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HomeMy WebLinkAboutTok School CHP redesign and build 3428-1634 AEA ConceptPaper 2025 3428-1634_Alaska Energy Authority_Concept Paper 1 Project Title: Tok School CHP Re-design and Build OCED eXCHANGE Control Number: 3428- 1634 Applicant Name: Alaska Energy Authority Applicant Entity Type: State Government Topic Area of Application: Topic Area 3 Project Location(s) by City, State, and Zip Code+4: Tok; Anchorage; Niskayuna Alaska; New York 99780; 99503; 12309 Population and Census Verification of Project Location and/or Directly Benefitting Community or Communities: https://data.census.gov/profile/Tok_CDP,_Al aska?g=160XX00US0277800 Census Tract(s) Directly Impacted by Project: (Please separate tracts with commas) 000100 Project Technologies (Select up to 5 from this list: solar, battery energy storage system, wind, water power, geothermal, biomass/biofuels, microgrids, transmission or distribution, energy efficiency, converting fossil fuel–powered equipment to electric, repowering existing renewable energy systems, dual-use, other): (Please separate technologies by commas) Biomass combined heat and power One-Sentence Project Description: This project will redesign and upgrade the existing biomass combined heat and power system to fully integrate into a solar-battery- multiport converter project. Team Member Organizations: Alaska Energy Authority, Alaska Gateway School District, GE Vernova Research Do the proposed recipient and all subrecipients qualify as domestic entities*? ☐ Yes ☐ No: Yes Points of Contact Name Email Phone Number Demonstration Project Manager: Sean Arcilla Sarcilla@akenerg yauthority.org 907-771- 3041 Business Point of Contact: Curtis Thayer CThayer@akener gyauthority.org 907-771- 3000 Confidentiality Statement (if applicable): Total DOE Funding Request ($M USD): $2,000,000 Total Non-Federal Cost Share ($M USD): $106,000 Total Project Costs ($M USD): $2,106,000 Total Period of Performance (yrs): 3 3428-1634_Alaska Energy Authority_Concept Paper 2 Technical Solution The Alaska Energy Authority (AEA) in partnership with the Alaska Gateway School District (AGSD) and General Electric (GE) Vernova will re-design and construct the woodchip fired combined heat and power (CHP) system at the Tok School. The re-designed CHP will integrate with the planned GE Vernova 46kW solar photo-voltaic array, 375 kWh battery energy storage system, and 375 kw multi-port converter creating energy independence for the Tok School. The Tok School, which serves approximately 200 K-12 students in Tok, Alaska faces some of the highest energy costs in Alaska for both electricity and heating oil. In September 2024, the Tok School's electric rate was $0.32/kWh, compared to the 2023 national average of $0.12/kWhi 1, and $4.15 per gallon of heating oil, compared to the national average of $3.46 per gallon2, per US Energy Information Administration data. The school currently has a combined heat and power (CHP) system that requires a re-design and modernization to run properly. The system is currently not generating power because it lacks the proper fail-safe systems that allow the power generation to tie into the local microgrid, which is owned and operated by the local electric utility, Alaska Power and Telephone. Currently, the CHP system cannot generate power because it lacks the fail-safe systems needed to connect to the Alaska Power and Telephone microgrid. Without on-site power generation capabilities, the school spent $212,241.47 in 2024 for electricity costs. The current woodchip fired boiler generates steam that can be sent to one of two power generation systems – a steam engine or steam turbine. The steam engine is from the early 1900s and requires custom fabrication for any replacement part. The steam turbine uses analog controls and requires constant operation to run. Additionally, the condenser system is located within the garage of the building. To properly use the condensers, the garage doors must remain open, which eliminates the use of the garage for maintenance on rolling stock when ambient temperatures are -40 degrees Fahrenheit in the winter. When the doors are closed, the condensers experience 'heat soak' and are unable to sufficiently cool the steam. As a result, when this superheated steam enters the heat exchanger, it can overheat and degrade the glycol used in the loop that provides heat to the school and greenhouses. The goals of the re-design and CHP project are as follows: • Re-design the power generation system and condenser system 1 https://www.eia.gov/electricity/state/ 2 https://www.eia.gov/dnav/pet/pet_pri_wfr_a_epd2f_prs_dpgal_w.htm 3428-1634_Alaska Energy Authority_Concept Paper 3 • Install a 120kW modern turbine with updated digital controls to replace the steam engine and steam turbine • Incorporate remote monitoring for electrical systems and thermal systems for buildings • Improve the condenser system efficiency and operation • Integrate with the GE Vernova Solar PV, BESS, multiport converter project • Integrate the CHP to the grid with an Interconnection Agreement with Alaska Power and Telephone Business Case The proposed CHP project will lead to complete energy independence for the school. When utilized as a system, the steam turbine, solar PV array, BESS, and multiport converter will offset all electricity and heating needs for the school. AEA utilized the economic model from its Renewable Energy Fund Grant program to assess this project’s Benefit-Cost Ratio (BCR) and overall economics. The analysis yielded an expected net present value (NPV) of $559,074 over the 20-year life cycle of the project, and an overall BCR of 1.25, indicating a financially justifiable project. The synergy between the CHP, BESS, and Solar PV array will offset 458,160 kWh of electricity, 102,652 gallons of heating oil, and 1,046 tons of CO2 annually. AEA will provide the 5% cost share requirement on behalf of the AGSD. The AGSD will maintain the system with in-house staff paid for by their operational budget and savings from electricity and heating oil costs. Tok, AK sits at the end of the agricultural supply chain where fresh produce is a rarity. The CHP project will support and enhance the school’s existing greenhouse program. This program provides food security with fresh fruit and vegetables to the school for the nutritional benefit of the students, with excess produce sold to the local businesses and residents. The school district recently secured a produce contract with the Manh Choh Mine, a joint venture between Kinross and Contango ORE. By integrating biomass CHP with solar and storage, the Tok School will achieve energy independence, reduce costs, and improve reliability while serving as a model for other rural Alaskan communities. Team Sean Arcilla, Project Manager - Program Manager, Alaska Energy Authority: Sean serves as the co-lead of the Alaska Wood Energy Development Task Group (AWEDTG) and the co-lead of the Alaska Biofuels Advisory Group. Sean has provided technical assistance to communities and implemented operator and maintenance training for communities across the state. AEA and the AWEDTG have completed 10 preliminary feasibility studies that lay the foundation for engineering design and construction. He holds a BS in Systems Engineering from the United 3428-1634_Alaska Energy Authority_Concept Paper 4 States Military Academy and is an MBA candidate at the University of Washington's Foster School of Business. Josephine Hartley, Renewable Energy and Energy Efficiency (REEE) Program Manager, Alaska Energy Authority: Josi has over eight years of project management experience. As the REEE Program Manager, she oversees the biomass, wind, electric vehicle, and energy efficiency programs. She has a BS in Petroleum Engineering from the University of Alaska - Fairbanks. Most recently, she was responsible for the development of the Alaska National Electric Vehicle Infrastructure program that has $52,000,000 in funding. Audrey Alstrom, Renewable Energy and Energy Efficiency Director, Alaska Energy Authority: Audrey has over 14 years of project management experience. As the REEE Director, Audrey oversees all renewable energy and energy efficiency development and acts as agency representative during outreach. Most recently, Audrey drafted the Alaska State Energy Security Plan. She has a BS in Civil Engineering from the University of Alaska - Anchorage and MPA from the University of Washington's Evans School of Public Policy and Governance. Additionally, she holds her Professional Engineer certification in civil engineering. Quinlan Harris, Project Manager, Alaska Energy Authority: Quinlan holds a BS in Mechanical Engineering from the University of Alaska - Anchorage. In his capacity at AEA he contributes to project management activities across the wind, electric vehicle, and biomass programs. He manages projects within the Renewable Energy Fund with a total value of over $8,400,000 Pamela Ellis, Controller, Alaska Energy Authority: Pamela has served as the Controller for the Alaska Energy Authority (AEA) for the past two years. In this role, she oversees all financial operations, including the preparation and management of AEA’s audited financial statements and Single Audits for Fiscal Years 2023 and 2024—both of which reported no audit findings. She is responsible for overseeing and managing all finance-related functions within the organization. Prior to joining AEA, Pamela spent over 16 years with the Municipality of Anchorage’s Controller Division, where she served as Assistant Controller and frequently acted as the Interim Controller. During her tenure, she led the preparation and audit of 16 Annual Comprehensive Financial Reports (ACFRs) and Single Audits, all of which received unmodified opinions. Additionally, every ACFR submitted to the Government Finance Officers Association (GFOA) earned the Certificate of Achievement for Excellence in Financial Reporting. Pamela was also responsible for managing the monthly and fiscal year-end close processes for all of the Municipality’s financial systems. She played a key leadership role in a major enterprise resource planning (ERP) system conversion to SAP, overseeing the implementation of the General Ledger, Projects, Fixed Assets, and Costing modules over an eight-year period, culminating in a successful system launch. Before her role as Assistant Controller, Pamela spent five years in the Municipality’s Controller Division, holding positions as a Reconciliation Accountant, 3428-1634_Alaska Energy Authority_Concept Paper 5 Grant/Capital Project Accountant, and Fund/Reconciliation Accounting Supervisor. Pamela holds a Bachelor of Arts in Accounting with a minor in Management from the College of Saint Benedict in St. Joseph, Minnesota. She has also completed accredited graduate coursework in Data Warehousing and Business Intelligence at the University of Alaska Anchorage. A longstanding member of both the Alaska Government Finance Officers Association (AGFOA) and the Government Finance Officers Association (GFOA), Pamela actively participates in professional development opportunities, including GFOA GAAP updates and annual AGFOA conferences, ensuring she remains current on evolving GASB and audit standards. Ibrahima Ndiaye, Senior Principal Engineer, GE Vernova Advanced Research: Dr. Ndiaye is a Senior principal engineer and an Electrification Mission Leader at GE Vernova Advanced Research. He has over 18 years of experience in power systems and high voltage engineering. He led the GE Research’s Power Electronics organization with a team focusing on developing the next generation of power converters and controls for electrified aircraft propulsion, grid, and healthcare applications. Dr Ndiaye’s research interests include DC grids, flexible power transformers, microgrids, and renewable energy resources integration to grid. He authored and co-authored over 25 scientific papers for referred journals and conferences and several technical reports for utility customers. Dr Ndiaye received his Ph.D and a master's degree in electrical engineering from University of Quebec at Chicoutimi. He is a professional engineer registered in the Ordre des Ingenieurs of Quebec. He holds five US patents and several patent disclosures. Dr. Ndiaye is also the CIGRE US National representative for Study Committee D1 – Materials and Emerging Tests Techniques. Anthony Lee, Biomass Coordinator, Alaska Gateway School District: Tony’s job entails day to day operations of the CHP system, fuel procurement, system maintenance, and forest harvesting projects. His scope includes management of the biomass heated greenhouse program and summer district construction management. Project Plan Project Work Activities and Tasks • Project Management - AEA will provide the overall project management • RFP Development - AEA, AGSD, and GE Vernova will collaborate to develop the budget, scope of work, and timeline for the RFP for a design-build contract • Design - the selected contractor will provide a design for the updated system • Construction - AEA and AGSD will provide project management for the construction phase • Establish interconnection agreement with AP&T 3428-1634_Alaska Energy Authority_Concept Paper 6 • Develop the framework for a Power Purchase Agreement and Independent Power Producer Contract between AGSD and AP&T The project has a three-year timeline that will occur in three phases: • Phase 1 - Negotiations and Planning: April 2026 - June 2026: This phase will begin upon receipt of a formal notice of intent to award and end when AEA, AGSD, and GE Vernova select a contractor in response to a Request For Proposals for a Design-Build Contract. • Phase 2 - Design: July 2026 - April 2027: This phase will begin upon contractor selection and bid acceptance, and end upon acceptance of 100% design report. • Phase 3 Construction May 2027 - July 2029: This phase will begin with AEA issuing a Notice To Proceed to the selected contractor and end with the system commissioning. Progress measurement via key milestones: • Phase 1 - RFP Development, Contractor Selected • Phase 2 - 65% Design & 100% Design • Phase 3 - NTP issued to contractor, procurement complete, turbine installation, condenser installation, controls integration, signed Interconnection Agreement, integration with GE Vernova project Risk Management Plan Risk Risk Level Mitigation Residual Risk Labor Shortages High AEA will work with the selected design- build contractor to plan for sufficient time to procure construction labor force. Medium Project Delays Due to Weather Medium AEA plans to utilize two summer construction seasons to ensure project completion Low Community Commitment Medium AEA will ensure the AGSD school board is committed throughout the economic life of the project by maintaining continued close collaboration. Low Supply Chain Delays High The segmentation of the project into two phases, planning and design, and construction/commissioning provides sufficient project time to account for potential delays. Medium Interconnection Agreement; Power Purchase Agreement (PPA) High AEA & AGSD will work in close coordination with the local utility concerning an interconnection and PPA for the project. These agreements are not a requirement for operation of the project as the project can meet all school load demand requirements, with excess power being stored “behind the meter” with the BESS Low 3428-1634_Alaska Energy Authority_Concept Paper 7 system, available for use during peak load times or for sale back to the utility under a PPA. Community and Workers AEA and the AGSD have a long working history from the initial planning of the woodchip powered biomass heating system. As further evidence of AEA and AGSD’s close cooperation, AEA has funded three other projects within the AGSD. The proposed system will belong to the AGSD while AEA provides the project management capacity during the design and construction phases of the proposed project. The future success of this project will serve as a working model as to the potential capabilities of wood heating and combined heat and power systems for other rural and remote communities. The AGSD plans to develop a career technical education program from the savings following the CHP system upgrades. This project will support the development of a renewable energy centric pathway that focuses on biomass and solar projects. Additionally, the augmentation of food production via existing greenhouse projects will address existing issues concerning food security for the greater community. With a limited population, an increased demand for wood could strain the available harvesters. To mitigate the risk in fuel supply, AEA in partnership with the Alaska Wood Energy Development Task Group, will work to develop systems to build efficiencies into the local wood harvest plan.