HomeMy WebLinkAboutSt. Paul Wind Diesel Project®ALASM
Renewable Energy Fund
Grant Application Round 3
SECTION 1 —APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
TDX Corporation
Type of Entity:
IPP
Mailing Address
Physical Address
4300 B. Street, Ste. 402, Anchorage, AK, 99503
4300 B. Street, Ste. 402, Anchorage, AK, 99503
Telephone
Fax
Email
907-762-8500
907-278-2312
ronp@tdxnet.com
1.1 APPLICANT POINT OF CONTACT
Name
Title
Ron Philemonoff
CEO, TDX Corp.
Mailing Address
4300 B. Street, Anchorage, AK, 99503
Telephone
Fax
Email
907-762.8450
907-278-2332
ronp@tdxnet.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)
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 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.
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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 Sword title for your project)
St. Paul Island Wind -Diesel Project
2.2 Project Location —
Include the physical location of your project and name(s) of the community or communities that will
benefit from your project.
The community of St. Paul is located on St. Paul Island in the Pribilof Islands. The community
is located on a narrow peninsula on the southern tip of the island, which is the largest of five
islands in the Pribilofs. It lies 47 miles north of St. George Island, 240 miles north of the
Aleutian Islands, 300 miles west of the Alaska mainland, and 750 air miles west of Anchorage.
The area encompasses 40.3 sq. miles of land and 255.2 sq. miles of water. St. Paul's population
of about 450 residents is predominantly Unangan.
2.3 PROJECT TYPE
Put X in boxes as appropriate
2.31 Renewable Resource Type
X
Wind
Biomass or Biofuels
Hydro, 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)
2.3.2 Proposed Grant Funded Phase(s) for this Request (Check all that apply)
Reconnaissance
X
Design and Permitting
Feasibility
X
Construction and Commissioning
X
Conceptual Design
2.4 PROJECT DESCRIPTION
Provide a brief one paragraph description of your proposed project.
TDX Power will assess the existing diesel plant owned by the City of St. Paul electric utility.
TDX will design and engineer the necessary modifications so that this plant will efficiently
integrate wind energy from the POSS Camp Wind Farm. TDX will design and engineer
modifications to the controls at the POSS Camp Wind Farm in order to sell electrons to the City
of St. Paul electric utility. TDX Power will assess, engineer, and construct all required
distribution line additions and upgrades.
Acceptance of any funding from this grant is contingent upon a power purchase agreement
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between TDX Power and the City of St. Paul. In the event TDX cannot secure a PPA with the
City of St. Paul, and agree on the TDX conceptual design for the integration, no project funds
will be reauested.
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.)
Adding wind power from the 3 wind turbines at the POSS Camp to the City's diesel powered
grid system will reduce the amount of diesel consumed by the city's power plant. This will save
fuel costs to the utility and could result in lower rates for users if fuel costs remain the same. It
will prevent higher rates if fuel prices rise.
The public will benefit economically and, no less valuable, the spirit of cooperation between the
City and TDX Corporation will heal a long festering wound within the community. There have
been many years of local discord. It is time to work together and build a sustainable community
for these challenging times ahead.
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
The proposed budget for the remaining scope of work to complete the project is $2.1 million,
which includes costs for design, procurement and installation. TDX will contract the majority of
the work to its subsidiary, TDX Power, but will provide local labor to support the installation.
TDX requests $1.9 million for this project and proposes to provide $200,000 in matching funds
for the project. In addition, TDX will contribute two Vestas V27 wind turbines to the project.
These turbines are already installed and functional. The cost to purchase and erect these two
turbines was roughly $1.5 million. TDX received a grant from US DOE of approximately
$650,000 in support of the $1.5 million budget.
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 FundsRequested in this application.
$1,900,000.00
2.7.2 Other Funds to be provided (Project match)
$1,700,000.00
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2)
$3,600,000.00
Project Costs & Benefits
(Summaryof 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
$2,100,000
including estimates through construction)
2.7.5 Estimated Direct financial Benefit (Savings)
$570,000.00
2.7.6 Other Public Benefit (If you can calculate the benefit in
$
terms of dollars please provide that number here and
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explain how you calculated that number in your application
(Section 5.)
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, TDX Village Power Group Program Manager, will manage this project.
Martina's resume and references are attached.
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 have made the first step in the process of negotiating a PPA with the City of St. Paul. Once
that agreement is completed, we can begin scheduling the project. If the negotiations go well,
the technical work could conceivably be completed the summer of 2010.
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.)
1. Negotiate power purchase agreement between city of St. Paul and TDX.
2. Assess, design, engineer integration with city power plant and POSS Camp facilities.
3. Procure integration equipment.
4. Design and procure distribution line upgrades and additions
5. Installation - Tie existing wind turbines into city electric grid
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.
Clint "Jito" Coleman, Director of Engineering at TDX Power, previously led the design team
from Northern Power that designed the original POSS Camp hybrid power system. His
familiarity with the original system qualifies him as the best choice for designing the
modifications and upgrades required for this project. Jito will also lead the team to design and
engineer the modifications to the City of St. Paul's diesel plant, which will be similar to work
TDX is doing for the Air Force and at Nikolski, Sand Point, and St. George.
Jito will be supported by Steve Hoskins, Controls Engineer for TDX Power. Formerly with
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Northern Power, Steve is widely known as a specialist in wind diesel controls design and
integration. In addition to Steve, existing engineering and technical staff from TDX Power's
Village Power Group will round out the project team.
Equipment for the power plant upgrades are limited to all inclusive controls and an efficient low
load diesel engine generator set. The control package will automate the primary diesel engine
generator sets at the City facility and will be designed by TDX power and then assembled with
parts and pieces secured through a competitive procurement.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
TDX Power will provide the regular detailed reports to the AEA on the progress of this project
as required by the grant.
3.6 Project Risk
Discuss potential problems and how you would address them.
There are no technical issues that pose a risk to this project. The technology is well understood
and proven. The risk in this project lies squarely upon the personalities of two community
organizations. The City of St. Paul owns the electric utility. TDX Corporation owns the POSS
Camp Wind Farm. How to use that wind power to benefit the people of St. Paul has been a bone
of contention between the City and TDX for 10 years. The issue has continued endlessly, to the
detriment of the community.
At this time, and with this proposal, TDX Corporation is ready to find common ground and move
forward. It is with humility and good will that TDX intends to next approach the City with this
funding identified to upgrade the power plant. Then TDX proposes to sit down at the table with
the City and negotiate a power purchase agreement for POSS Camp Wind Farm electrons. An
agreement that will benefit the City's utility, TDX, and most importantly, the community of St.
Paul. TDXwill request the USDOE funding held in limbo for 6 years be used to help negotiate
the PPA.
There was not enough time to undo 10 years of bad relations prior to the submission of this
proposal. TDX has yet to approach the City with this offer, but is optimistic that the City will
enter into a Power Purchase Agreement with TDX if the grant funding is available to complete
the project. If this is not the case, TDX will not accept the award.
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.
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4.1 Proposed Energy Resource
Describe the potential extent/amount 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.
St. Paul Island has a documented Class 7 "Outstanding/Excellent" wind resource. According to an Alaska
Center for Energy and Power (ACEP) study, 83% of the wind resource on St. Paul Island is within a
suitable wind speed range to generate power (between 4-25m/s) and 2,040,000 kWh is a conservative
estimate of the power that could be generated annually by the three (3) 225 kW wind turbines.
# of
V27
kWh/yr.
from
Wind E
%
RE
*COE
$
Fuel
@ $3/gal.
$
Fuel
Costs
Saved
$
O&M
Costs
$
$
Saved
Excess
Wind E
kWh/yr.
Total
Utility
Savings
$
TDX
Price
Of
Power
0
0
0
.275
1,422,892
0
337,576
0
0
0
NA
1
833,189
13%
.248
1.257,765
165,127
328,663
8,913
0
174,040
0.16
2
1.666.378
25%
.221
1.094,208
328,684
320,333
17,243
16,595
345,927
0.16
3
2,499,587
37%
.199
958,988
463,904
312,879
24,6971
174,007
488,601
0.15
Diesel system retrofits similar to what would be required on St. Paul have been completed successfully in
other Alaskan utilities. Adding wind power to diesel systems unequivocally reduces the amount of diesel
fuel needed to provide the same amount of power. There is room to expand the POSS Camp Wind Farm.
And developing a second wind farm, as proposed by the City in their application last year, is another
option to increase wind power available to the community.
TDX has more experience than anyone in North America with high penetration wind -diesel. Ceramic
heaters and hot water boilers could be displacing diesel for heat in residential and commercial buildings.
Electric vehicle charging stations could be displacing fuel for transportation. TDX is already deploying
electric vehicles on St. Paul Island, and plans to expand this program.
This, however, is the first step toward ultra high penetration wind for all of St. Paul. Once we have
achieved medium penetration with 2 or 3 of the wind turbines running on the grid to everyone's comfort
and satisfaction, we can add more wind turbines for higher penetration.
Wind is not the only alternative energy resource on the island, but it is certainly "the most likely to
succeed". There are stories of a "hot spot" on the tundra outside of town. A single spot where the snow
always melts right away. There is no hot springs, just warm tundra. No research has been done to date on
this resource, and it is likely too small for commercial exploitation. Possibilities could exist with ocean
energy, but such technologies are not yet commercially available.
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.
The city of St. Paul electric utility has six generators rated at 3,470 kW. They are 15-20 year old Cat
3406, 3412, & 3512 Diesel Generators, with efficiencies of 35 to 38% plus the waste heat usage. The
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annual operations and maintenance costs for labor and non -labor are $180,740 and $127,680 respectively.
The annual electricity production is 6,156,549 kWh and the annual diesel fuel usage is 454,069 gallons.
The POSS Camp Wind Farm has three Vestas V27 wind turbines rated at 225 kW each and two Volvo
150kW diesel gen-sets. This hybrid system has been operating for 10 years with one of the wind turbines
in service. The other two wind turbines were installed summer 2007. Once integrated, the three wind
turbines will have the capacity to exceed all the power needs for the POSS Camp.
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.
The City of St. Paul operates the community electric utility exclusively on diesel fuel. Trident Seafoods
operates a large processing facility on its own diesel power plant. TDX Corporation operates the POSS
Camp at the airport on St. Paul with its own high penetration wind -diesel power plant. TDX added two
more wind turbines at the POSS Camp in 2007, tripling the wind power available. TDX is testing plug-in
EVs and considering strategically placed ceramic heaters to add more load. Even then, there will be
excess power.
Below is applicable text from this same section of the City of St. Paul's proposal to the Renewable
Energy Fund in 2008:
The existing utility generation is entirely from diesel generation.... A new diesel engine and switchgear
would be added to the existing 4,160v switchgear bus and controls installed to provide automatic start up
of back up generation. The impact to the existing infrastructure will be limited.
Current operation of the power plant is manual with generators added and removed as load dictates.
Future operation would require switching to automated controls to allow for full use of the renewable
energy resource economically. Operators would be trained in the use of the new controls during
construction and start up of the project. A 5-year operation and maintenance contract with the wind
turbine supplied would be utilized to further train operators in operating and maintaining the new
equipment.
System would be designed and sized for future expansion for increased use of'the renewable resource.
TDX proposes to assist the City carry out the above tasks. We propose to assess, design, and engineer the
upgrade to their power plant. TDX proposes to train the operators from the POSS Camp and the City
power plant. TDX proposes to do all that is necessary at the POSS Camp end to connect the wind farm
with the City grid. And TDX proposes to sit down at the table with the City and work side by side to
negotiate an agreement for the sale of POSS Camp Wind Farm electricity agreeable to both entities and
for the good of all on St. Paul.
In the fall of 2008, the community experienced a fuel crisis, having to ration gasoline when the fuel barge
could not get to the island due to ice. As with many rural Alaskan communities, but even more so in this
area, the remote location and extremely challenging logistics make reliance on imported fuels a constant
game of Russian Roulette - an increasingly expensive game where a bad ending always lurks.
Local politics has deprived Pribilovians the benefit of their most abundant natural resource for ten years.
TDX offers a vision and the wherewithal to move forward jointly with the City of St. Paul.
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4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The St. Paul electric utility uses 454,069 gallons of diesel annually to produce 6,156,549 kWh. We
estimate dedicating two V27 wind turbines to the City would save them 190,000 gallons of fuel annually.
At $3 per gallon that comes to $570,000.
With the addition of wind energy to the mix, the City's electric utility could expand its clientele.
Currently, Trident does not buy electricity from the City because they can produce their own power for
less. With the integration of wind energy the cost of power could become more attractive to Trident. The
value of adding wind energy to the Trident facility is worth more than the face value of the electrons,
though. Sustainability and renewable energy are becoming increasingly marketable aspects of
manufacturing. The ability to promote products made with green energy is an incentive for Trident.
Adding Trident, a large commercial load, to the City grid would spread the cost around more and make
energy more affordable for every user on the island's grid.
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
Currently there are 3 Vestas V-27 turbines at POSS Camp, one is ten years old and the other two
are recently refurbished units. Each V27 is expected to produce 830,000 kwh per year in the
site's 7 m/s wind regime. Power system simulation modeling indicates that 100% of the energy
from all two turbines could be utilized by the City of St. Paul in a medium high penetration
control scheme. Turbine capacity factor is predicted at 42%.
The hybrid power system integration scheme envisions using two of the V27 turbines connected
to the city power 3 phase distribution grid which is already in close proximity to POSS Camp.
The City's diesel plant will be retrofitted with controls for automatic dispatch of diesel generators
based upon City load demands and available wind energy in a medium penetration architecture.
In the rare event wind power exceeds the power system load requirement, the excess power will
automatically be routed to the POSS Camp heating system.
In this configuration, at least one engine will be operating at the City powerhouse at all times.
This configuration will be safe, reliable and provide the maximum amount of fuel savings from
the current wind turbines.
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Experience from this hybrid facility can create the confidence and experience to look into
expanded wind energy utilization in the future, with the potential for wind only operations,
electric heating and electric vehicle charging to continue moving the island energy system toward
a greener, cleaner, cheaper or more sustainable configuration.
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 no land ownership issues. TDX owns the POSS Camp, and the City owns the electric
utility and distribution system.
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 wind turbines have already been permitted. The City's distribution system has been in place
for many years. There are no permitting issues for this project.
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
There are no environmental issues. An environmental assessment is complete for the POSS
Camp wind turbines, and was approved by US DOE. Upgrades to the existing distribution line
would not cause any environmental impacts.
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.
4.4.1Project Development Cost
Provide detailed project cost information based on your current knowledge and understanding of
the project. Cost information should include the following:
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• 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
A complete medium high penetration wind diesel system for the St. Paul utility is valued at $3.6
million (capital costs). TDX has already installed turbines, consuming $1.5 million of this budget.
The cost for the remaining phase to integrate the turbines is $2.1 million. Of this $2.1 million,
TDX will provide matching funds of $200,000 (combination of cash and in kind labor during
construction). Development of this project has occurred in many phases over many years and it is
not possible to calculate the total development budget.
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
The costs will not change significantly because the City will continue to maintain their utility and
TDX will maintain the POSS Camp.
Right now the City calculates its non fuel O&M to cost $337,576/year. The only change the City
might experience is lower run time on their engine generator sets which would reduce O&M
costs.
TDX spends approximately $90,000 on O&M/year at this time, and expects this number to grow
to $180,000 once the project is complete and all wind turbines are fully consumed. TDX expects
to offset the O&M of their wind farm by selling the green tags. This will help keep the cost of
power sold as low as possible. At this time, TDX has proposed a rate of 12.5 cents per kwh for
the sale of electric energy from the turbines at the POSS camp to the municipal utility.
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
• Proposed rate of return from grant -funded project
TDX Power will negotiate an agreement with the City of St. Paul. TDX estimates the price to be
12.5 cents per kWh, and will offer to maintain cost based rates with no return or profit earned on
the sale of electricity.
4.4.4 Project 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 submit it as an attachment. Document any conditions or
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sources your
are based on here.
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
We estimate the amount of wind power that could be sold annually by TDX to St. Paul's electric
utility to be 833,189 kWh per turbine. Estimated annual revenue to TDX Power, assuming the
City purchases wind at 12.5 cents/kWh, is approximately $220,000.
Selling green tags is an additional benefit of getting the other two wind turbines online. Money
from the green tags could mitigate any additional O&M, depreciation and insurance costs to
TDX, keeping the power purchase price lower for the City.
Every person in the community would benefit from the City's utility using less diesel fuel. People
will see the turbines spinning and be able to relate that to the electricity in their homes. They will
experience less anxiety in the winter months, as they won't be solely relying on diesel. Exposing
communities to renewable energy technology increases members' opportunity for job placement
throughout the state, since scope, range, and number projects will only increase in the future.
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 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
The power purchase agreement between TDX and the City will be created so as to be long term
and equitable to all parties.
The City of St. Paul will continue to operate as usual, if anything their O&M costs will be slightly
reduced. TDX will supplement its O&M costs with green tag proceeds.
Current O&M costs at the City utility are $180,740 for labor and $127,680 for non -labor, as
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documented in their application from 2008. TDX anticipates their annual O&M to increase from
$90,000 to $180,000 for the system. No additional employee costs are expected beyond what is
already in place.
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.
TDX has been researching options for using excess electricity at the POSS Camp for
transportation fuel through a grant from the USDOE. Originally a hydrogen project, the focus has
shifted to plug in electric vehicles. Through this study TDX has taken a close look at the power
production from the wind farm now and with the addition of the two turbines installed in 2007.
TDX intends to modify this grant and extend the end date from 3/2010 to 9/2010 in order to better
document the electric vehicle demonstration project.
TDX will begin the process of negotiating a PPA with the City of St. Paul immediately after
submitting this proposal. If funded, work could begin on the integration project next construction
season.
SECTION 8- LOCAL SUPORT
Discuss what local support or possible opposition there may be regarding your project. Include
letters of supportfrom the community that would benefit from this project.
Economics and common sense ensure that the majority of the residents of St. Paul Island will be
in support of the City and TDX Corporation working together to allow the POSS Camp Wind
Farm to supply energy to the City's utility. Although there is a long history of bad relations
between the City and TDX Corporation, in the end both entities want what is best for the
community of St. Paul.
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.
TDX sis requesting $1.9 million for this project. The complete medium high penetration wind
diesel system for the St. Paul utility is valued at $3.6 million (capital costs). TDX has already
installed turbines, consuming $1.5 million of this budget. The cost for the remaining phase to
AEA10-015 Grant Application Page 13 of 14 10/7/2009
41111110 ALASHORITY KA
Renewable Energy Fund
Grant Application Round 3
installed turbines, consuming $1.5 million of this budget. The cost for the remaining phase to
integrate the turbines is $2.1 million. Of this $2.1 million, TDX will provide matching funds of
$200,000 (combination of cash and in kind labor during construction). Development of this
project has occurred in many phases over many years and it is not possible to calculate the total
development budget.
fq o�- 1Y
AEA10-015 Grant Application Page 1�5f 10/7/2009
®ALASKA
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
RoN h Ie.MID•n 0��
Signature
Title
C. t 0
Date
j \ / to loq
AEA 10-015 Grant Application Page 16 of 16 10l7/2009
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 UASF 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 (Jito) Colemanjoined 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.
Mr. 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 Alaska'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.
/OwN17)) ALASKA Renewable Energy Fund Round 3
GELDENERGY 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. Class 6-7 wind reosurce
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 2 Vestas V 27 wind turbines
ii. Rated capacity of generators/boilers/other 250kw
iii. Generator/boilers/other type
iv. Age of:generators/boilers/other New or almost new
v. Efficiency of generators/boilers/other Wind farm capacity factor 42%
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $150,000
ii. Annual O&M cost for non -labor $30,000
c) Annual electricity production and fuel, usage (fill in as applicable) (if system is part of the
Railbelt grid, ,leave this section blank)
i. Electricity [kWh] 1.6 million kwh from wind turbines
ii. Fuel usage
Diesel [gal] 364,736 gallons
Other
iii. Peak Load 800kw
iv. Average Load 500kw (est)
v. Minimum Load 390kw (est)
vi. Efficiency
vii. Future trends Load growth with wind diesel
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
' 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
/® ALASKA Renewable Energy Fund Round 3
® ENERGY AUTHORITY 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, Hydro, Biomass, other)
[kWh or MMBtulhr]
42% capacity factor for wind component
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 1.6 million kwh from wind
ii. Heat [MMBtu]
c)
Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons orMMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system
b) Development cost
c) Annual O&M cost of new system
d) Annual fuel cost
5. Project Benefits
$2,100,000 (does not include $1.7 million already
N/A
$180,000 for wind, $300,00 for diesel plant (est)
$1,094,208 (assume $3/gallon)
a) Amount of fuel displaced for
i. Electricity $328,604 (assumes $3/gallon)
ii. Heat
iii. Transportation
b) Price of displaced fuel $3/gallon
c) Other economic benefits Reduced emissions
d) Amount of Alaska public benefits $328,604
6. Power Purchase/Sales Price
a) Price for power purchase/sale 12-16 cents/kwh
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio Positive
Payback 6.3 years at $3/gallon
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
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T A N A D G U S I X
November 10, 2009
Alaska Energy Authority
813 West Northern Lights Boulevard
Anchorage, AK 99503
To Whom It May Concern:
As Chairman and Chief Executive Officer of Tanadgusix Corporation, I pledge our approval and support for the
St. Paul Island Wind -Diesel Project.
The wind farm at the POSS Camp was always intended to benefit the community and our shareholders on
island. With this application we hope to come to terms with the City of St. Paul Electric Utility and make this
vision a reality.
Thank you for this opportunity.
Sincerely,
%xA
Ron Philemonoff
Chairman/CEO
Tanadgusix Corporation
PU Bu, Nft 1300 13 Si r,,I. suite 1112
st. Paul. Alaska 99(,(,0 w w w, t a n x d g u s i a c o Of +l nclnu'age, Alaska 99503
901.',10.2 112 907-278,2312
Faa 90'2, i16 23({(, -.. _. - _ Paz 907.278 2316