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HomeMy WebLinkAboutWaste to Energy Feasibility Assessment for UAF and other comm App November 5, 2009 Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 Re: Proposal to AEA Renewable Energy Fund, Round 3: “Municipal Waste Proposal: Renewable Energy Fund” Dear Sir or Madam: The University of Alaska Fairbanks is pleased to submit the attached proposal, “Municipal Waste Proposal: Renewable Energy Fund.” The Principal Investigator from UAF is Dr. Gwen Holdmann, Director for the Alaska Center for Energy and Power, INE. As ARO for the UAF Office of Sponsored Programs, I affirm that UAF, as a division of the Alaska State government, is eligible to apply for this funding. UAF is committed to supporting this project as outlined in the statement of work and budget, and that UAF has the necessary infrastructure to manage and support this project. UAF is in compliance with applicable federal, state, and local laws, including existing federal credit and federal tax obligations. If you need additional information, please feel free to call my office at (907) 474-1851. Sincerely, Andrew Parkerson-Gray, Director Office of Sponsored Programs University of Alaska Fairbanks Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 17 10/7/2009 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 2 of 17 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) University of Alaska Fairbanks, Institute of Northern Engineering, Alaska Center for Energy and Power Type of Entity: Government Entity (University Research Center) Mailing Address P.O. Box 755910, Fairbanks, AK 99775-5910 Physical Address 525 Duckering Building, 309 Tanana Loop Telephone 907-474-5402 Fax 907-474-6686 Email gwen.holdmann@alaska.edu 1.1 APPLICANT POINT OF CONTACT Name Maggie Griscavage Name Maggie Griscavage Mailing Address University of Alaska Fairbanks PO Box 757880 109 Administrative Services Center Fairbanks AK 99775-7880 Telephone 907-474-7301 Fax 907-474-5506 Email fygrcon@uaf.edu 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or X 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 3 of 17 10/7/2009 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) Waste-to-Energy Feasibility Assessment for the University of Alaska Fairbanks and other medium-sized communities in Alaska. 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. Fairbanks, on the campus of the University of Alaska Fairbanks. 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 X Feasibility Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. This project will incorporate a technical and economic feasibility assessment for replacing the University of Alaska coal-fired power plant with a waste-to-energy biomass energy project. This study will compare three scenarios – 1) the base case of coal only fuel, 2) a mixed fuel consisting primarily of municipal waste from the campus only and/or renewable energy from local resources, and 3) 100% municipal waste and biomass, a portion of which would be diverted from the Fairbanks North Star Borough Landfill. In addition to comparing the economics of these options, we will complete a comprehensive survey of waste-to-energy technologies that could be applicable for Alaskan communities. We will not limit the technical feasibility assessment component to this site alone. There are a number of potential technologies that have been proposed for use in Alaska, including gasification, combustion, and plasma gasifiers. We will consider each of these configurations, plus specific products and manufacturers and the market-readiness of their products. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 17 10/7/2009 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.)  Using municipal solid waste MSW for energy production reduces the volume of waste to landfills, reduces greenhouse gas emissions, reduces fuel costs, and may lower energy costs (the purpose of this study is to assure that any projects do in fact lower energy costs). This project will assess the opportunity cost and benefits specific to a project at the University of Alaska, Fairbanks. At this time, the University of Alaska operates a coal-fired co-generation plant to provide 100% of its heating load, and meet approximately 75% of the electric power needs for the campus. The existing power plant facility is over 40 years old, and is nearing the end of its useful life. In 2007, a study of the costs of replacing the existing facility was completed, that considered some alternative configurations. This study concluded that it was uneconomic to discontinue on-site power generation, because it would cost the University significantly more money to purchase power and switch to alternative heating fuels, such as heating oil or natural gas. If this feasibility study concludes there are options for using a waste- to-energy project to displace some or all of the coal for meeting the campus’ energy needs, this would have enormous benefits. It would serve to reduce greenhouse gas emissions (the UAF power plant is currently listed as one of 70 emitters in Alaska that will be capped under proposed new federal carbon taxes), divert municipal solid waste from the Fairbanks North Star Borough landfill, potentially reduce energy costs, and serve as a pilot project for other hub communities in Alaska. 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 requested funds for this project are $292,666. This will cover salaries for the research team, a student, travel, and consulting services. In addition, the University of Alaska Fairbanks will leverage existing resources in the form of salaries to participate on the project team for Mike Ruckhaus, Senior Project Manager for Facilities and Construction at UAF, and Chikoot Ward, Director of Utilities at UAF. Total value to the project is $15,000. The Fairbanks North Star Borough will also contribute an unspecified amount of time to this project. Please find their letter of support attached. 2.7 COST AND BENEFIT SUMARY Include a summary of grant request and your project’s total costs and benefits below. Grant Costs (Summary of funds requested) 2.7.1 Grant Funds Requested in this application. $ 275,142 2.7.2 Other Funds to be provided (Project match) See section 9 for an explanation of leveraged resources 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $ 275,142 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) $ 275,142 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 17 10/7/2009 2.7.5 Estimated Direct Financial Benefit (Savings) N/A 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.) N/A Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 17 10/7/2009 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. The administrative PI for this project will be Gwen Holdmann, Director of the Alaska Center for Energy and Power. Mike Ruckhaus, Senior Project Manager for Facilities and Construction at UAF, will assist with managing the project, at no cost to the project. His time and time for Chilkoot Ward, Director of Utilities for UAF, is considered a ‘leveraged resource’ totaling $15,000 – see section 9 for more details. Mike has long term expertise with the existing power plant facility, and also assisted with the 2007 upgrade study. Both Gwen and Mike have also been working with the Department of Energy, Arctic Energy Office on a second study to consider advanced coal power plant options for UAF, including use of mixed fuels. 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 project will take place in three phases, as outlined below, and will take place over one year beginning in July, 2010. Phase 1: Reconnaissance (5 months) This Phase will take place between July and November, 2010, and will consist of 4 distinct sub- tasks. These are outlined below: Task 1.1 Assess Status of the technology Several methods have been proposed for converting MSW to energy, including gasification Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 17 10/7/2009 either by plasma or thermal conversion, combustion, or by co-firing with other fuels, especially coal. This task will identify operating projects including location, technology, supply vendors, and identifying systems that would best work in Alaska. The work will begin with a web and literature review, followed by phone and e-mail contact with project managers, followed by site visits to collect this information. A database will be built to track these projects. Some of the issues that need to be addressed include: • The level of sorting and separation of the MSW required. • The level of fuel preparation (grinding and drying) needed. • The O&M cost associated with plant operation as compared to conventional energy systems. • The disposal of the residual solids. • Emissions from the plant, especially the possible production of particulates, given the recent designation of Fairbanks as a non-attainment area for fine particulates. • Other issues, including permitting, issues with the local communities, and experience with technology suppliers. The team selected for this project already has a significant base of knowledge and experience with this technology, both through association with utilities that have developed these projects, and through participation in the Fairbanks North Star Borough (FNSB) RFQ process. The FNSB RFQ process attracted several bids, but none of the bids were considered viable. However, the RFQ required that the project be owned and operated by an independent third party business, a requirement that limited the number of bids. Task 1.2 Assess availability of MSW Waste to energy projects must be sized appropriately to match the proposed technology with the available waste stream. This task will quantify the available MSW in Fairbanks and in other communities in Alaska to allow the appropriate match to be made. The goal of this task is to identify the potential barriers to success for a project in Alaska. Some issues that have been found in other projects include difficulties with grinding and sizing the MSW, especially large, tough objects such as bowling balls and tennis shoes. In Alaska, cold weather will result in frozen waste which may result in difficulties in implementing sorting operations. Task 1.3 Consider mixed fuel options. Co-firing of MSW and coal has been done in many locations for many years, but the level of success varies greatly between locations and technologies. Co-firing requires attention to the sizing and moisture content of the MSW fuel so that the combustion occurs uniformly and completely. Of particular concern to Fairbanks will be assuring that smoldering zones do not occur, as these will cause the generation of fine particulates. Task 1.4 Consider other options for deploying renewable energy technologies. In early 2009, the Alaska Center for Energy and Power was tasked by Chancellor Brian Rogers to consider options for developing renewable energy projects to meet current and future energy needs for the campus. That assessment has been partially completed, and will be finalized as part of this feasibility study. This is important to provide a context to this project, in order to determine whether there might be other, more appropriate resources that could be developed to meet the campus heating and electric loads. Phase 2: Economic Modeling (3 months) Once appropriate technologies have been identified and the size of the waste stream quantified, an economic model will be created to determine the viability of the project. This model will include revenue streams from tipping fees, power generation, and heat supplied to the district Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 17 10/7/2009 heating system. Costs will include estimates for permitting, design and construction including the cost of environmental systems, and operations and maintenance, and for disposal of the residual material after combustion. As a baseline, comparison will be made with be made with options that do not include MSW, including cost estimates of a power plant replacement or upgrade using coal, or replacement with other fuels, including natural gas, biomass, and diesel fuel. Phase 3: Conceptual Design (4 months) If the results from phase 1 and 2 are encouraging, a conceptual design will be undertaken. This conceptual design will assess issues such as: • Best fit technologies and suggested vendors. • Site requirements, especially issues associated with physical movement of the waste stream (i.e., should an RDF plant be located at the landfill, and a finished fuel moved to the University, or are there other options?) • Plan for compliance with all environmental regulations (noting that RFD is considered a renewable resource, and may have future carbon management benefits), including PM 2.5 issues. • Integration with existing energy systems at the University, including electricity and heat systems. The overarching goal of the project is to provide publicly available information for both the University of Alaska Fairbanks and other residents of Alaska to assess the viability of MSW projects, especially given the rising price of energy. 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.) Phase 1: Development of database of MSW technologies and suppliers, report completed November 1, 2010. Database and report published on ACEP web site. Phase 2: Development of economic model, report on technical assessment of most viable options completed March 1, 2011. Report published on ACEP web site. Phase 3: Feasibility final report June 30, 2011. Report published on ACEP Web site. In addition, Quarterly project reports will be submitted to AEA. 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 17 10/7/2009 This project is almost entirely a paper study completed using existing staff from the Alaska Center for Energy and Power, with help from UAF Facilities Services, and the Fairbanks North Star Borough. This project builds on a number of prior works looking at MSW projects in the Borough, as well as considering option for replacing the coal plant at UAF. Alaska Center for Energy and Power personnel will be performing the majority of the study by contacting vendors and developing the engineering and economic basis for determining the feasibility of the proposed options. In addition to existing staff, a graduate and undergraduate student will participate, as well as an external engineering contractor with specific experience in MSW projects. This contractor will be selected through an RFP process. UAF Facilities Services will provide data and expertise about existing and projected energy loads. UAF Facilities Services will also provide constructability, cost estimating and operational expertise for the options that are evaluated. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The project team, including participants from the Fairbanks North Star Borough, have worked together in the past and we do not anticipate issues with internal project communication. Quarterly reports will be provided to AEA, and a final report at the end of the project. 3.6 Project Risk Discuss potential problems and how you would address them. MSW energy production has two major potential problems: environmental, and financial. In addition, there is a potential technology risk because some proposed systems are not yet commercial. The goal for the study and any subsequent project is to focus on commercial systems with existing projects installed and operating on a similar fuel stream. Environmental issues are of concern because the combustion of waste may result in release of regulated species into the environment—this study will identify these issues, and identify technologies that minimize emissions. This assessment will be included in reports. Financial risks exist due to many factors, including potentially high capital costs, high O&M costs, competing fuel price instability. The economic model developed will be used to study these issues, and assure that if a project is to proceed, it must be economically viable. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 17 10/7/2009 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 Fairbanks North Star Borough recently issued a Request for Proposals for private technology suppliers to propose building a MSW plant on borough land near the existing landfill. In that study, a total of 85,000 tons per year of MSW were estimated available in Fairbanks for use in an MSW plant. It was estimated that about a 6MW power plant could be operated from this fuel, which represents about 4% of the total electricity currently used in the Fairbanks area. However, this size could meet approximately 60% of the campuses’ current load. Currently, Fairbanks is receiving less power over the intertie from Anchorage, and dependence on expensive power generated from crude oil byproducts at market prices are driving the cost of power in Fairbanks higher. The UAF power plant is coal fired, but aging, and an upgrade or replacement to this system is due. A MSW plant provides environmental benefits by reducing the volume needed to be placed in the landfill, and reduces the coal that needs to be burned for heat and power. By placing the MSW plant at UAF, heat can also be delivered easily to a suitable load (the UAF campus). Similar benefits may be identified for other locations in the state in the early phases of the project. 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 University currently uses a coal and oil fired power plant to provide both heat and electricity to the campus. UAF has two 50,000 lb/hr coal boilers (stoker technology) and two 100,000 lb/hr oil fired boilers. The steam powers a 10MW steam turbine that has a low pressure extraction port to supply heating steam to campus. The current peak loads are 10.2 MW for electric and 120,000 lb/hr for steam. Smaller communities are dependent on diesel fired generators, and some MSW gasifiers have been developed that may be suitable for these communities. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 17 10/7/2009 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, the University uses coal as the primary energy source for campus. Oil, natural gas and purchased power are also used. Approximately 85% of UAF’s energy is from coal with 15% from the other sources. Using MSW will not displace all of these energy sources, so the most likely outcome of this program will be a co-firing configuration with a mixture of coal and MSW. It is not likely that the MSW available will have a significant impact other parts of the energy infrastructure, although sorting and transport of the MSW waste stream in Fairbanks may be affected. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Since the UAF power plant is dedicated to providing energy to the campus, it is not expected that this project will affect other energy providers in the Fairbanks area. 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 This project will use commercially available MSW energy technology, and will use MSW currently available in the Fairbanks area. Based on the FNSB RFP, the maximum installed capacity based on MSW alone is roughly 6MW electrical per year. However, in a co-firing configuration mixing MSW with coal, the plant would be sized to meet the energy needs of the UAF campus, and would be approximately 20 MW electrical, plus approximately 200,000 lbs/hr steam for campus heating. Anticipated annual generation (i.e. capacity factor) will be determined in the course of this feasibility analysis. Historic capacity factors for the proposed technologies will evaluated. Anticipated barriers include economic (this project may cost more than makes sense), and environmental (a technology needs to be selected that will not increase regulated emissions). This project will be fully integrated with the existing UAF power plant and distribution systems, Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 17 10/7/2009 and will be designed to help meet the existing campus electrical and heat loads. Electricity and heat will be delivered to campus through the existing UAF infrastructure. This is especially critical for the delivery of heat, given the considerable expense of developing a new steam delivery system. 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. The UAF MSW project would be installed on UAF property, and so would not have any land ownership or access issues. 4.3.3 Permits Provide the following information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers The feasibility study will study the possible permit impacts for air permitting, noise ordinances, and wastewater discharge. UAF uses air cooled condensers so cooling water source and permitting will not be considered. 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 It is not anticipated that any of these issues would be of concern for this project. The proposed site is on a portion of the UAF campus adjacent to the existing power plant which is designated as for utilities use. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 17 10/7/2009 • 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 purpose of this study is to assess the information above. If the project does not result in a net positive economic benefit to the power plant, it is unlikely that further work will be done. Given the wide variety of possible outcomes of this study, from configurations as simple as a pellet plant to consume waste paper from the UAF campus to more complex designs that might handle larger fractions of the Fairbanks area MSW, it is difficult to estimate the total project cost. 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 from existing MSW plants will be evaluated as part of this study, and included in the analysis. 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 The UAF power plant currently supplies power and heat to the UAF campus. Additional project development will occur only if a positive rate of return can be anticipated. 4.4.4 Project Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. See attached worksheet. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 17 10/7/2009 SECTION 5– PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or cost based rate) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non-economic public benefits to Alaskans over the lifetime of the project Potential fuel displacement: In Fairbanks, if the maximum MSW stream were used in its entirety, a total of 85,000 tons of fuel are available. If this replaces coal on a 1:1 basis (a relatively good assumption given the high water content of both fuels), the fuel savings would be approximately $4,845,000, assuming Healy coal at $53 per ton delivered to Fairbanks. In addition, if tipping fees were received from the borough at $50 per ton, this revenue would be $4,250,000 per year. The sum of these two streams gives a total of $9.095M per year. If the project goes on for 20 years, the total is $181.9M. This calculation does not include any possible savings due to likely future carbon taxes. Since the project is intended as a fuel switching project, this calculation does not include any estimate of the value of electricity or steam for heat, as these are likely to be created from coal if this project does not proceed. Non-economic benefits include the reduced volume of material placed in the FNSB landfill, the use of a waste stream for a beneficial application, and a reduction in greenhouse gas emissions. 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 This project will be managed by UAF Facilities Services, Division of Design and Construction. O&M would be budgeted within the recharge center for UAF Utilities. This project will be undertaken only if the feasibility study indicates positive economic benefits (long term savings) to the operation of the facilities. The UAF power plant currently tracks operational costs and delivered energy, and will continue to do so if this MSW project is undertaken. MSW plants in other places have proved quite reliable, so long as the plant is robustly designed to handle the potentially inconsistent feedstock. This can be handled by maintaining control over the feedstock by sorting to keep unsuitable materials from entering the power plant, and by design of the combustion system to maintain consistent fuel, air, and ash flow through the system. One major advantage of co-fired systems is that the presences of a homogenous fuel source (coal) aids the combustion process and minimizes the occurrence of hot or cold spots in the burner. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 17 10/7/2009 There are many operational costs and issues that need to be considered in this project, especially concerning the transport, storage, and handling of MSW. These aspects of the project will be considered in the feasibility and conceptual design phase of the project. 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. UAF is a research university, and has well established financial tracking procedures for administering research grants. Work on this project would begin immediately upon award. There have been a number of both funded and unfunded works that this project builds on. This includes: 1) The 2007 Capital Improvements Plan for FY11-16, which includes a plan and estimated costs to replace the existing coal-fired plant with a larger, 20 MW system over the next decade. 2) Renewable Energy Options for Campus – a study still underway commissioned by Chancellor Brian Rogers and led by the Alaska Center for Energy and Power. 3) The DOE Arctic Energy Office $1 million study to consider advanced coal technologies for the anticipated UAF power plant replacement. 4) The Fairbanks North Star Borough MSW RFQ. Energy from MSW has been of considerable interest to the community of Fairbanks for many years, and resulted in the issuance of a RFQ by the borough for a MSW to energy plant located near the FNSB landfill. The RFQ brought in several responses, but the borough declined all submitted bids after review. The UAF MSW project has several advantages over other locations. It is a site with both electrical power and steam loads, a coal fired power plant in need of upgrading to meet future campus needs which will require substantial investment regardless of the MSW plant, and a power plant management team interested in MSW projects. 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. As discussed above, MSW projects have been proposed in Fairbanks, including the RFQ issues by the borough. Strong community support is expected. In fact, this project largely grows out of and learns from prior effort made by the Borough, in particular effort to attract a developer to install and operate a MSW to energy plant in Fairbanks, offering a site near the Borough Landfill for this purpose. A letter from the FNSB has been included. In contrast, there is local public opposition to the idea of installing a new coal-fired plant at UAF, and as such this project is anticipated to be well received by the general public. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 17 10/7/2009 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 Funding in the amount of $275,142 is requested for this project. This funding is requested to support: 1) 40 hours of support is requested for Principal Investigator Gwen Holdmann 2) 519 hours is requested for Markus Mager, who will oversee the economic feasibility study for this project. 3) Support is requested for one Masters level Graduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (560) and 40 hours per week during the summer (760), for a total of 1320 hours. 4) Support is requested for one Undergraduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (560) and 40 hours per week during the summer (760), for a total of 1320 hours. 5) Funds of $25,024 are requested to support travel to the East Coast to visit companies that are currently using waste-to-energy systems.   6) Funds totaling $8,750 are requested for supplies to support the project, including computer and database related expenses and printing and publishing costs.  7) Funds are requested to hire an engineering consultant, to be selected through an external RFP process, who has considerable experience with waste-to-energy biomass.   Leveraged Resources A significant amount of prior work has been completed that will facilitate this project. For example, UAF has spent about $250k in the past 2-3 years for utility planning. In addition, work on assessing renewable energy options for campus that has already been completed totals about $30k. Finally, the general knowledge and experience of the team is a significant resource to this project, and will result in reduced overall costs. Ultimately, the State of Alaska will need to invest in a new energy project for the UAF campus. At this time, estimates for a 20 MW circulating fluidized boiler is about $140-$160M. This project seeks to explore less expensive and more sustainable options for the campus, in order to reduce environmental impacts and decrease the cost of the project for the State. Finally, $15,000 in time and salary will be contributed to this project at no cost by Mike Ruckhaus, Senior Project Manager for Facilities Services, and Chilkoot Ward, Director of Utilities for UAF. See attached letter. AI A SKA Renewable Energy Fund energy authority Grant Application Round 3 SECTION 9 -ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION: A.Resumes of Applicant's Project Manager,key staff,partners,consultants,and suppliers per application form Section 3.1 and 3.4. B.Cost Worksheet per application form Section 4.4.4. C.Grant Budget Form per application form Section 9. D.Letters demonstrating local support per application form Section 8. E.An electronic version of the entire application on CD per RFA Section 1.6. F.Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: -Commits the organization to provide the matching resources for project at the match amounts indicated in the application. -Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. -Certifies the applicant is in compliance with applicable federal,state,and local, laws including existing credit and federal tax obligations. F.CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct,and that the applicant is in compliance with,and will continue to comply with,all federal and state laws including existing credit and federal tax obligations. Print Name Signature Title Date fam Park^so^6ouf li_fjLl x>f^^^y\ tt/09/o? AEA10-015 Grant Application Page 15 of 15 10/7/2009   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. 85,000 tons available from FNSB landfill 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 b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor The O&M for an MSW project will be determined through this study. 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] UAF operates two 50,000 lb/hr coal boilers (peak is 120,000 lb/hr steam for heating system) v. Wood [cords, green tons, dry tons]                                                              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 vi. Other 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] Enough municipal solid waste to generate 6 MW electricity diverted from FNSB landfill. b) Proposed Annual electricity or heat production (fill in as applicable) i. Electricity [kWh] 6 MW ii. Heat [MMBtu] Unknown, will be determined through the proposed study 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 85,000 tons of MSW 4. Project Cost a) Total capital cost of new system Unknown, will be determined through the proposed study b) Development cost Unknown, will be determined through the proposed study c) Annual O&M cost of new system Unknown, will be determined through the proposed study d) Annual fuel cost No cost 5. Project Benefits a) Amount of fuel displaced for i. Electricity 85,000 tons of coal ii. Heat iii. Transportation b) Price of displaced fuel $53/ton, or $4,845,000 per year ($193 million over 40 years) c) Other economic benefits This projected would not be affected by future carbon taxes, as the current coal plant will be. d) Amount of Alaska public benefits The results from this project will be applicable to other large hub communities. 6. Power Purchase/Sales Price a) Price for power purchase/sale N/A 7. Project Analysis a) Basic Economic Analysis   Renewable Energy Fund Round 3 Project Cost/Benefit Worksheet   RFA AEA10-015 Application Cost Worksheet Page 3 10-7-09 Project benefit/cost ratio Not applicable to feasibility study. This project is intended to determine this. Payback Not applicable to feasibility study. This project is intended to determine this. 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: TOTALS 1) Task 1.1 – Assess Status of Technology November, 2010 $ 106,112 $ 0  $ 106,112 2) Task 1.2 – Assess Availability of MSW November, 2010 $ 7,542 $ 0  $ 7,542 3) Task 1.3 – Consider Mixed Fuel Options November, 2010 $ 15,890 $ 0  $ 15,890 4) Task 1.4 – Consider other RE Resources November, 2010 $ 16,572 $ 0  $ 16,572 5) Complete Phase I Report December, 2010 $ 6,456 $ 0  $ 6,456 6) Task 2.1 – Collect Cost Data on Fuels and Technologies December, 2010 $ 10,042 $ 0  $ 10,042 7) Task 2.2 – Complete Economic Analysis of Project March, 2011 $ 39,009 $ 0  $ 39,009 8) Complete Phase II Report April, 2011 $ 5,909 $ 0  $ 5,909 9) Phase 3. Conceptual Design June, 2011 $ 59,800 $ 0  $ 59,800 10) Final Report July, 2011 $ 7,810 $ 0  $ 7,810      TOTALS $ 275,142 $ 0 $ 275,142 Budget Categories: Direct Labor & Benefits $ 103,766 $0 $103,766 Travel & Per Diem $ 25,024 $ 0  $25,024 Equipment $ 0 $ 0  $0 Materials & Supplies $ 7,500 $ 0  $7,500 Contractual Services $ 126,250 $ 0  $126,250 Construction Services $ 0 $ 0  $0 Other $ 12,602 $ 0  $0 TOTALS $275,142 $0 $275,142 Applications should include a separate worksheet for each project phase (Reconnaissance, Feasibility, Design and Permitting, and Construction)- Add additional pages as needed Budget Justification 1 Salaries Senior Personnel. Funding to support a total of 40 hours is requested for the Principal Investigator, Gwen Holdmann, of this project. Per UAF policy, faculty receive leave benefits at a rate of 18.7%%, calculated on salary. Total cost to Project: $5,351. Other Personnel. Funding to support 519 hours is requested for Markus Mager, who will oversee the economic feasibility study for this project. Per UAF policy, staff receive leave benefits at a rate of 20.2%, calculated on salary. Total cost to Project: $24,604. Support is requested for one Masters level Graduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (560) and 40 hours per week during the summer (760), for a total of 1320 hours. Total cost to project: $37,660. Support is requested for one Undergraduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (560) and 40 hours per week during the summer (760), for a total of 1320 hours. Total cost to project: $20,632. Fringe Benefits Staff benefits are applied according to UAF’s benefit rates for FY10, which are negotiated with the Office of Naval Research (ONR) annually. Rates are 28.2% for senior salaries, 44.1% for staff, and 8.0% for graduate and undergraduate students (summers only). Additionally, UAF requires that any graduate student supported by a research project also receive health insurance while working on the project. Costs for academic and summer coverage in FY10 are $1,182. Total cost to Project: $15,519. Travel Funds of $25,024 are requested to support travel to the East Coast to visit companies that are currently using waste-to-energy systems. Airfare costs are estimated at $1,500 per RT ticket. Per diem is estimated at $288 per day, based on current pricing, US Government figures and UA Board of Regents policy. Total cost to Project: $25,024. Other Direct Costs Materials & Supplies. A total of $7,500 is requested for computer supplies. Publication & Dissemination. A total of $1,250 is requested to fund publication costs, to defray the expenses of publishing our results in professional journals. Consultant Services. Funds are requested for various technology and energy consultants, who have considerable experience with waste-to-energy biomass. Total cost to project: $125,000. Other. UAF requires that any graduate student supported by a research project over the course of the academic year also receive tuition support and health insurance costs for the life of the project. Costs in Year 1 are $12,602 per student and increases by 10% annually, for a total of $12,602.