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HomeMy WebLinkAboutPlasma Gasification Solena Group App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 20 9/2/2008 Solena Group A Renewable Energy Company Grant Application Renewable Energy Fund (AEA-09-004) November 7, 2008 Butch White, Grant Manager Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, AK 99503 Re: Renewable energy Fund, Grant Application Dear Mr. White, The Solena Group Inc. is a renewable energy company with its international headquarters in Washington, D.C. We are interested in developing a renewable energy project in the State of Alaska using municipal and wood wastes to produce renewable electric power. Attached is a grant application for the Renewable Energy Fund. Please let me know if there is anything else we should do to support our application and assist the State of Alaska to meet its renewable energy targets. Best regards, Dennis F. Miller Vice President and Science Advisor Solena Group 1900 K Street NW, Suite 626 Washington DC 20006 Tel: (202) 682.2405 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 20 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Solena Group Type of Entity: Independent Renewable Power Producer (IPP) Mailing Address 1900 K Street NW, Suite 626 Physical Address Washington DC 20006 Telephone (202) 682-2405 Fax (202) 682-1843 Email DMiller@solenagroup.com 1.1 APPLICANT POINT OF CONTACT Name Dennis F. Miller Title Vice President & Science Advisor Mailing Address 1900 K Street NW, Suite 626, Washington DC 2006 Telephone (202) 682-2405 Fax (202) 682-1843 Email DMiller@solenagroup.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.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 20 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. Resource Assessment/Feasibility Analysis/Conceptual Design 2.2 PROJECT DESCRIPTION Provide a one paragraph description of your project. At a minimum include the project location, communities to be served, and who will be involved in the grant project. This project will convert Biomass waste (municipal wastes, and sawmill/wood wastes) to renewable electric power. Possible site locations include Eielson Air Force base near Fairbanks and landfill locations near Anchorage, Kodiak and Juneau. Our plant will provide electricity to local communities (local/military schools, residential, Air Force base and civilian airports). The project will involve Solena Group and its partners (GE, MPR Associates, Ford Bacon & Davis and Deutsche Bank). 2.3 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. Include a project cost summary that includes an estimated total cost through construction. Funds needed for the initial part of the project – Conceptual Engineering Design and Financial Analysis (CEDFA) are ~ $600,000. Additional contributions could come through financial partner – Deutsche Bank. The estimated total project cost, including construction would be ~$100MM. This plant will use approximately 500 tons/day of feedstock and produce ~ 40 MW renewable electric power. 2.4 PROJECT BENEFIT Briefly discuss the financial benefits that will result from this project, including an estimate of economic benefits (such as reduced fuel costs) and a description of other benefits to the Alaskan public. Benefits: 1. Reduced cost of energy. 2. Moving away from petroleum based to local fuels. 3. Creation of local jobs. 4. Fostering a local involvement to create energy independence. 5. Reducing the environmental footprint of energy creation and reduced pollution. 2.5 PROJECT COST AND BENEFIT SUMARY Include a summary of your project’s total costs and benefits below. 2.5.1 Total Project Cost (Including estimates through construction.) $ 100,000,000.00 2.5.2 Grant Funds Requested in this application. $ 300,000.00 2.5.3 Other Funds to be provided (Project match) $ 300,000.00 (50%) 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 600,000.00 2.5.5 Estimated Benefit (Savings) $ TBD 2.5.6 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.) $ TBD Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 20 9/3/2008 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. Solena Group, with its partners will manage the project. Management assistance from AEA will be beneficial from an overall project stand-point. 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.) 1. CEDFA: 6 months, end 2. Front end Engineering and Design (FEED): 6 months, end 3. Engineering, Procurement & Construction (EPC): 30 months, end 4. Start-up and commissioning: 3 months, commercial. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. 1. CEDFA: Technical and financial feasibility, project cost estimations 2. FEED: Potential technical, scale-up issues and failure modes, trouble shooting. 3. EPC: Overall project metrics identified and tracked. 4. Start-up and 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. CEDFA: Solena, MPR and Ford Bacon & Davis FEED: Solena, Rentech, GE, MPR, Ford Bacon & Davis EPC: TBD Financing: Deutsche Bank A brief resume of Solena staff is attached in the appendix 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Project progress and schedules will be monitored using various metrics on product and process performance and Gantt charts that will be communicated to keep the Authorities informed of the status. 3.6 Project Risk Discuss potential problems and how you would address them. Potential problems include risks associated with product and process performance, which will be monitored using a Risk assessment scorecard. Risk mitigation and abatement plans will be developed throughout the project timeline to minimize the potential of project failure. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 20 9/3/2008 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 of the project you propose to undertake with grant funds. Solena’s plasma gasification process can take multiple wastes, including woody biomass waste, green wastes, agricultural wastes, waste tires, and any other biogenic wastes. Coke is used as a catalyst and may supplement some heat necessary for gasification. The hydrocarbons are gasified to produce syngas, while the ash present in these materials is effectively separated and vitrified into an inert slag. The syngas then goes through a cleaning stage where acid gases, volatile metals and mercury are removed. The cleaned syngas, which now primarily consists of carbon monoxide and hydrogen, is used to produce sulfur free bio - jet fuel (using the advanced FT Process) and renewable electric power. During Phase II – Feasibility Analysis and Conceptual Design, the following analysis will be carried out to meet the requirements: 1. Energy Resource: Analysis of municipal waste, wood and sawmill residue and any other feedstock availability, and identification of project site locations. 2. Energy Design (Fuel and electric power): current consumption, growth projections, transmission and distribution. 3. Costs: Conceptual level costs for design, construction, O&M, land, taxes,… 4. Benefits: Annual fuel/power replacement, tax and other incentives, employment and environmental. 5. Agreements: Fuel sale, Power purchase, permits,…  If you are applying for grant funding for more than one phase of a project provide a plan 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. 4.1 Proposed Energy Resource Describe the potential extent/amount of the energy resource that is available. Garbage: ~ 650,000 tons/year, Wood: > 200,000 tons/year, Tires: 5000-10000 tons/year 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. No available data 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. 40 MW Gross, 32 MW net utilizing 500 tons/day biomass. All the first generation plants did not produce power. E.g. GM plant in Defiance-Ohio processes 100 tons/day scrap metal, seven plants designed by our founder and built in Japan handle ~10 tons/hr of ash from waste-to- energy incinerators. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 20 9/3/2008 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. We have carried out a preliminary review of the available resources. With ~650,000 tons/year municipal waste generation in Alaska and substantial amounts of high calorific value waste wood available, these resources are ideal for plasma gasification to syngas that can be used for production renewable electric power. This project will have a positive impact on energy independence, environmental stewardship, and economic benefits to the Alaskan community. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The system proposed is the Solena IPGCC process for producing renewable electric power. The design process takes 6-8 months. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 20 9/3/2008 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. The system proposed is the Solena IPGCC process for producing renewable electric power. The design process takes 6-8 months. The plant site needs ~20 acres of land. We will apply for all the necessary permits before construction begins. Since there are no contamination or pollution issues, the plant would be considered environmentally benign. 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 The renewable energy technology involves plasma gasification of municipal waste and wood waste to produce high quality syngas used to generate renewable electric power.  Optimum installed capacity 40 MW gross, 32 MW net  Anticipated capacity factor 500 tons/day feedstock  Anticipated annual generation ~ 256 Million kWhr  Anticipated barriers Availability of feedstock  Basic integration concept Ability to bring together feedstock, produce syngas, generate and sell electricity. Integrating that into community through local power authorities  Delivery methods Delivery through power lines 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. We are not interested in land ownership. Would like to lease 20 acres from landfill owner or from the State/Federal government. The land should have adequate infrastructure to bring the biomass and export the electricity to the grid. 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 Permits for construction, air emissions, water emissions, operating the plant and others  Anticipated permitting timeline Six months  Identify and discussion of potential barriers Major public opposition: Mis-perception that gasification is incineration. However, we have noticed that after the public learns about the environmental benefits of the plant, this barrier is removed. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 20 9/3/2008 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 None of these are applicable because our process is environmentally benign and in fact protects the environment. 4.4 Proposed New System Costs (Total Estimated Costs and proposed 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 ~$100 MM, Phase II: $600,000  Requested grant funding $300,000  Applicant matching funds – loans, capital contributions, in-kind $300,000  Identification of other funding sources Deutsche Bank – if approved  Projected capital cost of proposed renewable energy system ~$100 MM  Projected development cost of proposed renewable energy system ~$5 MM 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. 3% of total capital cost  Total anticipated project cost for this phase CEDFA: $600,000  Requested grant funding $300,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 20 9/3/2008 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following:  Identification of potential power buyer(s)/customer(s) Local utility and/or Federal Government  Potential power purchase/sales price - at a minimum indicate a price range 11-15 cents/kWhr  Proposed rate of return from grant-funded project ~26% 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. See attachment. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 20 9/3/2008 4.4.5 Business Plan 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. Our business plan is to finance, build, own and operate any plant in Alaska. We will provide O&M and other management functions. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. The funding we are requesting is for the economic analysis. Once we complete the CEDFA, we will then know what additional project work is necessary. 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 TBD  Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) Based on a 12 cents/kWhr PPA, estimated annual revenues are ~$30 MM.  Potential additional annual incentives (i.e. tax credits) We will apply for renewable energy credits (REC), tax and production credits if they are available.  Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) To be determined based on what how much we qualify for and what is available.  Discuss the non-economic public benefits to Alaskans over the lifetime of the project Public health/safety, landfill green house gas (methane) avoidance, provide employment opportunities for local communities. SECTION 6 – GRANT BUDGET Tell us how much your total project costs. Include any investments to date and funding sources, how much is requested in grant funds, and additional investments you will make as an applicant. Total project cost is ~$100 MM. We are requesting $300,000 in grant funds for Phase II (CEDFA). We will match $300,000 to supplement for the Phase II studies. Upon approval, we are expecting to receive financing of $100 MM from our financial partner – Deutsche Bank. Include an estimate of budget costs by tasks using the form - GrantBudget.xls Included Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 20 9/3/2008 SECTION 7 – 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 6. D. An electronic version of the entire application per RFA Section 1.6 E. Governing Body Resolution per RFA Section 1.4 Enclose a copy of the resolution or other formal action taken by the applicant’s governing body or management that: - authorizes this application for project funding at the match amounts indicated in the application - authorizes the individual named as point of contact to represent the applicant for purposes of this application - states the applicant is in compliance with all 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 Dennis F. Miller Signature Title Vice President & Science Advisor Date November 7, 2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 20 9/3/2008 Solena Team Dr. Robert T. Do., M.S., M.D. - Founder, Chairman of the Board and Chief Executive Officer. Dr. Do founded Solena in 2001. In 1995, Dr. Do partnered with Dr. Salvador Camacho, the NASA plasma scientist and "father of the plasma technology, to found Global Plasma Systems for the commercialization of plasma processes. Dr. Do then put in place a well structured organization with a balanced team of technical experts and business development executives in conjunction with major financial venture capital investment to create the Company, Solena Group Inc., for the development of green Bio Energy plants using plasma gasification technology in April 2001. Dr. Do executed strategic partnerships with world leading engineering and technology companies, such as Acciona, MPR, Ford Bacon Davis and Skanska, as well as major financial institutions such as Deutsche Bank AG London, and has successfully raised over $25 million for the Company from both equity investors and advanced funds from project sponsors. Dr. Do, with graduate degrees in Physics and Medicine from Georgetown University, is the lead author and inventor of the current SPGV technology patent filed and issued under the Patent Cooperative Treaty (PCT) worldwide. Dr. Do has extensive experience as an entrepreneur, environmental scientist and in executive management positions. Dr. Do is a member of the American Council on Renewable Energy, Who's Who of America's Professionals and Executives, the American Medical Association, and a member of the National Council of Science and Environment. Yves G. Bannel - Executive Vice President and Director. Mr. Bannel joined Solena in 2001 and has 30 years of experience in market strategy and project development throughout the world. This includes 10 years of senior management experience in the development, promotion and financing of turnkey projects in Europe, Africa, South America and the Middle East. From 1989 to 1994, Mr. Bannel was General Manager of Sateco, a French group dedicated to designing, manufacturing and selling high technology equipment for construction all over the world. During his tenure as General Manager, Sateco became a member of the top 50 companies in France in terms of sales growth, ROI and profitability allowing for the subsequent sale of the company. From 1975 and 1989 Mr. Bannel was successively the General Manager of C2EI, S&T, and Gielmetti. Mr. Bannel holds a Masters Degree in Business and a Law Degree from Hautes Etudes Commerciales (HEC) de Paris, and a diploma from Ecole Nationale de Aéronautique Civile (ENAC) de Paris. He has served three years as a Professor of Marketing at the Bordeaux School of Business and published three books on marketing industrial products. Mr. Bannel had been Regional President of the CNPF/French Association of Businessmen for five years. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 20 9/3/2008 Javier Madurga, M.Eng, C.Eng, MBA - Vice President, Corporate Development and Finance. Mr. Madurga joined the Company in 2006 and is responsible for corporate finance, investment analysis and project finance, and for supporting the CEO in developing strategic partnerships and exploring new market opportunities. Prior to joining Solena he worked for Acciona as a Corporate Development associate, working in the M&A, investment analysis, and business and project development fields, with a special sector focus in the energy and environmental services industries. His experience in these fields includes large and medium cap deals, as well as corporate venturing / development capital investments. In his earlier career, Mr. Madurga was a process engineer and consultant in the Oil & Gas industry in the UK, working for Bechtel Corporation and M.W. Kellogg, part of the Halliburton group. Mr. Madurga has an MBA from INSEAD, and a Chemical Engineering degree (MEng Hons.) from Imperial College (London), and he is a Chartered Engineer (C.Eng) under the UK’s Institute of Chemical Engineers. Rocio M. Velez, Esq - General Counsel and Vice President, Business Development Latin America. Ms. Velez joined Solena in 2001 and is an attorney holding a Juris Doctor degree from the Pontifical Catholic University of Puerto Rico. Ms. Velez is as an active member of the Bar in the District of Columbia and Puerto Rico. Ms. Velez's experience includes over eleven years of sales, marketing, and administrative positions, particularly in Latin America and the Caribbean. From 1993 to 1995, Ms Velez was a corporate sales executive at American Express, Inc, where she established individual and commercial accounts that represented over $3 million dollars in annual sales for the Company with multinational client corporations including, Playtex Corporation, Wendy's, Inc., and Keebler Company. From 1999 to 2001, Ms. Velez was the Associate Director at the Grants Division of the Puerto Rico Federal Affairs Administration in Washington D.C, where she provided extensive training in areas of procurement and federal compliance, Grant writing and Economic Development and served as a lead legislative liaison to more than 58 municipalities in Puerto Rico, over 200 non-profit organizations and Hispanic base community organizations in the northeastern region. Adriana L. Branch - Director, Business Operations. Mrs. Branch joined Solena in 2001. Mrs. Branch is responsible for is responsible for preparing financial statements, maintaining cash controls, managing the payroll and personnel administration, purchasing, maintaining accounts payable and managing office operations, and human resources. Ms. Branch also is responsible for assisting the VP of Finance in corporate finance and assisting the CEO in various activities. Mrs. Branch has been instrumental in organizing and coordinating the company's administrative and financial matters in all Solena's office as well as its representative offices worldwide. Prior to joining Solena, Mrs. Branch acted in the same capacity for Global Plasma Systems from 1998-2001. From 1996-1998 acted as a supervisor at Georgetown University Medical Center and as business manager for a medical practice. Mrs. Branch has an MS in Financial Management and Accounting and a BS in Finance and from the University of Maryland. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 20 9/3/2008 Sylvain Motycka – Plasma and System Engineer. Mr. Motycka is a Plasma and System Engineer. Mr. Motycka received a MS in Plasma Treatment from the Ecole Polytechnique de l'Université d'Orléans and a MS in Plasma Processes from the Université d'Orléans, in France. Mr. Motycka developed and patented plasma systems for surface treatments for SurfX Technologies, a US based company, and was in charge of the plasma heat modeling at the Czech Academy of Sciences in Prague. Dennis F. Miller - Vice President and Science Advisor. Mr. Miller joined Solena in 2001 and is responsible for business development in North America and Solena's government liaison activities, and is based in Washington DC. Mr. Miller has more than 30 years of experience in waste management, energy, and environmental systems, including an appointment as environmental scientist, The University of Chicago's Center for Urban Studies where he helped design an innovative waste water spray irrigation system for the City of Muskegon, Michigan; Senior Science Advisor to the Assistant Secretary of Energy, U.S. Department of Energy's (DOE) Waste Management Secretariat, where in part he helped coordinate advanced and innovative technologies for nuclear waste management with all of DOE’s national laboratories, as well as relevant European laboratories; USDOE representative to the United Nations Conference in Rio de Janeiro on Energy and the Environment; represented USDOE at the U.S. EPA’s five Hazardous Substance Research Centers; Manager for International Science and Technology issues and DOD’s Advanced Projects Agency for EG&G and Lockheed Martin as part of the Idaho National Engineering and Environmental Laboratory’s office in Washington, D.C.; Energy Advisor to the Chairman of the Government Operations Committee, U.S. House of Representatives; appointed by Senator Edward Kennedy as Executive Director of the Office of Technology Assessment’s Advisory Council; and he served at the National Academy of Sciences, where he directed the Energy Engineering Board and the Board on Army Science and Technology. He received the Legion Of Merit Medal from the Secretary of the Army for his work in environmental science and congressional affairs. In 2006, he was awarded a Fulbright Grant to teach at the National University of Lanus and provide public lectures in Buenos Aires, Argentina, on advanced technology for producing renewable energy and treating low level nuclear wastes. He received an AM degree in Environmental Science from the University of Chicago and a MA from The Ohio State University in the History of Physics. Dr. Prashant G. Joshi, PhD. - Vice President Technology. Mr. Joshi joined Solena in 2007 and is responsible for implementing a Six Sigma culture in Process Engineering and QA at Solena. From 1999 to 2007, Mr. Joshi was employed by Momentive Performance Materials (formerly GE, OSi, Crompton, and Witco) in New York. There, he played a pivotal role in contributing to the business that generated total revenues in excess of $100 million in specialty chemicals by leading new product development, providing technical support to "Green" tire customers worldwide and mentoring and volunteering in community services. Mr. Joshi received a BS in Chemical Engineering from IIT-Kharagpur, an MS from the University of Waterloo and a PhD from the University of Akron. In India, Mr. Joshi worked briefly at Larsen & Toubro as a trainee and as an intern at NCL Pune. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 20 9/3/2008 Angel Prado - Vice President Operations. Mr. Prado joined Solena in 2006 and is responsible for project management and logistics of European projects out of the Company's Madrid office. From 2003 to 2006, Mr. Prado was employed as project manager by Watlow, an electric heater and control systems manufacturer in Europe. From 2000 to 2003, Mr. Prado was employed as an energy trader by Conectiv Energy, an asset-backed merchant energy company owned by Pepco Holdings, Inc. As an energy trader, Mr. Prado was responsible for trading in electricity in the hourly and daily markets in the NYISO, New England ISO and PJM Interconnection and finding new and lucrative trading opportunities with other major RTOs in North America including MISO, SPP and Ontario Independent Electricity System Operator. Mr. Prado holds a B.S. in Mechanical Engineering from the University of Maryland at College Park and a B.S. in Physics from Washington College in Maryland. David Luu, Esq.- Legislative Counsel. Mr. Luu has been Legislative Counsel for the Solena Group since 2006. From 1999 to 2004, Mr. Luu worked as Legislative Aide on Science and Technology and Health Care at the U. S. Senate. Mr. Luu has a Juris Doctor degree from the University of Maryland and is a member of the Maryland Bar. Board of Directors Hung Bui Quang, M.Eng, MBA - Director. Mr. Bui Quang joined Solena as a member of the Board of Directors of Solena in 2006. Mr. Bui- Quang has extensive experience in project development and project financing, corporate equity fund raising, and is advising Solena regarding its capital strategy for BioEnergy Plant funding. Mr. Bui-Quang has more than 30 years of experience in the energy sector with Hydro Quebec, Gaz Metro Limited Partnership and International Consulting Engineering firms. Mr. Bui Quang is the former Vice-President of International Business Development of Hydro-Quebec; a major integrated electric utility in Canada with an installed Capacity of 35,315 MW, and annual revenue of more than $11.3 billion. Mr. Bui-Quang currently serves as the Regional Vice-President of RSWI, a consulting engineers firm active in 43 countries and as the Chairman of the Board of Directors of the Vietnam- Canada Engineering Company (VCE) with the head office in Hanoi, Vietnam. Mr. Bui-Quang holds a Bachelor of Science and a M.Sc. in Chemical Engineering from Ecole Polytechnique (University of Montreal, Canada) and an MBA from McGill University (Montreal, Canada). In 1992, Mr. Bui-Quang was awarded the prestigious title "Nouveau Performant 1992" (The New Management Elite 1992) by the Business Community of the Province of Quebec. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 20 9/3/2008 Dr. William A. Haseltine, PhD - Director. Dr. Haseltine serves as an independent Director in Solena's Board. He is the President of the Haseltine Foundation for Medical Sciences and the Arts, a foundation that supports access to high quality health for the poor and middle class of developing countries and that also fosters a dialog between sciences and the arts. He is also the Chairman of Haseltine Global Health, LLC, a company dedicated to creating new and more efficient means to develop new life saving drugs and medical devices. He is an Adjunct Professor at The Scripps Institute for Medical Research. William Haseltine has an active career in both Science and Business. He was a professor at Harvard Medical School from 1976-1993 where he was the chair of two academic research departments. He is well known for his pioneering work on cancer and HIV/AIDS. He is the Founder of Human Genome Sciences, Inc and served as the Chairman and CEO of the Company until 2004. He is also the founder of seven other successful biotechnology companies. He serves as an advisor to CMEA, a venture capital company, and to several biotechnology and pharmaceutical companies. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 20 9/3/2008 Application Cost Worksheet Please note that some fields might not be applicable for all technologies or all project phases. Level of information detail varies according to phase requirements. 1. Renewable Energy Source The Applicant should demonstrate that the renewable energy resource is available on a sustainable basis. Annual average resource availability. ~650,000 tons/yr Municipal waste + ~200,000 tons/yr wood waste + 10,000 tons/yr tires Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 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 1 plasma gasifier, 1 GE Frame 5 turbine in combined cycle ii. Rated capacity of generators/boilers/other Gasifier: 20tons/hr, Turbine: 40MW iii. Generator/boilers/other type NA iv. Age of generators/boilers/other NA v. Efficiency of generators/boilers/other Electrical efficiency of turbine is ~50% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 3% of capital cost (total O&M for the entire plant) ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ~256 Million kWhr ii. Fuel usage Diesel [gal] NA Other NA iii. Peak Load NA iv. Average Load NA v. Minimum Load NA vi. Efficiency ~50% vii. Future trends NA d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] NA 1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage Municipal Light and Power. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 20 9/3/2008 ii. Electricity [kWh] NA iii. Propane [gal or MMBtu] NA iv. Coal [tons or MMBtu] NA v. Wood [cords, green tons, dry tons] ~160,000 tons vi. Other ~ 10,000 tons (tires) 3. Proposed System Design a) Installed capacity b) Annual renewable electricity generation i. Diesel [gal or MMBtu] NA ii. Electricity [kWh] ~256 Million iii. Propane [gal or MMBtu] NA iv. Coal [tons or MMBtu] NA v. Wood [cords, green tons, dry tons] ~160,000 tons vi. Other Tires ~10,000 tons 4. Project Cost a) Total capital cost of new system $ 100,000,000.00 b) Development cost $ 5,000,000.00 c) Annual O&M cost of new system $ 3,000,000.00 d) Annual fuel cost NA 5. Project Benefits a) Amount of fuel displaced for i. Electricity ~256 Million kWhr ii. Heat ~100 Million kWhr iii. Transportation NA b) Price of displaced fuel c) Other economic benefits Employment for over 40 people d) Amount of Alaska public benefits Clean air, clean water Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 20 9/3/2008 6. Power Purchase/Sales Price a) Price for power purchase/sale ~ 11-15 cents/kWhr 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Unknown (Need to do the financial analysis) Payback < 5 years Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 20 of 20 9/3/2008