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HomeMy WebLinkAboutDelta Mine Training Center Renew Energy App Renewable Energy Fund Round 3 Grant Application AEA 10-015 Application Page 1 of 18 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 18 10/7/2009 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Delta Mine Training Center Type of Entity: Independent Power Producer Mailing Address HC 62 Box 3957 Delta Junction, AK 99737 Physical Address Mile 1392 Alaska Highway Telephone 907 895-2051 Fax 907 895-2054 Email whicks@dmtcalaska.org 1.1 APPLICANT POINT OF CONTACT Name Whit Hicks Title Executive Director Mailing Address HC 62 Box 3957 Delta Junction, AK 99737 Telephone 907 895-2051 Fax Email whicks@dmtcalaska.org 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 X 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 18 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) Keep It Sustainable, Keep It Local (KISKIL) Renewable Energy Project 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. The location of the biomass power plant will be 30 miles southeast of Delta Junction on the Alaska Highway. The project will provide power to the entire Golden Valley Electric Association grid and provide jobs and training for any Alaskan. 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 Feasibility X Construction and Commissioning Conceptual Design 2.4 PROJECT DESCRIPTION Provide a brief one paragraph description of your proposed project. The ultimate goal of this project is to produce electricity, training, and employment both sustainably and locally. Thus the name “Keep It Sustainable, and Keep It Local (KISKIL) Renewable Energy project.” The project will be located thirty miles east of Delta Junction. The KISKIL Renewable Energy project will serve much of the Interior by providing electricity for Golden Valley Electric Association (GVEA) via the grid. Additionally, the project will serve Delta Junction, Healy Lake, Dot Lake, Tanacross, Tok and the surrounding areas by hiring regionally, and purchasing wood for fuel locally. The project will produce electricity using 105 kW Sterling generators and raw wood gas as the fuel source. Delta Mine Training Center has the expertise to build and operate a power plant. Additionally, DMTC can and will develop the curriculum needed to provide training for Alaskans to learn the process of building the plant, Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 4 of 18 10/7/2009 developing the fuel resource, and operating and maintaining the plant. This training is more valuable than the electricity itself. 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.) Carbon sequestration! 1700 kWh electricity 1700 kWh 567 lbs of Wood Chips One Barrel of Crude 700 lbs CO2 emission Ref. http://numero57.net/?p=255 Ref. http://www.eia.doe.gov/oiaf/1605/coefficients.html 1100 lbs CO2 emission $.05/kWh plus $.006/kWh carbon tax = $.056/kWh energy costs Rapid CO2 Sequestration in new growth $.05/kWh plus $.006/kWh carbon credit = $.044/kWh energy costs 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. DMTC has, or will raise the funding needed to develop the biomass resource, connect to the Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 5 of 18 10/7/2009 GVEA grid, and house the power plant. Much of the infrastructure exists or is under construction now. This solicitation is for funds to purchase the hardware for a 105 kWh wood- gas fired Stirling generator system. The estimated cost of the generator system is $9500 per kilowatt capacity. The cost of a 105 kW system including vendor provided engineering will be approximately $997,000. The vendor indicates the prices are coming down. 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. $997,500 2.7.2 Other Funds to be provided (Project match) $278,000 2.7.3 Total Grant Costs (sum of 2.7.1 and 2.7.2) $1,175,500 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) $1,497,500 2.7.5 Estimated Direct Financial Benefit (Savings) $30,800 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.) $ 35,160 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 6 of 18 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. Whit Hicks, PhD will be the project manager. Please see (Resume for Whit Hicks’) 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.) If selected for funding, DMTC, at its own expense, will solicit bids for the Stirling generator system prior to the availability of fund on July 1, 2010. DMTC will notify the winning bidder shortly after the AEA funds are available. It is reasonable to expect that the system can be delivered 90 days after placing the order. Installation will begin immediately upon receiving the system. The system should be ready to commission early in the year 2011. 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.) Spring 2010 - Alaska Legislature approval of funds and selection of grantees. If selected bids will be solicited from system manufacturers for the generator. July 2010 - Purchase order will be awarded to best value bidder. September 2010 – System installation begins. February – March 2011 – System commissioning. 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 7 of 18 10/7/2009 This project will be fully supported by Delta Mine Training Center. DMTC has the personnel, equipment, property, procurement system, and establish connections with sub contractors to develop this project. The Alaska Division of Forestry is supportive of this project and will be actively involved in developing the biomass resource. Please plan a visit to the DMTC facility before making a decision related to this application. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. KISKILL Renewable Energy will post a website to keep the general public abreast of the project and schedule a formal presentation with the AEA board to discuss project progress and results once the work is complete. 3.6 Project Risk Discuss potential problems and how you would address them. Establishing a consistent supply of biomass delivered by local wood cutters and loggers may be challenging. The chip buyers at the Port of Valdez and Homer had little problem getting the supply of round logs delivered for several years. The market for the resource dissolved for reasons unrelated to the supply. The price ($25-$40 per ton) paid by those buyers is comparable to resource values today, especially considering the proximity to our market. This makes this Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 8 of 18 10/7/2009 project economically feasible. If the cutters are not willing or able to provide their services then DMTC will establish a harvesting system of its own. NOTE: DMTC is experienced in doing project risk analysis. If funded, DMTC, at its expense, will develop a complete engineering plan for all phases of this project and provide a copy and briefing to the AEA. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 9 of 18 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. DMTC is conveniently located where there is over 250,000 tons of available biomass within 10 miles. This current plan for this biomass is to let it burn naturally. DMTC and the Division of Forestry are working together to make better and safer public use of this resource. What does this mean? This resource can produce more electricity than 900,000 barrels of crude oil. It could fuel 100% of the electrical demand for Delta Junction for nearly four years. Harvest and processing at this rate (5 megawatt/hr) is not realistic or practical at this time; however, it is very realistic to expect that it could provide 10% (500 kWh) of the Delta’s electrical demand for the next 40 years. This only considers the biomass readily available within 10 miles and with limited or modified fire protection. When the range is expanded to 25 miles this resource is an absolutely renewable energy resource at this level of production. This makes producing biomass-fueled electricity from this remote location not only practical, but ideal for developing the resource and technology for rural Alaska. Diesel and coal are much easier and require fewer employees. 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 existing system is a multi-engine (four) fully integrated diesel power plant. At full power it can produce 700 kWs and consumes 36 gallons of diesel per hour. 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. Diesel is a finite resource which will run out in the indefinite future. For now it is delivered at Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 10 of 18 10/7/2009 $.08 above rack price. This project will keep the source of energy sustainable and keep it local which will help mitigate the risk of energy availability and costs. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. GVEA produces on average 150 mWs of electricity with a winter peak around 220 mWs. The cost for residential consumers varies but is between $.13 and @.24 per kWh. This project will have little effect on that market. The model; however, could be very significant for smaller grids and if the larger utility decided to localize their system. Biomass produced electricity can provide a consistent source of power to offset wind power in times when the wind is not blowing. 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 raw wood gas as its energy source. Good technology exists to burn cleaner wood gas directly in large gas engine generators like the GE Jenbaker series engines; however, these plants require a much more sophisticated processing plant to clean the gas. Our selection of the updraft raw gas source was selected to keep the system less complicated to reduce the learning curve for everyone involved. The design at the KISKIL Energy plant will be modular. The first unit will allow the opportunity to learn and evaluate the system and fuel handling process. Once the process is refined, the plant can be expanded to produce as much as 2 MWs when needed. The plant will deliver electricity through GVEA primary voltage meters. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 11 of 18 10/7/2009 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. DMTC is the land owner. 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 location is not within an organized borough and has no permitting requirement. The Division of Forestry will manage the permitting requirements for harvesting the resource. The level of emissions is exempt from an EPA Air Pollution Permit. 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 Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 12 of 18 10/7/2009 Aviation considerations Visual, aesthetics impacts Identify and discuss other potential barriers Environmental impacts will be managed and regulated through the Division of Forestry. The biomass power plant is within the permitted uses in covenants of Alaska Agricultural land. 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 Considering only the cost of the Stirling generator system at $997,500 and no cost of capital. It will cost $.11/kWh for 120 months to return the cost of the system. 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 and M costs will be shifted from the current power plant to the biomass power plant. These costs are part of the DMTC annual operating budget. Additional costs associated with the biomass plant will be covered by the sale of electricity produced by the plant. 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 Golden Valley Electric Association will be the buyer. The sale will be via SNAP through net metering up to 25 kWh and the balance will be sold under the Experimental Renewable Resource Purchase Program. Both prices vary, but for budget purposes $.23 for the first 25 kWh and $.12 for the balance. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 13 of 18 10/7/2009 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. Source information below: OFFER CONCERNING DELIVERY OF A WOOD CHIPS FUELLED UPDRAFT GASIFIER BASED STIRLING-ENGINE CHP PLANT 1. General This document contains an offer for the delivery of a wood chips fuelled, updraft gasifier based Stirling-engine CHP plant with a 600 kW updraft gasifier and three (3) 35 kWe Stirling engines. The offer contains a description of the proposed plant configuration, a description of the scope of supply, time schedule, price, and payment - and delivery conditions. 2. Description of Plant The proposed plant has a combustion system which consists of a 600 kW updraft gasifier which is fed by up to 600 kW wood chips with a moisture content from 25 - 55%. The gasifier delivers gas at a temperature of around 70°C to three (3) combustion chambers which are each situated above a 35 kWe Stirling engine. The gas is ignited in the combustion chambers, heating the Stirling engines by the flue gases, whereby electricity is generated. The hot flue gases are directed through air pre-heaters which heat up the combustion intake air in order to increase the combustion temperature in the combustion chambers. The remaining energy in the flue gases is used to heat the cooling water up to 85°C via an economizer. The plant is fully automated and is controlled by a plc with data collection. Main data Electrical output: 105 kWe Heat production: 420 kW Fuel input: 600 kW Fuel consumption: approx. 210 kg/hour (at 45% humidity) 3. Scope of Supply SD’s scope includes: -diagrams, etc. ith integrated air pre-heaters liter container for ash 2 l and instrumentation The following is not included in SD’s scope of supply: Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 14 of 18 10/7/2009 grid 4. Price SD offers the above mentioned plant for a price of 665,000 EUR, excluding VAT: 5. Time Schedule Based on a contract signature before 1st June 2009, the time schedule is as follows: Delivery of updraft gasifier: September 2009 Delivery of combustion chambers: September 2009 Delivery of other plant components: October 2009 Delivery of Stirling engines: December 2009 6. Guarantees A two year guarantee on all components delivered by SD is provided up to a maximum o f 10,000 hours of operation. The guarantee is only valid if the plant has been operated in accordance with the specified operating parameters, including water temperatures, quality of wood chips, etc. For standard components, such as valves and pumps, the normal guarantee of the OEM-supplier is valid. The guarantee does not include possible damages which might occur as a consequence of the plant not being operated according to the operation manual or, if in any other way, the plant has been mishandled. SD covers all expenses in connection with guarantee repairs, including the transport of the parts to the plant and the installation of the new parts. The guarantee does not cover the possible loss of production revenue. 3 7. Service Engines Piston rod seals and bearings should be exchanged every 4,000 hours of operation. In addition to these regular 4,000 hour services, there is one major service after 50,000 hours of operation. Costs for engine services are: Furthermore, a few times a year, the heater surfaces need to be cleaned. The normal cleaning interval is 4,000 hours but it can vary quite a lot depending on the quality of the wood chips and misc. operating factors. It is a very simple process to clean the heaters and that the engine doe s not need to be disassembled for this purpose. Combustion System Service of the combustion system is not included. Screw conveyors, burners, dampers, valves, etc., will experience wear and tear like a traditional wood chips based heat plant. 8. Payment Terms Down-payment: 25% Delivery of updraft gasifier: 15% Delivery of combustion chamber no 1: 10% Delivery of combustion chamber no 2: 10% Delivery of combustion chamber no 3: 10% Delivery of Stirling engine no 1: 10% Delivery of Stirling engine no 2: 10% Delivery of Stirling engine no 3: 10% 9. Delivery Conditions Ex. Works, Lyngby, Denmark 10. Validity of Offer This offer is valid until 1st June 2009. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 15 of 18 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 No one really knows! The economic benefits of using forest biomass for large-scale energy production, in the short term, are not as economical as using North Slope diesel or Healy coal. The unique benefits from developing this type of fuel is that it is renewable and will keep the dollars and labor invested in energy among those who use and produce the energy from local fuel sources. The following are the numbers, if the capital cost of developing the power plant and material handling is excluded: Wood chips delivered to the plant = $35 per ton wet weight Energy value of chips = 3lbs per kilowatt hour or 666.7 kWh/ton Energy cost per kilowatt = $.053 /kWh. This plant will produce 105 kW per hour at a cost of $5.51/hr for fuel. Using a John Deere powered 100 kW generator, the fuel consumptions is 9 gallons per hour. Current fuel costs for delivered #1 low-sulfur diesel is $2.99. The cost equivalent of diesel production is (9 x 2.99/100 = $.2691/ kWh). GVEA sells a kWh for $.17; therefore, this is the value for comparison in this example. Assuming 105 kWh x 8760 hrs/yr = 919800 kWh/yr. The cost of fuel only using the biomass system is $43479. The cost to purchase the same electricity from GVEA is $156366. Again, these costs do not consider O&M for the plant and capital costs. Considering a $50000 O&M cost, the margin is $156,366 - (43479 + 50000 = 93479) = $62887. Currently, carbon offsets values are very vague; however, it is inevitable that carbon emission will be taxed, whether it will be paid by the end user or the producer is still under debate. Carbon offsets are where this type of energy production rises to the top. Remote village producers may even be able to sell the carbon credits they generate to big producers like GVEA. This project will break new ground in this arena. Potential carbon credit value of this system: 22.8 lbs co2/gal X 102840 gal diesel = 1172 tons of CO2 offset (traded at $30/ton = $35160) Ref. http://www.epa.gov/oms/climate/420f05001.htm 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. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 16 of 18 10/7/2009 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 DMTC has a well established business structure, including established employment policies, and fiscal policies that have been extensively reviewed, refined, and audited over the past decade. The maintenance and operation of the plant will be financed through the sale of electricity. Several operational issues will arise; however, predicting what they may be is difficult at this stage. The primary operational cost will be material handling. DMTC has much of the equipment needed to reduce the staff hours needed to stock the system. This process may become more automated in the future if the construction cost for an automated feed system significantly offsets the cost of using an operator and wheeled loader to handle the fuel. DMTC is committed to providing the AEA a profit and loss statement annually through the life 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. A year ago, DMTC applied for AEA Round II funding, but was not advanced past Stage One. Since then, DMTC has purchased the property to locate the plant, built a road, acquired a building, completed the foundation, contracted with GVEA for the power line upgrade to extend the grid five miles, developed the specification and submitted request for bids for the onsite high voltage electrical installation (work to begin November 9, 2009), negotiated a timber sale with the Division of Forestry, and reviewed several biomass generator systems. No other grants have been awarded for this project. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 17 of 18 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. Given the remote location there is not any anticipated opposition locally. The timber sale has been through the public review process and agency review and had no significant opposition. Please see attached letter of support from the City of Delta Junction 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 This request is for $997,500 to purchase a 105 kW wood-fired Stirling generator system. DMTC has paid GVEA $178,000 for the 3-phase upgrade for 77 poles and the primary voltage meter system. Additionally, DMTC has issued a purchase order for $103,000 to install the high voltage line and transformers to the existing control and switch system. The 80 x 160 steel building package was a donation to DMTC. The cost of road construction and the foundation has not been calculated to date. DMTC will seek additional grant funding from Federal and nongovernment sources to support this project. This project presents an outstanding training opportunity. DMTC will leverage training funds to integrate job skill training into the process of constructing and operating this plant. Renewable Energy Fund Grant Application Round 3 AEA10-015 Grant Application Page 18 of 18 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