Loading...
HomeMy WebLinkAboutGalena Hydrokinetic App� ENERGY AUTHORITY Grant Application The following forms and instructions are provided for preparing your application for a Renewable Energy Fund Grant. An electronic version of the Request for Applications (RFA) and the forms are available online at httr)://www.akener.gyauthoritV.org/RE Fund.html Grant Application GrantApp.doc Application form in MS Word that includes an outline of Form information required to submit a complete application. Applicants should use 'the form 'to assure all information 'is provided and attach additional 'Information as required. Application Cost Costworksheet.doc Summary of Cost information that should be addressed Worksheet by applicants in preparing their application. Grant Budget GrantBudget.xis A detailed grant budget that includes a breakdown of Form costs bv task and a summary of funds available and requested to complete the work for which funds are being Grant Budget GrantBudgetInstr.pdf I Instructions for completing the above grant budget form. Form Instructions i m If you are applying for grants for more than one project,, provide separate application forms for each project. � 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. If you have additional information or reports you would like the Authority to consider in reviewing your application, either provide an electronic version of the document with your submission or reference a web link where it can be downloaded or reviewed. • Alaska Energy Authority is subject tuthe Public Records Act, AS 40.25 and materials submitted to the Authority may be subject to disclosure requirements under the act if no statutory exemptions apply. v All applications received will be posted on the Authority web site after fina| recommendations are made tnthe legislature. City ofGalena AEA Grant Application Page 1of20 ENFR ;Y AE!T€ OR#-Y OWL, ALASKA Renewable Energy Fund Grant Application SECTION— APPLICANT INFORMATION Name (Name of utility, /PP, or government entity submitting proposaf) I City of Galena, Alaska € Type of Entity: Local Government Mailing Address Physical Address Box 149 Galena, Alaska 99741-0149 Galena, Alaska 99741 Telephone Fax Email 907-656-1301 q07-656-1769 wwilcox€rci.aalena.ak.us 1.1 APPLICANT t TACT i Marne Title Wait Wilcox Galena City Manager Mailing Address t Box 149 Galena, Alaska 99741 i Telephones Email 907-656-13617-656-1769 TF.ax wwilcox@cl.galena.ak.us r0 [�a i F Tease 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) I n electric utility holding a certificate of public convenience and necessity under AS � 42.05, or An independent power producer, or f A local government, or iA 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 fallow 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 allterms and conditions €of the attached i grant norm. (Any exceptions should be clearly noted and submitted with the - application.) City of Galena AEA Grant Application Page 2 of 20 10/2008 A Renewable Energy Fund WE ENERGY AUTHORtTY Grant Application • PROJECT SUMMARY a- . - •r♦- overview o sTYPE project)e the type of The proposal is to perform a reconnaissance study to determine the optimal location from which to supply electricity from a hydrokinetic power project in the Yukon River at Galena. This project is for a reconnaissance study to investigate using hydrokinetic power to supply approximately 1.0 MW of renewable electricity to the City of Galena. Hydrokinetic power extracts power from the velocity of water using turbines lowered into a river, and is benign compared to hydropower since no dares are required. Aerial photos suggest that the Yukon River is narrow and straight at Galena, suggesting an ideal location for hydrokinetic power. However, to understand the most advantageous location (where the highest velocity exists) for deploying hydrokinetic turbines to produce power, a thorough scientific study of the site needs to be completed. The project will perform a quality investigation of river bathymetry, lee thickness and current vector (velocity and direction) survey. 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 reconnaissance study is going to broken into three separate phases to evaluate the conditions of the Yukon River and the potential of hydrokinetic power at various times in the year. The project is broken into three phases and is shown in Table 1. Project Part I Total Gast () Funding () Cost Share (2 %) � } Winter Expedition 193,5J2.00 74,841.60 18,710.40 Spring Expedition 134 647.00 107,717.60 26,929.40 Summer and Fall Expeditions 51,132.00 40,985.60 10,226.40 Total 279,331.00 1 223,464.80 55,866.20 2.41PROJECT BENEFIT • •e- + ee Hydrokinetic power offers Galena renewable energy with no pollution or emission of greenhouse gases and can reduce residential electricity costs. The residents paid the equivalent of 56.33 Ok h in 200 7 -2008, while a hydrokinetic power facility can provide electricity at a price City of Galena AEA Grant Application Page 3 of 20 10/2008 Renewable Energy Fund ENERGYAUTHORITY Grant Application substantially lower. Hydrokinetic power allows Galena to provide clean, emissions -free, environmentally and marine -life friendly, renewable energy, while reducing costs and eliminating the price volatility associated with fossil fuels, which helps the State of Alaska and the country move closer to energy independence. 2.5 PROJECT COST ANDBEINIEFIT A- yo a �e s- ♦ + !-'a +� i!n ;.♦ tel:- !"' ! ! 4 F tea. 1- PLAIN Describe who will be responsible �fbr managi ng the project and provide a olan for successful) completing the proj . ect within the scope, schedule and budget proposed in the application. 3.1 Project . ! Tell us who will be managing the project for the Grantee and include a resume and reference'i for the manager(s). If the applicant does not have a project manager indicate how you intend trV solicit project management Support. If the applicant expects project management assistaric from i or another government entity, state that in this section. For this project, Gary Gagnon of Ameresco, which has an office in Anchorage, will serve as the project manager. His CV is attached; which outlines his expertise. Every member of Ameresco`s staff is an unparalleled resource of dedicated knowledge. They are experienced in demand -side management, energy savings performance contracts, cogeneration facilities, renewable energy sources, energy procurement, risk management, billing services and power plant development, financing, construction and operations. This experience enables Ameresco to bridge the knowledge gap between customers' objectives and state-of-the-art solutions to energy challenges. For over 20 years, the Ameresco team has overseen and participated in the design, development, implementation and management of over $4 billion in successful energy projects. e would also welcome a role for AEA if it desires one. 3.2 Project Schedule Include a schedule for the proposed work that will be funded by this chant.. (Your may include a chart or table attachment with d s£ummary of dates below.) The reconnaissance study will be broken into three phases: a Winter Survey, a Spring Expedition and Summer/Fall Expeditions. The specific tasks for each part are shown in Table 2 Project Schedule. City of Galena AEA Grant application Page 4 of 20 10/2008 Renewable Energy Fund . =Nc YAUiHOttF r Grant Application Table 2 Project Schedule Late January to Winter Survey (over a 20 day period) February Travel and Shipping ( I Preparation and Mobilization 2 Acoustic Doppler Current Profiler 15 Geodetic control (occurring simultaneously with geophysical effort) 5 Travel and Shipping 1 After- the Spring River lee Breakup (Days) Travel and Shipping l I Preparation and Mobilization 2 Acoustic Doppler Current Profiler and Single Beam Ecosounder and acquisition of remotely sense data 16 j Geodetic Control (occurring simultaneously with geophysical effort) 3 Feather, Village Logistics, and Downed Equipment 2 Multibeam Echosounder Acquisition and Acoustic Doppler Current Profiler specific to the site 3 Travel and Shipping I Summer and Fall Expeditions (over a 4 day period) 3X Summer and Fall (Days) Travel and Shipping F 1 Acoustic Doppler Current Profiler 1 I Weather, Village Logistics and Downed Equipment I Travel and Shipping _ 1 An overview of each of the reconnaissance phases are presented below: Winter Expedition The first season to be investigated will be during the frozen conditions that exist between the freeze and thaw of the Alaskan winter in the vicinity of Galena, A. TerraSond will conduct the reconnaissance quality investigation of river bathometry, ice thickness and current erector survey. TerraSond will establish a geodetic control network across the extent of the hydrokinetic power prospect. This will be accomplished by recovering four (4) existing monuments and by placing no less then five (5) monuments. TerraSond will survey in the datum for all recovered USGS rnonumentation and gauging equipment. Assuming that this is achievable, TerraSond will establish the USGS datum as the datum of the project. TerraSond will solve the location of each monument through a combined effort utilizing modern conventional and GPS survey techniques. Please reference Figure I for proposed monument placement. City of Galena AEA Grant Application Page 5 of 20 1012008 ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application { I Lease rgrg€�e d ii ra'{ r k�'f3 rf - r�. F .may' � ifN tsf1flWy, 17 i f is 1* rem Figure I Proposed monument placements for establish geodetic control of prospect. TerTaSond will deploy two geophysical instruments for this effort: a Single Beam Echo Sounder (SBES) and an Acoustic Doppler Current Profiler (ADCP). Scientific equipment is, by mature, sensitive. Significant logistics are required to accomplish this work and TerraSond intends to fabricate, locally rent, or otherwise obtain the unique and mission specific infrastructure which will be required to accomplish this project. Please reference the images from a simpler- project in 2005 in Figure 2. Figure 2 Images of TerraSond bathymetr°y survey, offshore Yukon River at Galena, AID in 2005. TerraSond proposes to acquire six complete transects along the. length of the prospect at predetermined intervals (—bkm of measured along the theoretical Yukon river thalweg). These measurements will be accomplished according to USGS operational procedures and standards for ADCP sub -ice discharge measurements. Please reference Figure 3. City of Galena AEA Gram Application Page 6 of 20 10/2008 .t F5 ' t� c - � <MK a �f d Y 1GiI} io..�i _ q .34E.;R0, � „t s. Figure 3 Proposed winter SBES and section -by -section ADCP to ansects. It is understood that this portion of the project is intended to be executed in late January — early February. Environmental variables will be monitored on a daily basis to target optimum operaLlUllal AJtidiL,ons. Spring Expedition TerraSond will prepare and mobilize for this effort on a mutually agreed upon high-water event coordinated with the City and Hydro Green Energy (HGE), a hydrokinetic developer who holds a preliminary permit from the Federal Energy Regulatory Commission to develop a project in Galena. At this time, TerraSond believes that a realistic target expedition would occur soon after break-up. TerraSond will identify displacement of monuentation between frozen and thaw conditions for the prospect control. Movement of monumentation is expected and will be quantified. TerraSond will establish a base station with a high power amplifier and radio antenna to broadcast Real-time Kinematic Global Positioning System (RTK GPS) quality corrections throughout the prospect. Once active on the site, TerraSond will accomplish a discharge measurement and compare the computed discharge against the USGS published value. This measurement will be accomplished with an ADCP and will conform to the USES standards and operational procedures for liSG ADCP discharge. We will acquire no less then four (4) transects for this computation. TerraSond has planned to avoid issues associated with moving bottom (a common problem in Alaskan rivers) or magnetic fields associated with ferrous and vessel power production materials by recording heading from a WAAS corrected Differential Global Positioning System (DGPS) and recording the position of the ADCP data with RTK GPS. City of Galena AEA Grant Application Page 7 of 20 10/2008 fitV ENERGY AUTHORITY Renewable Energy Find Grant Application TerraSond will conduct a reconnaissance quality bathy metric survey over the extent of the prospect. We will acquire SBES data at intervals of -100m across the river primary perpendicular to current floe-. This data will be recorded with RTK GPS precision and record both the river surface and, once processed, provides a precise position of die. riverbed. A TIN surface will be interpolated, populating the space not covered by the SBES and generating a sparse Digital Terrain Model (DTM) illustrating the geornorphology of the river bed. This data will be used while in the field to identify the thalweg for cross line positioning and is intended for computational power production models envisioned further in the project process. This data will be critical for site selection of both pilot project and, ultimately, future power production sites. TerraSond is expecting to collect no less then 355 lines during this portion of the project. TerraSond will acquire ADCP transects at intervals of —100 arm. This will be accomplished with single ADCP transact across the river predominately pependicl€gar to current flow. The product of this transect is a measurement of the current flow at different position within the river. it will be used to illustrate the peak flow and current vector- (magnitude. and direction) at different depths below the river surface. TerraSond intends to be available for consultation with the City of Galena and HGE and other interested stakeholders during presentation of this preliminary data while the most advantageous site location is determined. Once HGE has selected the (or limited number of) candidate site(s), TerraSond will focus all future efforts upon this selection. Additional ADCP data will be gathered if necessary. A multibeam echosounder (MBES) will be used to acquire a dense spatial dataset of the candidate site location(s) for processing of a detailed baseline surface at the TerraSond Processing Center in Palmer Alaska. This product, geornorphologic interpretations, hazards to construction and navigation, and all conclusions will be presented in the final project report. TerraSond has cost for one candidate site in this proposal. If more sites or a larger area are desired, this effort will increase the scope of work by one (1) day of MBES acquisition per area. if the pilot project area requires more coverage, TerraSond will acquire as much as the budgeted time for MBES will allow before expanding the scope of work or changes to the project cost. TerraSond will accomplish a current vector measurement at the candidate site if a sufficient transect has not already been accomplished at that site during the reconnaissance portion of the river investigation. Summer and Fail Expeditions TerraSond will prepare and mobilize for this effort on a mutually agreed upon water -level discharge event coordinated with HGE. TerraSond expects three (3) such events to be of interest to the City and HGE, however, is receptive working with the City and HGE to identify the most informative events. This effort :will acquire no less then four (4) transects and cornpute the river discharge at the candidate site location. If published water level or discharge values are available form the USGS, TerraSond will monitor the river level throughout the summer from its offices in Palmer, Alaska. e will be prepared to rapidly mobilize and attempt to capture the current vector information as near to the targeted stage as possible. The acquisition of this data will help the City and GE understand the Yukon River at these dominant discharge stages for the purpose of quantifying the resource available to them for power production during these commonly occurring river stages. This data will also play a critical role for the feasibility study as the peak river flour will City of Galena AEA Grant Application Page 8 of 20 1012008 /81 ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application be monitored at different river stages for horizontal and vertical migration or general instability. 3.3 Project 'Milestones Define key tasks a s p ints, in yourproject and a schedulefor The project is broken into three pleases occurring at different times of the year, in the winter, spring and summeri/fall. See Table 2 Project Schedule. The conclusion of each of these phases represents a unique milestone for the project. At the end of the Spring Expedition, a review will be held, possibly in Galena, to choose the site for the hydrokinetic turbines. Milestone 1: Conclusion of Winter Survey - competed in early February 2009 Milestone 2: Conclusion of Spring Expedition and Selection of Hydrokinetic Site - completed 5 to 6 weeks after the ice breakup April -May 2009 Milestone s. Conclusion of Summer/Fall Expeditions - to be cornp,ereu .3 t-Innes dur-Inb the summer and fall .tune -August 2009 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 .. • s a- • s s l s t s • •ce The City of Galena will work with Hydro Green Energy, LLC for specification and details about hydrokinetic turbines and TerraSond Ltd will provide technical resources and equipment to complete the reconnaissance study. Hydro Green Energy Hydro Green Energy, LLC is a Houston renewable energy project developer and technology integrator that designs, builds and operates hydrokinetic power projects that generate electricity exclusively from moving water (rives- currents, tidal currents and ocean currents) without haying to construct dams, impoundments or conduits. Hydro Green Energy's technology platform can also be deployed at existing hydropower projects (called Hydro+TNI), bolstering the output of the existing project in an environmentally -sound manner with a cutting -edge technology. Operating as an Independent Power Producer (IPP), hydro Green Energy sells the power generated by its broadly patented hydrokinetic turbine arrays (HTAs) via long-term, wholesale power purchase agreements (PPAs) to project equity paimers, power marketing firms, utilities, cities and industrial interests Originally formed as Terra Surveys, LLC in Alaska in 1994, TerraSond has specialized in providing land, hydrographic, and marine geophysical surveys. Originally focused on Alaskan City of Galena AEA Grant Application Page 9 of 20 1012008 ASKA.. .. ENERGY AUT ORfTY Renewable Energy Fund Grant Application waters, we also have facilities in Texas and Washington, surveying nationwide and in several foreign countries. TerraSond has a staff of over 75 persons including: ACSM Certified llydrographic Surveyors, registered Professional Land Surveyors ( PLS), and a supporting group of hydrographers, land surveyors, marine .jeophysicists, geologists, oceanographers, GIS specialists, IT professionals, and professional mariners. Our in-house equipment includes single and multibeam sonar systems, land survey equipment, GPS suiwey equipment, geophysical and oceanographic equipment, and over ten survey vessels. TerraSond's client base includes USACE, NOAA, pipeline, power, and international telecoms cable lay, Mining, survey, engineering, port authorities, shipping, dredging and construction companies. 4�Pioject Communications Dis�uss hbW you plan to monitor the project and keep the Authority informed of'the status. The project manager will provide reports to the Technical Point of Contact (TPOC) at the Alaska Energy Authority. A report will be provided to the TPOC at the conclusion of each of the milestones of reconnaissance study, unless AEA desires additional communications. 3.6 Project Risk Discuss potential problems and how yot* would address therm: Given the team that will be deployed by TerraSond, there will be little, if any, risk in conducting the reconnaissance study. Perhaps the largest risk, in a broader sense, is that the data gathered will indicate that hydrokinetic power is not feasible in the Yukon River at Galena, and therefore, the City does not see the development of a project. Although, this scenario is unlikely_ TerraSond has a lnna and track re.rnrd in conducting the type nil work necessary for the reconnaissance study and the City believes that they will deliver a fine work product that will provide the City, as well as its technology partner, with the important data it needs to begin a hydrokinetic project. Given the energy situation the City faces, there is more risk to not knowing whether or not it has the opportunity to pursue a clean power source for its electricity needs. The reconnaissance study will answer many important questions that confront many Alaskan Villages and towns. City of Galena AEA Grant Application Rage 10 of 20 10/2008 Renewable Energy Fund ENERGY AUTHORITY Grant Application The City of Galena proposes to perform a reconnaissance study for using hydrokinetic turbines placed in the Yukon River near Galena to provide a dependable, environmentally friendly and renewable energy source for Galena, allowing Galena to reduce the cost of power and curtail the need for diesel generators. While Galena has explored other power sources, hydrokinetic appears to be most viable, which is why it seeks to perform the reconnaissance study. The Yukon River along Galena offers several potential sites for _ 4 hyfdrokinetic power generation. Around Galena, the river does not meander through multiple` small bends, instead, there are w � are �-,Pt:ds indicating gee„ Long t F be b deep, consistent, fast floe which is ideal for hydrokinetic power development, see Figure 5. - Figure 4 The Galena Airport along the Yukon River with a full Likely locations for the Moon overhead. +s�arnwer 4�t n# t}�a ta�rl'einac would be where the river becomes narrow, throttling the river flow and increasing the current's velocity and, consequently, the amount of potential power to be extracted from the river, such as in front of the Galena airport. The purpose of this reconnaissance study will be to identify the most advantageous location to install hydrokinetic turbines for power generation within the prospect boundaries listed in the existing preliminary permit. [(64.783286° ,-157.064234°�'), (64.?89263-N,-156.982538-W), (64.6503 78-N,. - 156.6417800 Figure 5 Galena along the Yukon River. City of Galena AEA Grant Application Page 11 of 20 10/2008 A; ALASKA Renewable Energy Fund MF ENERGY AUTHORITY Grant Application 4.2 Existing Energy System .2.1 Basie configuration of Existing EnergySystem Briefly discuss the bask configuration of the existing energy system. include information about the number, size, acre, efl=iciencV, and type of generation. For electrical power, the City of Galena relies on six diesel generators, which include a IMW, a 400 M, and four 800 kW generators for a potential peak loading of 4.6 MW. The I Brit diesel generator operates nearly continuously providing the base load and the others are used to supply peak demands. Typically, no more than two generators operate at once. All of the generators run with #2 diesel fuel, which is also used to heat the homes in the winter. Galena receives one shipment of approximately 600,000 gallons of diesel -142 for the entire year, which arrives via barge up the Yukon River and is delivered in the summer. For 2008, the cost of the fuel was $4.36/gallon, for a total cost to Galena of $2,6106,000, so with a population of about 654 1people the cost is approximately $4,000 per person or for a family of four the cost is approximately $ 16,000. However, the residents purchasing Diesel m2 for heating have to pay more because of handling fees. In the winter- of 200 7-2008, they ended up paying $6.82 gallon. 4.2.2 Existing Energy Resources Used Briefly discuss your understanding of the existing energy resources. Include a brief discussion of any imp ct the projec Galena relies almost entirely on the 600,000 gallons of diesel fuel delivered in the summer for its electrical and heating neeas. i ydror-knetic turbines es placed -in the liver could providesuffiicie-f power- to provide the base load and potentially even more power to address a portion the peak load. It is even a possible that the hydrokinetic power could provide displace most and possibly even all the power required by the City of Galena. However, the diesel generators should used to provide additional power beyond the base load and in case the hydrokinetic turbines need to be removed from the river to allow backup power. The hydrokinetic turbines will need to be removed from the river in the spring during the ice breakups, in which case the diesel generators would be used to supply power. Typically, the electricity demand load is lower at this time of the year. The electrical load in the summer is approximately 700 kW and more than doubles in the winter to 1.6 MW. From the summer of 2007 to summer 2008, the cost of electricity for the residents was priced at 56.33 �,IkWh, with 36.330 going for fuel_ costs and 200, going for Transmission and Production Costs for O&M Costs). The heating of homes and facilities uses diesel fuel and increases the total potential power requirements in the winter- to 4.0 MW as shown in Figure 6. "Statistical Report of the Power Cost Eq�imization Pi-ogram ", Fiscal Year 20071, July 12006 — June 30, 20€0 , Alaska Energy Authority, Nineteenth Edition, February 2008 City of Galena AEA Grant Application Page 12 of 20 10/2008 ALASA \. /e\ 43 tq 33 3a \ 2.5 / 2.0 1.5 1.0 0.5 Renewable Energy Fund Grant Application day of ar .:w:. Figure 6 Galena Daily Combined Power team in 201¥. 2 Chancy, RobertE., Colt, Stephen G.,Ioham, Ronaldy, Wies,RiW,ylQG Gregory£White, ^ a Electric Poiver - a l Z2»l a5 U.S. Department a National Energy Technology Laboratory«d: EnergyOffice Contract D &w 39f , Draft Final Report, December!\ mq. Cry! of Galena «E» Grant Application Page ]a 9 20 192008 Renewable Energy Fund ENERGY AUTHORITY Grant Application 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. _i 4.3.1 System Design Provide the following information for the proposed renewable energy system: • A description of renewable energytechnology specific to project location • Optimum installed capacity • Anticipated capacity factor • Anticipated annual generation e anticipated barriers • Basic integration concept • Delivery !methods - - The expectation of the reconnaissance study is to find a feasible hydrokinetic site. At the site, the current expectation is to use 80 - 12.5 kW hydrokinetic turbines to provide the rase electrical load for Galena at 1 MW arranged in multiple arrays of ten units each. Ownership4.3.2 Land Identify pot6ntia land ownership issues,• - site owners have agreed to thl project or now you intend to approach land ownership and access issues. For the reconnaissance project, City property or public property will be used for boat launches. If the reconnaissance data shows that hydrokinetic power is viable, the turbines will be located in the Yukon River, which means there will be no land owners for where the turbines will be ri;Catteci, €3Ltt the C`tir[31t1e5 will require a Control room and will ctavc w LIc inw �alciic: � 811cb, so a site will have to be rented from a local land owner for a small building to house the control facilities. The location of the control room will be identified during the site study. Hydro Green Energy will acquire the water rights necessary (in additional to all permits and regulatory approvals) in the State of Alaska. 4.3.3 Permits 1 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 i 3entifv and discussion of potential barriers I No permits are required to perform the reconnaissance study. However, it should be noted that a preliminary permit has been issued to HGE. by the FERC on May 12, 2008 (FERC No. P-13095) for the area around Galena. Hydro Green Energy, Ef,C has filed preliminary permits for power generation projects with the Federal Energy Regulatory Commission (FERC) for locations on the Yukon River between Galena and Nulato. FERC has issued preliminary permits for these projects as well. The preliminary permits are a federal authority granted by the FERC to allow Hydro Green Energy the in -line right to study a site for three years to prepare for a hydropower license from the FERC. After the three year period, Hydro Green Energy will file for a permanent license, which lasts from 30 to 50 years. City of Galena AEA Grant Application Page 14 of 20 10/2008 Renewable Energy Fund ENERGY AUTHORITY Grant Application The reconnaissance study has no environmental impacts, but it is expected that the study will identify and highlight potential environmental issues associated with the licensing of the proposed hydrokinetic project. 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. Applicantsmustreference the source of their cost data. For example. Applicants Records or Analysis, Industry Standards, Consultant or Manufacturer's estimates. 4.4.1 Project Development Cast Provide detailed project cost information based on your current knowledge and understanding of the project. Cost information should include the following: o Total anticipated project cost, and cost for this phase Requested grant funding 0 Applicant matching funds — loans, capital contributions, in -kind Identification of other funding sources i Projected capital cost of proposed renewable energy system ® Projected development cost of proposed renewable energy s<stem To complete the reconnaissance study, the total cost for the project is $279,3 ? . A summery of the cost for each of the phases is provided in Figure 7 through Figure 9. City of Galena AEA Grant Application Page 15 of 20 10,2008 It, ALASKA GIL, ENERGY AUTHORITY Renewable Energy Fund Grant Application as Item days Day Rate Sub -total Airfare 4 S603-00 2 12. 00, Air Cargo Pnonty i(mobiliZati"on) 2,85 per Ib 1600lbs S41,560.00 General iegressl 1.90 per lb I 2001bs 82,280.00 Mobile Arctic'Lab Fab6cation Labor 'D666-00 S3,33C,.00 Materials S2,000.00 S2,000.00 Labor (12 h r �vork days) Project Management 2 81 560, 00 S3, 12 0. 00 Professional 17 S1352-00 S22,984.00 Survey Tech 17 988,00 S-16,796.00 Survey Equipment (day) F� S8 0 0 0 S1 200,00 ADCP Sensor "120-00 81,800.00 iel=J 'cquis&on Laptop 1 6 S10500 S1,67-00 Y' Vortation .R S , S10600 S 1,6751.00 RTK GPS 12) Pcvrs i S420-00 S6300.00 �Rc��rs� Aatic ;PS 3 E-� S630,00 S-3,150�00 Con ventifinal Le%4 s $50 1110 S25O.DO ice rr";uger 5- S4�01 -CrO S C-10 0. 00 R f a i R Sno-oi-mobiles f2l S1,600.00 Sntown-,ol;ems he ivy dLlt-V (2) 1 S3 00, DO 4,500.00 X4 t, Lick 11110.00 1, H0.00 Spares Single -beam Sounder 15 �,40-00 $600.00 ADCP Ser-sor .1 i: $60,00 $900.clo Field Acquisition Laptop I E; $53.00 -,00 S795 RT K GPS 'I Rca,rs" 1 8210,00 S3.150.00 Ice 'Auger '15 $40-00 $600.00 Gonsumable'Material s, Per Dien) 40 $P 00 S3,000.00 el se k L; �S61ga 1) 1 - $ 50-00 S750.00 Fi -lei Unleaded -(.5fgai.t 55 $11-5.00 5�00 $82 ALICIer B[ades '15 $50-00 $750.00 HOUSillg 1,22-4 people B&Bi `� 0 I'S 100.O0 IS2,000.00 S93,552-00 Figure 7 Phase 1: Winter ADCP and Bathy Recon. Cost provided by Terrasond. City of Galena AEA Grant Application Page 16 of 20 10/2008 /ww-_ ALASKA 4W,-- ENFRGYAUITHORtTY Renewable Energy Fund Grant Application .0 Item daps' Dav Rate Sub -teal Airfare 2 SCIG3.00 S 1 '2061 Do Air GarqO nority (mobilization * 1 -1 500lbs @ 2-86 per [b 1 0CI 11 3, 5 '10 '17_10 S4 General (egress) 12GOlbs cq,� 1.90 Per lb 1 1,200 S2,28MO Labor (1,2,hr work days,,)' Project Management 4 $1,1560,00 S6,240.00 Prot essinnal 2Fj - $1,3 5 22. 0 0 S-31 7, 8 5 6 - G- 0 Survey Tech 28 1139 8 8. 0 0 S27,664-00 y-E: ­nt lday� Surve Ew m- , Ip - k -Y; Small survey, vessel 26 S41300 S 10, 73 8. 00 Single -beam Sounder 26 S80.OG S2,080,00 ADCP Sensor 26 S1 20.00 S-3,120.00 Feld Acqusition COMPLIter 1 bivS.gt1 S2,730. 00 Work Statior 26 S 11 DO, - 0 0 S21,73UO R -1 K G P S (2 R, c v rs) 26 S420.00 SI 0-120,00 , L-1, CSI DGPS Horizon 26 1180.00 S 2, 0 8 C - O'C") Static GPS Q Pcvrs) 5 $6,3&00 � 3, 1 Ft 0, DO Conventional Le,., -el 5 C1160.0c, C12)50.00 E-S3 MBES 5 S413.00 S 2, rul 6 5 D 0 lnertia'z Navigation System 5 S723.00 S'3,611 6L.00 Local Rentals 4X4 t?-Uck 26 S 150-00 S 3,90 0. N! Consumable Materials Per Dreni S7:5.1DO 11) -3, C-4 0 0.00 2'ue Diesel --I,$6,-ga-,,I 26 SU.00 -� 3 1100 Lie, gal a[ 25 S3&00 S936.00 Housing (2-L' people B&BI F- 2 S1510. 0 0 S2,600 M Projected Total -13A S -,647-00 Figure 8 Spring ADCP and Bathy Recon Costs provided by Terrasond. City of Galena AEA Grant Application Page i7 of 20 10/9-008 Zw- -ALASKA QK-L ENERGY AUTHORtTY Renewable Energy Fund Grant Application ftem &Tys Day Rate Sub -total A id ar e S60100 S1,206-0O Air Caroo Priority (to ,.tee 000lbs @Z, 2-85 per lb 1 11300 S21,8-50 -1)0 General (naturn) I 000lbs 190 per lb 1 1,200 S1, 900_00 aN Labor (12 r ' word d, ys) Project N'lanagenient S 1, 60 - 00 S1,560-00 Professional 2 S 1,3v2.GO S2,704,00 Surve,v Tech 2 `988. 00 1,31,976-00 S 'day urvey Equipment k Small survev vessel 3 $4 13.00 S 1 3 9 - 0 0 ADCP Sensor 3 S120-00 S360-00 Fteld Acquisition Computer 3 S105-00 S311 5-0-0 Work Station 3 S105,00 S31 5-00 RTV I-,IDq P) P r-jj-,Q' 3 X1 F10 '11,26D -0 CSI DGPS Horizon 3 S80-00 S2140-00 Conventional Level 3 S60-00 .150O G_o Locali Renta-as =X4 t, u ck 3 "1 1510.00 S4 60110 Consumable Materials Per Den, S75-00 $22 22 5 G, 0 -LIP[ Diessal 3 $12,00 $3C.00 �gal uel Unleaded l I 3 S� 3 161. 0 0 S'1018-00 Housmg (2-41 people B&Btl 3 51'53. 0 0 IS 15100 Projected Total S'l 7,044.00 Figure 9 Summer and Fall Discharge Measurement (There are 3 all together). Costs provided by Terrasond. 4.4.2 Proiect 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 I�eguested grant funding For the reconnaissance study, there are no operation and maintenance costs. 4.4.3 Power Purchase/Sale The power purchase/sale information should include the following: Identification of potential power buyer(s)/customer(s) Potential power purchase/sales price - at a minimum indicate a price range Proposed rate of return froi grant funded project There is no PPA for the study, but if data shows that a project is feasible, the power plant will be operated and maintained by Hydro Green Energy UC functioning as an Independent Power City of Galena AEA Grant Application Page 18 of 20 10/2008 ML yqt... Renewable Energy Fund .. ENERGY AUTHORSTY Gram Application Producer. Power will be sold to -the City of Galena under a Power Purchase Agreement for a 20 year agreement. 4.4.E Cost Worksheet Complete the cost works eet form which provides summary information that will be considered in'`evaludtina the proiect. See the attaches' coat work -sheet. The City does not believe that a business plan is required for a reconnaissance study Analysis and Recommendations -Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project develop The proposed reconnaissance survey will provide a good overview of the potential to use the Yukon river near Galena as a location for hydrokinetic turbines. After completing the study, a site location will be defined. The proposed study will provide an in depth information from which additional flow analysis can be performed to design the hydrokinetic power site. However, the natural forces of the river and the seasons create a dynamic environment, which requires ,A nr,c���r�t,�t n�rPt tit„a Aft-r the ontirnurn site has been chosen, the site should be carv_uf uE.v.. t'T'n - - - - - r continued to be reviewed over extended time to better understand the dynamics and effects of the ice breakup and river discharge rates. If the data show that a hydrokinetic turbine plant is feasible, then hydrokinetic power can provide a dependable low cost source of electrical power which could reduce the financial concern and distress Galena experiences from the high cost of fixel. In addition to providing cost effective power, the hydrokinetic plant does not create pollution or green house gases. It is environmentally benign and does create any noise pollution. The hydrokinetic turbines allow energy independence for remote villages and validate renewable energy sources for our nation's energy security. City of Galena AEA Grant Application Page 19 of 20 10/2008 GOLL ALASKA MF ENERGY Ai THOR-1Y Renewable Energy Fund Grant Application CTI iN GRANT BUDGET •rs ,� • o dat �and fundi�ii sources, The project is expected to cost $279,331. Hydro Green Energy will -lost share 20% of the 01 Ener gy project or $55,866. Please see the attached Galena GrantBudget.xIs document for more information. I L­­ Staff, A. Resurnies of' ApplifCant's Project Manager, consultants, ancl . ­-Y 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 protect 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 mare I Wait Wilcox Signature 140 (J-1 T itle Gaiena City Manager Date November 7, 2008 City of Galena AEA Grant Application Page 20 of 20 10/2008 0 11/10/2008 13:59 907-656-1769 CITY OF GALENA PAGE 01/01 Emw-Ml�M gag d17- W7 M E�M C Y of Galona PC) k Alaska 99741 .40149 Box 1.49 - Galcuu, (907) 6.5,6-130,1 -- (907) 656-1169 FOX I Walter Wilcox, City Manager of the City of Galena hereby give David f d eorley to sigil the 6611 win docuin t S: Oliver or r Letter of recommendation froth the City of Galena State of Alaska Depattment oflEnergy hydro energy grant application. This power of attorney itS in effect starting November I O�, 200 8 and i Q, in effect for 6 months after this date. Shawn O'Brien State of Alaska 31 d Judicial District SS. Subscribed and sworn to before me this C day of N-Je r-'V') c in the year Notary Public (Si anature) Notary Public (Printed) My Commission Expires CA NO10tY Public E .7 BONNIE $RALEY I My Sfofe Of A108ka W'On 6,'110101 AUG 4, 2011 Foommis: City of Galena PCB Box 149 - Cain , Alaska 99 1-0 -9 (9 656-13 1 -- (9 7) 656-1 69 Fax January 30, 2008 Mr. Wayne Krouse Hydro Green Energy, LLC 5090 Richmond Avenue, #390 Houston, TX 77056 Mr. Kraig Johnson Denali Commission Alaska 5I0 L Street Suite 410 Anchorage,. AK 99501 Ms. Rebecca Garrett Alaska Energy Authority 813 West Northern Lights Boulevard Anchorage, AK 99503 Dear Mr. Krouse Mr. inhncnn ;sari Mq f `rnrreft Based on the hereunder presentation, the City of Galena is interested in collaborating with Hydro Green Energy, LLC to install hydrokinetic turbines into the Yukon River. Using hydrokinetic turbines may provide Galena with an environmentally friendly, cost attractive alternative to diesel generators. The Yukon River provides an easy accessible and dependable source of power, and when developed in an environmentally sensitive manner, can provide a nearly inexhaustible source of power for Galena. The City of Galena is interested to learn more about hydrokinetic power and whenever possible., will work with Hydro Green Energy, LLC to provide relevant information about the Yukon River, the City s power- requirements and potential contacts for information and construction help. The City of Galena fully supports Hydro Green Energy, LLC efforts to investigate renewable power for the City of Galena and surrounding villages. Sincerely, f Walt Silcox (,, Vd O t � t C City Manager Sr', cr, r\ L---------� Per Mr. Wayne Krouse of Hydro Green Energy, LLC on January 30, 2008 at 87/7-556-6566. It is Hydro Green Energy's long term desire to: 1. produce electricity at below the current costs of internal combustion generated power in Galena. 2. Replace emitting teneration sources with clean.. zero emission, renewable generation sources. 3. Sell the power to the City of Galena. T EentloneA that wt'e ?w'ill he 11, i x 11), rilnQi llnnfc ;anti serail e nrow'der,� in Ci_,�jleml durin<� the Study phase, to aid ill the Engineering Study by giving us input On local fishing sites and local river information. Additionally, white we are in the city, we wvill arrange for room and hoarding. This will provide an initial local economic stimulus as required by the Denali Commission. As the project further develops into on -site assembly and installation activities, even more local economic stimulus will be provided by Hydro Green Enemy representatives and our team members and contractors. Additionally, before startup and over the longer teem, Hydro Green Energy will require local ,3rf,-,r flitc- pul-�nt,s < f,i o„ , at,t,ns _ara _ait�ten_nce tctiyiiies. These would be �....... r- full time employment positions with Hydro Green Energy. Since there are multiple locations in the State of Alaska where our technology could be used both ill rivers and ill tidal areas. it is our intent to open a local administrative office in the state at some point in the future. I can assure you that we can generate power at a lower cost than 39 cfkWh. What that price is can only be determined after an Engineering Study is completed which is why we are seeking your support to do the Study with a grant fronn the Denali Commission. Also, in terms of connecting our transmission line to your existing distribution infrastructure in Galena, we will bring power oil shore via a submerged cable which will be buried in the river bed (we will dredue a 3-6 foot ditch, lad,, the cable, and then bury it, capping the cable with rip rap.) Once onshore, this transrnission line will pass through our switch yard (which will have the appropriate transformers and power conditioning equipment as designed by our en,ineering contractors working in conjunction with the City's representatives) and connect to your local off grid distribution system. The technical design aspects of the project are why we are bringing in a world class engineering design team which consists of one of the world's fargest hydropower engineerin, desit-n companies and experienced marine engineering companies. Our team has considered the effects of ice ill our discussions on the project, but as we discussed, Hydro Green feels that there are multiple ways to rnrtzgate the ice issue as it relates to our technology. I'd like to reiterate that the Denali Commission is offering multiple "Pre- ConStFUCtiOn" Grants for the exact purposes that we are atternpilThy to accomplish this Study. We want to be awarded one of those and we want your support. Lastiv, as you may or may not know, hydrokinetics (river turbines) are a very new technology with the only demonstrated unit selling power in New York City in the East River, OLH_ current project on the Mississippi River in Hastings, MN will he the first FERC fully licensed hydrokinetic project in the U.S. As you know, hydropower is sigini ificantly more cost effective than other renewables since water has �i higher energy I tn'l- density than wind (840 tirnes more energy per square foot) oi- solar (even higher) and has 'the added benefit o!'very high capacitt- tactors i,C1 . Wind typically achieves only 25% CF and I would lma,ome that solar has an annual CF of '10% it, Alaska or less, if that. Our river turbines could achieve a CF of KcXc (taking into account turbine removal clue to ice and estimated maintenance downtime) since the river flows the same direction all of the time, day and night. As you know we are 'in a time crunch here with regards to the application deadline, so I apologize for the short notice. The application must be to the Denali Commission (physically in their hands) on February I 2th. I am even willin,- to schedule a WebEx (webinar) presentation with you and Your team this week to Introduce You to our technology and the science from rom Our R&D over the last few years. I hold a U.S. Patent and multiple International patents on the technology with many more patents pending at �7, t_ ,the US Patent office. We are environmentally conscious renewable energy developers. i I /iU/26Ud i b: -,U t -b!Db-i (bl, i I Y Ur U�,LL 1'44. r-Autl UL 1 111 C t of Galon4 PC) Box. - Galena, Alaska 99741-0.149 (907) 656-1-301 -- (907) 656-1769 Fdx I Walter WilCOX, City Manager of the City of Galena hereby give David -r-- - following ocu drnents: Oliver of Tel asond. power of attorney to sign the Letter of recomn-tendation fi-om the City of Galena State of Alaska Department of Energy hydro energy grant application, This power of attorney is in effect starting November 10"', 2008 and is in effect for 6 months after this date. Wali l'icox, City Manager State of Alaska 3'd Judicial District SS. Subscribed and sworn to before one this 1 clay of_L in the year: Notary Public (Signature) �=: Ar1 , — Notary Public (Printed) _ Public �'iy Commission Expires �� 4j <a t G MY C i r 1 Kwwi-� ALASKA MWE ENERGY AUTHORn'Y Renewable Energy Fund 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. NA - Reconnaissance Study (.jInit depends on pro . erat type fe.n. windspeed, hydropower output, bio-massy 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 6 diesel generators ii. Rated capacity of generators/boilers/other 1 - 1 MVO, 1 - 400 kW, 4 - 800 kW iii. Generator/boilers/other type iv. Age of generators/boilers/other 1. 1991, 2. 1995, 3. 2000+- v. Efficiency of generators./boilers/other -35% b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor 20 cents per sold Kw ii. Annual O&M cost for non -labor 36-33 cents per sold Kw 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] 8,500,000 +- ii, Fuel usage Diesel [gal] 620,000 gallons est Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] I 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 Anchoraae Municipal Light and Power. RFA AEA 09-004 Application Cost Worksheet revised 9126,,'08 Pace 1 /E�ALASKA I ENERGY AUTHORITY Renewable Energy Fund iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other a) Installed capacity 1 MW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] iiL Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] A Other Hydrokinetic Turbines a) Total capital cost of new system NA — Reconnaissance Study b) Development cost c) Annual O&M cost of new system NA — Reconnaissance Study d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity -4,366,925 kW-h ii. Heat iii. Transportation b) Price of displaced fuel 0.5633 /kW-h c) Other economic benefits Elimination of pollution and noise d) Amount of Alaska public benefits 6. Power Purchase/Sales Price a) Price for power purchase/sale RFA AEA 09-004 Application Cos' Worksheet revised 9126108 Paae 2 �-,ALASKA IRenewable Energy Fund f 9W,7-1 ENERGY AUTHORITY 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback NA — Reconnaissance Study NA — Reconnaissance study RFA AEA 09-004 Application Cos', Worksheet revised 9X26/06 Page 3 0 C) 0 O o 0 CD (D (D 0 q O (D CD C, C) CD N LO Lo co 0 N m n m N 61) 61} Lo, Lr) Cl-! cl� di Cli CIL in CD �t N It co n It - li U� 613� m 69 ALF e=r 66 0 OO 0 0 0'o 0- C:, C:, C:, C, 0 0 C� C:) C, ID CD (D C� CD ocD N f,- N 0 0 0 (D C, 2 00 0) LCI(COD � (coi, 't cy, cli U— to F-, CO ti � �4 �4 — — — 4114 < 0 0 0 CD to C) 1-1: D D O ti LCOD 0 e�l _0 00 tl-- m U- � 66 CD O CD —j LL CD CD CD Cl) O CD CD CD CD ID M �o ID 0 (31 LO C\j C11 n 0') (D 0 co a) CQ N co d' 00 (0 O CO cif Ci 00 CD �� 61�1 (LT E;� bl� 6p, CIQ o -j LL O CD QD� C: z :3 LL 2 a) U) 0 LL W to H co E w .2 Lij 12 0: (n (n < rr < Y 0 C, S1.L) Q) U) ui U) 0 7z- rr a, -0 LU U-1 2 Er N, c) 7 n -o I Li cn C) 0 0 CD C7 CD CD 0 CD C) I CD ID CD 0 q q q 0 Cl 0 Z� co W 00 0 rl (D rl- Vt 6-1 (11) CD r-�- N -i C\� l7i lf� t 64 < CO CD CD CD CD 0 O CD. m lgr v 9 co "N., cc -'D 00 m CD et 7 r--L r'- — '4t Cl) �,- Ln — CO 6�1 I CD G11 � � I;; Cl) 0 C) CD CD 010 C, C\l ID 1-0 d 'ZI: N N LO M CD m LO Ln m i co C\., I co co (D CV r-- (31 4 6 Co G�) 69� C\l m cn Lij t6 �4 G LU n rr < a', lo 0 < < cn cn W. > 2 a- Z)Cz o c o-- b m 0 1— Lu u) o C) 0 0 0 CD CD CD 0 0 1 CD C) CD 0 0 CD C, 0 0 0 r.- N CD 0 0 N cli n m UD. E,4 LO M C6 C6 ffl 69 � 0 -ET 0 CD C� 0 0 CD co C) Id- "t 9 � co r-- (D CD co M �T CQ 00 r" cv r- r--� Cli 643 C'j C\� Cl) co C\j EP, oC4 (11� Ln 0 C� C) E 0 LL 33 Sa co O 0 9 tr- On 0 Li. cc C, 0 0 0 1�1 0 CD S. CD Ln cr) f-- 0 cy� lc7 - n 1+ CT3—CD �I64 9 CD 0 �. � aia ��� � 1 " OliverDavid