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HomeMy WebLinkAboutChena Power 2MW Refinery Waste Energy Application 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) Chena Power, LLC Type of Entity: Limited Liability Company Mailing Address PO Box 58740 Fairbanks, AK 99711 Physical Address 2040 Richardson Highway North Pole, AK 99705 Telephone (907)488-1505 Fax (907)488-4058 Email harding247@hotmail.com 1.1 APPLICANT POINT OF CONTACT Name Jesse Warwick Title Project Manager Mailing Address PO Box 58740 Fairbanks, Ak 99711 Telephone (907)488-1505 Fax (907)488-4058 Email harding247@hotmail.com 1.2 APPLICANT MINIMUM REQUIREMENTS Please check as appropriate. If you do not to meet the minimum applicant requirements, your application will be rejected. 1.2.1 As an Applicant, we are: (put an X in the appropriate box) X An electric utility holding a certificate of public convenience and necessity under AS 42.05, or An independent power producer in accordance with 3 AAC 107.695 (a) (1), or A local government, or A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If the applicant is a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Yes 1.2.5 We intend to own and operate any project that may be constructed with grant funds for the benefit of the general public. 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) 2 MW Refinery Waste Energy Recovery 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. Flint Hills Resources North Pole Refinery 1100 H&H Lane North Pole, AK 99705 2.3 PROJECT TYPE Put X in boxes as appropriate 2.3.1 Renewable Resource Type Wind Biomass or Biofuels Hydro, including run of river Transmission of Renewable Energy Geothermal, including Heat Pumps Small Natural Gas X 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 X Design and Permitting Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The main objective of this project is to develop and operate a 2 MW Waste Energy Recovery power plant system at the Flint Hills Resources North Pole Refinery. The power plant is designed to produce electricity using organic Rankine cycle (ORC) systems to extract heat from the heated post-distillation oil. The heated post-distillation oil has the potential to produce 4 MW of electricity that will be sold to the refinery. This project will increase the overall efficiency and reduce operating costs at the refinery providing a model for utilizing waste heat other refineries and plants in the state can follow. 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.) This project will reduce electricity costs for the Flint Hills Resources North Pole Refinery to $.06/kWh. Currently the refinery pays $.13/kWh for 15MW supplied by Golden Valley Electric Association (GVEA). This project will provide the refinery with 2MW generated off wasted heat. This will save the refinery approximately $1.2 million/year in energy costs. The 2 MW of electricity will be generated creating no emissions. GVEA will have a 2 MW reduction in power on their grid. This will reduce the amount of diesel used to generate electricity. It will also allow GVEA to have a higher coal to diesel ratio and be able to reduce fuel expenses for the electric coop. 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. Chena Power, LLC is requesting $3,907,500 in funds from the AEA for the 2 MW Refinery Waste Energy Recovery project. Chena Power will contribute a matching amount of $3,907,500 of cost share in the form of capital and in-kind contributions. These are the only two funding sources for the project. Flint Hills Resources will contribute the thermal energy and the land needed for the project. 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. $3,907,500 2.7.2 Other Funds to be provided (Project match) $3,907,500 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $7,815,000 Project Costs & Benefits (Summary of total project costs including work to date and future cost estimates to get to a fully operational project) 2.7.4 Total Project Cost (Summary from Cost Worksheet including estimates through construction) $7,815,000 2.7.5 Estimated Direct Financial Benefit (Savings) $2,277,600 ($.13/kWh) 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.) $ 4,000,000 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 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 project manager will be Jesse Warwick. Jesse Warwick is a chemical engineer with experience on the ORC generators. Resume is attached. 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.) Project schedule is attached. 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.) P3.1 – 10/01/2010 – Project Scope P3.2 – 10/29/2010 – Regulatory Applications P3.3 – 12/24/2010 – System Design P3.4 – 01/07/2011 – Phase 3 Review (Permits, Design) P4.1 – 10/14/2011 – Procurement & Fabrication P4.2 – 05/27/2011 – Contractor Selection P4.3 – 11/11/2011 – Site Preparation P4.4 – 03/02/2012 – Installation P4.5 – 04/13/2012 – Commissioning & Startup P4.6 – 04/16/2012 – Operations Reporting (Start) P4.7 – 04/30/2012 – Phase 4 Review Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 17 10/7/2009 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. Chena Power, LLC (Chena Power), United Technologies Corporation (UTC) and prime sub- contractors are positioned to initiate the program work scope within the first month of receiving a grant award. The Flint Hills Resources North Pole Refinerys in Alaska is ready to initiate this project. The grant award will enable the program partners to retain the existing workforce and significantly increase the workforce to meet the project objectives. UTC and Chena Power recently demonstrated through the PureCycle 200 that commercial power can be generated from a binary ORC power plant using geothermal fluids at 159 ºF and cooling water at 40 ºF. The PureCycle 200, a design created by UTRC, is a waste-to-heat power plant module based on inexpensive industrial refrigeration components. This project was recently awarded an R&D 100 Award, as well as being named “Project of the Year” in the Renewable Energy Category from Power Engineering Magazine. It has also been included in the Geothermal Timeline produced by DOE as a notable milestone in the evolution of US geothermal technology. The technical design approach is to apply proven technologies developed and demonstrated by the program partners. UTC has prime responsibility for the powerplant design, which includes the ORC with the remote waste heat recovery heat exchanger, powerplant control and power management system. UTC will integrate the design, and complete testing and verification of the system. The commissioned system will then turn over the control and operation of the power plant to Chena Power. Chena Power, by virtue of the partnership agreement with Flint Hills Resources North Pole Refinery, will have a power purchase agreement for the electricity produced by the ORC power plant. Chena Power and UTC have an existing partnership in the development and implementation of renewable resource technologies initiated in 2004. Since that time, their collaborated efforts have been recognized by industry leaders for significant achievements in renewable resources and green technologies. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. The Project Manager for the proposed project is Jesse Warwick of Chena Power who will make all program decisions.. Team leaders will report directly to the president Bernie Karl on the coordination of the collaborated efforts from all program partners, vendors, consultants and contractors. An earned value management system (EVMS) will be used to evaluate and report the status all Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 7 of 17 10/7/2009 program efforts against the program objectives, schedule and cost. Program reports will be prepared and submitted quarterly to the AEA in accordance with the solicitation requirements. The reports will include but not limited to: • Amount of recovered funds received • Funds expended or obligated • Project activities performed in the reporting period, including o Activity name, description and earned value (EV) An agreement is in place among the program partners that any intellectual property conceived by a partner as a result of this program is assigned to that partner. Regularly scheduled program meetings will be held in accordance with the partnership agreements and aligned with the program plan. The meeting agenda will be structured to most efficiently meet the current needs of the project. The decision of any conflict among partners shall be made by the program partner responsible for that deliverable unless that decision jeopardizes a deliverable by another partner. If this condition exists, the conflict resolution shall be addressed by the Project Manager support by the partners. 3.6 Project Risk Discuss potential problems and how you would address them. Risk – Waste heat recovery heat exchanger service life Risk – Equipment not meeting specifications Risk – Off-design operation due to system imbalance Risk – Climate control systems unbalanced Risk - Weather during construction Risk – Un-contained power plant fire Risk – System performance does not meet project objectives In the development of the project scope and plan, a comprehensive risk assessment was completed for all phases and work classifications. The risks were evaluated for probability and severity to assess the overall project risk. All risks were classified as medium and low, with no high risks. Risks identified in the future, known today as “unknown-unknowns”, will be documented when known, impact evaluated, and effective mitigation plans addressed for those which represent a barrier to achieving all program objectives. All encountered risks will be reported to the AEA. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 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. This project aims to use the thermal energy of the 150 °F post-distillate oil that the Flint Hills Resources North Pole Refinery pumps back into the pipeline. This is source of thermal energy has been decided by Chena Power and Flint Hills Resources to have the highest potential of successful electricity production. Flint Hills Resources receives crude oil from the Alyeska Pipeline at temperatures less than 50 °F and return it at 150 °F without receiving any compensation for the heat added to the crude oil through the refining process. On average the refinery returns about 80,000 barrels/day of crude oil that has the potential to produce 4 MW of electricity. The post-distillate oil will be pumped through a heat exchanger that will be used to evaporate R134a refrigerant, which in turn will not add any parasitic load on the refinery because the oil is already being pumped. The post-distillate oil will then be supplied back into the pipeline. Project installation will be able to be accomplished without disrupting current activities at the refinery. The 2 MW of electricity produced will be done off a heat source currently in place resulting in zero extra emissions. There is the potential to expand the electrical output to 4 MW when the 2 MW project is successful. There are other sources of thermal energy for electricity production at the refinery that Chena Power and Flint Hills Resources will investigate. 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 Flint Hills Resources North Pole Refinery currently uses approximately 15 MW of electricity supplied from GVEA priced at $.13/kWh. All of the electricity used at the refinery is supplied by GVEA. Other sources of energy include combusting hydrocarbons for the thermal energy to distil the crude oil. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 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. Flint Hills Resources North Pole Refinery has uses many types of energy to refine crude oil into consumer ready products. The two primary resources are gaseous hydrocarbons and electricity. The gaseous hydrocarbons are combusted to provide the necessary heat to separate the different chemicals in the crude. The refinery draws approximately 15 MW of electricity to operate equipment. The electricity is supplied by GVEA at about $.13/kWhr. This project will not affect the amount of hydrocarbons combusted but it will reduce the imported electricity from GVEA by 2 MW. This should not have a negative impact on any of the infrastructure of the refinery. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The electricity generated will all be supplied to the Flint Hills North Pole Refinery, which will reduce the electricity imported by GVEA by 2 MW. The reduction in demand from the refinery will allow GVEA to generate electricity cheaper with a higher coal to diesel ratio. Chena Power will be able to generate electricity for the refinery at about $.06/kWh reducing their price for 2 MW by $.07/kWh. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation • Anticipated barriers • Basic integration concept • Delivery methods The organic Rankine cycle power generator used for this project will use the heated post-distillate oil to drive a turbine. The ORC consists of a closed loop refrigerant, R134a. The R134a loop absorbs the thermal energy from the post-distillate oil and generates electrical power. The loop includes a pump, a two-stage evaporator, a turbine, and a condenser. The turbine generates electrical power. The condenser provides a thermal contact between the R134a loop and cooling air or water. The pump delivers liquid R134a into the evaporator. In the evaporator the R134a Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 17 10/7/2009 liquid evaporates and is superheated. The superheated R134a vapor expands in the turbine generating electrical power. Then the vapor condenses in the condenser and the cycle is repeated. The turbine is coupled with a permanent magnet generator, which exports electrical power. A power electronic device supplies the utility grid with AC electrical power. 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 land for the project will take place on land owned by Flint Hills Resources. Flint Hills Resources is supplying the land for the project to reduce their operating costs. 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 This project utilizes a thermal source that already exists and does not produce any emissions. The ORC power plant is a closed loop system. Permitting for environmental regulations will not be required, however Chena Power, LLC will support certification and permitting activities the EPA and any other government authority deems necessary. Building, electrical, and mechanical work will be done to city and state code and all necessary permits will be acquired. City permits have a quick turnaround and will be secured in advance of any work being done. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 17 10/7/2009 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 This project is not expected to have any environmental concerns. It will be located on the refineries property. This property is currently being used in an industrial setting where the added equipment will not contribute to any environmental issue. The ORC power system operates at a low noise level. The ORC is a closed loop system that has zero emissions. 4.4 Proposed New System Costs and Projected Revenues (Total Estimated Costs and Projected Revenues) The level of cost information provided will vary according to the phase of funding requested and any previous work the applicant may have done on the project. Applicants must reference the source of their cost data. For example: Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer’s estimates. 4.4.1 Project Development Cost Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: • Total anticipated project cost, and cost for this phase • Requested grant funding • Applicant matching funds – loans, capital contributions, in-kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system • Projected development cost of proposed renewable energy system The 2 MW ORC waste heat project will cost $7,815,000 and Chena Power is requesting $3,907,500 in funding from the AEA. Chena Power will provide a matching cost share of $3,907,500 of capital and in-kind contributions. The only sources of funding for this project are Chena Power and the AEA. Flint Hills Resources will provide Land for the project. The capital cost of this project is $3,500,000 and the development costs is $4,300,000. The capital costs will be cover the equipment for the ORC electrical generator and installation at the refinery. The development cost will be for design and testing of the ORC turbine and equipment. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 17 10/7/2009 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.) Based off previous experience operating ORC electrical generators the anticipated annual O&M costs will be $15,000/yr. The financial rewards of this project come from the inexpensive O&M costs. The O&M costs will be covered with the $1,031,040 in revenue from selling the electricity to Flint Hills Resources. 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 Flint Hills Resources North Pole Refinery will consume all the electricity produced. Flint Hills Resources will pay Chena Power $.06/kWh. This will create $1,016,040 per year in revenue after the O&M costs of $15,000 per year. 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. Assuming 98% run time for the ORC power plant based off experience at Chena Hot Springs Resort. The price of displaced fuel shown in the worksheet isn’t the actual annual revenue of the project. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 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 Generating 2 MW of electricity off of waste heat from the refinery will save the refinery $1.2 million a year in electricity costs based off GVEA rates of $.13/kWh. This will allow the refinery to reclaim energy put into the oil through combustion of hydrocarbons. Chena Power will have an annual revenue of $1,016,040. There will also be the environmental benefit of reduction in emissions that comes with a reduction in 2 MW generated from non-renewable energy sources. 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 The proposed project will be sustainable through a constant waste heat supply from the refinery. Chena Power will sell the power for $.06/kWh to Flint Hills Resources. A 98% run time for the ORC waste heat power plant will generate 17,184 MWh/year selling for $1,031,040. This money will be needed to pay off the capital investment from Chena Power ensuring that the project will be maintained. Savings and benefits will be essential to show to potential customers with waste heat the Chena Power can generate electricity from. All savings and benefits will be reported to the AEA. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 17 10/7/2009 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. Chena Power has had ongoing discussions and feedback with turbine designers, including UTC, to develop a 2 MW ORC power plant. Once the grant is approved Chena Power will use experience gained over the years in ORC power plant operations and select the turbine manufacturer it sees best fit for designing and developing an ORC power plant for this application. The project manager will work with closely with the ORC manufacturer and Flint Hills Resources to execute this project in a timely manner. Chena Power does not have any other sources of funding for this project. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 17 10/7/2009 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. Chena Power, LLC is not anticipating any opposition to increasing the efficiency of Flint Hills Resources North Pole Refinery. This project will allow their products to be more competitive with their competition. Reducing the operating costs will allow the refinery to increase production leading to more local jobs. 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 The funds for this project will come from the AEA and Chena Power. Each will provide $3,907,500 in contributions. There haven’t been any investments on this project to date. As the project is under way Chena Power will be responsible for the O&M costs to maintain electricity generation. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 17 10/7/2009 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