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HomeMy WebLinkAboutAnchorage Geothermal District Heating Project Iceland America Energy App Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 1 of 25 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 25 9/3/2008 SECTION 1 – APPLICANT INFORMATION Name (Name of utility, IPP, or government entity submitting proposal) Iceland America Energy, Inc. Type of Entity: Independent Power Producer Mailing Address 707 Wilshire Blvd. Suite 4500, Los Angeles, CA, 90017 Physical Address 707 Wilshire Blvd. Suite 4500, Los Angeles, CA, 90017 Telephone 213-683-1700 Fax 213-943-6170 Email hiddat@icelandamericaenergy.com 1.1 APPLICANT POINT OF CONTACT Name Hildigunnur Thorsteinsson Title Project Manager Mailing Address 707 Wilshire Blvd. Suite 4500, Los Angeles, CA, 90017 Telephone 213-683-1700 Fax 213-943-6170 Email hiddat@icelandamericaenergy.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 AEA 09-004 Grant Application Page 3 of 25 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. Iceland America Energy (IAE) intends to do a reconnaissance study followed by a resource assessment and feasibility study on the use of geothermal energy as an energy source for heating and hot water for the town of Anchorage. Alaska’s geothermal reservoirs are some of the largest in the country and have great potential as a renewable energy source. Testing and research needs to be done to determine if Anchorage and vicinity, have adequate geothermal resources to provide Anchorage with direct-use hot water. 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. The reconnaissance study, followed by a more detailed feasibility study will analyze the feasibility of supplying the town of Anchorage, Alaska with heat from geothermal energy sources. IAE has signed a memorandum of understanding (MOU) with the Municipality of Anchorage to facilitate such a study. The Municipality of Anchorage has agreed to support the feasibility study efforts by providing information about the potential for geothermal energy use in Anchorage as well as right of way information. If the results of the feasibility study prove to be positive for development, IAE will work towards developing the project. 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. IAE estimates that the following funds will be needed to complete Phases I and II of the Anchorage Geothermal District Heating Project: Phase I – Reconnaissance Study: $235,200 Phase II – Feasibility Study: $8,107,610 In total Phases I and II are estimated to cost $8,342,810. This amount includes geoscientific, market and economic studies needed to determine whether a geothermal district heating system is feasible in Anchorage. IAE would supply 51% of the funding with the remaining 49% coming from the State of Alaska. The total cost through construction for the system is estimated at $1,070,000,000. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 4 of 25 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. A geothermal development project in Anchorage would provide multiple economic benefits to the Anchorage community and in so doing the State of Alaska. By developing a geothermal district heating system in Anchorage the cost of future thermal power will no longer be dependent on the in-stability of future fossil fuel prices, but instead will be based on an environmentally sound, reliable, long-term renewable source of thermal energy. With the rising costs of fossil fuels the stable geothermal prices will be an important benefit to the people of Anchorage. The system will reduce current natural gas emissions and promote and enhance development of renewable energy projects in Alaska. It will furthermore foster a partnership of private industry and local governments and provide new business opportunities in the community such greenhouse farming and spa tourism. The reconnaissance study will further assess and estimate the potential economic benefits to consumers in Anchorage. 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.) $1,070,000,000 2.5.2 Grant Funds Requested in this application. $4,047,230 2.5.3 Other Funds to be provided (Project match) $4,295,580 2.5.4 Total Grant Costs (sum of 2.5.2 and 2.5.3) $8,342,810 2.5.5 Estimated Benefit (Savings) TBD 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.) TBD Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 5 of 25 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. The project manager for the Anchorage Geothermal Project will be Mr. Roberto Agustin. Mr. Agustin is a Professional Mechanical Engineer (PME) with 25 years of engineering experience in the development, engineering, construction, commissioning as well as operation and maintenance of power plants. He has a B.Sc. in Mechanical Engineering from the National University, Philippines, a M.Sc. in Public Administration and a Certificate in Governmental Management from the University of the Philippines, and continuing education in Thermal Power Engineering, JICA, Japan and Wind Power Development conducted by COWI and RISO of Denmark. 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.) Renewable Energy Fund Grant Application IDTask NameDuration1Anchorage Geothermal District Heating System Phase I &II41 mons2Reconnaissance Study8 mons3Literature review2 mons4Evaluation of existing geoscientific data1 mon5Collection of market data1 mon6Evaluation of market data1 mon7Land rights analysis3 mons8Preliminary system design1.5 mons9Permit identification and scheduling2 wks10Environmental screening1 mon11Cost benefit analysis1.5 mons12Final evaluation and report1 mon13Recommendations0 days14Feasibility Study32.5 mons15Detailed geoscientific study6 mons16Field surveys4 mons17Data integration and survey evaluation2 mons18Detailed land rights study3 mons19Land acquisition6 mons20Availability of land0 days21Environmental Analysis6 mons22Exploration well15.5 mons23Drilling site selection1 mon24Well design1 mon25Permitting6 mons26Drilling RFP1 mon27Drilling3 mons28Temp. & press. measurements & flow test1 mon29Decision to move forward0 days30Market study6.5 mons31Collection and evaluation of load data1 mon32Conceptual system design2 mons33Preliminary PPA1.5 mons34Distribution system study2 mons35Cost benefit analysis2 mons36Final evaluation and business plan2 monsSepNovJanMarMayJulSepNovJanMarMayJulSepNovJanMarMayJulSepNovJan2009201020112012 Figure 1 Timeline for Anchorage Geothermal District Heating System Phase I & II AEA 09-004 Grant Application Page 6 of 25 9/2/2008 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 7 of 25 9/2/2008 3.3 Project Milestones Define key tasks and decision points in your project and a schedule for achieving them. Phase I - Reconnaissance Study: November 3, 2008 to June 12, 2009. • Collection and evaluation of existing geoscientific data: November 3, 2008 – January 9, 2009 • Collection and evaluation of market data: November 3, 2008 – December 26, 2008 • Final evaluation and report: May 18, 2009 – June 12, 2009 Phase II - Feasibility Study: June 29, 2009 to December 23, 2011 • Detailed geoscientific study: June 29, 2009 to December 11, 2009 • Environmental analysis: January 1, 2010 to June 25, 2010 • Availability of land confirmed: June 25, 2010 • Market study: June 28, 2010 to December 24, 2010 • Drilling of exploration well: May 16, 2011 to August 5, 2011 • Flow testing completed and decision to move forward: September 2, 2011 • Final evaluation and business plan completed: December 23, 2011 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. Project management will have a typical project structure. Overseeing the project is a steering committee. On it will reside a member of IAE management, geothermal experts and the project manager. The project manager will be in charge of all day to day activity in the project. The project manager will avail himself of the support of IAE’s CFO and CTO and their respective departments. It is expected that the design and procurement activities will largely be in the hands of technical consultants in Iceland and Alaska. Once the project is underway a site engineer will be hired to handle all operations on site. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 8 of 25 9/3/2008   IAE has signed an MOU with the Municipality of Anchorage to assess the feasibility of using geothermal energy in the city. This partnership will facilitate data collecting and provide IAE with essential local knowledge of the current infrastructure in place. IAE will also work with the Alaska Center for Energy and Power (ACEP) at the University of Alaska to develop this project. ACEP is dedicated to applied energy research focused on lowering the cost of energy throughout Alaska and developing economic opportunities for the State, its residents, and its industries. Their services will be very valuable in assessing the feasibility of a geothermal district heating system in Anchorage (see Appendix E). Along with its Alaska partners IAE intends to use its current group of consultants which include but is not limited to Geothermex, EMA, Icelandic Geosurvey, Fjarhitun, Thermasource and Dongell, Lawrence, Finney. 3.5 Project Communications Discuss how you plan to monitor the project and keep the Authority informed of the status. IAE will designate the Project Manager of the IAE Anchorage Project as the IAE point of contact between IAE and the Authority in to establish a clear path of communication between the two entities. A clearly defined path of communication will facilitate a common understanding of the project and its status between IAE and the Authority. On February 27, 2009 IAE will provide a progress report for the reconnaissance study work to the Authority. At the end of phase I a final Reconnaissance Report will be submitted to the Authority no later than two months after it is completed on August 12, 2009. Depending on the recommendations of the Reconnaissance Final Report, work on Phase II of the project, The Anchorage Geothermal Feasibility Report, will begin in late June 2009. Progress Project Steering Committee Project Manager Geoscience, Drilling & Reservoir Engineering Heat Balance Calc, Engineering & Procurement HV, Control & IT Engineering & Procurement Architectural Design Site Engineer Civil Design CFO CTO Figure 2 Project Management Structure Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 9 of 25 9/3/2008 reports to the Authority will be provided at every significant milestone including: • No later than two months after completion of the detailed geologic study – February 11, 2010 • No later than two months after land availability is determined – August 25, 2010 • No later than two months after the market study is completed – February 24, 2011 • No later than two months after the flow testing of exploration well is completed - November 2, 2011 At the end of phase II a Final Evaluation Report will be submitted to the Authority no later than two months after it is completed or on February 2, 2012. Please see Figure 3 for an outline of IAE’s progress deliverables to the Authority. ID Task Name 1 Phase I - Reconnaissance Study 2 Phase I 3 Progress Report I 4 Phase I Final Report 5 Phase II - Feasibility Study 6 Phase II 7 Progress Report I 8 Progress Report II 9 Progress Report III 10 Progress Report IV 11 Final Feasibility Report 2/27 8/12 2/11 8/25 2/24 11/2 2/23 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 Qtr 3 Qtr 1 2009 2010 2011 2012 Figure 3 - Communication Plan 3.6 Project Risk Discuss potential problems and how you would address them. The typical risk involved in a geothermal project includes exploration, development, market and regulatory risk. The rewards on the other hand include financial, environmental, marketing and total community well being. Geothermal resource risks that pose serious constraints on geothermal projects are normally limited to: • Low temperature • Poor permeability • Adverse chemical composition of geothermal fluid and effects due to pervasive acid Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 10 of 25 9/3/2008 magmatic fluids 1 • Fluid extraction in excess of resource capacity. To minimize the risk and at the same time maximize the sustainable use of the geothermal reservoir a wealth of geological information for that reservoir is needed. IAE will bring experienced and highly qualified scientists such as geologists, geochemists, geophysicists and reservoir engineers to analyze the potential resource and pin point drilling sites. The techniques that may be used to minimize the exploration risk include geological mapping, fracture or fault mapping, lithological mapping, tectonics, mineral alterations mapping, chemical sampling, geothermometry calculations, resistivity and seismic soundings and magnetic and thermal flux surveys. Technical risk in geothermal projects is the same as for other surface facilities. The main risk lies in false or underestimated design conditions and assumptions as well as unforeseen events. If the reconnaissance and feasibility study results are positive, IAE will minimize the technology risk by using qualified and experienced designers such as electrical, civil, mechanical engineers and architects, responsible for designing the facilities according to current US standards and ensuring that the project meets expectations and qualifications. Known and proven technologies will be used at all levels. To minimize the regulatory risk lawyers and business developers familiar with geothermal development in the United States and Alaska regulations will be responsible for all regulatory and legal issues. After full design is finalized the project will be contracted out to a qualified and experienced main contractor familiar with Alaska for plant construction. To mitigate the market risk IAE will enter into long term Power Purchase Agreements with major thermal users in the planned heating area. 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. IAE will target the Lower Susitna Basin and its vicinity as a potential geothermal energy source for a district heating project in Anchorage, Alaska. In the early 80s four wildcat wells drilled in the Basin encountered anomalously high temperature gradients of 41 °C to 123 °C/km suggesting that a low temperature geothermal resource might be present suitable for direct use utilization 1 General risks from: Barnett et al, Risk and risk management in geothermal exploration and development, http://www.unep.org/gef/content/pdf/32-Barnett%20et%20al.pdf April 12 2005. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 11 of 25 9/3/2008 (State of Alaska, Department of Natural Resources, 1989). Initial studies done by the Geophysical Institute in cooperation with the Alaska Division of Geological and Geophysical Surveys in 1982 concluded that “a substantial geothermal resource may be present in the Willow-Big Lake area”. It is however hard to estimate the possible size of the reservoir due to lack of geological, geophysical and geochemical data on the area. Large data gaps exist in the preliminary data collected in the early 80s and as a result the reservoir depths and thicknesses are presently unknown. The IAE Anchorage reconnaissance study will analyze the available geological data in detail to identify and estimate the reservoir potential as well as the survey efforts needed to confirm the existence, location and size of the geothermal resource. If the reconnaissance study results are positive IAE will research the area more thoroughly by conducting geothermal surveys including but not limited to resistivity analysis, thermal gradient holes and an exploration well. Currently 84% of Anchorage´s heating is provided by natural gas and 13% by electricity produced by natural gas and hydro resources. Unlike natural gas heating, geothermal heating does not produce any greenhouse gas emissions. Also, geothermal energy is isolated from price hikes in fuel unlike natural gas which is subject to natural gas availability and market prices. However, geothermal is dependent on the existence of a nearby geothermal reservoir. Consequently, detailed reservoir exploration has to be undertaken before developing a geothermal district heating system. 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. As mentioned above 84% of Anchorage heating is supplied by natural gas which is supplied by the natural gas company ENSTAR. Another 13% of households in the area use electricity supplied by Municipal Light and Power (MLP) and Chugach Electric Association to heat their homes. Finally 3% of households use other sources like wood to heat their homes (Institute of Social and Economic Research). The reconnaissance study will research the current energy environment in Anchorage in more detail. Questions that the study seeks to answer include but are not limited to: What is the current capacity of ENSTAR’s natural gas pipeline system and the availability of future natural gas reserves? What is the age and condition of facilities providing electricity for home heating in Anchorage? 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. Most of Anchorage’s energy for space heating comes from natural gas, either in the form of natural gas boilers for individual structures or to produce electricity for use on the electrical grid. Additionally hydro supplies some of the electricity used for heating. Geothermal will be a renewable addition to the area’s energy mix and will provide a new, sustainable source of heating and hot water for the community. It is to be expected that if a geothermal district heating system Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 12 of 25 9/3/2008 comes online in Anchorage some of that natural gas and electricity use will be displaced by geothermal energy. The reconnaissance study will analyze the current energy infrastructure in Anchorage and identify what effects a geothermal district heating system would have on that infrastructure. It will analyze what would need to be added or retrofitted if geothermal energy were to be used, how old the current infrastructure is and if there are replacement or upgrading plans on the table? The reconnaissance study will also estimate the costs of infrastructure changes, upgrades and construction needed to accommodate a geothermal district heating system and incorporate those estimates into the final economic analysis of the Reconnaissance Report. 4.2.3 Existing Energy Market Discuss existing energy use and its market. Discuss impacts your project may have on energy customers. Energy for home heating and electric use in the Anchorage area is supplied by three main utilities: Municipal Light and Power (MLP), Chugach Electric Association (CEA), and ENSTAR. MLP and CEA utilize both natural gas fired facilities and purchase electricity off the railbelt electrical grid to supply their customers with power while ENSTAR is a natural gas company. Currently, 84% of home heating in Anchorage comes from natural gas while 13% comes from electricity and 3% from other sources like wood (Institute of Social and Economic Research). Anchorage’s population reached 283,823 in 2007 a 0.2% increase from 2006. The Alaska Department of Labor and Workforce predicts that Anchorage’s population will rise to about 322,000 in 2020. With the support of the Municipality of Anchorage, IAE will analyze the space heating and hot water market in Anchorage. The study will seek answers to questions like what is the current Anchorage energy load for both heating and other hot water uses and what do the load curves for the community look like? It is anticipated that if a geothermal district heating project is found to be feasible for the town of Anchorage then at least some of the electric and natural gas heating markets in the city will be displaced by geothermal energy. Customers that before used natural gas or electricity to heat their homes and water will use geothermal instead. Geothermal energy will supply them with a sustainable, stable energy source that is not subject to market fuel prices. It will provide business opportunities by supplying a new, clean energy source that can be used for greenhouse operations, spas and aqua culture to name a few. The renewable and stable energy source also has the potential to raise property values for those who utilize the system as the property becomes isolated from fossil fuel market price fluctuations for space and hot water heating. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 13 of 25 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 Reinjection Pumps 110 l/s 23 MW16 MW 77°C 40°C 2 Projection Wells 2 Reinjection Wells 100 l/s 100 l/s40°C 77°C 95°C Circulation Pumps 7 MW [130°C] 70°C 85°C Energy meter Flow meter (2 GWh) (68 GWh) (70 GWh) 35°C [90°C] TC TC 85°C (Outdoor temperature compensation) 73°C Flow meter PC 110 l/s@ 50 mWg Peak load boiler 90 kW Circulation Pumps 110 l/s@ 5 mWg 30 kW 85°C70°C Central+pumps 110 l/s Heat Central: Estimated flow and temperature values shown at maximum power. Annual energy (GWh). 1585 gpm170°F 170°F 104°F1585 gpm104°F 95°F 158°F 158°F 185°F 35°C 185°F [266°F] [90°C] 185°F 163°F 1744 gpm 1744 gpm 54 BTU/h (232,000 BTU)77 MW (70 GWh) 23 BTU/h (6,824 BTU) Figure 4 One line diagram of system (temperatures to be confirmed) The reconnaissance and feasibility reports will explore the viability of a geothermal district heating in Anchorage. The technology used for geothermal district heating systems is mature and widely used. For example, in Iceland, about 90% of the space heating is provided by geothermal energy. Geothermal direct use systems do not need as high resource temperature as geothermal electricity production projects. The average temperature of US geothermal district heating systems is around 160 °F or about 70 °C. If found to be feasible the Anchorage Geothermal District Heating System will be comprised of a well field, a primary and secondary pipeline, a heat exchanger between geothermal fluid and distribution system, a natural gas boiler house to handle peak loading, pump houses and a pressure boasting and / or pressure separation station as seen in the one-line diagram in Figure 4. The energy produced from a geothermal system depends on the temperature and amount of flow of the geothermal fluid being utilized and the temperature drop of the geothermal fluid within the system. As the resource has not been explored in detail yet it is unfeasible at this time to predict Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 14 of 25 9/3/2008 what the optimum installed capacity or annual generation will be. However, Icelandic district heating technology maximizes the temperature drop in the system which allows for maximization of resource utility as well as higher efficiency and less strain on the resource. The anticipated capacity factor of the resource is 98%. For any district heating project to reach fruition, several basic criteria must be met. A serious deficiency in any one of these items will very likely result in failure of the project. These items include but are not limited to; 1. A quality resource. 2. Long term, secure, low cost land leasing and right of way. 3. A strong local support. 4. No legal or regulatory hindrances. The reconnaissance and feasibility studies will address whether a quality resource is available by doing a thorough analysis of the viability and capacity of potential geothermal resources in the area. It will also analyze the Anchorage market and determine the economic feasibility of the system. The studies will also address the important factor of integration into the current energy system in Anchorage to establish the economic viability of the system. 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 reconnaissance study will analyze land rights in the area of interest and identify owners and potential barriers to geothermal development in the area. IAE will utilize Right of Way information from the Municipality of Anchorage as a basis for that land rights analysis. If the results of the reconnaissance study are favorable a more detailed land rights study will be performed and land owners in the area of interest will be approached for mineral and land rights acquisition. 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 The reconnaissance study will identify the necessary permits needed to develop the project. It will also research the estimated timeframe and requirements to obtain those permits. If the reconnaissance study results are positive IAE will seek to obtain the necessary permits for geothermal exploration and drilling in the area as part of the feasibility 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 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 15 of 25 9/3/2008 • Archaeological and historical resources • Land development constraints • Telecommunications interference • Aviation considerations • Visual, aesthetics impacts • Identify and discuss other potential barriers In the case of geothermal power plants as is the case for every other power and/or energy production facility; associated environmental impact may be divided into the following main categories: 1. Surface disturbances; such as those caused during the plant construction (access roads, pipe and power lines, plant and associated land use) 2. Physical effects, e.g. the effect of fluid withdrawal on natural manifestations, land subsidence, visual effects (buildings, cooling towers, surface pipelines, power transmission lines) etc. 3. Noise, such as equipment noise during drilling, construction and operation 4. Thermal pollution, e.g. due to hot liquid and steam release on the surface 5. Chemical pollution due to disposal of liquid and solid waste, gaseous emission to the atmosphere etc. 6. Protection, such as ecological protection (fauna and flora) The impact level is very much development and locality specific, i.e. it depends upon the type of power conversion cycle, the implementation stage reached, geological conditions, topography and the characteristics of the resource being developed. The reconnaissance study will include an environmental screening for the area of interest. The screening will include research on indigenous species in the area, wetlands and protected areas, cultural issues, land development constraints, aesthetics and visual impacts and other potential environmental barriers that need to be addressed. If the reconnaissance study is positive IAE will perform a more detailed environmental analysis addressing the environmental mitigation efforts needed to minimize the environmental impact of the 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 AEA 09-004 Grant Application Page 16 of 25 9/3/2008 The cost for Phase I is estimated at $235,200 and the cost of Phase II at $8,107,610. IAE is requesting $4,049,230 in grant funding or 49% of the estimated cost of Phases I and II. IAE will contribute $4,295,580 in match funding in capital and in kind contributions. The total estimated project cost is $1,070,000,000 but that number will be further defined in the reconnaissance and feasibility studies. 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 of the project once the system is up and running are expected to be $21,400,000. The O&M costs will be funded by revenue in the form of sale of hot water for heating and domestic use in Anchorage. 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 The Muncipality of Anchorage, its businesses and residents are the potential customers of a district heating system in Anchorage. The reconnaissance and feasibility studies will identify in more detail what potential PPA’s could be negotiated and with whom. The potential energy price will be determined by the reconnaissance and feasibility reports. However, it is clear that the aim of the project is to supply the town of Anchorage with a reliable and affordable source of heat. IAE expects the price of heat will be in the range of $8 - $16 per mmBtu. 4.4.4 Cost Worksheet Complete the cost worksheet form which provides summary information that will be considered in evaluating the project. The following assumptions were used when preparing the project’s budget: Billing Rate Assumptions: Travel Assumptions: IAE Project/Technical Personnel $225 Round trip air to Anchorage $1,800 IAE Financial Support $125 Consultant per diem $325 IAE Marketing Department $185 IAE per diem $275 IAE CFO $375 IAE CEO $475 IAE Clerical Support $55 Technical Consultants $325 Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 17 of 25 9/3/2008 Financial Analyst $125 Landman $125 Legal $375 Cost estimates in the budget are based on in house experience, prior work and consultant price quotations. Estimates for geoscientific work are based on in house experience and price quotes from IAE’s consultants. Estimates for drilling and well testing are based on prior cost experience in other IAE projects. 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. IAE will use the extensive Icelandic geothermal district heating experience to develop the Anchorage project. Rigorous exploration of the area will establish the geothermal potential of the Lower Susitna Basin and its vicinity. A detailed market analysis will identify current energy prices in Anchorage along with possible market share. An economic analysis encompassing both the development of the resource and the construction of a distribution system will determine the viability of the project. If the feasibility study results are positive IAE will seek to use local expertise and workforce to develop the project in cooperation with IAE staff and consultants. It is important to include and cooperate with the Anchorage community to ensure a successful project. IAE has begun this process by signing a MOU with the Municipality of Anchorage to analyze the feasibility of supplying Anchorage with geothermal energy. IAE will develop a comprehensive business plan as a final deliverable of the Anchorage Geothermal District Heating Feasibility Study in Phase II of the project. 4.4.6 Analysis and Recommendations Provide information about the economic analysis and the proposed project. Discuss your recommendation for additional project development work. It is critical that a systematic and comprehensive geothermal resource evaluation is conducted in the vicinity of Anchorage to establish a basis for a geothermal district heating system in the city. Alongside the resource evaluation, an economic analysis and market study are essential to confirm the economic viability of the project. The IAE reconnaissance and feasibility reports will perform the necessary analysis to assess the feasibility of the project. Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 18 of 25 9/3/2008 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 Although it is impossible to estimate the potential annual fuel displacement or revenue of the potential Anchorage Geothermal District Heating System until after the completion of the reconnaissance and feasibility reports it is clear that the system has the potential to displace a significant amount of natural gas use in the community. Furthermore, the system would have numerous non-economic public benefits to Alaskans over its lifetime. Some of these benefits would be gained soon after a system becomes operational, while others will require a longer time period before a benefit is earned. A geothermal district heating system serving the largest population center in Alaska would promote a positive image of the town of Anchorage and the State of Alaska as a practitioner of a clean, sustainable energy planning and use. It would also isolate the town of Anchorage from fuel cost increases and ensure stable energy cost and energy supply. The primary reason for the district heating project is to provide an economic supply of energy suitable for space heating. The project will produce a long term stable source of energy not dramatically affected by events which produce changes in petroleum prices. Established geothermal heating districts, some with decades of operation, have proven this can be an economically competitive and reliable method of space heating, utilizing simple, proven technology at a low operational cost. Furthermore, by displacing natural gas, electric and wood space heating, a geothermal system would reduce gaseous and particulate emissions in the community. The development of the system would provide local employment during construction and permanent employment during operations. The system would also create and open up different upstream and downstream business opportunities such as greenhouses and aqua culture using geothermal energy. This could also make available locally grown vegetables and flowers year. A geothermal district heating system would make snow melting in streets, parking areas and sidewalks a very feasible option. The waste heat, remaining in the district heating system after space heating use, still has practical applications. One of these is snow melting on streets, parking areas, and sidewalks. A pipe coil with circulating geothermal fluid placed beneath these areas will melt the overlying snow. The benefits lie in reduction in collision hazards, improved walking conditions and reduction in the Town’s snow removal cost. Real estate values are another Town asset. Any real estate serviced by a reliable supply of heating energy at a stable cost, such as geothermal heating, will command a higher price than the same Renewable Energy Fund Grant Application AEA 09-004 Grant Application Page 19 of 25 9/3/2008 property without this feature. This value is judged not only in relation to surrounding property, but also to property in other competing areas. New construction and retrofitted older buildings will carry a higher value with the installed geothermal heating system. An inexpensive and abundant supply of thermal water will allow the year round heating of swimming pools and spas. If water quality permits, the natural thermal water can be used directly to fill pools and spas (after first extracting higher temperature heat for space heating), otherwise a heat exchanger can extract necessary heat. Hotel resorts can install thermal spas and bathing facilities. This translates into further economic benefits for the community and community. The Hot Spring Resort attraction will also create additional jobs and generate additional revenue. This entire benefit will be ancillary to the project’s main purpose which is district heating. An increase in tourism due to spas and other aspects of geothermal and additional light industry will expand the tax revenue realized by the community. Savings from space heating of public buildings and snow removal will further increase the revenue available to Anchorage. 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 IAE has signed an MOU with the Municipality of Anchorage to perform a feasibility study on the use of geothermal energy in Anchorage. In total a geothermal district heating system in Anchorage is estimated to cost $1,070,000,000. Work on the project is due to start at the beginning of November, 2008. To assess the feasibility of constructing such a system IAE intends to do a reconnaissance study followed by a feasibility study. The reconnaissance study is estimated to cost $235,200 while the more detailed feasibility study is budgeted at $8,107,610. IAE is seeking a grant in the amount of $4,047,230 from the State of Alaska to complete this work. The grant represents 49% of the total costs of phases I and II of the project. IAE will supply $4,295,580 or 51% of the needed funds. Renewable Energy Fund Grant Application AEA 09-004 Grant Application 9/2/2008 Appendix A Renewable Energy Fund Grant Application AEA 09-004 Grant Application 9/3/2008 Appendix B  Renewable Energy Fund   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 1 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. 98% or 8,585 hours a year Unit depends on project type (e.g. windspeed, hydropower output, biomasss fuel) 2. Existing Energy Generation a) Basic configuration (if system is part of the Railbelt1 grid, leave this section blank) i. Number of generators/boilers/other ii. Rated capacity of generators/boilers/other iii. Generator/boilers/other type iv. Age of generators/boilers/other v. Efficiency of generators/boilers/other b) Annual O&M cost (if system is part of the Railbelt grid, leave this section blank) i. Annual O&M cost for labor ii. Annual O&M cost for non-labor c) Annual electricity production and fuel usage (fill in as applicable) (if system is part of the Railbelt grid, leave this section blank) i. Electricity [kWh] ii. Fuel usage Diesel [gal] Other iii. Peak Load iv. Average Load v. Minimum Load vi. Efficiency vii. Future trends d) Annual heating fuel usage (fill in as applicable) i. Diesel [gal or MMBtu] ii. Electricity [kWh] TBD as part of study                                                              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   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 2 iii. Propane [gal or MMBtu] iv. Coal [tons or MMBtu] v. Wood [cords, green tons, dry tons] vi. Other Natural gas: 27,700,000 million cubic feet   3. Proposed System Design a) Installed capacity 1,470 MWt 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 Geothermal: 1470 MWt 4. Project Cost a) Total capital cost of new system $1,070,000,000 b) Development cost $8,342,810 (assumed to be cost of assessing feasibility of project) c) Annual O&M cost of new system $21,400,000 d) Annual fuel cost $0 5. Project Benefits a) Amount of fuel displaced for i. Electricity Not applicable ii. Heat Up to 27,700,000 million cubic feet of natural gas in addition to electricity used for heating in Anchorage iii. Transportation Not applicable b) Price of displaced fuel $8.57 per mmBTU and 9.476¢/kWh c) Other economic benefits Stable pricing independent of fossil fuel prices and new business opportunities d) Amount of Alaska public benefits Significant, exact amount to be determined in studies  Renewable Energy Fund   RFA AEA 09-004 Application Cost Worksheet revised 9/26/08 Page 3 6. Power Purchase/Sales Price a) Price for power purchase/sale $8.00 - $16.00 per mmBtu 7. Project Analysis a) Basic Economic Analysis Project benefit/cost ratio To be determined in reconnaissance and feasibility studies Payback To be determined in reconnaissance and feasibility studies Renewable Energy Fund Grant Application AEA 09-004 Grant Application 9/3/2008 Appendix C Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY: Phase I ‐ Reconnaissance StudyMilestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 Literature review $11,250.00 $11,250.00 $22,500.002 Evaluation of existing geoscientific data $11,250.00 $11,250.00 $22,500.003 Collection of market data $7,400.00 $7,400.00 $14,800.004 Evaluation of market data $6,075.00 $6,075.00 $12,150.005 Land rights analysis $7,500.00 $7,200.00 $14,700.006 Preliminary system design $21,125.00 $1,125.00 $20,000.00 $42,250.007 Permit identification and scheduling $5,187.50 $4,062.50 $1,125.00 $10,375.008 Environmental screening $12,812.50 $10,562.50 $2,250.00 $25,625.009 Cost benefit analysis $9,200.00 $9,200.00 $18,400.0010 Final evaluation and report $25,950.00 $2,350.00 $23,600.00 $51,900.00RFA AEA09‐004 Budget FormpMilestone # or Task #BUDGET CATAGORIES:12345TOTALSDirect Labor and Benefits $22,500.00 $22,500.00 $14,800.00 $12,150.00 $7,200.00 $79,150.00Travel, Meals, or Per Diem$0.00Equipment$0.00Supplies$0.00Contractual Services$7,500.00 $7,500.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $22,500.00 $22,500.00 $14,800.00 $12,150.00 $14,700.00 $86,650.00Page 1RFA AEA09‐004 Budget Form Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY: Phase I ‐ Reconnaissance Study continuedMilestone # or Task #BUDGET CATAGORIES:678910TOTALSDirect Labor and Benefits $2,250.00 $2,250.00 $4,500.00 $18,400.00 $47,200.00 $74,600.00Travel, Meals, or Per Diem$4,700.00 $4,700.00Equipment$0.00Supplies$0.00Contractual Services $40,000.00 $8,125.00 $21,125.00 $69,250.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $42,250.00 $10,375.00 $25,625.00 $18,400.00 $51,900.00 $148,550.00Summary Phase IRFA AEA09‐004 Budget FormyDirect Labor and Benefits $153,750.00Travel, Meals, or Per Diem $4,700.00Equipment $0.00Supplies $0.00Contractual Services $76,750.00Construction Services $0.00Other Direct Costs $0.00TOTAL DIRECT CHARGES $235,200.00Page 2RFA AEA09‐004 Budget Form Alaska Energy Authority ‐ Renewable Energy FundBUDGET INFORMATIONBUDGET SUMMARY: Phase II ‐ Feasibility StudyMilestone or Task Federal Funds State FundsLocal Match Funds (Cash)Local Match Funds (In‐Kind)Other FundsTOTALS1 Field Surveys $1,327,512.50 $1,290,012.50 $37,500.00 $2,655,025.002 Data integration and survey evaluation $27,000.00 $18,000.00 $9,000.00 $54,000.003 Detailed land rights study $21,350.00 $36,000.00 $57,350.004 Land acquisition ‐ documentation etc $14,900.00 $61,400.00 $76,300.005 Lease cost$100,000.00 $100,000.00Exploration well6 Drilling site selection $35,587.50 $26,587.50 $9,000.00 $71,175.007 Well design $26,000.00 $26,000.00 $52,000.008 Permitting $50,775.00 $41,775.00 $9,000.00 $101,550.00RFA AEA09‐004 Budget Formg9 Drilling RFP $9,000.00 $9,000.00 $18,000.0010 Drilling $1,750,000.00 $1,750,000.00 $3,500,000.0011 Flow Test $137,500.00 $137,500.00 $275,000.00Market study12 Collection and evaluation of load data $11,312.50 $1,312.50 $10,000.00 $22,625.0013 Conceptional system design $400,000.00 $400,000.00 $800,000.0014 Preliminary PPA $16,500.00 $7,500.00 $9,000.00 $33,000.0015 Distribution system study $21,062.50 $18,812.50 $2,250.00 $42,125.0016 Environmental Analysis $71,875.00 $65,125.00 $6,750.00 $143,750.0017 Cost benefit analysis $18,250.00 $18,250.00 $36,500.0018 Final evaluation and business plan $34,605.00 $2,625.00 $31,980.00 $69,210.00Page 3RFA AEA09‐004 Budget Form Alaska Energy Authority ‐ Renewable Energy FundBUDGET SUMMARY: Phase II ‐ Feasibility Study ‐ continuedMilestone # or Task #BUDGET CATAGORIES:12345TOTALSDirect Labor and Benefits $75,000.00 $18,000.00 $36,000.00 $61,400.00 $190,400.00Travel, Meals, or Per Diem $10,025.00 $6,350.00 $14,900.00 $31,275.00Equipment$0.00Supplies$0.00Contractual Services $2,570,000.00 $36,000.00 $15,000.00 $2,621,000.00Construction Services$0.00Other Direct Costs$100,000.00 $100,000.00TOTAL DIRECT CHARGES $2,655,025.00 $54,000.00 $57,350.00 $76,300.00 $100,000.00 $2,942,675.00Milestone # or Task #BUDGET CATAGORIES:678910TOTALSDirect Labor and Benefits $18,000.00 $18,000.00 $18,000.00 $54,000.00Travel, Meals, or Per Diem $8,175.00 $5,550.00 $13,725.00RFA AEA09‐004 Budget FormEquipment$0.00Supplies$0.00Contractual Services $45,000.00 $52,000.00 $78,000.00 $3,500,000.00 $3,675,000.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $71,175.00 $52,000.00 $101,550.00 $18,000.00 $3,500,000.00 $3,742,725.00Milestone # or Task #BUDGET CATAGORIES:11 12 13 14 15 TOTALSDirect Labor and Benefits $20,000.00 $18,000.00 $4,500.00 $42,500.00Travel, Meals, or Per Diem $2,625.00 $2,625.00 $5,250.00Equipment$0.00Supplies$0.00Contractual Services $275,000.00 $800,000.00 $15,000.00 $35,000.00 $1,125,000.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $275,000.00 $22,625.00 $800,000.00 $33,000.00 $42,125.00 $1,172,750.00Page 4RFA AEA09‐004 Budget Form Alaska Energy Authority ‐ Renewable Energy FundBUDGET SUMMARY: Phase II ‐ Feasibility Study ‐ continuedMilestone # or Task #BUDGET CATAGORIES:16 17 18 TOTALSDirect Labor and Benefits $13,500.00 $36,500.00 $63,960.00 $113,960.00Travel, Meals, or Per Diem $5,250.00 $5,250.00 $10,500.00Equipment$0.00Supplies$0.00Contractual Services $125,000.00 $125,000.00Construction Services$0.00Other Direct Costs$0.00TOTAL DIRECT CHARGES $143,750.00 $36,500.00 $69,210.00 $249,460.00Summary Phase IIDirect Labor and Benefits $400,860.00Travel, Meals, or Per Diem $60,750.00Equipment $0.00RFA AEA09‐004 Budget FormqpSupplies $0.00Contractual Services $7,546,000.00Construction Services $0.00Other Direct Costs $100,000.00TOTAL DIRECT CHARGES $8,107,610.00Summary Phase I & II Total State of Alaska IAEPhase I$235,200$110,250$124,950Phase II $8,107,610 $3,936,980 $4,170,630Total Cost of Phase I & II$8,342,810$4,047,230$4,295,580Percentage Share in Total Cost 49% 51%Page 5RFA AEA09‐004 Budget Form Renewable Energy Fund Grant Application AEA 09-004 Grant Application 9/3/2008 Appendix D Renewable Energy Fund Grant Application AEA 09-004 Grant Application 9/3/2008 Appendix E Alaska Center for Energy and Power • University of Alaska Fairbanks • 814 Alumni Drive P.O. Box 755910 • Fairbanks, Alaska 99775-5910 • Tel: (907) 474-5402 • Fax: (907) 474-5475 October 6, 2008 Hidda Thorsteinsson (213) 683-1700 Iceland America 707 Wilshire Blvd Ste 4500 Los Angeles, CA 90017 Dear Ms. Thorsteinsson; The Alaska Center for Energy and Power is pleased to participate in your proposal to the Alaska Energy Authority to conduct a reconnaissance and feasibility assessment of geothermal district heating options for Anchorage. We believe the geothermal resource potential in the Mat-Su centered near Willow is worth further investigation. Through simple bottom-hole temperature measurements of existing wells and other basic investigation techniques, a better picture of both the spatial extent and potential available heat can be constructed. In the time since the last fieldwork was conducted in the region, a large number of new constructions have been built, and there is a tremendous amount of data available from water wells throughout the area. By conducting a low-cost initial reconnaissance study as we have proposed, we believe Iceland America will be in a better position to determine cost effective next steps in the overall program you have outlined. Sincerely, Gwen Holdmann Organizational Director Alaska Center for Energy and Power University of Alaska Fairbanks Gwen.Holdmann@uaf.edu (907) 590-4577