HomeMy WebLinkAboutAPT Alaska Biomass AEA Application
Renewable Energy Fund Round 3
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-III.html
Grant Application
Form
GrantApp3.doc Application form in MS Word that includes an outline of
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
Worksheet
Costworksheet3
.doc
Summary of Cost information that should be addressed by
applicants in preparing their application.
Grant Budget
Form
GrantBudget3.d
oc
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 Instructions
GrantBudgetInst
ructions3.pdf
Instructions for completing the above grant budget 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:
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.
AP&T – Alaska Biomass Combined Heat and Power Demonstration Project AEA 10-015
Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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SECTION 1 – APPLICANT INFORMATION
Name : Alaska Power Company (a subsidiary of Alaska Power & Telephone Company)
Type of Entity: Utility
Mailing Address:
P.O. Box 3222
Port Townsend, WA 98368
Physical Address
193 Otto Street
Port Townsend, WA 98368
Telephone
360-385-1733
Fax
360-385-5175
Email
bob.g@aptalaska.com
1.1 APPLICANT POINT OF CONTACT
Name
Robert S. Grimm
Title
CEO
Mailing Address
Alaska Power & Telephone Company
P.O. Box 3222
Port Townsend, WA 98368
Telephone
360-385-1733
X120
Fax
360-385-7538
Email
bob.g@aptalaska.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.
AP&T – Alaska Biomass Combined Heat and Power Demonstration Project AEA 10-015
Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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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 5 word title for your project)
Alaska Biomass Combined Heat & Power Demonstration 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 CHP Project will involve the construction and commissioning of a 2MWe biomass
gasification CHP (combined heat and power) System to supply the local (isolated) power grid of
the Upper Tanana, including the Communities of Tok, Tanacross, Tetlin and Dot Lake. The
1,800 residents of the Upper Tanana will directly benefit from this project through lower cost
power, . If replicated, this project has the potential to benefit the 24 communities throughout
Alaska that AP&T serves, representing 13,000 energy consumers. It has the potential to be the
model for small-scale renewable energy systems for rural and urban communities throughout
the state of Alaska.
2.3 PROJECT TYPE - Put X in boxes as appropriate
2.3.1 Renewable Resource Type
Wind x 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 Design and Permitting
Feasibility x Construction and Commissioning
Conceptual Design
2.4 Project Description
The following proposal contains proprietary information that Alaska Power and
Telephone Company requests not be released to persons outside the Alaska Energy
Authority, except for purposes of review and evaluation.
Alaska Power & Telephone (AP&T), in partnership with Nexterra Systems, and with support
from GE Energy, the Upper Tanana communities of Tok, Tetlin, Dot Lake and Tanacross, and
the State of Alaska Department of Natural Resources (DNR), propose a Phase IV Construction
project with grant support from the Alaska Energy Authority (AEA). This collaborative project will
demonstrate the AEA’s commitment to community-scale renewable energy systems for rural
Alaskans through the deployment of a 2MWe CHP (combined heat and power) system utilizing
locally sourced woody biomass as fuel. The system combines Nexterra’s proprietary gasification
technology and syngas conditioning systems with GE Energy’s high-efficiency internal
combustion engines. The system is an Internal Combustion (IC) engine powered by
conditioned syngas produced from the gasification of locally sourced woody biomass, with
excess heat being made available for district heating. The system will serve the rural Alaskans
on the local (isolated) power grid of Tok, Tetlin, Dot Lake and Tanacross, now fueled by diesel
generators.
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Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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2.5 PROJECT BENEFIT
Briefly discuss the financial and public benefits that will result from this project, (such as
reduced fuel costs, lower energy costs, etc.)
The project system sets a new standard for renewable small-scale (2-10MWe) heat and power
generation for rural communities, and industrial and institutional facilities, while supporting
sustainable forest practices that focus on utilizing small volumes of local woody biomass. The
System will result in the following benefits for Alaskans:
• Energy produced by the System will displace about 12,800 MWh of diesel-generated
electricity per year, resulting in energy cost savings, and cost stability
• The system will create a valuable use for biomass from wildfire risk-reduction
projects
• The System will generate meaningful reductions in GHGs with each MWh offsetting
approximately 1,300 tons of GHG gases annually.
• The System features very low emissions with expected particulate of less than
5mg/SCM
• The System will also include heat recovery equipment to demonstrate global system
efficiency and which will be made available for integration into a district energy
system, further offsetting fossil fuel usage for heating buildings.
When all external and environmental costs of the existing fossil fuel-reliant energy system upon
which Alaskans rely are considered, it is apparent that the proposed renewable energy system
will lead to long-term cost savings for the energy consumer, adding to the growing suite of
sustainable alternatives to conventional energy systems.
AP&T strongly believes that the objectives of this project are essential to the development and
replication of renewable community-scale CHP generation in rural and urban communities as
well as the establishment of Alaskan leadership in adopting and replicating renewable energy
technology.
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 total estimated cost of the Alaska Biomass Combined Heat & Power Project is $20MM.
However, this Phase IV Construction funding request from AEA is for $4.5MM. This
Project represents a unique and broad based collaboration between a Utility (AP&T); Industry
(Nexterra and GE Energy) ; Communities (Tok, Tetlin, Tanacross & Dot Lake); Forest Industry
(Supplier of biomass); State Government (Department of Natural Resources and Alaska State
Energy Authority); Federal Government (DOE NETL & NREL) Of the $20MM overall Project
cost, the summary contributions by the applicant and each contributing entity are as follows:
Contributor Private / Industry State Federal Total
AP&T $4,867,395 $4,867,395
Tok Community
Umbrella Corp
$607,000 $607,000
AEA Request $4,525,605 $4,525,605
DOE $10,000,000 $10,000,000
Total Funding $5,474,395 $4,525,605 $10,000,000 $20,000,000
% contribution 27% 23% 50% 100%
AP&T – Alaska Biomass Combined Heat and Power Demonstration Project AEA 10-015
Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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2.4 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. $ 4,525,605
2.7.2 Other Funds to be provided (Project match) $ 15,474,395
2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 20,000,000
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)
$20,000,000
2.7.5 Estimated Direct Financial Benefit (Savings) $3,964,450
2.7.6 Other Public Benefit (If you can calculate the benefit
in terms of dollars please provide that number here
and 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.
Mr. Larry D. Coupe will be the Project Manager for the Alaska Biomass Combined Heat &
Power Project. He holds a Masters degree in Civil Engineering and has been the lead civil
engineer for numerous planning studies and design work over the past 30 years. AP&T’s
budgets include several 50% grant funded projects for installation of transmission lines on
Prince of Wales Island, and three RUS (Rural Utilities Service) 100% grants for the installation
of transmission lines to Tetlin, Lutak, and communities along the Haines Highway.
The company’s Interior Regional Manager for AP&T Operations, Mr. Eric K. Hannon, will be the
senior manager of the project. He will personally supervise the construction crews. He is
located in Tok, and is an electrical engineer with extensive experience in project management
and electrical generation, transmission and distribution.
AP&T’s engineering staff has been involved in the design, construction and operation of
hydroelectric projects since the 1980’s. AP&T currently maintains over 250 miles of
transmission line and has seasoned staff to maintain diesel generators and hydro power plants.
AP&T has administrators responsible for multi-million dollar budgets, including the management
of 60+ employees, equipment, and all generation and distribution resources. AP&T’s CEO has
had a 37 year career with the company where he has been responsible for management,
supervision, operating functions and financial performance. His breadth of experience within the
company encompasses general management, accounting, purchasing and billing, regulatory
affairs, and tariff conformance and development. Please refer to the attached resumes for a
thorough review of the Project Managers’ credentials.
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Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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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.)
This request will direct funds for completion of a Phase IV AEA project, Construction,
Commissioning, Operation, and Reporting. A funding request has been submitted to the
Department of Energy (DOE) for preparation activities which will position AP&T to continue into
the requested Phase IV AEA project.
The prior DOE request included site selection, confirmation of key project personnel, resource
assessment, public consultation, engineering, design, and permitting. AP&T will be responsible
for the completion of these phases through the DOE grant, except for the detailed equipment
design, which will be the responsibility of Nexterra. In addition, Nexterra will complete the
preliminary equipment design in consultation with AP&T and with technical assistance from GE
Energy.
AP&T will complete all activities in close cooperation with the State of Alaska. The DOE
funded portion of the project is expected to begin January, 1, 2010 and continue for 24
months.
The proposed Phase IV AEA project overlaps the term of the DOE Project funding. The
proposed AEA project is expected to begin July 1, 2010 and be completed by December
30, 2011. This portion of the project includes all activities related to the construction, installation
and commissioning of a 2MWe System. The System will be supplied as a turnkey equipment
package by Nexterra and will be designed to operate in semi-automatic mode with minimal
supervision exceeding all local, state and federal emission requirements.
The proposed AEA project will include testing, reporting and knowledge dissemination activity
and involves optimization and performance testing of the energy System. Performance tests will
be conducted on a range of operating variables including energy production, emissions
monitoring, process performance, system controls, turndown and diesel displacement. Third
party emissions tests will be conducted by a recognized analytical service company to measure
VOC, PM, NOx, CO and other regulated emissions during the contractual performance test
immediately prior to turning the system over to AP&T. During this period, AP&T, Nexterra and
GE support staff will meet regularly and compile a formal Project operations report. Please refer
to the following table for more detailed outcomes, outputs, and dates.
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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.)
Success criteria have been established for each decision point in the project and evaluation
criteria have been established for proceeding from one phase to the next, using a detailed
methodology for the overall project. The following table illustrates the established milestones for
each project phase;
Milestone or Task
Anticipated
Completion
Date
Department of Energy Project (PRIOR TO AEA GRANT):
The following activities will be conducted prior to the beginning of the proposed AEA
Phase IV Construction request; these milestones, which represent AEA’s Phases I-III
have been requested in the Department of Energy Grant application and are scheduled
to be completed before the start date of the AEA project:
• Reconnaissance; Site selected, methodology determined and approved by project
team; Confirmation of Project Manager
• Feasibility Analysis, Resource Assessment, Conceptual Design: Public Consultation
Plan completed; Review of applicable emissions permits, public consultation,
regulatory, certification, code and standard requirements; Power Purchase
Agreement obtained; Delivery of preliminary engineering package; Run engine at
Nexterra's product development center
• Final Design and permitting; All permits obtained; Completion of the detailed
engineering design of the energy system
1/1/2010
through
6/30/2010
Phase IV: AEA REQUEST Construction, Commissioning, Operation & Reporting
• Confirmation of completion of detailed engineering design of system 8/1/2010
• Preliminary General Arrangement Drawings 8/1/2010
• Preliminary Control Logic Diagram 8/1/2010
• Completion of Bid Documents; Purchase Orders and deposit issued for complete
system and all components; fabrication of system components
8/1/2010
• Construction of CHP System and Wood Storage Buildings 11/30/2010
• Contractor/vendor selection: Mechanical & Electrical Contractor retained 1/30/2011
• Integration and testing; Cold test of control loops; completion of cold testing of all
mechanical, electrical and control
6/15/2011
• Complete training sessions with AP&T staff 9/30/2011
• Select fuel vendor and complete analysis 7/15/2011
• First trial, 100 hours of run time 12/30/2011
• Final Acceptance, Commissioning and startup; Syngas meets engine specification;
Control system optimization; Pass emission test and performance test. Operations
reporting and publications.
12/30/2011
AP&T – Alaska Biomass Combined Heat and Power Demonstration Project AEA 10-015
Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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Project tasks included in the phases that occur prior to the Phase IV Construction AEA
request are as follows:
Task 1.0 - Preliminary Project Design, Permitting and Consultation
Subtask 1.1 – Project Management and Planning; project negotiation and updates
Subtask 1.2 - Public consultations with stakeholders/community
Subtask 1.3 - Emissions Permitting
Subtask 1.4 - Grid connection agreement
Subtask 1.5 - Preliminary equipment design – layout of equipment
Subtask 1.6 - Preliminary building/site design – Site and required services layout
Subtask 1.7 – Alpha testing of application
Responsibilities: AP&T will be responsible for Phase 1 except for the detailed equipment design
that will be the responsibility of Nexterra. AP&T will complete all activities in close cooperation
with the Community of Tok. Nexterra will complete the preliminary equipment design in
consultation with AP&T and with technical assistance from GE Energy.
Task 2.0 – Engineering Design and Technical Integration
The objective of this task is to complete the detailed engineering of the energy system. This will
include certified general arrangement drawings, process engineering and system design.
Subtask 2.1 – Process engineering of biomass energy system including wood fuel analysis,
combustion analysis, mass and energy balances, process flow diagrams
(PFD’s), control strategy and instrumentation diagrams.
Subtask 2.2 – Equipment design including equipment layout and mechanical design, materials
selection, equipment sizing and specifications, and general arrangement
drawings
Subtask 2.3 – Control system engineering including process description, refining control
strategy, PLC programming and logic, specification of control devices and field
instruments, completing detailed electrical engineering, wiring and control
diagrams.
Responsibilities: This task will be completed by Nexterra’s engineering team in close
collaboration with AP&T project management and facilities staff.
The Phase IV Construction AEA funding request includes the following key tasks:
Task 3.0: Procurement and Fabrication
This task will complete fabrication, assembly and construction of the energy system. This
involves preparation of supplier specifications, RFQ bid documents, securing quotations and
outsourcing to local suppliers to fabricate and deliver energy system components. System
components will be manufactured and shipped to site for final assembly and construction.
Wherever possible, equipment will be sourced/fabricated in Alaska.
Included in procurement are the major technical innovation pieces of the project which are:
> Syngas thermal cracking chamber
> Syngas heat recovery system
> Controls and instrumentation to be developed in accordance with gas safety regulations
Subtask 3.1- Procurement of vendor designed major components, such as conveyors, fans,
pumps, fuel screen and hydraulic system
Subtask 3.2- Fabrication of Nexterra designed components such as fuel reclaim system, dryers,
fuel silo, conveyors, metering bin, fuel in-feed conveyors, in-feed cone, gasifier,
cracking chamber, oxidizer and interconnecting breaching
Subtask 3.3- Fabrication of ash removal system
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Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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Subtask 3.4- Specification of refractory
Subtask 3.5- Procurement of instrumentation and controls
Subtask 3.6- Procurement of analytical and electrical equipment
Subtask 3.7- Procurement of conveying ducts
Subtask 3.8- Procurement of the IC Engine, Gas train, silencer, hoerbiger valves and ancillary
engine equipment
Responsibilities: This task will be completed by Nexterra’s engineering team in close
collaboration with AP&T project management and facilities staff.
Task 4: Installation and Commissioning
The objective of this task is to install and commission the demonstration plant at the AP&T site.
Subtask 4.1- Installation of Foundations
Subtask 4.2- Completion of mechanical installation of fuel handling system, gasification system,
heat recovery system, syngas conditioning equipment and power generation
equipment
Subtask 4.3- Construction of building to house gasification system
Subtask 4.4- Complete electrical power and control wiring
Subtask 4.5 - Program and test instrumentation and control systems
Subtask 4.6- Commissioning the energy system. Commissioning will involve a controlled start-
up operation at partial fuel capacity using wood fuels. This will be followed by a
series of short trials to test system operation and ensure all process, mechanical
and control systems are fully functional. During this period, AP&T plant
operations staff will be trained to operate the system.
Subtask 4.7-Training of staff to operate and maintain gasification system and power generation
equipment
Responsibilities: This task will be supervised by Nexterra’s Chief Engineer and the Vice
President of Projects. Activities will be completed by Alaska-sourced installation contractors,
Nexterra start-up technicians, and AP&T facilities personnel.
Task 5: Energy System Optimization, Performance Testing, Analysis and Reporting
This phase involves optimization and performance testing of the energy System. Performance
tests will be conducted on a range of operating variables including energy production,
emissions monitoring, process performance, and system control. Third party emissions tests
will be conducted by a domestically-sourced recognized analytical service company to measure
VOC, PM, NOx, CO and other regulated emissions during the contractual performance test
immediately prior to turning the system over to AP&T. During this period, AP&T, Nexterra and
GE support staff will meet regularly and compile a formal project operations report.
The objective of Task 5 is to operate the energy system at full commercial design capacity and
optimize the process and control system. System optimization and analysis tasks include the
tasks outlined below.
Subtask 5.1 - Fuel analysis
Subtask 5.2 - Operational trials
Subtask 5.3 - Optimization of syngas conditioning system
Subtask 5.4 - Control system optimization
Subtask 5.5 - Syngas analysis and characterization
Subtask 5.6 - Monitoring of GE’s internal combustion engine while operating on syngas
Subtask 5.7 - Third party monitoring and evaluation of performance test
Responsibilities: These tasks will be completed by Alaska-sourced installation contractors, and
AP&T facilities personnel, with support from Nexterra’s Chief Engineer and start-up technicians.
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Alaska Energy Authority, Renewable Energy Fund Round 3 Grant Application
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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.
This Project represents a unique and broad based collaboration between Utility (AP&T);
Industry (Nexterra and GE Energy) ; Community (Tok, Alaska); Forest Industry (Supplier of
biomass); State Government – Department of Natural Resources; and Federal Government
(Through DOE NETL) . If awarded, AP&T will be the sole recipient of the grant funding and will
be responsible for overall management of the project, operating the energy system including
fuel supply, consumables and qualified labor. Through a business agreement, the
subcontractor (Nexterra) will provide equipment and technical and operational support to AP&T
for the proposed system. AP&T facilities personnel will be responsible for operating the energy
system including fuel supply, consumables and qualified manpower, while Nexterra and GE
Energy will provide equipment, technical and operational support. The following is a summary
description of each entity involved in the proposed project:
AP & T
AP&T has been generating electricity with hydroelectric and diesel power plants throughout
Alaska since 1957. Now serving 24 communities, AP&T has personnel certified as electrical,
civil, and mechanical engineers who maintain the facilities to the highest professional
standards. AP&T has a consistent history of excellent performance in reliability, customer
service, and a long-standing reputation for being a low cost provider of electric service.
AP&T has a proven record of accomplishment as an electrical utility as well as a developer of
hydroelectric and other renewable energy projects. AP&T currently operates five hydroelectric
projects, with an additional project currently under construction. Since 2001, AP&T has installed
over 75 miles of 34.5 kV transmission line on Prince of Wales Island, Alaska, all with in-house
personnel. Many additional miles of transmission lines, substations, and transformers have
been constructed since then. During 2005-2006, AP&T designed, engineered, permitted, and
constructed the 2MWe run-of-river South Fork Hydroelectric Project. Several of these projects
were funded by grants, demonstrating significant grant administration experience. AP&T has
administered several multi-million dollar budgets, including the management of 60+ employees,
equipment, and all generation and distribution resources.
AP&T’s CEO has had a 37-year career with the company where he has been responsible for
management, supervision, operating functions and financial performance of the company. His
breadth of experience within the company encompasses general management, accounting,
purchasing and billing, regulatory affairs, and tariff conformance and development.
Nexterra Energy Corporation
Nexterra Energy Corp. is a privately held, Vancouver-based energy technology company
incorporated in 2003 in British Columbia. The company is majority owned and financed by
Calgary-based ARC Financial. ARC is Canada’s largest financial management company
focused on the energy sector with over $1.8 billion under management and investments in
more than 100 energy firms.
Nexterra is well capitalized with $20MM of invested equity. In addition to equity funding,
Nexterra has also received over $10MM from Sustainable Development Canada, National
AP&T – Alaska Biomass Combined Heat and Power Demonstration Project AEA 10-015
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Research Council, NRCan and Ethanol BC to support R&D and early commercial technology
applications. Nexterra has established strategic relationships with Johnson Controls,
Honeywell, McKinstry, Andritz, GE Energy, and other American strategic partners.
Nexterra has a demonstrated history of developing and commercializing biomass gasification
technology. Nexterra operates an 8MMBtu/hr biomass system at its Product Development
Center (“PDC”) in Kamloops, British Columbia for R&D and product development work. The
PDC was commissioned in 2004 and is staffed by twelve product development engineers and
operators for 24/7 operations. The PDC has been the principal site for the development of
current and planned future gasification applications. A history of application development
activity carried out at the PDC is provided below:
o Indirect Fire (Development Status – Commercial) – Indirect-fired gasification system such
as those located at the University of South Carolina, a Kamloops plywood mill, Dockside
Green (Victoria, BC) and the DOE’s Oakridge National Labs (ORNL) fully combust syngas
in a closely coupled oxidizer. The resulting, clean, high temperature flue gas is directed to
heat recovery equipment for delivering heat to boilers, dryers and traditional thermal
applications.
o Direct-Fired (Development Status – Demonstration) – With a direct-fired syngas application,
such as the New Westminster BC Kruger paper mill project, a gasifier similar to that used in
indirect fire systems provides the basic gasification platform minus the closely coupled
oxidizer which is not required. Rather than combusting the syngas in an oxidizer, the clean,
low temperature syngas is conveyed via ducting, and then directly combusted in a dual fuel
syngas/natural gas combustion nozzle into a power/steam boiler or a limekiln.
o IC Engine – The basis for this Project, Nexterra’s IC engine program has successfully
demonstrated Nexterra’s proprietary thermal cracking technology that produces “warranty
grade” syngas for use in GE Jenbacher IC engines. Nexterra is currently conducting
syngas slipstream testing and is pilot testing a 239kw pilot scale IC engine in support of the
AP&T Project.
Nexterra’s Vice President/Chief Engineer has over 17 years experience designing and
implementing combustion systems and over 26 years engineering experience. Prior to joining
Nexterra, he was Contract Department Manager at Wellons, Western Canada’s largest
manufacturer of wood-fired energy systems, where he was responsible for design and project
management of turnkey energy system projects for customers in the forest products industry.
Nexterra’s Program Manager has over 20 years of multidisciplinary engineering experience with
an extensive record of management of technology development from commercialization to
implementation. Prior to joining Nexterra in 2003, he was a consultant in the technology sector,
serving clients such as Ballard Power Systems, DynaPower Systems and BI PureWater.
GE Energy
GE Energy has products and services ranging from aircraft engines, power generation, water
processing and security technology to medical imaging. GE serves customers in more than 100
countries and employs more than 300,000 people worldwide. GE Energy is one of the world's
leading suppliers of power generation and energy delivery technologies, with a 2007 revenue of
$22 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry
including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind,
solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under
ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies
that will help customers meet pressing environmental challenges.
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Ecomagination is GE’s commitment to help its customers and society solve its most pressing
energy and environmental challenges. Under Ecomagination, GE has committed to:
• Doubling its research investment in environmentally friendly technologies from $700
million to more than $1.5 billion over the next five years.
• Introducing new products and services that offer significant and measurable
environmental performance advantages to its customers.
• Reducing its greenhouse gas emissions (GHG) and improve its energy efficiency.
• Keeping the public informed. GE has pledged to publicly report its progress in meeting its
goals.
GE has been collaborating with Nexterra on the IC engine application since early 2007.
AP&T and Nexterra are equipped with professional facilities and adequate equipment to
accommodate the proposed Project. The System scope is designed to include the following
components:
• Gasification system including gasifier, fuel metering system, combustion air fans and
ducts, syngas ducting c/w abort system and ash collection system
• Syngas conveying system consisting of a refractory lined duct that leads to the syngas
preheater, cracking chamber and heat recovery heat exchanger
• Precoat filter system including media doping, removal, and Inert gas purging systems
• Syngas water condenser
• Primary air condensate water evaporator
• Steam side syngas duct, oxidizer and 20,000 #/hr 100psi steam boiler
• Syngas gas train including syngas heater, regulators, blocking valves and sensors
• GE Jenbacher J620 engine
• Exhaust silencer, hoerbiger valve, oxygen catalyst and exhaust heat recovery heat
exchanger
• Instrumentation and controls including all field instruments, monitoring equipment and
PLC control system
• System installation including mechanical, refractory, and electrical installation
• Commissioning, start-up and operator training
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
During all phases of the project, AP&T will provide regular periodic reports to AEA regarding the
status of the work. AP&T has provided similar reports to AEA and other grant funding agencies
in the past on other projects, and has established the necessary procedures for producing the
report expeditiously. Communications within the team will consist of:
• Weekly reports by the Environmental Compliance Monitor
• Bi-weekly conference calls among the Project Manager, Superintendent, and Engineers
• Periodic site visits by the Project Manager and Engineers
These internal discussions will form the basis of reports to AEA. The reports will show progress
made on the various tasks/milestones, the work to be accomplished in the ensuing quarter, and
potential problems and corrective actions to be considered or implemented. MSProject or
similar software will be used to develop and maintain schedule and budget information.
Updating of the management files will be on a monthly basis.
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Additionally, the information gathered by this project will be disseminated as follows:
• University of Alaska, Fairbanks – The University, through ACEP and the School of Natural
Resources, will be asked to participate in evaluating the System and will assist in the
dissemination of the results
• GE Energy – It is expected that GE Energy and its Jenbacher subsidiary will publish the
results of the Project throughout the GE community and various global biomass to energy
conferences.
• Nexterra – Nexterra is a member of the global biomass network and will present the
results of the project to both domestic and international renewable energy audiences.
• Alaska State Government – The State of Alaska will publish its findings about the project
as an example of Alaska’s leadership in implementing a core competency in renewable
energy. The State will highlight the project and its results through various presentation
opportunities including presentations to the Western Climate Initiative, through the
Department of Natural Resources, Forestry.
3.6 Project Risk
Discuss potential problems and how you would address them.
The following contains proprietary information that Alaska Power and Telephone
Company requests not be released to persons outside the Alaska Energy Authority,
except for purposes of review and evaluation.
The primary intent of the demonstration project is to gasify woody biomass and provide a
syngas suitable for operation in an internal combustion engine. The syngas produced by the
Nexterra gasifier must prove to be of suitable heating value, composition, stability and
combustion properties for the controlled and rapid combustion process within an IC engine
cylinder. The syngas provided to the engine must have a limited organic and inorganic content
to prevent engine and gas train fouling. The key to success (and the key risk) of this project is
the effective removal/conversion of the tars to non-condensable gases and/or manageable
constituents. The conditioned syngas needs to be effectively void of contaminants prior to use
in an IC Engine.
Although much forethought and planning has been put into project development, some
technical risks are expected to be encountered. The risk mitigation plans are as follows:
o Identified Risk: High operating temperatures pose a risk to process equipment such as
heat exchangers and the cracking chamber and High operating temperatures of >2,000°F
increase the possibility of ash slagging at typical ash melting points.
Risk Mitigation: Potential reduction of demonstration/commercial scale process
temperatures at the potential expense of efficiency.
o Identified Risk: Incomplete destruction of tars by syngas cleaning/conditioning equipment.
Risk Mitigation: If the target post-cracking tar content is not achieved within the
parameters for IC engines then post-treatment regimes will be considered. These
treatments may include: WESPs, partial OLGA, expanded pre-coat filter systems, etc.
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o Identified Risk: Phenols, BTEX (Benzene, Toluene, Ethylbenzene and Xylenes)
remaining in condensate water.
Risk Mitigation: If additional reductions become necessary, then post treatment of these
organics in the water phase via activated carbon or biological methods will be investigated
and may require additional process equipment and capital/operating costs. For the
demonstration plant, a regenerative thermal water purification system may reduce global
efficiency. A non-regenerative purification system is included in the Demo system capital
cost for a startup/flare oxidizer to continuously burn the contaminated water and recover
most of the heat as recoverable thermal energy.
Major business risks expected to be encountered and the risk mitigation plans are as follows:
• Identified Risk: Ability to deliver constant stream of quality syngas
Risk Mitigation: This is a differentiating factor between this and competitive systems,
and the proprietary development to be demonstrated
• Identified Risk: Ability to secure sufficient quality wood fuel
Risk Mitigation: The Project has sourced a 25-year supply of fuel through an Alaska
State DNR timber sale contract
• Identified Risk: Ability to automate the System and eliminate any requirement for 24/7
certified steam engineers
Risk Mitigation: The Alaska State Boiler Branch has confirmed that the System will not
require 24/7 certified steam engineers
• Identified Risk: Confirmation of all required funding
Risk Mitigation: AP&T has significant private resources, and has confirmed that biomass
CHP development is a priority for and will be supported by several project partners
• Identified Risk: Proponent ability to deliver, commission and replicate
Risk Mitigation: AP&T, GE and Nexterra are well financed, have demonstrated project
management and commercialization skill sets and have access to demonstrated sales
channels that will enable the timely replication of the technology.
Other risks expected to be encountered and the risk mitigation plans are as follows:
• Identified Risk: Public Support
Risk Mitigation: The Project will initiate local public consultation sessions to be held at
the beginning of the project. The intention of these sessions will be to present project
information, hear all questions and concerns, and build public trust and support.
• Identified Risk: Securing Building and Development Permits
Risk Mitigation: A process is in place that has previously been successful in securing
necessary permits and authorizations
• Identified Risk: Securing and meeting Emissions permit
Risk Mitigation: Nexterra has previously obtained third party emissions results on two of
its existing similar systems, and particulate emissions were found to be in the range of
2-3mg/m3 compared to 4-6mg/m3 for natural gas
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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 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.
The State of Alaska Department of Natural Resources (DNR) Tok Area Forestry is completing an
agreement for a 25-year contract with AP&T for a timber sale encompassing approximately
27,000 acres of State forestland in the Upper Tanana. This is more than sufficient resources for
required feedstock. The system will convert approximately 12,500 tons of woody biomass per
year to heat and power. This will use approximately 300 acres per year (at 40 tons per acre), or
a total of 6,000 acres over 20 years. This amounts to about 25% of the biomass available from
the leased parcel of state forest land.
DNR Forester, Jeffrey Herrmanns states that State forest lands near the project area could
provide much more woody biomass on a sustainable basis. He also states that the wildfire risk is
an ongoing danger to communities in the Upper Tanana, and that harvest for energy production
could avoid some wildfire fighting costs, while providing compensation to the State for the
removed biomass fuel.
The following contains proprietary information that Alaska Power and Telephone
Company requests not be released to persons outside the Alaska Energy Authority,
except for purposes of review and evaluation.
The Nexterra gasification technology, which is the core of the System, is a commercial fixed bed,
updraft gasification process. Fuel, sized to 3-inch minus and with a Higher Heating Value (HHV)
of 8,000-9,000 BTU/lb (DB), is bottom-fed into the center of a cone-shaped, refractory lined
primary gasification chamber. Combustion air is introduced into the base of the fuel pile and
partial oxidation occurs at 650 - 850°C where the fuel is converted into “syngas” and non-
combustible ash. The ash migrates to the perimeter of the primary chamber and is removed
mechanically by a rotating ash dropout system. Minimal fuel disturbance and low gas velocities
in the gasifier promote low particulate entrainment and carry over.
While operating on unprocessed bark fuel (hog fuel), Nexterra’s gasification system produces a
low-btu combustible syngas with a HHV of 100 – 150 btu/ft3. The syngas exits the gasifier at a
temperature of 400 – 900°F depending on the moisture content of the wood fuel. The syngas is
composed primarily of CO, H2, CH4, N2, CO2 and H20. It contains very low levels of entrained
particulate, which means that it meets most PM emissions regulations without requiring
additional mechanical pollution control equipment such as multi-cones, bag-houses and/or
electrostatic precipitators.
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The GE Jenbacher IC engine being proposed for use in the System is a mature, commercial and
commonly used method for generating power in small to medium scale applications with the
advantage of high gross electrical efficiencies. Traditionally, IC engines have been run on fossil
fuels (gasoline, diesel or natural gas) due to the lack of technology required to refine and
produce tar-free syngas from biomass. Syngas derived from biomass contains non-condensable
gases rich in heating value and which are generally well suited to IC engines. Gas compositions
and heating value from the Nexterra gasifier are in an appropriate range to for use in an IC
engine as validated by GE-Jenbacher.
However, syngas produced from biomass typically contains condensable and non-condensable
impurities, primarily in the form of condensable organic compounds (pyrolitic tars) as well as
inorganic constituents (ash). These impurities can cause premature IC engine failures in the
operation of IC engines, if not treated, as has been demonstrated with other approaches to this
technology.
AP&T has selected the Nexterra biomass CHP technology for its robust, elegantly simple gas
cleaning process, which relies on high efficiency thermal cracking to overcome fouling issues,
which have traditionally been the “Achilles Heel” of biomass power systems. This system utilizes
a thermal cracking approach to convert tars to usable combustion gases.
The following review outlines additional advantages of the proposed gasification technology over
other options, starting with the gasifier, and then the engine genset:
• Ultra Low PM Emissions – One of the most significant innovations of this system is the
Nexterra gasifier that produces extremely low particulate emissions (typically <50 mg/m3
without air pollution control equipment or less than 3 mg/m3 with pollution control
equipment) to exceed the most stringent air quality regulations. By comparison, the
combustion of natural gas typically produces PM emissions in the 4-6 mg/m3 range, and
diesel combustion emissions are higher yet. The system’s ultra-low third party verified
emissions means the technology is well suited to both urban and rural applications.
• Design Simplicity – the system gasifier technology is relatively simple in design with an
emphasis on fewer moving parts compared to conventional combustion systems or other
gasification processes. For example, Nexterra gasifiers use fixed, convection cooled
grates, while others use moving, water-cooled grates that are higher cost and maintenance.
A high level of ash is maintained in the gasifier with a very low volume of ash being
discharged in the flue gas thereby reducing the requirement for excessively sized
electrostatic precipitators or other cleanup equipment. The requirement for less equipment
means lower capital, less power consumption, ease of operation and lower maintenance
cost.
• Low Refractory Maintenance Cost – Lower gas velocities and lower temperatures inside
the gasifier means minimal wear and tear on refractory. Reduced particulate scouring
means increased refractory life in the gasifier.
• Better Operational Control – the system gasifier has excellent process control capabilities
in terms of turndown (4:1), rapid shut down and start-up from idle mode, control over flue
gas temperature and the ability to tune ash bed temperatures to eliminate ash melting and
clinker formation.
• Fuel Flexibility – The system’s gasification technology has been proven on bark and
whitewood fuels between 15 – 55% moisture at a particle size of 3” minus.
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• Application Flexibility – Ultra low emission flue gas provides opportunities to use the system
gasifier for a variety of current and future applications
• IC Engine – GE Jenbacher CHP systems economically utilize the waste heat incurred
during engine operation to generate overall plant efficiencies of up to 90%. This efficient
form of energy conversion achieves primary energy savings of roughly 40% by using a IC
engine cogeneration system instead of separate power and heat generation equipment.
Transportation and distribution losses are also reduced by the proximity to feedstock and
end-users of community-scale decentralized energy generation.
• The manufacturer of the IC engine/genset used in this system is GE Energy, one of the
world's leading suppliers of power generation and energy delivery technologies, with 2007
revenue of $22 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the
energy industry including conventional and renewable energy.
Despite the multitude of advantages to the chosen technology, some potential technology
difficulties have been identified. Strategies have been developed to minimize impacts from the
following issues:
• Scale Limitations – Updraft gasification has several unique advantages but is also
constrained in terms of scale-up potential. The size of the fuel bed is limited to the extent
that air can readily penetrate the fuel pile to ensure even and rapid gasification. Typically,
this constraint limits updraft gasification applications to total system sizing of under 15MWe
before the number of gasifiers required exceeds practical operating and physical layout
limitations.
• Equipment Limitations – Nexterra’s core gasification technology is proven but the tar
cracking system is new and not commercially proven. The technical challenges and risks of
utilize equipment such as high temperature heat exchangers with syngas has yet to be
validated. Nexterra has committed a signification amount of engineering to proper
equipment and vendor selection to minimize the risks.
• Syngas quality – Fundamentally, downdraft gasifiers produce a syngas stream lower in tars
than updraft or fluidized bed gasifiers. Although Nexterra’s tar cracking technology
produces syngas with less tar than raw tar from downdraft gasifiers, the conversion
efficiency of downdraft systems is slightly higher. Scaleabily of downdraft gasifiers is a
significant barrier due to the very large number of gasifiers required to produce power in the
MW range. The Nexterra solution trades off the addition of a cracking system over a large
number of gasifier necessary for a downdraft solution.
• Water Waste Streams – All biomass to power via IC Engine solutions produce a stream of
waste, most commonly contaminated water from the biomass, which is not processed in
the engines. This water stream is a technical barrier in terms of life cycle cost to remediate
the water. Nexterra’s solution will also produce a waste stream of water but the
contaminant levels are expected to be low enough to remediate with modest technical
solutions.
North America and especially Alaska have a relatively abundant and sustainable woody biomass
resource with a nominal value per GJ when compared to fossil fuels. This “spread” as
represented by the excess of fossil fuel costs over wood fuel costs provides the economic
returns required for the capital deployment necessary to deploy biomass power generation.
The current consensus utility purchase price for marginal renewable power production takes into
account a higher value for wood ($30+/bdt) that will help ensure the long term supply of locally
harvested biomass from public lands.
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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 existing electrical energy market in the Upper Tanana area consists of a local isolated power
grid serving the communities of Tok, Northway, Tetlin and Tanacross, as well as the other rural
residents of the area. All four communities are on the same local grid and are therefore supplied
by the existing diesel power plant. Peak demand is about 1,800 kW, in both winter and
summer. Production by the diesel power plant has averaged about 12,000 MWh/yr for the last
ten years, with minor fluctuations corresponding to diesel price fluctuations.
The project is expected to stabilize electric rates for AP&T’s customers by offsetting diesel.
Rates may be reduced as system feedstock costs stabilize and are projected to be as much as
20% lower than current prices. Since diesel costs are expected to remain volatile, this is a major
improvement in energy cost predictability for AP&T’s customers. The addition of other renewable
energy sources could result in further rate reductions, but until diesel generation can be
eliminated, electric rates will continue to have fluctuations.
Many customers supplement their electrical use with kerosene, oil and gas for generators, as
well as for heating. Several customers also use propane for cooking, clothes dryers, hot water
heaters, etc. When electric rates stabilize, these other non-renewable fuel sources usage may
decline, which would help clean the air and reduce toxic spills, as well as help localize the
economy of the region.
Energy demand is expected to grow for this area. Stable power costs are attractive to
manufacturers and businesses looking to locate in this area. Healthy local economies, based on
local natural and human resources can become more self-sustaining.
There are 6 gensets in the Tok diesel power plant that supply electricity to all four communities,
as follows:
Unit #3 = CAT Model D3516, 1320 kW, Purchased / Installed 1999
Unit #4 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1989
Unit #5 = CAT/KATO Model 3516, 1135 kW, Purchased / Installed 1995
Unit #7 = CAT Model C175-16, 1800 kW, Installed 2007 (is on loan from CAT as a test unit)
Unit #8 = CAT/KATO Model D3508, 440 kW, Purchased / Installed 1985
Unit #9 = CAT/KATO Model 3512C, 1050 kW, Purchased / Installation in progress 2008
The project will reduce the cost of generation by AP&T, and the savings would be passed on to
AP&T’s customers in Tetlin, Tok, Tanacross and Dot Lake who presently pay $0.47 per kWh
(excluding PCE). The cost savings to customers is estimated to be roughly 20%, when current
diesel costs, projected biomass costs and other factors are taken into consideration.
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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 much of the power and heat generated in Alaska is from fossil fuel, including coal,
diesel, natural gas or nuclear fuels. The need to move away from fossil fuel energy is painfully
apparent in Alaska with high and escalating costs exacerbated by transportation challenges in
rural communities that are not accessible by road. Diesel deliveries by river barge or airplane are
not only expensive, but potential environmental disasters.
It is anticipated that the current momentum in regulatory direction toward establishing arbitrary
values in carbon markets will continue. As the carbon cycle benefits of renewable energy are
inherently superior to fossil fuel energy, accounting of cost/benefit ratios for renewables will
become more accurate as carbon values are quantified.
Biomass is a readily accessible local fuel source that is grossly underutilized for lack of adequate
and proper technology. The proposed Project will use this renewable and clean fuel source, thus
minimizing dependence on fossil fuels and demonstrating community-energy sustainability and
independence.
Recent trends in biomass power production are focusing on smaller (<20MWe), distributed
power generation facilities due to the increasing biomass transportation costs and logistical
difficulties involved in securing large quantities of biomass feedstock on a long-term price-certain
basis; the new System is ideally suited to addressing this demand for smaller scale power.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The existing energy market is the Upper Tanana region, including the communities of Dot Lake,
Tetlin, Tanacross, Tok and surrounding areas. The communities are on a local grid and are
supplied by the Tok diesel power plant. Peak demand is about 1,800 kW. The project does not
intend to eliminate the existing diesel generating capacity, but to put it in reserve as backup,
rather than primary status. The direct impact on energy customers will be negligible in practical
terms, and beneficial in economic and cultural terms. The same reliable electricity grid with a
cleaner air shed, more stable energy costs, more local economic stimulation, and lower wildfire
risk.
The project will utilize local biomass woodchips to fuel the system. Biomass fuel is not only a
readily accessible local fuel source that creates local jobs to harvest and process; it is also a
resource that is a wildfire risk unless managed. Alaska’s seventy-year average annual loss to
wildfire is approximately 1,000,000 acres burned annually. The cost of fighting wildfires is from
$500 to $1500 per acre. The environmental cost of a million acres of wildfires per year is virtually
incalculable.
The System will create direct local employment through the harvest, transportation and
processing of the woody biomass required for the System and in operating/maintaining the
equipment. On replication, the System has the capacity to result in the construction of multiple
Systems throughout the Alaska and North America, generating up to 130MWe of renewable
energy that can create up to $500MM in direct American economic activity and offset over
170,000 tons of GHG emissions annually. Furthermore; each individual System will create up to
35 FTE (full time employee) positions (engineering, fabrication and mechanical/electrical
installation) in addition to approximately 2-3 full time System Operator positions and other
indirect jobs related to biomass harvesting and System maintenance.
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Long-term fossil fuel prices are widely expected to rise, even in conditions of low base
commodity prices that are elevated through transportation, carbon tax and carbon credit
purchase requirements. The increase in overall costs of delivered fossil fuels will result in
escalating conventional power production costs, and this enhances the urgency of the search for
stable cost alternatives. Energy from woody biomass fuel is an ideal stable cost alternative, and
has the additional benefit of being “demand power,” available as needed, as opposed to solar
and wind power. Currently, the cost per GJ of thermal energy derived from fossil fuels is higher
(by approximately $4/GJ and rising) than woody biomass-derived heat.
A principle reason that the technology used in this Project has developed to its current state is
the amount of Interest in this method. The “Market Pull” comes from the following principal
sources:
• Communities – urban waste and energy security issues have prompted communities to
seek out technologies such as this Project to enable smarter thinking about waste, biomass
resources and energy. As evidence of this, the Tok Area DNR Forester is an enthusiastic
advocate of the Project and is supporting it.
• Universities – Universities are perhaps the largest initial market for the sale of renewable
energy systems due to the large carbon footprint that typically exist on campus.
Universities are eager to reduce their carbon footprint though technologies such as is
represented by the Project. The School of Natural Resources at University of Alaska
Fairbanks (UAF) is also supporting this project (see reference letter).
• Industry – Many industrial processes require thermal energy and or large amounts of
electrical energy. The Project has the potential to supply industry with both enabling
industries to substantially reduce their carbon footprint and lower cost of production through
lower cost biomass energy production.
• Utilities – Many utilities face the prospect of addressing State Renewable Portfolio
Standards whereby a stated percentage of energy production must come from renewable
sources by a certain point in time. In addition, the cost of remote community and industry
power servicing are simply not economic for new businesses.
• Energy Service Companies – Nexterra, a packager of the technology, currently has
strategic alliances to market commercial product offerings throughout North America with
Johnson Controls Inc and Honeywell Inc.
• Nexterra Systems Corp. – As indicated above, Nexterra is a developer of the gasification
and gas cleanup technology that will form the basis for energy production in this Project..
• GE Energy – As a participant in the Project, GE Energy with over $17b in annual renewable
energy revenues views this Project as an Ecomagination Breakthrough within the GE
world, acknowledging that the Project is a priority for GE and that the outcome could have a
material effect on GE’s renewable energy portfolio.
• Forest Industry – The forest industry views the emergence of distributed renewable power
production as essential to the evolution of its industry, independent of mill closures, the
cyclical building industry and the economy as a whole.
• IPP’s – Independent Power Producers are eager for the development of biomass based
renewable power production. Stand-alone financing for these projects must be predicated
by demonstrations to the satisfaction of rating engineering firms.
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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
The System has been designed around the attributes that will enable economic and sustainable
community-scale power production in both urban and rural communities, institutions and
industrial facilities. These include a small footprint (2-10MWe size) scalable in 2MW increments,
GHG reduction of approximately 1,300 tons/year per MW, and localized biomass resource
requirement (12,500 BDT/yr (bone dry tons per year) for 2MWe. This is equivalent to 300
acres/year at 40 tons/acre (Tok Area forest volume –estimated by DNR). This volume allows a
90-year rotation on the contracted Alaska State land base available for this project of 27,000
acres.
Additional information regarding the proposed System includes:
• The proposed 2MW system matches the existing load with a small reserve. The
technology includes a turndown ratio that allows load matching. Biomass CHP is
demand-power, available as needed, as opposed to wind or solar power that must
include battery storage to be available as needed.
• The proposed system is scalable in 2MW increments. An increase of generating capacity
to meet additional load could be easily accomplished to allow for growth by additional
business, industrial or community power needs. The system as designed is scalable from
2MW to 10MW.
• Anticipated capacity factor of 100% of historical load, with the existing diesel generators
available if needed for peak loads beyond 2MW.
• Anticipated annual generation of 12,000 kWh, matching historical power demand.
• Anticipated barriers include the previously mentioned Scale Limitations, Equipment
Limitations, Syngas quality, and Water Waste Streams.
• Basic integration concept is as a separate and integrated primary generating system, tied
into the existing grid, in parallel to the diesel generators that will assume secondary
status.
• System will deliver power to the electrical grid in the same manner as the existing
system. The primary difference will be the source of fuel for the generators will be local
and renewable, rather than non-renewable non-local fossil fuels.
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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 potential land ownership issues, as AP&T owns the land upon which the project will
be located. This land has been used for industrial purposes for several years and is being
provided to the project as part of the matching contributions. The size of the land that will be
utilized is approximately 3.3 acres, or 160,000 square feet. The new construction portion of the
project will consist of one 17,600 SF metal building that will house the Biomass CHP system and
a second, 30,000 SF shed to serve as a woodchip storage building.
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
AP&T will be responsible for obtaining all permits and required inspections throughout the life of
the project. These include a development permit, emissions permit, and building permit. It is
expected that all of these permits will be obtained by June 30, 2010.
There are no anticipated barriers to obtaining the required permits to conduct this project. A
process is in place that has previously been successful in securing necessary permits and
authorizations that AP&T will follow. In addition, Nexterra has previously obtained third party
emissions results on two of its existing similar systems, and particulate emissions were found to
be in the range of 2-3mg/m3 compared to 4-6mg/m3 for natural gas.
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
The proposed Alaska Biomass CHP Demonstration Project will take place in the Upper Tanana
region, adjacent to the existing power plant on Discovery Lane at Borealis Avenue in Tok. This
land has been used for industrial purposes for several years. AP&T will adequate address any
potential environmental and/or land use issues that may arise from the project, as follows:
T&E Species: There are no threatened or endangered species that would be affected by the
proposed project.
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Habitat Issues: There are no threatened or endangered species habitat that would be affected by
the proposed project. As the site location is currently used for industrial purposes, there would be
no wildlife habitat impacts at all for the proposed project, nor would the proposed project impact
migratory animal corridors of any kind.
Wetlands: The proposed project would not affect any existing body of water, floodplain or
wetland. Additionally, the project would not cause runoff, sedimentation or erosion. The closest
body of water is the Tanana River, which is over 10 miles away from the project site.
Archaeological Issues: The proposed project would not disturb any historical, archeological or
cultural sites of any kind. There are no archeological sites in the vicinity of the proposed project.
Telecommunications Interference: There are no telecommunications interference issues
expected with the proposed project.
Aviation Considerations: This project is not near an airport nor typical flight pattern, nor will the
infrastructure be more than 45 feet above ground, well below safe flying elevation.
Visual & Aesthetic Impacts: The proposed project would not interfere with any visual resources
or alter the landscape in any major way.
Please refer to the attached Environmental Questionnaire that was submitted to the U.S.
Department of Energy as part of a grant application. The questionnaire will provide more details
regarding potential environmental impacts of the proposed project.
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 entire proposed Alaska Biomass Combined Heat & Power Demonstration Project will cost
$20,000,000. Of that amount, $10,000,000 has been requested from the U.S. Department of
Energy. This AEA Phase IV Construction funding request is for $4,525,605 and includes
the construction of a building to house the CHP unit, the construction of a wood storage
building and contractual costs for installation of the CHP system.
The remaining match funds are as follows:
• AP&T: $4,867,395
• Tok Umbrella Corporation-$607,000
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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.)
O&M Costs estimated by Nexterra, based on several similar installations in US and Canada.
Cost Assumption Annual Cost
Labor – Operators $80,000
Gasification Maintenance $185,000
Engine Maintenance $0.011/kWe-hr $170,000
Consumables $0.010/kWe-hr $155,000
Total annual O&M incl labor $580,000
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
AP&T is developing this Project to supply power to its own isolated Upper Tanana grid. (No PPA
is necessary). This power will be sold to AP&T’s customers in the Upper Tanana region,
including the communities of Tok (population 1,400), Tetlin (population 136), Tanacross
(population 189), and Dot Lake (population 66), as well as the rest of AP&T’s rural customers in
the region. They are expected to pay a lower price for biomass-generated power than they
currently pay for diesel-generated power. The current cost of power that these residents are
paying is $.47/kWh. Once the proposed system is installed, the price is estimated to be reduced
by as much as 20%.
In addition to the customers already connected to the Upper Tanana power grid, there is a great
potential for a larger market. This potentially includes universities, state and federal buildings,
fish processing, forest products, and others. Another potential is to increase the size of the
system, given the local availability of fuel feedstock, and connect it to the Golden Valley grid.
• Growth of Distributed Generation – Advances in power generation technology, market
deregulation, focus on green energy and the drive for energy self-sufficiency are creating
demand for highly efficient, small-scale energy systems.
• Climate Change and Environmental Awareness – Public and corporate environmental
awareness combined with the government’s commitment to fighting climate change are
resulting in new national policy and regulatory initiatives that are mandating reductions in
greenhouse gas emissions from fossil fuels. The emergence of the Waxman Energy Bill,
the establishment of the Western Economic Climate Initiative and the emergence of state
Renewable Portfolio Standards are leading examples of a change in awareness that is
creating forward momentum for distributed and renewable energy solutions.
• Rising Fossil Fuel Energy Costs vs. Wood Waste Costs – Currently, Heat and Power
production is derived mostly from coal, diesel, natural gas or nuclear power production.
Long term fossil fuel prices are expected to continue to rise even in current environments
that are seeing low base commodity prices that are then elevated through transportation,
carbon tax and carbon credit purchase requirements. This gradual increase in the overall
cost of delivered fossil fuels means that conventional power production is becoming
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increasingly expensive and this is spurring a search for lower cost alternatives, such as
biomass fuel which, as opposed to wind and solar can be dispatched 24/7. Currently, the
difference in cost per GJ of thermal energy derived from fossil fuels versus biomass is
significant and growing with a current variation of approximately $4/GJ.
• Excess Wood Residue – As discussed, North America and especially Alaska have a
relatively abundant and sustainable woody biomass resource with a nominal value per GJ
when compared to fossil fuels. This “spread” as represented by the excess of fossil fuel
costs over wood fuel costs provides the economic returns required for the capital
deployment necessary to deploy biomass power generation.
The current consensus utility purchase price for marginal renewable power production takes into
account a higher value for wood ($30+/bdt) that will help ensure the long term supply of locally
harvested biomass from public lands.
4.4.4 Project Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered in
evaluating the project.
Please see the attached completed cost worksheet.
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 fossil fuel offset
• Potential fuel cost savings
• Potential additional annual incentives (i.e. tax credits)
• Potential additional annual revenue streams (green tags, etc)
• Discuss the non-economic public benefits to Alaskans over the lifetime of the project
The potential benefits of the deployment of the first viable and replicable community-scale
biomass CHP system in rural Alaska will be many and significant:
• Potential offset of 95% of the 2008 consumption of 1,268,323 gallons of diesel fuel
System designed to operate approximately 8,000 hrs/yr
Potential diesel fuel offset of 1,141,490 gallons
• Potential fuel cost savings of $3.9M/yr
12,000 BDT=24,000 Green Tons Biomass @ $47/T=$1.13M
vs. 1,268,323 gals diesel @ $3.29/gal = $4.17M
($3.29 average 2008 cost diesel fuel at generator)
• Potential fuel cost savings = $3+M/yr
• Possible Carbon Credit, Green Tag and/or other renewable energy incentive income
• System appears to qualify for biomass fuel feedstock cost subsidy of $45/BDT for 1st 2
years, from USDA Biomass Crop Assistance Program (BCAP, Fact sheet attached)
• System will demonstrate Alaskan leadership in clean energy technology deployment
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The System described in this proposal is the result of a two year research effort by Nexterra and
General Electric (GE) to demonstrate renewable power production using Nexterra’s commercially
proven gasification system and pre-commercial gas cleanup solution with GE’s commercially
proven Jenbacher internal combustion systems. This project will demonstrate the gasification of
woody biomass to produce a synthetic form of natural gas (syngas), the treatment of the syngas
in Nexterra’s proprietary cleaning/conditioning system, and the combustion of the clean syngas
in a high efficiency IC engine to generate power and heat.
The System is expected to set a new standard for converting biomass to heat and power with
system efficiencies of up to 75%. The System will generate meaningful reductions in GHGs of
approximately 1,300 tons per MW annually, and very low particulate emissions targeted at less
than 5mg/SCM. This System represents a step-change evolution in mid-scale biomass power
and heat production enabling cost effective distributed cogeneration systems at the scale of a
community or an individual industrial facility or public/private institution.
The System to be operated by AP&T for the Upper Tanana power grid will have a significant net
positive environmental impact and will be designed as a Biomass CHP showcase. The System
is designed to operate at low PM emissions levels, with no discharges of wastewater or other
pollutants. The System will result in truck traffic of two to three woodchip trucks/day (partially
offsetting diesel fuel deliveries) and the building will feature acoustically silenced equipment
operating at less than 50 decibels at 20 feet.
The System will be designed to deliver peak energy production of 30 MMBTU/hr (32 GJ/hr) using
locally sourced wood fuel delivered to the site. Energy produced by the System will displace
about 12,800 MWh of electricity per year resulting in net energy savings of approximately
$1.5M/yr and reduce GHG emissions from diesel combustion by more than 2,600 tons/yr of
CO2e. The System will also include heat recovery equipment to demonstrate global system
efficiency and which may be integrated into a district energy system. The System will be installed
as a turnkey operation and will operate in semi-automatic mode with minimal supervision
exceeding all local, state and federal emission requirements.
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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
If awarded, AP&T will be the sole recipient of the grant funding and will be responsible for overall
management of the project, operating the energy system including fuel supply, O&M,
consumables and qualified labor. Through a business agreement, the subcontractors Nexterra
and GE Energy will provide equipment, technical and operational support. Please refer to the
attached Equipment Appendix which lists Nexterra’s scope of supply. Please note that this
equipment list contains proprietary information.
Attached letter from Nexterra estimates O&M costs.
AP&T is committed to maintaining and operating the system once installed and commissioned.
This will be paid for out of AP&T’s general operating budget. As previously mentioned, there are
some minor operational issues that could arise. However, there are mitigation procedures and
plans in place to address theses issues. To reiterate, those technical risks and mitigation plans
are as follows:
o Identified Risk: High operating temperatures pose a risk to process equipment such as heat
exchangers and the cracking chamber and High operating temperatures of >2,000°F
increase the possibility of ash slagging at typical ash melting points.
Risk Mitigation: Potential reduction of demonstration/commercial scale process
temperatures at the expense of efficiency.
o Identified Risk: Incomplete destruction of tars by syngas cleaning/conditioning equipment.
Risk Mitigation: If the target post-cracking tar content is not achieved within the parameters
for IC engines then post-treatment regimes will be considered. These treatments may
include: WESPs, partial OLGA, expanded pre-coat filter systems, etc.
o Identified Risk: Phenols, BTEX (Benzene, Toluene, Ethylbenzene and Xylenes) remaining
in condensate water.
Risk Mitigation: If additional reductions become necessary, then post treatment of these
organics in the water phase via activated carbon or biological methods will be investigated
and may require additional process equipment and capital/operating costs. For the
demonstration plant, a regenerative thermal water purification system may reduce global
efficiency. A non-regenerative purification system is included in the Demo system capital
cost for a startup/flare oxidizer to continuously burn the contaminated water and recover
most of the heat as recoverable thermal energy.
Since this is a demonstration project, tracking and reporting the savings and benefits that the
system generates will be necessary. AP&T is fully committed to recording this information and
has made a preliminary agreement with UAF to evaluate the system, document results and
participate in evaluating the System, and disseminate the results. It is expected that GE Energy
and its Jenbacher subsidiary will publish the results of the Project throughout the GE community
and various global biomass to energy conferences. In addition, Nexterra will present the results of
the project to both domestic and international renewable energy audiences.
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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.
Some of the work necessary to ensuring the success of the Alaska Biomass Combined Heat &
Power Project has already been conducted. The U.S. Department of Energy grant that was
submitted in August, 2009 will precede this award, and once the AEA grant is awarded, if the
project is selected, the Project will already be well underway. As this is a complex and large-
scale project with multiple partners and entities involved, many steps will have already been
taken to move the project forward. These steps and actions include:
• Six months of strategic planning meetings to develop a project management plan,
commercialization plan and other vital planning actions
• Research on the viability of renewable community-scale biomass combined heat & power
in rural communities, specifically in the unique environment that is Alaska
• Established strategic partnerships with a variety of entities, including state, federal, and
private entities that all have resources that are needed for the project
• Submission of a $10,000,000 funding request to the U.S. Department of Energy which has
successfully passed the first administrative review and is now undergoing technical review.
AP&T has a proven track record as an electrical utility as well as a developer of hydroelectric
and other renewable energy projects. AP&T currently operates five hydroelectric projects, two
storage and three run-of-river, with the Kasidaya Creek Hydro Project under construction. Since
2001 AP&T has installed over 75 miles of 34.5 kV transmission line on Prince of Wales Island,
Alaska, all with in-house personnel. Many more miles of transmission lines, substations and
transformers have been constructed since then. During 2005-2006, AP&T also designed,
engineered, permitted, and constructed the 2MWe run-of-river South Fork Hydroelectric Project.
Several of the projects were funded by grants, demonstrating significant grant administration
experience. AP&T is familiar with and has successfully obtained AEA funding in the past, and
has regularly met funding requirements and reports.
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.
Please see attached letters of support.
No opposition has been identified, and the plan is to reach out to any potentially concerned
citizens or groups to invite them to the public meetings and listen to their concerns. We believe
that the demonstrable facts about this project will answer most concerns. We also feel that in
many cases, genuine acknowledgment of all concerns and points of view can often ameliorate
potential opposition.
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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
Grant request is $4,505,605. The following is the project budget narrative. Please see the
attached grant budget form for a detailed breakdown of funds requested from AEA for this
Phase IV Construction project, milestones that are linked with each budget category, and all
matching funds that will be contributed to the overall project cost.
Budget Narrative
A. – B. Personnel :
Alaska Power and Telephone (AP&T) has allocated labor costs for eight (8) key staff members
who will spend time on the project and one (1) secretarial staff; these individuals are currently
employed with AP&T. Costs for staff have been proposed for the DOE Grant, and not for this
AEA request.
Fringe Benefits:
For fringe benefits, AP&T employs a direct labor allocation where the relationship of all
budgeted employee benefits to budgeted labor expense is estimated at 50% and applied to
direct labor charged. The expenses included in the allocation are: Payroll taxes, Health
Insurance premiums, Employee Stock Ownership Plan contributions, workmen’s compensation,
state unemployment insurance, vacation, sick pay, and holiday pay. The percentage applied
during the year to direct labor cost is 50%. That total fringe allocation amount is then “trued-up”
at year end to the actual fringe expense incurred and appropriate adjustment is made. The
true-up adjustment generally is in the few percentage points range.
Year One: $432,802.50 Year Two: $432,802.50
Total AEA Share for Personnel and Fringe Benefits: $0
Total Match Share, (DOE Grant): $865,605
C. Equipment:
Heavy equipment will be needed for handling large logs and will be purchased by AP&T as
match; One (1) Hitachi Log Loader, $250,000 and one (1) Cat 966 Loader with fork and bucket,
$300,000. A RotoChopper for chipping the logs will be provided by Tok Umbrella Corporation
as match for project use; the value of the match for the use of the machine is $257,000. Letters
of commitment are included with this proposal.
Total AEA Share for Equipment: $0
Total Matching Share: $807,000
D. Travel:
Domestic travel costs are allocated for the PI and key staff for travel to Nexterra’s offices for
training and on site demonstrations/tours of the proposed system. In addition, travel is expected
for key staff to attend conferences and planning meetings during each year of the project.
AP&T will provide all travel expenses as match to the project. Due to the rural Alaskan location
of the Project site, travel costs can be high; the closest commercial airport is 200 miles from
Tok.
Year 1 Travel $25,000 Year 2 Travel $18,000
Total AEA Share for Travel: $0
Total Matching Share: $43,000
E. Participant / Trainee Costs
None requested.
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F. Other Direct Costs
Materials and Supplies: None Requested
Publication Costs: Costs for industry journal publications on the project will be funded by
the DOE Grant for four (4) professional reports in Year 2 only: $4,000
Consultant Services are allocated for coordination and management of the project activities,
reports, and for monitoring the implementation schedule. $100,000 each year. AP&T will
pay for 50% of these costs as match to the project, and the other 50% will be provided
through the DOE Grant.
ADP/Computer Services are anticipated for data management and reporting are estimated
at $14,395 for the project, provided by AP&T as in-kind match to the project.
Sub awards/Contractual Costs will be allocated for a contract with Nexterra Systems, Corp
for the purchase and installation of the proposed CHP system. Total contract cost for the
2-Year Project is $15,300,000. The submitted DOE Grant will provide $8,030,395; AP&T
will apply for additional loans and grants to provide an additional $4,000,000 in cash and in-
kind services for the system installation and demonstration; this request to AEA will
provide the balance of the system costs of $3,269,605.
Year 1: $8,800,000 Year 2: $6,500,000
Two (2) buildings will be needed for the project; this request to AEA will provide $1,256,000
for engineering services, labor, materials and construction, and the DOE Grant will provide
remaining funds for materials for the buildings, ($1,000,000) which are:
Total cost for the Year 1 construction is estimated as follows:
• CHP System Building, 17,600 sqf x $60 sqf Total Cost to Build: $1,056,000
• Wood Storage Shed, 30,000 sqf x $40 sqf Total Cost to Build: $1,200,000
Land will be needed for the demonstration site, and AP&T will provide the land as match to
the project. Total value of the land is $160,000, allocated in Year 1.
Woody biomass will be needed for the demonstration of the system, and 1000 tons of
harvested decked wood will be provided as match by the Tok Community Umbrella
Corporation. Total value, including cost of harvesting and delivery is $175,000 per year for
each year of the project.
Total AEA Share for Other: $4,525,605
Total Match Share: $13,778,790
G. Direct Costs AEA Request: $4,505,605 Match: $15,494,395
H. Indirect Costs None Requested
I. Total Direct and Indirect Costs AEA Request: $4,505,605 Match: $15,494,395
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Cost Sharing
The total cost share contribution for the 2-Year Project is $15,494,395.
Three companies/agencies are providing cost share amounts to this project:
1. Alaska Power and Telephone Company (applicant) will provide $4,887,395 cash and in-kind
match for equipment and materials, labor and construction costs for the new buildings,
consultant costs, computer and data management costs, travel expenses, installation costs, and
land for the proposed CHP demonstration project.
2. Tok Community Umbrella Corporation (TCUC) has committed an in-kind contribution of
$607,000. This includes costs for use of the RotoChopper and harvested decked wood that is
already in place. Once chipped it will be stored in the Wood Storage shed .
3. U.S. Department of Energy (Federal) - Note: DOE funds have been requested and are
pending review and award. The request was submitted in August 2009 and is expected to be
awarded in December 2009 for a project start date of January, 2010. Amount of request:
$10,000,000.