Loading...
HomeMy WebLinkAboutGrant Cover LetterALASKA GREEN ENERGY Mr. Butch White, Grant Manager Renewable Energy Grant Program Alaska Energy Authority 813 West Northern Lights Blvd. Anchorage, Alaska 99503 Re: AGE's Rural Arctic Ready Energy Solutions Grant Application Dear Mr. White: Alaska Green Energy, LLC (AGE) in collaboration with UAA's School of Engineering is pleased to submit the attached Renewable Energy Grant Application titled Rural Arctic Ready Energy Solutions. Our proposal demonstrates a Prototype Arctic Ready Combined Heat and Power System using Coal Bed Methane (CBM) gas that will greatly reduce energy costs in rural Alaskan communities that have potential CBM resources. If viable quantities of CBM are found in these communities, then they will have a sustainable energy source available 24/7 365 days a year. This program has the promise to solve the energy crises facing the 38 rural communities identified by the State of Alaska as having potential CBM resources. The significance of this fact can not be overstated. The project will proceed in three parallel components. Component 1 will complete our principal sub- contractor Fowler Oil and Gas's (FOG) Kircher CBM Well located at the intersection of Trunk and Bogard Roads near Palmer Alaska. FOG's directional and horizontal drilling proposal and in -ground dewatering resolves the most difficult social, environmental and operational issues that face rural Alaskan CBM well development. Component 2 will demonstrate the Prototype Arctic Ready CHP at the nearby Colony Schools Complex. Our Prototype Unit will be installed using FOG CBM gas to provide heat and power to Colony Middle and High School at a significantly lower rate and greater efficiency. Component 3 will conduct a detailed assessment of 7 of the 38 rural communities that State and federal agencies have identified with CBM resources to determine if viable quantities of CBM exist to replace diesel as their primary fuel source. A final report will be prepared for each community that will determine the project's economic feasibility, identify the quality and quantity of the CBM resource and implementation options. The final report will include well costs, the cost to retrofit existing equipment and the cost to integrate into their distribution system. Our premise is to test these technologies on the road system in the controlled and cost effective environment of Palmer Alaska. Once these technologies are proven, we will take them off the road to rural Alaska communities and start solving their energy crisis. A unique feature of our Component 1 proposal is that FOG will repay the State its investment to complete the Kircher Well when commercially viable quantities of CBM gas are produced. The payback is proposed to take place over a 20 year term at a favorable interest rate. Commercial and private funding has been difficult for Fowler Oil and Gas Co. to obtain due to the non -collateral based nature of his project. It is our belief FOG's advanced drilling technology is the linchpin developing CBM resources in rural Alaska. It cannot happen without FOG's project. FOG is committed to proving his technology and applying it in rural Alaska. We also realize that FOG may benefit in addition to the scope of our proposal. Therefore, we feel it is proper to reimburse the State of Alaska for Component 1 of our proposal. This is a win -win situation for the State, rural Alaska communities in need of reasonable priced energy, and FOG. One must also consider the positive impact to the citizens of Alaska as the introduction of CBM as an energy alternative to diesel fuel. Clean, Efflclent Power... Now AGE's team is a group of passionate, long time Alaskans who have come together to foster the development of alternative and renewable energy systems in Alaska with a focus on resolving rural Alaska's high cost of energy. AGE is certified by FERC to operate CHP systems. FOG is Alaskan owned, and its technology is cutting edge. FOG's technology has direct application to rural Alaska's sensitive environment. UAA will provide engineering, environmental and socio-economic support and provide education opportunities to students and interns. Other consultants include Van Boerum and Frank Associates, Kansas Geological Surveys, Scientific Drilling and Baker Hughes/Centrilift all are recognized experts in their fields. Together we can move this project forward quickly with construction, drilling, coring and testing activities commencing in the spring of 2009. We look forward to working with AEA on this project. Please contact me at 907-746-1815 should you have any questions or require additional information. Sincerely, Robert Gross Vice President Operations Alaska Green Energy, LLC Clean, Efficient Pourer... Now