HomeMy WebLinkAboutChena Power LLC 400kW Biomass Power Plantat App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 21 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 21 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Chena Power, LLC
Type of Entity:
Electric Power Utility
Mailing Address
PO Box 58740, Fairbanks AK 99711
Physical Address
Mile 9 Richardson Highway, North Pole, AK 99705
Telephone
907-488-1505
Fax
907-451-8151
Email
recycle@polarnet.com
1.1 APPLICANT POINT OF CONTACT
Name
Bernie Karl
Title
President
Mailing Address
PO Box 58740, Fairbanks AK 99711
Telephone
907-488-1505
Fax
907-451-8151
Email
recycle@polarnet.com
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)
XX 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);
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.)
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Grant Application
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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 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.
This project includes final design and construction of a 400 kW biomass power plant.
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.
This project is designed to demonstrate power generation using combusted biomass as a heat
source to drive an Organic Rankine Cycle (ORC) power plant module designed and developed
by United Technologies Corporation. The module is based on the award-winning geothermal
power plant installed at Chena Hot Springs Resort; however the biomass version will operate at
significantly higher efficiency. These efficiency improvements are necessary because unlike the
geothermal fluid, biomass material is not a ‘free’ fuel. In addition to being designed for
maximum thermal efficiency, the power plant includes load following capability, and
independent, simple, remotely monitored operation at low pressures that do not require special
training to operate. This is important because while the project will be located in North Pole,
Alaska, the power plant is specifically designed for rural Alaskan applications. The project will
be constructed and managed by Chena Power, LLC and will be located at the K&K Recycling
Facility located at Mile 9 on the Richardson Highway. Design work and assembly of the power
plant will be completed by United Technologies Corporation through their Research Center
(UTRC).
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.
The total project capital cost estimate is provided below in Table 1. Significant equipment
expenditures include the UTC power plant modules, the Wellons boiler, and the Shred-tech
system. Additionally, it will be necessary to double the size of the existing shop facility at K&K
Recycling to accommodate sorting and storage of material, as well as make modification to the
existing structure. Note that the cost of this initial installation includes $750,000 which UTC is
providing as cost share and will be used for power plant design and integration to Wellons
boiler, as well as remote monitoring and maintenance during the initial 2 year operating period
which are part of this project. Funding sources for the proposed project are included in Table 2.
This includes the $2 million requested in this proposal. Total cost share provide by Chena
Power and UTC is 51%. Most of the design work by UTC has been completed, in the amount of
$750,000. There are no other sunk costs as part of this project.
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CAPITAL EXPENDITURES
UTRC Power Plant including system design and condensers 1,000,000$ Development cost $750,000, ORC eq. cost $1250/kW
Shipping 20,000$ $10,000 per unit
Installation (equipment, labor, materials) 100,000$ Based on Experience
Cooling Pond 50,000$ Using existing pond
Wellons Boiler (2.5MWth, 80-90%, depends on fuel moisture) 880,000$ Off the shelf cost, advanced thermal oil heater ideal for village
Live Floor 10,000$ Live floor components and conveyor included; concrete work separate
Shipping 35,000$ Quote obtained by Wellons
Thermal Oil 10,000$ Estimated by Wellons
Installation (equipment, labor, materials) 150,000$ Estimated by Wellons based on prior installations
Site Preperation 545,900$
Dirtwork for Foundation 4,750$
Steel crossbeams for foundation 22,500$
Heated Concrete Slab 81,650$
Steel Building 60ft x 100ft 126,000$
Building erection (labor & eq) 55,000$
Electric 27,000$
Communications 4,000$
Fire Suppression System 50,000$
Insulation 50,000$
Retrofitting existing building 75,000$
Miscellaneous 50,000$
Fuel Processing System (based on Shred Tech quote) 410,000$ Based on quote from Shred-Tech; may be oversized
Shipping 10,000$ Estimate
Installation (equipment, labor, materials) 50,000$ Estimate
GVEA connect 100,000$ Based on preliminary quote from GVEA
2 Phase Line Extension 357,000$ Based on preliminary quote from GVEA
Equipment (Loader) 70,000$
Permitting 50,000$ Estimate
Manangement 160,000$
Total Capital Expeditures 4,007,900$ Table 1. Capital expenditures for the project
FUNDING SOURCES FOR CAPITAL EXPENDITURES Amount/year
UTRC 750,000$ Project design, management, and monitoring
Chena Power 1,257,900$ Inkind and cash including installation and compnents
AEA/ Denali Comission Grant (proposed) 2,000,000$ proposed
Total Project Funding 4,007,900$ Table 2. Funding sources for capital expenditures
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.
The projected annual income for the project is detailed in Table 3. This includes sale of net
electric generation to GVEA at a rate equivalent to the current avoided fuel cost, heat sales to a
co-located greenhouse project, the federal Production Tax Credit, and savings in heating fuel for
the K&K facility.
PROJECTED ANNUAL INCOME Amount/year
Borough Recycling Program -$
Heat sales to Greenhouse project and site 144,027$ Based on $1.5 per gal equivalent heating oil
Power Sales to GVEA 354,780$ Based on 10 cents, fluctuates with fuel rate
Savings in Heating Cost for Facility 30,000$ Heat for recycling facility only
Tax Credit 66,576$ Production tax credit is 1.9¢ per kWhr to private owner
Total Project Projected Income/year 595,383$ Table 3. Projected Annual Income
The proposed UTC/Chena Power biomass power plant also has tremendous potential for
numerous rural communities in Alaska. In fact, the overriding purpose of this project is to
demonstrate the technology in the hopes of eventually exporting it to villages with adequate
biomass resources and appropriate load characteristics. Great care has been taken in the
design to assure the power plant is compatible with rural Alaskan community characteristics.
For example, the power plant features small scale power generation, durable and simple
operability, flexibility to vary the amount of heat and electrical outputs, the use of thermal oil
instead of steam to avoid problems with freezing, and the ability to be remotely monitored.
Additionally, as proven by the geothermal power plant at Chena Hot Springs, Alaskans can
operate and maintain the system.
The status quo energy paradigm in remote communities is the generation of power with small
scale diesel generators using fuel supplied by barge or plane which is stored in bulk. The result
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is a risky and unsustainable business model that leads to high prices for diesel and electricity.
The state offers assistance to small communities with high cost of electricity through the Power
Cost Equalization (PCE) program. According to the PCE 2005 Annual Report, 183 communities
applied for PCE and paid an average price of $.43 per kw/h. Of these communities, 68 have
been identified by the Alaska Energy Authority as having locally available biomass resources.
These communities currently pay an average of $.22 per kW for fuel (diesel).
The development of biomass and other renewable energy in rural Alaska has the potential to
deliver multiple benefits including a supply of sustainable energy, stable energy pricing,
reduction in the amount of dollars flowing out of the community to pay for diesel, the creation of
jobs and industry, and a reduction in the amount of diesel bulk storage which can reduce spills.
Communities in Alaska have differing types and availability of biomass, and therefore the
economic profile of supplying a project with biomass will differ. For example, this project
focuses at least initially on waste paper and cardboard which are not available in large
quantities in rural Alaska. Nonetheless, there are many analogies in terms of system design,
maintenance, and operation. Therefore this proposed project will allow other communities or
interested parties to review the technical and economic aspects of the power plant and combine
that information with the technical and economic aspects of biomass supply in their community
to determine project feasibility.
This proposed project also serves an important community benefit. It costs the Fairbanks North
Star Borough an estimated $10 per ton to landfill material. For each ton of material that does
not have to be placed in the landfill, the Fairbanks North Star Borough will save $10. The
proposed project will eliminate the need to landfill at a minimum 4,263 tons of material, resulting
in an annual savings of $42,263.
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.)
$4,007,900
2.5.2 Grant Funds Requested in this application. $2,000,000
2.5.3 Other Funds to be provided (Project match) $2,007,900
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $4,007,900
2.5.5 Estimated Benefit (Savings) $595,383
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.)
$
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Grant Application
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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.
The project construction will be managed by Bernie Karl. Bernie Karl has managed and
operated Chena Power and Chena Hot Springs Resort, including the power plant facility, since
1998. Bernie has worked in the power generation and construction field in Alaska for the past
30 years. He was the first co-generator on both the GVEA power grid (Denali North Star Inn in
Healy), and the Arctic Utilities grid (North Slope). Mr. Karl has worked on diesel generators up
to 1MW, including routine operations and maintenance, rebuilding power equipment, and waste
heat recovery systems.
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 is expected to take place over a two year period beginning in April, 2009. The
construction portion of the project is divided into three phases, including Phase 1: Design and
Feasibility Assessment; Phase II: Construction, Assembly, and Site Preparation; and Phase III:
Installation and Verification Testing. After Phase III is completed, the power plant will be
monitored for a period of 15 months beginning in March 2009 to assess actual operating and
maintenance costs and assure the project meets expected technical milestones, such as
availability, efficiency, and output. A project timeline for the first year is included below, which
outlines Phases I through III. A final report will be submitted after April, 2011.
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Grant Application
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completed month 1month 2month 3month 4month 5month 6month 7month 8month 9month 10
2,210,000
150,000
2,000,000
50,000
10,000
995,000
750,000
35,000
10,000
200,000
0
470,000
410,000
10,000
50,000
0
1,650,000
340,000
0
260,000
0
10,000
70,000
1,160,000
750,000
320,000
50,000
10,000
30,000
150,000
210,000
50,000
160,000
completed AprilMayJuneJulyAugust Sept Oct Nov Dec Jan
2007-09Estimated budget PROJECT 2009
Air Condensers (including shipping and install)
Equipment (Loader)
Verfication Testing
Shipping
Manufacturing
Installation
Topping Cycle (245fa PureCycle)
Design Completion (including interconnections)
Manufacturing
Verfication Testing
Shipping
Installation
System Testing
UTC PureCycle Modules
Bottoming Cycle (245fa PureCycle)
Design
Live Floor Construction
Shred Tech System
Installation (labor and parts)
Shipping
Thermal Oil
Installation (labor and parts)
Boiler System Construction (5 month lead time)
System Testing
Shredder Construction (lead time?)
Shipping
Administrative
Permitting
Management
PHASE I: Design and Feasibility Assessment
PHASE II: Construction, Assembly & Site Preperation
PHASE III: Installation and Verification Testing
PHASE IIIPROJECTEstimated budget
Wellons Boiler System
Site Preperation
Facility Renovation (based on estimate)
GVEA Interconnect
PHASE I PHASE II
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
In addition to project management, a number of key tasks will be completed as outlined in the
timeline in the previous section. These include:
• Completion of Technical Requirements (Chena Hot Springs Resort): All the biomass
source technical requirements are to be completed and documented by Chena Hot
Springs Resort
• Cycle analysis and design point analysis: UTRC shall define the design point for the
system based on data from the biomass source onsite. The optimization will be driven
to minimize total cost/kWh including parasitic loads such as cooling water pumps and
the working fluid pump.
• UTRC shall perform a conceptual design of a high efficiency cascade cycle ORC power
plant that shall employ a siloxane topping cycle and a R245fa bottoming cycle.
• Power plant specification: UTRC shall generate specifications for the overall power
plant including electrical requirements, pressure drop requirements and material
selection for heat exchanger tubes based on the resource analysis.
• Component specification and design and control development: UTRC shall evaluate
alternative components and control options that will reduce the cost and improve
reliability of the plant. This includes turbine stop and trip valve, turbine by-pass valves,
pump and system control strategies and safety functions. Final design of the system will
be driven by the usage of standard Carrier purchased parts to minimize the need for
extensive component qualification. Components that are not previously qualified are to
be qualified with bench testing or in the system at UTRC.
• Power plant design: Final arrangement for the system shall be based on heat
exchanger size determined from the design point. The configuration shall be selected in
close cooperation with manufacturing engineering at the Carrier chiller plant. UTRC
shall be responsible for sourcing the heat exchangers and assembling the turbines.
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• Site preparation (Chena Power): During this task design and installation of the biomass
process and equipment will completed onsite by Chena Power before the ORC power
plant is sent out into the field for installation. The scope of work includes building
construction and cooling pond completion, installation of the boiler and the water piping
and interface between the boiler and the ORC power plant.
• Installation of the Wellons boiler and Shred-tech system
• Power plant fabrication (Chena Power): Chena Power will be responsible for
assembling the power plants based on the design configuration and specification
provided by UTRC.
• Site Installation and Commissioning (Chena and UTRC): Installation will be
accomplished with joint staff from UTC and Chena. The power plant will be
commissioned with joint staff from UTC and Chena Power. The plant will be installed
along with the monitoring system. The plant will be operated over its intended range of
conditions and all sensors will be recalibrated and checked with the system model to
ensure that the collected data is valid. When the second module is available it will be
commissioned separately and then final commissioning of the entire plant will be
performed.
• Continuous operation of the power plant (Chena Power): The plant will be operated
24/7. Service will be performed on the unit at the time to ensure continuous power
supply. The control system will provide continuous logging of all operating parameters
and unusual events. A database running on a dedicated PC will be installed to manage
performance logging and event logging for the unit.
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.
The project construction will be managed by Bernie Karl. Bernie Karl has managed and
operated Chena Power and Chena Hot Springs Resort, including the power plant facility, since
1998. Bernie has worked in the power generation and construction field in Alaska for the past
30 years. He was the first co-generator on both the GVEA power grid (Denali North Star Inn in
Healy), and the Arctic Utilities grid (North Slope). Mr. Karl has worked on diesel generators up
to 1MW, including routine operations and maintenance, rebuilding power equipment, and waste
heat recovery systems.
Financial administration of the project will be directed by Olga Hesketh. Olga currently serves
as the chief accountant for Chena Power, Chena Hot Springs Resort, and K&K Recycling. Her
duties include preparing monthly financial statements, managing cash flow and creating cash
flow projections, and training and supervising accounting staff.
Additional project participants from UTC who are responsible for system design include:
Bruce Biederman, who has been the United Technologies Research Center Project Leader for
the PureCycle project since its inception in 2000, and has multiple years of experience in project
management at Pratt and Whitney including the development of the high compressor of the
P&W 4000 engine.
Dr. Fred Cogswell, who was responsible for the control development for the PureCycle 200.
Fred has an extensive controls background and has been active for many years developing
controls and diagnostics for Carrier and other UTC products.
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Jarso Mulugeta, who has over 20 years experience in thermodynamics and compressor design
working for Carrier and York International before joining UTRC to develop the PureCycle 200
power plant. He was responsible for reliability, cycle optimization and UL approval for the
system.
Lili Zhang, who has a degree in nuclear engineering and has been working on heat transfer
calculations and project management for the PureCycle 200 development.
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.
Because this will represent the first commercial UTC PureCycle unit to be installed off a
biomass resource, there is a strong likelihood that some challenges will be encountered at
various phases of this project. This is why working with an established, proven company like
UTC is a benefit for the project. In addition, project manager Bernie Karl has a proven track
record of success in installing various energy projects throughout the state. His most notable
achievement is the geothermal power plant at Chena Hot Springs which has generated national
and international interest. The Chena project was also a collaborative effort between Chena
Power and UTC.
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.
Chena Power has obtained a commitment by the Fairbanks North Star Borough to supply 5000
tons per year of separated paper, cardboard, and brush to the project. An MOU to this effect is
has been completed between the two entities.
The Fairbanks North Star Borough operates the landfill in South Fairbanks located on Sanduri
Road. In FY2006, the landfill collected 80,077 tons of MSW. Additionally, the landfill accepted
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1,305 tons of paper for the Eielson Air Force Base Waste Paper Project, and 2,763 tons of
brush.
The Eielson Paper Program was designed to densify separated paper and cardboard for co-firing
in the Eielson coal power plant. The waste paper for the Eielson program was derived from both
residents and businesses. The residential tipping fee for separated waste paper is waived. The
commercial tipping fee for separated waste paper is reduced from $57 per ton to $37 per ton for
separated waste paper. The Eielson Waste Paper Program was discontinued in January of 2007
after a fire rendered inoperable the paper processing facility at Eielson.
Brush is accepted from both residents and commercial sources and is delivered to the landfill
separate from other materials. The landfill accepts brush free of charge from residential sources
and charges $57 per ton to commercial sources.
There is potential additional biomass available by separating waste paper from MSW. The
MACTEC Report analyzed potential recoverable recyclable materials collected at the South
Cushman landfill and the 14 transfer sites within the FNSB. According to the MACTEC report
titled Recycling Plan and Analysis Solid Waste Landfill Facility Master Plan Fairbanks North Star
Borough, MACTEC concluded that based on Environmental Protection Agency (EPA) average
recyclable recovery rate, a total of 14,366 tons per year of waste paper could be extracted from
the 85,087 tons of MSW collected by the Fairbanks North Star Borough in FY05. Applying EPA
averages to the 80,077 tons of MSW collected in FY06 results in 13,519 tons of waste paper that
could be extracted. This indicates significant room for project expansion which may further
improve overall project economics.
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.
In terms of electrical output, this project will be tied into the Railbelt power grid under an
agreement with Golden Valley Electric Association. No expected adverse effects on the grid are
expected for a project of this size.
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 at K&K Recycling 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 biomass
energy as a baseload in rural Alaska, although the possibility of a failure exists and diesel
backup is still recommended.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
The demonstration site at K&K Recycling will serve as a model for sustainable development of
remote rural areas that have biomass resources. The rising cost of fuel is making the
sustainability of many Alaska communities questionable. The ability to produce electric energy
at a cost of less than 1.5¢/kWh (based on maintenance, excludes biomass fuel costs) using
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mass produced, packaged power plants will enable community based economic growth in areas
with biomass resources. Since the proposed biomass PureCycle platform allows for direct
heating capability with the warm water exiting the power plant, the low cost of electric energy
combined with the direct use of the residual heat from the discharge water creates tremendous
potential for space heating. This could dramatically reduce the cost of both heat and power to
customers in rural Alaska.
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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
The technical objective of the proposed project is to demonstrate the feasibility of producing
electricity using ORC technology at a cost of less than 1.5¢/kWhr (based on maintenance,
excludes biomass fuel costs) from a biomass resource with 98% or better availability. This will
be achieved by developing, installing and operating two 200kW ORC power plants. The ORC
power plants will be based on similar technology and hardware from the commercially available
PureCycle Organic Rankine Cycle (ORC) geothermal plant that is designed to produce 200kW of
electric power from a low temperature geothermal resource. However the new biomass power
plant will be designed with a system efficiency of at least 20%, a more than 100% increase from
the geothermal power plant installed at Chena Hot Springs Resort. In addition, the new biomass
power plants will be grid independent, which is significant for rural or remote areas including
Alaska, and is an additional improvement over the Chena Hot Springs Resort geothermal power
plant.
UTC is interested in developing a biomass application for the PureCycle platform in order to
broaden the market for this technology to include biomass power production. This project also
will validate the opportunity for Alaska to increase its renewable energy portfolio and decrease its
dependence on expensive electricity generated with diesel engines.
The current product offering of the PureCycle 200kW geothermal power plant can produce
power at approximately $1250/kW with a 164 ºF geothermal fluid temperature. The cost of the
PureCycle plant in the proposed biomass application will be similar to the geothermal
application.
Low cost power generation from biomass resources is still only part of the objective. UTC wants
to ensure that these plants can be procured, operated, and maintained in a manner that will be
advantageous to site developers. The current production of large water-cooled chillers at the
Carrier factory averages over 30 units shipped/week. The standard lead-time for a chiller is 6-10
weeks from order. This implies a far more effective production system than is the norm for the
relatively small fabrication facilities and privately owned companies that have been producing
binary geothermal plants in the past. This very significant resource can be utilized for the
PureCycle power plant manufacturing as long as the plant shares a large number of components
with the chillers. In addition, the product databases and production management systems can
be shared.
Other benefits to using Carrier Refrigeration components includes being able to take advantage
of an established service organization, very competitive transportation contracts, strong supply
chain management, and a long-term commitment to the customer that only a large corporation
can guarantee over the multi-decade life of these types of products. Key enablers for the rapid
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spread of biomass energy to new locations, such as Alaska and rural areas in the continental
USA, include reduced complexity and inexpensive O&M. The proposed system, using mass-
produced modules that can be serviced by qualified HVAC technicians, raises the current
standard for each of these criteria. After a successful demonstration, the proposed biomass
power generation site will serve as a model for encouraging development of previously untapped
biomass resources throughout the world that are today only considered for direct use of heating
Project Components
The proposed UTC/Chena Power project is comprised of four main components:
• Shred-Tech STQ 100 Shredder and Conveyor System
• Wellons Live Floor Feed System
• Wellons 2.5 Megawatt Boiler
• Two UTC PureCycle 200 power plants
• Cooling Pond
The shredder reduces the biomass to a uniform size that is easily combustible and delivers the
biomass to the live floor. The live floor stores the shredded biomass until it is required by the
boiler, at which time the rake and auger system in the live floor feeds the boiler biomass. The
combusted biomass generates heat which heats thermal oil, which in turn heats refrigerant in the
UTC PureCycle 200 power plant, which causes the refrigerant to expand, thereby turning a
turbine which generates electricity. The expanded refrigerant is water cooled on the other side
of the turbine using water obtained from a nearby cooling pond, thereby condensing the
refrigerant back into a liquid and completing the cycle.
Performance prediction
During the development of the PureCycle geothermal system, a detailed thermodynamic
performance model was developed for overall performance prediction as well as sizing of the
various components (heat exchangers, turbine, pump, connecting piping, etc). This program,
which analyzes the performance with various heat sources and heat sink temperatures and
capacities, has been validated against the Chena Hot Springs geothermal power plant test data.
The computational model also accommodates various working fluids and can be used to
aerodynamically design a turbine.
The proposed site will have a Biomass fired oil-heater capable of producing 2500 kWth of oil at
500°F, and two ORC systems. A single ORC system will generate 202 kW of net electrical
power, and will use 1000 kWth at over 20% thermal efficiency. The net power output from the
two ORC units will be 404 kW. The net power output of the biomass site will be reduced by
other parasitic loads due to the operation of the oil heater and cooling pumps. It is estimated
that 60 kW will be thus consumed.
Summary of key parameters
Heat source: Tin = 500 °F Tout = 400 °F
Heat sink: Tin = 60°F Tout = 73 °F Flow rate: 800 gpm
Topping cycle (siloxane) Bottoming Cycle (R245fa)
Mass flow rate: 19.4 lbm/s 14.6 lbm/s
Evaporator/turbine inlet pressure: 200 psia 290 psia
Condenser/turbine exit pressure: 31 psia 21 psia
Generator output power (gross): 225 kW 225 kW
Power out of inverter (95%) 215 kW 215 kW
Pump power: 22 kW 13 kW
Net power: 202 kW 202 kW
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Cycle Thermal efficiency: 10.5% 12.9%
Net power from ORC system: 404 kW at 20.7% thermal efficiency
These numbers are derived from actual component efficiencies for the turbine and pump,
reasonable line losses and conventional log-mean temperature differences in the heat
exchangers.
Cycle Description
On the preheater/evaporator side of the topping ORC system 500°F hot fluid enters the unit and
is cooled to 400°F transferring 0.98 MW of thermal energy to the refrigerant. This energy
preheats the 19.4 lbm/s refrigerant mass flow rate to 435°F and subsequently boils the working
fluid at this temperature before slightly superheating it. The high pressure refrigerant vapor is
expanded in the turbine that extracts 225kW of mechanical power from the refrigerant flow at
80% aerodynamic efficiency, after accounting for mechanical and electrical losses 202kW of
electrical power is ultimately delivered to the grid. The refrigerant vapor then passes through a
recuperator where it is de-superheated. It then passes to the inter-stage condenser/evaporator
and is condensed at 262°F and then slightly subcooled. The condenser heat is transferred to
R245fa of the bottoming cycle, which is flowing at 14.6 lbm/s and is heated to boil at 252°F. A
pump elevates the refrigerant pressure from 31 psia to 205 psia. The 40% efficient pump
requires 22 kW of electrical power. Finally the high pressure liquid refrigerant is heated by the
recuperator before entering the preheater/evaporator. In the bottoming cycle the high pressure
refrigerant vapor exits the inter-stage evaporator/condenser and is expanded in the bottom cycle
turbine that also extracts 225kW of mechanical power and delivers 202kW to the grid. (Note: the
maximum gross power output of the generator is the limiting parameter of this design, and
therefore the cycle pressures are tuned to make them equal.) The R245fa vapor is then
desuperheated and condensed at 75°F in the condenser, which is cooled by cooling water from
the cooling pond. The water comes in at 60°F and exits at 73°F at a flow rate of 800gpm.
Overall the cascade biomass power plant is to deliver a net electrical power output of 404 kW,
which corresponds to a system efficiency of 20.7%.
District Heating
The proposed dual ORC system power plant will require 2.0 MWth of heat to produce its
maximum power. The Wellons oil heater which has been selected for this project has a capacity
of 2.5 MWth. The excess 500kW of thermal energy may be used for district heating and off-
design conditions.
In order to use the condenser water for district heat, the condenser water temperature must be
raised from it nominal design temperature (60 to 73°F) to a value that is usable. When the
condenser temperature is raised,the ORC cycles become less efficient, and the power from both
the topping and bottoming cycles is reduced. Since there is extra heat available from the oil
heater, the loss of power may be partially alleviated by increasing the oil flow rate through each
system. It is estimated that raising the condenser water to a 110-to-113°F range will cause a net
loss in electrical power of 50kW. By doing this the full condenser rejection of greater than
750kWth, or 2.5MMbtus is available for district heating.
500kWth (1.7MMbtus) of thermal energy is available directly from the oil loop with no degradation
to electrical power output, but requires and additional heat exchanger valves and piping. This
method also consumes more biomass fuel.
Instrumentation and data acquisition
The plants will be fitted with pressure and temperature sensors upstream and downstream of
each component to verify individual component performance. Refrigerant mass flow will be
measured with a high accuracy coriolis meter located after the pump. This methodology has
been successfully demonstrated during the qualification of the PureCycle 200 geothermal power
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plant. Power measurements will be taken at the generator terminals and also at the local grid
connection point. The pump power consumption will be continuously monitored through the
pump inverter and verified by discrete power analyzer measurements. Continuous data logging
will be maintained and the log files will be available to supporting agencies on request.
Electrical system and grid independence
Permanent magnet generators are used with each turbine. Their power is fed into a rectifier.
Each rectifier passes its power to a common DC bus and primary inverter. The inverter may be
set to follow the existing grid, or create its own. Other small inverters are used to drive the
refrigerant pumps.
In an off-grid application, auxiliary power is necessary to start the system. One method would be
to feed the DC bus with a diesel generator and rectifier which could be turned off once the ORC
generators are active. Another method would be to feed the grid directly with the diesel
generator, and then switch the lead to the inverter before shutting it off. A third method would be
to install a battery backup connected to the bus.
The power out of each generator cannot be regulated quickly. Load-following is achieved by
using a dummy load to dissipate excess power. One method is to pull power directly from the
DC bus by sending current to a heater using thyristors. This would require a liquid heater added
to the liquid line of one of the ORC cycles.
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 property where the project will be constructed is located in the Fairbanks North Star
Borough at 2040 Richardson Highway. The location is approximately 9 miles southeast of
Fairbanks. The 65.4 acres parcel is owned by K&K Recycling, Inc, which is a sister company to
Chena Power, LLC. The property is zoned for industrial use, and no costs or other issues will be
associated with obtaining site control as it is already under the same ownership.
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
• Anticipated permitting timeline
• Identify and discussion of potential barriers
Chena Power has entered into preliminary discussions with DEC and professionals in the
environmental permitting field to determine the environmental compliance process cost and
duration. Based on the preliminary advice received, the project may not have an emission profile
in quantities large enough to trigger even the minimum standards. Regardless, the project
budget contains $35,000 for pre-operation environmental permitting, and $15,000 for ongoing
environmental permitting compliance.
Chena Power has recently been able to enlist the help of an environmental officer at GVEA who
is willing to donate assistance necessary to complete the project environmental analysis and
permitting process. This assistance will enable the project to remove $35,000 from the projects
capital cost.
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
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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 are no significant environmental, technical, or geotechnical issues expected in association
with this project.
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 $4,007,900, and requested grant funds are $2,000,000. It
is important to note that the $2,000,000 request represents essentially a break-even number for
the project at the K&K facility, although future installations are expected to have a much higher
cost/benefit ratio.
Chena Power is investing $1,257,900 into the project as a combination of in-kind and cash
contributions. This excludes the planned 1 acre greenhouse project which will be built in
conjunction with the power plant.
The expected capital cost for the power plant is expected to be $1,880,000, including purchase
of the ORC power plant and Wellons boiler system. The Shred-tech fuel handling system is an
additional $410,000.
Additional project development costs are $1,717,900, excluding $750,000 in sunk costs UTC has
contributed in design work.
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
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Operating and maintenance expense are listed in Table 3 below, and are estimated to be
$423,028. There is no maintenance required for the UTC power plant system during the two
year duration of this project because this is included in the equipment cost and cost share
provided by UTC. The labor costs were based on existing Chena Power employee wage and
benefits for the classification of work required for the project. The work embodied in the labor
costs are nearly entirely upstream cost of collecting and processing biomass for combustion.
Once the biomass enters the live floor system, there is relatively little labor required. The
delivery cost for fuel is based on cost estimates from private trucking companies, with an
estimated distance of 8 miles from the Fairbanks North Star Borough Landfill. In addition, Chena
Power is in discussion with Eielson Air Force Base to deliver waste paper and cardboard to the
K&K facility at no charge, which would reduce the overall delivery cost for the fuel.
Other operating costs are parts and maintenance that is required to maintain the function of the
equipment. The parts and maintenance costs are taken directly from manufacturer quotes.
OPERATION AND MAINTENANCE Amount/year
Spare Parts Based on quotes, average over 5 years
Shred Tech System 50,000$
UTC Power Plant O&M -$ Included in system cost for 2 years
Wellons Boiler & System 18,000$
System Operation (2 FTE Position, unskilled) 99,840$ $20/hour, 40 hours per week
Parasitic Load of System -$ Assume comes off top
Delivery cost for fuel 100,000$ At $20 per ton
Management 45,000$
Overhead (45%) 110,178$ Based on Chena calculated overhead
Annual Operating Costs 423,018$ Table 4. Anticipated project operating and maintenance expenses
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.
Chena Power has already negotiated with GVEA to 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 400 kW unit based on the avoided fuel price alone
assuming year-round operation could be as high as $354,780 per year. Including heat sales and
PTC credit, total gross annual return from this project is expected to be $595,383.
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.
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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.
In order for this project to be sustainable at the K&K location given current local energy costs, it
will depend upon a 1 acre greenhouse facility to be co-located with the power plant and serve as
a customer for heat from the facility. This greenhouse will grow a high value crop, such as
hydroponic ‘living lettuce’ which can be sold directly to consumers or wholesale throughout
Alaska. This project will take advantage of a substantial amount of the available waste heat (up
to 30%) and improve overall project thermal efficiency.
Figure 3. Living hydroponic lettuce production at Chena Hot Springs Resort
The heating load profile for the greenhouse was calculated to determine the total yearly energy
requirements of the system using historical average daily temperatures for Fairbanks. Yearly
energy requirements for heat and electricity are shown in Table 5 below.
Income at $1.50/gal Net Heat Available % Available Electric Use Net Power % Available
heating oil eq. (Mmbtu) Heat used (kWhrs/Mo) generated (kWhrs) Electric Used
Jan 1,344 $16,796 4,608 29.2% 16,376 216000 7.6%
Feb 1,248 $15,596 4,608 27.1% 14,452 216000 6.7%
Mar 1,056 $13,197 4,608 22.9% 15,875 216000 7.3%
Apr 969 $12,117 4,608 21.0% 16,988 216000 7.9%
May 301 $3,761 4,608 6.5% 16,762 216000 7.8%
Jun 244 $3,047 4,608 5.3% 16,766 216000 7.8%
Jul 15 $193 4,608 0.3% 17,209 216000 8.0%
Aug 1 $10 4,608 0.0% 15,438 216000 7.1%
Sep 1,046 $13,077 4,608 22.7% 15,437 216000 7.1%
Nov 1,440 $17,996 4,608 31.2% 15,280 216000 7.1%
Dec 1,459 $18,236 4,608 31.7% 16,188 216000 7.5%
TOTAL 9,122 $114,027 50,688 18.0% 176,771 2,376,000 7.4%
Mmbtus/MoMonth
Table 5. Yearly energy requirements for 1 acre greenhouse installation
In addition to heat sales to the greenhouse, the biomass project will also supply heat to the other
buildings on the property, primarily the Chena Hot Springs and K&K Recycling corporate office.
This will result in an additional $30,000 in heat sales, also at $1.50 per gal heating oil equivalent.
Heating supplied to the buildings which are part of the biomass project is listed as a savings
rather than expense. Overall project efficiency with heat recovery is expected to be as high as
70%.
Expected net annual income from the project is expected to be $172,365. However, this does
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not include potential income generated from the greenhouse project, which is not directly part of
this application. Anticipated net income from the greenhouse project is expected to be $300,000
per year.
If sunk costs are excluded and the greenhouse income is considered in addition to direct project
income, an expected simple payback based on initial investment of 5 years can be realized.
Without including the greenhouse project, simple payback is calculated at 23 years. However, it
must be realized that this project is designed to be a demonstration of the technology and project
economics for a rural community are substantially more favorable. Additionally, future projects
will avoid the design costs ($750,000) which are included in this analysis.
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 this project will include conducting an economic analysis which will extend to
proposed installations at other locations around the site.
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 2,628,000 kWhr net based on the installation of one
400 kW unit. This would offset approximately 187,700 gallons of diesel fuel, or approximately
$1,000,000 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 $20 million in savings.
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. Total annual revenue for
this project is expected to be $595,383 gross and $172,365 net.
In addition, the project will be eligible for the federal production cost credit (PTC).
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.
The project is also expected to generate new economic opportunities in communities where
these units are installed. The K&K Recycling project is expected to result in at least 2-3 full time
equivalent positions. Additional fuel handling requirements in rural communities will result in
even greater economic benefits to the community.
SECTION 6 – GRANT BUDGET
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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
Please see sections 2.3, 4.4 and 5 for details. Total project cost is $4,007,900. UTC has
invested $750,000 in design work in the project to date. $2,000,000 is requested in grant funds,
and an additional $2,007,900 will be invested by UTC ($750,000) and Chena Power
$1,257,900.
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SECTION 7 – ADDITIONAL DOCUMENTATION AND CERTIFICATION
SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR 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 Bernie Karl
Signature
Title President
Date October 8, 2008
RESOLUTION OF THE MEMBERS
OF
CHENA POWER, LLC
WHEREAS, the Members have approved the Limited Liability Corporation to submit an
application to Alaska Energy Authority for a Biomass grant in the amount of $2 million; and
WHEREAS, the Members certify that Chena Power is in good standing with respect to all credit
and federal tax obligation;
NOW, THEREFORE, BE IT RESOLVED, that Chena Power authorizes this application for
project funding and are committed to providing cost share as outlined in the documents for the
Biomass proposal; and
BE IT FURTHER RESOLVED that the Member, Bernie Karl, is authorized to represent Chena
Power and sign any documents necessary for this application.
The undersigned, Connie Parks-Karl, hereby certifies that the Members, at a meeting duly called,
noticed, convened and held on the 24th of January, 2008 did adopt the foregoing Resolution and
that said Resolution has not been revoked or amended in any way.
Dated this 24th day of January, 2008.
By:
Title: Managing Member
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 Power Plant Design $0.00 $1,000,000.00 $0.00 $0.00 $0.00 $1,000,000.002 Power Plant Installation $0.00 $20,000.00 $50,000.00 $100,000.00 $0.00 $170,000.003 Wellons Boiler Purchase $0.00 $880,000.00 $0.00 $0.00 $0.00 $880,000.004 Boiler Installation $0.00 $55,000.00 $120,000.00 $30,000.00 $0.00 $205,000.005 Site Preperation $0.00 $45,000.00 $200,000.00 $300,900.00 $0.00 $545,900.006 Fuel Processing System $0.00 $420,000.00 $50,000.00 $0.00 $0.00 $470,000.007 GVEA Interconnect $0.00 $0.00 $50,000.00 $50,000.00 $357,000.00 $457,000.008 Project Equipment $0.00 $0.00 $0.00 $70,000.00 $0.00 $70,000.009 Project Permitting $0.00 $50,000.00 $0.00 $0.00 $0.00 $50,000.0010 Management $0.00 $0.00 $160,000.00 $0.00 $0.00 $160,000.00$4,007,900.00Milestone # or Task #BUDGET CATAGORIES:12345678910TOTALSDirect Labor and Benefits $0.00 $50,000.00 $0.00 $100,000.00 $200,000.00 $50,000.00 $50,000.00 $0.00 $25,000.00 $160,000.00 $635,000.00Travel, Meals, or Per Diem $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00Equipment $1,000,000.00 $40,000.00 $880,000.00 $50,000.00 $20,000.00 $410,000.00 $50,000.00 $70,000.00 $0.00 $0.00 $2,520,000.00Supplies $0.00 $30,000.00 $0.00 $10,000.00 $300,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $340,000.00Contractual Services $0.00 $10,000.00 $0.00 $0.00 $0.00 $0.00 $357,000.00 $0.00 $25,000.00 $0.00 $392,000.00Construction Services $0.00 $20,000.00 $0.00 $10,000.00 $25,900.00 $0.00 $0.00 $0.00 $0.00 $0.00 $55,900.00Other Direct Costs $0.00$20,000.00$0.00$35,000.00$0.00$10,000.00$0.00$0.00$0.00$0.00$65,000.00TOTAL DIRECT CHARGES $1,000,000.00 $170,000.00 $880,000.00 $205,000.00 $545,900.00 $470,000.00 $457,000.00 $70,000.00 $50,000.00 $160,000.00 $4,007,900.00RFA AEA09-004 Budget Form
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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. 5000 lbs paper & cardboard
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.
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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 400 kW
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh] 2,628,000 kWhrs
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
4. Project Cost
a) Total capital cost of new system $2,290,000
b) Development cost $1,717,900
c) Annual O&M cost of new system $423,018
d) Annual fuel cost $0
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 187,700 gallons diesel equivalent at 14kW/gal
ii. Heat 7,500 gallons diesel
iii. Transportation 0
b) Price of displaced fuel $780,000
c) Other economic benefits $300,000
d) Amount of Alaska public benefits Difficult to quantify
6. Power Purchase/Sales Price
a) Price for power purchase/sale 13.5 cents/kWhr
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7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio 1
Payback 5 years with heat sales to greenhouse project