HomeMy WebLinkAboutGVEA Waste Heat Recovery Project AppORITY
ALASHKA
Renewable Energy Fund
Grant Application
SECTION 1 — APPLICANT INFORMATION
Name (Name of utility, 1PP, or government entity submitting proposal)
Golden Valley Electric Association
Type of Entity: Electric Utility
Mailing Address
Physical Address
PO Box 71249
758 Illinois Street
Fairbanks, Alaska
Fairbanks, Alaska
Telephone
Fax
Email
1.1 APPLICANT POINT OF CONTACT
Name
Title
Kate Lamal
Vice President of Power Supply
Paul Park
Project Manager
Mailing Address
PO Box 71249
Fairbanks, Alaska
Telephone Fax Email
907-451-5645 kkl@gvea.com
907-451-5674 907-458-6388 m ark vea.com
1.2 APPLICANT MINIMUM REQUIREMENT
Tease check as appropriate. If you do not to meet the minimum applicant requirements, your
application will be rejected,
-I, ,1 As art Applicant, we are; (pul are X in fhe appropriate box)
X An electric kifility hold iIng a certificate of pubic convenience and necessity under A
4.0, or
An independent power producer, or
i A local government, or
lA gov rnrhi ntal ontity {winch includes tribal councils and hMising ai.ufhori(ie§):
Yes j 1 _ _ . Attached to this application is formal approval.arid 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
i authority is necessary, (Indicate Yes -or No in the box }
Yes ; 1.2.3. As am applicant, we have administrative and financial management systems and
r follow procurement standords that comply with the standards set forth in the grant
.= agreement,
Yes 1:.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
r application,)
AEA 09-004 GVEA Waste Heat App Page 2 of 12 10/6/2008
� ALASM
Renewable Energy Fund
Grant Application
Provide a brief 1-2 joaae overview
2.1 P€tOJECT TYPE
Construction -- Waste Heat Recovery (Final Design and Construction Bid Documents are
attached as Appendix F)
J
Golden Valley Electric Association is seeking financial assistance to install a waste heat
recovery system that would replace 15 existing electric unit heaters totaling'/2 MW. This project
is unique in the fact that space heating the 20,000 square foot North Pole Turbine Plant (NPPP)
will be achieved using 90 °F glycol. GVEA's North Pole Expansion Plant (NPEP) is a combined
cycle facility that incorporates a Rankine steam cycle to recover gas turbine exhaust heat and
generate additional electric power. As the steam turbine exhaust steam is condensed back to
water, 115 mmBTUlhr of latent heat is rejected from the steam cycle. This energy is available in
the condenser cooling water system and currently being rejected to the atmosphere through fin
fan coolers. The proposed waste heat recovery project would route 90 T condenser cooling
water to the NPPP facility, distribute the glycol to 12 unit heaters, and provide the building heat
required during the heating season. If funded by AEA, GVEA will begin construction in March
with completion scheduled in time for the fall 2009 heating season.
—2.2 PROJECT DESCRIPTION -- — —
Provide a one paragraph dascridtion of your project At a minimum include the projeci
=^imurrifM&s to be saryod, and who will be involved in the. grani project,
The NPEP Waste Heat Recovery Project consists of installing 520' of underground supply and
return piping, a glycol distribution piping system inside NPPP, installing 12 glycol unit heaters
with VFDs, and HVAC controls. GVEA will manage and administrate the project, perform the
electrical/control installation, commissioning, and startup of the system. The mechanical portion
of the work will be performed by a mechanical contractor. Electric power conservation/fuel
savings will benefit all of GVEA's 33,000 members from Cantwell to Delta Junction.
1,3 PROJECT BUD ET'OVERVIEW — —
Sriefydiscuss the amount of funds needed, the anlico ted sources of -funds, and tho nature, and scuroe
of other contributions to the project. Include a project cost summary that ir?ciudes arr estimated total cost
through construction.
GVEA estimates the total cost for the NPEP Waste Heat Recovery Project to be $1,050,000.
The requested financial support from AEA is 80% of the estimated total cost and is $840,000.
GVEA will provide 20% in cash for purchases of equipment, supplies, and labor. GVEA's
estimated contribution is $210,000.
Estimated NPEP Waste Heat Recovery Costs
Engineering
HVAC Design, Mechanical Installation Package
$22,500
Mechanical
Installation
Excavation, materials, fabrication, structural supports, unit heater
installation, underground pipe insulation, testing
$822,000
Electrical Installation
Conduit and wire, tie-in to existing power, VFDs and materials,
instruments and controls, functional checkout
$84,213
Unit Heaters
Procurement and shipping of 12 unit heaters
$30,000
Commissioning
Clean and circulates stem, restore piping, fills stem with glycol
$34,800
Project Management
Estimated at 6% of project costs
$56,487
Estimated Total Cost
$1,050,000
AEA 09-004 GVEA Waste Heat App Page 3 of 12 10/6/2008
ORITY
ALASHKA
Renewable Energy Fund
Grant Application
2.4 PROJECT BENEFIT
Br(efi`y dfscuss the financial benefits that will-re�ult from this project, including are ,stfrnate of economic
e: e? is sucia as reduceof foal casts] arrd a descrJpfr`or+ of other benefits to the Ala,3kan public.
This waste heat recovery project will demonstrate to GVEA's membership and Alaska the
heating potential of 90 T glycol and fuel savings from BTUs recovered from condenser cooling
water. The direct financial benefits of this project include burning less fuel and improving the
combined cycle efficiency of NPEP. Reducing fuel consumption directly lowers the electric
rates for GVEA members. Net energy conservation for GVEA is 500 kw of electric resistive heat
minus 12 W-10 hp fans and equals 410 kw savings. Based on NPEP fuel costs for January
through August 2008, 410 kwlhr costs $70 in fuel to produce. Thermal pollution to the
atmosphere is also reduced by utilizing the low temperature glycol heat.
This energy conservation will increase power available to GVEA members by 410 kw without
installing new generating capacity. This may not seem like much but at times may be the
difference between providing the required load with one turbine or having to start a second
when load exceeds NPEP's capacity. Member fuel savings in this case are exponential due to
the poor efficiency of a second gas turbine at low load.
The Alaskan public will benefit by the demonstration of this waste heat recovery concept and
look for other low grade waste heat to utilize in similar space heating type applications.
Reducing fuel burned results in lower NOx, CO, and CO2 emissions from the gas turbine.
' 2.5 PROJECT COST AND BENEFIT SUMARY
lrrclude a'surhmary of your prpject's,fotal costs and benefits below.
i 2.5.1 Total Project Cost
i _ (including estimates through canstrugtion.)
$ 1,050,000
i
+2.5.2 Grant Funds Requested in this a trcaflon.
� �� �
i $ s4o,oao
2,53 Othar Funds to be provided (Project match)
$ 210,000
25.4 Total Grant Costs (sure of 2,5.2 and 2.6,3)
_
$ 1,050,000
2.6.5 Estimated Benefit (Savings)
$ 7,000,000
$ 7,000,000 — Fuel savings
directly reduce GVEA
customer bills
_
Public Benefit. (if you can calculate the be oft in terms of
+ dollars please provide that number here and explain how
t you calculated that number in your application.)
AEA 09-004 GVEA Waste Heat App Page 4 of 12 10/6/2008
Renewable Energy Fund
Grant Application
I SECTION 3 — PROJECT UANAGEMENT PLAN
Describe who will be responsible for man,�tging the projedt'ihd provide a plan for successfully
completing the project within thp.. ope, Khg0g1q..9.nd budget propo;ed in the application.
1 A Project: Manager
Tell us who will be managing the project for the Grantee and include a resume and references
for the mariager(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
fro-ca AEA or another govemment entity, state that -in this section.
Paul Park — GVEA Project Manager (Appendix A)
3.2 Pr1'D'J4d'9C i`d61e
4� !ude a schedule for the proposed work that will be funded by this grant_ (You may include a
chaaq or table attachment with a sumrnary of dates below,)
Project Schedule (Appendix D)
12/19/2008
Notification of AEA Grant Award
1/5/2009
Issue RFP for Mechanical Installation of Waste Heat Recovery System
2/13/2009
Award Mechanical Contract
2/23/2009
Purchase Unit Heaters and VFDs
3/5/2009
Mechanical Contractor Kickoff Meeting
5/18/2009
Unit Heaters onsite, Electrical/Control installation start
9/4/2009
Mechanical Installation Complete
10/2/2009
Waste Heat Recovery System Complete and Inservice
.3 Project Milestones
Define key tasks and decision 0616t 1n your Rr6j l: � schedule for achievin tg hern,
Project Milestones are shown on Project Schedule (Appendix D)
Mechanical Contractor Bid Review — A quality mechanical contractor is critical to the success of
the project, the lowest bid is not necessarily the best. Experience, past performance, and
staffing are intangibles that must be considered in the review process along with the price.
Unit Heater Procurement -- Equipment delivery can impact timely completion of mechanical
installation. Early procurement and follow up by GVEA Purchasing will keep unit heater delivery
on track. Original quote for unit heaters stated 6 weeks ARO.
Mechanical Installation — Detailed installation schedule and schedule of values will provided by
mechanical contractor during kickoff meeting. Mechanical progress will be checked weekly by
GVEA PM at jobsite. Installation schedule of values, actual field progress, and installation
schedule will be reviewed when processing the monthly mechanical contractor invoice. GVEA
will provide support as needed to keep mechanical installation on schedule.
Electrical/Control Installation — Monitor work activity of GVEA electricians weekly by GVEA PM
at jobsite. Assist in field decisions and provide engineering support when needed to keep
electrical/control installation on schedule.
AEA 09-004 GVEA Waste Heat App Page 5 of 12 10/6/2008
ALASKA
Renewable Energy Fund
Grant Application
3.4 Project Resources
IGw: pie the personnet, contractors, equipment, -and services you will use to accomplish the
project. Include any partnerships or commitments with other entities you have or anticipate will
1' ba needed to complete yo.ur project. Describe any existing. contracts and the selection process
you may use for major equipment purohases or contracts. Include brief resumes and references
L for known, lc .personnel, contractors, and suppliers as an attachment to your appl[eation. _
Resumes (Appendix A)
Engineering Construction Support - Reuter Engineering (performed HVAC design)
GVEA Power Supply - Project management, Electric/Control Installation for unit heaters,
mechanical contractor support during construction, commissioning, and startup of waste heat
recovery system
GVEA Admin - Accounting and administrative support for project construction
GVEA Purchasing - Contracting, procurement of selected unit heaters and other materials
Mechanical Contractor - Determined through competitive bid process
3.5 Project Communications
Disuuss how you plan to monitor the project and keep the Authori
informed of the status,
The GVEA Project Manager will be onsite a minimum of 50% during construction and direct
commissioning/functional checkout/startup activities. The AEA will be updated in writing
quarterly as to project status, schedule update, and cost versus budget report.
3..6 Project Risk
Di oa s potential prob lerris an d howl+ a_u +uou.4add ress then:
The waste heat supply is not available when NPEP is off-line. The existing electric heaters will
be left in place at NPPP as a backup building heat system. Fuel savings estimate reflects
operating the electric unit heaters for 10 days per heating season due to maintenance on the
NPEP plant.
SECTION 4 - PROJECT DESCRIPTION! AND TASKS
Tell us what the project is and how you will meet .the requirements outlined in 8ection 2 of
the RFC#- 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 plisse of a project provide a. plan and
grant budget for completion of each phase.
It some work has already been completed on your project and you are requesting funding for
an advanced phase, subrrrlt informaher? sufficient to derrronstrate that the preceding phases
are satisfied End funding for an advance d phase i's warranted.
1 4.1 Proposed Energy Resource - -
�' Desufl-we the potential oxtentlarnount of the energy resource that is availabie.
iic;uss the pros and cons of your proposed energy resource vs. other alternatives that may be-
1 ava iable for the market to be served by your project.
AEA 09-004 GVEA Waste Heat App Page 6 of 12 10/6/2008
fi I )
ALASKA
Renewable Energy Fund
Grant Application
The amount of waste heat energy available from the cooling water is 115 mmBTU/hr. Energy
required to heat the North Pole Turbine building is estimated at 2.5 mmBTU/hr. Using a fuel oil
boiler system or propane fired system to replace the electric heaters has unacceptable long term
fuel costs. The HVAC designer considered using low pressure steam to heat glycol to 170 °F but
that would have reduced NPEP steam turbine power production and increased project costs.
Three methods of using the condenser cooling water were evaluated, including slab heat, radiant
wall panels, and unit heaters. The slab heat and radiant wall panels had low operating expense
but high installation cost. Unit heaters with fans were sized to provide the necessary heat
transfer utilizing the 90 T glycol to replace the electric heaters. Operating electric costs for the
unit heaters will be reduced by utilizing VFD fan control and high efficiency premium electric fan
motors in the unit heaters.
14.2 Existing Energy System
F
4.2.1 Basic configuration of Existing Energy System
Briefly discuss the basic configuration of the existing .energy systern
the -number. size, age, efficiency and ty{ a of generation -
Include intorrnation about
The existing HVAC system for the North Pole Turbine Plant consists of 15 electric resistive unit
heaters installed in 1978. Electric unit heaters are known for high efficiency but are not the best
value with today's fuel/power cost. Standby time for the North Pole Turbine Plant has increased
due to the successful operation of the North Pole Expansion Combined Cycle Plant. With no gas
turbine/generator/regenerator residual heat added to the NPPP building, extended standby
periods during the winter have required diesel fired auxiliary heaters to supplement the electric
heater operation in keeping NPPP above freezing.
!A2.2 E Asting Energy Rds6urces Used
1' 4riefIy discuss your understanding of the existing energy resources- Include a brief discussion of
Lanympact the project may have on existing energy rastructure and resources.
GVEA uses an economic dispatch model for supplying power to customers. Electric power
conserved internally by GVEA effectively eliminates the fuel required to generate 410 kw of the
highest cost power, depending on the power generation units in service at the time.
4.2.3 Existing Energy Market
Discuss e i ting.;eRef Y se.and. i#:s_rrr C iscuss irnp 5 }your project may knave on energy
Reducing fuel consumption directly reduces GVEA customer charges.
4.3 Proposed System - -
lln,.,ude information necessary to describe the system you are intending to develop and address
t
,potential system design, land ownership. permits, and environmental issues.
4.3.1 System Design
Provide the following information forthei propv"sed renewable energy systiDm;
• A description of renewable energy technology specific to project location
• Optimum installed capacity
Anticipated capacity factor
• Anticipated annual generation
AEA 09-004 GVEA Waste Heat App Page 7 of 12 10/6/2008
ALAS
Renewable Energy Fund
Grant Application
I Anticipated barriers.
• Basic integration concept
Delivery methods
The waste heating system design consists of glycol supply and return underground lines
between NPEP and NPPP. A pipe coating system is specified for the underground piping to
provide 30 years of service. A building distribution piping system will route the glycol supply and
return to 12 unit heaters arranged throughout the NPPP building. Four temperature transmitters
will each control VFD fan operation of three unit heaters to provide zone temperature control.
Pressure drop through the system is designed so no additional pump is needed for glycol
circulation, sufficient pressure is provided by the 300 hp NPEP cooling water pumps. For cost
savings calculation, the heating season has been considered as 150 days and provides for an
allowance of 10 days per winter of electric heater backup use. See Appendix F for engineering
design information, P&ID drawing, and construction documents.
4.3.2 Land Ownership —
Identity potential land ownership issues, including whether site owners 11a.ve agreed to the
erect or how you intend to approach land ownership a nd access issues.
GVEA is the legal owner of the land for both NPEP and NPPP and owns the underground pipe
route.
4.3.3 Permits
Provide the following informati6nas it ma relate to permitting and how you intend to. address
outstanding permit issues.
* List of applicable permits
■ Anticipated permitting timeline
■ Identify and discussion of potential bw -ders
After discussing with the City of North Pole Building department, no permits are required for this
type of mechanical project at the proposed location.
4.3.4 Environ' mental
Address whether the fo€lo ing environm46W:.and-1 nd:.0 e. issues -apply, and if so how they will
be addressed.
6 Threatened or Endangered species'
■ Habital issues
* Wetlands and other protected areas
■ Archaeological and historical resources
■ Land development constraints
* Telecommunications interference
• Aviation considerations
* Visual, aesthetics impacts
■ Identify and discuss other
ntial barriers
This project is located in a heavy industry complex and does not create any environmental
concern not already existing.
l 4.4 Proposed New System Costs (Totai: Estimated Costs and proposed Revenues) �
The !0vel of cost information provided will vary according to the phase of funding requested and
any pr-vious work the applicant may have done on the project. Applicants must reference the
Lsource of their cost data. For example_ ,applicants Records or Analysis,. Industry Standards,
AEA 09-004 GVEA Waste Heat App Page 8 of 12 10/6/2008
ALASKA Renewable Energy Fund
�OG-R-D ENERGY AUTHORITY Grant Application
Consu4ant or Wariufacturer's estimates,
4.4.1 Project Dovelapment Cost
rravlde 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
+ Req'uested grant funding
• Applicant matching funds — loans, capital contributions, in -kind
• Identification of other funding sources
Projected capital cost of proposed renevvabl�. energy system
• Pro iected development cost of or000sed renewable.enerav systam
GVEA estimates the total project to cost $1,050,000. This budget number includes engineering
and is the installed cost. The estimate is based on a detailed mechanical estimate, equipment
quotes, a detailed electrical takeoff, and previous construction experience building NPEP. GVEA
has invested $22,500 to date developing the HVAC design and mechanical construction
documents. GVEA proposes to fund 20% of the project cost through purchasing equipment and
in -kind contribution of labor and materials. The GVEA contribution is estimated as $210,000.
GVEA requests AEA to fund 80% of the project for a total of $840,000.
4 4..2 Project Operating and Maintenance Costs
jnt:,m ode anticipated O&M costs for new facilities constructed and how these would be funded b
she a licant,
Operating and Maintenance costs for the completed waste heat recovery project would be
included in the annual O&M budget for the existing NPEP and NPPP facilities. The existing
electric heaters have such minimal maintenance they are included in a general O&M budget line
for the building. GVEA's has experienced minimal maintenance costs with similar glycol unit
heaters at other locations.
4.4.3 Power PurchasefSale
The power pu rch aselsa le information should Include the following
I' . Identification of potential power bu er(s)Icustomer(s)
j Potential power purchaselsales price - �t � minimum indicate a price range
+ Proposed rate of return from grant -funded project
Electrical energy saved by heating NPPP with waste heat would either be available for members
in GVEA's existing distribution system or not generated.
+ 4=4.4 Cost Worksheet
C.:or pir—f ke we cost worksheet form which
in &valua#ing #hrojt-
AEA Cost Worksheet (Appendix B)
provides summary information that will be considered
4.4.5 Brashness Plan
Discuss your plan for operating the completed project so that it will be sustainable. Include at a
...inimum propoped business structures) and congepts that may be considered.
The completed waste heat recovery project is to be operated and maintained by GVEA Power
Supply as an additional NPEP/NPPP plant system. Both plants are staffed 2417 and have CCTV
AEA 09-004 GVEA Waste Heat App Page 9 of 12 10/6/2008
ALASKA Renewable Energy Fund
I3 ENERGY AUTHORITY Grant Application
installed at various locations. Maintenance and spare parts inventory would be incorporated into
the existing NPEP PM/Work Request/Inventory program. The system description, construction
drawings, O&M manuals, and operation/training documents will be included in the NPEP Plant
Operations Website. The addition of this system to operation duties would have a nominal effect
on the daily operations work load.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additicna_Iproject deve Iopment work -
Using a capital recovery analysis and 6% interest rate, the annualized cost of $1,050,000 is
$250,000 per year for a five year period. If the fuel price averages the 2008 price, fuel savings of
$252,000 pay for the project in five years. The capital recovery period will fluctuate with the
yearly fuel cost.
SECTION 5— PROJECT BENEFIT — — — -- I
Explain the economic and public benefits of your proi,90- lnciude direct cost savings,
d d 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)
O Potential additional annual incentives (i.e. tax credits)
+ Potential additional annual revenue s#reams (i,e, green tag sales or other renewable
energy subsidies or programs that might be available)
* Disstass the non -economic public benefits to Alaskans over the lifetime of the project
Both facilities NPEP and NPPP have a design life of 28 years. Conserving 410 kw/hr for 150
heating days represents a savings of $252,000 per year at 2008 fuel costs. Average 2008 fuel
cost has been $2.73/gallon so the savings in fuel would be 92,000 gallons of naphtha per year.
Over the 28 year life of the two facilities, at 2008 average fuel price the total savings would be $7
million and 2,500,000 gallons of naphtha.
GVEA requests financial assistance from AEA to install this waste heat recovery system next
building season. The AEA Grant will deliver this fuel savings to GVEA's 33,000 members in a
shorter time frame than GVEA's capital project fund, many deferred maintenance items have a
higher capital priority than this project. In 2005, GVEA's Board of Directors adopted a Green
Power Pledge to supply 20% of the peak power load from renewable energy sources by 2014.
This energy conservation project will help GVEA to meet the Board's Green Power Pledge.
The Alaskan public will benefit by the demonstration of this waste heat recovery project and look
for other low grade waste heat to utilize in similar space heating type applications. Reducing fuel
burned results in lower NOx, CO, and COz emissions from the gas turbine to Alaska's air.
Reducing electricity rates by conservation helps sustain local businesses through lower rates
and provides an example for the community.
AEA 09-004 GVEA Waste Meat App Page 10 of 12 10/6/2008
A L A S M Renewable Energy Fund
,(EM ENERGYAUTHORITY Grant Application
SECTION 6 - GRANT BUDGET
Tell us how much your total project costs, lrrciude any investments to date and funding sources,
j how mr _ich is requested in grant funds, and additional irrve,;Jments yo4i will make as an
C apcd,-xt.
'-do an esflrmate of budget costs b casks using the form - Grarri�3��d ef, f
AEA Grant Budget Form (Appendix C)
GVEA estimates the total project to be $1,050,000. The estimate is based on a detailed
mechanical estimate, equipment quotes, a detailed electrical takeoff, and previous construction
experience building NPEP. GVEA has invested $22,500 to date developing the HVAC design
and mechanical construction documents. GVEA proposes to fund 20% of the project cost
through purchase of equipment and in -kind contribution of labor and materials. The GVEA
contribution is estimated as $210,000. GVEA requests AEA to fund 80% of the project for a total
donation of $840,000.
AEA 09-004 GVEA Waste Heat App Page 11 of 12 10/6/2008
ALASKA Renewable Energy Fund
,401E) ENERGY AUTHORITY Grant Application
SECTION 7 ^ ADDITIONAL DOCUMENTATION AN C ERTIFIGATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPI.IC-ATION.
A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and
suppliers per application form Section 3.1 and 3.4
B. Cost Worksheet per application form Section 4.4.4
C. Grant Budget Form per application form Section 6.
D. An electronic version of the entire application per RFA Section 1.6
E. Governing Body Resolution per RFA Section 1.4
Enclose a copy of the resolution or other formal action taken by the applicant's
governing body or management that:
authorizes this application for project funding at the match amounts indicated in
the application
- authorizes the individual named as point of contact to represent the applicant for
purposes of this application
- states the applicant is in compliance with all federal state, and local, laws
including existing credit and federal tax obligations.
F. CERTIFICATION
The undersigned certifies that this application for a renewable energy grant is truthful
and correct, and that the applicant is in compliance with, and will continue to comply
with, all federal and state laws including existing credit and federal tax obligations.
Print Name � # r' I k ' A-) �; L
Signature
filt@B i e, -e � 12 1r+ !� c� ;/ IJ
i
LDate I i
AEA 09-004 Grant Application Page 9 of 9 9/3/2008