HomeMy WebLinkAboutVirgin Creek Hydro AppBERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 1 OF 8
SECTION 1. - APPLICANT INFORMATION
Name Bering Pacific Engineering
Type of Entity: Private Corporation
Mailing Address 8309 Sand Lake Rd
Anchorage, AK 99502
Physical Address 8309 Sand Lake Rd
Anchorage, AK 99502
Telephone 245-8031
Fax
Email Daniel.Hertrich@gmail.com
1.1. Applicant point of contact
Name Daniel Hertrich
Title: Partner
Mailing Address 8309 Sand Lake Rd
Anchorage, AK 99502
Telephone 245-8031
Fax
Email Daniel.Hertrich@gmail.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.
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 2 OF 8
SECTION 2. - PROJECT SUMMARY
2.1. Project Title
Virgin Creek Hydroelectric Project.
2.2. Project Location
The project is located on Virgin Creek near Turnagain Arm in Girdwood . Refer to the
USGS Seward D-6 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)
Reconnaissance Design and Permitting
X Feasibility Construction and Commissioning
Conceptual Design
2.4. Project Description
The Virgin Creek Hydroelectric Project is a potential hydroelectric resource in the
Girdwood valley with a capacity of 1.2 MW. A feasibility study is required to determine
the appropriate project size and to scope development issues.
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 Virgin Creek. The public benefit is the cost to perform the study.
In terms of a completed project, the benefits include added renewable energy capacity
for the railbelt, a source of income for the Heritage Land Bank, increased recreational
opportunities, improved grid efficiency, generation diversity, and reduced consumption
of dwindling natural gas supplies in Cook Inlet.
Additional project benefits include the educational opportunities created by engaging
UAA students to complete hydrology and environmental studies and the opportunity to
develop a university hydraulics test lab as part of the project’s infrastructure.
2.6. Project Budget Overview
The cost of the feasibility study will be $150,000. Of this portion, Bering Pacific
Engineering will fund $25,000 in in-kind work in addition to the reconnaissance study
that is in draft and valued at $10,000.
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 3 OF 8
2.7. Cost and Benefit Summary
Grant Costs
2.7.1 - Grant Funds Requested in this application $125,000
2.7.2 - Other Funds to be provided (Project match) $25,000
2.7.3 - Total Grant Costs (sum of 2.7.1 and 2.7.2) $150,000
Project Costs & Benefits
2.7.4 - Total Project Cost (summary from cost worksheet) $4,200,000
2.7.5 - Estimated direct Financial Benefit (savings) $7,400,000
2.7.6 - Other Public Benefit (explain in section 5) $0
SECTION 3. - PROJECT MANAGEMENT PLAN
3.1. Project Manager
Daniel Hertrich will be the project manager. Mr. Hertrich will be responsible for
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 above, are the following:
· Task 1 - project mapping, comprehensive plan reviews and land use
investigation, public meetings, and project management
· Task 2 - surveying, hydrology and environmental data collection
· Task 3 - project analysis, conceptual design, cost estimate, and reporting.
3.4. Project Resources
Daniel Hertrich and Joel Groves of Bering Pacific Engineering will be performing the
work on the project. Bering Pacific Engineering will be collaborating with the students
from UAA on all phases of the project. BPE will coordinate task 2 activities with Brian
Yanity of the University of Alaska Anchorage (UAA) in order to engage UAA graduate
and/or undergrad students in the collection and analysis of hydrology and other
environmental data.
3.5. Project Communications
Mr. Hertrich will be th e primary point of communications.
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.
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 4 OF 8
SECTION 4. - PROJECT DESCRIPTION AND TASKS
4.1. Proposed Energy Resource
The Virgin Creek hydroelectric project is characterized by the following preliminary
configuration:
Virgin Creek Project Information
basin area 2.6 sq mi
intake elev 850 Ft
powerhouse elev 60 Ft
static head 790 Ft
project flow 26 Cfs
penstock diameter 22 In
penstock length 6800 Ft
power output 1200 kW
powerline length 5000 Ft
net energy 5,300,000 kWh
capacity factor 50%
cost $4,200,000
O&M $ 150,000
benefit $7,400,000
B/C ratio 1.8
4.2. Existing Energy System
4.2.1. Basic configuration of Existing Energy System
The project is located in the south central railbelt. The Girdwood area is serviced by
Chugach Electric Association.
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 a typical run-of-river hydroelectric project.
There is small diversion wall to capture the water in the creek. This is followed by a
filtering system to remove debris and streambed material. The water is conveyed to the
pipeline which transports water to powerhouse with minimal headloss. The high
pressure water is fed into a turbine connected to a generator that is connected to the
electrical grid by a high voltage transformer. A rural class road is built to the
powerhouse while the intake is accessed by a construction road.
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 5 OF 8
4.3.2. Land Ownership
The project is located on land owned by the Heritage Land Bank. The mission of the
Heritage Land Bank is to manage uncommitted municipal land in a manner designed to
benefit the present and future citizens of Anchorage, promote orderly development, and
achieve the goals of the Comprehensive Plan.
HLB land manageme nt seeks to preserve and enhance the value of its inventory. HLB
management practices are governed by the Anchorage Municipal Code (AMC 25.40).
The code requires the adoption by the Anchorage Assembly of an Annual Work Plan, a
Five-Year Management Plan, and policies and procedures which cover the
management of the inventory and the HLB Fund.
Land is held in the inventory for future municipal use, but may be withdrawn from the
inventory and transferred to other municipal agencies if it is needed for the location of
public facilities or other municipal purposes (schools, dedicated and designated parks,
and open space).
If HLB land is determined excess to specific public facilities or purposes, it may be
subject to land disposal. Land disposal activities include: land sales, land exchanges,
leases or easements. The HLB also issues permits for a variety of temporary use
activities on HLB land.
4.3.3. Permits
Permits for the project will involve the typical state permits, an Army Corps of Engineers
wetlands permit, Municipality of Anchorage zoning and permitting, and approval from
HLB. The following is list of the anticipated permits and approvals required for this
project:
· Water Use Permit / Water Rights (ADNR)
· Access easement (AKRR, MOA HLB, ADNR)
· lease, sale, or other approval of land use (MOA HLB)
· Fish Habitat Permit (ADFG)
· Nationwide Permit 17 for Hydropower Projects – for incidental wetlands fill and
similar matters (Army Corps of Engineers)
· Alaska Coastal Management Program Consistency Review (ACMP)
· Finding of non-jurisdiction (FERC)
· Archeological consultation (SHPO)
· Municipality of Anchorage building permit
4.3.4. Environmental
Environmental issues are not known at this time but the feasibility study will collect
baseline data on the environment affected by the project. Project scoping and data
collection during this phase of work will determine whether any environmental issues
need to be addressed. Researchers and students from UAA’s Environment and Natural
Resources Institute are already involved in environmental monitoring and stream flow
measurement in the Virgin Creek watershed, and will assist in the following studies:
· Seasonal fish surveys in the Virgin Creek watershed
· Collection of baseline habitat data in the proposed project area
· Preliminary wetlands assessment
· Assessment of visual impacts on water falls and other natural features
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 6 OF 8
4.4. Proposed New System Costs (Total Estimated Costs and proposed
Revenues)
4.4.1. Project Development Cost
The reconnaissance study did not find any unique or difficult issues that would
significantly affect the project cost. The cost for the development of the project is
presumed to be $3,500 per kW. The feasibility study will collect the data necessary to
provide a project cost estimate.
4.4.2. Project Operating and Maintenance Costs
Operation and maintenance costs for the project are estimated to be $150,000 per year.
The feasibility study will examine operation and maintenance costs in detail.
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 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 benefits including renewable
energy tax credits and carbon credits are not included in the benefit. The feasibility
study will address the primary project benefits along with the secondary benefits as well.
By directly engaging university students in resource and environmental investigations
for a commercial hydroelectric development, this project will provide significant
educational benefits. Beyond the direct educational experiences of the individual
students that are engaged in project-related studies, this collaborative effort will build
relationships between the project developers and UAA faculty and staff that can lead to
additional future partnerships to enhance the quality and depth of renewable energy-
related curriculum at UAA.
Additionally, BPE will work with Brian Yanity, during the feasibility phase to scope out
the specific project features that would be necessary for the hydroelectric project to
serve as a hydraulics test lab for UAA.
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 requirements of
hydroelectric projects. 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.
BERING PACIFIC ENGINEERING RENEWABLE ENERGY FUND GRANT APPLICATION
VIRGIN CREEK HYDROELECTRIC PROJECT
NOVEMBER 10, 2009 PAGE 7 OF 8
SECTION 7. - READINESS AND COMPLIANCE WITH OTHER GRANTS
A reconnaissance study has been drafted as of the date of this application. A final
version of this study will be available within the next month. The feasibility work
proposed in this grant application could begin immediately after award of the grant.
SECTION 8. - LOCAL SUPPORT
The railbelt utilities are generally in support of evaluating potentially economically viable
renewable resources to add to the railbelt generation portfolio.
SECTION 9. - GRANT BUDGET
The grant budget form is attached.
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 (feasibility 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]
1,200 kW
b) Proposed Annual electricity or heat production (fill in as applicable)
i. Electricity [kWh] 5,300,000 kWh
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 $4,200,000
b) Development cost $300,000
c) Annual O&M cost of new system $150,000
d) Annual fuel cost None
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 5,300,000 kWh
ii. Heat
iii. Transportation
b) Price of displaced fuel $0.10 per kWh
c) Other economic benefits
d) Amount of Alaska public benefits $530,000 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 $7,400,000 / $4,200,000 = 1.8
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
Task 1 - scoping and project management 3/1/2010 $50,000 $10,000 Cash and In-kind $60,000
Task 2 - data collection 10/15/2010 $45,000 $10,000 Cash and In-kind $55,000
Task 3 - analysis and reporting 6/1/2010 $30,000 $5,000 Cash and In-kind $35,000
TOTALS $125,000 $25,000 $150,000
Budget Categories:
Direct Labor & Benefits $105,000 $25,000 $130,000
Travel & Per Diem $0
Equipment $0
Materials & Supplies $0
Contractual Services $20,000 $20,000
Construction Services $0
Other $0
TOTALS $125,000 $25,000 $150,000
Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)-
Add additional pages as needed