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CWV/vO'%MULTISTRATA PROJECT
PHASE II,TASK 10 ALASKA
RESEARCH SUMMARY AND FIELD WORK PLAN
Compiled by Ron Brunk 11/8/94
The College of West Virginia has performed its preliminaryassessmentofAlaskancoalbasinsasdirectedbyPhaseII,Task
10.)of the Multistrata Research Project.Five (5%)target siteshavebeenidentified,investigated and prioritized.These sites,in order of priority,are Didmond Point,'Thompson Valley,Nenana/
Mento,Fort Yukon,and Rampart Trough.
The investigative process involved accumulating data through avarietyofmethods.Meetings were conducted with representatives
of federal and state government agencies,Alaskan native organi-
zations,and private coal and gas companies (see Data Source List
Pages 6-7).Maps,logs,drilling records,core data,and otherinformationwerestudiedandanalyzedinordertodeterminedrillsitesmeetingthepropercriteria.These criteria may bedescribedasfollows:The core hole shali
1)intercept coal greater than two ft.thick;
2)tap a field containing greater than two million tons of
coal in place;
3)be within a five mile radius of a town with population
qreater than 50;
4)be outside the existing Alaskan power grid;and
5)be accessible by waterways,roadways or air.
Following is a summary,in ascending order of priority,of each
of the five potential drill sites.
Rampart Trough
The least attractive of the five,the Rampart Trough is geologi-
cally inconsistent and unverifiable.Yhere are several old,
abandoned mines in this area from the early 1900's that have
collapsed.It is likely that methane in some of these areas has
been depleted.Other parts of this Trough show very poor gradecoalthatrequireswoodtomakeitburn.Coal data in general is
vague and inconsistent.The closest populations are also quite
small.
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Fort Yukon
Geologic indicators are good in this area with several potential
gas bearing coals,shales,and sandstones.The downside of this
potential target site is the amount of current and/or planned R&Denergyactivitiesinthearea.The energy needs of the villages
here are therefore not as severe as in the other target areas.
-
t
Nenana/Ménto
Nenana,the southern area,can be geologically classified as asmallnon-marine basin with only one potential trapping
mechanism.Two wells drilled by Union &Arco in 1962 and 1984
were dry holes but provided much of the data for this area.Both
wells had large coal gas shows.
The northern section,the Ménto area,shows an interesting
presence of organically rich coal in non-marine strata.
Unfortunately,most of the Nenana basin is within the existing
power grid.The coals of the northern section reaching outside
the power grid are purely speculative and completely unverified.
Thompson Valley (Chignik Area)
This area has several favorable geologic and coal relatedconditionsthatmakeitanattractivesite.It is located in the
north-central portion of the Chignik field.An old mine,the
Thompson Valley Mine,at one time mined a 6 to 14 ft.thick coal
zone,but the coals thinned,split and became unworkable.
Five drill holes were drilled in 1981 which formed a broadly
spaced:fence along the crest of McKinney Ridge.fIiole #1contacted2ft.of coal at 180 ft.depth,Hole #2 intercepted 8
ft.of coal at 175 ft.Hole #3 verified that coal deposition for
the area only occurred following the platform development
evidenced in the rclated sandstone.Hole #4 located coal at
323.8 ft.to 333.6 ft.and 370 ft.to 384.9 ft.Hole #5 was
drilled to 235 ft.depth and encountered no coal.
The main drawback to this site it its distance from population
centers.Pipelines or electric lines of some nature would have
to be constructed across several miles of difficult terrain.
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Diamond Point (Chignik Area)
This area extends south along the eastern shore of Chignik LagoonfromDiamondPointtoChignikFlatsandaboutonemileinland.In addition to an old mine,several excavation trenches provideddataonthiscoalhorizon.'The Chiygnik coal is of Cretaceous agewithreportsof7.8 ft.thicknesses.It is a highly volatile Bbituminouswithabout15%ash and a heating value of nearly12,000 btu.;
Coal company analysis performed in the early 1980's indicated apossibletons-in-place amount of greater than five million in theChignikRiverareabetweenDiamondPointandChignikFlats.Byacceptingaconservativefigureoffourmilliontonsinplace,we
can tentatively project possible recoverable methane gas
resources for the area.
Since there is no available data on gas content of the coals inAlaska(this project will provide the first such data),we will
utilize another conservative figure of 200 standard cubic feet
per ton of coal (scfpt).Assuming 200 scfpt,four million tons
of coal could yield 800,000 mcf of methane.With a 75%recovery
factor,600,000 mcf could be produced to provide heat and power
for nearby Alaskan villages.This amount of gas could provide
300 mefd,365 days per year for 5 and 1/2 years.
Diamond Point in the Chignik Lagoon area appears to be the mostattractivesiteforseveralreasons.
1)There is a confirmed presence of coal.
2)Prior mining and,research can serve as a foundation for our
work..i
.'t
3)Good relationships and communications have already been
established with the locals.
4)CWV has already obtained full support of the regional
authority,the Bristol Bay Native Corporation.
5)The natives in Chignik and Chignik Lagoon are within the fivemileradiusandhavegreatneedfortheenergythatthis
project could provide.
6)The population of Chignik Lagoon is about 70 during the winter
and 700 during the summer fishing season.
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OVERVIEW OF FIELD WORK PLAN
The College of West Virginia expects to barge the rig,casing andotherequipmentandsuppliestoChignikintheSpringof1995.The time frame for initiating this action will depend greatly ontransportationavailabilityandweatherconditions.The
importance of these factors cannot be overstated.'rherec must be
preparations allowing for all possible contingencies so that allsupplies/parts will be on hand and down time will be minimized.
CWV projects approximately six weeks for transportation ofequipment,supplies and crews to Chignik.Two weeks can be
expected for road/site clearing and camp building.About fourweekswillbeallottedfordrilling,coring,geophysical testing,
and analysis activities.
The College of West Virginia plans to drill one coring borehole(4-3/4"to 6-1/4"diameter)about one mile inland from Niamond
Point on Chignik Lagoon.The drilling operation shall be
performed by a small,truck-mounted pull-down rig.Total depth
is projected at 1500 ft.CWV shall perform a number ofgeophysicalanalysesincludingaseriesofelectriclogs to
determine formation type,porosity,and gas shows.Coal logswillalsoprovidevaluableash,sulfur,and water data.The
College shall also conduct gas content analysis on the coal cores
to determine gassiness of Alaskan coals.
/
A second hole may be drilled dependent upon availability of funds
and success of the first well.If the U.S.D.0O.E.,CWV and other
partners mutually agree to drill a second well,it may be drilledinthesamebasinoratoneoftheothcrfourtargetareas.With
both the first and second wells,a determination shall be made
within 72 hours of completion whether to plug or prepare the well
for production.
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the potential to cost effectively supply the rela-
tively small amounts of fuel needed for a rural
village power generation project.
Using coal or natural gas that is locally produced
creates local jobs.The funds to buy fuel stay in
the region instead of being siphoned off to out-of-
state suppliers of diesel fuel.Transportation cost
is the major contributor to the high cost of diesel
oil.Because of lower transportation costs,local-
ly-produced fuels should be lower in cost,which
in turn would reduce the cost of electricity and
heat for local residents.In Alaska,the legal
issues surrounding energy resource development
are relatively simple since the Native Corporations
typically own the energy resources on their land.
[This is unique to Alaska;in the lower-48,Native
Americans typically do not have rights to the
energy resources on their land.)
.Demonstrate the Capability and Versatility of
Coal-Fired or Natural Gas Fired Emerging Energy
Systems.
Over the past several years,DOE/METC has
supported R&D on small-scale power generation
technologies.Several of these technologies are in
the early commercialization stage and have the
characteristics needed by remote villages in
Alaska,i.e.,cost-effectiveness,low emissions,
reliability,standardized design,and the ability to
be factory fabricated.Technology options in-
clude:
¢Phosphoric Acid Fuel Cells (PAFC's).
PAFC's in the 200-kW size are ready for
commercial deployment.They can operate on
pipeline or lower quality natural gas and are
sold as prepackaged units.In addition to
electricity,PAFC's provide hot water for
heating or other uses.
*Atmospheric Fluid Bed Combustors (AFBC's).
AFBC's can use virtually any quality coal to
produce electricity and process steam.The
coal can be fed with minimal preparation.
The coal feed can be supplemented with waste
materials.AFBC's are currently commercial
in larger sizes.Small size AFBC's are in the
demonstration stage to prove their cost effec-
tiveness in these applications.
*Diesel engines fueled by Coal Water Slurry
(CWS).Diesel engines fueled with CWS are
entering the demonstration stage.A hot water
drying process to produce CWS is being
explored.Diesel engines with backend emis-
sion control have less than 1/10 NOx emis-
sions of uncontrolled engines operating on
diesel oil.Diesels can provide hot water or
steam,for heating or other uses.CWS-fueled
diesel systems are currently being demonstrat-
ed in DOE's Clean Coal Technology Program.
These fossil-based systems could be used in
hybrid systems that also incorporate renewable
energy technologies such as wind turbines,photo-
voltaic cells,or storage batteries.These renew-
able systems are being developed by DOE's
Office of Energy Efficiency and Renewable
Energy (EERE).Hybrid systems would provide
reliable operation independent of wind or sunlight
conditions.
.Provide a Mechanism _to Help U.S.Technology
Vendors Market Their Technologies in Developing
Countries Throughout the World.
Alaska is representative of many developing
countries in that it has a large number of remote
communities that do not have developed transpor-
tation systems (other than air)or electrical trans-
mission systems connecting communities.The
lack of roads or rail,and seasonally limited water
transport,makes it expensive to transport bulk
commodities such as fuel.The remoteness also
makes field fabrication of power systems very
expensive.Without a transmission system in
place,small dispersed power generation systems
capable of operating on local fuels are frequently
the most economic option.
The knowledge base that U.S.equipment vendors
develop by supplying small systems to Alaska is
applicable to many developing countries.Thus,
business information being developed as part of
projects implemented in Alaska will create busi-
ness opportunities for U.S.equipment and tech-
nology in the international market.
THE ALASKAN INITIATIVE
Status of METC's Initiative
To Demonstrate
Emerging Energy Systems
In Alaskan Villages
July 26,1994
THE ALASKAN INITIATIVE
GOAL OF THE ALASKAN INITIATIVE
The goal of the Alaskan Initiative is to demon-
strate emerging energy systems in rural villages in
Alaska.The energy systems would provide elec-
tricity.Additionally,they may provide heat or
steam for heating buildings and they may_c
dispose municipal waste.é fuel would be
(DOE),Morgantown Energy Technology Center
(METC)has been working closely with several
Alaskan Native Corporations,Alaska Government
officials,and U.S.vendors of small power genera-
tion equipment to initiate this activity.
BENEFITS OF THE ALASKAN INITIATIVE
1.Make _Affordable Emerging Energy Systems
Available to the Over 120 Remote Villages in
Alaska.
pnerey costs in remote villages arere currently ven
the summer season.Because of high transporta-
tion costs,electricity and fuel costs are 4 to 12
times higher than in the lower-48 states.The
State of Alaska subsidizes this high cost of elec-
tricity in rural villages.However,the revenue
source for this subsidy (a tax on crude oil ship-
ments through the Alaskan pipeline)is shrinking.
Thus,both the Native Corporations and the State
Government want to identify lower cost energy
systems for both electricity and heat production.
Demonstrate Low-Emission Systems that Can
very low emissions.Systems that have lower
emissions than those of uncontrolled diesel
generators are desired.
Alaskans also want energy systems that can help
alleviate current environmental problems with
leaking oil tanks and with municipal solid waste"Villages store a 1-to-1-5 years supply of-oil in
above-ground,bulk storage facilities which were
installed..by the Bureau of Indian Affairs in the,1940's and 1950's.aking tanksin these facili.-ties are creating major.'environmental and Safetyproblems:Replacing the tanks will cost $200 to
$400 million,exclusive of the cost to remediate
the current ground and water contamination.
Fewer tanks will need to be replaced if emerging
power systems fueled by natural gas or coal were
to be installed under the Alaskan initiative.The
risk of future ground or surface water contamina-
tion would also be reduced.
Disposal of municipal solid waste is an ongoing
problem in Alaska.Harsh weather conditions and
permafrost preclude the use of many of the dis-
posal options common to the lower-48.Thus,
energy technologies that have the flexibility to co-
dispose municipal waste are desirable.
.Create Local Jobs in Alaskan Villages.
Contribute Toward Integrated Solutions of Current
Environmental Problems.
»want the Alaskan environment to remainWspristineand,therefore,want energy systems with
Undeveloped coal and natural gas resources under
lay much of Alaska.Although Alaska has only
one operating coal mine (the Usibelli Mine in
central Alaska),it has vast untapped resources of
very low sulfur coal throughout the State.Many
rural villages are close to known,shallow coal
deposits.Most of Alaska's known natural gas
resources are located on the North Slope.In the
interior region,the geology indicates there is a
good potential for natural gas,although this has
not been confirmed by exploratory drilling.
Because of the vast amount of coal throughout the
State,the potential for coalbed methane is also
good.Thus,many Alaskan villages have coal or
gas resources located nearby.Many of these
resources are near the surface and,therefore,have
1)
patePtcngi
se *ectively supply the rela-
-ded for a rural
Amemw
energy reSOUICces v..
.Demonstrate the Capability and Vero...é
Coal-Fired or Natural Gas Fired Emerging Energy
Systems.
Over the past several years,DOE/METC has
supported R&D on small-scale power generation
technologies.Several of these technologies are in
the early commercialization stage and have the
characteristics needed by remote villages in
Alaska,i.e.,cost-effectiveness,low emissions,
reliability,standardized design,and the ability to
be factory fabricated.Technology options in-
clude:
*Phosphoric Acid Fuel Cells (PAFC'S).
PAFC's in the 200-kW size are ready for
commercial deployment.They can operate on
pipeline or lower quality natural gas and are
sold as prepackaged units.In addition to
electricity,PAFC's provide hot water for
heating or other uses.
°Atmospheric Fluid Bed Combustors (AFBC''s).
AFBC's can use virtually any quality coal to
produce electricity and process steam.The
coal can be fed with minimal preparation.
The coal feed can be supplemented with waste
materials.AFBC's are currently commercial
in larger sizes.Small size AFBC's are in the
demonstration stage to prove their cost effec-
tiveness in these applications.
*Diesel engines fueled by Coal Water Slurry
(CWS).Diesel engines fueled with CWS are
entering the demonstration stage.A hot water
drying process to produce CWS is being
explored.Diesel engines with backend emis-
sion control have less than 1/10 NOx emis-
sions of uncontrolled engines operating on
diesel oil.Diesels can provide hot water or
steam,for heating or other uses.CWS-fueled
diesel systems are currently being demonstrat-
ed in DOE's Clean Coal Technology Program.
These fossil-based systems could be used in
hybrid systems that also incorporate renewable
energy technologies such as wind turbines,photo-
voltaic cells,or storage batteries.These renew-
able systems are being developed by DOE's
Office of Energy Efficiency and Renewable
Energy (EERE).Hybrid systems would provide
reliable operation independent of wind or sunlight
conditions.
.Provide a Mechanism to Help U.S.Technology
Vendors Market Their Technologies in Developing
Countries Throughout the World.
Alaska is representative of many developing
countries in that it has a large number of remote
communities that do not have developed transpor-
tation systems (other than air)or electrical trans-
Mission systems connecting communities.The
lack of roads or rail,and seasonally limited water
transport,makes it expensive to transport bulk
commodities such as fuel.The remoteness also
makes field fabrication of power systems very
expensive.Without a transmission system in
place,small dispersed power generation systems
capable of operating on local fuels are frequently
the most economic option.
The knowledge base that U.S.equipment vendors
develop by supplying small systems to Alaska is
applicable to many developing countries.Thus,
business information being developed as part of
projects implemented in Alaska will create busi-
hess opportunities for U.S.equipment and tech-
nology in the international market.
WHAT HAS METC DONE SO FAR?
METC has been serving as a catalyst for this Initia-
tive by providing information on small power systems
to Alaskan Native Corporations and by networking
U.S.vendors of small power generation technologies
with these potential users in Alaska.Specific activi-
ties include:
1.
2.
Alaskan Feedback.
Over the past 3 years,METC has been conducting
both joint and individual in-depth discussions with
representatives from the Alaskan Native Corpora-
tions and from the Alaskan State Government.
METC continues to provide both groups with
information they require to make decisions on
what technological solutions best meet the needs
of Alaskan residents.
Workshop.
METC co-hosted a workshop sponsored by the
State of Alaska Department of Community and
Regional Affairs (DCRA)in Anchorage on May
17-18,1994.The purpose of the workshop was
to introduce alternative power systems to Alaska
and to educate vendors of power systems about
Alaskan issues.Over 130 people attended the
workshop including representatives from 20
different U.S.technology vendors and 53 repre-
sentatives from Alaskan Native Corporations,
village utilities,or Alaskan Governmental agen-
cies.The proceedings from the workshop are
available.
Cooperative Research and Development Agree-
ments (CRADA's),
METC has signed CRADA's with the Alaskan
Department of Community and Regional Affairs
(DCRA)and with the Doyon Native Corporation.
The primary purpose of these CRADA's is to
conduct screening studies and more detailed
feasibility studies of specific small power systems
in Alaskan villages.
Assessments.
As part of the Alaskan CRADA's,METC and its
CRADA partners are conducting (or will conduct)
6.
(ee
some levels of assessment for the installation of
emerging power systems at 15 different Alaskan
locations including Point Lay,Tok,Bethel,
Tanana,Chignik,Houston,Naknek,Nome,
Cordova,Angoon,Deadhorse,Thor Bay,
McGrath,Nikolia,and Fort Yukon.Assessments
also include the utilization of coal resources at the
Beluga field and Little Tonzona Creek as well as
providing an outlet for excess Liquified Petroleum
Gases from the Fairbanks,Valdez,and Nikiski
refineries.Figures 1 and 2 summarize these
activities.
Team Building.
METC has been actively developing teaming
arrangements for possible demonstration projects
in Alaska.Discussions have included all mem-
bers of a vertical integration energy supply team
including Native Corporations,State and Federal
agencies,well drillers,coal mine owners,utility
operators,and equipment vendors.
Coal Testing.
In support of the CRADA associated systems
studies discussed above,the University of Alaska
has conducted lab-scale testing of a potential coal
feedstock for a proposed Atmospheric Fluidized
Bed Combustion (AFBC)system for the village of
McGrath.The University is testing Little
Tonzana coal.Donlee Technologies is testing
30,000 Ibs of this coal in their AFBC pilot plant
in Pennsylvania.
Cooperation with DOE's Office of Energy Effi-
cient and Renewable Energy (EERE).
METC is closely cooperating with EERE on this
Initiative.In FY 94,METC assisted EERE in
reviewing the proposals they received in response
to a request for proposals to develop integrated
energy systems on Native American lands under
Article XXVI of the 1992 Energy Policy Act.At
METC's invitation,DOE/EERE participated in the
Alaskan Workshop.
Support Tasks with University of North Dakota
Energy and Environmental Research Center
(UNDEERC).
roaThe FY 94 Appropriation provided $250,000 for
UNDEERC's Jointly Sponsored Research Program
to support METC's Alaskan activities.As part of
this activity UNDEERC:
*Provided support for the recent workshop held
in Anchorage.
*Obtained cost-share funding from an Alaskan
Consortium to study the feasibility of building
a plant to produce a Low Rank Coal Water
Fuel (LRCWF)in Alaska.The original intent
was to use Beluga coal but now Usibelli coal
appears more feasible.The Consortium is
determining a location for a LRCWF plant.
¢Is conducting studies to determine the market
potential for CWF both in Alaska and in the
export market.
«Work with METC's Systems Analysis Group
to finalize in-depth assessments of four villag-
es with four advanced power systems.
9.College of West Virginia
Under its multi-strata completion contract with
METC,the College of WV will review existing
coal field data and if its findings are positive,drill
one test well in the Chignik region to assess the
potential of the coalbed methane resource.This
study is providing support to the potential demon-
stration of a Phosphoric Acid Fuel Cell (PAFC)
discussed below.
WHAT'S NEXT?
METC proposes to conduct three near-term demon-
strations to introduce emerging power generation
technologies to rural Alaskan villages.METC pro-
poses to demonstrate the following three technologies:
e A 200-kW Phosphoric Acid Fuel Cell (PAFC)
operating on natural gas in the Chignik region.
e«An Atmospheric Fluid Bed Combustion (AFBC)
system fueled by coal at a location to be deter-
mined in FY 95.
e A diesel engine fueled by Coal Water Slurry
(CWS)at a location to be determined in FY 95.
PAFC DEMONSTRATION
METC proposes to demonstrate a 200-kW PAFC
operating on natural gas at the village of Chignik.
Alternative locations are the villages of Naknek,
Houston or others yet to be identified.The fuel cell
would be supplied by ONSI Corporation,a joint
venture of International Fuel Cell.ONSI,together
with Enron Corporation,is offering long-term power
purchase agreements on ONSI fuel cells which do not
require the customers to bear up front costs,technolo-
gy risks,and maintenance costs.
In FY 94,an exploratory well will be drilled at
Chignik to assess the potential of using coalbed
methane resources to fuel the PAFC.If this test is
successful,in FY 95 detailed feasibility studies will
be conducted of the economics of drilling a full
production well at this village.The goal is to have
gas provided to a PAFC installed and producing
electricity by the time snow starts falling in Alaska in
1995 (early FY 96).
METC proposes to form a "virtual corporation”to
carry out this PAFC demonstration.An existing
contract between METC and the College of West
Virginia and a CRADA between METC and the State
of Alaska (DCRA)will be the principal mechanisms
to accomplish this project.Temporary partnering
arrangements with the State of Alaska's Division of
Oil &Gas,University of Alaska,Lapp Resources,
Inc.(an independent drilling firm in Alaska),and
ONSI Corporation have been arranged.The capabili-
ties and potential roles of these "Virtual Corporation"
partners is shown in Table 1.
Exploratory wells are required to verify and quantify
the gas resources in the areas of Chignik,Naknek,
and Houston.The gas resource assessments per-
formed by various agencies over the past 40 years in
Alaska do not provide the detailed information needed
to site a fuel cell.With this information,the final
selection of a site with a verified gas source for a
PAFC could be made.
The following breakdown of proposed funding as-
sumes a total project cost of $3.2 million to drill a
production well and to install a fuel cell at a village
such as Chignik.In FY 94,METC is drilling one test
well to assess the coalbed methane resources at
Chignik.This is being funded with $142,000 of Fuel
Cell Advanced Research &Technology Development
Component funds.(It is noted that at least two test
wells are needed at Chignik or any other potential site
to increase the confidence in the assessment.)Poten-
tial sources of FY 95 funding for the PAFC demon-
stration include the Fuel Cell Commercialization
Initiative,the Coalbed Methane Program,the State of
Alaska,equipment vendors,other industrial groups,
local municipalities,and the U.S.Department of
Interior,Bureau of Indian Affairs.
ATMOSPHERIC FLUID BED COMBUSTION
SYSTEM DEMONSTRATION
The economic feasibility of demonstrating AFBC at
specific village sites is currently being examined by
METC for both its CRADA partners.Under the
DCRA CRADA,DCRA and METC selected the
villages of Tok and Tanana as two probable locations
for an AFBC demonstration.This selection was
based upon input from the Anchorage workshop.A 5-
MWe project at Tok has higher priority because of
the active interest being shown by the local utility,
Alaska Power &Telephone (AP&T).AP&T has
applied to the Alaskan Department of Natural Re-
sources (DNR)for a lease on the local coal resources
at Jarvis Creek.
Under the CRADA with the Doyon Corporation,a
study of an AFBC at the village of McGrath is also
underway.The AFBC would co-fire Little Tonzona
coal and village wastes.A conceptual design of a 1-
MWe AFBC plant is being developed to a sufficient
level of accuracy (*,15%)to allow bank financing of
the project.To support the design activities,30,000
pounds of Little Tonzona coal and limestone were
mined by Doyon and shipped to the Donlee Technolo-
gy,a Pennsylvania boiler manufacturer,where it will
be test burned in a pilot AFBC.Design activities
should be complete in early 1995.
DIESEL ENGINES FUELED BY COAL WATER
SLURRY DEMONSTRATION
METC,with its CRADA partners,is investigating the
feasibility of a project to demonstrate the operation of
a coal-fueled 1.8 MW diesel.Cooper-Bessemer has
developed this technology for small power plants (1-
50 MW)and it appears ideal for Alaskan communities
that high delivered oil prices and access to a CWS
fuel production facility.The final cost estimates for
these possible AFBC projects are not completed.
Depending upon final site selections and size of the
plants,demonstration costs may range between $3 to
$15 million.Deciding if such an operation is cost
competitive with the current cost of subsidized oil-
fired diesel power generation will be a deciding factor
in siting an AFBC plant.Potential funding sources
include the Bureau of Indian Affairs of the Depart-
ment of Interior,Alaska Industrial Development and
Export Authority,Alaska Science and Technology
Foundation,private enterprise,and institutional
banking groups.
Four application are being investigated:
¢Residential and commercial power (Bethel,
Cordova,and Galena)
*Mining power (Beluga and Red Dog)
e Fish processing plant power (Kodiak and St.
George)
*Refining power (Valdez)
This project would be coordinated with the Alaskan
Consortium project to build a Low Rank Coal Water
Fuel production plant.Cooper-Bessemer's standard
CWS supplier (Coal Quality,Inc.)would work with
the LRCWF team to optimize the approach for
producing engine-grade CWS in Alaska.The estimat-
ed cost of a 1.8 MW,3-year demonstration project is
$18 million.
FUNDING FOR METC'S ALASKAN INITIA-
TIVE
METC's Alaskan Initiative is being conducted under
the broad auspices of Title XXVI,Indian Energy
Resources,of the Energy Policy Act of 1992.Section
2603 of this Title provides that "the Secretary of
Energy in consultation with the Secretary of the
Interior shall establish and implement a demonstration
program to assist Indian tribes in pursuing energy
self-sufficiency and to promote the development of a
vertically integrated energy industry of Indian reserva-
tions ...".For purposes of the Energy Policy Act,
"the term "Indian tribe'means any Indian tribe,band,
...,including any Alaska Native village or regional or
village corporation as defined in or established
pursuant to the Alaska Native Claims Settlement Act."
The FY 94 language included an additional $500,000
for UNDEERC to "support a study of electrical and
thermal energy service options to remote locations of
interest to the Alaskan Energy Authority and to
Alaskan Native regional and village corporations."
The FY 94 Conference language read "Within the
total overall for jointly sponsored research at
UNDEERC,up to $500,000 may be used for studies
of Alaskan energy service options,all of which must
be matched on at least a 50-50 basis by non-Federal
sources.
In FY 95,the Department has proposed $1,894,000
for a Native American Technology Transfer Program.
The FY 95 House language used this amount as an
offset to increase or to fund several cooperative
research and development programs including that at
UNDEERC.The Senate-passed language deleted
$894,000 from the Department's proposed program
and stipulated "The $1,000,000 remaining from the
Native American Energy Transfer Program is to be
used to support the Alaskan Village Energy System
Program already initiated with native corporations and
the Alaskan State Energy Office.Actual funding for
FY 95 is dependent on the language in the final FY95
Appropriations Bill.
CONCLUSION
METC is in the early stages of implementing an
Initiative to demonstrate emerging energy systems in
rural villages in Alaska.The benefits of this Initiative
are as follow:
*Make affordable emerging energy systems avail-
able to the over 120 remote villages in Alaska.
*Demonstrate low-emission systems that can
contribute toward integrated solutions of current
environmental problems.
*Create local jobs in Alaskan villages.
*Demonstrate the capability and versatility of coal-
fired or natural gas fired emerging energy sys-
tems.
e Provide a mechanism to help U.S.technology
vendors market their technologies in developing
countries throughout the world.
METC envisions that three demonstration projects of
emerging energy technologies will be conducted under
this initiative.Title XX VI,Indian Energy Resources,
of the Energy Policy Act of 1992 authorizes these
types of projects.METC is establishing teaming
arrangements with partners that are in a position to
help implement such demonstrations.These groups
include the Alaskan Department of Community and
Regional Affairs (DCRA),the Doyan Native Corpora-
tion,UNDEERC,College of West Virginia,
DOE/EERE,other Native Corporations,other State
and Federal agencies,well drillers,coal mine owners,
utility operators,and equipment vendors.These
organizations have the capability to establish "virtual
corporations"to conduct demonstration projects in
Alaska and to provide most of the required funding.
Because of its intimate knowledge of small power
generation technologies,METC is in the ideal position
to catalyze this activity.
°*Table |
CAPABILITIES AND ROLES OF "VIRTUAL CORPORATION”FOR A PAFC DEMONSTRATION
College of West Virginia
The College of West Virginia has programs in place developing technology to enhance the production of
natural gas wells.METC currently has a project with them to produce from coal seams by multi-strata
completion techniques.The College is interested in performing tasks related to the commercialization of
PAFC in Alaska.Particularly noteworthy is the experience that the staff has in Native American Indian
issues and tribal governments.
University of Alaska
The University of Alaska (UA)has two laboratories which can support a PAFC demonstration.The Mineral
Industry Research Laboratory (MIRL)conducts research to support the development of the State's mineral
resources including coal resources.The Petroleum Development Laboratory (PDL)conducts research to
Maximize the recovery and utilization of Alaska's petroleum and natural gas resources.Potentially,MIRL
and PDL can support this project by contributing faculty time and analytical services.UA may obtain
external cost share via sponsorship from Alaskan-based resources companies (e.g.,Amax,Usibelli,Arctic
Slope).
Alaska Science and Technology Foundation (ASTF)
Potentially,the ASTF could provide funding for a PAFC demonstration.However,the process for obtaining
funds can be lengthy and may not be appropriate for the first PAFC installation.The ASTF has connections
throughout Alaska and may serve as a technical resource for the construction and installation phase of the
project.
Alaska Industrial Development and Export Authority (AIDEA)
AIDEA finances and facilitates financing of industrial,manufacturing,export,and business enterprises and
facilities within the State.They also have the authority to own and operate facilities which advance this
goal.These economic development activities are particularly valuable for rural Alaska,where financing is
even more difficult to obtain than in the State's major cities.A prime example of AIDEA's potential
partnership in this activity might be through the analysis and support of loans that are submitted to the
State's Rural Development Initiative Fund,a program which provides loans for projects in rural communi-
ties.
Bureauof Indian Affairs (BIA),U.S.Department of Interior
Because the Alaskan Natives fall under the jurisdiction of the BIA,the BIA is a potential partner and could
be a source of funding.Interagency agreements between BIA and DOE would transfer the funds to METC
and facilitate distributing the funds to the appropriate State or industrial member of the "virtual corporation."
Enron/ONSI Joint Venture
Enron and ONSI have announced a joint venture that combines the power generation and marketing
expertise of Enron with ONSI's PAFC technology and customer service.The structure of an agreement
would be a long-term power purchase contract where the customer would bear no up-front cost.
er
on pe'
Figure 2,5 METC ALASKAN ACTIVILLES
DCRA DOYON FUTURE
CRADA CRADA EFFORTS
Anchorage Primary McGrath Tyonek
Workshop Studies FBC-ST Possible
CRADA
Pt.Lay Little Secondary ASTF
FC Tonzona Interest Possible
Coal CFD
Tok Nikolia
FBC-ST FBC-GT
Bethel Ft.Yukon
CFD FBC-ST
Tanana Secondary Bethel &
FBC Studies Calista
Chienil
FC
College of Coalbed Houston UNDEERC Beluga
WV Methane FC Co-op Agreement LRCWF
Naknek CRADA Export
FC Support Market
Nome Spinoff Alaska CFD
CFD Studies Market
Fairbanks Angoon
LPG Coal-FBC
Cordova Deadhorse
CFD,FBC FC
Valdez Thorn Bay
LPG FBC-ST
Fluidized Bed Combustor-Steam Turbine =FBC-ST
Fuel Cell =FC
Coal Fired Diesel =CFD
Fluidized Bed Combustor-Gas Turbine =FBC-GT
Alaska Science and Technology Foundation =ASTF
Liquefied Petroleum Gas (Propane)=LPG
Low Rank Coal Water Fuel =LRCWE
University of North Dakota Energy and =UNDEERC
Environmental Research Center