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Saturday, January 17, 2015

Press Release - ALASKA


Press Release: SMPP(California) is in the process of negotiating a “Memorandum of Understanding” with a well-known gas turbine manufacturer to build 4-Skid Mounted Turn Key 820Mw Simple + Combined-Cycle gas fired power plants to be sea lifted to Prudhoe Bay beginning in 2018. According to SMPP spokesperson Mike Kelly, SMPP is also preparing negotiations with the “State of Alaska” authorities to enter into a long-term “Gas Sales” contract, in efforts to utilize the state's share of “Royalty” natural gas stranded in Prudhoe Bay. This “gas” will be used to power the turbines and produce electricity that will then be delivered to Alaskan households and commercial enterprises throughout the interior, rail-belt and river districts. The project also calls for erecting a delivery “Grid” with approximately 2000-miles of 230Kv transmission lines in a redundant and robust design to provide a service factor of 100%. SMPP plans to build the “All Alaskan Natural Gas Electrical Transmission System” infrastructure at a cost of $8.5-Billion through the selling of “Municipal Grade Bonds” approved by the Alaska State Legislature, through the Alaska Rail Road Corporation. This project will finally deliver “clean” and affordable “electricity” to the Interior, South-central, Rail-belt, Military Installations and 13-villages along the Yukon River under a single “Utility” authority. Several Alaskan Native Corporation have already expressed an interest as the receivers of such “Bonds”, as this project benefits many of the shareholders who are today paying outrageous energy costs. The capacity of the system will allow a majority of the household and commercial heating needs to be generated from electric space heaters along with electric water heaters. This is a “Green Star” project, and will allow many of the existing polluting power plants fired by coal to be “shut-down”. Initial start-up is scheduled for 2019. It is estimated that the construction phase of this project will employ well over 4600 craft and professionals and last approximately 4-years. By using the “Bonds” as a ways and means to fund this long awaited project, the cost to consumers spread over the entire customer base and project lifetime is estimated today equal to the cost factors used by the utilities in South-central, namely CEA and MLP - which means all Alaskans on this “Grid” will benefit. Once the infrastructure is paid-in-full, there will be a decreasing energy cost benefit that is estimated today at 4/5ths the existing cost of electrical energy, which should invite industry interest and will also be a major factor on keeping the military infrastructure here in Alaska. It is estimated that this project will benefit 80% of the Alaskan population with affordable electrical energy, so is by definition an “All Alaskan” project. As an added value benefit, the heat recovered from the turbines when operated in “Simple Cycle” will be used to “Steam Flood” the heavy oils found in the West Sak reservoir, still undeveloped due a characteristic stubborn viscosity. It is estimated that the West Sak may contains 4-billion barrels of recoverable oil when subject to “steam flooding”, and could increase the TAPS rate by 65000BPD, or an anticipated 12% increase in throughput. This side-benefit project will increase the construction jobs associated with pipelines required to deliver the “steam” and allow revenue through the selling of this commodity. It means affordable electrical energy and will demonstrate cleaner air, especially for the “Interior” and allow relief for many of the villages today struggling to make ends meet with an alternative energy source and at the same time allow stubborn oil to be “un-stranded” for delivery to TAPS and sold, in return offering increased revenue to the state. For information contact KCAssociates@ak.net.


Rendition of SMPP Power Plant - Prudhoe Bay, Alaska




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