HomeMy WebLinkAboutCity and Borough of Juneau Waste Gasification Plant Recon Study App
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 1 of 13 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 13 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
Juneau, 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 13 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 JUNEAU WASTE GASIFICATION PLANT
RECONNAISSANCE STUDY -- Type of Project – Reconnaissance Study for a proposed waste
gasification plant project for the City and Borough of Juneau; 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
Juneau and its surrounding communities. The proposed plant project location is at the Juneau
Landfill currently owned and operated by Waste Management. The project will principally
serve Juneau 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 Juneau waste, landfill and sanitary sludge into electricity or fuel.
Preparation of the study will involve WFT Management Company, Robert Loescher, and Alaska
Recycling Energy in conjunction with Juneau 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 $95,000. The
required funds for this phase are being sought through this grant application. Further cost
estimates cannot be determined at this time.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 4 of 13 9/3/2008
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 Juneau area waste into energy will reduce its waste disposal costs, eliminate an
unlined landfill, save Juneau from the need to invest in a new incinerator to dispose of sanitary
sludge and 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 a
feasibility study and market factors. The project could eliminate the landfill, reduce long term
landfill monitoring costs, 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 energy
savings to the public and by reducing greenhouse gases provide clean air and 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. $ 95,000
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) $ 95,000
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 13 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.)
The proposed reconnaissance study is expected to take 120 days and not more than 150 days.
3.3 Project Milestones
Define key tasks and decision points in your project and a schedule for achieving them.
Key tasks will include meetings with the City and Bureau of Juneau, the Southeast Conference
and those towns and villages in the area that may direct their waste to the proposed facility. An
initial study of existing energy sources and rates will be included. These meetings will be subject
to the availability of necessary staff. Additional types of waste sources will be studied along with
the potential availability, such as medical waste. The goal is to determine potential feedstock
resources that would support a proposed plant.
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.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 6 of 13 9/3/2008
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.
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 on at least a
monthly basis.
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 Juneau 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 Eric Vance, Waste Management’s local manager of the landfill, Kim Keiffer,
Deputy City Manager for Juneau and with Shelley Wright, Executive Director of the Southeast
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 7 of 13 9/3/2008
Conference have been established by Mr. West who will be located in Anchorage. In Juneau,
Robert Loescher, former CEO of Sealaska, knows almost everyone in the area along with ARE's
attorney, Paul M. Hoffman. Given Mr. West's fifty years of experience in development, most
challenges at this stage should be manageable.
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 Juneau 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
Juneau 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 Juneau.
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.
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 8 of 13 9/3/2008
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
landfill, therefore existing energy systems information is not pertinent to this project. The energy
or fuel produced can be used by Juneau to lower its operating costs and also be sold into the
local Juneau market. Electricity or fuel for sale into the public 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 Juneau market will be studied as part of the assessment portion of
the proposed study. Excess production could be sold to the Borough, the military and 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 at this time.
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 proposed plant site is at the existing Juneau landfill located in Juneau. Discussions with its
owner, Waste Management, have indicated a willingness and desire to locate a waste to energy
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 9 of 13 9/3/2008
plant there and they have identified the preferred location on that landfill for a proposed plant.
Formal agreements have not been reached but since Waste Management desires to have an
interest in and operate the plant, land issues should not pose a problem. Access is fully
addressed since Juneau waste collection routes presently go there and need not be changed.
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
This list will 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
Since the proposed plant site is on an existing and permitted landfill, there are no environmental
or other constraints anticipated. The low profile of the proposed plant creates no
telecommunication, aviation, visual or other impacts. In fact, the plant design does not require a
stack so evidence of a waste treatment plant is not obvious.
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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 10 of 13 9/3/2008
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.
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 during and by the proposed 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 13 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 but it is expected that Waste
Management will be the operators. 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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 12 of 13 9/3/2008
project.
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 Juneau 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
Renewable Energy Fund
Grant Application
AEA 09-004 Grant Application Page 13 of 13 9/3/2008
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