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HomeMy WebLinkAboutAdak Renewable_Diesel Project_AEA Round III/® ALASKA Renewable Energy Fund Round 3 © ENERGY AUTHORITY 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-Ill.html Grant Application GrantApp3.doc Application form in MS Word that includes an outline of Form information required to submit a complete application. Applicants should use the form to assure all information is provided and attach additional information as required. Application Cost Costworksheet3 Summary of Cost information that should be addressed by Worksheet doe applicants in preparing their application. Grant Budget GrantBudget3.d A detailed grant budget that includes a breakdown of costs by Form oc milestone and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget GrantBudgetlnst Instructions for completing the above grant budget form. Form Instructions ructions3.pdf • 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: o Request the information be kept confidential. o Clearly identify the information that is the trade secret or proprietary in their application. o 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 10-015 Application Page 1 of 15 10/7/2009 ®ALASHKA Renewable Energy Fund Grant Application Round 3 SECTION 1 —APPLICANT INFORMATION Name (Name of utility, /PP, or government entity submitting proposal) TDX Adak Generating, LLC Type of Entity: Electric utility Mailing Address Physical Address 4300 B Street, Suite 300, Anchorage, AK 4300 B Street, Suite 300, Anchorage, AK 99503 99503 Telephone Fax Email 907-762-8500 907-278-2332 ngoodman@tdxpower.com 1.1 APPLICANT POINT OF CONTACT Name Title Nicholas Goodman CEO, TDX Power Mailing Address 4300 B Street, Suite 300, Anchorage, AK 99503 Telephone Fax Email 907-762-8500 907-278-2332 ngoodman@tdxpower.com 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) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 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 its board of directors, executive management, or other governing authority. if the applicant is a collaborative grouping, a formal approval from each participant's governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. AEA10-015 Grant Application Page 2 of 15 11/10/2009 ALASM Renewable Energy Fund ,® ENERGY AUTHORITY Grant Application Round 3 SECTION 2 — PROJECT SUMMARY This is intended to be no more than a 1-2 page overview of your project. 2.1 Project Title —(Provide a 4 to 5 word title for your project) Adak Renewable/Diesel Project 2.2 Project Location — Include the physical location of your projectand name(s) of the community or communities that will benefit from your project. Adak, Alaska 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type X Wind Biomass or Biofuels X Hydro, including run of river Transmission of Renewable Energy X Geothermal, including Heat Pumps Small Natural Gas Heat Recovery from existing sources Hydrokinetic Solar Storage of Renewable Other (Describe) 2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply) Reconnaissance Design and Permitting X Feasibility Construction and Commissioning X Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. We propose to accomplish the four phases of a project to integrate one or more renewable energy resources with a properly sized efficient diesel plant in Adak, Alaska. Phase I (Reconnaissance) was funded. Phase II, this proposal, addresses Resource Assessment/Feasibility Analysis/Conceptual Design. Phase III (Final Design and Permitting), will include the final design of the winning resource(s). Phase IV (Construction) will cover the construction portion of this project. AEA10-015 Grant Application Page 3 of 15 11/10/2009 /ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Round 3 2.6 PROJECT BENEFIT Briefly discuss the financial and public benefits that will result from this project, (such as reduced fuel costs, lower energy costs, etc.) Currently the community of Adak is totally reliant on diesel fuel for electricity and for heat. Although the price of diesel was recently gone down, it is climbing and it is likely only a matter of time before the price goes back up. The recent high cost of diesel has convinced TDX Power and the community that developing a renewable energy resource(s) is their best bet for the future. Displacing diesel makes economic sense for the community and for the Alaskan public. Subsidizing the high price of diesel powered heat and power for remote locations when there are ample local renewable resources available is not in the best interest of the local population or the Alaskan public. Adak is in a class 7 wind region; a wind -diesel integrated system could result in great energy savings and a buffer to future fluctuations in fuel costs, reduce CO2 emissions and dependence upon fossil fuels. We do not have numbers yet to answer to determine if the hydro resource will prove to be a better choice. We expect the cost to develop hydro will be cost effective because of the location of several high lakes and presence of 12" iron water pipes in place. The hydro resource would potentially be available 24/7 year round, the O&M for hydra would probably be less than that for a wind project, and most importantly, a hydro project could last for 100 years. As part of the feasibility study an economic model comparing installed capital costs with project savings will be created. Our early assessment of the hydro is for a year around supply of 3MW hours of power. 2.6 PROJECT BUDGET OVERVIEW Briefly discuss the amount of funds needed, the anticipated sources of funds, and the nature and source of other contributions to the project. Phase I (Reconnaissance) was funded for $84.61K and this proposal is for Phase II, which addresses Resource Assessment/Feasibility Analysis/Conceptual Design for $229.5K. The total amount of this project is requested from the Alaska Renewable Energy Fund. Phase III (Final Design and Permitting), will include the final design of the winning resource(s) and Phase IV (Construction) will cost an estimated $2-4M. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project's total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $229,500 2.7.2 Other Funds to be provided (Project match) $0 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $229,500 Project Costs& Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully AEA10-015 Grant Application Page 4 of 15 11/10/2009 1©ALASM Renewable Energy Fund Grant Application Round 3 operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet $2-4M including estimates through construction) 2.7.5 Estimated Direct Financial Benefit (Savings) $ NA 2.7.6 Other Public Benefit (If you can calculate the benefit in $ NA terms of dollars please provide that number here and explain how you calculated that number in your application (Section 5.) Currently Adak uses diesel fuel to generate electricity and heat homes. The diesel plant on island is very old and grossly oversized for the current community; a new efficient diesel plant will significantly reduce the amount of diesel used. A new diesel plant is needed which includes with a generator capable of carrying the entire community load while also being able to run efficiently at low load once the hydro or wind resource comes on line. Once online, we envision the integrated hydro/wind/diesel system to provide efficient, low priced and dependable energy, including heat, for homes and businesses and the fish processing plant. 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. Martina Dabo, Operations Manager for TDX Power, will be the Project Manager. Ms. Dabo's resume is attached to this application. AEA10-015 Grant Application Page 5 of 15 11/10/2009 /ALAS KA Renewable Energy Fund 411111D ENERGY AUTHORITY Grant Application Round 3 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.) We will start this project immediately upon the receipt of funds. A met tower from the AEA was erected in Adak in 2006 by the City of Adak. However, the data logger was never installed — so no data was collected. The tower is now down and stored on the island in a warehouse; it is in need of repair (base plate) and re -equipping with all the monitoring devices. TDX Power, dba TDX Adak Generating, LLC, will install the tower and new monitoring equipment and start the process of data collection immediately upon receipt of funds. The feasibility study for the hydro will be completed shortly after the reconnaissance phase, but the wind resource feasibility study will need one year worth of wind data collection and an analysis of that data will take place soon thereafter. Which resource(s) makes it to the conceptual design and final design phase will be dependent upon the results of the feasibility studies. The table below illustrates our proposed schedule which assumes a start date of January 2010. IF 2010 4IIE- 2011 4I TASKS PHASE I 2010-2011 J A S C N D J F J J S 1. Reconnaissance of Potential Sites x a. Evaluate resource availability x b. Contact IJSFWS, FAA, SHPO, DOD re: potential site approval issues x c. Determine site ownership issues, if any x TASKS PHASE II 2. Monitor Selected Wind Site a. Met tower and data collection x x X1 X1 x x x x x X11 b. Avian monitoring x X1 X1 x x x x x x x x x c. Document community sentiment on sound/site issues x 3. Wind Resource Report x 4. Feasibility Study Geothermal x x x Hydro x x x Wind x 5. Conceptual Design x x x x x x x x TASKS PHASE III 5. Final Design x x 7. Permitting x x x TASKS PHASE IV 9. Construction —x "x 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.) AEA10-015 Grant Application Page 6 of 15 11/10/2009 /ALASKA Renewable Energy Fund GII-) ENERGY AUTHORITY Grant Application Round 3 Feasibility studies for the geothermal and hydro renewable resources should be complete by October 2011. The wind feasibility study should be completed in June 2011. At that time we will determine which resource(s) is/are most economically advantageous to develop. The Conceptual design and Final design will soon follow that decision, and we expect to complete the Final Design and Permitting by November of 2011. 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. TDX Power will primarily use internal personnel to manage and carry out the proposed 4 phase project scope. Specialists will be contracted as needed. Resumes of key personnel are attached to this application. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TDX Power will maintain close contact with TDX Adak Generating employees on the island and provide on -site management assistance as needed. TDX Power will provide regular detailed reports to the AEA on the progress of this project in quarterly reports as required. 3.6 Project Risk Discuss potential problems and how you would address them. The number one problem this project will face is maritime weather and its remote location. TDX Power's roots in the Aleutian and Pribilof Islands prepare them well for dealing with both these issues. Unlike most Aleutian communities Adak has jet service, which helps somewhat with getting a crew and supplies to the island. SECTION 4 —PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. • 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. AEA10-015 Grant Application Page 7 of 15 11/10/2009 /® ALASKA Renewable Energy Fund GER) ENERGY AUTHORITY Grant Application Round 3 Being an island, Adak has potential for wave or tidal power. But this technology is not yet commercially available. There is a hydro resource near the community which holds great promise. Hydro is a very good possibility for this community as a year round economical energy resource. The primary lake being considered would provide a head of 700-800 feet, an onsite and functional high pressure 12 inch diameter iron penstock from the lake to near sea level and in excess of 2,000 GPM which could provide 3MW/hr. Several alternative lakes are available for tapping, one of which is also a high lake with a 12" iron pipe. There are known hot springs on Adak Island, but at this point the only obvious geothermal anomalies are in the remote areas of the island farthest from the community. More detailed exploration is required to determine if there are developable resources closer to the community. An abundance of reliable anecdotal information declares a more than adequate wind resource in the area. The sign above the airport door proclaims Adak "The Birthplace of the Wind". The Wind Resource Map of Alaska identifies Adak as a Class 7 resource. Wind -diesel hybrid power is mature technology that is growing rapidly in rural Alaska. But in the case of wind, it is possible to have too much of a good thing. Only site specific monitoring will determine the value of wind to Adak. 4.2 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. There are 6 ancient Cooper-Bessymer generators that are grossly oversized for the current load and 3 CAT 3516 generators that are beyond repair. 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. Currently Adak uses diesel fuel to generate electricity and heat homes. As mentioned earlier, the diesel plant on island is very old and grossly oversized for the current community. A new efficient diesel plant will significantly reduce the amount of diesel currently required to keep the lights on in Adak. A new diesel plant is needed which includes with a generator capable of carrying the entire community load while also being able to run efficiently at low load once the hydro or wind resource comes on line. There are significant liquid fuel storage facilities on Adak Island. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The former utility was not on PCE, didn't bill customers regularly and records of fuel use compared to kWh sold are scarce to nonexistent. We can safely assume that this project will have a positive effect on customers who are used to brownouts, blackouts and going so far as to AEA10-015 Grant Application Page 8 of 15 11/10/2009 ,®ALASM Renewable Energy Fund ® ENEROYAUTHORITV Grant Application Round 3 donate 5 gallon cans of diesel to keep the generators running. The people of Adak are looking forward to reliable power and a utility with the vision to integrate a renewable resource and reduce diesel consumption. No one can predict what the price of diesel will be over the next 20 years. We recently saw oil at nearly $150/barrel. Now it is down to $60-70/barrel. How long will this lull in the energy crisis last? That is frightening in itself — not knowing which end of the price spectrum you'll face from year to year. Stabilizing and/or lowering the cost of electrifying and heating the community will have a positive effect on Adak. Residents deserve and sustainable economic development requires reliable reasonable and stable energy prices. One of those developments on the horizon is the fish processing which was recently acquired by a reputable company. Adak looks forward to working with the fish plant and providing them with renewably produced energy. 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 Our first priority is to install a Caterpillar 1300 kW 1200 rpm 3512C — a generator with a 60% load variation with excellent fuel economy. At this early stage of the game the only barriers we can foresee is that the wind resource may not be at the most convenient location or that turbulence issues may complicate development of the resource. However, we are very optimistic the hydro resource will be adequate to meet the community's needs for power. USFWS has been contacted and verified that there are no threatened or endangered eiders for concern, but there are eagles in the area. The community partners do not feel the eagle population frequents the areas being considered for development, but careful site selection for the wind turbine and subsequent monitoring will be required. There are no such concerns for developing hydro in Adak. The basic integration concept at this time is to develop a high penetration wind -diesel system and/or hydro that will use thermal nodes installed in community facilities as dump loads for excess electricity. These thermal nodes will heat water to supplement hot water from a diesel fired boiler system. The power will be delivered via the existing distribution lines in Adak. AEA10-015 Grant Application Page 9 of 15 11/10/2009 ,®©ALASKA Renewable Energy Fund ENERGY AUTHORITY Grant Application Round 3 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. The majority of land in Adak is owned by The Aleut Corporation, and the rest is owned by the City of Adak. Both entities are more than happy to make land available for whatever renewable resource(s) will be developed. 4.3.3 Permits 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 barriers The following agencies will be contacted for preliminary approval prior to final site selection and met tower installation. Permits will be requested as appropriate upon completion of the conceptual design. FAA Coastal Zone Management SHPO Department of Defense USFWS When contacted about the anemometer installation, LISFWS endangered species biologist Ellen Lance said there was no need for concern on Adak. The military has installed far more hazards for birds on Adak Island than any single tower could ever create. Avian studies will resolve any bird issues with regard to placement of turbines. 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 Adak is a former military installation. Environmental considerations have been violated multiple times since WWII. A new diesel plant and renewable energy resource development will improve environmental conditions on Adak. We do not foresee any problems with the listed environmental concerns, but will address all issues in our feasibility study. 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 re uested and AEA10-015 Grant Application Page 10 of 15 11/10/2009 /imp ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application Round 3 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 If monitoring proves the wind resource favorable for development - and the economics of wind are more cost effective than the hydro resource - we are probably looking at a cost of $2-4M for design, permitting, and construction — at today's prices. That is in addition to the cost of $85,835 for the cost of the initial phase. We are not prepared to provide the cost for developing the hydroelectric option, but significant cost savings may be realized from use of the existing penstock and developing hydro. We request $229,500 from the Renewable Energy Fund with this application. 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.) Applicant will fund O&M for new facilities with operating revenue. No funds are requested at this time. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range The electric utility in Adak has experienced recent turmoil. TDX Power has purchased the utility and applied to the RCA for approval of a rate of $.70/kWh. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. We based the cost worksheet numbers on costs we have experienced from similar projects in the region. AEA10-015 Grant Application Page 11 of 15 11/10/2009 ,&' ALASKA Renewable Energy Fund © ENERGY AUTHORITY Grant Application Round 3 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 According to the best information we have at this time (AEA Draft Regional Wind Study), a wind - diesel project in Adak's Class 7 Resource could displace 1,044,820 gallons of diesel over a 20 year lifespan. For wind only, we estimate production of 810,000 kWhs. Significantly higher energy production and savings could be realized if the hydro system is also integrated into the system. There are no tax credits available for this project. The sale of green tags at today's value of $4.50/MW could bring in $3055.50 annually. It appears that 547 tons of COz could be avoided with the addition of wind energy in Adak. In and of itself that is not much, but add 10 or so projects like this — which Alaska surely will in the near future — and the number becomes significant. Adak is surrounded by a productive fishing ground. Preserving and nurturing this community and the fishing industry it can support benefits all Alaskans. 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 • Commitment to reporting the savings and benefits Adak is a former military base now owned by the Aleut Corporation. It is located on Adak Island near the end of Alaska's Aleutian Island Chain. Presently there are approximately 75 residents at the former base where a population of 6,000 military personnel and their families were once housed. The power plant in Adak was designed and constructed in 1964 for a 6,000 person military base. The diesel plant is grossly oversized for the current population of 75, in sorry shape, and is extremely inefficient. The site was turned over to The Aleut Corporation JAC) by the US Navy in 1999. The location is in good fishing grounds and has an established processing plant; the community has a promising future especially if the energy issue can be resolved. The RCA recently ruled that the City of Adak was not capable of managing or operating the AEA10-015 Grant Application Page 12 of 15 11/10/2009 ®ALASRGY HKA Renewable Energy Fund Grant Application Round 3 electric utility. TDX Power bought the utility while the people of Adak were under emergency conditions, and TDX Adak Generating, LLC will complete this project using personnel from its parent company, TDX Power. Applicant will fund O&M for new facilities with operating revenue. No funds are requested for O&M at this time. 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. We will start this project immediately upon the receipt of funds. A met tower from the AEA was erected in Adak in 2006 by the City of Adak. However, the data logger was never installed — so no data was collected. The tower is now down and stored on the island in a warehouse; it is in need of repair (base plate) and re -equipping with all the monitoring devices. TDX Power, dba TDX Adak Generating, LLC, will install the tower and new monitoring equipment and start the process of data collection immediately upon receipt of funds. The avian study will go into the field a few months after receipt of funds for Phase II. The feasibility study for the hydro will be completed shortly after the reconnaissance phase, but the wind resource feasibility study one year worth of wind data collection and an analysis of that data before it can be completed. Which resource(s) makes it to the conceptual design and final design phase will be dependent upon the results of the feasibility studies. The table below illustrates our proposed schedule which assumes a start date of January 2010. SECTION 8— LOCAL SUPORT Discuss what local support or possibleoppositionthere may be regarding your project. Include letters of support from the community that would benefit from this project. The former utility was not on PCE, didn't bill customers regularly and records of fuel use compared to kWh sold are scarce to nonexistent. We can safely assume that this project will have a positive effect on customers who are used to brownouts, blackouts and going so far as to donate 5 gallon cans of diesel to keep the generators running. The people of Adak are looking forward to reliable power and a utility with the vision to integrate a renewable resource and reduce diesel consumption. Stabilizing and/or lowering the cost of electrifying and heating the community will have a positive effect on Adak. Residents deserve and sustainable economic development requires reliable reasonable and stable energy prices. One of those developments on the horizon is the fish processing which was recently acquired by a reputable company. Adak looks forward to workinc with the fish plant and providing them with renewably produced energy. A letter of support from the Adak City Administrator is forthcoming. AEA10-015 Grant Application Page 13 of 15 11/10/2009 ALASKA 11C) Renewable Energy Fund doiip /GOLD ENERGY AUTHORITY Grant Application Round 3 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. The former utility at Adak was not on PCE, didn't bill customers regularly and records of fuel use compared to kWh sold are scarce to nonexistent. The RCA ruled that the City of Adak was not capable of managing or operating the electric utility. TDX Power decided to 'step up to bat' and bought the utility while the people of Adak were under emergency conditions. TDX Adak Generating, LLC has committed their funds and credibility and will complete this project using personnel from its parent company, TDX Power. Furthermore, TDX will fund O&M for new facilities with operating revenue. The people of Adak are looking forward to reliable power and a utility with the vision to integrate a renewable resource and reduce diesel consumption. AEA10-015 Grant Application Page 14 of 15 11/10/2009 /®ALASM Renewable Energy Fund Grant Application Round 3 SECTION 9 — ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A. 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 CD per RFA Section 1.6. F. 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. F. 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 Nicholas Goodman Signature Title CEO, TDX Power Date 11/10/2009 AEA10-015 Grant Application Page 15 of 15 11/10/2009 /©ALASKA Renewable Energy Fund Round 3 ENERGYALTHORITY 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. Hydro approx. 3MWhrs., wind class 7 region Unit depends on project type (e.g. windspeed, hydropower output, biomasss 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/boilers/other 6 Cooper-Bessymer and 3 CAT 3516 generators ii. Rated capacity of generators/boilers/other Each Cooper-Bessymer is rated at 1200kW iii. Generator/boilers/other type 6 Cooper-Bessymer and 3 CAT 3516 generators iv. Age of generators/boilers/other 1964 for the 6 Cooper-Bessymer generators v. Efficiency of generators/boilers/other Very low! b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor NA ii. Annual O&M cost for non -labor NA c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) is Electricity [kWh] 2,603,294 ii. fuel usage Diesel [gal] 273,526 Other none iii. Peak Load 460kW iv. Average Load NA v. Minimum Load NA vi. Efficiency 9.51 Gals/kwhs vii. Future trends Increase due to improved fish plant d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other m m m 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. RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09 /©ALASM Renewable Energy Fund Round 3 ® ENERGYAUTHORITY Project Cost/Benefit Worksheet 3. Proposed System Design Capacity and Fuel Usage (Include any projections for continued use of non-renewable fuels) a) Proposed renewable capacity wind class 6, Vestas V27-225kW rated capacity (Wind, Hydro, Biomass, other) [kWh or MMBtu/hr] b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] For wind only: 810,000 ii. Heat [MMBtu] NA c) Proposed Annual fuel Usage (fill in as applicable) i. Propane [gal or MMBtu] none ii. Coal [tons or MMBtu] none iii. Wood [cords, green tons, dry tons] none iv. Other a) Total capital cost of new system Approx. $2-4M depending upon use of wind and/or hydro b) Development cost NA a) Annual O&M cost of new system NA d) Annual fuel cost NA 6. Project Benefits a) Amount of fuel displaced for i. Electricity For wind only:—85,260 gal saved annually at powerhouse efficiency of 9.5 gal/kwh, 810,000 kwh/year, capacity factor 41.1 % ii. Heat iii. Transportation b) Price of displaced fuel—$400K/yr c) Other economic benefits Support operating the fish processing plant. d) Amount of Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale NA 7. Project Analysis a) Basic Economic Analysis RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09 /� ALASKA Renewable Energy Fund Round 3 000 ENERGY AUTHORITY project Cost/Benefit Worksheet Project benefit/cost ratio Payback NA NA RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 0 n T y O LL d 3 m C co A J. 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Sincerely, Nicholas Goodman TDX ADAK GENERATING, LLC P.O. Box 2011 • Adak, Alaska 99546 (907) 5924500 Fax:(907) 5924262 City Manager. John Schroeder Email. scsn-g unet 907-250-4490 Connie Fredenberg Community Relations Manager TDX Power 4300 B Street, Suite 402 Anchorage, AK 99503 Re: Adak hydroelectric conceptual design proposal to the Rural Energy Fund Round III Dear Connie, At the request of Mayor Swetzoff and the Adak City Council, I wish to offer our wholehearted support for the Hydro plant conceptual design proposal. At the present time we are suffering severe economic constraints that are effecting every member of the Adak community due to the high price of electrical power in Adak. Energy costs are robbing the community of all of their savings and credit and stymieing any hope of growth_ The City will make available any land required for the plant as well as any easements required for any distribution upgrades. Please let me know of any other assistance we can offer. Fnroeder Adak City Manager TDX Nick Goodman — Project Manager Mr. Goodman has over 10 years experience in the electric power industry, with special emphasis on renewable energy development. As CEO of TDX Power, Mr. Goodman has been instrumental in developing several projects which successfully bring alternative energy solutions to rural Alaskan communities, decreasing their dependency on diesel based power and increasing their savings through the use of wind diesel, hydroelectric and wind power plants. He excels in putting together top project management teams to implement the latest in distributed energy technologies and successfully implementing those projects in remote, harsh environments. At Tin City Long Range Radar Station, Mr. Goodman assisted the US Air Force in developing a conceptual design for the first HASP high penetration wind diesel power generation facility. He led the successful competitive bidding effort for EPC contract to develop and operate this critical, must run hybrid renewable plant, and worked successfully with USAF to develop repetitive design for multiple follow on wind diesel projects. He has also been instrumental in developing Alaska s largest hydro -electrical power project, as well as Alaska's largest wind power project. Clint (Jito) Coleman — Director of Engineering, Renewable Energy Clint aito) Coleman joined TDX Power in 2009 and has been active in the distributed energy business for over 35 years. Sole owner or co -inventor on five US Patents in wind turbines, Mr. Coleman has diverse experience in all phases of renewable energy systems' design, development and deployment across a variety of environments, including remote installations in the harsh Alaskan arctic and Antarctica. IVir. Coleman is currently engaged in product and project development as well as innovative renewable system applications incorporating the latest SmartGrid and MicroGrid concepts. As Chief Engineer and then President of Northern Power Systems from 1980-2005, Mr. Coleman was instrumental in establishing the company's reputation as a world leader in the remote power arena, as well as one of the leading companies supplying the distributed generation marketplace. At Northern Power, Mr. Coleman was also instrumental in the controls and integration of Alaska's first high penetration wind diesel project with TDX on St. Paul island. Mr. Coleman has been intimately involved in the development, design, implementation and operations of numerous renewable and hybrid electrical power systems for all branches of the military. He is currently leading the engineering efforts at Tin City, Alaska and leading the design and deployment for two remote ACMIs power systems in Alaska and other ACMI and TACTS sites in the US. Northern Power Systems, under Mr. Coleman s direction, has been the sole source to the Air Force for numerous sites in Antarctica including the Nuclear Test Ban Monitoring sites in the Dry Valleys and a plus runway lighting, microwave power systems and the Black Island satellite communication hub. He also led Northern in the development of advanced wind diesel systems at numerous sites around the world and coordinated with research and product development activities supported by National Renewable Energy Lab and Department Of Energy. Martina Dabo — Design Manager (Electrical), Project Manager Ms. Dabo has a Master of Science degree with Distinction in Renewable Energy Technologies from the University of Ulster, UK. She has been a Project Manager for over ten years, and served as the Wind Program Manager for the State of Alaska for two years. Ms. Dabo has been instrumental in developing a comprehensive wind diesel/hybrid power program for the State of Alaska, partnering with the U.S. Department of Energy, the National Renewable Energy Lab, the University of Alaska and utility companies to design wind diesel farms, write policies to control the RFP process for bidding on alternative energy projects, and training engineers across the country on designing and maintaining wind diesel power plants. She presented and published numerous papers on wind - diesel hybrid systems nationally and abroad and developed a wind -diesel system study for the entire state of Alaska to determine feasibility and viability of wind -diesel projects throughout rural Alaska. Currently Ms. Dabo manages multiple projects for TDX Power with budgets up to $4M, and routinely consults with senior management on bidding new projects for the company. She has also established a new division within TDX Power known as the Village Power Group. From conception to design, Ms. Dabo has spearheaded this division, streamlining roles and responsibilities of utilities across the state. This will not only allow TDX Power to operate more efficiently and cost-effectively, but will also enable TDX Power to position itself as a world leader in wind diesel energy programs, ultimately expanding their reach well beyond AIaska's borders into hybrid energy programs throughout the world over the coming decades. Ms. Dabo is a successful project manager, technical consultant and powerful ally in the wind diesel industry because of her unique blend of technical expertise and senior level management skills which allow her to manage all aspects of a project's lifecycle, from conception to completion.