HomeMy WebLinkAboutWhittier Energy Project Alpine Energy App
Renewable Energy Fund
Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 1 of 17 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
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 2 of 17 9/3/2008
SECTION 1 – APPLICANT INFORMATION
Name (Name of utility, IPP, or government entity submitting proposal)
Alpine Energy, LLC
Type of Entity:
IPP
Mailing Address
P.O. Box 436
Palmer, Alaska 99645
Physical Address
16300 East Vera Way
Palmer, Alaska 99645
Telephone
907 746-3581
Fax
907 746-3595
Email
AlpineEnergy@mtaonline.net
1.1 APPLICANT POINT OF CONTACT
Name
Randy Hobbs
Title
Member-Manager
Mailing Address
P.O. Box 436
Palmer, Alaska 99645
Telephone
907 232-4409
Fax
907 746-3595
Email
hobbsalaska@msn.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)
An electric utility holding a certificate of public convenience and necessity under AS
42.05, or
X 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.)
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 3 of 17 9/3/2008
SECTION 2 – PROJECT SUMMARY
Provide a brief 1-2 page overview of your project.
2.1 PROJECT TYPE
Describe the type of project you are proposing, (Reconnaissance; Resource Assessment/
Feasibility Analysis/Conceptual Design; Final Design and Permitting; and/or Construction) as
well as the kind of renewable energy you intend to use. Refer to Section 1.5 of RFA.
Whittier Energy Project
Whittier, Alaska
A ready to proceed natural gas fired and waste-heat recovery project that benefits a community that has a
population of less than 10,000 and which does not have economically viable renewable energy resources
it can readily develop to provide firm power and thermal energy to benefit the community.
The Whittier Energy Project (the “Project”) is a small natural gas fired Combined Heat & Power (“CHP”)
project designed to help the Chugach Electric Association (“Chugach”) meet new firm generation needs
while using wasteheat recovery to provide the thermal energy needs of the Begich Towers, Inc (“BTI”)
and commercial customers within economic reach of the Project.
The Project will be sited near BTI to provide:
1. Power & thermal energy needs of BTI where a majority of Whittier residents reside
2. Thermal energy needs of the City Whittier to include snow melt pads
3. Thermal energy needs of the public school to include a greenhouse
4. Thermal energy needs of commercial customers within economic reach of the Project
5. Off-take power to help Chugach meet firm generation needs
Pursuant to House Bill 152 Section 42.45.045
(g) To qualify for a grant recommendation under (e) of this section, a project that is a natural gas project must
benefit a community that
(1) has a population of 10,000 or less, and
(2) does not have economically viable renewable energy resources it can develop
(l)(5) “renewal energy resources means”
(A) wind, solar, geothermal, wastheat recovery, hydrothermal, wave, tidal, river in -stream, or hydropower
Pursuant to Alaska Administrative Code 3 AAC 50.750
(b) The purpose of 3 AAC 50.750 – 3 AAC 50.820 is to encourage cogeneration and small power production by
setting out guidelines for the establishment of reasonable, nondiscriminatory charges, rates, terms, and
conditions under which interconnection and purchases and sales of electric power will occur betwee n an
electric utility and a qualifying facility
Pursuant to Federal Regulations CFR Title 18 Part 292 Sections 201 and 210 of the Public Utilities Regulatory
Policies Act (“PURPA”)
April 28, 2008 the Federal Energy Regulatory Commission (“FERC”) accepted f or filing Alpine Energy’s self-
certification of this project as a Qualifying Facility (QF08 -526-000). Qualifying Facility means a cogeneration
facility or a small power production facility that is a qualifying facility under Subpart B of this part.
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 4 of 17 9/3/2008
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.
5 MW natural gas fired Combined Heat & Power Project (“CHP” or “Cogeneration”), sited near the
Begich Tower, to provide the energy needs of the Begich Tower and thermal energy needs of City of
Whittier, Public School and commercial customers within economic reach of the Project, and provide
firm power to help Chugach meet new generation needs and improve service reliability to Whittier.
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.
Funds needed to complete development and construction of the Project including associated district
energy system is about $15,000,000:
Anticipated Source of Funds:
1. AEA Grant $ 7,500,000
2. Matching Funds
a. USDA Grants $ 1,000,000
b. Capital & In-Kind $ 1,500,000
c. Loans $ 5,000,000
Subtotal $ 7,500,000
Total $ 15,000,000
Project Cost Summary:
1. Complete Feasibility Analysis $ 250,000
2. Final Design & Permitting $ 750,000
3. Construction & Commissioning $ 14,000,000
Total $ 15,000,000
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 financial benefits that will result from this Project:
1. Reduced energy costs for BTI, where majority of Whittier residents reside, by at least 20%
2. Provide thermal energy needs of a greenhouse for the public school at no cost
3. Reduced thermal energy costs for commercial, institutional and other customers by at least 15%
4. Reduced natural gas used (per unit of useful-beneficial energy harvested) by at least 30% from
what would otherwise by consumed in providing the same with existing utility generation and
standalone heating systems
5. Conservation of dwindling Cook Inlet Gas Reserves
6. Reduced air emissions
7. Reduced capital & energy costs for Chugach by at least 10%
8. Provides about 2% of Chugach’s firm generation needs in a highly efficient manner that is
complimentary with other resources being considered
9. Local generation that improves grid stability, improves reliability & reduces line losses
10. In accordance with recommendations of the AEA-REGA Report
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 5 of 17 9/3/2008
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.)
$ 15,000,000
2.5.2 Grant Funds Requested in this application. $ 7,500,000
2.5.3 Other Funds to be provided (Project match) $ 7,500,000
2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 15,000,000
2.5.5 Estimated Benefit (Power Savings) $ 30,000,000
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.)
$ 30,000,000
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.
Randy Hobbs will be managing the Project for Grantee (resume with references attached).
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.)
Schedule of proposed work funded by this grant:
1. Feasibility Analysis/Conceptual Design $ 125,000
2. Final Design & Permitting $ 375,000
3. Construction & Commissioning $ 7,000,000
Total $ 7,500,000
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Project Milestones Schedule for Achieving
1. Complete Feasibility Analysis Jan 1, 2009
2. Negotiating Gas Supply Contracts Feb 1, 2009
3. Negotiating Power Purchase Agreements Mar 1, 2009
4. Final Design & Permitting Sep 1, 2009
5. Construction & Commissioning Sep 1, 2010
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 6 of 17 9/3/2008
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.
1. Alpine Energy, LLC (Applicant / Grantee)
- Randy Hobbs, Member-Manager & Project Manager
- Randy Kaer, Member-Manager & District Energy Sales
- David Park, Administrative Manager
- Robert Reiman, Legal Counsel
2. Enerflex Systems, Inc (Equipment Packager / Maintenance Contractor)
- Brad Barros, Manager US Operations
- Jim Forsyth, Account Manager
3. Waukesha Engine / Dresser, Inc (Equipment Manufacture)
- Mark Schrenier, Western Regional Manager
4. Tetra Tech (Environmental Consultant)
- Tom Gibbons, Manager Permitting
5. Evergreen Engineering (Project Engineer)
- Ken Jantz, Power Plant Specialist
6. Sakata Engineering (Electrical Engineer)
- Albert Sakata, PE
7. Begich Towers, Inc (Thermal Host)
- Gaylen Gransbury, Property Manager
8. AIDEA (Financing)
Attached resumes and references of key personnel, consultants, contractors and suppliers.
3.5 Project Communications
Discuss how you plan to monitor the project and keep the Authority informed of the status.
The Project Manager will monitor and keep the Authority informed of the Project status by creating a
detailed project schedule, with critical path milestones, that will be updated and shared with the Authority
on a monthly basis. Furthermore, the Project Manager will invite the Authority to participate in all Project
meetings and provide updates and discuss critical path issues with the Authority on a weekly and/or as
needed basis.
3.6 Project Risk
Discuss potential problems and how you would address them.
The only potential problem, that we are aware of at this time, pertains to negotiating a power
purchase agreement with Chugach that is fair and non-discriminatory:
1. We have partially addressed this potential problem by successfully self-certifying the Project with
the Federal Energy Regulatory Commission (“FERC”) as a Qualifying Facility (“QF”) and
noticing Chugach and Regulatory Commission of Alaska (“RCA”).
2. We have also engaged an electrical engineer to conduct an interconnection study with preliminary
design for Chugach review and approval.
3. Next step is to offer to work with Chugach managers and engineers to make this a “win win”
project for the community.
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 7 of 17 9/3/2008
SECTION 4 – PROJECT DESCRIPTION AND TASKS
Tell us what the project is and how you will meet the requirements outlined in Section 2 of
the RFA. The level of information will vary according to phase of the project you propose to
undertake with grant funds.
If you are applying for grant funding for more than one phase of a project provide a plan and
grant budget for completion of each phase.
If some work has already been completed on your project and you are requesting funding for
an advanced phase, submit information sufficient to demonstrate that the preceding phases
are satisfied and funding for an advanced phase is warranted.
4.1 Proposed Energy Resource
Describe the potential extent/amount of the energy resource that is available.
Discuss the pros and cons of your proposed energy resource vs. other alternatives that may be
available for the market to be served by your project.
The Energy Resource is natural gas which is readily available from several Cook Inlet Producers
and a potential Coal Bed Methane (“CBM”) resource also sited at the Fair.
Pros of Energy Resource:
1. Clean & ease of permitting
2. Sufficient Cook Inlet gas supply to meet life-cycle needs
3. Readily available low cost & highly efficient power generation equipment
4. Infrastructure already in-place to serve Project
Cons of Energy Resource:
1. More expensive than coal and some biomass resources
2. Price volatility
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.
Begich Towers:
1. Enstar Natural Gas service fueling a remote heat plant consisting of two (2) large fire-tube boilers
that produce low pressure steam that is transported to the basement of the Begich Towers where it
is converted to hot water for distribution throughout the Towers.
2. Boilers are at more than 20 years with efficiencies of less than 70%
3. Chugach commercial service with standby diesel generator
District Energy Customers:
1. Standalone natural gas-fired heating systems
2. Consisting of hydronic and forced air heating systems generally less than 1 mmbtu/hr and more
than 20 years old with efficiencies of less than 70%
3. Chugach Commercial power service
Chugach:
1. Whittier is within Chugach’s certificated service area with a load of greater than 5 MWs
2. Power to Whittier and the Railroad Tunnel is frequently interrupted causing delays in getting other
services to/from Whittier including emergency services
3. Chugach generation is mostly from natural gas-fired combustion turbines in the 50-70 MW range
that at more than 30 years old with efficiencies of less than 30%
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 8 of 17 9/3/2008
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.
Existing energy resources available to meet needs of the Whittier community and Chugach are
pretty much limited to:
1. Natural Gas from Cook Inlet Producers
2. Small Hydro
3. Power from Chugach
Project’s potential impact on existing energy infrastructure and resources:
1. Reduced burden on existing Cook Inlet Gas Resources & related infrastructure
2. No impact on small hydro.
3. Reduced burden on Chugach generation and transmission infrastructure.
4.2.3 Existing Energy Market
Discuss existing energy use and its market. Discuss impacts your project may have on energy
customers.
Existing energy use and markets in the Southern Railbelt consists primarily of:
1. Natural Gas for Heating Needs:
a. Cook Inlet Producers currently sell natural gas to Enstar Natural Gas, below Henry Hub or
NYMEX index pricing, for distribution and sale to most consumers
b. Over last few years, the wholesale and retail price of gas has risen dramatically
c. By the end of October 2008, RCA is expected to approve and/or make recomendations for
amending the new proposed contract between Enstar, ConocoPhillips and Marathon that
will likely increase wholesale and retail pricing by another 20% or more
d. The combination of escalating gas prices and generally poor efficiencies is creating an
ever increasing strain on the consumer
e. Deliverability has also become a concern during high winter peak demand periods that
could cause a system wide failure that could take several weeks to restore service
2. Natural Gas for Power Generation:
a. Cook Inlet Producers currently sell natural gas to Chugach under long-term contracts,
below Henry Hub or NYMEX index pricing, that expire over the next couple of years
b. Currently no new utility gas supply contracts have been announced and are expected to
increase by at least 30% when they are
c. The combination of escalating gas prices and old inefficient generation is causing power
costs to increase dramatically adding more strain on consumers
3. Project Impact on Energy Customers:
a. By making beneficial use of waste-heat to displace natural gas use, the Project will reduce
the cost of thermal energy to customers while also reducing the burden on existing natural
gas resources and related infrastructure
b. By using highly efficient distributed generation, this Project will reduce the cost of firm
power to Chugach while reducing the burden on transmission
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 9 of 17 9/3/2008
4.3 Proposed System
Include information necessary to describe the system you are intending to develop and address
potential system design, land ownership, permits, and environmental issues.
4.3.1 System Design
Provide the following information for the proposed renewable energy system:
A description of renewable energy technology specific to project location
Optimum installed capacity
Anticipated capacity factor
Anticipated annual generation
Anticipated barriers
Basic integration concept
Delivery methods
System Design:
1. Renewable Energy Technology:
a. Wasteheat recovery from gas-fired internal combustion engines, designed specifically for
cogeneration applications, used to displace natural gas used in meeting the heating needs
of commercial, institutional and agricultural customers.
i. Exhaust heat recovery (200ºF)
ii. Jacket water heat recovery (200ºF)
iii. Oil cooler heat recovery (100ºF)
2. Power Generation:
a. Optimum Installed Capacity:
i. 2% of Chugach’s new generation needs or about 5 MW
ii. Simple interconnection with medium voltage distribution system of Chugach with existing
system load exceeding 5 MW
iii. Local generation support, improved reliability and power quality for the Whittier load-
center that includes the Railroad Tunnel
b. Anticipated Capacity Factor exceeding 92%.
c. Anticipated Annual Generation:
i. 40,000 MWH/yr based on a Capacity Factor of 92%.
ii. Consisting of two (2) 2.5 MW generation units for redundancy
3. Anticipated Barriers:
a. Utility bias and discrimination
4. Integration Concept:
a. Thermal Energy
i. A 200ºF hot water district energy system to be designed/built to deliver thermal energy
and integrate with the customer systems
ii. Anticipate using similar interconnection schemes currently used in Fairbanks by Aurora
Energy
b. Power
i. Work closely with Chugach to interconnect and integrate the Project’s electrical output
with the distribution system of Chugach in accordance with nationally recognized
standards
ii. Provide power needs of the Begiuch Tower
5. Delivery Methods:
a. Thermal Energy delivered via a 200ºF hot water district energy system
b. Power delivered to the medium voltage system of Chugach
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 10 of 17 9/3/2008
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.
Alpine Energy has secured an option on a suitable parcel of land near the Begich Towers for siting of the
Project
4.3.3 Permits
Provide the following information as it may relate to permitting and how you intend to address
outstanding permit issues.
List of applicable permits
Anticipated permitting timeline
Identify and discussion of potential barriers
List of Permits:
1. Air Permit through ADEC
2. Building Permit from City of Wittier
3. No permit barriers
4.3.4 Environmental
Address whether the following environmental and land use issues apply, and if so how they will
be addressed:
Threatened or Endangered species
Habitat issues
Wetlands and other protected areas
Archaeological and historical resources
Land development constraints
Telecommunications interference
Aviation considerations
Visual, aesthetics impacts
Identify and discuss other potential barriers
The environmental and land use issues reference above do not apply to 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
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 11 of 17 9/3/2008
1. Total Anticipated Project Cost $ 15,000,000
2. Requested this Grant Funding $ 7,500,000
3. Applicant Matching Funds
a. USDA Grants $ 1,000,000
b. Capital & In-Kind $ 1,500,000
c. Loans $ 5,000,000
Subtotal Matching $ 7,500,000
Total Grant & Matching Funds $ 15,000,000
4. Capital Cost of Proposed Renewable Energy System $ 14,000,000
5. Development Cost of Proposed Renewable Energy System $ 1,000,000
Total Capital & Development Cost $ 15,000,000
4.4.2 Project Operating and Maintenance Costs
Include anticipated O&M costs for new facilities constructed and how these would be funded by
the applicant.
Total anticipated project cost for this phase
Requested grant funding
The anticipated O&M costs for the Project will be funded from revenues and/or the Applicant with no
funding being requested from this grant.
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
Potential Power Buyers: Proposed Price
1. BTI 90% of Chugach’s large commercial tariff
2. Chugach 90% of Chugach’s firm avoided cost
Return from Grant-Funded Project Proposed Rates
1. On Grant Funding 0%
2. On Debt Funding 10%
3. On Equity Funding 20%
4.4.4 Cost Worksheet
Complete the cost worksheet form which provides summary information that will be considered
in evaluating the project.
Attached completed Downloaded Cost Worksheet Form with source documents.
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.
Completed Project will be operated by Alpine Energy with Enerflex Systems and Waukesha Engine
providing the scheduled maintenance and overhauls.
4.4.6 Analysis and Recommendations
Provide information about the economic analysis and the proposed project. Discuss your
recommendation for additional project development work.
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 12 of 17 9/3/2008
Economic Analysis:
1. Revenues based on:
a. Power sales to Chugach at 90% of firm avoided cost
b. Thermal sales at 85% of customers avoided energy cost
2. Capital Cost estimate based on:
a. Firm price equipment supply proposal from Enerflex and Waukesha
b. In -house construction cost estimate with supporting documentation
c. Debt financing at 7% APR for a term of 20 years
3. O&M Cost estimate based on:
a. Firm price proposal from Enerflex and Waukesha for providing the life-cycle maintenance
and overhaul needs of the Project
b. In -house operations cost estimate with supporting documentation
4. Fuel Costs a pass through at guaranteed heat rate
5. Detailed Performa provided upon request
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
Project Benefit
1. Anticipate natural gas savings over lifetime of Project: > 6 BCF
2. Anticipated annual gross revenues: > $ 5,000,000
3. Potential add’l annual incentives: undetermined at this time
4. Potential add’l annual revenue streams: undetermined at this time
5. Non-economic public benefits to Alaskans:
a. Conserves dwindling natural gas resources
b. Reduces emissions
SECTION 6 – GRANT BUDGET
Tell us how much your total project costs. Include any investments to date and funding sources,
how much is requested in grant funds, and additional investments you will make as an
applicant.
Include an estimate of budget costs by tasks using the form - GrantBudget.xls
Alpine Energy has invested more than a year in the development of this Project, has secured the support
of the community and has identified funding sources needed to complete the Project, as follows:
1. Enerflex & Waukesha have offered equipment lease financing
2. A major US Investment Company has expressed interest in providing equity funding
3. AIDEA planned for debt financing
4. AEA Renewable Energy Grant
5. USDA Energy Efficiency Grant
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 13 of 17 9/3/2008
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 Randy Hobbs
Signature
Title Member-Manager, Alpine Energy, LLC
Date October 8, 2008
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 14 of 17 9/3/2008
Additional Documentation and Certification
A. Resumes of Applicant’s Project Manager, key staff, partners,
consultants, and suppliers:
Randy Hobbs, Project Manager
Mr. Hobbs has more than 35 years of experience in the power generation industry that started with the US
Navy’s Nuclear Power Program and continued with major mining companies, electric utilities and the
creation of Hobbs Industries, Inc to pursue and develop private power project opportunities in the Pacific
Northwest and Alaska.
Mr. Hobbs has been responsible for the development and construction of many power generation projects
that has included:
1. Design, manufacture and construction of many diesel-fired power generation plants for military,
government, construction, mining companies and utilities
2. Acquisition and ongoing development of the Knik Arm Power Plant in Anchorage to help railbelt
utilities meet new generation needs
3. Development, design and construction of a 20 MW coal-fired cogeneration plant for the USAF
near Glenallen, Alaska
4. Design and construction oversight of a 25 MW natural gas fired peaking power plant for Tucson
Electric
5. Development, design and construction of a 16 MW coal-fired cogeneration plant for NorthWest
Energy near Thompson Falls, Montana
6. Design and construction oversight for improvements to a 30 MW coal-fired cogeneration plant for
Aurora Energy in Fairbanks
7. Ongoing development and preliminary design work for several Alaska cogeneration projects
References:
1. Don Gin, Tucson Electric (520) 904-1952
2. Dan Wheeler, NorthWestern Energy (406) 497-2234
3. Mo Klefeker, Southwest Energy (303) 928-4674
4. Norb Kmoch, Carbon Energy (303) 587-0594
5. Buki Wright, Aurora Energy (907) 452-8767
6. Steve Denton, Usibelli Coal Mine (907) 683-9710
7. Pat Gamble, Alaska Railroad (907) 265-2403
8. Ray Ritari, Alaska Fair (907) 746-7162
9. Jim Strandberg, AEA (907) 269-3029
10. Jeff Moore, Harbert Power (845) 469-5343
11. Les Webber, Marathon Oil (907) 565-3080
Consultants & Suppliers
Provided by separate attachment
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 15 of 17 9/3/2008
B. 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. NA
Unit depends on project type (e.g. windspeed, hydropower output, biomass 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 NA
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 NA
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] NA
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] 40,000,000 kWh/yr
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
1 The Railbelt grid connects all customers of Chugach Electric Association, Homer Electric Association, Golden
Valley Electric Association, the City of Seward Electric Department, Matanuska Electric Association and Anchorage
Municipal Light and Power.
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 16 of 17 9/3/2008
vi. Other (natural gas) 370,000 mmbtu/yr
3. Proposed System Design
a) Installed capacity 5,000 kWe
b) Annual renewable electricity generation
i. Diesel [gal or MMBtu]
ii. Electricity [kWh]
iii. Propane [gal or MMBtu]
iv. Coal [tons or MMBtu]
v. Wood [cords, green tons, dry tons]
vi. Other
4. Project Cost
a) Total capital cost of new system $ 14,000,000
b) Development cost $ 1,000,000
c) Annual O&M cost of new system $ 1,000,000
d) Annual fuel cost (est price 2011) $ 3,000,000
5. Project Benefits
a) Amount of fuel displaced for
i. Electricity 100,000 mmbtu/yr
ii. Heat 100,000 mmbtu/yr
iii. Transportation
b) Price of displaced fuel (est. 2011) (200,000mmbtu/yr)($8.00/mmbtu) = $ 1,600,000/yr
c) Other economic benefits Reduced line loss, stability, other = $ 400,000/yr
d) Amount of Alaska public benefits ($2,000,00/yr)(30 years) = $ 60,000,000
6. Power Purchase/Sales Price (est. 2010-2011)
a) Price for power purchase/sale MEA / Chugach firm avoided costs of about $ .12/kWh
7. Project Analysis
a) Basic Economic Analysis
Project benefit/cost ratio $ 60,000,000 / $15,000,000 = 4.00
Payback $15,000,000 / $2,000,000 = 7.50 yrs
Renewable Energy Fund Grant Application
Whittier Energy Project of Alpine Energy, LLC
AEA 09-004 Grant Application Page 17 of 17 9/3/2008
C. Grant Budget Form
Provided by separate attachment
D. Electronic Version
Provided by CD
E. Governing Body Resolution
The Member-Manager of Alpine Energy, LLC hereby authorize this application for the project
funding at the match amounts indicated in the application and further authorizes Randy Hobbs, as
the point of contact and Project Manager, to represent the applicant for the purposes of this
application.
Alpine Energy, LLC is in compliance with all federal, state and local laws including existing
credit and federal tax obligations.
Dated this 8th day of October 2008.
By _____________________________________________
Randy Hobbs – Member-Manager, Alpine Energy, LLC