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ALASKA GREEN ENERGY
November 10, 2008
Mr. Butch White, Grant Manager
Renewable Energy Grant Program
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, Alaska 99503
Re: AGE'S Chignik Lake CBM Concept Design Grant Application
Dear Mr. White:
Alaska Green Energy, LLC (AGE) in cooperation with the Lake and Peninsula Borough, is pleased to
submit this grant application to determine the feasibility and develop a conceptual design for the
development of CBM resources to serve Chignik Lake. Chignik Lake currently uses diesel fuel that must
be lightered in from Chignik as its base fuel for heat and power. Total diesel fuel costs for power
generation alone exceeds $320,000 annually. CBM gas could reduce these costs significantly and
replace diesel as the community's base fuel. While the community is assessing other alternative energy
resources, CBM gas is the only potential resource that could provide Chignik Lake with a sustainable,
low cost fuel option 24/7, 365 days a year without interruption. This assessment project will determine
CBM's viability and compare its potential to other alternative energy resources. This project will also
assess the feasibility of delivering CBM gas to Chignik Lagoon and Chignik.
AGE has been in contact with the Lake and Peninsula School District and the Bristol Bay Native
Corporation relative to this project and they have both verbally expressed an interest in this project. An
integral part of this project will be to work with all stakeholders initially to develop support and
understanding of the CBM resource, our proposed environmentally and socially sensitive methods of
developing the resource, and the need to develop a long term O&M program.
State and Federal studies have indicated that the Chignik area has a reasonable good potential for
viable CBM resources. This project will verify that potential by drilling, coring and testing for CBM
resources in the Chignik Lake area. The project will assess the resource's viability, the Chignik Lake's
existing power plant and electrical distribution system and the feasibility of delivering these resources to
the communities of Chignik Lagoon and Chignik.
We look forward working with you on this project. Please contact Bob Gross, Vice President or
Operations or myself at 907-746-1815 should you have questions or require any additional information.
Sincerely,
Ri' cha tryken,
Executive Director
Alaska Green Energy, LLC
cc Lamar Cotten, Manager, Lake and Peninsula Borough
Jack Moores, Land Manager, BBNC
Lake and Peninsula Borough School District
Clean, Efficient Power... Now