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HomeMy WebLinkAboutSand Point Aleutian Wind EnergyRenewable Energy Funs! Grant Application November 10, 2008 Aleutian Wind Energy/AWE 4300 B Street, Suite 301 Anchorage, AK 99503 Phone: 907-762-8450 Contact: Nick Goodman /®AL/it7ENERGY HOr R/TY Renewable Energy Fund Grant Application SECTION 1 —APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Aleutian Wind Energy/AWE Type of Entity: Independent Power producer Mailing Address Physical Address 4300 B Street, Suite 301, Anchorage, AK 99503 Sand Point, Sanak Island, AK Telephone Fax Email 907.762.8500 907-278-2316 ngoodman@tdxpower.com Point of Contact Name Title Nicholas Goodman Manager, AWE Mailing Address 4300 B Street, Suite 301, Anchorage, AK 99503 Telephone Fax Email 907-762.8500 907.278-2316 ngoodman@tdxpower.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 housingauthorities); Y 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 ) Y 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. Y 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.) AEA 09-004 Grant Application Page 2 of 13 9/3/2008 ALASKA Renewable Energy Fund /WILD ENERGY AUTHORITY Grant Application SECTION 2 — PROJECT SUMMARY Provide a brief 1-2 Dacia overview of vour Droiect. 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. AWE, a wholly owned subsidiary of TDX Power, Inc. and an affiliate of TDX Sand Point Generating, Inc. proposes to complete an existing AEA/US DOE grant funded construction project with this grant. We will install (2) 500kW Vestas wind turbines and integrate them with an existing diesel plant. We also propose to install thermal nodes at 3 community facilities - the school, the clinic, and the rec center (in that priority) - to absorb excess electricity as needed. The second phase, to be constructed at a later date, will include installation of related infrastructure for an expanded district heating system to provide thermal energy to a larger number of commercial, industrial and residential buildings. 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. AWE is requesting additional funds for Phase I to add two Vestas V39 turbines to the existing power generation system to dramatically decrease the total consumption of diesel fuel and stove oil in Sand Point, Alaska. The harbor community of Sand Point is located several hundred miles southwest of Anchorage on the Shumagin Islands, just south of the Aleutian chain. This commercial fishing village of nearly 1,000 residents serves as a regional hub for crab and salmon fisheries, as well as other fisheries, and has generally enjoyed a healthy economy over the past ten years. TDX Sand Point Generating (TSPG), a wholly owned subsidiary of TDX Power, owns and operates the Sand Point electric utility. AWE will design, construct, operate, and maintain the entire project. 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. The revised total cost to complete AWE's first stage, two -turbine project is approximately $3.1 million. AWE proposes to supplement existing AEA and US DOE grants totaling $1,474,000 and additional contributed cash of $437,900 with an additional request for 639,806 to cover. project cost increases resulting from delays in the project over the last two years and additional thermal recovery for community buildings. 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. When complete, the implementation of the two -turbine based first phase will result in reduced liquid fuel consumption by the utility of over 152,318 gallons annually. This will provide net AEA 09-004 Grant Application Page 3 of 13 9/3/2008 /ENERGY AUTHORITY �ALASKA Renewable Energy Fund Grant Application savings to the community of approximately $770,700 per year at the most recent fuel price of $5.06/gallon. The majority of the fuel saved will be at the diesel plant - by our calculations 134,224 gallons. That is a savings of $679,173 at the most recent fuel price. Minus the cost of debt service for the project and O&M on the turbine, this will at the very least stabilize the cost of power. In the long term we expect to see a reduction in the cost of power to all ratepayers. The remaining 18,094 gallons will be saved by the Sand Point school, the clinic, and the rec center. This will be a benefit to many sectors of the Alaskan public. Schools are funded by the State of Alaska. The clinic is funded by grants through the IHS in Alaska. The Rec Center is funded by the City of Sand Point. TSPG will not charge for the electrons that heat the water to displace the fuel. 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.) $ 3,104,443 2.5.2 Grant Funds Requested in this application. $ $639,806 2.5.3 Other Funds to be provided (Project match) $ 437,900 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 1,077,706 2.5.5 Estimated Benefit (Savings) $ $770,000 annually 2.5.6 Public Benefit (If you can calculate the benefit in termsof$ dollars please provide that number here and explain how you calculated that number in your application.) 92,000 in annual fuel savings to community facilities SECTION — 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. John Lyons, Operations Manager for TDX Power, will be the Project Manager. Bruce Levy and Nicholas Goodman, Managers of AWE will have ultimate project responsibility Jito Coleman and Robert Guarini, both consulting engineers for TDX Power will design all aspects of wind diesel integration Resume's are attached to this application. 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.) The construction schedule attached shows an accelerated timetable to complete the work for Phase I in 2010. This schedule does not necessarily take into account the timing of the award, equipment availability, freight and barge schedules, availability of local labor, access and logistical challenges. AEA 09-004 Grant Application Page 4 of 13 9/3/2008 ALASKA 4ED Renewable Energy Fund '4MUD ENERGY AUTHORITY Grant Application The retrofit of the turbines, low load diesel and system controls and necessary power conditioning equipment will be installed with minimal service interruption on the island. A tentative schedule for the design and construction of improvements is attached. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. September 2009 is a key month for beginning construction of the wind turbines. Our biggest challenge will be the logistics of getting all equipment on site at this point. 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. TDX Power and AWE will use their own personnel and local labor to manage and implement every aspect of the proposed Sand Point project scope. TDX Powers' management team has a long record of power industry accomplishment in Alaska, the lower 48 and internationally. The 500kW Vestas wind turbines have been purchased and are being refurbished at Halus, a turbine refurbishing company in San Francisco, CA. TDX Power has worked successfully with Halus on three previous projects utilizing refurbished Vestas wind turbines. Excavation equipment, including a bulldozer with backhoe, bucket truck, ditch -witch, light boom truck, dump truck with trailer, and an excavator are available on the island. A 70 ton crane with a 100 foot boom is located at the harbor and is sufficient for unloading of barges. A larger crane, 100-110 ton, will be required to erect the wind turbine tower and nacelles. We know that there is barge service from Seattle and ideally, the equipment will not require transfer at an intermediate location. As there is regular boat service to the island, foundation and cabling work could be completed on a flexible schedule. Art Torres and Justin Godbehere, the power plant operators in Sand Point, will be integrally involved in the construction of the new additions to their plant. We want them intimately familiar with the equipment and the design of the new hybrid facility and the thermal nodes installed within the community. TDX Power will recruit additional local laborers that express an interest in maintaining and operating the plant in the future. We want to begin working with the next generation of plant operators with this installation. Nick Goodman, CEO, manages TDX Power, its subsidiaries and its operations on a daily basis. With 10 years experience in wind, hydro and fossil generation development and facilities management, Goodman is a well known participant in the Alaska power markets and a featured energy conference speaker. He is TDX Power's primary representative in its associations with the Company's customers, suppliers, banks, auditors, regulatory agencies and energy institutions such as the US Department Of Energy (USDOE), the Alaska Industrial Export and Development Authority (AIDEA), AEA, the Alaska Rural Electric Cooperative Association (ARECA) and the Alaska Department of Environmental Conservation (ADEC). The Company's chief operations officer, John Lyons, served 20 years as the Alaska Village Electric Cooperative's operations manager prior to joining TDX. He has designed, built and managed the operations of over 100 energy plants in remote Alaska. As well as the primary operations manager of TDX Power's regulated AEA 09-004 Grant Application Page 5 of 13 9/3/2008 ®ALASKA Renewable Energy Fund Grant Application electric utilities, Lyons is directly responsible for the operations and high availability record of the Saint Paul wind/diesel facility. He will play a very key and hands on role in the implementation of the wind project at Sand Point. TDX Power's chief design engineer, William Scott, provides the detailed engineering and modeling associated with all of the Company's utilities, projects and consulting contracts. He is a Registered Professional Engineer with 35 years experience in power generation, and an acknowledged authority in renewable as well as fossil fueled reciprocating and rotating prime mover technology and thermodynamic cycles. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. TDX Power's Project Manager and Sand Point Generating employees maintain regular contact. The lines of communication are well established. TDX Power will provide detailed quarterly reports to the AEA on the progress of this construction project as required by the grant award guidelines. 3.6 Project Risk Discuss potential problems and how you would address them. The number one problem this project will face is the infamous Aleutian weather. Severe weather determines when work can or cannot take place. TDX Power's roots are in the Aleutian Islands, though, and the company has learned to adapt. Shipments of materials will be sent well in advance of the work crew. On island personnel will inventory and report when all materials have arrived. Then, and only then, will the crew mobilize for travel to the site. We have included a contingency fund in our budget to cover travel and weather delays. 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. • 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. 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. Data was collected for 18 months starting in 2004 using a 20 meter anemometer tower on loan from USDOE Tribal Energy Programs. At that height the wind resource is rated Class 5 "Excellent". All calculations have been done with this resource evaluation. It is very likely that at the added height of the installed turbines an even more favorable wind resource will be available. AEA 09-004 Grant Application Page 6 of 13 9/3/2008 ,ALASKA Renewable Energy Fund � ENERGY AUTHORITY Grant Application As a coastal community Sand Point could consider ocean energy, but this is yet unproven technology. There are no adequate hydropower sites and no geothermal anomalies on the island. Woody biomass is virtually non-existent. There are no known coal bed methane or natural gas deposits. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size age, efficiency, and type of generation. The existing power generation and support equipment consists of the following: Unit Number Generator Set Manufacturer Model Number Engine speed Rating (prime) Starting Cooling Method I Year installed Efficiency (common cooling loop) kWh/gal 1 Caterpillar D-3516TA 1,200 900 Electric Radiator 2000 13.82* 2 Caterpillar D-3512TA 1,200 650 Electric Radiator 1994 13.82* 3 Caterpillar D-379T 1,200 400 Air Radiator 1976 13.82* 4 Caterpillar D-379T 1,200 400 Air Radiator 1976 13.82* 5 Caterpillar D-3512TA 1,200 650 Air Radiator 1986 13.82* * This is an average number for the powerplant as a whole calculated from PCE Reports in 2007. All five (5) generator sets are mechanically installed and connected to a common buss. The Generator Set Control System consists of seven (7) control cubicles of automated control panel assemblies. The Automated Control System provides two levels of control, first for sequencing of individual generator sets on and off the bus, and the second is the control of each generator set. Each level has a manual and an automatic mode. An existing Heat Recovery System is incorporated into the main powerhouse cooling loop. A plate and frame heat exchanger/heat recovery circuit provides space heat and domestic hot water for the adjacent office/apartment building. This heat recovery system serves as the structure's primary heat source for this building. There is also a conventional oil fired boiler located in the office/apartment service bay area, which is used as standby to the heat recovery system. 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. Currently Sand Point exclusively uses diesel fuel for electric generation. Like most homes and businesses, the clinic, the school and the rec center all use diesel for heat as well. A few homes have working woodstoves, but there is not a significant wood resource at this location to exploit. In 2007 the power plant generated 4,177,380 kWh's and used 303,840 gallons of fuel. As previously stated, we estimate the (2) wind turbines will produce 2,570,000 kWh annually, saving 152,318 gallons of fuel that would have been needed to produce electricity at the generating AEA 09-004 Grant Application Page 7 of 13 9/3/2008 sop/ONE)ALASKA Renewable Energy Fund 401D ENERGY AUTHORITY Grant Application plant and heat at the three community facilities receiving thermal nodes. Although TDX also owns the fuel distributorship in Sand Point, they are committed to making the cost of heating community facilities in Sand Point more affordable by reducing the need for diesel fuel. Heat from excess electricity will be less expensive than the diesel equivalent. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. In 2007 Sand Point Generating sold 4,058,732 kWh of electricity. Not included is the amount that could be sold to Trident Seafood. We estimate the facility uses between 8,000- 12,000kWh/month. The processing plant currently produces its own electricity from a diesel generating plant. If Sand Point Generating could provide power at a rate competitive to their self -produced diesel power, Trident would connect to the local grid. A large customer like Trident would help spread the cost around more for everyone. It is worth noting that Trident is also the local fuel supplier. 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energy technology specific to project location • Optimum installed capacity Anticipated capacity factor Anticipated annual generation • Anticipated barriers • Basic integration concept The wind energy system shall consist of the following components: Two (2) Vestas V-39 turbines, 500 KW each One (1) Low Load, High Efficient Diesel Generated CAT D-3456 One (1) Synchronous Compensator to provide reactive power support One (1) Demand device and automated load control One (1) Thermal tank secondary load control and binary load control, Power Plant One (1) Thermal tank secondary load control and binary load control, Clinic One (1) Thermal tank secondary load control and binary load control, Rec Center One (1) Supervisory management control The addition of wind power in the existing TDX Sand Point Generating facility will require the integration of several hardware components and control cabinets inside the powerhouse. Space will be required for the synchronous condenser and its controller, a wind system controller, and the secondary load controller. We will remove one CAT 379 standby generator from the powerhouse to make room for this equipment. The diesel in position 5 will be removed from service and replaced by a Caterpillar D-3456 rated at 500 KW. The control cabinets will be located in an enclosed area in close proximity to the wire trough, engines, and synchronous AEA 09-004 Grant Application Page 8 of 13 9/3/2008 /ALASKA Renewable Energy Fund ® ENERGY AUTHORITY Grant Application condenser. In addition, the secondary load heater will be located close to the powerhouse to ensure a quick response between the heater and the secondary load controller. The surplus wind power is absorbed in a heat recover system to maintain the power balance in the system. In a wind only mode, the voltage is controlled using synchronous (VAR) support, and the frequency is controlled using a variable dumpload. If wind energy is too great turbine output is curtailed or wind turbines are turned off. We predict the two Vestas wind turbines could produce 2,570,000 kWh/yr. 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. There are no existing land ownership issues and access to the project has been secured. 4.3.3 Permits Provide the following ,information as it may relate to permitting and how you intend to address outstanding permit issues. • List of applicable permits • Anticipated permitting timeline • Identify and discussion of potential barriers The following agencies have been contacted and have given their written approval regarding this project: FAA SHPO Department of Defense An environmental assessment was written for this project for a previous grant through AEA. USDOE, where some of the grant money originated, has held back on releasing the EA prepared for this project. We understand they are leery of avian interaction issues, specifically with eagles, despite documented observations and reliable anecdotal information stating otherwise. Perhaps the rationale is that studies conducted by local entities (the Pauloff Harbor Tribe's Environmental Coordinator and the Aleutian Region Representative to the Alaska Migratory Bird Co -Management Council were enlisted to document their observations) are not reliable. While we can understand that perspective, we do not believe there is cause for the results of the Eagle Monitoring Study in Sand Point to be questioned. We are seeking written approval from USFWS in Alaska in hopes it will spur USDOE to release the EA for public comment. 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 AEA 09-004 Grant Application Page 9 of 13 9/3/2008 /ALASKA Renewable Energy Fund © ENERGY AUTHORITY Grant Application There are endangered eiders in Sand Point, but not in the vicinity of the proposed turbine installations. USFWS has expressed concern for eagles in the area. Although eagles are not endangered or threatened in Alaska, they are birds of concern nationally. An Eagle Monitoring Study has been implemented by the Regional Tribal Consortium, APIA, in conjunction with the Pauloff Harbor Tribe of Sand Point. In consultation with Ellen Lance at USFWS in Anchorage, we hope to install monitoring cameras to add "objective eyes" to the project. All other issues have been addressed in the EA, which was prepared two years ago. A copy of the EA can be obtained upon request. 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 • Requested grant funding • Applicant matching funds —loans, capital contributions, in -kind • Identification of other funding sources • Projected capital cost of proposed renewable energy system AWE's project budget summary is attached to this application. AWE re -priced the project using a variety of price determination factors. Where updated vendor quotes and budgets could be provided, they have been included. The most significant cost increases in the budget are in the freight categories, where fuel surcharges have more than doubled since 2006. Estimates were gathered from both barge companies and freight consolidators. The other major area of budget growth is in the wind diesel control integration component. Recent experience at Tin City and in Hawaii has led our design engineer Robert Guarini to include additional control components to more fully regulate some aspects of the wind diesel system. This additional cost is more than made up for in wind turbine performance and diesel reductions. Additional information supporting budget items can be provided where requested. Project Development Cost The Project cost information is attached and summarized as follows: • Total anticipated project cost, and cost for this phase: $3,104,443 • Requested grant funding $ 639,805 • Applicant matching funds — loans, capital contributions, in -kind $ 990,638 • Identification of other funding sources US DOE/AEA • Projected capital cost of proposed renewable energy system $3,104,443 • Projected development cost of proposed renewable energy system N/A 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. • Total anticipated project cost for this phase AEA 09-004 Grant Application Page 10 of 13 9/3/2008 /® ALASHKA Renewable Energy Fund Grant Application AWE anticipates O&M costs to be $60/MW, and has budgeted to recover this amount in the PPA with TDX Sand Point generating. TDX derived this budgetary number from its existing wind power facility on St. Paul Island and other locations such as Tin City and Nikolski. AWE requests no funding for ongoing operations and management in this application. 4.4.3 Power Purchase/Sale The power purchaselsale information should include the following: • Identification of potential power buyer(s)/customer(s) • Potential power purchase/sales price - at a minimum indicate a price range • Proposed rate of return from grant -funded project A Draft Power Purchase Agreement has been reviewed by both AWE and its affiliate TDX Sand Point Generating and has been submitted to the Regulatory Commission of Alaska. Upon project completion, the PPA will become binding. . TVA G aG (abit or ff LSi 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project: Download the form, complete it, and submit it as an attachment. Document any conditions or sources your numbers are based on here. 4.4.6 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed businessstructures) and concepts that may be considered. As previously reported, TDX Power wholly owns and operates TDX Sand Point Generating, the local utility, and AWE the applicant. The utility plant has a stable local staff and excellent communications with the parent company. Two years ago Art Torres, the lead operator for the Sand Point plant, attended an intensive week-long training at the Vestas O&M Training Center in Portland, Oregon. TSPG is ready and eager to begin construction, operations, and maintenance of this proposed hybrid power plant. 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 economic analysis was performed using information in the Wind Resource Report. Bill Scott has developed his own software, "Down East' which was used to calculate the fuel savings from waste heat recovery and the thermal nodes. His software calculated a more conservative estimate for the number of gallons displaced and his numbers were used in this proposal. Even with his lower estimated savings, the result is significant. Once the system is operational, it will be just as critical to investigate what home owners and businesses can install in their respective building structures to continue to reduce the cost of energy. For instance, further integration of electric powered home heating devices in line with existing diesel fuel fired furnaces may further reduce the need for diesel fuel but more importantly utilize the lower cost electricity produced by the wind turbine. The next phase we envision will include installation of a third Vestas V39 and related infrastructure for an expanded district heating system to provide thermal energy to a larger AEA 09-004 Grant Application Page 11 of 13 9/3/2008 /®ALASKA Renewable Energy Fund � ENERGVAUTHORITV Grant Application number of commercial, industrial and residential buildings. SECTION 5— PROJECT BENEFIT Explain the economic and public benefits of your project. Include direct cost savings, and how the people of Alaska will benefit from the project. The benefits information should include the following: • Potential annual fuel displacement (gal and $) over the lifetime of the evaluated renewable energy project • Anticipated annual revenue (based on i.e. a Proposed Power Purchase Agreement price, RCA tariff, or avoided cost of ownership) • Potential additional annual incentives (i.e. tax credits) • Potential additional annual revenue streams (i.e. green tag sales or other renewable energy subsidies or programs that might be available) • Discuss the non -economic public benefits to Alaskans over the lifetime of the project The proposed phase of this wind -diesel project is estimated to save 152,318 gallons of diesel annually. At $5.05/gallon that equates to a lifetime savings (est. 20 year life span) of $15,384,118. Non -economic benefits are a reduction in CO2. If TSPG were to get Trident Seafood to connect to the local grid and stop making their own power it would benefit the air quality of Sand Point significantly. The Trident power plant has had issues with emissions exceeding limits. 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. A project budget is attached. AWE anticipates the total project costs at $3,104,443. To date, AWE has already purchased the two (2) Vestas V39 wind turbines as part of the cash contribution to the project. Additional investments will come in Phase 2 of the project as AWE and TDX Sand point generating look to further expand the district heating system with waste electricity from the project. 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. AEA 09-004 Grant Application Page 12 of 13 9/3/2008 Zip/4EDALASKA Renewable Energy Fund 401D ENERGY AUTHOR" Grant Application 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 Nicholas Goodman Signature Title Manager, Aleutian Wind Energy Date November 8, 2008 AEA 09-004 Grant Application Page 13 of 13 9/3/2008 . ®ALASHKA Renewable Energy Fund 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. DOE Wind Resource Report: Class 5 "Excellent' 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 Railbelt' grid, leave this section blank) i. Number of generators/boilers/other 5 Diesel Generators ii. Rated capacity of generators/boilers/other #1 CAT D-3516 at 900 kW #2 CAT D-3512 at 650 kW #3 CAT 379D at 400 kW #4 CAT 379D at 400 kW #5 CAT D-3512 at 650 kW iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other None #1 Installed 2000 #2Installed 1994 #3 Installed 1976 #4 Installed 1976 #5 Installed 1986 #1 — 9,666 Btu/kWh HHV #2-9,025 Btu/kWh HHV #3 — 10,450 Btu/kWh HHV #4 — 10,450 Btu/kWh HHV #5 - 9,026 Btu/kWh HHV b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor $118,000 ii. Annual O&M cost for non -labor $ 83,000 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] 4,059,000 kWh sold per 2007 PCE reports ii. Fuel usage ' 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. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 1 /4'ELD ALASKA Renewable Energy Fund 4111117) ENERGY AUTHORITY Diesel [gal] 303,840 gallons per 2007 PCE reports Other None iii. Peak Load 810 kW iv. Average Load 461 kW sold v. Minimum Load Approximately 175 kW vi. Efficiency 13.3 kWh so,d / gal vii. Future trends May include Trident Seafood Apartments (8,000 — 12.000kWh/month) d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] 350,000 for the community. Three buildings (School, Clinic, Community Building) to be serviced 43,400 gallons. ii. Electricity [kWh] 2.2% households per AK Community Data Base Outline iii. Propane [gal or MMBtu] NIA iv. Coal [tons or MMBtu] NIA v. Wood [cords, green tons, dry tons] NIA vi. Other a) Installed capacity Two 500 kW Wind Turbines b) Annual renewable electricity generation i. Diesel [gal or MMBtu] Reduction ii. Electricity [kWh] 2,570,000 kWh based on expected annual wind turbine production iii. Propane [gal or MMBtu] NIA iv. Coal [tons or MMBtu] NIA v. Wood [cords, green tons, dry tons] NIA vi. Other NIA a) Total capital cost of new system $2,464,638 — see attached budget b) Development cost $2,464,638 — see attached budget c) Annual O&M cost of new system $201,000 d) Annual fuel cost Annual fuel savings = 152,318 gallons; Assuming a fuel price of $5.06/gallon (as of September 26, 2008), total annual fuel savings would be $770,700. RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 2 /® ©`' ALASKA Renewable Energy Fund ENERGY AUTHORITY J 5. Project Benefits a) Amount of fuel displaced for i. Electricity 134,224 gallons ii. Heat 18,094 gallons iii. Transportation NIA b) Price of displaced fuel $770,700 @ $5.06 per gallon c) Other economic benefits $11,565 annual potential from Green Tags d) Amount of Alaska public benefits 2191 tons of CO2 reduction is good for all Alaskans 6. Power Purchase/Sales Price a) Price for power purchase/sale Current rate is $.568 cents a kilowatt hour residential (pre PCE credit) and $.652 cents a kilowatt hour for commercial. 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback Based on savings . cost = ($770,700 . $3,104,443) = 0.25 Simple payback = 1 = 0.25 = 4 years RFA AEA 09-004 Application Cost Worksheet revised 9126108 Page 3 3 -1 0 to m -I r- v m v v -I O tom -i O W D -0D m O M c m O �- m O C 4 1 C 0.S m 2 C v N 3 0 m r m v N r m o_ o m 3 v n °• m '^ 7 yi c v X NID 6 K N (fin m N u O r n w Oo O_ ') D d m Ul H D 0 z °' m a in s D r m O A { W G1 O n 0 p C tmii (o CrQN to cn m m + m 6 N n Q O to in +n to fD z m rn o e W d O1 0) lwD LDD N (fin T to lD 00 00 -00 O iff -Ln O in in w W N O o In O O 00 m 0) �' O N O O 00 O O O O O O n i m H !t T 0 W N C W0 l0 00 � C1 O co Q 0 M p cn A O O O O O O T r c o O in. w w N 3 p Q S S O O O O O O r C c O 3 Q � - � _ W W 00 00 0 0 0 S N T C 3 Q ut O 0 W - N f' M A N O A W tD 0) A A 00 m A O w w v, 00 c b o 0 0 0 3117N6 TDX Sand Point Generating Inc. Sand Point, Alaska Budget Estimate Wind Turbine Construction and Installation Costs Phase I - Construction of Two V-39'slElectric Thermal - Clinic and Rao Center Projected Phase II - Construction of Third V-39/Electric Thermal - High School Phase Work Schedule care for completion 2006 Phase Est Costs Phase 2008 updated Est Costs PROJECT ELEMENTS Quantity 2-V39 Quantity 2-V39 Installed Capacty of Turbines Total Cap 1.0 Mw Total Cap 1.0 Mw Unit rating and Insight to hub 500" 40mhubM1 1 50doe=40mmbb M Unit Wright w/40m tower 115440 Its x 2ea 115.440Its x 2ea ffowe, 6270001be. Nacelle 38.000lbs, Blatles 14,740165 PHASE Environmental Asse.sment 150 $W.000 $599 DesigniEncipinmeringlConsultng 60 $9500 $12,500 Professional Fee's 45 $W.000 $48000 Total $76,600 --$110600 Permilti 120 $4.800 $14.800 Total $4,800 '$14,60 Excavation 20 $8500 $12,500 Total ' $8,500 .:$12,600 Foundation Materials and Procurement 45 $55.000 $78,000', Foundation Construction - Labor 60 $24.000 $29.000 Foundation - Equip rental, Rock Burin 30 $12.000 $19.000. Contractor -O .rotor, Rock B.nnn equip 23 $7.500 $9,500. Frelhl- Foundation Material oelive eM3o dos $29.500 $59,500 Frei hl-Rock Bonn Elpmerrout oelive est 50 da s 1 $11.500 $26500 Total - : $139,600 - - $221,500 Tower Ass mist 15 $8775 $13.675 Tower Field Ambl (flanged tower sections` $D Tower/Nacelle Erected w/equipment 21 $385,000 $455000 Freight - T.. oelive sot e0 dos $200.000 $180000 Total $593,775 - - '$648,675 Turbines Reconditioned 150 $800.000 $850.000 Generator Rewind 20 $29.500 $41,500 Turbine Ass mist 18 $3,500 $4200 Freight Turbines nacelles and blades oelive act 160 dos $63,863 $112.636 Total : $896,863 ,:$1,008,336 Configure Law Load diesel -1 as Cat D3456 10 $79,000 $89.000 Installation - Equipment, Materials and Parts 20 $19,500 $26.425 Inslatation - Labor 30 $13,500 $16600 Frei hl-E ui ment and Materials oelive etSO da $14600 $31.625 Total $126,600 $163,650 Halus site vintb TDX 6 $6,800 $9.800 Holds site visit by TDX desi natmil rep 5 $3,900 $6900 Total - $1%700 $16,700 Control- Turbine lnVerationl5nchmnous Cond 120 $,135.000 $655,DOD ConrollMech interconnect to existing 30 $7.50 $13265 C.s.1JElect interconnect to A.in 30 $12,650 $18.880 Freight - Eui ment and Materials oeliee ent Up dap $24.000 $52.265 Total -$479,160 -. $739,410 Thermal Tank - Power plant wlh dronia 60 $23.600 $29600 Install thermal tank hdromensystem 30 $450D $5.800 Frei hl-Equipment and Materials room,estoo da $9.800 $19,627 '-Total $37,900 :$65,027 Systems Functional Testis -Halus rep 8 $6800 $9,800 D .reps, helping operations and maim 15 $2.400 $4,800 Total $9,200 $14,600 Crew oroord&board) $8.500 $14,500 irfass Rl-3 man crew $8.100 $11,250 Inadentels and equipment fuel $4,750 $6.350 Total $21,360 : $32,100 S eciali.d T..Iinp and Equipment $7875 $9.125 Spare pars, not included spare gear box $9,500 $13.635 Cmmumables ear oilgrease, etc $5,025 $6.985 Total $22,400 - $29.745 Recreation Center Thermal Tank/Conirol 30 $16500 $19.500 Heat hanger and mechanical 15 $540D $6.100 Uippande transformer and electrical 15 $9,WD $11.665 Freight - Eui ment and Materials Deliver, est 60 des $2,500 $5,225 Total $33,900 - - $42A60 Sand point Clinic Thermal Tank/Conlrol 30 $8,500 $11.505 Heat exchanger and mechanical 15 $3700 $4.100 Upgrade transformer and aledricalRie-in 45 $11,500 $18.500 Freight - Eui ment and Materials Deliver, art 60 days S4,600 $10,225 Total $26,200 -$44,326 Sand Point High School Thermal TomMuntml $0 $21.750 Heal exchan er and mechanical $0 $9.500 Uipirade lrensfooner and site electrical 5D §71boo 8DUpgrade $0 $141000 Frei hl-Equipment and Materials $0 $16.800 Total $0.. $200,560 Total of Estimated Project Costs $2,464,638 $3104A43 111=00e TDX Sand Point Generating Inc. Sand Point Alaska Wind Turbine Project - Phase I Proposed Construction Work Schedule sPG- Work Schad RE Eundpp 11-Od (2) Aleutian Wind Energy, LLC Sand point Anchorage, AK Philadelphia, PA 10 November 2008 The Alaska Energy Authority RE: Renewable Energy Fund To whom it may concern: As Manager of Aleutian Wind Energy, LLC, I authorize this application for project funding and the match amounts indicated in the application; and I will serve as the authorized individual named as point of contact to represent the applicant for purposes of this application; and Aleutian Wind Energy, LLC is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. Sincerely, Nicholas Goodman Aleutian Wind Energy, LLC