheries.c0m 1.1 APPLICANT POINT OF CONTACT ! GRANTS MANAGER Name TWO Jason Wells Executive Director Mailing Address Box 125 Valdez, Ak 99686 Telephone Fax Email same same same 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or X An independent power producer in accordance with 3 r►AC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by or its board of directors, executive management, or other governing authority. If the No applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) YesA 1.2.3. As an applicant, we have administrative and financial management systems and or follow procurement standards that comply with the standards set forth in the grant No agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached or grant form. (Any exceptions should be clearly noted and submitted with the No application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant or funds for the benefit of the general public. No AEA11-005 Grant Application Page 2 712112010 ALASKA fE AJtRMI'Y Renewable Energy Fund Grant Application Round IV SECTION 2 — PROJECT SUMMARY This is intended to be no wrote than a 1-2 page overview of your project. 2.1 Project Title - (Provide a 4 to S word title for your project) Type in our an,%veer here and_1a11ow sume.tormur•for rest g1'rhe application. waste energy powered absorption refrigeration unit 2.2 Project Location -- rnctude the physical location of your project and neme(s) of the community or communities that will benefit from your project. Answer herd. 2 Mile Dayville Road, Valdez, Ak 99686 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydra, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) waste -energy recover 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project The project, located in Valdez, Alaska, will capture waste heat generated at t*v.Petro Star Refinery. Waste heat will be collected by a shell and tube glycol medium recovery system. The medium will drive two technologies operating in a series. Ammonia absorption technology will create cooling for 45 million pound —20 degree cold storage facility. An organic Rankin Cycle Generator will use the medium once it has exited the ammonia absorption system to create 600 wk's of power which will be used to operate the Cold Storage facility as well as the Solomon Gulch Hatchery. The final benefit will be to use the cold cycle of the generator to cire_ate a s-aImon rearing facility. AEA11-005 Grant Application Page 3 712112010 �� ENERGY ALASKA Renewable Energy Fund Grant Application Round I V 2.5 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy casts, etc.) Savings in Electrical Costs $ I 5,800,000 For the Lite of the Project Cost Savings at the Hatchery $7,500,000 For the Life of the Project Total $23,300,000 For the Life of the Project Savings in Freight Costs to the Processors $2,250.000 Annually Jobs created in value adding (value) $8,000,000 Annually Salmon Rearing Facility community benefits $4,000,000 Annually The project is a utilization of waste heat which is now being exhausted to the atmosphere. The heat from the Petro Star Refinery would be captured by a shell and tube heat exchanger and transported via a glycol medium to the project site. Petro Star currently exhausts 22.5 MM BTU's/ hour of usable heat. The glycol at a temperature of 210 degrees F. would first run through two 200 ton ammonia absorption units which would generate enough cooling for 45 million pounds of -20 degree cold storage capacity. The glycol would exit the ammonia skid at 176 degrees and run thru two Purecycle 225 power generators. Once the glycol exits the generator it would flow thru the heat exchanger and return to the refinery. The last heat exchanger would provide heat to either heat a building if needed or keep ice from penetrating the ground under the freezer units, . Cold water for the low temperature side of the generators would be provided from surface water originating from Abercrombie Creek. Once the water had cooled the generator it would be mixed with ambient water to provide 50 degree F. fresh water for a rearing faciIity for salmon 2.6 Project Budget Overview: B ie(!y discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contdbutions to the project. VFDA has been working on this project since March of 2003. We have paid for a Conceptual Engineering Letter (Alaska Anvil). Conceptual Engineering Report (Alaskan Anvil). A Economic Feasibility Study ( McDowell Group). Business Plan (McDowell Group). A Fatal Flaw Analysis ( Energy Concepts) and a Project Document Consolidation Report (McDowell Group). VFDA has spent or contracted for over $125,000 on progressing this project. Valdez Fisheries Development is requesting S1,021,287 in Grant Funds AEA11-005 Grant Application Page 4 /as ALASKA 4W LNERGYAUTHORirr Renewable Energy Fund Grant Application Round IV 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below Grant Casts (Summary of funds requested) 2.7.1 Grant Funds Requested In this application. $ 1,021,287 2.7.2 Other Funds to be provided (Project match) $ 350,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 1,376,287 Project Costs & Benefits ( Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet $ including estimates through construction) 36,016,000 2.7.5 Estimated Direct Financial Benefit (Savings) $ 23,300,000 2.7.6 Other Public Benefit (If you can calculate the benefit in $ terms of dollars please provide that number here and 14,250,000 explain how you calculated that number in your application (Section 5.) _. 1 AEA11-005 Grant Application 7/21/2010 1� ALASKA Renewable Energy Fund Grant Application Round I V SECTION 3 — PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. The project oversight will be conducted by Jason Wells, CEO for Valdez Fisheries. The project will be managed by Ken Morgan, VFDA 's current project manager. Mr. Morgan has worked for VFDA for 21 years and currently manages all our construction and maintenance projects. In addition to Mr. Morgan, we will use a qualified flow engineering firm, hopefully one familiar with the Petro Star Refinery. Energy Concepts engineers will coordinate their engineering expertise in ammonia absorption with Alaska Anvil as will UTC Power with their expertise in low temperature power generation. VFDA will hire a Project Engineer to work facilitate between VFDA and project contractors. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this grant. (You may include a chart or table attachment with a summary of dates below.) The proposed work that will be funded by this grant will be the final design of the proposed waste energy recovery and utilization system. The individual components of the project include the following: (1) The collection of the maximum usable .waste heat from the refinery. (2) The transportation of that energy to the project site. (3) The utilization of the waste energy as refrigeration using an ammonia absorption system. (4) The utilization of the waste heat down- stream from the ammonia absorption system in an Organic Rankin Cycle electric generator. The product of this work will result in the final design of an integrated system that maximizes the use of the waste energy and maximizes the production of -20 degree F. cold storage facility and electricity. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The Milestones must also be included on your budget worksheet to demonstrate how you propose to manage the project cash flow. (See Section 2 of the RFA or the Budget Form.) The project milestones will include the following: (1) Prepare an RFP to identify a process engineering firm to design the waste heat recovery and transport system. This firm will oversee the project and coordinate with systems specialty engineers. Further, we will bid the project and select the most qualified firm. We anticipate needing some contractual services to help with Milestone One. We anticipate RFP's to be ready within 60 days of the grant award notification. (2) We will review RFD's, select the best qualified finn and award the contract. Again, we will have professional assistance in evaluating the RFD's. We anticipate completion of this task within 60 days. (3) The third milestone will be to award a contract for the final design for the integrated system described in 3.2 Project Schedule above. AEAII-005 Grant Application /• A LAS KA Renewable Energy Fund Grant Application Round I V 3.4 Project Resources Describe the personnel, contractors, equipment, and services you will use to accomplish the project. Include any partnerships or commitments with other entities you have or anticipate will be needed to complete your project. Describe any existing contracts and the selection process you may use for major equipment purchases or contracts. include brief resumes and references for known, key personnel, contractors, and suppliers as an attachment to your application. VFDA will solicit and contract a qualified Alaskan Engineering firm to develop specifications and coordination with all technical engineers. Due to the technology employed in the project, VFDA will sole source the ammonia absorption skills from Energy Concepts Company and the Organic Rankin Cycle generators from United Technologies Company (UTC). All other materials will be the responsibility of the contractor. Key Personnel Randy Maag Refinery Manager Donald Erickson Engineer Bruce Brederman Engineer A yet to be determined engineering firm. Petro Star Refinery Energy Concepts United Technologies 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status VFDA will use its current corporate structure to oversee the project. Mr. Ken Morgan will be the key corporate contact between AEA and the project. He will keep the corporate leadership apprised of the project progress. He will in turn have a project engineer who will report to him and who will oversee the contractor's progress, change orders and specification compliance. The contractor will invoice VFDA for work completed. Once the work has been reviewed by the project engineer and project manager, VFDA's accounts payable will submit the invoices to AEA for payment. VFDA's project manager will submit quarterly progress reports to AEA via e- mail. 3.6 Project Risk Discuss potential problems and how you would address them. VFDA foresees the following potential risks: 1. Coordinating heat recovery with the refinery 2. The project having an effect on the refinery 3. Refinery Shutdowns 4. Power Disruptions 5. Delivery Schedule for key components 6. Material Shortages 7. Rising Material Costs 8. Flammability of ammonia AEAII-005 Grant Application Solutions Early coordination and lead time Careful final engineering Backup Heat Source Hook up to CVEA Early ordering Develop key components strategy Develop staged construction Fall back position Develop handling & Fire system /& ALASKA Renewable Energy Fund GW-- ENERGY AuTrios" Grant Application Round IV SECTION 4 - PROJECT DESCRIPTION AND TASKS • Tell us what the project is and stow you will meet the requirements outlined in Section 2 of the RFR. • The level of information will vary according to phase(s) of the project you propose to undertake with grant funds. • If you are applying for grant funding for more than one phase of a project provide a plan and grant budget form for completion of each phase. • if some work has already been completed on your project and you are requesting funding for an advanced phase, submit information sufficient to demonstrate that the preceding phases are satisfied and funding for an advanced phase is warranted. 4.1 Proposed Energy Resource Describe the potential extentlamount of the energy resource that is available. Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be available for the market to be served by your project. Petro Star Refinery is currently discharging 43 min BTU/hour into the atmosphere. This is low temperature waste heat at 215 degrees F. to 218 degrees F. Approximately 20.5 mm BTU/hour is hot enough to be usable to drive and ammonia absorption system as well as low temperature electric generators. The project will use a glycol exchange medium to transport energy to the ammonia absorption skid. Temperatures into the skid will be 210 degrees F. and discharge at 176 degrees F. The glycol discharging from the absorption skid will be about 800 gpm at 176 degrees F. This is enough energy to create approximately 630 Kilowatts of power which will be used to reduce the power costs at the cold storage facility. Excess power will be used to reduce the overhead costs at VFDA's Solomon Gulch Hatchery. d 2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. include information about the number, size, age, efficiency, and type of generation. VFDA's hatchery is currently connected to CVEA's power grid. The cold storage facility will be connected to the CVEA power grid as a back-up to the low heat generator. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. include a brief discussion of any impact the project may have on existing energy infrastructure and resources. I he Solomon (.etilch Hatchery currently uses about $00,000 Kwhlyear. Average consumption for the ammonia absorption driven cold storage facility is estimated at 278 Kw when running at full capacity. AEAll-005 Grant Application '� ALASKA ENERCYAUTHOAirY Renewable Energy Fund Grant Application Round I V 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. It is envisioned that VFDA will consume all of the power produced. However, the public will receive 100% of the benefit because of VFDA's corporate purpose and vision. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods Technology to be cniployed in the project will be the standard ammonia absorption technology. however, due to the low temperature; a three pressure (double lift) cycle has been selected. Technology to be employed for the power generation ►vill be an Organic Rankin Cycle Generator turbine developed by UTC (PureCycle model 225). 4.3.2 Land Ownership Identify potential land ownership issues, including whether site owners have agreed to the project or how you intend to approach land ownership and access issues. There are 18 acres available for the project across the highway from the Petro Star Relinerv. VFDA has been in negotiations with the current owners. VFDA is waiting to come to an agreeable price for the acreage. VFDA will purchase the property free and clear. Petro Star currently has a right of way across the site which delivers crude oil from the Trans Alaska Pipeline. While we will have access and use of the property, it is not clear whether we will have our own pipeline corridor across the highway or will use Petro Star's access. 4.3.3 Permits AEAII-005 Grant Application /a-. ALASKA GW- M$MY Renewable Energy Fund Grant Application Round IV Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential harriers The following permits are anticipated to be needed for the project: 1. City of Valdez Coastal Zoning Permit 2. City of Valdez Building Permit 3. State of Alaska Fire Marshals Review and Permit 4. State of Alaska Right of Way encroachment Permit 5. State of Alaska Coastal Zoning Review The City of Valdez permits should be rather straight forward and be available with 45 days after the State Fire Marshal reviews and signs off on the project. There may be a delay with the Fire Marshals review because of the hazardous nature of the ammonia system and the potential fire danger. All permits will require final design drawings to proceed. 4.3.4 Environmental Address whether the following environmental and land use issues apply, and if so how they will be addressed: • Threatened or Endangered species • Habitat issues ■ Wetlands and other protected areas ■ Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations ■ Visual, aesthetics impacts ■ identify and discuss other potential barriers I. No threatened or endangered species are known on the site 2. Habitat issues. Site drainage during construction could be an issue because there is an anadromous stream bordering the site to the east. Soil containment will be required by the contractor. The water supply for the cold water side of the Iow heat turbine might affect the anadromous stream. This issue will be addressed in the final design. 3. Wetlands. The east end of the building site borders an anadromous stream. Some portion of the east end of the project site might not be buildable 4. Archeological. The site was cleared in the 1970's and again in 1989 during the Exxon Valdez Oil Spill. No archeological or historical resources are anticipated, but the site will be appraised by the State of Alaska. 5. Land development constraints. No residential area is located within 2 miles. The site is heavy industrial. No constraints are anticipated. G. Telecommunication interference. No interferences are anticipated, however there are several fiber optic cables are located between the building site and the Petro Star Refinery. These will be located and avoided prior to construction. 7. Aviation considerations. The building site is very rarely transited by aircraft. Alyeska flies helicopters down the Pipeline but the project profile is too low to be a problem. AEA11-005 Grant Application .�A LAS KA __ F-WROV AUTHORITY Renewable Energy Fund Grant Application Round I v Visual, aesthetic impact. The site is located in an industrial area across the roadway from a petroleum refinery. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer's estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase ■ Requested grant funding • Applicant matching funds - loans, capital contributions, in -kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system The total costs for the overall project is $36,016,000 according to the "Conceptual Engineering Report" by Alaska Anvil (919103). VFDA is asking for a grant in the amount of$1,021,000 for the current phase which includes Final System Design (Heat collection to the ORC). To date VFDA has contributed $150,000 to the preliminary work and we anticipate the land purchase to be about $250,000. VFDA will leverage the AEA grant to obtain Federal and State grants for the final project design and the construction phases which will include the glycol delivery line, heat collector, ammonia absorption skid, Organic Rankine Cycle Generator, freight, buildings and four warehouses. Funding to complete the facility to the 45 million pound capacity will come from loans and fees for the use of the facility. The ammonia skid system is estimated to cost about $2,700,000 installed. The Organic Rankine Cycle Generator is currently an off the shelf item. Some engineering may be required for the ammonia absorption skid. 4.4.2 Project Operating and Maintenance Costs Include anticipated O&M costs for new facilities constructed and how these would be funded by the applicant. (Note: Operational costs are not eligible for grant funds however grantees are required to meet ongoing reporting requirements for the purpose of reporting impacts of projects on the communities they serve. _ Enclosed please find a 5 year Annual operating Expen.;es t ►1ppend ix #1) and a 5 year Proforma derided from Valdez Regional Cold Storage and processing facility Business Plan 2009 Updated by McDowell Group. March 2009 4.4.3 Power Purchase/Sale The power purchaselsale information should include the following: • Identification of potential power buyer.(s)1customer(s) AEA11-OU5 Grant Application A ALAS KA ENERGY AUTHORITY Renewable Energy Fund Grant Application Round IV • Potential power purchaselsales price - at a minimum indicate a price range • Proposed rats of return from rant -funded project No Purchase/Sale of power is anticipated 4.4.4 Protect Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submir it as an attachment. Document any conditions or sources your numbers are based on here. Numbers for the Budget form were derived from Cost estimates in the Alaska Anvil Conceptual Engineering Report and our estimates of time dedicated by VFDA's Project Manager. See Attachment. SECTION 5- PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct Cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non -economic public benefits to Alaskans over the lifetime of the project Valdez Fisheries Development Association is a 501;(c) (3) not for profit corporation. The purpose for formation of the corporation is stated in the Articles of Incorporation. "The purpose and purposes for which it is formed are to raise and propagate fish and develop renewable fisheries resources for the benefit of sport fishermen, commercial fishermen, fish processors, tourists and all businesses dependent upon the fishing industry in Alaska". To this end, all of the benefits and expense savings which VFDA receives or produces inures to the benefit of all Alaskans. VFDA has developed a very successful hatchery program which currently returns 60-100 million pounds of fish annually to Port Valdez (see appendix 2). If Alaska is going to get the full benefit of these resources, we need to be doing the value adding to the raw resource. Alaska has never had the ability to hold its raw product instate so that value adding could provide winter jobs for Alaskans. The problem has always been that cold storage operations were too expensive due to the high cost of power. This project provides power costs at nearly a nearly zero cost. The processing industry in Alaska processes fish during a very short season and under great time constraints. This results in the product being minimally processed and quickly stripped outside. The processor must ship parts of the fish (skin, bones, and fins) which have no sales value. All of AEAII-005 Grant Application rZ1ALASKA D&FMY WTHORltr Renewable Energy Fund Grant Application Round 3 the unused parts must still be shipped to south at S.1711b. if the value adding were performed in Alaska, the processors would cut the shipping costs in half as about 50% of a headed/gutted salmon is usable. Further, if a processor doesn't pre -sell his pack, he must borrow money for freight at current capital rates. If processors could hold production in Alaska, they could charge the freight to the purchaser of his product on a net 30 day basis. Alaskan processors particularly small freezing facilities would greatly benefit from this project. This project will also provide a repository in Alaska for raw product. Available raw product could spin off many small businesses in Alaska which could create specialty products during the winter months. This project will also provide a warm water source for the rearing of sport fish for the Prince William Sound sports fish industry. It is anticipated that at full capacity the facility would employ about 200 full time rural employees. Aside from the benefits to commercial and sport fishermen, the project would also help Copper Valley and Delta area farmers. The farmers are limited in their ability to produce more crops by a lack of holding area for their harvests. They like the fishermen are subject to a very short harvest season and must ship to holding warehouses in the lower 48. This project has the ability to vary the temperatures in each warehouse from -20 degrees F. to +70 degrees R Farmers products could be frozen or held in a controlled environment until markets can offer farmers optimum prices. The project would allow farmers to increase their production, value add their products and delay shipping until market prices increase and transportation prices decline. Projects like the one proposed by VFDA will begin to build necessary infrastructure so that Alaska can use its own resources to develop a local year round economy. Such projects will need to be energy competitive and labor saving to compete in the global markets. Most Alaskan businesses can not afford to develop needed infrastructure by themselves, they will need government assistance to make the contribution to Alaska's economy. Such infrastructure will allow Alaskan's to develop in state capital; with that capital be re -circulated in Alaska's economy. j SECTION 6- SUSTAINABILITY Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum: • Proposed business structure(s) and concepts that may be considered, • How you propose to finance the maintenance and operations for the life of the project • Identification of operational issues that could arise. • A description of operational costs including on -going support for any back-up or existing systems that may be require to continue operation AEA11-005 Grants Application /daffL- ALASKA Renewable Energy Fund gW- EµERGYAUTHORITY Grant Application Round IV • Commitment to reporting the savings and benefits The operating plan is the same as 4.4.5 Business Plan as in Phase II documents. SECTION 7 — READINESS & COMPLIANCE WITH OTHER GRANTS Discuss what you have done to prepare for this award and how quickly you intend to proceed with work once your grant is approved. Tell us what you may have already accomplished on the project to date and identify other grants that may have been previously awarded for this project and the degree you have been able to meet the requirements of previous grants. VFDA has completed most of the preliminary due diligence for the project. This includes concept evaluation, concept costs, feasibility study and business plan. We have shown the project to state legislators, the city council, and our Washington D.C. delegation. We are consistently told that is a good project, however, the federal delegation insists that the State of Alaska must invest in the project before we will be given consideration for federal funding. We found a federal grant which fit the project of waste energy recovery but we have had to pull back because of the 50% match requirement. VFDA is ready to start the project. We have contacted three engineering firms, each with its own area of expertise to work on the systems engineering. AEAII-005 Grant Application ' ALASKA Renewable Energy Fund Grant Application Round I V SECTION 8— LOCAL SUPORT Discuss what local support or possible opposition there may be regarding your project. Include letters of support from the community that would benefit from this project. VFDA was started by the citizens of Valdez and the Iarger Prince William Sound for the purpose of enhancing the fisheries and fisheries products for the betterment of our collective communities. We have developed many projects which enjoy great support. VFDA moves slowly and ensures community involvement before we proceed. In 2007 we held a work session with the Valdez City Council and received overwhelming support for the project. SECTION 9 - GRANT BUDGET Tell us how much you want in grant funds Include any investments to date and funding sources, how much is being requested in grant funds, and additional investments you will make as an applicant. Include an estimate of budget costs by milestones using the form — GrantBudget3.doc Provide a narrative summary regarding funding sources and your financial commitment to the project. VFDA is requesting $1,021,287 from the Renewable Energy fund. We will add this to the $150,000 which we have spent in analysis and engineering. in addition we will add $200,000 for land acquisition and $6,000 in travel and contractual funds. This will bring VFDA's contribution to $356,000 which brings the project thru Milestone #2. AEAI1--005 Grant Application ti 0 LL a� m_ C m 6- Mo a oloq N N 0 4 2 e o a Q- o ri Gr; C3 "D d4 i/i H fA Vi 44 fA EN i/! d4 19 fA Y! d} i/i 4H i!i d9 VF 10 C 0 CD i9 p 4 C V d N m 0 E5 a 3 0 m e9 � Z � � � � U L C! V � V •07 D as �' '° � � c � ❑ L] E1 �j � �► La m a a tA LL 40 Go W% 69 1 W W. .4 C A CD U. N D ❑ CJ m .c iA Y9 M) iq �A V! Y! u9 lA 1 Y9 Y} [A 69 [A tl iA i14 m q1 a m C "� N a 4 0 O[ rn m LL ❑L 3 4 .n w 0. in I�c � V?Lo � C rA Q �1 rm � L ❑ Ir 3 en W J a fn r- Qy cri $ a 00chi 3 t 0 Q E a 13 a Ng J N J m L] Lu M C U C U CL Q ALAS MCA Renewable Energy Fund Grant Application Round IV SECTION 9 -- ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. Contact information, resumes of Applicant's Project Manager. key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. B. Cost Worksheet per application form Section 4.4.4. C. Grant Budget Form per application form Section 9. D. Letters demonstrating local support per application form Section 8. E. An electronic version of the entire application on C❑ per RFA Section 1.6. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indicated in the application. - Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. H. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations. Print Name Signature Title �v note Z-S- —/D AEA11-005 Grant Appimation 712112010 ' ALASKA Renewable Energy Fund Round 4 ENERGY AUTHORITY Project Cost/Benefit Worksheet 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. 22.5 mm BTU/hour Unit depends on project type (e.g. windspeed, hydropower output, biomass fuel) 2. Existing Energy Generation and Usage a) Basic configuration (if system is part of the Railbelt' grid, leave this section blank) i. !Number of generators/boilerslother none ii. Rated capacity of generatorslboiiers/other n/a iii. Generatorlboilers/other type n / a iv. Age of generatorslboilerslother n / a v. Efficiency of generators/boilers/other n / a b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual ❑&M cost for non -labor c) Annual electricity production and fuel usage (tilt in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] li / a ii. Fuel usage n / a Diesel [gal] n/a Other n / a iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends n/a n/a n/a n la 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 1 a iv. Coal [tons or MMB1u] n / a v. Wood [cords, green tons, dry tons] n / a vi. Other n / a - The Railbelt grid connects all customers of Chugach Electric Association, homer Electric Assockation, Golden Valley VeWic Association, the City of Seward Electric Department, Matanuska Electric Assccmtlon and Anchorage Municipal oght and Power. RFA AEA11-005 Application Cost Worksheet Page 1 7-21-10 '` ALASKA Renewable Energy Fund Round 4 M _'NrAGiAUTHGRITY Project Cost/Benefit Worksheet 3. Proposed System Design Capacity and Fuel Usage (include any projections for continued use of non-renewabie fuels) a) Proposed renewable capacity 45 million pounds of cold storage (Wind, Hydro, Biomass, other) capacity and 630 kw of electricity [kW or MMBtulhrl b) Proposed annual electricity or heat production (fill in as applicable) i. Electricity [kWh] ii, Heat [MMBtu] c) Proposed annual fuel usage (fill in as applicable) L Propane [gal or MMBtu] N. Coal (tons or MMBtu] iii. Wood [cords, green tons, dry tans] iv. Other recoverable waste heat estimated to be 22.5 mm BTU/hour 4. Project Cost a) Total capital cost of new system $ 3b million b) Development cost none c) Annual O&M cost of new system $224,000 to $400,000 per year d) Annual fuel cost none 5. Project Benefits a) Amount of fuel displaced for i_ Electricity 374,928 all ❑ n s per year ii. Heat 0 iii. Transportation 0 b) c) Current price of displaced fuel $ 3. 50 per gallon = $1 , 1312 , 428.00 Other economic benefits $10,250,000 d) Alaska public benefits $15 , 562 , 4 28 6. Power Purchase/Sales Price a) Price for power purchase/sale $16.34 per kw/hour 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback (years) $730 million per $25 million in capital costs =20 to 5 years R#=A AEA11-005 Application Cost Worksheet Page 2 7-21-10 L� r 4-7 0 u F i •- { - } j1j � � Table IS Annual Expense Summary for the Valdez Regional Cold Storage and Processing Line Facility MaA Koji Utilities Pleating tuet $ 1,200 S 1,200 $ 1,200 S 1,200 S 1,200 TelephonelInternet connection 3,700 4,000 4,300 4,600 4,900 Diesel for generator backup 3,000 3,000 3,000 3,000 3,000 Utilities Subtotal 5 7,900 S 8,200 $ 8,500 $ 8,800 S 9,100 Supplies Office 1,500 1,700 1,800 2,000 2,200 Grounds 500 600 600 700 700 Processing line 2,500 2,800 3,000 3,300 3.700 Supplies Sub -total S 4,500 $5,100 $5,400 $6,000 S 6,600 Labor Salaries 260,000 310,000 465,000 465,000 465,000 Burden at 20% 52,000 62,000 93,000 93,000 93,000 Labor Sub -total S 31ZDW $372,000 S S58,000 S 5S8,000 S 558,000 Building & Equipment Expense Insurance (property & liability) Building repair & maintenance Grounds maintenance (snow removal) Processing equipment R&M Set -aside For equipment upgrades Building & Equipment Sub -total 106,200 64,700 10,000 19,300 50,000 $250,200 132,200 72,100 10,000 25,000 75,000 $ 314,300 158,200 79,500 10,000 27,100 100,000 S 374;800 784,200 86,900 10,000 28,400 125,000 S 434,500 184,200 94,300 10,000 29,200 150,000 $ 467,700 Business Services Accounting & legal 51000 6,000 7,000 8,000 10,000 Taxes Real property (20 mills) - 480,500 535,400 590,300 6,45,200 700,100 Expenses before Depreciation & Debt S1,060,100 S1,241,000 $1,544,000 $1,660,500 S1,751,S00 Service Depreciation Equipment (processing) S 84,000 S 114,800 $ 114,800 S 114,800 $ 114,800 Equipment (office) 33,800 34,200 34,300 34,300 34,300 Equipment (cold storage) 11,000 1Z600 18,200 19,800 19,800 Ice machines 10,000 10,000 10,000 10,000 10,000 Buildings 587,900 655,700 723,500 791,300 859,100 Depreciation Sub -total $ 726,700 S 8271300 $ 900,800 S 970,200 5 1,038,000 Debt Service Assumes 100% grant funding - Total Expenses $1,786,1300 S2,068,300 S2,444,800 $2,630,700 SZ7891500 Note., As a 501(c)(3) Valdez fisheries development Association may not be subject to real property taxes for this facility Valdez Regional Cold Storage and Pro[rssing FaWity Business Plan -- 2009 Update McDowell Group, Inc. a Page 56 r financial Summary of Operations Revenue Total revenues from cold storage and processing activity in Year 1 are estimated at S181,100 based on the results of interviews with potential clients. In Year 5, total revenues from cold storage and processing activity increase to S2.7 million, assuming that potential clients are able to reach the high estimate for usage. VFDA's Year 4 and 5 revenue assumptions include attracting the cold storage business of the dominant processor in the Prince William Sound region. Higher revenues may occur sooner if processors are able to quickly relocate their operations to Valdez. Revenues Cold Storage Processing Other misc. Total Revenues Expenses Utilities Supplies Labor Building and Equipment Business services Taxes Total Expenses Table 3 Pro -forma Operating Cash Flow Statement Valdez Regional Cold Storage and processing Facility S 123,400 $294,100 $662,900 $1,268,100 S 1,706,300 54,900 138,200 330,500 671,900 960,400 2,800 3,100 3,100 3,300 3,400 $181,100 S 435,400 $996,500 S 1,943,300 $2,670,100 S 7,900 $8,200 S 8,500 S 8,800 S 9,100 4,500 5,100 5,400 6,000 6,600 312,000 372,000 558,000 558,000 558,000 250,400 314,500 375,000 434,700 467,900 5,000 6,000 7,000 8,000 10,000 480,500 535,400 590,300 645,200 700,100 $ 1,060,300 S 1,241,200 S 1,544,200 S 1,660,700 S 1,751,700 Cash Flow From Operations (S879,200) ($805,800) ($547,700) S282,600 $918,400 (Vote: As a 501(c)(3) Valdez Fisheries Development Association may not be subject to real property taxes for this facility, Expenses Annual expenses range from $1.1 million in the first year of operation to S 1.8 million in Year 5. Estimates are based on existing conditions in Valdez for utility rates, the Alaska Anvil conceptual engineering report for construction, the Energy Concepts analysis for power generation, and discussions with industry experts for insurance, and repairs and maintenance. When depreciation is included, Year 1 expenses are nearly S2 million and Year 5 expenses rise to just under $3 million. Valdez Re9knVI Cold Storage and Processing FociHty Business Plan - 2009 Update MCAoweN Group, Inc. • Page 6 ,4 r Page 1 of 1 Laura Weaver From: "Maag. Randy" <RMaag@Petro-star.com> To: "Laura Weaver' <vfdalaura@valdezfishenes comma Sent: Tuesday. January 05, 2010 4 50 PM Subject: RE. hound III - Renewabie Energy Fund application Laura, please forward this to Jason Jason Wells, Petro Star has sufficient quantity of waste heat to support the Valdez Fisheries project for Waste Energy Powered Absorption Refrigeration Unit -Valdez. Petro Star remains committed to support this protect as originally stated in the beginning and continue the working relationship with Valdez Fisheries. Randy Maag, P.E. Refinery Manager Petro Star Vaidez Refinery i16I2010 Page 1 of 2 Laura Weaver From: "Gwen Hotdmann" <gwen.hold mann c@alaska.edu> To: <vfdalaura@valderCishenes Con > Sent: Monday, January 04, 2010 11:38 AM Subject. Re: FW from Jason .lasoli. 7-he ORC units are available at 280kW, and they are off -the -shelf using 245fa refrigerant. The Chena unit was a demo unit, a little smaller (200kW like you mention), and used the lower temp 134a. This configuration is not commercially available. Lead time is currently quoted at about b weeks. The last cost estimate I had was $350,000 per unit, but that is about a year old. The 245fa refrgerant will require a higher cycle temperature - well above 200F. 230F would be preferable. Who is the manufacturer of your absorption unit:' Have you selected one? The one at Chena is a 3 pressure unit and generates about I Otons of refrigeration at a Flow rate of about I00gpm and high side temp of about 150F. So in that respect, it might make sense to put the Purecycle unit before the absorption unit. The question is what is more valuable to you economically - the power or the refrigeration? Bernie Karl at Chena is the distributor of the PureCylce in Alaska, or at least he was up until a year ago. He may be able to get you a more accurate and current quote. His e-mail address is: recycle@polamet.com I hope this helps. Gwen On Mon, Jan 4, 2010 at 11:19 AM, vfdalaura cr�vaidezfisheries.com <vfdalaura@valdezfisheries.com> wrote: Gwen: The review committee has a couple of questions about the organic Rankine cycle/power generation system which I can not answer. 1 am unsure whether the 200 kw units that are in use in Chena Hot Springs is "off the shelf" or whether each unit needs to be engineered given a specific project. Would you please give me some estimate of the approximate engineering costs for the Rankine cycle/power generation portion of the project. Also please take a look at the feasibility of including the organic Rankine cycle/power gereration unit into the ammonia absorption project. If you have comments on which should come upstream the ammonia absorption unit or the Rankine cycle/power portion. I would appreciatae your comments. Thanks Jason Wells ------- Original Message ------- From : vfdalaura(&,valdezfisheries.com[mailto:vfdalauraC�3a valdezf`isheries.comj Sent : 12/22/2009 9:26:13 AM To : gwen.holdmanw�alaska.edu Cc Subject: FW: from Jason Can you help me with these questions? 1. Please provide a detailed budget breakdown of the power generation portion of the design phase 1 /412010 To: Butch White From: Jason Wells Re. Round III Renewable Energy Fund Application #4341 Waste Energy Powered Absorption Refrigeration Unit Butch: The review committee asked two questions regarding the organic Rankine cycle power generation portion of the project. Please provide a detailed budget breakdown of the power generation portion of the design phase: I was unsure whether the generation unit was an off the shelf unit or had to be designed for each project. I contacted Gwen Holdmann (her a mail is attached) as she is well versed on the organic Rankine cycle units. My last contact with Bernie Karl was that the units he used at Chena Hot Springs cost about $1 million each. Gwen has indicated that the off the shelf ORC at 280 Kw is available for $350,000- UnO more engineering is conducted, 1 have used an engineering cost of 15% of the capital costs. depending on whether and "off the shelf" unit is specked or whether a special unit is specked, the engineering costs change. Please provide a Feasibility assessment for the organic Rankine cycle/power generation portion of the project. I have had a feasibility assessment done on the ammonia absorption portion of the project as well as a fatal flaw analysis by Don Erickson at Energy Concepts CO. LLC. The feasibility of the ORC really needs to be addressed by a process engineer. Discussions that I have had with Bernie Karl suggest that the power generation portion is feasible. However, the positioning of the ORC before or after the ammonia absorption unit is a question for someone with more engineering than I posses.