$5 million awarded for alternative energy

ALASKANEWSPAPERS
editor@alaskanewspapers.com

June 24, 2008 at 2:34PM AKST

The Denali Commission and Alaska Energy Authority (AEA) will award $5 million for alternative/renewable energy projects, the groups announced Tuesday.

The agencies will offer funding for 33 projects in the areas of wind, hydro, biomass, solar and geothermal power including a Fort Yukon community wood heating project by Gwitchyaa Zhee Corporation and a Manley Hot Springs geothermal plant by TDX Power.

Funding for the projects includes $4 million from the Denali Commission and $1 million from AEA for alternative energy solutions. In addition, five projects will be offered funding under the commission’s energy cost reduction program.

“Rising energy costs have created urgency for these projects,” said Steven Haagenson, AEA executive director and state energy coordinator. “This funding will help develop projects that could annually displace millions of gallons of diesel fuel and trillions of cubic feet of natural gas. The need is great and we are pleased to offer these funds with the Denali Commission."

“Our commissioners are pleased with the outcomes of this solicitation and we look forward to more dollars focused on this area, especially with the rising cost of fuel in today’s market,” stated George Cannelos, federal co-chair at the Denali Commission. “Despite being an oil-producing state, Alaska, as we all know, has some of the highest per-capita electric power and fuel costs in the U.S., particularly in our rural, isolated villages."

The Denali Commission and AEA issued requests for proposals that garnered alternative/renewable and energy cost reduction projects. This solicitation brought in 96 proposals from around Alaska for funding projects totaling over $130 million.

"The Denali Commission’s goal through this process is to play an active role with our partners to find cost-effective energy solutions for the people of rural Alaska,” stated Cannelos. “Another important component of this process includes the development of an inventory of projects that focus on alternative solutions. Commissioners are designating funds solely for the purpose of providing alternative energy solutions that will alleviate our reliance on diesel fuel."

To see the projects, go to www.aidea.org/aea.