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RFA AEA 09-004 Application Cost Worksheet 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. According to the United States Forest Service, 100
million board feet of wood is harvested annually
within the Tongass National Forest. Up to 20% of
the harvest is hog fuel, which equates to 20,000
tons. When combined with mill waste, the total dry
feedstock available per year could be in excess of
42,000 tons per year. The proposed plant needs a
minimum of 33,000 tons per year. This provides
safety factor of about 30%.
Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel)
2. Existing Energy Generation
a) Basic configuration (if system is part of the railbelt grid, leave this section blank)
i. Number of generators/boilers/other 2
ii. Rated capacity of generators/boilers/other Combined Capacity of 22.5MW
iii. Generator/boilers/other type 3 Diesel for peaking/standby 20.5 MW total
iv. Age of generators/boilers/other Unknown
v. Efficiency of generators/boilers/other Unknown
b) Annual O&M cost
i. Annual O&M cost for labor Unknown
ii. Annual O&M cost for non-labor Unknown
c) Annual electricity production and fuel usage (fill in as applicable)
i. Electricity [kWh] 145,120,668 2003 statistics from KPU web site
ii. Fuel usage (if system is part of the Railbelt grid, leave this section blank
Diesel [gal] Unknown, In 2008 local utility ran for 88 days at capacity.
Other
iii. Peak Load At full power generation capacity as indicated by representatives of the KPU.
iv. Average Load unknown
v. Minimum Load unknown
vi. Efficiency unknown
vii. Future trends Unknown, KPU has indicated that consumers are moving toward higher
electrical use for heating.
d) Annual heating fuel usage (fill in as applicable)
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet Page 2
i. Diesel [gal or MMBtu] unknown
ii. Electricity [kWh] unknown
iii. Propane [gal or MMBtu] unknown
iv. Coal [tons or MMBtu] unknown
v. Wood [cords, green tons, dry tons] unknown
vi. Other
3. Proposed System Design
a) Installed capacity 10MW (Nominally 4MW will be available to the utilities
during normal operations. The plant will nominally
generate 5 MW and require 1 MW as a parasitic load to
the plant. In an emergency, the plant could ramp up to full
electrical capacity if need be)
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu] Yr 1: 0 Gallons, Yr 2: 678,841 Gallons, Yr 3: 960,809
Gallons, Yr 4: 960,809 Gallons, Yr 5: 960,809 Gallons,
similarly for Yrs 6-20 there will be 960,809 Gallons per
year.
ii. Electricity [kWh] 33,600 MWH
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other Heating Oil – Yr 1: 0 Gallons, Yr 2: 475,188 Gallons, Yr
3: 672,566 Gallons, Yr 4: 672,566 Gallons, Yr 5: 672,566
Gallons, similarly for Yrs 6-20 there will be 672,566
Gallons per year.
4. Project Cost
a) Total
capital cost of
new system
Total Project Cost is $25,650,000.00. Diesel Brewing will match 20% or $5,125,000.00
and is requesting $20,525,000.00 from the Renewable Energy Fund.
b)
Developm
ent cost
Project Cost Summary:
First year (12 months)costs:
Capital Expenses:$19,235,842.00
Salaries and Wages:$501,962.92
Other Operating Expenses:$1,379,670.00
Total:$21,117,474.92
Second Year
Capital Expenses:$234,000
Salaries and Wages:$800,553.00
Other Operating Expenses:$2,249,646.00
Total: $3,284,199
Renewable Energy Fund
RFA AEA 09-004 Application Cost Worksheet Page 3
c) Annual
O&M cost of
new system
Yr 1:$ 2,392,170.00, Yr 2:$ 3,262,146.00,
Yr 3:$
3,374,628.30,
Yr 4:$
3,492,734.72,
Yr 5:$
3,616,746.4
5
d) Annual
fuel cost
Feedstock (hog fuel) costs are: Yr 1:$66,000, Yr 2:$831,600.00, Yr 3:$873,180.00, Yr
4:$916,839.00, Yr 5:$962,680.00
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 33,600 MWH (generated at the plant and available to the KPU)
ii. Heat 670,000 gallons per year minimum
iii. Transportation 900,000 gallons per year minimum
b) Price of displaced fuel Current price is $5.75 per gallon for heat and $5.25 per
gallon for transportation diesel.
c) Other economic benefits Local jobs created: 25 at an average compensation per
year of $40,000.00
d) Amount of Alaska public benefits Over the life time of the facility (20 years for accounting
purposes), the amount of public benefits eclipses $40M
in direct savings to consumers.
6. Power Purchase/Sales Price
a) Price for power purchase/sale Sales price of fuel/electricity to be negotiated in good
faith with local utility and/or retailers. It is expected that
the price will below that obtained from other sources,
such as diesel/fuel oil transported from outside the
region (eg, Seattle, WA). Initial cost estimates indicate
a minimum savings of 26 cents per gallon on all
diesel/fuel oils equating to an annual consumer
savings of at least $400,000 per year. Combined with
an additional potential electrical savings of
approximately $1.6M, this equates to a minimum of
$2M annual savings to the consumer.
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio
Payback 7-10 Years