DoD geothermal RFI AMD1.pdf

DLA Energy Request for Information – SP0604-22-0414 Amendment 0001

DLA Energy Request for Information – Department of Defense Geothermal Development

This Request for Information (RFI) is for market research purposes. The Department of Defense (DoD), through the office of Defense Logistics Agency Energy (DLA Energy) is seeking capability information from interested parties concerning the matters described below. In accordance with FAR 15.201(e), responses to this RFI are not offers and cannot be accepted by the Government to form a binding contract. This RFI is issued solely for information and planning purposes and does not constitute a request for proposals. Responses to this notice will be treated as information only.

All responses received may be held for an extended period of time or destroyed. In no case will any response be returned to the originator. DLA Energy will not reimburse respondents for costs incurred in responding to this RFI. DLA Energy is neither obligated to acknowledge receipt of the information received nor to provide feedback to responses. Responses to this RFI do not bind DLA Energy to any further actions related to this topic.

Background:

DLA Energy requests information concerning the feasibility of soliciting a firm-fixed-price renewable energy supply agreement (RESA) for geothermal energy for DoD use at the installations listed below. This list is not all-inclusive; respondents are encouraged to present any information regarding installations not featured in this list that might satisfy the intent of this RFI. DLA Energy desires to better understand potential geothermal or hybridized technologies, recommended contract term, expected cost and pricing, expected development sizing and resource availability, risks to developers (and suggesting risk mitigators the DoD can consider) in the development and sustainment of a geothermal resource. Examples of these risks include, but are not limited to, resource confirmation, environmental permitting, land lease and sub-surface rights, well head permitting, system degradation, operations and maintenance, impacts to surrounding lands, and any other relevant information.

The applicable North American Industry Classification Standard (NAICS) codes for this RFI are as follows:

221116 - Geothermal Electric Power Generation 221330 – Steam and Air Conditioning Supply

DLA Energy requests an assessment of utility-grade geothermal potential, including district heating and cooling potential, at all DoD installations and identification of locations for each military department where such a project has the highest potential for success. Respondents are expected to assess potential partnerships with local utilities to reduce risk and take advantage of economies of scale. On-site generation must be microgrid ready in accordance with the requirements of IEEE 1547. DLA Energy is considering use of the authority in 10 USC §2922a, Contracts for energy or fuel for military installations, which authorizes contracts up to 30 years in length for the provisioning and operation of energy production facilities on private property and the purchase of energy produced from such facilities, including construction.

Renewable Energy Credits (RECs) should be managed in a manner that maximizes the economic benefit to any proposed approach and these RECs may be retained by either the government or the developer, whichever provides the greatest economic benefit.

The following installations shall be considered for inclusion in the RFI response. This list is not inclusive; respondents are encouraged to include the potential of additional installations/sites:

Department of the Army:

• Fort Bliss with average demand of 33MW

• Fort Greely with average demand of 3MW

• Fort Wainwright with average demand of 7MW

• Fort Irwin with average demand of 8MW

• Fort Huachuca with average demand of 9MW

• White Sands Missile Range with average demand of 6MW

• Fort Carson with average demand of 16MW

• Fort Hood with average demand of 18MW

• Red River Army Depot with average demand of 7MW

• Fort Benning with average demand of 31MW

• Fort Bragg with average demand of 66MW

• Fort Polk with average demand of 16MW

• Potential for additional installations

Department of the Navy:

• Naval Air Station (NAS) Fallon, Nevada with average demand of 5MW

• Marine Corps Mountain Home Warfare Training Center, Bridgeport, CA

• Potential for additional installations

Department of the Air Force:

• Francis E. (FE) Warren AFB with average demand of 3.9MW

• Mountain Home AFB with average demand of 8.5MW (see Attachment 1)

• Joint Base (JB) San Antonio-Lackland (including Chapman Annex, Kelly Annex, and Port San Antonio), TX with average demand of 25.7MW (see Attachment 2)

• Eielson AFB, AK with average demand of 7.2MW

• Hill AFB, UT with average demand of 38MW

• Barksdale AFB, LA with average demand of 11.8MW

• Peterson AFB (including Cheyenne Mountain Complex), CO with average demand of 28.2MW

• U.S. Air Force Academy, CO with average demand of 14.5MW

• Schriever AFB, CO with average demand of 14MW

Submittal Requirements

DLA Energy requests a statement of interest on company letterhead demonstrating the respondent’s qualifications. Responses should be complete and sufficiently detailed.

Responses should not exceed 50 single-sided pages, including all attachments and should include:

1. A Company Profile to include: (a) Name and address; (b) Brief description of firm including the year the firm was established and number of employees; and (c) Names of two points of contact (including title, telephone number, and email addresses).

2. Detailed description of at least one commercially-operating or pilot demonstration geothermal project completed within the last five years by the respondent.

3. Description of the respondent’s experience in the geothermal market.

4. Information DLA Energy should provide to industry should it choose to solicit.

5. Answers to all of the questions in the Information Requested section below.

Information Requested:

1. Identification of attractive locations for geothermal power projects for each of the above military departments from a geothermal resource (i.e., temperature, depth, accessibility, etc.) and offtake perspective.

2. Insight regarding the potential for hybridized innovative geothermal technologies and expected costs associated with a potential procurement of geothermal energy for the facilities included, but not limited to, this RFI.

3. Minimum system size for each location where a geothermal project is viable. If the minimum system size exceeds the installation’s baseload, a discussion of how excess production would be handled.

4. A price estimate expressed in $/kWh. Do not provide detailed cost estimates.

5. Discussion of both market-tested and demonstration-type technologies.

6. Description of potential seismic activity, resource availability, surface land area requirements for placement of generating facility, potential environmental permitting requirements, well permitting, surface and sub-surface rights.

7. Description of the risk to the respondent and how the federal government might aid to mitigate these risks in the development and sustainment of a geothermal resource.

8. Discussion of how regulations affect how individual other market charges change over time.

9. Potential archeological issues.

10. Understanding of the type of geothermal power project proposed (e.g., flash steam, dry steam, binary system, advanced geothermal system (AGS), enhanced geothermal system (EGS), etc.).

11. Consideration of the potential of Direct Use Application where geothermal heat is used directly without involving a power plant or heat pump at aquifer temperatures between ~90˚F and 200˚F.

12. Recommended contracting mechanism (power purchase agreement, etc.) and acquisition timeline.

13. If the Government wished to be the project owner, would your firm be interested in serving as a fee developer? What kind of contract would be needed for ongoing operations of such an arrangement?

14. Discussion of tax credits and other incentives.

DLA Energy also encourages any additional information that would help to make a project of this scope viable to industry. DLA Energy will consider all information submitted in response to this request for information.

Business Sensitive, Proprietary, Or Otherwise Confidential Information:

Responses must be marked as proprietary or restricted data. Responses will not be shared with any other respondent. Respondents will not be notified of the results of the market research. DLA Energy may use responses to this RFI in creating a future solicitation. Not responding to this RFI does not preclude submitting a proposal in response to a future solicitation.

Response Date and Time:

Interested parties must provide the requested information by 3:00 PM EST, April 21, 2022.

Emailed submissions are acceptable, shall not exceed 50MB, and should be sent to dlaenergy.rteam@dla.mil. Please address the email subject line as, “Geothermal RFI SP0604-22- 0414_Company Name.”

Other contact information is as follows:

Primary point of contact:

DLA Energy Attn: Christopher Archer John J. Kingman Road Suite 3827 Fort Belvoir, VA 22060-6222 EMAIL: Christopher.archer@dla.mil

Secondary Point of Contact:

DLA Energy Attn: Cynthia Ralph John J. Kingman Road Suite 3827 Fort Belvoir, VA 22060-6222 EMAIL: Cynthia.ralph@dla.mil mailto:dlaenergy.rteam@dla.mil