HomeMy WebLinkAboutHunter Creek Hydro GrantApp3EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 1 OF 8
AEA-10-015 - RENEWABLE ENERGY GRANT
APPLICATION
H UNTER C REEK H Y DROELECTRIC P ROJECT
November 10, 2009
prepared by
polarconsult alaska, inc.
1503 West 33rd Avenue, Suite 310
Anchorage, Alaska 99503
Phone: (907) 258-2420
prepared for
EKLUTNA INC .
16515 Centerfield Dr, Suite 201
Eagle River, AK 99577
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 2 OF 8
Table of Contents
SECTION 1. - APPLICANT INFORMATION ...................................................................3
1.1. Applicant point of contact ......................................................................................3
1.2. Applicant minimum requirements ..........................................................................3
SECTION 2. - PROJECT SUMMARY .............................................................................4
2.1. Project Title ...........................................................................................................4
2.2. Project Location ....................................................................................................4
2.3. Project Type ..........................................................................................................4
2.3.1. Renewable Resource Type ............................................................................4
2.3.2. Proposed Grant Funded Phase(s) for this Request (Check all that apply).....4
2.4. Project Description ................................................................................................4
2.5. Project Benefit.......................................................................................................4
2.6. Project Budget Overview.......................................................................................4
2.7. Cost and Benefit Summary ...................................................................................5
SECTION 3. - PROJECT MANAGEMENT PLAN ............................................................5
3.1. Project Manager....................................................................................................5
3.2. Project Schedule ...................................................................................................5
3.3. Project Milestones.................................................................................................5
3.4. Project Resources.................................................................................................5
3.5. Project Communications .......................................................................................5
3.6. Project Risk ...........................................................................................................5
SECTION 4. - PROJECT DESCRIPTION AND TASKS ..................................................6
4.1. Proposed Energy Resource ..................................................................................6
4.2. Existing Energy System ........................................................................................6
4.2.1. Basic configuration of Existing Energy System ..............................................6
4.2.2. Existing Energy Resources Used ...................................................................6
4.2.3. Existing Energy Market...................................................................................6
4.3. Proposed System..................................................................................................6
4.3.1. System Design ...............................................................................................6
4.3.2. Land Ownership .............................................................................................7
4.3.3. Permits ...........................................................................................................7
4.3.4. Environmental ................................................................................................7
4.4. Proposed New System Costs (Total Estimated Costs and proposed Revenues).7
4.4.1. Project Development Cost .............................................................................7
4.4.2. Project Operating and Maintenance Costs .....................................................7
4.4.3. Power Purchase/Sale .....................................................................................7
4.4.4. Cost Worksheet ..............................................................................................7
SECTION 5. - PROJECT BENEFIT.................................................................................7
SECTION 6. - Sustainability ............................................................................................7
SECTION 7. - Readiness and compliance with other grants ...........................................7
SECTION 8. - Local support ............................................................................................8
SECTION 9. - GRANT BUDGET .....................................................................................8
SECTION 10. - ADDITIONAL DOCUMENTATION AND CERTIFICATION ....................8
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 3 OF 8
SECTION 1. - APPLICANT INFORMATION
Name Eklutna Inc.
Type of Entity: Alaska Native Corporation
Mailing Address 16515 Centerfield Dr, Suite 201
Eagle River, AK 99577
Physical Address 16515 Centerfield Dr, Suite 201
Eagle River, AK 99577
Telephone 696-2828
Fax 696-2845
Email info@eklutnainc.com
1.1. Applicant point of contact
Name Jim A. Arnesen
Title: Corporate Lands & Regulatory Manager
Mailing Address 16515 Centerfield Drive, Suite 201
Eagle River, Alaska 99577
Telephone 696-2828
Fax 696-2845
Email Jim@eklutnainc.com
1.2. Applicant minimum requirements
As an Applicant, we are: (put an X in the appropriate box)
An electric utility holding a certificate of public convenience and necessity under
AS 42.05, or
X An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
TBA 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 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 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 We intend to own and operate any project that may be constructed with
grant funds for the benefit of the general public.
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 4 OF 8
SECTION 2. - PROJECT SUMMARY
2.1. Project Title
Hunter Creek Hydroelectric Project.
2.2. Project Location
The project is located on Hunter Creek near the Knik River. Refer to the USGS
Anchorage B-5 Quadrangle for a map of the location.
2.3. Project Type
Put X in boxes as appropriate
2.3.1. Renewable Resource Type
Wind Biomass or Biofuels
X 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)
X Reconnaissance Design and Permitting
Feasibility Construction and Commissioning
Conceptual Design
2.4. Project Description
The Hunter Creek Hydroelectric Project is a potential hydroelectric resource in the
Matanuska-Susitna valley to may be able to economically produce 6.5 MW or more.
This phase of the project, a reconnaissance study, involves investigating the resource to
determine if a project is viable and to also perform preliminary feasibility work on the
project location, size, and resource availability.
2.5. Project Benefit
Completion of this study will benefit the railbelt utilities because it will provide the
information needed to determine whether a viable hydroelectric project can be
constructed at Hunter Creek. The public benefit is the cost to perform the study.
Other benefits include added renewable energy capacity for the railbelt, generation
diversity, and reduced consumption of dwindling natural gas supplies in Cook Inlet.
2.6. Project Budget Overview
The cost of the reconnaissance study will be $100,000. Of this portion, Eklutna Inc. will
fund provide $8,000 in in-kind work and an $8,000 cash match.
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 5 OF 8
2.7. Cost and Benefit Summary
Grant Costs
2.7.1 - Grant Funds Requested in this application $84,000
2.7.2 - Other Funds to be provided (Project match) $16,000
2.7.3 - Total Grant Costs (sum of 2.7.1 and 2.7.2) $100,000
Project Costs & Benefits
2.7.4 - Total Project Cost (summary from cost worksheet) $25,000,000
2.7.5 - Estimated direct Financial Benefit (savings) $50,000,000
2.7.6 - Other Public Benefit (explain in section 5) $0
SECTION 3. - PROJECT MANAGEMENT PLAN
3.1. Project Manager
Jim Arnesen will be the project manager for Eklutna, Inc. Jim will be responsible for
hiring consultants and overseeing the work, processing invoices, interfacing with the
grant administrators, and ensuring compliance with all the grant conditions.
3.2. Project Schedule
The study, because of the collection of hydrology data, will take approximately one year
from the time the grant is awarded and a consultant is retained to perform the work.
3.3. Project Milestones
The basic project milestones, based on the schedule shown above, are the following:
· Contract with consultant for the study.
· Perform the initial site visit and install monitoring equipment.
· Collect hydrologic data to evaluate the resource.
· Develop a project map showing possible project alternatives.
· Provide a final report summarizing the findings and presenting the data
collected.
3.4. Project Resources
Eklutna, Inc. plans to contract with Polarconsult to perform the reconnaissance study
work. A Polarconsult brochure is attached.
3.5. Project Communications
Jim Arnesen will be the primary point of communications. He will coordinate all efforts
between the AEA, Eklutna, and the consultant.
3.6. Project Risk
The project only involves data collection and evaluation of the potential resource. Lack
of funding simply halts the effort and no party incurs risk.
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 6 OF 8
SECTION 4. - PROJECT DESCRIPTION AND TASKS
4.1. Proposed Energy Resource
The Hunter Creek hydroelectric project is characterized by the following preliminary
configuration:
Hunter Creek Data
cross basin pipeline 13,030 ft
main pipeline 7,920 ft
West Basin area 35.4 sq mi
East Basin area 23.3 sq mi
Total basin area 58.6 sq mi
transmission line - Friday creek 14.76 mi
transmission line - knik 11.07 mi
Static Head 700 ft
Cross Pipeline Diameter 36 in
Flow 60 cfs
Headloss 53 ft
Main Pipeline Diameter (48") 48 in
Flow 160 cfs
Max Headloss 56 ft
Efficiency 75%
Power 6,500 kW
4.2. Existing Energy System
4.2.1. Basic configuration of Existing Energy System
The project is located in the south central railbelt.
4.2.2. Existing Energy Resources Used
The south central railbelt relies predominantly on natural gas for electrical energy
generation.
4.2.3. Existing Energy Market
The project is located in the south central railbelt. There is clearly a desire for
renewable energy projects to be added to this area but the energy market for them is
not well defined at this time. For the economic analysis in this application, an energy
rate of $0.10 per kWh is assumed.
4.3. Proposed System
4.3.1. System Design
The physical features of the Project include combining the two forks of Hunter Creek
into a single pipeline at an elevation of approximately 1000 feet. The powerhouse is
located at an elevation of approximately 300 feet.
EKLUTNA, INC. RENEWABLE ENERGY FUND GRANT APPLICATION
HUNTER CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 7 OF 8
4.3.2. Land Ownership
Most of the project is located on land owned by Eklutna, Inc. This study will also
evaluate other land ownership once project locations are evaluated.
4.3.3. Permits
This study will include preliminary analysis of permit issues and compliance
requirements.
4.3.4. Environmental
This study will include preliminary analysis of potential environmental impacts
associated with the project.
4.4. Proposed New System Costs (Total Estimated Costs and proposed
Revenues)
4.4.1. Project Development Cost
The reconnaissance study wi ll provide preliminary cost estimates. The cost worksheet
assumes a total development cost of about $3,850 per kW of installed capacity.
4.4.2. Project Operating and Maintenance Costs
The reconnaissance study will provide preliminary cost estimates.
4.4.3. Power Purchase/Sale
For the purposes of economic analysis, it is assumed that energy from this project can
be marketed at a rate of $0.10 per kWh. The feasibility study and future developments
with other renewable energy projects in the railbelt will, in the near future, determine
whether this an appropriate rate.
4.4.4. Cost Worksheet
Attached is a completed cost worksheet for the project.
SECTION 5. - PROJECT BENEFIT
The reconnaissance study will provide a preliminary analysis of the benefits of the
project. For this application, the presumed project benefit is based on the energy it
produces valued at $0.10 per kWh, less the operation and maintenance costs,
calculated as a present worth over a 30 year period with a discount rate of 3%.
Additional benefi ts including renewable energy tax credits and carbon credits are not
included in the benefit.
SECTION 6. - SUSTAINABILITY
Hydroelectric projects have proven to be, and still are, the most sustainable power
generation investment throughout Alaska. No other generation technology has come
close to having the historical longevity and low maintenance that hydroelectric projects
do. Once the hurdle of the initial capital construction cost is overcome, the projects are
successfully maintained and renewed by all classes of communities in Alaska.
SECTION 7. - READINESS AND COMPLIANCE WITH OTHER GRAN TS
This study could begin immediately after award of the grant.
REPRESENTATIVE HYDROELECTRIC PROJECTS
polarconsult alaska, inc.
OOLLAARRCCOONNSSUULLTT AALLAASSKKAA,, IINNCC.., has extensive experience designing, permitting, constructing and
operating hydroelectric plants in Alaska. Our design professionals have been involved in hydro
in Alaska since 1966, and collectively have over 95 years of exper ience in the field.
SSEELLEECCTTEEDD HHYYDDRROO PPRROOJJEECCTTSS BBYY PPOOLLAARRCCOONNSSUULLTT EENNGGIINNEEEERRSS
P
Project Design
Capacity
Type of
Project Location Services Rendered
Mc Roberts
Creek 100 kW Run of River Palmer, AK Design, Permitting, Construction, Operation,
Owner.
Roy's Creek /
Crooked Creek 80 kW Run of River Elfin Cove, AK Reconnaissance and Feasibility Study,
Preliminary Design, FERC Permitting.
Knutson Creek 125 kW Run of River Pedro Bay, AK Reconnaissance Study.
Fourth of July
Creek 5,400 kW Run of River Seward, AK Reconnaissance and Feasibility Study, Owner.
Fishhook Creek 2,000 kW Run of River Hatcher Pass, AK Reconnaissance and Feasibility Study,
Permitting, Design, Construction, Owner.
Indian River 125 kW Run of River Tenakee Springs, AK Feasibility Study, Preliminary Design,
Permitting.
Glacier Fork 80,000 kW Storage Knik, AK Reconnaissance and feasibility study.
Indian Creek 60 kW Storage Chignik, AK Permitting, FERC Relicense.
Larsen Bay 475 kW Run of River Larsen Bay, AK Design, Permitting.
Old Harbor 500 kW Run of River Old Harbor, AK Feasibility Study, Design, FERC Permitting.
O’Brien Creek /
5 Mile Creek 400 kW Run of River Chitna, AK Feasibility Study, Preliminary Design.
Lace River 4,950 kW Storage Near of
Juneau, AK Preliminary Design, FERC Permitting.
Chuniisax
Creek 280 kW Storage Atka, AK Feasibility Study, Preliminary Design,
Permitting.
Angoon 600 kW Storage Angoon, AK Feasibility Study, Preliminary Design.
IINNDDIIAANN CCRREEEEKK HHYYDDRROO FFEERRCC LLIICCEENNSSIINNGG
PPOOLLAARRCCOONNSSUULLTT managed the FERC licensing process for
the owner of Indian Creek Hydro, a 60-kW installation
located in Chignik, Alaska. The multi-year FERC
licensing process required significant effort and
coordination relating to the development of the
Environmental Assessment. Key activities included:
Ø NEPA scoping meetings,
Ø Stream gauging and fish surveys,
Ø Geomorphological surveys of Indian Creek, and
Ø Preparation of License Application and EA.
REPRESENTATIVE HYDROELECTRIC PROJECTS
MMccRROOBBEERRTTSS CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT principals designed, built, own
and operate the McRoberts Creek Hydro, located
near Palmer, Alaska. The 100-kW run-of-river
project has delivered power to the Matanuska
Electric Association grid since 1991.
The McRoberts Project is an excellent example
of renewable energy systems benefiting Alaskan
communities. The project has improved
recreational access to the Matanuska Peak area,
operates in harmony with the environment, and
provides renewable energy to local homes and
businesses.
OO’’BBRRIIEENN CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT completed a conceptual design for
the Alaska Energy Authority to evaluate a run-of-
river hydroplant on O’Brien Creek to serve the
communit y of Chitina, Alaska on the Copper River.
Key activities included:
Ø Paper study to define project parameters,
Ø Handling and analysis of large LIDAR data set
to finalize a conceptual design,
Ø Field reconnaissance to evaluate intake
locations and penstock corridors, and
Ø Preliminary project cost estimate.
CCHHUUNNIIIISSAAXX CCRREEEEKK HHYYDDRROO
PPOOLLAARRCCOONNSSUULLTT designed and permitted a 280-kW run-of -river
hydro plant to offset costly diesel-electric power for the village of
Atka in the Aleutian Islands. Key project features include:
Ø A small concrete dam,
Ø 1,000-foot HDPE penstock, and
Ø Cross-flow turbine.
The project, to be completed in 2010, is expected to significantly
reduce power rates in the village.
polarconsult alaska, inc.
energy systems – environmental services – engineering design
1503 West 33rd Avenue, Suite 310 tel: 907.258.2420
Anchorage, Alaska 99503 fax: 907.258.2419
Internet Website: http://www.polarconsult.net
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 1 10-7-09
Please note that some fields might not be applicable for all technologies or all project
phases. The level of information detail varies according to phase requirements.
1. Renewable Energy Source
The Applicant should demonstrate that the renewable energy resource is available on a
sustainable basis.
Annual average resource availability. 50% est (reconnaissance study to determine)
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation and Usage
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other
ii. Rated capacity of generators/boilers/other
iii. Generator/boilers/other type
iv. Age of generators/boilers/other
v. Efficiency of generators/boilers/other l
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor
ii. Annual O&M cost for non-labor
c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the
Railbelt grid, leave this section blank)
i. Electricity [kWh]
ii. Fuel usage
Diesel [gal]
Other
iii. Peak Load
iv. Average Load
v. Minimum Load
vi. Efficiency
vii. Future trends
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric
Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power.
Renewable Energy Fund Round 3
Project Cost/Benefit Worksheet
RFA AEA10-015 Application Cost Worksheet Page 2 10-7-09
3. Proposed System Design Capacity and Fuel Usage
(Include any projections for continued use of non-renewable fuels)
a) Proposed renewable capacity
(Wind, Hydro, Biomass, other)
[kWh or MMBtu/hr]
6,500 kW
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 28,500,000 kWh (estimated)
ii. Heat [MMBtu]
c) Proposed Annual fuel Usage (fill in as applicable)
i. Propane [gal or MMBtu]
ii. Coal [tons or MMBtu]
iii. Wood [cords, green tons, dry tons]
iv. Other
4. Project Cost
a) Total capital cost of new system $24,000,000
b) Development cost $1,000,000
c) Annual O&M cost of new system $300,000
d) Annual fuel cost None
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 28,500,000 kWh
ii. Heat
iii. Transportation
b) Price of displaced fuel $0.10 per kWh
c) Other economic benefits
d) Amount of Alaska public benefits $2,850,000 per year
6. Power Purchase/Sales Price
a) Price for power purchase/sale 0.10 $/kWh
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio $50,000,000 / $25,000,000 = 2.0
Payback
Renewable Energy Fund Grant Round III Grant Budget Form 10-7-09
Milestone or Task Anticipated
Completion Date
RE- Fund Grant
Funds
Grantee
Matching Funds
Source of Matching
Funds: Cash/In-
kind/Federal
Grants/Other State
Grants/Other
TOTALS
Contract with consultant for the study. $8,000 Cash and In-kind $8,000
Perform the initial site visit and install monitoring
equipment. $20,000 $4,000 Cash and In-kind $24,000
Collect hydrologic data to evaluate the
resource. $32,000 $4,000 Cash and In-kind $36,000
Develop a project map showing possible project
alternatives. $12,000 $0 Cash and In-kind $12,000
Provide a final report summarizing the findings
and presenting the data collected. $20,000 $0 Cash and In-kind $20,000
TOTALS $84,000 $16,000 $100,000
Budget Categories:
Direct Labor & Benefits $16,000 $16,000
Travel & Per Diem $0
Equipment $0
Materials & Supplies $0
Contractual Services $84,000 $84,000
Construction Services $0
Other $0
TOTALS $84,000 $16,000 $100,000
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed