Engineering Support Services for Chicken Litter Fueled Power Project

Added: Jan 06, 2009 11:33 am Statement of Work

C1. The Rural Development Electric Program (EP), a division of the United States Department of Agriculture, Rural Utilities Service, is experiencing an increased level of interest in financial assistance for the construction of electric generation plants that utilize renewable energy resources. There is a need for engineering consultant services to evaluate an application for an electric generation plant fueled by woody biomass and organic waste.

C.2 Objectives:

A. The EP seeks to establish a contract for a period of a base year plus four (4) option years with an expert in biomass fuel-to-electricity conversion generation technology. This consultant will provide advice that will be used by the agency in its determination of whether or not the agency should issue a long term mortgage loan commitment to finance a 24 MW project located in the southeast region of the country, where the permanent loan will fund after the project, more fully described below, has demonstrated a requisite period of successful operation (the Project).

The EP seeks a consultant to review and authenticate the information submitted to the EP in the application received for the Project.

The EP seeks a consultant to assist the agency in developing appropriate conditions to be met prior to funding a long term loan for the Project. These conditions will be incorporated in the loan commitment documentation.

The EP seeks a consultant to act as a lender representative in monitoring the construction of the Project.

The EP seeks a consultant to advise the agency as to whether the conditions to funding have been met after the Project has been constructed.

A brief description of the project is as follows below:

C. 3 Background:

The EP mission is to provide reliable and affordable electricity which is essential to the economic well-being and quality of life for all of the nations rural residents. The EP provides leadership and capital to upgrade, expand, maintain, and replace Americas vast electrical infrastructure. Under the Authority of the Rural Electrification Act of 1936, the EP makes direct loans and loan guarantees to electric utilities to serve customers in rural areas.

The loans and loan guarantees finance the construction of electric distribution, transmission and generation facilities, including system improvements and replacements required to furnish and improve electric service in rural areas, as well as demand side management, energy conservation programs, and on-grid and off-grid renewable energy systems. Loans are made to corporations, states, territories and subdivisions and agencies such as municipalities, peoples utility districts, and cooperatives, nonprofit, limited dividend, or mutual associations that provide retail electric service needs to rural areas or supply the power needs of distribution borrowers in rural areas.

The EP promotes the Presidents National Energy Policy and ultimately the nations security by engaging the entrepreneurial spirit of rural America in the development of renewable energy and energy efficiency improvements. The RE Act authorizes the use of consultants funded by loan applicants or existing borrowers to facilitate timely action by providing specific engineering and/or fuel assessments and other studies or reports of applications made to the EP for financial assistance. See 7 C.F.R. 1789.

C.4 Scope:

The 24 MW biomass and chicken litter fueled power project is located in the southeast and will be fueled by wood waste originating from the following sources: redirected clean wood waste hauled to a local landfill site, sawmills, and building component industries, pallet mills, grinders, and chipper and independent wood fuel trucker-brokers. Chicken litter sufficient to comprise up to 20% of the fuel stream would be purchased on the open market within a 50 mile radius. The project technology will include a refurbished circulating fluidized bed boiler and 100% of the electric output will be sold to an electric cooperative.

Project specific engineering assessments and fuel assessments, as appropriate, may include, but are not limited to, the following: Advising EP concerning obtaining and evaluating supplemental information required for the underwriting process. Assessment of whether the project will perform as represented with respect to heat rate, availability and emissions. Assessment of the project fuel handling system. Confirmation that the physical characteristics of the fuel supply are consistent with the assumptions underlying the projected output for the project. Reviewing and assessment of the adequacy of plans for overhaul or modification and related cost estimates where the financing involves used equipment. Assessment of whether the hard project costs as represented in the application are reasonably accurate. Review and assessment of the adequacy and appropriateness of the interconnection plan Assessment of whether the plant startup and shakedown contingencies are adequately addressed. Review and assessment of the adequacy of proposed operation and maintenance plans, including scheduled overhauls, over the term of the loan. Assessment of the adequacy of the project staffing plan

Confirmation that ancillary requirements, such as water supply and wastewater discharge, are adequate. Review of the conditions precedent to funding, as developed by EP for a project loan and, based on consultant expertise, suggest appropriate recommendations or additional conditions. Review and assessment of documentation supplied by borrower to determine whether material submitted supports the release of loan funds consistent with conditions precedent to funding. The consultant will be expected to retain a fuel expert who has familiarity with the local fuel supply environment for the Project. The fuel assessment tasks will include, but are not necessarily limited to the following:

The identity of owners of the available and recoverable wood biomass. Assess the availability and cost of recoverable wood biomass fuel within a 100 mile radius of the power plant project. Provide a detailed description of physical characteristics of available recoverable wood biomass fuel, including moisture content. Develop a report of current utilization or disposal of existing recoverable wood biomass, including method and place of disposal and identify the person or company utilizing or disposing existing wood biomass.

A description of existing wood biomass residue collection and processing infrastructure within the study area. Include assessment of whether additional infrastructure will be required and what types of additional infrastructure will be required. Identification of existing or projected competing uses for available recoverable wood biomass fuel within the supply area. Identification of existing facilities competing with this facility for available recoverable wood biomass fuel and an assessment of the potential for additional facilities that will compete with the project. A review of the project developers fuel supply plan

A summary of trends in the local forest product industry, as applicable, that will influence the future availability and price of wood biomass in the project area. A summary of project risks related to fuel quantity and quality, fuel supply infrastructure, fuel price and competition for fuel. The summary of risks will include an effort to document the longevity and financial health of local paper product industry suppliers, where applicable. The identify of sources for all data reflected in the report