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HomeMy WebLinkAboutCity and Borough of Ketchikan Waste Gasification Plant Recon Study App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 12 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 12 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Alaska Recycling Energy, LLC Type of Entity: Alaska Limited Liability Company Mailing Address 9360 Glacier Hwy, Ste. 202 Ketchikan, Alaska 99801 Physical Address Office to be established in Anchorage Telephone (907) 586 3340 Fax (907) 586 6818 Email donwest@aol.com 1.1 APPLICANT POINT OF CONTACT Name Donald W. West Title Managing Member Mailing Address PO Box 584 Naperville, Illinois 60566-0584 Telephone (312) 804 4454 Fax (847) 864 2778 Email donwest@aol.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 or No 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 or No 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 or No 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 AEA 09-004 Grant Application Page 3 of 12 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. Type in your answer here and follow same format for rest of the application. CITY AND BOROUGH OF KETCHIKAN WASTE GASIFICATION PLANT RECONNAISSANCE STUDY -- Type of Project – Reconnaissance Study for a proposed waste gasification plant project for the City and Borough of Ketchikan and the Southeast Region; conversion of all types of waste into energy. 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. Alaska Recycling Energy, LLC ("ARE") seeks funding to prepare a reconnaissance study prior to pursuing a Resource Assessment, Feasibility Analysis and Conceptual Design for the development of a state of the art clean waste gasification plant that will generate energy for Ketchikan and the communities of the Southeast Conference. The proposed plant project location must be determined but initial consideration is being given to a site at Ward Cove, site of the old Ketchikan Pulp Mill. The project will serve Ketchikan and those communities that the proposed study shows can be reasonably served. This study will provide the information about present patterns for disposal of municipal solid waste and other types of waste in the general area, logistics considerations, feedstock sources that can be identified and evaluated that would be available to support the proposed plant and such other information that can lead to a feasibility analysis, how such a proposed plant would supplement, integrate into or supplant existing energy resources, potential markets for such a plant and its products, possible site and cost analysis for future studies addressing the preliminary site layout and design, plant sizing and configuration, development plan, construction, start-up and operating costs, by product markets and operating information necessary to prepare and analyze the financial information required to finance the proposed plant and to meet future grant applications for such a study and project. The proposed plant project will convert the waste, landfill and the Ketchikan Pulp Mill superfund site into electricity or fuel. Preparation of the study will involve WFT Management Company, Robert Loescher, Richard Smith and Alaska Recycling Energy in conjunction with Ketchikan City and Borough staff and the Southeast Conference. If needed, additional consultants will be retained. 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. Alaska Recycling Energy estimates that this reconnaissance study will cost $105,620. Staff assistance from the City and Borough of Ketchikan and from the Southeast Conference will be Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 12 9/3/2008 contributed. The required funds for this phase are being sought through this grant application. Further cost estimates cannot be determined at this time. 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. Converting waste into energy will reduce waste disposal costs because waste is presently being shipped to Seattle. This will provide a new source of affordable energy in the form of fuel or electricity at lower than current market prices. The type of energy produced will be determined by the results of the study and market factors. The project could eliminate landfills, remove other biomass dumps such as the one at Wrangle, reduce greenhouse gases and reduce disposal costs for waste other than MSW by consolidating all types of waste into a single conversion process and by minimizing sorting or preprocessing. Additionally, the system is capable of converting sanitary sludge into energy thereby creating further savings. This should provide significant savings to the public, clean up environmental dumps and by reducing greenhouse gases provide health benefits to the community at large. 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.) $ n/a 2.5.2 Grant Funds Requested in this application. $ 105,620 2.5.3 Other Funds to be provided (Project match) $ 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $ 105,620 2.5.5 Estimated Benefit (Savings) $ n/a 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.) $ not available at present Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 12 9/3/2008 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. Type in your answer here and follow same format for rest of the application. Primary Project Manager will be Robert Loescher. His resume and references are 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.) This proposed study is expected to take 120 days and should not exceed 150 days if needed. 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. The milestone will be the completion of the study since there will be no stages of study. Future project milestones will be developed as part of the next stage feasibility and design study. 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. If the project proceeds, CH2MHill will be the engineering design team headed by Jim Riley, Senior Process Group Engineer. CH2MHill will also serve as construction manager for the construction phase. The Plasma Waste Recycling team will be led by Terry Moore, President and CEO. The resumes of Jim Riley and Steve Jenkins from CH2MHIll and the resumes of the PWR team are attached. See also the enclosed materials containing corporate materials for Plasma Waste Recycling, Economic Research Associates, Tenova Pyromet and CH2MHill. This team will provide the primary design, plant configuration, construction management, start-up and training for the plant. Alaska Recycling Energy will enter into a license agreement with Plasma Waste Recycling for the use of its proprietary technology once the project scope has been defined by the study. Mr. West has been an officer and director of PWR. Mr. West is also President of WFT Management Company which has a consulting agreement with PWR that grants it the right to exploit the PWR technology in Alaska. WFT has assigned these rights to ARE which it owns. All major portions of the construction contract will be subject to public bidding by the construction manager, CH2MHill, except for the reactor which is a proprietary design of PRW and is produced by Tenova Pyromet under an OEM agreement with PWR. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 6 of 12 9/3/2008 This grant will be managed by Alaska Recycling Energy from its proposed office in Anchorage. Project Manager, Robert Loescher, is located in Juneau. Progress reports, accounting and other communication services will be generated from the Alaska Recycling Energy office. 3.6 Project Risk Discuss potential problems and how you would address them. Potential project risks resulting from the PWR process have already been addressed with a Fatal Flaw Analysis and a Hazardous Process Analysis having been undertaken by PWR under the direction of CH2MHill in conjunction with URS and Covanta. Tenova Pyromet is undertaking and guaranteeing its own testing for the reactor equipment. During construction, CH2MHill and WFT Management Company will have expediters and managers monitoring equipment ordering, staging and construction. Both companies have successful experience managing and completing major construction projects. Permitting risks resulting from the new technology created by the PWR process have been addressed by early presentation to critical agencies. Preliminary review by NEPA is typical which has informally advised that they see no potential approval problems. The permitting section of CH2MHill has reviewed the process internally and also with the Alabama Department of Environmental Management where it has received preliminary approval for projects in Alabama. A recent meeting with the California Integrated Waste Management Board and the Cal EPA also confirm there should be no problems with permits in California. Preliminary meetings with the Alaska Department of Environmental Conservation also suggest that permitting should not be a problem in Alaska. Given this exposure, we believe permitting should not pose a problem for this new technology. Equipment fabrication of proprietary equipment that could pose time delays have been addressed by PWR which has OEM contracts with suppliers for its critical items. Those manufacturers are world leaders in their respective fields and have already prepared programs for the production of PWR equipment. PWR has retained and associated itself with world leaders in the various applicable fields so the technical skills and experience needed to properly and successfully undertake projects like this have been fully addressed. The availability of feedstock to maintain operations on a 24/7 basis are critical since the plants cannot operate on a start and stop basis or even with major flow reductions. The sourcing, logistics and staging of feedstock required to maintain continuous operations are a potential source of problems. The location of the proposed plant on the Ketchikan landfill will provide a continual reserve source of feedstock that should address this problem. Communications problems are likely to create the primary problems during the study stage. Relationships with Dan Bockhurst, Manager for Ketchikan Gateway Borough and his staff, Ketchikan City staff and with Shelley Wright, Executive Director of the Southeast Conference have been established by Mr. Loescher and by Mr. West who will be located in Anchorage but will travel as needed to Ketchikan. In Ketchikan, Richard Smith, knows almost everyone in the area. Given Mr. West's fifty years of experience in development, most challenges at this stage should be manageable. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 12 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 proposed plant will use the PWR process which is a base load self-sustaining energy project. The underlying energy resource that is available for the project will be the daily municipal solid waste generated by Ketchikan and the waste contained in its landfill. Other sources of waste will be identified during the first phase study that could add to this supply. The conversion of this waste could produce up to 6,000 gallons of diesel fuel per day or produce electricity for sale into the Ketchikan market above the amount produced that is required to run the plant. The pros of the PWR process are that it totally recycles waste without creating emissions or residue. It captures virtually all of the carbon and BTU content from the feedstock and generates enough electricity to be self-sufficient. Moreover, saleable byproducts will be produced to create economic efficiencies and income. This is the only completely clean waste conversion technology we are aware of today. Moreover, the economic benefits and savings will benefit Ketchikan. The primary con is that this is new technology and before it is clearly understood and has an operational history, it may face some opposition. Other waste to energy and alternate energy systems that make similar claims are on the market but cost more to build and to operate and they are not completely green. These will be distinguished in the proposed study. 4.2 Existing Energy System 4.2.1 Basic configuration of Existing Energy System Briefly discuss the basic configuration of the existing energy system. Include information about the number, size, age, efficiency, and type of generation. The proposed Alaska Recycling Energy plant is a self-sufficient internal generating base load energy operation. Although it will be connected to the electrical grid and can provide supplement power generation to it, it will not replace any existing energy system nor is it relying on any existing energy system to provide power to it. There are no existing energy systems at the Ward Cove site if it is selected, therefore existing energy systems information is not pertinent to this project. The energy or fuel produced can be used by Ketchikan to lower its operating costs and also be sold into the local Ketchikan market. Electricity or fuel for sale into the public Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 12 9/3/2008 market from the plant will supplement existing supplies. The proposed study will examine and discuss these market options and contrasting costs. 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. No effort has been made to study the existing fuel or energy market at present. The primary impact of the proposed project will be will be lower energy or fuel costs for products produced. This should translate into public savings and could have some market effect. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. The existing energy use in the Ketchikan market will be studied as part of the assessment portion of the proposed study. Excess production could be sold to the Borough or into the commercial market. Such an entry will provide lower cost electricity or fuel and could result in a major impact on energy customers. This type of analysis and the impact on the various market segments will be part of the next phase study. 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 Not applicable 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. Site location will be part of this study. 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 12 9/3/2008  Anticipated permitting timeline  Identify and discussion of potential barriers To be developed by this study 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 To be developed by this study 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 cost information will be developed by the next phase study. Any additional grant funding desired for the project will be determined once the proposed study is completed. Commercial market funds are available for these types of projects, AIDEA might consider participation in such an investment or some future grant funds may be desired. 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 operating and maintenance costs will be determined once the project scope and design are developed by the next phase study. The pro-forma plant operational financials will demonstrate that the plant should be self-sustaining economically. No grant funding is anticipated for operating and maintenance costs. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 12 9/3/2008 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 This information will be developed by a future feasibility study. 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. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 12 9/3/2008 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. The operating plan will be developed by the next phase study. At a minimum, with income from the feedstock inputs and from the sale of outputs, the projected cash flow of the proposed plant will show not only that the plant will sustain itself but that it should be very profitable. There are several possible business structures that might include ownership interests for a lender/investor. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. The purpose of the proposed study will develop the feedstock sourcing information that would underlie any analysis for the proposed project. Since this technology represents the state of the art waste conversion technology and provides the ultimate alternate energy solution to the environmental, air, and energy problems of our country, we believe this project should be supported in its entirety. 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 This information will be developed by any next phase study. Alaskans will benefit from lower municipal operating costs, cleaner air and much less pollution from waste. 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 Provide a narrative summary regarding funding sources and your financial commitment to the project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 12 9/3/2008 All potential funding sources for the proposed project will be developed as part of the next phase study. The initial study will advance this project and demonstrate the availability of feedstock to sustain a waste to energy plant in Ketchikan and to Alaska. Several commercial lenders have expressed an interest in participating in funding the actual project if Alaska does not elect to do so itself. 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 DONALD W. WEST Signature Title MANAGING MEMBER Date OCTOBER 5, 2008