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HomeMy WebLinkAboutLetters of SupportNational Renewable Enemy Laboratory October 30, 2009 Alaska Power and Telephone, Tok PO Box 207, Milepost 1314 AK Highway Tok, AK 99780 Dear AP&T: This letter is to support your "Alaska Biomass CHP Demonstration Project" proposal being submitted to the Alaska Energy Authority under the Renewable Energy Fund round 3 solicitation. The National Renewable Energy Laboratory (NREL) is the nation's primary laboratory for energy efficiency and renewable energy research and development. NREL has been following the technology readiness of the gasification and combined heat and power systems you propose and believe they could provide an excellent fit for some Alaska applications. More broadly, it is necessary to field test and demonstrate the viability of biomass energy conversion technologies in rural Alaska. The technology must meet the requirements of cold climate operations, and must include heating in addition to electric power generation. We believe AP&T is an excellent candidate to implement this effort, which is designed to augment or replace existing diesel generation. By considering the local social and economic implications of such a project, widespread benefits and long-term project success are more likely. We wish you the best in pursuing this project and hope to be able to provide additional resources to assist the project team. Please contact me if you have any questions. Sincerely, -•'i Brian Hirsch, Ph.D. Senior Project Leader — Alaska Bfim.Hirsch@nrel.gov 420 L Street, Suite 305 Anchorage, AK 99501 Ph: 907.271.3633 www.nrel.gov ..ALASKA Abdo Indmtria! Development /41K::::) ENERGY AUTHORITY and 8cportAutlmrhy July 24, 2009 Robert Grimm President and CEO Alaska Power & Telephone Company PO Box 3222 Port Townsend, WA 98368 Dear Mr. Grimm: The Alaska Energy Authority (AEA) is pleased to affirm our suppoi t for your proposed biomass -fired combined heat and power facility at Tok. As lead state agency for energy planning and development, AEA. recognizes the potential benefit that biomass and other renewable energy sources can provide--lower-cost and stably priced energy, local economic development, and reductions in greenhouse gas production. Given AP&T's track record as an innovative and capable utility, ample and accessible biomass resource in the Tok area, high community support, and favorable economics, we feel that the project holds substantial promise. We note that the proposed facility is consistent with Tok-area findings in the State's Energy Plan Guides and the Governor's stated intent of renewables producing 50% of Alaska's power by 2025. Rural Alaska serves as an important' demonstration ground for small-scale renewable - distributed generation. Depending on future diesel prices and system cost/performance assumptions, we estimate that biomass -fired CEP is economically feasible in 7 to 46 rural Alaskan communities2. Please let me know if Z can provide additional information to individuals reviewing your proposal. sine y,mp Program Manager Alternative Energy and Energy Efficiency ' ht�t ://www.akenerl =thoriw.or,.IPDFoA20 es/AKo/o2oEnerw/o2oFinai.Dff 2 hMi ://www_iser ua&alaska.edu Publications/AES Crimp Colt Foster.f 813 West Northern Lights Boulevard . Anchorage, Alaska 99503-2495 www.aidea.org • 9071771-3000 . FAX 907I771-3044 *-Toll Free (Alaska Only) 8881300-8534 • www.akenergyauthorky.org x � ikCEP AIas4;a Ccn�-er ;: r Fneray anti Po .,,er November 1, 2009 To: Alaska Energy Authority Renewable Energy Fund Review Committee From : Gwen Hold mann, Director, Alaska Center for Energy anid Power Re: Proposal "Alaska Biomass CHP Demonstration Project" To Whom It May Concern: Please accept this letter in support of the Alaska Power & Telephone proposal titled "'Alaska Biomass CHP Demonstration Project," which they are submitting under Round III of the Renewable Energy Fund. Biomass CHP projects such as the one proposed by AP&T afford the best opportunity for medium sized communities to displace diesel fuel for both heating and electricity. While CHP projects have been developed in many other places in the world, they have not recently been demonstrated in Alaska. The technology proposed by AP&T, including installation of a biomass gasification system connected to an internal combustion engine with heat capture will allow maximum system efficiency, using off -the -shelf components. In addition, by installing the system on the road system and having a well - organized utility such as AP&T manage the project will give this technology the best chance at a successful pilot project. A large number of communities in Alaska have been identified as having economically developable biomass resources by the Alaska Energy Authority. Should this project prove successful, it could be duplicated in other regions. Sincerely, r 7L, Gwen Holdmann Director, Alaska Center for Energy and Power University of Alaska Fairbanks gwen.holdmann@alaska.edu 907.590.0879 Alaska Housing Finance ARXX Building Products BP Capitol Glass/ Northerm Windows Demilec, LLC DuPont GW Scientific Hebert Homes Hoffer Glass Insulfoam, LLC MaxAmum Construction Inc. Pioneer Glass Siemens Spenard Builders Supply Thermo-Kool of Alaska Denali State Bank Hall Quality Homes Heat -Line, A Division of Christopher MacLean Lucky Distrihuting/ Monitor Products Inc Mt McKinley Bank NCP Design/Build, Ltd. Rasmuson Foundation Remote Power Inc. ilsihelli Foundation Wallace Research Foundation Wells Fargo Bank Chair N. Claiborne Porter, Jr.,AIA Vice -Chair Alan Wilson Treasurer Brent LeValley Secretary Richard Green Members Dave Miller Jess Dilts Jess Hall Chuck Renfro Kelley Roth Bill Semple John Straube, Ph.D- A COLD CLIMATEHOUSINGRESEARCH CENTER. � ,tCCHRC - TO: AEA Renewable Energy Fund Round III RE: proposal "Alaska Biomass CHP Demonstration Project" The Cold Climate Housing Research Center (CCHRC) is pIcased to express its support of the proposal titled Alaska "Biomass CHP Demonstration Project," as proposed by Alaska Power & Telephone for grant funding to the Alaska Energy Authority. The potential impact this kind of combined heat and power (CHP) can have in rural communities with sustainable biomass resources is profound. Alaska leads the United States in annual heating degree days at 11,584. Many of its rural communities are in crisis situation brought on by the cost of fossil fuels, with some paying in excess of $6.00 per gallon for diesel and $1.00 per kWh for electricity. More than 100 rural communities in Alaska have potential access to biomass, providing extensive markets for CHP systems. Alaska needs to explore and demonstrate biomass CHP systems that can utilize forest and biogenic waste to power and heat rural communities at a lower cost of energy than fossil fuels. These systems produce an additional benefit of creating local jobs and retaining money in the community. The technologies to address the high costs of energy in Alaska are being developed at a rapid pace. It is critically important to test, demonstrate, and deploy the technologies that prove practical in the Alaska environment. The successes of the "Alaska Biomass CHP Demonstration Project," would provide pre -commercial systems that can become operational, affordable, and dependable. There is urgency to finding solutions quickly. The very economic and physical survival for many communities is at stake. Sincerely, Jack Hebert President/CEO P.O. Box 82489, Fairbanks, AK 99708 + 907.457.3454 + Fax: 907.457.3456 www.cchrc.org Office of the Dean & Director WV. P.O. Box 757140 Fairbanks, Alaska UNMRSISITY OFALASKA M75-7140 FA I R BA N KS Phase: (907) 474-7083 School of Natural Resources and Agricultural Sciences Fax: (907) 474-6567 Agricultural and Forestry Experiment Station Small: fysrlras@uaf.edu MEMORANDUM TO: Alaska Energy Authority FROM: Carol E. Lewis Dean an d d Director Lit - RE: DATE: November 9, 20Q9 Support letter for Alaska Power & Telephone and Dalson Energy This letter is in support of the proposal titled "Alaska Biomass CHP Demonstration Project," as proposed by Alaska Power & Telephone, and Dalson Energy to the Alaska Energy Authority under the Renewable Energy Fund — Round III. The proposal supports advancing the research, development and implementation of potentially commercial renewable energy technologies. The School of Natural Resources and Agricultural Sciences and the Agricultural and Forestry Experiment Station, as a part of their research, education, and outreach in the supply side of biomass that can be used in energy generation, appreciates the opportunity to support this project and looks forward to future work with Dalson Energy to assure that appropriate biomass management is in place that will lead to a continuous supply for the new technology for power generation proposed here. Alaskans experience high energy costs and isolated generation grids. Emerging technologies that may not yet be viable elsewhere should be economical today in rural Alaska. Alaska also has significant renewable energy resources, including woody biomass. In order to make the most effective use of these resources, it is necessary to field test and demonstrate the viability of biomass energy conversion technologies in rural Alaska. The technology must meet the requirements of cold climate operations. and must include heating in addition to electric power generation. This project is designed to demonstrate the operational and financial viability of a gasification system connected to an IC engine with heat capture. It will be designed to augment or replace existing diesel generation. This project also considers the local social and economic implications of such a project, which are critical to ensuring long-term project success. The proposed project dovetails with a number of ongoing initiatives in Alaska, including assisting with community energy planning in rural communities and assessing existing biomass systems. We hope you will consider funding this project, and are willing to Iend whatever resources we can make available to assist the project team. la nexterra July 29, 2009 Robert Grimm Alaska Power and Telephone Port Townsend, Wa Nexterra Reference: 09018-2 Re: Letter of Commitment for Internal Combustion Engine Demonstration vroiect Dear Robert, Nexterra is pleased to provide you with a letter of commitment for the demonstration of our new advanced biomass gasification application that will convert woody biomass into renewable heat and electricity in Tok, Alaska. Nexterra will continue to support AP&T's efforts to receive grant funding for this project. 1. Introduction Nexterra Systems Corp. is a leading biomass gasification technology provider. Our fixed bed updraft gasification technology is commercially proven for thermal applications. Customers to date include the University of South Carolina, Tolko Industries, and the US Department of Energy's Oak Ridge National Labs. Alaska Power and Telephone (AP&T) is a leading utility based in Alaska. AP&T is interested in being a 2 MWe demonstration site for a new cogeneration application developed by Nexterra which will combine Nexterra's gasification equipment with a GE Jenbacher high efficiency engine. 2. General Description Nexterra has a strategic relationship with GE Energy and GE Jenbacher to commercialize a new, transformative biomass power solution that combines Nexterra's gasification and syngas conditioning technologies with GE's Jenbacher internal combustion engines. The resulting power system will be significantly more efficient, cost -competitive and cleaner than conventional biomass combustion -to -steam power plants. Once commercial, this application has the potential to make biomass electricity economically viable in the 2 — 10 MWe scale compared to conventional biomass to steam power which is typically economically viable only above 20 or 30 MWe. The application will be based on Nexterra's commercial biomass gasification technology which converts woody biomass into a clean synthesis gas or "syngas". For the cogeneration application the syngas would then be cleaned, cooled and conditioned to upgrade it to engine quality gas. This conditioned gas will then be injected into a Jenbacher special gas engine, capable of producing approximately 2.0 MW of nominal power, 9.5 MMBtulhr thermal energy based upon waste heat recovery from the engine stack and cooling circuits. The power generation system would be installed as a demonstration project for Nexterra to co -develop and refine. The equipment would carry warranties on components. Guarantees for uptime or capacity would be limited. Nexterra Systems Corp. Suite 1"00 - 650 West Georgia Street Wephone 604,67.2501 PO Cox ,1582 Va-rouver 6C Try?1 free 1.966.217 � 159 V66 4N3 Canada Facsim ie 604.E37.2506 Mvvv.nextarra.ca ^A11k nexterra a new era of energysecurity Y 3. Schedule Given the demonstration nature of this project we anticipate that it will take 21-24 months to take the project through the initial project design phase to the completion of the project. Key phases will be: 1. Project Design — 6 months a. Preliminary Project Design, Permitting, and Consultation 2. Project implementation --16 months a. Engineering Design and Technical Integration b. Procurement and Fabrication c. Installation and Commissioning 3. Analysis, Reporting and Knowledge Transfer — 3 months a. System Optimization, Performance Testing, Analysis and Reporting We feel that this project poses a great opportunity for Alaska to position themselves as a leader in renewable energy and we look forward to continuing to explore this grant application with you. Please feel free to contact me if you have any questions or require additional information. Sincerely, Jonathan Rhone President and CEO Nexterra Systems Corp.