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HomeMy WebLinkAboutUAF Test Program Ocean Renewable Power Corp (ORPC) Unitat Nenana App Andrew Parkerson-Gray, CRA Director (907) 474-6000 (907) 474-5444 fnamg@uaf.edu http://www.uaf.edu/osp/ Office of Sponsored Programs 909 Koyukuk Drive, Suite 212 WRRB, P.O. Box 757270, Fairbanks, AK 99775-7270 U N I V E R S I T Y O F A L A S K A F A I R B A N K S UAF is an Equal Opportunity Employer/Affirmative Action Educational Institution 7 October 2008 Alaska Energy Authority AEA-09-004-Renewable Energy Grant Application 813 West Northern Lights Blvd Anchorage, AK 99503 Re: Governing Body Resolution The University of Alaska Fairbanks, an entity of the State of Alaska government, is pleased to submit this proposal, “Test program for the Ocean Renewable Power Corp (ORPC) Unit at Nenana,” prepared by Dennis Witmer and Gwen Holdmann. This project furthers research in generating energy from river in-stream hydropower. UAF approves the identified cost share of $83,046, in the form of Facilities &Administrative Costs forgone by the university under the existing MOA with the State of Alaska. For all technical matters concerning this proposal, the PI (Dennis Witmer; 907-474-7082, ffdew@uaf.edu) or the Program Manager, Gwen Holdmann, Organization Director of the Alaska Center for Energy & Power (907-474-5402, gwen.holdmann@uaf.edu), who will direct this project on behalf of the Alaska Center for Energy & Power and the University of Alaska Fairbanks. For all financial matters concerning this proposal, contact Maggie Griscavage, Director of the Office of Grant and Contract Administration for UAF (907-474-7301, fygrcon@uaf.edu). The appropriate administrative and programmatic personnel at UAF are aware of the pertinent regulations and policies regarding this project, and we are prepared to ensure compliance with all such policies, should this proposal be funded. UAF is in compliance with all federal state, and local, laws including existing credit and federal tax obligations. If you need additional information, please feel free to call my office at (907) 474-6000. Sincerely, Andrew Parkerson-Gray, Director Office of Sponsored Programs University of Alaska Fairbanks Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 19 9/2/2008 Application Forms and Instructions 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 http://www.akenergyauthority.org/RE_Fund.html The following application forms are required to be submitted for a grant recommendation: Grant Application Form GrantApp.doc Application form in MS Word that includes an outline of 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 Worksheet Costworksheet.doc Summary of Cost information that should be addressed by applicants in preparing their application. Grant Budget Form GrantBudget.xls A detailed grant budget that includes a breakdown of costs by task and a summary of funds available and requested to complete the work for which funds are being requested. Grant Budget Form Instructions GrantBudgetInstr.pdf Instructions for completing the above grant budget form. • If you are applying for grants for more than one project, provide separate application forms for each project. • Multiple phases for the same project may be submitted as one application. • 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. REMINDER: • Alaska Energy Authority is subject to the 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. • All applications received will be posted on the Authority web site after final recommendations are made to the legislature. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 2 of 19 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) University of Alaska Fairbanks, Institute of Northern Engineering, Alaska Center for Energy and Power Type of Entity: Government Entity (University Research Center) Mailing Address P.O. Box 755910, Fairbanks, AK 99775-5910 Physical Address 525 Duckering Building, 309 Tanana Loop Telephone 907-474-5402 Fax 907-474-6686 Email ffdew@uaf.edu 1.1 APPLICANT POINT OF CONTACT Name Maggie Griscavage Title Director, UAF Office of Contract & Grant Administration Mailing Address University of Alaska Fairbanks PO Box 757880 109 Administrative Services Center Fairbanks AK 99775-7880 Telephone 907-474-7301 Fax 907-474-5506 Email fygrcon@uaf.edu 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 An independent power producer, or A local government, or XX A governmental entity (which includes tribal councils and housing authorities); Yes 1.2.2. Attached to this application is formal approval and endorsement for its project by its board of directors, executive management, or other governing authority. If a collaborative grouping, a formal approval from each participant’s governing authority is necessary. (Indicate Yes or No in the box ) Yes 1.2.3. As an applicant, we have administrative and financial management systems and follow procurement standards that comply with the standards set forth in the grant agreement. Yes 1.2.4. If awarded the grant, we can comply with all terms and conditions of the attached grant form. (Any exceptions should be clearly noted and submitted with the application.) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 3 of 19 9/3/2008 SECTION 2 – PROJECT SUMMARY Provide a brief 1-2 page overview of your project. 2.1 PROJECT TYPE Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/ Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA. The purpose of this project is to conduct a resource assessment and feasibility analysis of using hydrokinetic power to offset diesel costs in rural Alaska, and to install and test one or more hydrokinetic devices. This project will be conducted in two phases. The first phase includes a resource assessment and feasibility study of the proposed site as well as final design of the turbine, and the second phase includes permitting, construction, and deployment of a hydrokinetic device. 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. The proposed project will take place on the Tanana River adjacent to the community of Nenana. Nenana was chosen due to a combination of strong local support for the project, available technical assistance and infrastructure, and location on the road system within close proximity to the University of Alaska Fairbanks. These factors increase the likelihood of project success while minimizing costs. This project will be administered by the Alaska Center for Energy and Power (ACEP) at the University of Alaska, Fairbanks, with significant contributions from the University of Maine, Yukon River Intertribal Watershed Council, the Tribal and City Councils of Nenana, and Ocean Renewable Power Corporation (ORPC). The primary purpose of the project is to successfully address the numerous challenges associated with installing hydrokinetic devices in Alaska’s riverine environments. This will be accomplished through a comprehensive resource assessment (biological and physical), followed by the installation of a ‘dummy’ open architecture turbine to assess operations in challenging environments (including interactions with ice and debris) without damaging expensive real turbine equipment. Finally, this project will involve the design, construction, deployment and initial testing of a first commercial hydrokinetic device at the site. It is hoped that beyond the scope of this project, the University of Alaska will continue to operate the Nenana site as a test center to assess other devices and work with manufacturers to improve designs. It is also hoped that ORPC, as the holder of the FERC permit for the site, will continue to manage their operation in conjunction with the testing center and supply electric power to the local grid. 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. During the first phase of this project, the Alaska Center for Energy and Power will conduct biological and environmental reconnaissance field work. This will include service contract work by Terrasond to map the flow areas of the river, Biosonics to place fish monitoring equipment around the barge platform (described below), and for UAF School of Fish and Ocean Sciences personnel to perform an evaluation of the proposed devices’ effect of fish stocks. The cost of Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 19 9/3/2008 these contracts to the project is outlined in Section 6 and is based on actual quotes for services requested. In addition, the first phase will include final design, construction and deployment of a ‘dummy’ open-architecture turbine based on a design from the University of Maine. Deploying this device will require renting or purchasing a barge, which should also be capable of serving as a platform to launch commercial turbines in the future (including the ORPC unit). Based on the expected weight of the hydrokinetic devices (estimated at 8.5 tons for the ORPC unit), lifting a turbine and frame to the surface will require displacing 258 cubic feet of water, so the barge needs to be substantial. A Flexi-float barge was recommended for the project, and a local vendor has one for sale, sized at 30x50 feet (could be reconfigured for ease of deploying the unit) at a price of $100,000 (phone quote from Vernon Brice of Brice Construciton, 478-3012 x33) plus $15,000 in trucking charges from Homer to Nenana. The University of Alaska will also be responsible for anchoring the barge. Based on conversations with Chuck Johnson of Brice Construction (907-250-5667), the best way to anchor the barge will be to use a two- anchor system, each weighing 1000 pounds, one upstream of the barge, the second downstream, each anchor with an electric winch and ¾ inch steel cable. The winches will be powered by a hydraulic pump system, which can also be used to power winches to raise and lower the hydrokinetic test device. Additional funds are required for positioning the barge in the river at the test site. The test site is about 1 mile from the main dock area in Nenana, and deployment should be relatively quick, but the initial deployment of the barge may require some adjustment, so several hours will likely be required. The services line includes the estimated tug time. Additional local time will be required for a crane to place the hydrokinetic device on the barge, as well as launching the barge. Local services will also be required for welding deck plates to the barge for mounting the winches, and for plumbing the hydraulic lines for the winches. During the second phase, ACEP will be responsible for deploying and testing the ORPC unit. This will be accomplished with the equipment described above. The largest budget item for this project is associated with the development and construction of the ORPC turbine-generator unit, to be deployed during Phase II of the project. Information directly relating to these costs is available in the budget narrative. 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. Although the initial project will be located in Nenana, the benefits associated with this project will have much broader impacts which are difficult to quantify. If successfully demonstrated, hydrokinetic energy could make a significant contribution to reducing the cost of energy in communities with either an in-river hydro or tidal energy resource. However, if this project does not prove successful, we believe it will save both Alaskan communities and the state of Alaska significant future investment in this technology until issues identified through this program are resolved. Currently the diesel consumed in PCE communities is costing the state $120 million per year. Not all of these communities will have a hydrokinetic resource, and not all the energy requirements in those locations that do have a resource can realistically be met with hydrokinetic power. On the other hand, if there is excess energy in some places, oversized hydrokinetic Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 19 9/3/2008 installations could permit electric space heating. If 10% of the diesel fuel in the communities with a hydrokinetic resource could be displaced as well as an equal amount of heating fuel, the overall public benefit could be as high as $24 million per year. In order for this to be realized, a better understanding of the costs, including O&M and capital costs, needs to be developed. This is a primary goal of Phase II of this project. 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.) $1,937,072 2.5.2 Grant Funds Requested in this application. $1,854,026 2.5.3 Other Funds to be provided (Project match) $83,046 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $1,937,072 2.5.5 Estimated Benefit (Savings) $ 2.5.6 Public Benefit (If you can calculate the benefit in terms of dollars please provide that number here and explain how you calculated that number in your application.) $ Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 19 9/3/2008 SECTION 3 – PROJECT MANAGEMENT PLAN Describe who will be responsible for managing the project and provide a plan for successfully completing the project within the scope, schedule and budget proposed in the application. 3.1 Project Manager Tell us who will be managing the project for the Grantee and include a resume and references for the manager(s). If the applicant does not have a project manager indicate how you intend to solicit project management Support. If the applicant expects project management assistance from AEA or another government entity, state that in this section. Dennis Witmer, UAF faculty and Technical Principal Investigator for this project, will oversee all tasks and testing of the pre-commercial hydrokinetic unit. Gwen Holdmann, Organizational Director of the Alaska Center for Energy & Power, will serve as Project Manager and coordinate all project personnel and tasks and direct preparation of all written reports. Resumes are included as attachments. 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.) This project will be conducted over a 13 month period beginning September 1, 2008. Initial bathymetry of the test site has already been completed as well as preliminary design work of both the ‘dummy’ open architecture turbine and the test turbine which will be installed in the second Quarter of 2010. There is significant overlap between the two phases due to the relatively short timeline which has been developed to expedite deployment of a commercial turbine. The first Phase consists primarily of resource assessment and feasibility studies, including the installation of a ‘dummy’ open-architecture turbine based in part on a design from the University of Maine. The second Phase will include constructing and deploying the first commercial turbine at the site, which will be a river version of ORPC’s Turbine Generator Unit (OCGen River TGU) consisting of two Advanced Design Crossflow turbines. A full project schedule is included below. Funding for this project is requested through the 4th Quarter 2009; however, project activities are expected to continue beyond that point. A summarized project Task List of University of Alaska activities includes: 1. Initial bathymetry of Nenana test site (completed) 2. Terrasond survey of test site and report (Oct 30th, 2008) 3. Complete Terrasond contract and begin open-architecture turbine construction (Oct 30th, 2008) 4. Complete purchase of barge and winch equipment (Dec 31st, 2008) 5. Receive ORPC unit (May 15th, 2009) 6. Deploy ORPC unit and begin full-scale fish monitoring (May 31st, 2009) 7. Complete summer testing of ORPC unit (Sept 15th, 2009) 8. Final project report (Dec 31st, 2009) Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 19 9/3/2008 Year 1 (2009) Year 2 (2010) Tasks 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 Phase I Purchase barge to support program Engineering Design & Const. of open architecture turbine Design of anchoring system Deployment of open architecture turbine Test feasibility (under ice deployment) Address grid connection issues Environmental Assessment Biological Develop assessment protocol w/ Biosonics Conduct preliminary monitoring Full scale monitoring Environmental Assessment Physical Hydrology & hydraulic flow studies Modeling of site Economic Assessment Complete test turbine design (ORPC) Phase II Complete permitting for Nenana site (ORPC) Order components for test turbine and frame Construct test turbine (ORPC) Install test turbine Operate test turbine Final Project Report 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Milestones are tied to the schedule listed above. The project cost estimate assumes a start date of September 1st, 2008 and an end date of September 30th, 2009. There will be a go/no-go decision making point in early 2009. If the open architecture turbine and environmental surveys are not successful, the second Phase will not be conducted beyond the permitting and design stage until additional tests are conducted and issues are resolved. The goal is ensure successful long-term operation of a hydrokinetic device at the site. The costs and schedule outlined in this proposal also assume that ORPC delivers the hydrokinetic unit for testing by May 15th, 2009 for timely deployment. Deliverables for this project include project personnel participation in two meetings with AEA program managers, data presentation and interpretation at these meetings, and a final report interpreting and summarizing project data for AEA. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 19 9/3/2008 In addition to the personnel described above, co-investigator Horacio Toniolo, will interpret data regarding interactions between river sediments and the hydrokinetic unit. Co-investigator Amanda Rosenberger will oversee all tasks related to evaluating the unit’s potential impact on fish stocks in the Nenana River. Research Engineer Jack Schmidt will oversee on-site operations in Nenana. As noted above, contracts will be established with Terrasond to map the flow areas of the river, and with Biosonics to place fish monitoring equipment around the barge. Selection of these companies is based on their expertise with similar projects and UAF’s federally compliant procurement processes. Any equipment purchased to support this program is based on lowest cost and an ability to deliver on time to meet the project schedule. Local contractors and equipment will be selected as needed based on experience, availability, and expense. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Project personnel have planned and requested funding for at least in two meetings with AEA personnel, data presentation and interpretation at these meetings, and a final report interpreting and summarizing project data for AEA. 3.6 Project Risk Discuss potential problems and how you would address them. Despite the obvious opportunities, there are also significant environmental and technical challenges relating to the deployment of hydrokinetic devices in Alaska’s rivers. Some of these are common to installations in any location, and other concerns are more specific to Alaskan waters, including: 1) Environmental concerns, especially with regard to impacts on fish. Fishery resources in Alaska have unparalleled value for subsistence, sport, and commercial use, and it is critical that hydrokinetic energy development is fully evaluated for impacts on these resources. 2) Survivability and performance. Alaskan waters have many forms of hazards for hydrokinetic devices, including high rates of sediment transfer in river beds, debris, and ice. These issues also complicate the design of anchoring and cabling systems. 3) Resource assessment – there is a paucity of overall data which is magnified in winter months. 4) Effects on navigation – many of the fast flowing rivers in Alaska with potential for hydrokinetic development are also major waterways for barge delivery of bulk materials to isolated communities, so a major consideration is that they do not impede traffic. All of these potential issues will be addressed during Phase I activities. If the issues relating to deployment of a hydrokinetic device at this site cannot be resolved during Phase I, the second phase will not go forward until the issues are resolved. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 19 9/3/2008 SECTION 4 – PROJECT DESCRIPTION AND TASKS • Tell us what the project is and how you will meet the requirements outlined in Section 2 of the RFA. The level of information will vary according to phase of the project you propose to undertake with grant funds. • 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. The amount of potential energy available is significantly more than is needed. It is estimated that the electric power requirements for Nenana (population of 460) is less than 1 MW. If the environmental and biological concerns can be adequately addressed, enough units can be installed to meet all of the electric energy requirements for a community the size of Nenana, at least during average flow conditions. There has currently only been one commercial in-river hydrokinetic device installed in the U.S., and that was a small 5 kW Encurrent unit installed in Ruby. Encurrent has expressed interest in installing a larger unit (70 kW) at the Nenana site for testing in the future. UEK also has a project planned for Eagle, Alaska. The UEK and Encurrent turbines are based on an axial flow design, whereas the ORPC unit is based on a cross flow design. There are some indications that a cross flow design may be more robust for in-river hydrokinetic installations. 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. If long term operation of this project occurs as planned, it will be tied into the Railbelt power grid at Nenana, under an agreement with Golden Valley Electric Association. 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. The installation in Nenana would have minimal impact on the existing grid, however in a rural isolated grid environment this type of system would generally have highly consistent output compared with more variable resources, such as wind. There is the potential to utilize hydrokinetic energy as a baseload in rural Alaska, although the possibility of a catastrophic failure exist and seasonal fluctuations in output are expected. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 19 9/3/2008 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. To date, most projects involving hydrokinetic devices have been conducted in tidal environments. Alaska has the most significant in-river applications for these devices in the U.S., and as such has the opportunity to play a significant leadership role in technology development. While in general hydrokinetic energy has been considered a pre-commercial technology, there are a large number of manufacturers with devices very close to commercialization, including ORPC. It is expected that this technology sector will make tremendous strides in the next 5 years. This project is not in itself expected to have a significant impact on energy customers (positive or negative) due to its relatively modest size. However, if this project is demonstrated to be economically and technically feasible, the impact on development of future sites could be profound and would result in a reduction in cost of delivered power. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 19 9/3/2008 4.3 Proposed System Include information necessary to describe the system you are intending to develop and address potential system design, land ownership, permits, and environmental issues. 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 • Delivery methods As part of Phase II of this project, ORPC will supply a river version of its Turbine Generator Unit (OCGen River TGU) consisting of two Advanced Design Crossflow (ADCF) turbines mounted on either side of a Permanent Magnet (PM) generator through a single shaft. The unit is designed to be completely submersible, fit into a 40 conex container, with an output of approximately 30kW in a 6 knot current. The capacity factor will be determined from Phase I data and power/flow chart available from ORPC and included in the attachments. Anticipated annual generation will also be determined from Phase I data, with a maximum of 262,800 kWhrs/year. Anticipated project barriers include adequate current velocity, designing and successfully implementing the mooring system, and designing and implementing an adequate debris diversion apparatus. The electricity produced by the permanent magnet generator will be power conditioned through an inverter to grid quality 3 phase power, that will then be tested on a load bank designed for this purpose before it is integrated and tested on the local GVEA grid. Interconnection with the GVEA grid is likely to occur after the conclusion of this project. The TGU is designed to be shipped to Nenana in one 40 ft Conex container, with the power conditioning, load bank, and ancillary parts in another. It will be deployed on site from a pontoon flexifloat type barge which is included in the project budget. 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. The turbine will be installed in the Tanana River, and therefore the ‘property’ is owned by the State of Alaska and a permit will be required prior to installation. However, it is likely that the project will also require access to the adjacent property on the bank of the Tanana, which is owned by the Tribal Council. Attached is a letter which grants permission to access the property for activities relating to this project. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 19 9/3/2008 • Anticipated permitting timeline • Identify and discussion of potential barriers The list of applicable permits includes: • Fish habitat permit – ADF&G • Water Rights – ADNR • Land Use permit – ADNR • Army Corps permit: • Fish collection permit (for fish sampling studies) – ADF&G • FERC - secured by ORPC 7/08 • Coast Guard Navigation • Coastal Zone Management (may apply) The permitting process for the testing is expected to be completed by May, 2009. Long term permits for continual operation will be obtained by ORPC by the conclusion of Phase II. 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 There is no existing environmental and land use issues associated with this project. This project will carefully monitor and document any impacts to resident fish. 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 • Projected development cost of proposed renewable energy system The total anticipated project costs are $1,937,072. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 19 9/3/2008 There is significant prior work which has been completed in support of this project. For example, the ‘dummy’ open-architecture turbine was designed by the University of Maine over a number of years, including testing of components and building of a prototype unit. The Nenana site will represent the first in-situ test based on the Maine design. The University of Alaska has also invested past research dollars into interconnection issues which will need to be addressed as part of this project, and also has monitoring and mapping equipment and software which can be used as part of this project. All of these are considered sunk costs. In addition, the University is charging the State a reduced overhead rate (20.1% lower than normal) on the total direct cost of the project, which results in $83,046 in cost share. ORPC has also invested significant sunk capital in product development, including $250,000 in basic design of the turbine, generator, frame, and power electronics specific to this project. The capital costs for the ORPC unit are estimated at $975,000. 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 • Requested grant funding A significant goal of this project is to determine an accurate O&M cost for hydrokinetic projects such as this one. Phase I of this project will in part determine an estimated value for O&M costs based on experience with the open-architecture turbine deployment. This value is expected to be site specific, and will have a significant impact on whether Phase II is completed. ORPC has developed an O&M estimate of 2.5 cents per kWhr for tidal sites which can be used as a basis for developing an in-river O&M cost. There is no funding for O&M requested as part of this proposal. 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 from grant-funded project Golden Valley Electric Association will be the purchaser of power generated from this project. It is important to note that the primary role of ACEP and the University of Alaska is to assess the site, ensure project viability, and conduct testing on the ORPC turbine as well as other units as requested. Assuming the project is successful, it is expected that ORPC will enter into a long- term power purchase agreement with GVEA, which will be based either on the avoided fuel cost (currently 13.5 cents), or a long term price to be agreed upon between the two entities. GVEA has a streamlined application procedure for renewable energy projects under 2 MW which will be used to develop this agreement. The rate of return for the 30 kW unit based on the avoided fuel price alone assuming year-round operation could be as high as $35,478 per year. In addition, the project may qualify for the GVEA SNAP program which would result in an additional $157,680 in project revenue based on 2008 returns. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 19 9/3/2008 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. See attached below.  Renewable Energy Fund   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1 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. Greater than community energy needs Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] 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]                                                              1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden  Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage  Municipal Light and Power.   Renewable Energy Fund   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other   3. Proposed System Design a) Installed capacity 30 kW b) Annual renewable electricity generation i. Diesel [gal or MMBtu] ii. Electricity [kWh] iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other 262,800 kWhrs 4. Project Cost a) Total capital cost of new system $975,000 b) Development cost $847,198 c) Annual O&M cost of new system $6570 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity 18,770 gallons ii. Heat 0 iii. Transportation 0 b) Price of displaced fuel $35,478 c) Other economic benefits d) Amount of Alaska public benefits Difficult to quantify 6. Power Purchase/Sales Price a) Price for power purchase/sale 13.5 cents/kWhr  Renewable Energy Fund   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio Payback Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 19 9/3/2008 4.4.5 Business Plan Discuss your plan for operating the completed project so that it will be sustainable. Include at a minimum proposed business structure(s) and concepts that may be considered. The turbine will be operated by ORPC after completion of this project, and additional units are expected to be installed. The project will be locally managed, monitored and maintained. The University will retain ownership of ancillary test equipment such as the barge to conduct future testing of other devices. A more detailed business plan will be completed by ORPC at the conclusion of Phase I. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. A significant part of Phase I will include conducting an economic analysis which will extend to proposed installations at other locations around the site. A model will be developed based on Phase I data, and this will be verified and updated during Phase II. 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 project is expected to generate up to 262,800 kWhr based on the installation of one 30 kW unit. This would offset approximately 18,770 gallons of diesel fuel, or approximately $100,000 in fuel savings in a community with a fuel cost of ~$5 per gallon. Over the lifetime of the project, this could result in as much as $2 million in savings. Actual output is expected to be somewhat lower, but is highly dependent on current velocities. Because this installation will be tied into the Railbelt grid, it will be subject to a power purchase agreement with GVEA as described in section 4.4.3. of this application. In addition, the project will be eligible for the federal production cost credit (PTC) provided it is operated by ORPC (a private corporation). Under the power purchase agreement outlined in section 4.4.3., the project would not be eligible for green tags or any other renewable energy subsidies. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 16 of 19 9/3/2008 The project is also expected to generate significant new income opportunities for residents of Nenana, or other communities where hydrokinetic devices might be installed in the future. This project provides significant additional benefits to Alaska because it will provide an impartial assessment of the technology, and of any negative impacts of deploying these devices. This could result in significant savings to communities in terms of streamlining monitoring and site assessment protocols and determining project feasibility based on established costs developed through this project. 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. Include an estimate of budget costs by tasks using the form - GrantBudget.xls See the attached budget sheet. The Budget Narrative below is an explanation of these cost estimates. Budget Justification This cost estimate assumes a start date of 1 August 2008 and an end date of 30 September 2009. These costs also assume that the Ocean Renewable Power Corp (ORPC) delivers the discussed pre- commercial hydrokinetic unit for testing by 15 May 2009 for timely deployment. Deliverables for this project include project personnel participation in two meetings with AEA personnel, data presentation and interpretation at these meetings, and a final report interpreting and summarizing project data for AEA. Salaries Senior Personnel. Funding to support 80 hours (roughly 2 weeks) is requested for the Principal Investigator (Witmer) of this project, who will oversee all tasks and testing of the pre-commercial hydrokinetic unit. Funding to support 174 hours (roughly 1 month) is requested for Gwen Holdmann, who will coordinate all project personnel and tasks and direct preparation of all written reports. Funds to support 80 hours is requested for co-I Toniolo, who will interpret data regarding interactions between river sediments and the hydrokinetic unit. Funds to support 174 hours are requested for Amanda Rosenberg, who will oversee all tasks related to evaluating the unit’s potential impact on fish stocks in the Nenana River. Per UAF policy, faculty receive leave benefits at a rate of 1.5%, calculated on salary, and faculty salaries are estimated to increase by 4.5% annually. Total cost to Project: $23,954. Other Personnel. Funding to support 1560 hours of salary (roughly 9 months) is requested for one postdoc in fisheries, who will perform field activities related to fish stocks. Per UAF policy, post docs leave benefits at a rate of 1.5%, calculated on salary, and faculty salaries are estimated to increase by 4.5% annually. Total cost to Project: $54,326. Support is requested for Research Associate (1,000 hours; roughly 5.7 months), who will perform field tasks related to deploying, operating and gathering data from the hydrokinetic unit. Per UAF policy, staff receive leave benefits at a rate of 20.7%, calculated on salary, and salaries are estimated to increase by 3% annually. Total cost to Project: $33,600. Support is requested for one Masters level Graduate Student Research Assistant for one year. Students work 20 hours per week during the academic year (760) and 40 hours per week during the summer (560), for a total of 1320 hours. Total cost to project: $29,252. Fringe Benefits Staff benefits are applied according to UAF’s benefit rates for FY09, which are negotiated with the Office Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 19 9/3/2008 of Naval Research (ONR) annually. Rates are 32.1% for faculty and postdoc salaries, 48.7% for staff, and 7.9% for graduate students (summers only). Total cost to Project: $45,078. Permanent Equipment Funding is requested for the following equipment: The proposed research is based on use of this equipment, which is not available at UAF. Current price quotes are attached. Total cost to project: $1,251,500. Travel Funds of $9,908 are requested to support travel to field sites for this project. Funds of $2,664 are requested to support travel to meetings with the Alaska Energy Authority in Anchorage. Funds of $12,850 are requested to support travel by 5 project personnel to national level conferences in order to disseminate our research results. Airfare costs are estimated based on current pricing. Meals are estimated at $44 per day, based on UA Board of Regents policy. Lodging is based on current US Government figures. See below for an estimated cost breakdown. Total cost to Project: $25,422. Other Direct Costs Materials & Supplies. Materials and supplies are budgeted at $87,533 according to the notes below: Dummy turbine construction $20,000 Anchoring system supplies $20,000 Field supplies for operation & data collection (hydrokinetic device) $20,000 Field supplies for fisheries data collection $20,000 Computer software and other lab supplies $7,533 Publication & Dissemination. A total of $2,000 is requested to fund publication costs, to defray the expenses of publishing our results in professional journals. Services. Funds of $1,000 are requested to cover the cost of conference registration for team members and other service costs related to project outreach. Funds of $1,000 are requested to support field-based communications and shipping with our collaborative partners. Funds of $20,000 over the life of the project are requested as consultant fees for the Yukon Tribal Watershed Council and the Nenana Tribal Council to ensure that this project is informed by local expertise and a strong stakeholder point of view. Funds of $20,000 are requested for services such as Ice cutting, snow removal, construction services and heavy equipment rental in Nenana—to provide local services for placement of turbines under ice at test site—snow removal, cutting ice and removing blocks, and moving equipment to site. Subawards. Funds of $25,000 are requested to support Terrasond performing characterization of river channel and flow patterns both before and during deployment of hydrokinetic devices. Funds of $100,000 are requested to contract with Biosonics supply and deploy a hydroacoustic system for detecting fish and fish movement along the river channel. Total cost of subawards to project: $125,000. Other. UAF requires that any graduate student supported by a research project over the course of the academic year also receive tuition support and health insurance costs for the life of the project. Costs in Year 1 are $11,070 (tuition) and $1,188 (insurance) per student, for a total of $12,258. ORPC Hydrokinetic Device 975,000 Barge 115,000 Boat 21,500 Hydraulic Winch system 110,000 Load Bank system 30,000 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 19 9/3/2008 Indirect Costs Facilities and Administrative (F&A) Costs are negotiated with the Office of Naval Research and are set at 45.1% of Modified Total Direct Costs. F&A costs for state-funded research are calculated at 25% of the Modified Total Direct Costs (MTDC). MTDC includes Total Direct Costs minus tuition and other student support, subaward amounts over $25,000, and equipment. A copy of the relevant agreements are available at: http://www.alaska.edu/controller/cost-analysis/negotiated_agreements.html Costshare We offer the difference between our federally determined F&A rate (45.1%) and the rate we offer the State of Alaska (25%) as cost share on this project; 20.1% of Modified Total Direct Costs for this project represent $83,046 in real costs to the university in support of the goals of this project. Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY:Milestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1. September 30, 2008 Complete initial bathymetry of Nenana Test site (completed)$10,000.00 $2,000.00 $12,000.002. October 30, 2008 Terasond mapping of river velocity and report$64,402.00 $12,000.00 $76,402.003. October 30, 2008Complete contract with Terasond$365,882.00 $11,930.00 $377,812.004. December 31, 2008Complete purchase of barge and winch equipment$118,811.00 $15,625.00 $134,436.005. May 15, 2009Receive ORPC unit$1,068,673.00 $14,004.00 $1,082,677.006. May 31, 2009Unit in water, fish monitoring begins$163,640.00 $17,816.00 $181,456.007. September 15, 2009Unit completes summer testing$41,769.00 $6,385.00 $48,154.008. September 30, 2009Report to AEA on performance$20,849.00 $3,286.00 $24,135.00 Total Request:$83,046.00 $1,937,072.00 $1,854,026Milestone # or Task #BUDGET CATAGORIES:12345678TOTALSDirect Labor and Benefits $10,000.00 $26,000.00 $30,000.00 $40,000.00 $45,762.00 $41,000.00 $30,000.00 $10,000.00 $232,762.00Travel, Meals, or Per Diem $3,538.00 $12,476.00 $12,327.00 $1,769.00 $1,668.00 $31,778.00Equipment$276,500.00 $975,000.00 $1,251,500.00Supplies $10,864.00 $9,382.00 $25,265.00 $23,911.00 $35,313.00 $4,681.00 $109,416.00Contractual Services $24,000.00 $50,000.00 $30,000.00 $24,000.00 $75,000.00 $10,000.00 $4,500.00 $217,500.00Construction Services$0.00Other Direct Costs$11,070.00$11,070.00TOTAL DIRECT CHARGES $10,000.00 $64,402.00 $365,882.00 $118,811.00 $1,068,673.00 $163,640.00 $41,769.00 $20,849.00 $1,854,026.00cost share (waived F&A costs) $2,000.00 $12,000.00 $11,930.00 $15,625.00 $14,004.00 $17,816.00 $6,385.00 $3,286.00 $83,046.00RFA AEA09-004 Budget Form I ALASKA ENERGY AUTHORITY Renewable Energy Fund Grant Application SECTION7 - ADDITIONAL DOCUMENTATIONAND CERTIFICATION SUBMITTHE FOLLOWINGDOCUMENTSWITHYOURAPPLICATION: A. Resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1and 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 RFASection 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 Andreu.)Po..,./':'uson-G~ Signature ~ Title D;~r,UP,f=oPR c.(..err Spo"'sand -?rOj~S Date 10IO"":f-/2DO't! AEA 09-004 Grant Application Page 19 of 19 9/3/2008 ORPC OVERVIEW Ocean Renewable Power Company, LLC 2 Portland Fish Pier, Suite 307 Portland, ME 04102 Phone: (207) 772-7707 Fax: (207) 772-7708 Emission-Free Electricity from the World’s Rivers and Seas ORPC Overview August 2008 www.oceanrenewablepower.com Varies - 10 to 16Feet TypicalVaries – 7 to 12 Feet Typical Incoming (Flood) Current Varies with application – 36 to 107 Feet Typical Front/Back Elevation Side Elevation TGU Modular Structural Frame ORPC Proprietary Permanent Magnet Underwater Generator ORPC Proprietary Advanced Cross Flow (ADCF) Turbines Outgoing (Ebb) Current Ocean Renewable Power Company, LLC (ORPC) was founded in 2004 for the purpose of generating reliable, competitive, emission-free electricity from the virtually unlimited energy resources of the world’s rivers and seas. ORPC is both a technology and a project development company. ORPC will deploy its technology in environmentally superior, financially successful tidal, river and deep water ocean current electric generation projects in the U.S. and abroad. ORPC Proprietary Technology: ORPC has completed the technical design and filed patent applications on its proprietary modular ocean current generation (OCGen™) technology. OCGen™ technology converts the kinetic energy in river, tidal and deep water ocean currents into emission-free electricity. The core component of the OCGen™ technology is ORPC’s proprietary turbine-generator unit (TGU), which utilizes advanced design cross-flow (ADCF) turbines to drive a permanent magnet generator located between the turbines and mounted on the same shaft (Exhibit 1). ORPC has developed TGU designs for generating power from river, tidal and deep water ocean currents. Exhibit 1: Turbine-Generator Unit (TGU) In April 2008, ORPC successfully completed initial testing of a prototype TGU at ORPC’s Cobscook Bay and Western Passage tidal sites near Eastport, Maine The prototype TGU demonstration project proved the technical viability and end- to-end performance of the TGU design and components in actual tidal currents. The TGU was deployed 30 feet below a barge using a swing-arm assembly (Exhibit 2) and then tested under various current flow conditions. The TGU self- started at current speeds under 2 knots, generated electricity continuously and in direct proportion to current speeds and did not stop generating until current speeds fell below 1 knot in reversing (flood and ebb) currents. The peak electrical output (at 3-phase equivalent power) adjusted for a 6-knot current scaled to approximately 22 kilowatts, in the expected range of 15 to 25 kilowatts. Exhibit 2: Prototype TGU Deployment ORPC Overview August 2008 www.oceanrenewablepower.com 1 MW Peak Generating Capacity in a 6-Knot Current Vertical (4x1) Configuration Horizontal (2x2) Configuration ORPC plans extensive testing of the commercial design of the TGU in the summer and fall of 2009. By the end of 2009, the TGU will be ready for commercial installations in run-of-river and shallow tidal energy sites, as shown in Exhibit 3 below. Exhibit 3: River TGU Configuration & Deployment Option OCGen™ modules are “stacked” configurations of the TGU that are combined with modular ballast/buoyancy and power electronic components to create a significant underwater power generation platform for tidal and deep water ocean current applications. OCGen™ module configurations can be adapted to fit a variety of site conditions. Each OCGen™ module configuration (Exhibit 4) will have a generating capacity of 1 megawatt (MW) in a 6-knot tidal current. Exhibit 4: Tidal OCGen™ Module Configurations and Deployment Options OCGen™ Tidal Module Configurations Tidal Deployment Options OCGen™ Run-of-River TGU Configuration Stacked TGU River Deployment Option ORPC Overview August 2008 www.oceanrenewablepower.com ORPC Project Development: ORPC is developing tidal energy projects in three of America’s most robust tidal energy resources: Western Passage (Exhibit 5) and Cobscook Bay, Maine and Cook Inlet, Alaska. ORPC has obtained Preliminary Permits from the Federal Energy Regulatory Commission (FERC) and is in the process of obtaining Pilot Project Licenses for all 3 sites. Exhibit 5: ORPC’s Western Passage, ME Tidal Energy Site ORPC is also developing run-of-river sites in Alaska and northern New England and has applied for a FERC Preliminary Permit for its Tanana River site near Nenana, AK. ORPC is committed to working on a collaborative basis with local communities and other key stakeholders in all of its project development efforts. ORPC Competitive Advantages: OCGen™ technology has important competitive advantages over other technologies that are being developed for generating electricity from tidal currents. These advantages include: Lower cost to build, install and maintain Simple, robust power train with no gears Reduced “wear and tear,” noise, and vibration No interference with shipping or boating No visibility (view shed) issues Lower potential for impact on sea life No equipment repositioning needed in reversing (tidal) currents TGU with low vertical profile Numerous “stackable” configurations Social, Economic and Environmental Benefits: Significant social, economic and environmental benefits will result from successful development ORPC’s OCGen™ technology and deployment of OCGen™ tidal, river and deep water ocean current projects in the U.S. and throughout the world. This renewable energy technology: creates a significant new supply of emission-free electricity; emits no greenhouse gases (or gases of any kind) and no liquids; is deployed well below the surface of the rivers and ocean, therefore having no visibility (“view shed”) impacts; has minimal impact on marine life and the ocean bottom; provides quality jobs and other substantial economic benefits. OCGen™ technology has the potential to be the most environmentally benign method of generating electricity and will be a major contributor of emission-free renewable electric power to grid-connected metropolitan areas and remote coastal and island communities worldwide. It is also a potential source of energy for offshore production of hydrogen and potable water.