HomeMy WebLinkAboutYakutat Power Wood Gasification Biomass Project AppALASKA Renewable Energy Fund
ENERGY AUTHORITY Grant Application
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
GrantApp.doc
Application form in MS Word that includes an outline of
Form
information required to submit a complete application.
Applicants should use the form to assure all information is
provided and attach additional information as required.
Application Cost
Costworksheet.doc
Summary of Cost information that should be addressed
Worksheet
applicants in preparing their application.
Grant Budget
GrantBudget.xls
_by
A detailed grant budget that includes a breakdown of
Form
costs by task and a summary of funds available and
requested to complete the work for which funds are being
requested.
Grant Budget
GrantBudgetlnstr.pdf
Instructions for completing the above grant budget form.
Form Instructions
• 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.
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SECTION I —APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Yaku At Power
Type of Entity:
Certificated Electric utility
Mailing Address
Physical Address
Yakutat Power
PO Box 129
Same
Yakutat, Alaska 99689
Telephone
Fax
Email
1.1 APPLICANT POINT OF CONTACT
Name
Title
Scott Newlun
General Manager
Mailing Address
Yakutat Power
PO Box 129
Yakutat, Alaska 99689
Telephone
Fax
Email
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)
X
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
A governmental entity (which includes tribal councils and housing authorities);
Fe--sl
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
or
No
collaborative grouping, a formal approval from each participant's governing
_94-
authority is necessary. (Indicate Yes or No in the box )
11.1 As an applicant, we have administrative and financial management systems and
follow procurement standards that comply with the standards set forth in the grant
or
No
agreement.
Eg-
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
or
No
application)
SECTION I — APPLICANT INFORMATION
Name (Name of utility, /PP, or government entity submitting proposal)
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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 Assessrmentl'
Feasibility Analysis/Conceptual Design; Final Designand Permitting; andlor Construction) as
well as the kind of renewable energy you intend to use. Refer to Section' 1.5 of RFA.
We are proposing for Final Design and Permitting (Phase III) and Construction (Phase IV) of a wood
gasification biomass system to reduce diesel fuel consumption of the existing Yakutat Power plant. This
project will use locally available biomass (wood) to offset the diesel fuel consumption of a diesel genset.
The project will take place in phases to provide adequate time to test, and possibly troubleshoot the
technology. Phase III will include a biomass resource selection for a small scale pilot project rated at 75
kW. The proposed technology will be a "pre -commercial" wood gasification and diesel engine generation
package developed by Community Power Corp (CPC), called the "Biomax 75." While the Biomax
package design has already been developed by CPC, this phase of the project will include:
• design an effective wood storage and handling system in Yakutat
• complete environmental permitting
• integrate the Biomax 75 electrical output into the Yakutat Power grid
• work with the local forestry service and native corporation to identify and select the wood
biomass resource
The next step will be to install the Biomax 75, interface it with the wood storage and handling system,
and perform a series of load tests prior to connecting to the electric grid. Once connected to the grid, the
system will run for an extended period of time (up to 8,000 hours) at a combination of steady state and
variable loads. After this time, the diesel engine will be torn down and inspected. Subject to the test
engine passing inspection, the next step in the project will be to integrate the wood gasification system
into one of the existing power plant electronically controlled CAT gensets. This phase will also include
doubling the wood gasification plant output to provide the equivalent fuel necessary to generate up to 150
kW. This genset will also operate for up to 8,000 hours using the wood gasification fuel, prior to
undergoing a rigorous inspection. Subject to successful completion of inspection, the final step will be to
increase the wood gasification capacity to 450 kW.
The Yakutat power plant is an existing facility in operation prior to August 20, 2008. The proposed wood
gasification project is a new project that is not in operation.
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.
Yakutat Power is located in Yakutat, Alaska. The City and Borough of Yakutat has a population of 631,
and is located at the mouth of Yakutat Bay along the Gulf of Alaska, 225 miles northwest of Juneau and
220 miles southeast of Cordova. Yakutat receives monthly barge service during the winter and more
frequent service during summer. Yakutat is equipped with two jet -certified runways and receives jet
service daily. The U.S. Forest Service and the National Park Service have offices in Yakutat. This project
will convert readily available biomass to a producer gas (wood gasification) that will be used to reduce
diesel fuel consumption at the Yakutat Power plant. The Biomax 75 is based on proven technology with
recent additional improvements for use in cold weather climates. Direct beneficiaries of this project
include all Yakutat Power electric service customers. Participants in the project include Yakutat Power,
the City and Borough of Yakutat, the U.S. Forestry Service, National Park Service, and Community
Power Corp — the Biomax 75 developer.
Yakutat Power will be the Grantee under the Renewable Energy Fund grant. Yakutat Power has teamed
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up with the engineering firm of Alaska Energy and Engineering, Inc. (AE&E) to provide design,
permitting, and system integration and construction management. AE&E has a long history of successful
energy -related projects throughout Alaska, and has worked with Yakutat Power on several energy -related
projects dating back to 1991.
The estimated cost of construction for all four phases is $3,394,000. Of this amount, Yakutat Power will
provide a project match as a contribution in aid of construction in the amount of $210,000. The balance
requested for this project from the Renewable Energy Grant Fund is $3,184,000.
There are a variety of sources of capital that may be available for this project, including Department of
Agriculture, Rural Utilities Service grants and loans, Denali Commission funding, private financing and
commercial loans. However, due to the excellent potential for this technology to have widespread
application in many parts of Alaska, and the extended proof -of -concept test period required to document
the validity of this technology, Yakutat Power is requesting full funding from the Renewable Energy
Fund grant program so that we may proceed immediately with this project.
Yakutat Power Wood Gasification Budget
DESIGN / PERMITTING I TESTING
$1,305,000
CAT INTEGRATION
$850,000
COMMERCIALIZATION
$705,000
CONSTRUCTION SUB -TOTAL
$2,860,000
DESIGN AND CONSTRUCTION ADMIN.
$108,000
CONSTRUCTION MANAGEMENT
$100,000
PROJECT SUB -TOTAL
$3,068,000
LOCAL MATCH FUNDS
$-240,000
GRANT REQUEST SUB -TOTAL
2,828,000
CONTINGENCY @ 20%
$565,600
TOTAL GRANT REQUEST
$3,393,600
TOTAL LOCAL MATCH FUNDS note 1
$240,000
TOTAL PROJECT COST
$3,633,600
Note 1: In addition to the cash match above, Yakutat Power is also providing a CAT 3508E
genset for use in the 3rd step of the project
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.
Financial/economic benefits
The financial benefits to the community of Yakutat are a combination of a reduction in the cost of
electricity and the creation of jobs to harvest and supply the wood fuel. Initial diesel fuel savings during
the first three years of development and testing total only a modest I85,000-galIons. However, the
infusion of cash into the community to harvest the wood during this timeframe is estimated at $599,000,
based on an assumed cost of $200/cord. In year 4, once the plant is fully operational and operating at 450
M the fuel savings increase to 250,000-gallons/year and earned income for wood harvesting increases to
$675,000/year.
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The economic benefit of a 250,000-gallon fuel reduction at today's fuel price of $4.71/gallon equates to
over $1 million in fuel savings.
Other benefits to Alaskan public ...
The most significant benefit to the Alaska public will be the testing and development of a viable fuel
substitution technology, which may substantially reduce the cost of power in other remote areas of
Alaska, as well as provide productive employment for those who provide the wood fuel.
2.5 PROJECT COST AND BENEFIT SUMARY (Year'4, with 100% Grant Funds)
Include a summary of your project's total costs and benefits below.
2.5.1 Total Project Cost
(including" estimates through construction.
$3,633,600
2.5.2 Grant Funds Requested in this application.
$3,393,600
2.5.3 Other Funds to be provided (Project match)
$ 240,000
2.5.4 Total Grant Costs (sum of 2.6.2 and 2.5.3) '
$3,633,600
2.5.5 Estimated Benefit (Savings)
$ 584,000
2.SA 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.)
Refer to above paragraph
Yakutat Power will be the single point of contact and will execute all grant, contractual and
administrative responsibilities. AE&E will provide all interface design, permitting, system integration,
and construction management. Community Power Corp will provide the Biomax 75 wood gasifier plant.
Scott Newlun, Yakutat General Manager, will be the Grant Manager. He will be the single point of
contact with AEA and will execute all grant, contractual and administrative responsibilities. Mr. Newlin
has 20 years of experience in the electric power generation field. He is skilled in tracking grants,
communications, and in his ability to deal smoothly and professionally with executive officers, upper
management, employees, vendors, and customers in day-to-day and occasionally adverse situations.
Steven J. Stassel, P.E., AE&E president, will serve as the Project Manager. He will work with the
Grant Manager to commit essential engineering disciplines to ensure a successful project. He will
establish specific man hour and reimbursable budgets, and schedule the necessary technical staff. He will
track specific contractual deliverables against the schedule to ensure adequate resources are available to
meet critical milestones. He will analyze all relevant issues such as available shipping options, permitting
and site control issues, and procurement requirements. Drawing on the expertise of our team, he will
assign specific project tasks to responsible team members. Mr. Stassel will oversee all technical work and
coordinate the efforts of our team to ensure the efficient and cost effective production of project designs.
He will develop a realistic project schedule to address critical issues in proper sequence to minimize cost
and maximize construction resources.
Mr. Stassel will be directly responsible for the quality of all work produced by our team. He will oversee
and review all critical tasks and provide input and support on all significant design issues. He will ensure
that design review comments from the Authority and Yakutat Power are adequately addressed and
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incorporated into final design documents, and he will manage the logistics of construction support. His
working relationship with Authority staff and Yakutat Power dates to the early 1990s. As president of
AE&E, Mr. Stassel has the authority to assign the technical personnel and resources necessary to
successfully complete this project.
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.)
SELECTION
ORDER BIOMAX 75 W1
GENSET
PREP WOOD STORAGE
BIOMAX 75
• • PROJECT
...�........-
INSTALL 2"DBIOMAX AND
INTO CAT
INSPECTIONINTEGRATE
TEARDOWN AND
GO / NO GO DECISION
MS-TALLI INTEGRATE/
STARTUP
■■■■■■■■■■■■■■®.
FINAL TESTING
.............MW®
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Project milestones (see above table for details of components and dates) include:
• Design, NEPA Permitting, Resource Selection
o A reconnaissance level study has been completed and the CPC Biomax 75 technology
selected. Design, NEPA project level permitting, and resource selection (Phase III) will
occur during calendar year 2009.
• Pilot Project Testing
o Phase IV pilot testing of the Biomax 75 will take place during the 4 quarters of 2010.
Upon completion of testing, engine tear down and inspection, a Go/No Go decision will
be made.
• CAT Integration
o An additional 75 kW of capacity will be added and the Biomax system will be integrated
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into the existing CAT 3508B and tested during the 4 quarters of 2011. Upon successful
completion of testing 150 kW of Biomax capacity, engine tear down and inspection, a
Go/No Go decision will be made regarding proceeding to the final phase.
• Commercialization
o An additional 300 kW of capacity will be integrated into the existing CAT 3508B. Final
Commercialization Testing of the 450 kW Biomax will take place during the last 2
quarters of 2012.
3.4Project 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
you may use fo
Yakutat Power has teamed with the engineering firm of Alaska Energy and Engineering, Inc. for system
integration, design, permitting, and construction management of the project. As described above, CPC
will provide the Biomax equipment and will be involved with the installation, startup, troubleshooting,
and monitoring of the system. The project will be constructed using primarily utility and local force
account labor. An experienced welder / foreman will perform all welding and piping work, and will
oversee local labor. Locally available contractors will be used for the earthwork and installation of the
Biomax modules. All major purchases and construction contracts will be in accordance with Yakutat
Power procurement policies.
Our proposed organization chart (below) for this project introduces and identifies key members of our
team and shows the lines of authority. Each engineering discipline is led by a professional engineer
registered in the State of Alaska. All engineering documents will be stamped by Alaska registered
engineers.
Refer to Appendix A for resumes of key personnel.
ART ULLEY/CPC
LEE BENSON/USE
CONSTRUCTION MANAGEMENT
AE&E
AEA PROGRAM MANAGER
YAKUTAT POWER GRANT MANAGER
SCOTT NEWLUN
a
DESIGN / PERMITTING
AE&E
AEA CONTRACTS MANAGER
TESTING / INSPECTION
MARSH CREEK / NC POWER
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
Alaska Energy and Engineering is in communication with AEA staff on almost a daily basis. The
Authority Project Manager will be kept up to date of the heat recovery project status by periodic email
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and/or verbal status reports, in addition to written quarterly reports that will be submitted by the Yakutat
Power Grant Manager. Periodic reports will provide general information regarding project status and any
unforeseen circumstances that need to be resolved. The quarterly Grant Manager reports will include
specific information on project completion status vs. project schedule; project labor reports — including
hours, rates and costs; and current project expenditures relative to budgeted project costs.
AE&E has provided design and construction support services on over 80 energy infrastructure -related
projects throughout Alaska over the past I S years. Our long-term working relationship with the Authority
assures well -tested monitoring methods and seamless channels of communication.
3.6 Project Risk
Discuss potential problems and how you would address them.
There is an element of risk in any rural Alaska construction project; however, the risk associated with this
project is well managed. A highly competent team of professionals has been assembled with the skills and
motivation necessary to see this project through to successful completion. The project has been devised to
proceed in distinct phases, with carefully planned go/no go decision intervals. In the unlikely event that
the pilot project is unsuccessful, or Yakutat Power changes its direction or power production needs, the
latter phases of the project may be postponed or cancelled with little additional risk.
To minimize risk and maximize the outcome of this project, Yakutat Power is enlisting the services of
Marsh Creek and NC Power Systems to perform the engine teardown and inspections. These two firms
will also provide technical assistance on an as -needed basis for troubleshooting and system integration.
Much of the vast land that surrounds Yakutat and in the outlying areas is managed by the U.S. Forest
Service and Yak -Tat Kwaan corporation. Initial information indicates sufficient available biomass to
ensure sustainability of the wood gasification project for many years. The available resource will be
further evaluated and quantified during step I of this project. In addition to native wood biomass, the
Biomax is capable of burning municipal waste. The existing Yakutat waste stream will also be evaluated
to determine its applicability for this project
Yakutat Power has evaluated several biomass options and determined the Biomax to be the most effective
method of converting biomass to diesel fuel savings, refer to Appendix F for technical data.
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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.
The Yakutat Power plant generation equipment consists of four diesel generator sets (gensets) with a total
generation capacity of 4,000 kW. The generation system is a 4160-volt Wye three-phase system. All
generators operate at 1200 RPM.
• Gen -set #1 anew CAT 3516B rated at 1322 kW
• Gen -set #2 is a CAT 3512B rated at 880 kW.
• Gen -set #3 is a CAT 3508B rated at 600 kW.
• Gen -set #4 is a CAT 3516 rated at 1200 kW.
The new 3516B is the primary genset. The 3512B and 3508B gensets operate on an as needed when the
electric load exceeds the 3516B capacity, and when the 3516B is down for maintenance. The 3516 is
nearing the end of its useful life and is used sparingly.
The power plant has two separate cooling systems both with heat recovery capability. The 3516B and
3512B are on one common cooling loop, and the 3508B and the 3516 are on a separate cooling loop. Both
cooling loops are 5-inch diameter welded steel piping with flanged butterfly valves, an AMOT valve, plate
heat exchanger and a single radiator.
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.
Fuel is delivered to Yakutat via barge year round and stored in bulk at the Delta Western tank farm. Fuel
is delivered by truck to Yakutat Power, and local businesses and residents.
A major investment was made in 2007 to replace an antiquated CAT 3412 with the new 351613, to increase
the plants rated kW capacity A heat recovery system was installed in the early 1990s and provides heat to
the Yakutat school complex nearby. Virtually all heating of the school complex is provided by the
Yakutat power plant heat recovery system.
The displacement of diesel fuel with biomass will reduce the total fuel throughput of the Delta Western
fuel terminal. It is not anticipated that the reduction in Yakutat Power's diesel fuel use will have much of
an impact on Delta Western. As indicated above, the wood biomass resource will be further evaluated at
the first step of this project to ensure long term sustainability of the resource and the project.
Yakutat Power uses approximately 400,000 gallons/year of diesel fuel to provide 6,600,000 kWh of
electricity to customers in the city and borough of Yakutat. Starting in year 4 of the project, the Biomax
system will provide up to 250,000 gallons of this diesel demand. The available jacket water heat from the
existing heat recovery system is not expected to be affected by this project.
When the biomass plant is fully operational, fuel savings would be about 250,000-gallons/year. At todays
fuel price of $4.71/gallon that equates to over $1 million in fuel savings. In addition, earned income for
wood harvesting would add $675,000/year into the community.
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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
An evaluation was made of three different wood biomass technologies, two of the technologies were
dismissed due to their poor efficiency, and the Biomax wood gasification selected for further analysis.
Capital, operating and maintenance costs, and fuel efficiency of the Biomax system has been evaluated
and compared against the existing diesel fueled generation system. The evaluation revealed that the
Biomax system with a rated capacity of 450 kW provides substantial economic benefits compared to the
existing status quo.
Refer to Appendix F for technical data on the Biomax system
The project site is located adjacent to the existing power plant on land owned by the City and Borough of
Yakutat. The wood biomass is located on U.S. Forest Service and Native Corporation lands. Both the
Forest Service and Yak -Tat Kwaan are in support of this project.
The Forest Service has taken the lead on the previously mentioned reconnaissance level study, and is
represented on our team by District Ranger Lee Benson.
The permitting requirements for this project are not anticipated to be onerous. A NEPA project level
environmental review will be performed to demonstrate and confirm the project will not have a negative
impact to the human environment. There are no wetlands in the project area, the project will be located
within a previously disturbed area adjacent to the existing power plant, an evaluation will be made to
ensure there are no known archaeological or historic properties within the area of potential effect, and that
no birds or mammals listed as endangered or threatened that will be impacted by the project. It is
anticipated the NEPA environmental review will be completed during the third quarter of 2009.
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AE&E has provided NEPA project level environmental permitting on over 40 energy related projects
throughout Alaska during the past 10 years. Our understanding of the NEPA process and potential
environmental impacts of our projects allows us to mitigate possible negative affects early in the design
stage. The U.S. Forest Service brings to our team extensive knowledge with respect to permitting issues
associated with the forest wood resources. As indicated in the above section, Environmental permitting is
anticipated to be complete by the end 2009.
4.4 'Proposed New System Costs (TotalEstimated 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
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 cost information provided in this application is based on product cost information provided by CPC,
the Biomax developer, and AE&E's 15-years of successfully designing and constructing energy related
projects throughout Alaska. Our construction management experience helps keep us abreast of ever
increasing construction costs.
Total anticipated project cost:
$3,633,600
Design / Permitting / Resource Selection:
$ 249,600
Pilot Testing:
$1,550,000
CAT Integration:
$1,004,000
Commercialization:
$ 830,000
Requested grant funding:
$3,393,600
Applicant matching funds —
loans, capital contributions, in -kind:
$ 240,000
Identification of other funding sources:
Operating Budget
Projected capital cost of renewable energy system:
$3,633,600
Projected development cost of renewable energy system: $1,550,000
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4.4.2 Project Operating and Maintenance Casts
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
• Reguested grant funding
The operating and maintenance costs for the Biomax system is relatively minimal. Anticipated costs for
O&M are $80,000/year
The parasitic losses of the Biomax system are approximately 9 kW for 30-minutes on system startup, and
reduces to 3 to 4 kW on steady state operation.
The application includes funding for the teardown and inspection of the Biomax 75 test diesel engine, as
well as ongoing systems improvements and troubleshooting. All other operating costs will be provided by
Yakutat Power.
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
Since Yakutat Power is both the electric utility and project operator, there will be no power purchase
agreement. The bus bar cost for electricity from this project in year 4 is estimated to be $.274/kWh,
compared to a diesel fuel bus bar cost of $.385/kWh.
Refer to cost benefit analysis in Appendix C for economic and financial information.
4.44 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.
Refer to attached Cost Worksheet in Appendix B.
4.45 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.
Yakutat Power will be owner of the biomass wood gasification system. Yakutat Power is a sustainable
electric utility that is certificated by the Regulatory Commission of Alaska. Yakutat Power will use its
utility staff and assets to maintain, operate, and sustain the wood gasification system.
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4.46 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
The Alaska Mental Health Lands Trust, in cooperation with the City and Borough of Yakutat, prepared
and issues August 22, 2008 a draft Wood Fuel Generation Plant Reconnaissance Level study. This report
is not final, but a copy of the cover page and table of contents is included in Appendix F. It is the desire of
Yakutat Power to furnish the final study to AEA as an addendum to the Application, upon publication of
the final study. The study evaluated several types of wood biomass projects and determined that a wood
gasification project in combination with a reciprocating internal combustion technology is the most
appropriate technology for Yakutat. The study also addresses information on wood fuel requirements and
resource availability.
Yakutat Power, building on the information in the draft study, approached several technology vendors in
search of an appropriate, near -commercially available wood gasifier product. Community Power Corp was
selected as being the most applicable technology vendor for the Yakutat project.
The Cost -Benefit analysis included in Appendix C provides detailed information on the estimated costs
and benefits of the project.
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 noneconomic public benefits to Alaskans over the lifetime of the oroiect
Refer to the Cost -Benefit analysis in Appendix C for fuel displacement, anticipated revenues, and
estimated biomass and other resources needed to operate the facility.
There are no known tax credits or other subsidies for a project of this type.
Non -economic benefits to Alaskans include the reduction in diesel exhaust emissions realized by burning
wood biomass, as well as the improved long term viability of Yakutat Power.
SECTION6 — 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 GrantBud et.xls
Provide a narrative summary regarding funding sources and your financial commitment to the project.
Total estimated project cost is $3,633,600. The grant request is for $3,393,600. Yakutat Power will
provide a match in the amount of $240,000 in labor and $160,935 in capital equipment (3508B) for
testing. Refer to Grant Budget worksheet in Appendix C
AEA 09-004 Grant Application Page 13 of 14 9/3/2008
LK + Renewable Energy Fund
FNERGYAUTHORFTY Grant Application
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
Signature
Title
Date
AEA 09-004 Grant Application Page of 9/3/2008
4No0l_1
PROJECT RESUMES
COST WORKSHEET
/Z-7-) ALASKA Renewable EnergyFund
'ENERGY AUTHORITY
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. 5550 Tons of Wood / Year (wet)
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 4 Gensets
ii. Rated capacity of generators/boilers/other 4000 kW
iii. Generator/boilers/other type Diesel
iv. Age of generators/boilers/other 1990's to 2007
v. Efficiency of generators/boilers/other 14.6 kWh / Gallon
b) ;Annual O&M cost
i. Annual O&M cost for labor $655,148
ii. Annual O&M cost for non -labor $570,459
c) Annual electricity production and fuel usage' (fill in as applicable)
i. Electricity [kWh] 6,600,000 kWh
ii. Fuel usage (if system is part of the Railbelt grid, leave this section r blank
Diesel [gal] 400,000 gallons
Other -
iii. Peak Load 1328 kW
iv. Average Load 760 kW
v. Minimum Load 550 kW +/-
vi. Efficiency 14.6 kWh / Gallon
vii. Future trends Up to 250,000 Gallons / Year Reduction in Diesel Fuel Use
d) Annual heating fuel usage (fill in as applicable)
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 -
RFA AEA 09-004 Application Cost Worksheet Page 1
ALASKA Renewable Energy Fund
&`_1
� ENERGY AUTHORITY g
3. Proposed System Design
a) installed capacity 450 kW
b) 'Annual renewable electricity generation
i. Diesel [gal or MMBtu] 19000 Gallon
ii. Electricity [kWh]
iii. Propane [gal or
iv. Coal [tons or M
v. Wood [cords, green tans, dry tons]
vi. Other
MMBtu]
MBtu]
4. Project Cost
a) ;Total capital cost
of new system
b) Development cost
c) Annual O&M cost of news system
d) Annual fuel cost
5. Project Benefits
a) ..Amount of fuel displaced for
i. Electricity` 250,000 Gallons.
ii. Heat 19,000 Gallons
iii. Transportation
b) Price of displaced fuel
c) Other economic benefits
'..
d) Amount of Rlaska'public`benefts
6. Power PurchaselSales Price
3,745,000 kWh
$80,000
$3,394,000
$1,72a,000
$857,000 (year 4)
$4.71 /Gallon (Weighted Average)
$857,000 /Year (year 4) local Payroll for Wood
Harvesting
Test Bed Facility for Statewide Applicability
a) Price for power p�archaselsale .229 /kWh (at Bus Bar in Year 4)
s
7. Project Analysi
a) 'Basic Economic Analysis
ratio 1.32 (Refer to CIB Analysis)
.:
Project benefit/cost
10.5 Years Simple Pay Back
RFA AEA 09-004 Application Cost Worksheet Page 2
APPENDIX C
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Apprendix C
Wood Fuel Generation Alternatives Preliminary Cost Estimates
($ x 1000)
Cumulative
Wood Fuel
Total Cost
Total Cost
Development Handling
Alaska factor
Including
Including
Hardware
Costs Equipment
Total
at 20%
Alaska factor
Alaska factor
Year
Phase
Note 1
2010
1,11 775
358 300
1433.3
287
1720
1720
2011
III 600
170
770
154
924
2644
2012
IV 550
75
625
125
750
3394
Total
1925
603.3
2528.3
506
3394
Note 1: Development Costs include
$208 for design, permitting, construction management, and system integr;
Appendix E
Personnel Costs -Gasifier
2008
Wages and
BenefitsNr
Total
Generation Assistants-Maint & Wood Fuel Handling
1
40000
40000
Total for 2010
1
80000
80000
Total for 2011
1.5
82800
124200
Total for 2012
2
85698
171396
Appendix F
Finance Plan — Wood Fuel Steam Boiler/Turbine
Interest Rate 0%
Maturity-yrs 20
Grant-% of Cost of Plant 0%
Cash Requirement
3394
R&R Fund @ 1 % of Plant
34
Financing Cost @ 2% of Total Loan
74
1 yr Debt Service
184
Total Loan
3686
Debt Service for $1 $0.050000
Beg Loan
Principal
End Loan
Debt
Year
Balance
Interest
Payment
Balance
Service
2010
1720
0
1720
0
2011
2644
0
2644
0
2012
3686
0
184
3502
184
2013
3502
0
184
3317
184
2014
3317
0
184
3133
184
2015
3133
0
184
2949
184
2016
2949
0
184
2764
184
2017
2764
0
184
2580
184
2018
2580
0
184
2396
184
2019
2396
0
184
2212
184
2020
2212
0
184
2027
184
2021
2027
0
184
1843
184
2022
1843
0
184
1659
184
2023
1659
0
184
1474
184
2024
1474
0
184
1290
184
2025
1290
0
184
1106
184
2026
1106
0
184
921
184
2027
921
0
184
737
184
2028
737
0
184
553
184
2029
553
0
184
369
184
2030
369
0
184
184
184
2031
184
0
184
0
184
Bus Bar Cost of Energy - Nominal Cents/KWH
90.0
80.0
70.0
60.0
50.0
40.0
Gasifier
30.0 Diesel
20.0
10.0
0.0
O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N
Bus Bar Cost of Energy - Nominal Cents/KWH
Year
Gasifier
Diesel
2010
50.2
34.2
2011
35.8
35.6
2012
43.1
37.0
2013
27.4
38.5
2014
28.2
40.0
2015
29.0
41.6
2016
29.9
43.3
2017
30.8
45.0
2018
31.7
46.8
2019
32.6
48.7
2020
33.6
50.6
2021
34.6
52.6
2022
35.7
54.7
2023
36.8
56.9
2024
37.9
59.2
2025
39.0
61.6
2026
40.2
64.0
2027
41.5
66.6
2028
42.8
69.3
2029
44.1
72.0
2030
45.5
74.9
2031
46.9
77.9
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YAKU-unit 2&3-value EST.xls
Yakutat Power Inc.
Estimated Value of Units 2 & 3
Using straight line comparision of purchase cost multipled by run time hours/useful rated life hours
Unit #2: 3512B
Engine purchase cost ($1999): $
196,375
Generator purchase cost ($1999):
used gen
total cost (genset): $
196,375
current hours:
35182
useful life;:
100000
Remaining Value: $
127,286
Replacement cost ($2006): $ 396,413
(escallation @ 5%/year) $ 40,632
Est'd Replacement cost ($2008): $ 437,045
Unit #3: 3508B
Engine purchase cost ($1999):
$ 126,855
Generator purchase cost ($1999):
$ 48,944
total cost (genset):
$ 175,799
current hours:
8455
useful life;:
Remaining Value:
Replacement cost ($2004):
$ 226,855
(escallation @ 5%/year)
$ 48,889
Est'd Replacement cost ($2008):
$ 275,744
1 P^O"<1tA-� tA,1!6
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YAKU-unit 2&3-value EST.xls 10/8/2008
ELECTRONIC COPY OF APPLICATION
(REFER TO ENCLOSED DISC)
l:1»_:4zID] :V
RESOLUTION & SUPPORTING LETTERS
RESOLUTION 80-120
A RESOLUTION REGARDING THE FACT THAT YAKUTAT'S HIGH FUEL COSTS ARE
CAUSING ELECTRICAL RATES TO BECOME UNBEARABLE AND ARE CAUSING
HARDSHIPS IN THE LOCAL ECONOMY. AND IT IS OF UTMOST IMPORTANCE THAT AN
ALTERNATIVE SOURCE OF ELECTRICAL ENERGY NEEDS TO BE DEVELOPED NOT
ONLY FOR OUR COMMUNITY BUT FOR MANY RURAL COMMUNITIES THROUGHOUT
THE STATE. WE AUTHORIZE YAKUTAT POWER, OUR POWER PLANT, AND IT'S STAFF
TO PERSUE GRANTS FROM ANY FUNDING SOURCE TO DEVELOP ANY ALTERNATIVE
POWER SOURCE, PERFERABLY RENEWABLE AND ECO-FRIENDLY. WITH THE GOAL
THAT IT IS OPERATED AS EFFICIENTLY AS POSSIBLE, UTILIZING ANY TECHNOLOGY
AVAILABLE TO ACCOMPLISH THIS GOAL. ALSO TO SET A STANDARD THAT CAN BE
SHARED WITH OTHER COMMUNITIES AND UTILITIES WHO ARE ALSO IN NEED.
WHEREAS, the City and Borough of Yakutat (CBY) is a municipal corporation incorporated
and organized under the laws of the State of Alaska; and
WHEREAS, Yakutat Power is operated by CBY as a wholly owned enterprise fund; and
WHEREAS, Yakutat Power is authorized to provide electric power to the community of
Yakutat under Certificate of Public Convenience and Necessity, CPC&N No.53, issued by the
Regulatory Commission of Alaska; and
WHEREAS, we find that diesel generated electricity is too expensive for our Citizens due to the high
costs of fuel; and,
WHEREAS, it is recognized that the other infrastructure in the community is dependent on the electrical
utility to continue to function in a cost effective manner; and
WHEREAS, the Alaska Energy Authority has issued a request for applications for the Renewable Energy
Grant Program authorized under HB 152 for Renewable Energy Projects; and
WHEREAS, the City and Borough of Yakutat and YP Has identified wood gasification as a viable
technology to reduce the community's reliance on diesel fuel; and
WHEREAS, on behalf of The City and Borough of Yakutat, we authorize Yakutat Power management
and staff to pursue any grants that could lead to the improved efficiencies of our system, and or diesel
generation in general from any available funding source,
WHEREAS, The Community of Yakutat, and this body, rank this project as one of the highest priorities
in the comprehensive development of the community; and YP/CBY are in good standing with respect to
their existing credit and Federal Tax Obligations,
NOW THEREFORE BE IT RESOLVED, that it is the determination of this body to pursue a Renewable
Energy Grant for a wood gasification project in Yakutat to reduce dependency of diesel fuel, and to
continue to upgrade our electrical system to a modern, safe, and more efficient standard as determined by
the Alaska Energy Authority. And to authorize and empower the General Manager of Yakutat Power,
(Scott Newlun) to submit to AEA on behalf of the community an application for funding under the
Renewable Energy Grant Program AEA-09-004, and to Act as the lead contact in these projects.
SPONSORED BY S. RYMAN, BOROUGH MANAGER
RESOLUTION 08-120
Page 1 of 2
--7 1\(1—
Passed on this Z- day of OtC- t')008, by the action of the members of the City and Borough of
Yakutat Assembly.
DAVID STONE, MAYOR
ATTEST: 10 OtOU434
v 0
4A
OP. Air
Cat Bremner, Boroigy, Cle-rkljl�'t%�
SPONSORED BY S- RYMAN, BOROUGH MANAGER
RESOLUTION 08-120
Page 2 of 2
I TIK J'TAT POWER
PO Box 129 Yakutat, AK 99689
Phone: (907) 784-3242
Fax: (907) 784-3922
Email: yakpower@ptialaska,net
October 8, 2008
Renewable Energy Grant Fund
Alaska Energy Authority
813 West Northern Lights Blvd.
Anchorage, AK 99503
Re: Yakutat Power— Renewable Energy Fund Grant Application —Letter of Commitment
Application Review Committee:
Yakutat Power is pleased to submit the attached application for a Renewable Energy Fund Grant for a
Wood Gasification Biomass Project, an eligible renewable energy project as defined under HB 152.
Yakutat Power is authorized by the Regulatory Commission of Alaska to provide power to the community
of Yakutat under Certificate of Public Convenience and Necessity, CPC&N No. 53.
The attached Application documents and describes the proposed Wood Gasification project. The total
estimated cost of design, permitting, construction, and development and testing is $3,634,000 The
estimated fuel savings as a result of this project is 36,000-gallons in the first year of testing, and up to
250,000-gallons/year starting in year 4. Yakutat Power commits to this project a cash Match of up to
$240,000 in direct labor costs (wages and benefits), and a Match of $210,000 in capital equipment and
maintenance costs.
Yakutat Power strives to keep electric costs as low a possible by maximizing operating efficiencies and
reducing operating costs. This project will provide a significant improvement toward meeting this
continued goal, and will greatly benefit the community of Yakutat.
Yakutat Power welcomes and fully supports this opportunity to work with the Alaska Energy Authority to
implement this innovative wood gasification project, and requests the Review Committee carefully review
the merits of this application.
We welcome your review and evaluation of our proposal, and look forward to
working with you on this project. If you have any questions about this project,
please feel free to contact me at (907784-3242
Sincerely,
J�/6"e_ 4
Scott Newlun
General Manager
October 1, 2008
Dear Madam or Sir:
The Yak -Tat Kwaan, Inc. is pleased to support Yakutat Power's wood fuelled power
generation proposal for the Alaska Energy Authority Renewable Energy Grant Round #1
to meet the community's needs for affordable energy. As a business of this community I
think the proposed project will lessen our dependence upon the high cost of generating
electricity with diesel. Furthermore, the project would assist the State of Alaska in
proving wood fuel electrical generation technology.
Yak -Tat Kwaan, Inc. and others fully share priorities in exploring renewable energy
resources, such as biomass, and lowering energy costs. Yakutat Power's proposed
activities are critical to our community's economic development and well-being. Yak -Tat
Kwaan, Inc. fully endorses the Yakutat Power proposal in its efforts to lower our
electrical costs utilizing a plentiful renewable resource for electrical generation.
Sincerely,
,ja7- n
Cynthia Petersen
Interim General Manager
YAK -TAT KWAAN, INC. • R O. BOX 416 • YAKUTAT, ALASKA 99689 • 907-784-3335 or 784-3488 • FAX 907-784-3622
United States Forest Alaska Region P.O. Box 327
Department of Service Tongass National Forest Yakutat, AK 99689-0327
Agriculture Yakutat Ranger District Phone: (907) 784-3359
Fax: (907) 784-3457
October 4, 2008
Dear Madam or Sir:
The US Forest Service Yakutat Ranger District is pleased to support Yakutat Power's wood -
fueled power generation proposal for the Alaska Energy Authority Renewable Energy Grant
Round #1 to meet the community's needs for affordable energy. Although biomass energy use
has skyrocketed, small biomass electrical generation technology is not yet a commercial off -the -
shelf product. However, this proposal will benefit many Alaska residents in proving small wood
fuel electrical generation technology for use in other villages.
As District Ranger, I have worked with the local alternative energy group, comprised of
concerned and proactive Yakutat residents examining power generation alternatives, in support
of this biomass project. Our district has about 24,000 acres available for harvest and pre -
commercial thinning for sustainable biomass power generation. This project's proposed
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I he USFS Yakutat Ranger District fully endorses the Yakutat Power proposal in its efforts to
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Sincerely,
LEE A. BENSON
District Ranger
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Caring for the Land and Serving People Printed on Recycled Paper
Y_,,`d,__UT,kT TLINGIT TRIBE
H .NF 0', .'rt 5.,8 :i a (I C 7� 7E4 26 95
October 1, 2008
Dear Madam or Sir:
The Yakutat Tlingit Tribe fully supports Yakutat Power's Alaska Energy Authority Renewable
Grant Round #I proposal supporting wood -fueled power generation. This grant opportunity is
ideal for addressing the community's needs for affordable energy.
The Yakutat Tlingit Tribe has a continuing working relationship with the City & Borough of
Yakutat (and many other local entities) in addressing community needs; affordable energy is one
of the highest priorities. We firmly believe the proposed project will lessen our dependence on
the high cost of oil to generate electricity, to boost and improve our local economy. Furthermore,
the project will assist the State of Alaska in proving wood -fuel electrical generation technology.
As the local tribal organization, we offer various general assistance programs to the community.
A large amount of the department's budget is for heating assistance and general assistance
programs which is distributed to clients to pay toward their electricity/fuel bills due to the high
energy -cost of living in Yakutat.
The Yakutat Tlingit Tribe commits to working with local partners in exploring renewable energy
resources, such as biomass, to lower energy costs. Yakutat Power's proposed activities are
critical to our community's economic development and well-being. The Yakutat Tlingit Tribe
fully supports Yakutat Power's efforts to lower our electrical costs utilizing a plentiful renewable
resource for electrical generation.
Sincerely,
Victoria L. Demmert
YTT Tribal President
TECHNICAL DATA
ANALYSIS - YAKUTAT WOOD FUEL GENERATION PLANT
DRAFT — JWTy kf F-/AIAL,
Prepared for:
Alaska Mental Health
Lands Trust
By: William A. Corbus
August 22, 2008
Table of Contents
Executive Summary
Scope of Analysis
Yakutat Power
The Concept
Conventional Steam Boiler/Turbine
Gasifier/Boiler/Steam. Reciprocating Engine
Gasifier/Gas Reciprocating Engine
Plasma Technology
Wood Fuel Issues
Wood Fuel Requirements
Capital Costs
Diesel Generation
Personnel Costs for Wood Fuel Generation
Financing
Economic Analysis
Other Considerations
Conclusion and Recommendation
Bibliography
Contacts
Appendixes
A - Wood Fuel Requirements
B - Diesel Engine Replacement Schedule
And Cost Estimate
C - Wood Fuel Generation Preliminary Cost
Estimates
D - Diesel Depreciation Schedule
E - Personnel Costs Wood Fuel Generation
F - Financing Schedule Wood Fuel Steam
Boiler/Turbine
G - Economic Analysis Diesel vs. Wood
Fuel Steam Boiler/Turbine
H - Economic Analysis - Diesel vs. Wood
Fuel Gasifier,/Boiler/Steam
Reciprocating Engine
I - Economic Analysis - Diesel vs. Wood
Fuel Gasifier/Gas Reciprocating
Engine
J - History of Southeast Alaskan Wood Fuel
Generation Plants
Alaska RFI --- Comments from
Community Power Corporation
Requested Information: The following list of questions should be addressed in your
response.
1) Renewable energy resources for the production of electricity (e.g., solar,
wind, geothermal, hydro, and biomass) are available throughout various
regions in Alaska. Many renewable energy technologies for electricity
production are also commercially available and economically viable under
the conditions in Alaska. Are there any technologies that would take priority
and what is necessary to move this portfolio of electric technologies forward
on a commercial basis in Alaska?
Diesel generation accounts for 94% of power production in the 181 rural Alaskan
communities that receive Power Cost Equalization assistancel. With diesel fuel
prices near an all-time high, new technology solutions should be considered that can
significantly reduce diesel fuel consumption.
One new, renewable technology that directly addresses the requirement to reduce
diesel fuel is small modular biopower, a technology that DOE was instrumental in
bringing to fruition. Locally available biomass can be converted to a renewable fuel
gas that will directly displace diesel fuel in a standard diesel genset. A unique aspect
of this "diesel fuel displacement" option is that the system can be retrofitted to one, or
more, existing diesel engines in Alaskan rural communities.
Attachment 1 is a brief description of Community Power Corporation's proprietary
BioMax modular biopower system. The BioMax is capable of combined heat and
power by delivering 50 kWe utility grade electricity and about 250,000 Btu/hr of
clean heat. The system shown in Attachment 1 is a stand-alone version with its own
genset whereas the best configuration for rural Alaskan deployment would be in a 40'
cold -weather ISO container and supplying renewable fuel gas to an existing diesel
generator.
It is important to realize that the problem in rural Alaska is with high diesel fuel costs,
not with the diesel gen-sets that are already on site, well understood, and highly
reliable.
Since rural Alaskan communities depend on diesel generators, a loss of power during
the winter would be extremely dangerous; therefore, it is not credible that a new
technology will completely displace the diesel engine until the reliability of the new
technology has been thoroughly proven. However, if a new technology could retrofit
with the existing gensets in a way that enhances energy security while also saving
1 http://www.aidea.org/aea/programsaltemativediesel.html
money, the barriers to incorporating this new technology will be significantly
lowered.
As shown in Attachment 1, CPC is currently developing a modular biopower system
for the US Army that converts 1,200 lbs/day of dry waste paper/cardboard (— 85% -
90%) and plastic (10% - 15%; utensils, cups, etc) from a mobile kitchen into a
renewable fuel gas which displaces diesel fuel in a 60 kW diesel engine. A diesel
engine is a compression ignition system (no spark plugs) and needs a small amount of
diesel fuel to act as a pilot fuel to ignite the diesel fuel and renewable fuel gas
mixture.
The following table is based on our Army system experience, and shows the potential
for direct diesel fuel displacement. The first line shows the baseline with no biomass
contribution. The second line shows that the system displaces about 64% of the
diesel fuel and saves about 66 gallons of diesel fuel per day.
Fuel Source for Electricity Diesel Fuel — Gal/Day
Engine Load Diesel Fuel Biomass Diesel Used Diesel Saved
57kW* 100% 0% 103.7 0
57kW* 36% 64% 37.7 66.0
* Operating at 34.1 % electrical energy efficiency
Due to the plastics in the above waste stream the renewable fuel gas had a Btu content
that was about 20% higher than we normally see from forest residues. The reason we
mention this paper and plastic waste stream is that many rural Alaskan villages may
be able to use modular biopower as a partial solution to their waste disposal problem
while simultaneously offsetting their energy bill.
The following two tables summarize the biomass needs and annual diesel fuel savings
in a rural community assuming:
1) Woodchips are used as the feedstock in table 1 and Cardboard and Plastic are
used in table 2
2) Modular biopower systems of two different capacities (Renewable fuel gas
volumes and biomass consumption per hour) are used to show the impact of size
on fuel savings.
a. 2,295 CuFt/hr (50 lbs/hr)
b. 6,180 CuFt/hr (135 lbs/hr)
3) 75% availability
4) Diesel at $4.50 per gallon
5) Recovery of 60% of the engine heat, and;
6) Heat is valued at $34.62 per million Btu (Diesel Fuel as the source).
7) De -rating of fuel value of woodchips by 20% compared to paper/plastics-based
feedstock.
Table 1: Woodchips as feedstock (sustainable in most communities*)
System
Dry Tons
Diesel Fuel
Value of Diesel
Value of Heat
Total
Size (Cuftthr)
Per Year
Saved (Gal/yr)
@ $4.50/gal
@ $34.62/MMBtu
Value
2,295
164
18,068
$ 81,304
$ 50,587
$ 131,891
6,180
442
48,643
$ 218,895
$ 136,196
$ 355,091
*A large number of diesel -powered communities in Alaska have sustainable supplies
of forest residues, because the surrounding forests are immense with many having
have large amounts of standing dead wood from beetle kill, and others having
standing dead wood from previous forest fires. In the case of the standing dead
wood, it can be used with little, or no, additional drying needed (<15% moisture
content required)
Table 2: Paper/cardboard and plastics as feedstock (if not sustainable at the rates
shown below, it could be mixed with forest residues which are sustainable)
System
Dry Tons
Diesel Fuel
Value of Diesel
Value of Heat
Total
Size (Cuft/hr)
Per Year
Saved (Gal/yr)
@ $4.50/gal
@ $34.62/MMBtu
Value
2,295
164
14,454
65,043
40,470
$ 105,513
6,180
442
38,915
175,116
108,957
$ 284,073
The following are some of the many benefits to the use of modular biopower in rural
Alaska:
1. By clearing forests, and using the biomass for electricity and heat, communities
can reduce the threat of wildfires, and can replant other desirable species to attract
beneficial animals, such as moose, that have been greatly reduced in numbers due
to spread of mono -culture forests.
2. Systems are containerized, easy to ship by barge, easy to install (and relocate if
necessary).
3. The retrofit package is essentially a sustainable, renewable fuel supply system that
integrates with one, or more, existing diesel engines.
4. Unlike wind and solar, biomass power generation can be dispatched any time of
day or night.
5. No permanent modifications are required to the engines. A manifold is applied to
the air intake of the diesel engine in order to feed the producer gas to the engine.
The manifold can be easily removed if required.
6. Retrofitting with existing diesel engines reduces total capital costs of the new
energy supply system, and builds around power generation hardware that is
familiar, typically already paid for, and that has a support structure in place.
7. If something were to interrupt the supply of renewable fuel gas, the diesel would
seamlessly revert back to 100% diesel fuel.
8. By displacing diesel fuel with local biomass, Communities in rural Alaska do not
have to purchase as much diesel fuel in advance of the rivers freezing up. This
can be a significant cash savings.
9. The producer gas is very clean, and has no detrimental impact on the diesel
engine.
10. Greenhouse gas emissions are reduced by burning less fossil fuel.
11. Anyone skilled in the operation and maintenance of a diesel engine is qualified to
operate and maintain the modular biopower system.
12. The waste heat from the gas cooling system can be used to dry biomass or to heat
spaces where biomass is stored during the winter.
As shown in Attachment 2 CPC is also developing a 2,295 Cu ftlhr, 50 kWe diesel
system for demonstration by the Alberta Research Council in Alberta., Canada. This
40' containerized system is designed for cold climates with heavy insulation, and the
genset installed inside.
2) As with renewable energy technologies for electricity production, renewable
energy technologies for heating applications within the rural/remote villages
in Alaska may be a viable alternative to current fossil fuel systems.
Renewable energy technologies for heating applications include, but are not
limited to, high efficiency wood stoves, boilers, furnaces, active and passive
solar thermal systems for space or water heating, and direct heating using
geothermal resources including ground source heat pumps. Many of these
technologies could be deployed on an individual building -level, or district -
heating level. What would be needed to deploy this portfolio of heating
technologies across rural Alaska and are there any technologies that should take
priority?
The barriers to incorporating new technologies in rural Alaskan communities mainly
deal with lack of familiarity with new technology, lack of financial expertise,
complex approval processes, a well -deserved skepticism regarding new technologies,
and lack of capital. The result has been a piecemeal approach and little large-scale
replication.
One business model that could overcome these barriers is the Energy Service
Company (ESCO) where one, or more, ESCOs could own, operate and maintain the
systems, and could share in the energy savings with the communities and State of
Alaska.
The ESCOs could hire and train from within the community for feedstock supply and
processing, operation and maintenance. These salaries coupled with the avoidance in
diesel fuel purchases would keep substantial funds in the community, and help the
local economies.
3) What can be done to drive down the heating oil needs in community and
residential buildings (e.g., weatherization, new construction, ground source
rd
heat pumps, wood stoves coupled with a wood delivery system, appliance
replacement programs)?
One of the greatest additions to heating needs would be to capture the waste heat
from the engine gensets. Depending on engine efficiency, as much as 60 to 70% of
the energy in the diesel fuel is currently dumped to the atmosphere in most
communities.
Some CHP has been implemented in rural Alaska, but with the higher cost of diesel
fuel, research should be undertaken to explore new ways to transfer the heat over
greater distances with even less temperature loss. A loads analysis of communities
should be conducted to see if there are large potential customers located near
generating stations, and what their load profile looks like seasonally.
Also, it would be interesting to know:
a) the volume of paper, cardboard, fiberboard, and certain plastics that is
available in rural Alaskan communities, and
b) if it is feasible to sort this waste for use to displace diesel fuel.
4) What are the viable pathways for private -sector energy investment and
development in remote Alaska? What will be needed to bring private -sector
investment into this endeavor? Under what circumstances might private -
sector investment lead remote village energy transformation in Alaska?
What are the appropriate roles for the Federal Government, and in
particular, the Department of Energy?
Innovation on the business model/delivery mechanism would potentially be greatly
rewarded. We believe that one appropriate role for government would be to remove
the barriers to ESCOs, and determine what incentives could be provided to encourage
a competitive ESCO environment.
5) What types of incentives or policy changes are needed to spur an energy
transformation in Alaska; at the local, regional, State, or National levels?
And could the funds supplied through the PCE program be converted to a
revenue stream needed to repay the capitalization of renewable energy
hardware installations?
Try to encourage a standard approach to energy supply. The current approach is
fragmented, inefficient, long on talk, but short on action. Anything to reduce barriers
would be beneficial.
6) Do you have any other suggestions or comments that could accelerate energy
transformation in remote Alaska in an economic, environmentally, and
sustainable manner?
"Take a method and try it. If it, fails, admit it frankly, and try another. But by all
means, try something."
Franklin D. Roosevelt
Attachment 1 - BioMax System Description
Figure 1 is a picture of a standalone BioMax 50 modular power system. This portable,
skid -mounted system is composed of six integrated modules. This totally automated
system converts roughly 100 lb per hour of dry biomass into 50 kWh of electrical energy
and about 100 kWh of thermal energy. .
Figure 1 —50 kW Modular Distributed Energy Biomass Power System
The BioMax above produces 50 kW of electrical power and 100 kW of thermal power
from renewable fuel gas (also known as producer gas). The system is driven by the fuel
demands of an internal -combustion -spark engine that establishes the producer -gas flow
rate. Figure 2 shows a block diagram of the relationship between the six integrated
modules in the BioMax.
Figure 2 — Six Integrated Modules in BioMax Combined Heat and Power System
7
Table 1 briefly describes the function of each of the six major modules in the above
figure.
Table 1 - Function of Modules in BioMax
Module
Function
1. Sorter/Dryer/Feeder
Sorts, dries (if required), and feeds the biomass into the
(optional)
gasifier.
2. Gas Production
Converts the biomass to a low tar fuel gas, continuously
removes char and ash.
3. Gas cooling
Reduces fuel gas temperature from about 700C to 100C.
Gas is kept above the dew point temperature to avoid
moisture condensation.
4. Gas cleaning
Filters the cooled fuel gas to remove tars and particulates.
5. Power generation
Combusts clean fuel gas in the cylinder of an internal
combustion engine. Spins the shaft of a generator to
produce grid quality electricity for on -site use or for
export to the grid.
6. Waste heat recovery
Captures heat from the cooling of the fuel gas, engine
(optional)
cooling, and engine exhaust gases in the form of clean,
heated air or water for use on -site.
The BioMax continuously monitors 80 operating parameters and alarms, and has been
automated to the extent that only a part-time operator attendant is required. The operator
attendant starts the system by pressing a single "On" button and then can walk away. It is
also possible to start up and monitor the system using an on -site, or remote computer via
the internet. The computer startup and monitoring method has extensive graphical user
interface capability.
The "expert" computer control system activates the wood -chip feeding and drying
systems, starts the gasifier, monitors the producer gas quality, and then starts the
engine/generator using producer gas made from wood chips. The Programmable Logic
Controller automatically alerts the attendant of potential problems, or in the event of a
major failure, the control system automatically shuts down the system and informs the
attendant on -site by audible alarms or remotely by dial -up messages.
The fully automated control system for the BioMax system eliminates the need and
expense for a full-time, on -site operator. Also, the operating algorithm in the control
system that has been developed over thousands of hours of operation ensures that the
system is always operating under optimal conditions in a manner that is greatly superior
to the ability of a human operator.
Safety is a major consideration in all of our system designs. Instrumentation is supplied
to ensure efficient and safe operation, and is backed up by training in its proper use. In
addition, our systems have a series of alarms that identify audibly and visually the need
for attention. The alarms can even be transmitted via a pager. If operator action is not
taken within a prescribed time period, the system is automatically shut down.
Very low tar levels in the producer gas are a result of our precise control of gasifier
dynamics and secondary -air addition to the gasifier. A small amount of byproduct char is
purposely entrained with the gas from the gasifier and is removed from the producer gas
stream by inertial separation and filtering. Unlike other biopower systems that use water
scrubbers and other condensing methods to collect large quantities of environmentally
harmful tars in water that must then be treated as a hazardous waste, the BioMax employs
a combination of tar destruction in the gasifier coupled with a unique dry filtration system
to produce a stable non -hazardous residue.
Waste heat from the hot producer gas is recovered for drying the wood -chip feed to
remove excessive moisture from the biomass that would significantly reduce the overall
energy conversion efficiency of the process. At a certain level high moisture will shut
down the gasification reaction. Raw woodchips having up to 50% moisture content have
been successfully dried and converted to heat and power in the BioMax. Waste heat from
the engine coolant and exhaust is also available for external combined heat and power
(CHP) applications.
Description of Integrated Module Operation
Sorter/Dryer/Feeder
The chip sorter allows only suitably sized chips to pass to the dryer for use in the gasifier.
Conveyors operate intermittently to keep the gasifier full of feedstock.
The dryer utilizes waste heat recovered by the producer gas heat exchanger for chip
drying. Hot air from the heat exchanger mixes with room air to temper the dryer inlet air
temperature to 200OF or lower. The feed can lose about 30 percentage points of moisture
during this step. The partially dried feed is discharged to the surge bin. The filtered dryer
exhaust air can be discharged to the room or vented outside.
Gas Production Module
Figure 3 is a picture of the downdraft gasifier with its protective enclosure removed. In
the foreground is the gas -to -air heat exchanger that reduces the fuel gas temperature from
about 700 C to 100 C.
Figure 3 - BioMax Gas Production Module
The gasification reaction in the BioMax is fully automated via a proprietary control
algorithm that has been developed and refined through thousands of hours of operational
testing in the lab and the field. The energy stored in the feedstock by the photosynthesis
process is released for conversion to other forms of energy by means of computer
controlled thermo chemical reactions in the downdraft gasifier. The raw feedstock moves
down through the gasifier, as the gasification process consumes the feedstock and char
below it.
Figure 4 shows the four strata, or zones, in the above gasifier: feedstock drying, flaming
pyrolysis, char oxidation, and char reduction. Also shown is the temperature profile in
the various zones.
10
Figure 4 - Four Biomass Conversion Zones in Downdraft Gasifier
Both feedstock and part of the air needed for gasification enter through the top of the
downdraft gasifier. The motive force for the air supply is the engine vacuum located
downstream or an inline blower.
As shown in Figure 5 the control system will call for dry wood chips to be added on top
of the flaming pyrolysis zone automatically when system temperatures reach required
levels. As the feedstock particles approach the flaming pyrolysis zone, they are heated
and dried, losing their moisture as steam. This steam and the gasification air that entered
through the top of the gasifier travel quickly to the flaming pyrolysis zone below.
The gasifier is started with the residual char from the previous operation. Only after the
char bed is fully ignited, is the biomass feedstock started. The low thermal mass of the
gasifier allows it to produce a combustible fuel gas from biomass after only a few
minutes after ignition by a resistance heater.
The gasifier produces roughly equal parts H2 (20%) and CO (20%) with a small amount
of CH4 (2%). The largest non -fuel gas in the mixture is nitrogen, about 45%. The
energy content of the renewable fuel gas is typically between 125 to 175 Btu per standard
cubic foot depending on the feedstock and its initial moisture content.
Dried feedstock is metered into the top of the gasifier automatically as needed to sustain
the electrical load. For each 100 pounds of dry wood fed into the BioMax about 1 pound
of ash is produced that can be used as an amendment for placing nutrients back into the
11
soil. Since carbon conversion is in excess of 99%, there is only a small amount of char
left in the ash.
As the feedstock particles travel further downward, they are heated to pyrolysis
temperatures and begin to emit pyrolysis vapors. The combustion gases and residual tar
vapors then travel down to the char oxidation zone, along with the char formed in the
flaming pyrolysis zone.
Figure 5 - Dried Wood Chips Metered Automatically Into Gasifier
In the char oxidation zone, secondary air is added by computer control to oxidize the char
at multiple locations on multiple levels, producing carbon dioxide and heat. In the
steady-state condition of the gasifier, the temperatures of the char oxidation zone are
moderated by the endothermic reactions of steam and char to form hydrogen and carbon
monoxide, as well as carbon dioxide reacting with char to form carbon monoxide. These
temperature -moderating reactions are significant above 800°C and are increasingly faster
at the higher temperatures of this zone. The hot char and ash surfaces, along with free
radicals present in this zone catalyze the destruction of the residual tar vapors.
In the char reduction zone, there is no free oxygen to oxidize the char and release heat.
Therefore, the reaction of the hot char is to reduce water to hydrogen and carbon
monoxide, as well as, to reduce carbon dioxide to carbon monoxide. These endothermic
reactions cool the char and the fuel gases at the grate. There is additional tar -vapor
destruction in this zone. The ability of the gasifier to produce raw fuel gas having
12
extremely low levels of tars substantially reduces the cost and complexity of downstream
gas cleanup operations.
Near the bottom of the gasifier is a computer -controlled, hydraulically operated, self -
clearing stainless steel grate that precisely controls the passage of char and ash through
the gasifier to maintain high -quality gas. Periodically, the gasifier is vibrated to settle the
char bed, collapsing channels and bridges of the feedstock and char. As the char
becomes progressively oxidized, the char and ash is entrained in the fuel gas as the gas
leaves the gasifier.
If too much material (ash, clinkers, tramp materials) builds up on the grate to the point
where the pressure drop is too high for acceptable performance, the grate opens
automatically to clear the blockage. The material falls into the bottom of the gasifier
where it is augured away.
Gas Cooling
The hot fuel gases and the entrained ash/char are cooled in a tube -and -shell heat
exchanger. We use two types of heat exchangers, gas to air, and gas to liquid. For this
description, we will assume the cooling medium is air.
Hot gas enters the heat exchanger at about 7000C and is cooled to approximately 100°C.
The fuel gas flows inside of the tubes and is cooling air on the shell side. There are clean
out ports with sanitary fittings using special high temperature gaskets, to allow inspection
and cleaning of the tubes.
A blower supplies cooling air to the heat exchanger. The speed of the blower is computer
controlled to produce the desired fuel gas exit temperature. A second blower adds
tempering air to reduce the temperature of the hot air to that suitable for drying the
feedstock in the feeder/dryer.
Gas Cleaning
A preheating step using an electric heater at startup precludes water condensation on the
filters. After the required dew point temperature is reached in the filter system the
computer energizes the resistance heater used to ignite the char bed.
A proprietary impingement -type, gravity -powered filter system removes the entrained
char fines from the fuel gases. During gasifier operation, the fabric filter is occasionally
agitated to remove accumulated filter cake and to keep the pressure drop at an acceptable
value. The ash and char fines are collected continuously in a drum as a dry powder for
disposal as a non -hazardous by product or use as a soil amendment.
A level of 100 ppm is generally considered to be the maximum acceptable level of tars
for producer gas to be consumed in an internal combustion engine. Tar levels in the
13
BioMax are consistently less than 25 parts per million (ppm), an exceptionally clean fuel
gas.
Power Generation
The BioMax uses standard, commercial, gaseous -fuel engine/gensets, in a skid -mounted
enclosure measuring about 9.5 ft long, by 4 ft wide, by 5.5 ft high. CPC modifies the air -
fuel management system of the engine to operate on producer gas fuel. If desired, the
engine can provide the suction to move the producer gas through the Gas Production
Module. Or this suction can be provided with a gas blower. During warm-up, the
relatively inert producer gases are flared off until the gasifier achieves operating
temperatures and begins to make combustible gases.
The computer senses when the producer gases are combustible and it automatically
reduces the flow rate to the flare. When the producer gas quality is high enough, the
generator engine is automatically started. The engine operates very smoothly with
producer gases. The computer uses a wide -band oxygen sensor as a basis to control the
air/fuel ratio. The engine rpm and throttle setting determine the flow rate of producer
gases. This system automatically responds to electrical load changes.
Power generation is extremely flexible. We can use spark -ignited or compression -
ignition engines, supplying either AC or DC, single or three phase, at any of the standard
frequencies.
Waste Heat Recovery
The waste heat recovery module recovers heat from two sources -engine exhaust and
engine coolant. Two heat exchangers in the waste heat recovery module collect this
thermal energy: 1) a tube -and -shell heat exchanger accepts engine exhaust at about
550°C and 2) a flat -plate heat exchanger accepts engine coolant at about 96 °C. The waste
heat recovery module also houses a catalytic converter system for reducing hydrocarbons,
CO, and NOx emissions from the engine. The thermal energy is typically transferred to a
boiler return line thereby eliminating the need to use another fuel such as natural gas to
generate this equivalent amount of thermal energy.
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