HomeMy WebLinkAboutAhtna Wood Pellet Plant Grant Application
TABLE OF CONTENTS
SECTION 1 APPLICANT INFORMATION
SECTION 2 PROJECT SUMMARY
2.1 PROJECT TYPE
2.2 PROJECT DESCRIPTION
2.3 PROJECT BUDGET OVERVIEW
2.4 PROJECT BENEFIT
2.5 PROJECT COST AND BENEFIT SUMMARY
SECTION 3 PROJECT MANAGEMENT PLAN
3.1 PROJECT MANAGER
3.2 PROJECT SCHEDULE
3.3 PROJECT MILESTONES
3.4 PROJECT RESOURCES
3.5 PROJECT COMMUNICATIONS
3.6 PROJECT RISK
SECTION 4 PROJECT DESCRIPTION AND TASKS
4.1 PROPOSED ENERGY RESOURCE
4.1.1 USDA FOREST SERVICE COPPER RIVER INVENTORY
4.1.2 TANANA CHIEFS CONFERENCE INVENTORY
4.1.3 FOREST SYSTEMS MANAGEMENT INVENTORY
4.1.4 INVENTORY CONVERSION
4.1.5 INVENTORY UTILIZING ENTIRE TREE
4.1.6 DURATION OF TIMBER HARVEST OPERATIONS
4.1.7 BIOMASS ENERGY RESOURCE CONCLUSION
4.2 EXISITING ENERGY SYSTEM
4.2.1A COPPER VALLEY ELECTRIC ASSOCIATION
4.2.1B CROWLEY
4.2.1C ALASKA POWER AND TELEPHONE
4.2.1D FISHER FUEL
4.2.2 EXISTING ENERGY RESOURCES USED
4.2.3 EXISITING ENERGY MARKET
4.3 PROPOSED SYSTEM
4.3.1 SYSTEM DESIGN
4.3.2 LAND OWNERSHIP
4.3.3 PERMITS
4.3.4 ENVIRONMENTAL
4.4 PROPOSED NEW SYSTEM COSTS
4.4.1 PROJECT DEVELOPMENT COSTS
4.4.2 PROJECT OPERATING COSTS
4.4.3 POWER PURCHASE SALE
4.4.4 BUSINESS PLAN
4.4.5 ANALYSIS AND RECOMMENDATIONS
SECTION 5 PROJECT BENEFIT
SECTION 6 GRANT BUDGET
SECTION 7 ADDITIONAL DOCUMENTAION AND CERTIFICATION
7A RESUMES OF APPLICANTS PROJECT MANAGER, KEY STAFF, SUPPLIERS, ETC.
7B COST WORKSHEET
7C GRANT BUDGET FORM
7D ELECTRONIC VERSION OF APPLICATION
7E GOVERNING BODY RESOLUTION
7F CERTIFICATION
AHTNA LAND OWNERSHIP MAPS
LIST OF TABLES AND FIGURES
TABLE 2.5 PROJECT COST AND BENEFIT SUMMARY
TABLE 4 TOTAL BIOMASS REQUIRED
TABLE 4.1 DIAGRAM OF WOOD PELLET FACILITY
TABLE 4.2 DIAGRAM WOOD PELLET HEATING SYSTEM
TABLE 4.1.3 RESOURCE INVENTORY
TABLE 4.1.4 INVENTORY CONVERSION
TABLE 4.1.5 INVENTORY UTILIZING ENTIRE TREE
TABLE 4.1.6 DURATION OF TIMBER HARVEST OPERATIONS
TABLE 4.2.1 WOOD BIOMASS POWER PRODUCTION
TABLE 4.2.3 BTU COST COMPARISON
TABLE 4.3.2 WOOD PELLET FACILITY LOCATION
TABLE 4.4.1 PROJECT DEVELOPMENT COSTS
TABLE 4.4.1A CONSTRUCTION BUDGET
TABLE 4.4.1B PLANT BUDGET
TABLE 4.4.1C APPLICANT DONATION
TABLE 4.4.2A PROJECT OPERATING AND MAINTENANCE
TABLE 4.4.2B PRODUCTION COST
TABLE 4.4.3 WOOD PELLET SALES
TABLE 5 PROJECT BENEFIT
TABLE 6 GRANT BUDGET
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Ahtna, Incorporated
Type of Entity:
Alaska Regional Native Corporation‐Independent Power Producer
Mailing Address
P.O. Box 649 Glennallen, AK. 99588
Physical Address
MP‐115 Richardson Highway
Telephone
822‐3476
Fax
822‐3495
Email
jbovee@ahtna‐inc.com
1.1 APPLICANT POINT OF CONTACT
Name
Mr. Joe Bovee
Title
Resource Specialist
Mailing Address
P.O. Box 649 Glennallen, AK. 99588
Telephone
822‐3476
Fax
822‐3495
Email
jbovee@ahtna‐inc.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)
An electric utility holding a certificate of public convenience and necessity under AS 42.05, or
X An independent power producer, or
A local government, or
A governmental entity (which includes tribal councils and housing authorities);
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 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.)
SECTION – 2 PROJECT SUMMARY
The potential for heating and power generation using renewable energy and specifically biomass in the Copper River
Basin (CRB), Valdez and eventually the entire State of Alaska with high efficiency, low emission wood pellet fired boilers
and radiant type heating stoves has been evaluated by Ahtna Incorporated Land Department‐Energy Division (ALDED).
Early in 2007 ALDED began researching previously identified and potential renewable energy resources within the
Copper River Basin. Governmental and non‐governmental agencies, utility companies, commercial businesses and
private residences were contacted to establish baseline information regarding their interest in incorporating renewable
energy alternatives into the present fossil fuel heating and electrical generating systems. The renewable energy sources
identified were:
• hydro‐electric
• biomass
• geothermal
• wind
• solar
• hydro‐kinetic
Considering annual energy costs in the region are comprised of approximately eighty percent for residential heat and
twenty percent for residential electricity we have focused our goals to reduce the immediate needs of lowering the
residential and commercial heating costs in the region and State.
Our evaluation determined that the most beneficial and practical means to reduce heating costs was to pursue a
biomass production facility utilizing the abundant timber resources available. Our assessment also concluded that
economically it would be most cost effective to ultimately have one type of fuel, such as; cordwood, wood chips or
wood pellets and to have a regional timber harvest plan verses numerous harvest plans and renewable energy heating
systems for each area independently.
The project would consist of construction of a wood pellet plant for manufacture of 35,000 dry tons of standard and
premium wood pellets and wood briquettes per year. Considering British thermal units (Btu) of one ton of wood pellets
equals 122 gallons of #1 diesel fuel this project would displace approximately 4.3 million gallons of fossil fuel. Using
preliminary project models and current fuel oil prices this would represent a savings to road accessible consumers of
between 30‐50 percent or $5,000,000.00‐$9,000,000.00 as well as keeping this money in the local State economies. An
even greater savings to rural bush communities is evident not only from direct fuel costs savings but from shipping,
handling and storage as well.
In addition Ahtna Land Department‐Energy Division will also provide preliminary information concerning electrical
power generation for a wood chip plant from an independently operated electrical power generating system.
2.1 PROJECT TYPE
Final Design and Permitting. Wood biomass for the production of wood pellets.
2.2 PROJECT DESCRIPTION
Wood biomass for the production of bulk commercial wood pellets and briquettes, bulk and/or bagged residential wood
pellets, wood chips for commercial use and cordwood. Facility will be located at milepost 112 Richardson Highway, 190
miles from Anchorage and 250 miles from Fairbanks. Communities served will include all villages and cities in Alaska. The
grant project will incorporate varying degrees of assistance from Ahtna, Incorporated and its subsidiaries, State
agencies, Federal agencies, local borough, city and village government bodies and various contractors and consulting
firms.
2.3 PROJECT BUDGET OVERVIEW
The amount of funds needed for this project is $15,760,000, of which nearly half will be provided by Ahtna in the form of
property, biomass resources and all of the operating expenses. The anticipated source of funds are; Alaska Energy
Authority (AEA), US Department of Energy (USDOE), US Department of Agriculture (USDA), US Housing and Urban
Development (HUD), US Bureau of Indian Affairs (BIA), US Department of Labor (DOL), Ahtna Incorporated and private
investors, if needed.
2.4 PROJECT BENEFIT
The financial benefits of this project will be immediate and far reaching. The immediate benefits will include: 20‐30 full‐
time positions as plant workers; 2 administration and management; 1 Human Resource Specialist; 1‐2 biomass fuel
distributors; 1‐3 sales and marketing; 1 accountant; 1‐2 forestry workers; 10‐20 loggers and truck drivers; various
contractors and sub‐contractors during the construction phase; and numerous support service employees after initial
plant construction.
2.5 PROJECT COST AND BENEFIT SUMMARY
TABLE 2.5
2.5.1 Total Project Cost
(Including estimates through construction) $15,760,000
2.5.2 Grant Funds Requested in this application $8,630,000
2.5.3 Other Funds (assets) to be provided $7,130,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $15,760,000
2.5.5 Estimated Benefits (Savings) $9,000,000
2.5.6 Public Benefit (Annual) $20,046,250
Fuel Savings $9,000,000
Direct Plant Employment $2,450,000
Contracted Timber Extraction $3,220,000
Contracted Road Construction $280,000
Local and In‐State Support Services $5,000,000
Terrestrial Carbon Sequestration $26,250
Direct Carbon Sequestration $70,000
TOTAL $20,046,250
SECTION 3 – PROJECT MANAGEMENT PLAN
3.1 Project Manager
The management of this project will be performed by Ahtna, Incorporated and its subsidiaries specializing in engineering
and technical services and one of two biomass energy consultants. Construction Management, Coeur d’ Alene, ID; or
Industrial Turn‐Around Company (ITAC), Chester, VA.
3.2 Project Schedule
Regional Energy Summit – January 2009
Explore the opportunity to implement an independent wood chip/electrical facility – February 2009
Fuel Sale Agreements – March 2009
Conceptual Design ‐ June 2009
Final Design and Permitting – October 2009
Timber Harvest Operations – November 2009
Construction, commissioning, operation and reporting‐Summer 2010
3.3 Project Milestones
The principle element for making this project successful is to have an identified market with letters of agreement to
purchase the renewable resource before production capabilities are in place. This will need to include Federal, State and
local government facilities, schools and universities, military installations, local utility companies, small and large
commercial businesses and private residences with guaranteed rebates. Once markets are identified, sizing of plant
facilities will be crucial for long‐term success.
3.4 Project Resources
Ms. Kathryn Martin, VP Ahtna Land and Resources, Ms. Brenda Rebne, VP Ahtna Corporate Affairs, Mr. Joe Bovee Ahtna
Resource Specialist‐Energy Division and various Ahtna subsidiary experts will be the major personnel leading this
project. Ahtna is also in negotiations with two independent energy consulting firms who have designed, constructed and
operated pellet facilities who will have control of the project and facility design and operations during the initial start‐
up. The two companies are: Construction Management, LLC Coeur d’ Alene, ID; and Industrial TurnAround Corporation
(ITAC) Chester, VA. Ahtna is a minority owned company and reserves the right to use preferential hiring rights as
established by Congress. Equipment purchases will be performed by an open bid process with the intent of purchase
agreements awarded to the lowest reputable bidder. Timber harvesting and road construction will be performed with 3‐
5 year contracts. Fuel sale agreements will need to be established with Federal, State and local governments.
3.5 Project Communications
Grantee will devote, at a minimum, one full time employee and required staffing to monitor the project and provide
Grantor with updated reports as required.
3.6 Project Risk
The risk of the proposed project will be evaluated extensively during the project and throughout market and seasonal
fluctuations thereafter. Risk at start‐up of production operations can be great and grantee will factor in this dynamic
potential and have alternatives in place. Start‐up risks will be reduced by consulting with pellet manufacturers in the
lower forty eight and Canada and hiring management with direct experience with the production of wood pellets such
as Construction Management or ITAC. Price fluctuations in fossil fuel costs may limit salability of manufactured wood
pellets however; industry and economic experts expect crude oil prices to level off over the short‐term and then
increase steadily over the next 20+ years. Although crude prices are based on supply and demand from a growing world
market, the fuel sale agreements in place before start‐up will greatly eliminate this risk.
SECTION 4 – PROJECT DESCRIPTION AND TASKS
The project Ahtna is requesting funding for is final engineering design and permitting for construction of a wood pellet
facility located near Glennallen, Alaska and establishing fuel sale agreements with both small and large fossil fuel users
throughout the State.
Wood biomass will be harvested within the CRB on Ahtna lands, State of Alaska, BLM and Chitina Native Corporation
lands and potentially from Chugach Native Corporation, University of Alaska and various private landowners. Harvesting
will adhere to all Federal, State and local regulations and specifically the Alaska Forest Practices Act (including ADNR‐
DOF Best Management Practices), Alaska Department of Environmental Conservation and US Environmental Protection
Agency.
Timber (biomass) will be harvested using mechanical harvesting equipment; biomass will be chipped at landings, loaded
into chip truck trailers, weighed and transported to pellet facility. Harvesting will be implemented using a 3‐5 year
Logging Contract to enable a more stable work flow and financing acquisition. Log sorting rules will be established to
separate the desirable logs for use in construction grade materials and will be transported to local saw mills.
At the pellet facility chip trucks will be off‐loaded and either stockpiled or fed directly onto a conveyor to be processed
in facility. Wood chips will be fed into drying bins, rotated and dried to 3‐4 percent moisture content. Drying the wood
chips is the most expensive phase of processing, as our samples have concluded range in moisture content from 26
percent to 38 percent moisture, depending on site location and seasonal weather fluctuations. The drying portion of the
process will utilize a combination of wood waste (i.e. hog fuel), chipped Aspen or both to heat a steam turbine to
heat/dry the wood chips to the desirable moisture content. Since the hog fuel will be accessible, Ahtna will be using
cogeneration for the production of electricity, not only for the facilities but also to power back into the local electric
utility grid system. Expected power requirements for a 70,000 green ton pellet facility producing 35,000 tons of wood
pellets is 750 kilowatts however, a larger power plant capable of producing 1 megawatt is more cost effective to operate
and accessible on the market, therefore the facility would be able to provide relatively low cost electrical power in the
range of 250 kilowatts at 7 cents to 14 cents per kilowatt hour to the utility company.
When the wood chips are dried to 3‐4 percent moisture content the wood chips will be ground, screened and fed into a
pellet press producing either a 1 inch by ¼ inch standard or premium wood pellet or optimally a wood briquette for
commercial or large facilities. The wood briquette is approximately 3 inches in diameter and can be any length between
1‐24 inches. Since there is more mass to a briquette, burn rates are considerably longer than the smaller wood pellets
and much more convenient in facilities requiring 1,000,000 Btu per hour verses the smaller pellets.
After pellets are manufactured and cooled they will either be packaged into 40 pound bags, palletized and stored, or left
in a bulk state and loaded directly into trucks for shipping or stored in bins for distribution at a later date. The pellets, if
stored in a dry container, will last indefinitely allowing for greater production through the winter when sales are
anticipated to be highest and eventually shipped and stored for long durations when access to timber resources or rural
villages may be limited.
TABLE 4
Total Tons Biomass Harvetsed 70,000
Total Tons Required Co‐Generation 14,450
Sub‐Total For Pellet Production 55,550
Total Tons Pellets Produced 35,000
Based on 34% moisture content drying to 3‐4% moisture content
TABLE 4.1‐Diagram of Wood Pellet Production
Heating systems for wood pellets are compatible with most types of residential and commercial type systems. In some
cases existing fuel oil furnaces and boilers can be retro‐fitted to accept wood pellets rather than installing a new furnace
or boiler. An auger will need to be situated to feed the heating system and storage can be provided with a hopper which
comes in various sizes depending on fuel use.
Following is illustrations of a typical small commercial wood pellet heating system.
TABLE 4.2
Pellet Burner Boiler Auger Boiler Controls Three Ton Pellet Hopper
4.1 Proposed Energy Resource
Ahtna Incorporated is one of twelve Regional Native Corporations established by Congress with the passage of the
Alaska Native Claims Settlement Act in 1971. In 1989 seven of the eight Ahtna Regional Villages merged with Ahtna
allowing Ahtna, Incorporated to manage their former Village lands for resource development, both surface and
subsurface. After final land conveyances, expected in 2009, Ahtna will own fee simple title to approximately 1.77 million
acres. Of this acreage approximately 80% is considered forested. Within the previous 40‐years three timber inventories
were conducted on what is now Ahtna property. The first was conducted by the USDA Forest Service in 1968; the second
was conducted by the Tanana Chiefs Conference from 1989‐1991; and the third, most recent was conducted during
1995‐1997 by Forest Systems Management.
4.1.1 USDA Forest Service Copper River Inventory
This was the first attempt by the US Government to determine the volume and acreage of commercial timber in the
Copper River Basin (CRB). This inventory provides significant information regarding timber stands in the CRB. The report
describes different types of timber stands and the commercial volume associated with them. The report indicates that
255.7 million cubic feet of white spruce saw timber existed in the CRB in 1968. We estimate these 255.7 million cubic
feet equals 1.2 billion board feet, Scribner decimal C log scale. (This estimate is based on 4.69 board feet per cubic foot,
which is the average ratio from the most recent inventory). The area covered by this inventory now includes lands
predominately owned by Ahtna and US Bureau of Land Management, State of Alaska and US Park Service. The USDA
Forest Service Copper River Inventory identified 440,600 acres of commercial forest land (will grow 20 cubic feet of
timber per acre per year) within the 2,022,500 acre unit. Using aerial photography the USDA Forest Service sampled
7,201plots and field verified 166 of these plots.
4.1.2 Tanana Chiefs Conference Inventory
Between 1989 and 1991 the Forestry Department of the Tanana Chiefs Conference conducted timber inventories on the
Gakona, Gulkana, Tazlina and Mentasta Village lands. The total saw log volume of white Spruce was 228,944,000 board
feet with an average of 2,460 board feet per acre. Total area inventoried equals 93,204 acres of forest land. The Tanana
Chiefs Conference foresters used infrared photographs and field checked 60 plots in each Village. There has been
identified some potential statistical inaccuracies using the stand stocking techniques with this timber cruise however,
the village inventories can provide some specific volume information and will be helpful to identify some potential
harvest units within the Village areas as the data is consistent with previous and current harvest information.
4.1.3 Forest Systems Management Inventory
During 1995‐1997 Forest Management Systems of Wasilla conducted an extensive forest inventory of Ahtna lands. This
timber inventory not only included white spruce, but aspen, white birch and cottonwood as well. The timber cruise
utilized low elevation aerial photographs and one hundredth acre plots along a standard grid pattern. This resulted in an
average 2 trees per plot. Plots were taken every 4 chains (264 feet) apart. Trees were measured on each plot for
diameter breast height (DBH) and total tree height. The minimum tree was 5.5 inches DBH (6 inch diameter class) in
diameter. The local volume table assumed that Ahtna would buck logs to a minimum 5 inch top diameter if the logs
were going to be sold on Scribner scale. It further assumes that any tree that will produce a 7 inch log at 20 feet would
be bucked into a 20 foot log with a 5 inch top diameter. The sampling error for the total white spruce volume was 2.64
percent. Using low elevation aerial photographs un‐sampled types were compared to sampled types with similar
characteristics and the volume per acre for the sampled types were attributed to the un‐sampled type. Total volume
inventoried was 613,700,000 board feet of white spruce (as shown in the following table 1‐4) and 74,300,000 of
estimated white spruce which were isolated stands with access issues do to economics. Following is a summary of the
Forest Systems Management Inventory.
TABLE 4.1.3
CHITINA CHISTOCHINA GAKONA GULKANA
KLUTI‐
KAAH MENTASTA TAZLINA TOTAL
Saw log volume (BF) 104,000,000 0 54,500,000 21,400,000 230,000,000 125,800,000 78,000,000 613,700,000
Estimated saw timber 7,000,000 5,000,000 0 11,000,000 45,000,000 0 6,300,000 74,300,000
not included in
inventory
Subtotals 111,000,000 5,000,000 54,500,000 32,400,000 275,000,000 125,800,000 84,300,000 688,000,000
Source Ahtna
4.1.4 Inventory Conversion
During all three previous inventories the timber cruises were calculated using either Scribner decimal C (Tanana Chiefs
Conference, Forest Systems Management) or cubic feet (USDA Forest Service later converted to Scribner decimal C). It is
certain if wood biomass is harvested for the production of wood pellets it will be traded on a per ton basis. Since the
timber recognized in the above table will need to be converted to tons, verses board feet scale. An assumption made
from previous logging operations applies 8 pounds per board foot, or 1 green ton per 250 board feet.
CHITINA CHISTOCHINA GAKONA GULKANA
KLUTI‐
KAAH MENTASTA TAZLINA TOTAL
Tons 444,000 20,000 218,000 129,600 1,100,000 503,200 337,200 2,752,000
TABLE 4.1.4 Source Ahtna Land Department
4.1.5 Inventory Utilizing Entire Tree
The USDA Forest Sciences Laboratory in Sitka, Alaska estimates the utilization of the entire tree (limbs and bark) will
produce an additional 15 percent of biomass per weight basis.
CHITINA CHISTOCHINA GAKONA GULKANA
KLUTI‐
KAAH MENTASTA TAZLINA TOTAL
Estimated tons 555,000 25,000 272,500 162,000 1,375,000 629,000 421,500 3,440,000
utilizing entire tree
TABLE 4.1.5 Source Ahtna Land Department
4.1.6 Duration of Timber Harvest Operations
Considering a harvest schedule of 70,000 green tons annually the following table represents years to harvest the
available timber resource.
CHITINA CHISTOCHINA GAKONA GULKANA
KLUTI‐
KAAH MENTASTA TAZLINA TOTAL
7.9 0.4 3.9 2.3 19.6 9.0 6.0 49.1
TABLE 4.1.6 Source Ahtna Land Department
4.1.7 Energy Biomass Resource Conclusion
Following the above tables and inventories it should be noted; only trees large enough to be utilized for saw logs were
tallied in the inventories and other species (White Birch, Aspen and Cottonwood) were not reported. Also excluded were
timber resources from the State of Alaska, Bureau of Land Management, University of Alaska, Chugach Native
Corporation, Chitina Native Corporation and numerous Bureau of Indian Affairs Native Allotments, all of which currently
have active or pending timber sales.
4.2 Existing Energy System
The existing energy system specifically within the CRB is basically two systems owned by four companies, or member
owned companies. Two are electrical providers and two are fuel providers.
4.2.1A Copper Valley Electric Association (CVEA) is the electric power provider within the southern CRB. CVEA has four
power production facilities which are: Cogeneration plant in Valdez with capacity of 5 megawatts of power for the Petro
Star Refinery; Glennallen diesel plant with capacity of 7.9 megawatts; Valdez diesel plant with capacity of 9.25
megawatts; and the Solomon Gulch Hydroelectric facility with capacity of 13 megawatts. CVEA has a 106 mile, 138
kilovolt transmission line extending from Valdez to Glennallen.
4.2.1B Crowley (formerly Service Oil and Gas) is one of two fuel oil distributors in the CRB. Crowley distributes home
heating oil, aviation gas, diesel, propane and unleaded gasoline. Tank farm capacity is 140,000 gallons. Crowley
management reported home heating oil sales within the CRB to be between 700,000 to 800,000 gallons per year. This
does not include commercial users such as CRB Schools, ADOT maintenance buildings, Colleges, etc.
4.2.1C Alaska Power and Telephone (AP&T) is the electric power provider in the northern CRB. AP&T has numerous
diesel production facilities with the largest being located in Tok. The Tok facility produces 1 megawatt of power and
consumes approximately 100 gallons of diesel fuel per hour for a total fuel cost of approximately $3,000,000 per year.
Given the proximity of the transmission line to Glennallen and the proposed wood pellet plant, further evaluation is
required to identify the feasibility of construction of a wood powered electrical plant. Following is information with cost
of producing power from diesel fuel or wood biomass. A rule‐of‐thumb for electrical power generation is 1.65 tons of
wood chips to produce 1 MWh of electricity or a total of 14,450 tons annually. Estimated wood chip costs are $51 per
ton delivered within 20‐mile radius of Glennallen, Alaska. Other O&M costs are assumed equal.
AP&T Costs (Tok)
Diesel Fuel (based on 100 gallons/hour) $2,828,000
Insurance (estimated) $20,000
Operation and Maintenance (estimated) $100,000
Admin. & Mgmt. (estimated) $80,000
Tok Operating Cost to Produce 1 MW $3,028,000
Biomass Cost to Produce 1 MW $936,950
TABLE 4.2.1C Source USDOE, AP&T
4.2.1D Fisher Fuel is the smaller of two fuel distributors in the CRB. Information was limited on the amount of fuel sales
however; estimates are approximately 160,000 gallons of home heating oil delivered per year.
4.2.2 Existing Energy Resources Used
Within the CRB and bush communities of Alaska the existing energy uses are #1 diesel fuel for residential heating and to
a lesser degree propane and cordwood (where available). The proposed project will lead to a drastic reduction in the use
of fossil fuel particularly in rural Alaska where fuel costs are the highest. There will be no noticeable reductions in the
electrical power production or costs. The proposed system will require approximately 750 kilowatts of electrical power
which will either be provided by CVEA, AP&T or the use of a biomass supported electrical generation system.
4.2.3 Existing Energy Market
Impacts of the proposed wood pellet plant will eliminate the use of up to 4,300,000 gallons of fossil fuel annually. This
amount does not include the amount of fossil fuel required for harvesting and transporting product to in‐State markets.
The expected amount of annual savings from fossil fuel of home heating oil for residences will be between 30‐50
percent. The amount of annual savings for commercial applications will be greater and our projections show will be
slightly more of a savings as bulk commercial grade pellets are cheaper to manufacture and transport verses bagged
wood pellets.
TABLE 4.2.3
Product Price Btu
Price/mm
Btu Savings
#1 diesel $4.00/gal. 135,000/gallon $34.10 0%
bulk pellets $250/ton 16,500,000/ton $17.93 47%
bagged pellets $300/ton 16,500,000/ton $21.52 37%
Based on heating system rating of 85% efficiency Costs represents road system delivered prices. Source Pellets Fuel Institute, Ahtna
4.3 Proposed System
The following section will discuss system design, land ownership, permitting and environmental issues. It has been
assumed by the preparer of this document that information requested has been directed more for electrical power
generation however; since electrical power generation is capable in this system design Ahtna will use system definition
of electrical and biomass when possible.
4.3.1 System Design
The technology associated with design, construction, operations and maintenance of this project will be duplicated from
those wood pellet plants located in the lower forty‐eight and Canada. Currently there are over 80 wood pellet facilities
in operation in North America and some have been in continuous operation longer than 20‐years. Regarding the
electrical power production capabilities of this project, design will be based primarily on technology used in small
biomass electrical power generating systems located throughout North America and some Scandinavian Countries.
The optimum installed capacity will be the production of 35,000 tons of premium and standard wood pellets. The
optimum installed capacity of the biomass cogeneration system will be 1 megawatt with a surplus of 250 kilowatts.
The anticipated capacity factor for the wood pellet facility and the biomass electrical power generation portion will be
sales of the wood pellets during the off season, requiring energy input/output to be slightly less than during the peak
winter season.
Anticipated annual generation of wood pellets will be 35,000 tons and electrical power available for re‐sale is 250
kilowatts.
The foreseen barriers are to establish a purchase agreement with local utility to purchase excess power; and
construction of surge protectors and electrical sub‐station construction to be economical to construct and maintain over
the 50‐year operating life.
The concept for integrating the wood pellets is as follows; purchase 300 radiant type wood pellet stoves to be given to
residential consumers with a rebate guarantee, i.e. the stoves are no charge with a commitment to purchase X amount
of wood pellets at $300 per ton for X amount of years; the commercial concept is to sign fuel sales agreements with
large users guaranteeing quality of wood pellets and price for X amount of years, subject to inflationary factors.
The delivery methods used for transporting wood pellets will be by tractor trailer to delivery points in various hubs
(Anchorage, Fairbanks, Homer, Palmer, etc.) throughout the Alaska road system (bagged) or can be picked up locally; or
delivered to personal residences. Off road residential pellets will be trucked either to Valdez, Seward or Anchorage and
shipped via container barge to nearest port facility or air freight to accessible air terminals. Bulk wood pellets will be
transported directly via truck with auger capabilities to final destination or packaged in 1‐2 ton totes for barge and/or air
shipment to rural, non‐road accessible villages.
The delivery method for electric power generation will be provided following the rules and regulations of the by‐laws of
either Copper Valley Electric Association or Alaska Power and Telephone.
4.3.2 Land Ownership
Ahtna, Incorporated is owner of the proposed property location. Property legal description is:
SE ¼ SW ¼ N ½ Sec. 4 T.3N., R.1W., Copper River Meridian, Alaska containing 10 acres more or
less. As shown in following exhibit.
PROPOSED WOOD PELLET FACILITY LOCATION
TABLE 4.3.2
The property has State maintained road access adjacent to the Richardson Highway and Copperville Road. Proposed
property is located 3 miles south of Glennallen, 112 miles north of Valdez, 188 miles east of Anchorage and 250 miles
south of Fairbanks. The Gulkana Airport is located 6 miles north. The Glenn‐Rich Fire Department is located on same
property (yellow). A drilled water well is on property and telephone and electric utilities are in place.
A Geotechnical Investigation and Foundation Design were conducted by Baker Engineering & Energy, Anchorage Alaska
and reported no geotechnical conditions exist that would prevent the use as a wood pellet facility.
4.3.3 Permits
Permits for this project and harvesting will be defined during the engineering and pre‐construction phases of this
project. Identified permits are Storm Water Prevention Plan (SWPP), Alaska Department of Natural Resources‐Division of
Forestry (ADNR‐DOF) Detailed Plan of Operations, Alaska Department of Fish and Game‐Habitat Division (ADFG‐DOH)
Title XVI permit(s), EPA clean air permits due to facility dust, and various US Corp of Engineers (if applicable). There are
no current zoning or building permits required limiting the development and construction of this type of facility. There
are no known existing barriers which will limit this project.
4.3.4 Environmental
Threatened or Endangered Species‐There has not been any threatened or endangered species identified.
Habitat Issues (Forestry)‐Habitat for small and large forest animals are expected to increase using scientific forest
management techniques and applied silvicultural prescriptions throughout the timber harvesting portion of this project.
Wild land fire ratings will be reduced as more lands become accessible and fuel loads are reduced. Habitat Issues
(Facility)‐No known or identified habitat issues on property.
Wetlands or Other Protected Areas‐There are no cataloged wetlands on proposed facility site. Wetlands within the
timber harvest units will be accessed during winter to eliminate any ground disturbance or alteration.
Archaeological and Historical Resources‐There are no archaeological and historical resources located on proposed
facility site. Archaeological and historical resources have been identified throughout proposed timber harvest areas and
will be off limits to development.
Land Development Constraints‐There is no land development constraints on either the facility site or timber harvest
areas.
Telecommunications Interference‐Wood pellet facility will not interfere with telecommunications within the area.
Aviation Consideration‐No aviation considerations identified.
Visual, Aesthetic Impacts‐ The wood pellet facility will not negatively impact surrounding view shed or disrupt natural
landscape (property was previously used as a material site). The timber harvest units, or wildlife viewing areas, are
anticipated to enhance the wild and natural landscape.
Identify and Discuss Other Potential Barriers‐No other barriers have been identified at this time. Since the production of
wood pellets is basically a function of drying the biomass and shaping into pellet form, only steam is released during the
drying process and no smell is associated with the manufacturing process.
4.4 Proposed New System Costs
4.4.1 Project Development Cost
Total anticipated project cost and cost for this phase $15,760,000
Requested Grant funding $8,630,000
Applicant matching funds $7,130,000
Identification of other funding sources To Be Determined
Projected capital cost of proposed renewable energy system $6,740,000
Projected development cost of proposed renewable energy system $1,890,000
TABLE 4.4.1 Applicants analysis, Manufactures Estimates, Consultants Estimates
TABLE 4.4.1A TABLE 4.4.1B
Construction Budget Plant Budget
Fuel Sale Agreements $150,000 Dryer $1,710,000
Engineering $325,000 Hammer Mill $530,000
Excavation $90,000 Pelletizing Machine $890,000
Pads $250,000 Cooler $360,000
Steelwork $400,000 Co‐generation $1,200,000
Siding $250,000 Storage Silos $200,000
Roofing $250,000 Bagging Plant $50,000
Finishes $50,000 Cost Management $50,000
Infrastructure Roads $50,000 Yard Equipment $300,000
Infrastructure Drainage $25,000 300 Pellet Stoves $450,000
Cost Management $50,000 Contingency $700,000
Total Construction $1,890,000 Consultant Services $300,000
Applicants analysis, Manufactures
Estimates, Consultants Estimates Total Plant Equipment $6,740,000
TABLE 4.4.1C
Applicant Donation
Timber (3,440,000 tons) $6,880,000
Property $250,000
Total $7,130,000
4.4.2 Project Operating and Maintenance Costs (Annual)
TABLE 4.4.2A
Total anticipated project cost for this phase $7,035,000
Requested grant funding $0
TABLE 4.4.2B
Production Cost Per Dry Ton Annual Cost
Timber Extraction, Chipping &
Hauling $92 $3,220,000
Logging Roads (mainline) $8 $280,000
Weighing $2 $70,000
Energy $7 $245,000
Payroll (21 employees) $44 $1,540,000
Property Tax $0 $0
Insurance $1 $35,000
Permits (one time fee if needed) $1 $35,000
Maintenance $5 $175,000
Admin. & Mgmt. $4 $140,000
Trucking to Anchorage/Fairbanks $21 $735,000
Contingency $16 $560,000
Operating Cost to Produce Pellet $201 $7,035,000
Applicants analysis and records, Manufactures Estimates, Consultants Estimates
4.4.3 Power Purchase Sale
Potential power purchase buyers are Copper Valley Electric Association and Alaska Power and Telephone. The
customers would range from Valdez north to Tok. Power purchase sale price will range between 7 cents and 14
cents per kWh.
TABLE 4.4.3
Pellet Sales Per Dry Ton Profit Per Ton Total Profit
Residential Bagged (25%) $300 $99 $866,250
Residential Bulk (25%) $275 $74 $647,500
Commercial Bulk (50%) $250 $49 $428,750
Total Annual Profit $1,942,500
Applicants analysis, Manufactures Estimates, Consultants Estimates, Industry Standards
4.4.4 Business Plan
Business Plan for Wood Pellet Production Glennallen, Alaska
Prepared by
Ahtna Land Department‐Energy Division
24th June 2008
Ahtna, Inc. Land Department-Energy Division
INDEX
1.0 Overview
2.0 Process
3.0 Market opportunities
4.0 Revenue
5.0 Costs
6.0 Profit
7.0 Staffing & Management
8.0 Finance required
9.0 Conclusions
1.0 Overview
It is clear that there is a growing need and future demand for wood pellets as the market for renewable energy expands.
Wood biomass pellet plant is being included in energy strategies for new and existing properties worldwide and
currently there is a huge shortage of readily available feed‐stocks for these. Power generation from wood biomass will
increase while fossil fuel prices are increasing and will remain so while demand outstrips supply. This provides a major
opportunity for a wood pellet plant close to the source of the raw materials required for their production.
Ahtna, Incorporated an Alaska Native Regional Corporation is taking advantage of this burgeoning market by utilizing the
biomass resources on nearly 2 million acres including over 600 million board feet of saw timber with an estimated
amount of over 1 billion board feet of saw timber available within the region. In fact Ahtna’s previous timber sales
revealed an average of 20‐40 tons of biomass per acre which would produce nearly 4 million tons of biomass for wood
pellet production over the next 49 years! The major tree species is comprised of 80 percent white spruce and black
spruce and 20 percent Aspen, Birch and Cottonwood. The quality of the raw material is such that most this output is not
suitable for traditional industries of pulp or sawn timber production. In addition a significant quantity of the material has
been affected by the spruce beetle epidemic and is therefore in need of removal. Therefore this raw material is plentiful,
low cost and does not qualify as deforestation i.e. it is a totally sustainable source of primary feedstock.
Furthermore, Ahtna owns an ideal site for the facility located at milepost 112 Richardson Highway and a geotechnical
report has been prepared for subject property. Total investment to date in the project including analysis, staff expense,
fair market property value, various reports and standing timber value is over 300 million dollars.
Part of this timber output will be processed in a state of the art plant which will produce premium and standard wood
pellets. Harvesting 75,000 ton per annum will produce a minimum of 35,000 ton of pellets. Remaining biomass not
utilized in wood pellet production will be utilized in cogeneration.
2.0 Process & Plant
Volume of forest biomass output including methods of extraction
• The current timber resource has the potential to produce over 70,000 ton of biomass a year through
management and NOT deforestation
• The larger, better quality saw logs will be utilized for commercial and residential construction material as well as
wood chips for potential commercial electrical generation and cordwood to residents.
• Extensive further timber sales are already in negotiation with the Alaska Department of Natural Resources‐
Division of Forestry, Bureau of Land Management, Chitina Native Corporation, Chugach Native Corporation,
University of Alaska and private land owners
• Extraction and forestry management will be subcontracted to local logging contractors on a 3‐5 year contract
basis at an agreed price with direct supervision by Ahtna.
• An Ahtna management team will supervise extraction and the pellet production process.
Pellet production process & facilities & equipment required
• A chipping plant will initially treat the raw timber brought from the forest to the plant site by specialized
transportation
• A milling and wood pellet plant is required capable of producing 35,000 ton of wood pellets per annum with
expansion in the future to 50,000 ton.
• Discussions are advanced and costs received from alternative suppliers for the design and supply of the plant
equipment.
• Infrastructure, buildings and storage silos have also been priced and are included in our cost schedules
• Feedstock storage of 15,000 ton is required on site as a production buffer to allow 16 weeks operation during
the summer season when access to forest product is costly.
• A Cogeneration plant is included which will run on wood waste products from the timber process (hog fuel)
which will provide the pellet plant power and heat for the drying process. Grid connection will provide power
backup.
Transport
Two phases of transport are required; from the forest to the plant and from the plant to the distribution sites and end
users. Both of these phases will be subcontracted to a local carrier who will competitively bid for a three year contract.
Cost estimates have been gained and are included in the financial model.
3.0 Market Opportunities
Climate Change is recognized as the single biggest threat to our planet. High Wood pellets are both simple to produce
and have a very low technology risk.
Rising energy prices are making the cost of wood pellets a greater savings throughout North America even without the
clear environmental benefit.
• We are gaining heads of terms and letters of intent to purchase wood pellets for the next 3‐5 years
• The fuel pellet market in North America, Alaska and beyond is increasing with the use of more pellet boilers.
• The market in North America is estimated to be over 1 million ton with current production of only 600,000 ton.
• Global pellet market is estimated to be 100 million ton annually
4.0 Revenue
• Current sales price projection in Alaska for premium bagged pellets is $250‐$275 per ton on a wholesale basis as
a minimum. It is expected that negotiated contracts will produce higher prices. Current average retail price is
over $380 per ton. These sales will generate $1,732,500 per annum in revenue from pellet sales.
• Current sales price projections in Alaska for standard bulk commercial pellets are $225‐$250 per ton. There are
no available retail prices for bulk commercial grade pellets available. These sales will generate $857,500 per
annum in revenue from pellet sales.
5.0 Costs
• Cost of production for pellets are $201 per ton including extraction costs
• Capital required for the site preparation, construction and production plant for pellets is estimated at $8.6
million.
6.0 Profit
Anticipated total annual profit from wood pellet sales, wood chips, cordwood and saw logs is in excess of $3 million per
annum.
7.0 Staffing and Management
The total employment rate for pellet plant both direct and subcontract labor (including extraction and transport etc) is
43.
Site manning will require 8 operatives (on shift), a plant manager, administrator, accounts clerk and human resource
specialist.
8.0 Finance required for Pellet Plant
Given the investment already made by Ahtna into the project in cash, property and natural resources the remaining $8.6
million required will be in the form of grants and low interest loan guarantees
9.0 Conclusions
This project is the pre‐construction and engineering phase of a potential wood pellet project rated at 35,000 ton per
annum wood pellet production at this site in Glennallen, Alaska.
The inclusion of a Cogeneration plant makes economic sense due to the relatively low cost of feedstock and availability.
Transportation, manning and management would all benefit from a site which accommodates both pellet and electrical
power generation.
4.4.5 Analysis and Recommendations
Research, current trends in rural lifestyles and fossil fuel prices have indicated that the Alaskan family and
commercial businesses are severely hampered by the high and unstable costs of fossil fuels, particularly heating
oil for their homes, businesses and schools. Our estimates include nearly 1,000,000 gallons of home heating oil
is used in the Copper River basin annually. This amount does not include State facilities or industrial type
operations. Ahtna believes that if we can partner with the State of Alaska Energy Authority, US Department of
Energy and other agencies, we can reduce the fossil fuel use in the State by 4.2 million gallons within 2‐years
utilizing the local wood biomass resource. This would equal a savings of approximately $9,000,000 annually! The
savings would remain in the local economies and support a sustained rural labor workforce, provide a reduction
in wild land fire threat, improve habitat for forest animals, thus increasing harvestable populations, and help
reduce our States carbon footprint.
The previous cost analysis gives solid data to confirm the long‐term viability of the proposed wood pellet project
and subsequent wood chip and cordwood systems that would be made available by such an investment.
However, the dilemma arises that without pledged commitments to purchase the wood pellets with Fuel
Purchase Agreements prior to construction by School Districts, State and Federal facilities, military bases, Village
organizations, etc., the risk factor is too great to invest large amounts of capital.
Our recommendation is to conduct a marketing strategy, which would include sale agreements, in conjunction
with a final engineering and design of this project.
SECTION 5 – PROJECT BENEFIT
TABLE 5
Annual Annual
Life‐of Project 50‐
years
Life‐of Project 50‐
years
*Gallons *Dollars($) Gallons Dollars($)
Fuel Displacement based on 35,000 dry Tons 4,270,000 $17,080,000 213,500,000 $854,000,000
Annual Revenue based on $4.00/gal. $1,942,500 $97,125,000
Annual Incentives (tax credits) $291,375
Additional Annual Revenue
Terrestrial Carbon Sequestration (based on CCX $7/ton) $26,250 $1,312,500
Direct Carbon Reduction (pending US carbon limits) $70,000 $3,500,000
USDA Fuel Reduction Habitat Enhancement $37,500 $1,875,000
Wood Chip Sales (2500 tons @ $150/ton) $375,000 $18,750,000
Cordwood Sales (400 cords @ $150/cord) $60,000 $3,000,000
TOTALS $19,882,625 $979,562,500
• There are no identified “non‐economic” benefits of this project.
SECTION 6 – GRANT BUDGET
TABLE 6
Funding Source
Construction $8,630,000 AEA
Timber Resource $6,880,000 Ahtna
Property $250,000 Ahtna
Pellet Stoves $450,000 AEA
Sale Agreements‐Marketing $150,000 AEA
Annual Production Costs $7,035,000 Ahtna
Total grant Funds Requested $8,630,000 AEA
Other Potential Funding Sources
USDOE, BIA, USDA, USDOL, USHUD $863,000
The funding sources for this project, comprised of a total amount of $15,760,000, will be funded by approximately half
or $7,200,000 by Ahtna, Incorporated. The remaining funds will come in the form of Alaska Energy Authority Grants
upon approval of the State Legislature, in the amount of $8,630,000; of which an estimated ten percent will be available
in Federal matching funds through the USDOE and USDOI‐BIA. The designated operating budget will be entirely from
the sales of the wood pellets, wood chips, saw logs and cordwood. This amount is projected to exceed $2,000,000
annually and does not include the public benefits of employment, direct savings from biomass energy use, reduction in
fire fuel loads creating less fire fighting expense, increased terrestrial carbon sequestration (healthy, vigorous forests
capture more CO2) and improved forest animal habitat. Another non‐budgeted public benefit will be increased year
around access to remote property currently managed by the State of Alaska, Bureau of Land Management and US Park
Service, which is expected to increase recreational opportunities and future resource development.
SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
A. Resumes of Applicants Project Manager, Key Staff, Partners, Consultants and Suppliers
Supplier: Equipment Dynamics, Inc. Schnecksville, PA.
Supplier: Munch Mechanical, Germany
Energy Consultant: Construction Management, LLC, Coeur d’ Alene, ID.‐Jack Dudley (Pending contract)
Energy Consultant: TurnAround Corporation (ITAC) Chester, VA.‐Steve Gordon (Pending contract)
Project Manager Site Construction Phase: Ahtna Construction and Primary Products Corporation‐John Weiss
Project Manager Facility Construction Phase: Ahtna Engineering, LLC‐Chris Smith
Key Staff: Kathryn Martin‐Ahtna Land and Resources
Key Staff: Brenda Rebne‐Ahtna Corporate Affairs
Key Staff: Joe Bovee‐Ahtna Land and Resources Energy Division
Key Staff: Michelle Anderson‐Ahtna Development Corporation
Applicants will provide personal work resumes in separate attachment.
B. Cost Worksheet
1. Renewable Energy Source
Annual average resource availability. 75,000 green tons of wood biomass
Unit depends on project type (e.g. wind speed, hydropower output, biomass fuel)
C.
2. Existing Energy Generation
a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank)
i. Number of generators/boilers/other n/a
ii. Rated capacity of generators/boilers/other n/a
iii. Generator/boilers/other type n/a
iv. Age of generators/boilers/other n/a
v. Efficiency of generators/boilers/other n/a
b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank)
i. Annual O&M cost for labor $1,570,000 (does not include contracted biomass harvest)
ii. Annual O&M cost for non‐labor $5,465,000 (includes biomass harvest and shipping)
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] 1 megawatt
ii. Fuel usage
Diesel [gal] None
Other 20,000 tons wood biomass
iii. Peak Load 750 KW
iv. Average Load 600‐700 KW
v. Minimum Load n/a
vi. Efficiency n/a
vii. Future trends n/a
d) Annual heating fuel usage (fill in as applicable)
i. Diesel [gal or MMBtu] n/a
ii. Electricity [kWh] n/a
iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] Wood waste (hog fuel) 7,500 green tons
vi. Other n/a
D.
3. Proposed System Design
a) Installed capacity 35,000 dry tons wood pellets 1 Megawatt electricity
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu] n/a
ii. Electricity [kWh] 1 megawatt from 20,000 tons wood waste
iii. Propane [gal or MMBtu] n/a
iv. Coal [tons or MMBtu] n/a
v. Wood [cords, green tons, dry tons] 75,000 green tons
vi. Other n/a
E.
4. Project Cost
a) Total capital cost of new system $6,740,000
b) Development cost $1,890,000
c) Annual O&M cost of new system $7,035,000.
d) Annual fuel cost Wood waste 20,000 tons @ $46/green ton
F.
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity Varies seasonally 15,000‐20,000 gallons
ii. Heat 1,000,000
iii. Transportation n/a
b) Price of displaced fuel $4,000,000 CRB $5,000,000 State Total $9,000,000
c) Other economic benefits Jobs, Fire reduction, Habitat enhancement, Reduced Carbon
d) Amount of Alaska public benefits $20,233,000 and maintain rural lifestyle
G.
6. Power Purchase/Sales Price
a) Price for power purchase/sale .07‐.14 cents per kwh
H.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 6:1
Payback $2,000,000/yr. does not include creation of new industry, woodchip/sawlog
C. Grant Budget Form
BUDGET INFORMATION
BUDGET SUMMARY:
Milestone or Task
Federal
Funds
State
Funds
Local
Match
Funds
(Cash)
Local
Match
Funds (In‐
Kind)
Other
Funds TOTALS
1 Fuel Sale
Agreements 150,000 150,000
2 Engineering 325,000 325,000
3 Construction 1,415,000 1,415,000
4 Plant Equipment 6,740,000 6,740,000
5 Property 250,000 250,000
6 Timber Resource 6,880,000 6,880,000
Milestone # or Task
#
BUDGET CATEGORIES: 1 2 3 4 5 6 TOTALS
Direct Labor and
Benefits 138,500 50,000 188,500
Travel, Meals, Per
Diem 10,000 10,000
Equipment 1,500 6,440,000 6,441,500
Supplies 0
Contractual Services 325,000 300,000 625,000
Construction Services 1,365,000 1,365,000
Other Direct Costs 250,000 6,880,000 7,130,000
TOTAL DIRECT
CHARGES 150,000 325,000 1,415,000 6,740,000 250,000 6,880,000
D. Electronic Version of the Entire Application
Enclosed
E. Governing Body Resolution
Attached
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
Joe Bovee
Signature
Title Ahtna, Inc. Land and Resources‐Energy Division, Resource Specialist
Date 11/2/2008